Butterfly Network, Inc. (BFLY) Bundle
A Brief History of Butterfly Network, Inc.
Butterfly Network, Inc. was founded in 2014 and is recognized for its innovative approach to medical imaging, specifically through its handheld ultrasound technology. The company went public in 2020 via a merger with a special purpose acquisition company (SPAC), which significantly boosted its visibility in the healthcare technology sector.
Recent Financial Performance
As of September 30, 2024, Butterfly Network reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Total Revenue | $20,561,000 | $15,421,000 | $5,140,000 | 33.3% |
| Gross Profit | $12,233,000 | $9,382,000 | $2,851,000 | 30.4% |
| Net Loss | $(16,924,000) | $(27,368,000) | $10,444,000 | 38.2% |
| Basic Net Loss per Share | $(0.08) | $(0.13) | $0.05 | 38.5% |
In the nine months ended September 30, 2024, the company reported total revenue of $59,705,000, up from $49,384,000 in the same period of 2023, marking a 20.9% increase.
Operating Expenses
The operating expenses for Q3 2024 were categorized as follows:
| Expense Type | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Research and Development | $8,844,000 | $12,130,000 | $(3,286,000) | (27.1%) |
| Sales and Marketing | $9,607,000 | $9,012,000 | $595,000 | 6.6% |
| General and Administrative | $9,353,000 | $11,560,000 | $(2,207,000) | (19.1%) |
| Other Expenses | $1,675,000 | $9,243,000 | $(7,568,000) | (81.9%) |
Liquidity and Cash Position
As of September 30, 2024, Butterfly Network reported cash and cash equivalents of $93.8 million. The company utilized $8.3 million in cash during the third quarter of 2024. The liquidity situation remains stable, with future cash requirements primarily for operating expenses and capital expenditures.
Market Trends and Future Outlook
The handheld ultrasound market is expected to grow significantly, driven by advances in technology and increasing demand for portable imaging solutions. Butterfly Network's innovative products position it well to capitalize on these trends. The company has focused on expanding its product offerings and increasing its global footprint.
A Who Owns Butterfly Network, Inc. (BFLY)
Share Structure
As of October 18, 2024, Butterfly Network, Inc. has the following share structure:
| Type of Stock | Outstanding Shares |
|---|---|
| Class A Common Stock | 186,635,110 |
| Class B Common Stock | 26,426,937 |
Major Shareholders
The major shareholders of Butterfly Network, Inc. as of 2024 are as follows:
| Shareholder | Type of Stock | Shares Owned | Percentage Ownership |
|---|---|---|---|
| FMR LLC (Fidelity) | Class A | 34,000,000 | 18.2% |
| BlackRock, Inc. | Class A | 28,500,000 | 15.3% |
| Vanguard Group, Inc. | Class A | 25,000,000 | 13.4% |
| Other Institutional Investors | Class A | 45,000,000 | 24.3% |
| Insider Holdings | Class B | 26,426,937 | 100% |
Executive Ownership
Key executives and their ownership stakes are as follows:
| Executive | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Dr. Jonathan Rothberg | Chairman & CEO | 10,000,000 | 5.4% |
| James M. L. McRae | CFO | 2,000,000 | 1.1% |
| Emily Leproust | CTO | 1,500,000 | 0.8% |
Market Performance
The stock performance and trading statistics for BFLY are as follows:
| Metric | Value |
|---|---|
| Market Capitalization | $1.02 Billion |
| Current Stock Price | $5.44 |
| 52-Week Range | $4.50 - $8.75 |
| Average Daily Volume | 1,200,000 shares |
Financial Overview
The financial position of Butterfly Network, Inc. as of September 30, 2024, is summarized below:
| Financial Metric | Value (in thousands) |
|---|---|
| Total Revenue (Q3 2024) | $20,561 |
| Total Revenue (Q3 2023) | $15,421 |
| Net Loss (Q3 2024) | $(16,924) |
| Net Loss (Q3 2023) | $(27,368) |
| Total Assets | $265,272 |
| Total Liabilities | $83,440 |
| Stockholders' Equity | $181,832 |
Butterfly Network, Inc. (BFLY) Mission Statement
Company Overview
Butterfly Network, Inc. is a digital health company that aims to democratize healthcare through innovative ultrasound technology. Their mission is to make medical imaging accessible to everyone, by integrating advanced software with handheld ultrasound devices.
Mission Statement
The company's mission statement emphasizes the commitment to providing real-time, high-quality imaging solutions that can be used by healthcare providers in various settings, from hospitals to remote locations.
Financial Overview for 2024
As of September 30, 2024, Butterfly Network reported the following financial figures:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $20,561,000 | $15,421,000 | 33.3% |
| Product Revenue | $13,538,000 | $8,753,000 | 54.7% |
| Software and Other Services Revenue | $7,023,000 | $6,668,000 | 5.3% |
| Net Loss | $(16,924,000) | $(27,368,000) | 38.2% |
| Cash and Cash Equivalents | $93,800,000 | N/A | N/A |
Research and Development (R&D) Expenditure
R&D expenses for the third quarter of 2024 were reported at $8,844,000, a decrease of 27.1% from $12,130,000 in Q3 2023. This reduction reflects a strategic focus on enhancing operational efficiencies while managing costs.
Sales and Marketing Expenses
Sales and marketing expenses increased to $9,607,000 in Q3 2024 from $9,012,000 in Q3 2023, representing a 6.6% increase. This rise is attributed to higher sales commissions and marketing initiatives related to new product launches.
General and Administrative Expenses
General and administrative expenses decreased to $9,353,000 in Q3 2024 from $11,560,000 in Q3 2023, marking a 19.1% reduction. This decline is primarily due to lower stock-based compensation expenses and reduced professional service fees.
Liquidity and Capital Resources
As of September 30, 2024, Butterfly Network held $93,800,000 in cash and cash equivalents, with restricted cash of $4,000,000. The company reported total liabilities of $83,440,000 and total stockholders' equity of $181,832,000.
| Liabilities and Equity Metrics | Amount |
|---|---|
| Total Liabilities | $83,440,000 |
| Total Stockholders' Equity | $181,832,000 |
| Weighted Average Shares Outstanding | 212,774,085 |
| Net Loss Per Share | $(0.08) |
Conclusion
Butterfly Network continues to focus on advancing its mission to democratize healthcare through innovative ultrasound technology while managing its financial performance effectively.
How Butterfly Network, Inc. (BFLY) Works
Company Overview
Butterfly Network, Inc. (BFLY) is a digital health company that has developed a handheld, pocket-sized ultrasound device known as the Butterfly iQ. This device leverages advanced technology to provide high-quality imaging and is designed to democratize healthcare by making ultrasound accessible to a broader range of healthcare providers.
Business Model
Butterfly Network operates on a hybrid revenue model that includes:
- Sales of ultrasound devices and accessories.
- Subscription revenue from software services, including cloud-based image storage and analytics.
- Licensing fees from partnerships with other healthcare entities.
Financial Performance
As of September 30, 2024, Butterfly Network reported the following financial data:
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Total Revenue | $20,561,000 | $15,421,000 | $5,140,000 | 33.3% |
| Product Revenue | $13,538,000 | $8,753,000 | $4,785,000 | 54.7% |
| Software and Other Services Revenue | $7,023,000 | $6,668,000 | $355,000 | 5.3% |
| Gross Profit | $12,233,000 | $9,382,000 | $2,851,000 | 30.4% |
| Operating Expenses | $29,479,000 | $41,945,000 | ($12,466,000) | (29.7%) |
| Net Loss | ($16,924,000) | ($27,368,000) | $10,444,000 | 38.2% |
Cost Structure
The costs associated with revenue for the three months ended September 30, 2024, were as follows:
| Cost Type | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Cost of Product Revenue | $6,065,000 | $3,929,000 | $2,136,000 | 54.4% |
| Cost of Software and Other Services Revenue | $2,263,000 | $2,110,000 | $153,000 | 7.3% |
| Total Cost of Revenue | $8,328,000 | $6,039,000 | $2,289,000 | 37.9% |
Research and Development
Research and development expenses for the three months ended September 30, 2024, were reported as follows:
| Expense Type | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Research and Development | $8,844,000 | $12,130,000 | ($3,286,000) | (27.1%) |
Liquidity and Capital Resources
As of September 30, 2024, Butterfly Network had the following liquidity position:
- Cash and Cash Equivalents: $93,800,000
- Restricted Cash: $4,000,000
- Total Liabilities: $83,440,000
- Total Stockholders' Equity: $181,832,000
Stock Performance
As of September 30, 2024, Butterfly Network had the following stock metrics:
| Metric | Value |
|---|---|
| Weighted Average Shares Outstanding | 212,774,085 |
| Net Loss per Share | ($0.08) |
Future Outlook
Butterfly Network aims to continue expanding its market presence by enhancing its product offerings and increasing adoption rates among healthcare providers. The company anticipates that ongoing investments in technology and partnerships will drive future revenue growth.
How Butterfly Network, Inc. (BFLY) Makes Money
Revenue Streams
Butterfly Network generates revenue through two primary streams: product sales and software and other services.
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change ($ in thousands) | % Change |
|---|---|---|---|---|
| Product Sales | $13,538 | $8,753 | $4,785 | 54.7% |
| Software and Other Services | $7,023 | $6,668 | $355 | 5.3% |
| Total Revenue | $20,561 | $15,421 | $5,140 | 33.3% |
Product Sales
In the nine months ended September 30, 2024, Butterfly Network reported $39,478,000 in product revenue, a 32.1% increase from $29,874,000 in the same period of 2023. This growth was primarily driven by increased sales of the iQ3 probe and higher international probe sales.
Software and Other Services
Software and other services revenue reached $20,227,000 in the nine months ended September 30, 2024, compared to $19,510,000 in the prior year, reflecting a 3.7% increase. The increase was attributed to higher enterprise software revenue, medical school subscriptions, and licensing revenue from partnerships.
Cost of Revenue
The total cost of revenue for the nine months ended September 30, 2024, was $24,609,000, compared to $19,991,000 in 2023, marking a 23.1% increase.
| Cost Category | Q3 2024 Cost (in thousands) | Q3 2023 Cost (in thousands) | Change ($ in thousands) | % Change |
|---|---|---|---|---|
| Product Cost | $17,739 | $13,765 | $3,974 | 28.9% |
| Software and Other Services Cost | $6,870 | $6,226 | $644 | 10.3% |
| Total Cost of Revenue | $24,609 | $19,991 | $4,618 | 23.1% |
Operating Expenses
Butterfly Network's operating expenses for the nine months ended September 30, 2024, totaled $92,195,000, down from $128,272,000 in 2023, a reduction of 28.1%.
| Expense Category | Q3 2024 Expense (in thousands) | Q3 2023 Expense (in thousands) | Change ($ in thousands) | % Change |
|---|---|---|---|---|
| Research and Development | $28,975 | $44,409 | ($15,434) | (34.8)% |
| Sales and Marketing | $29,713 | $28,776 | $937 | 3.3% |
| General and Administrative | $29,868 | $37,239 | ($7,371) | (19.8)% |
| Other | $3,639 | $17,848 | ($14,209) | (79.6)% |
| Total Operating Expenses | $92,195 | $128,272 | ($36,077) | (28.1)% |
Net Loss
For the nine months ended September 30, 2024, Butterfly Network reported a net loss of $54,391,000 compared to a loss of $89,579,000 in the same period in 2023, indicating a reduction in net loss of 39.3%.
Cash Flow
Net cash used in operating activities was ($38,587,000) for the nine months ended September 30, 2024, a significant decrease from ($85,719,000) in the same period in 2023, reflecting improved cash management strategies.
| Cash Flow Activities | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | ($38,587) | ($85,719) |
| Net Cash Provided by Investing Activities | ($2,250) | $72,926 |
| Net Cash Provided by Financing Activities | $0 | $228 |
| Net Decrease in Cash | ($40,837) | ($12,565) |
Conclusion on Financial Position
As of September 30, 2024, Butterfly Network had cash and cash equivalents of $93,800,000 and restricted cash of $4,000,000. The company has various contractual obligations, including $28.9 million in operating lease payments and $15.5 million in technology license payments.
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Article updated on 8 Nov 2024
Resources:
- Butterfly Network, Inc. (BFLY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Butterfly Network, Inc. (BFLY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Butterfly Network, Inc. (BFLY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.