Butterfly Network, Inc. (BFLY): history, ownership, mission, how it works & makes money

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Butterfly Network, Inc. (BFLY) Information


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.