Post by icemandios on Aug 9, 2021 12:45:11 GMT
Butterfly Network Reports Second Quarter 2021 Financial Results
Strong Revenue Growth Driven by Broad Customer Adoption
Gross Margin of 49.8% and Adjusted Gross Margin of 50.2%
August 09, 2021 08:00 AM Eastern Daylight Time
GUILFORD, Conn. & NEW YORK--(BUSINESS WIRE)--Butterfly Network, Inc. (NYSE: BFLY) (“Butterfly”), an innovative digital health company that is working to democratize medical imaging and enable global health equity, today announced financial results for the quarter ended June 30, 2021, and provided a business update.
“As we continue our journey as a public company, we achieved another quarter of strong revenue growth, while driving progress against our foundational goals.”
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Second Quarter 2021 Highlights:
Reported revenue of $16.5 million in the second quarter of 2021, compared to $11.8 million in the second quarter of 2020.
Reported gross profit of $8.2 million and a gross margin of 49.8%. Adjusted gross margin of 50.2%.
Appointed a new Chief Technology Officer and Chief Information Officer to lead innovation and information technology infrastructure efforts to drive growth.
Butterfly iQ+ received a medical device license in Canada. This license included a new machine learning tool, Education View Guidance.
Launched three new obstetrics and gynecology solutions for Butterfly iQ+.
“As we continue our journey as a public company, we achieved another quarter of strong revenue growth, while driving progress against our foundational goals.” said Dr. Todd Fruchterman, Butterfly’s President and Chief Executive Officer. “Our commercial expansion in the US and international markets reflects broad interest in Butterfly across a variety of use-cases and settings. Building for long-term growth, we also made leadership appointments adding expertise in innovation and IT infrastructure.” said Dr. Todd Fruchterman. “Butterfly makes it possible to democratize imaging. With Butterfly, information is more accessible, reliable, and usable for providers and patients, enabling more informed decision making at the point of care.”
Second Quarter 2021 Financial Results
Second quarter revenue increased 40.0% to $16.5 million from $11.8 million in the second quarter of 2020. Product revenue increased 30.3% to $13.0 million from $10.0 million in the second quarter of 2020. Subscription revenue increased 94.3% to $3.5 million from $1.8 million in the second quarter of 2020.
Gross profit for the second quarter of 2021 was $8.2 million, compared to a gross profit of $0.2 million in the second quarter of 2020. Adjusted gross profit was $8.3 million, compared to an adjusted gross profit of $0.2 million in the second quarter of 2020.
Total gross margin for the quarter was 49.8%, compared to 1.4% in the second quarter of 2020. Adjusted gross margin was 50.2%, compared to a 1.6% in the second quarter of 2020.
Operating expenses were $44.9 million, compared to $23.2 million in the second quarter of 2020, representing an increase of 93.3% primarily due to the build out of personnel and services to support growth initiatives and expenses incremental to being a publicly traded company.
Net loss was $2.9 million, compared to a net loss of $23.2 million during the second quarter of 2020. Adjusted EBITDA was a loss of $28.5 million during the second quarter of 2021, compared to a loss of $20.1 million in the second quarter of 2020.
Cash and cash equivalents and marketable securities were $509.5 million as of June 30, 2021.
Innovation and Commercial Expansion
Launched new tools for the Butterfly iQ+ obstetrics and gynecology solution to supplement maternal and fetal health care delivery by providing additional clarity earlier and more often at the point-of-care.
Established partnership with Chindex Medical, a leading medical device distributor in Hong Kong to establish a commercial footprint in the Hong Kong region.
The Lewis Katz School of Medicine at Temple University distributed Butterfly iQ+ to all first-year medical students at their White Coat Ceremony held on August 6, 2021.
Conference Call
A conference call to review the second quarter 2021 financial results is scheduled for August 9, 2021, at 8:30 AM Eastern Time. Interested parties may access the conference call by dialing (844) 558-0160 (U.S.) or (236) 714-3222 (Outside U.S.) and referencing Conference ID 5067824. Additionally, a link to a live webcast of the call will be available in the Investor Relations section of Butterfly's website at Butterfly Network, Inc. - Events & Presentations - Events.
About Butterfly Network, Inc.
Founded by Dr. Jonathan Rothberg in 2011, and recently listed on the New York Stock Exchange through a business combination with Longview Acquisition Corp., Butterfly created the world's first handheld, single probe whole-body ultrasound system using semiconductor technology, the Butterfly iQ+. Butterfly’s mission is to enable universal access to superior medical imaging, making high-quality ultrasound affordable, easy-to-use, globally accessible, and intelligently connected, including for the 4.7 billion people around the world lacking access to ultrasound. Through its proprietary Ultrasound-on-Chip™ technology, Butterfly is paving the way for earlier detection and remote management of health conditions around the world. The Butterfly iQ+ can be purchased online today by healthcare practitioners in the United States, Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.
Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (“GAAP”), the Company provides additional financial metrics that are not prepared in accordance with GAAP (“non-GAAP”). The non-GAAP financial measures included in this press release are Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin. The Company presents non-GAAP financial measures in order to assist readers of its consolidated financial statements in understanding the core operating results that its management uses to evaluate the business and for financial planning purposes. The Company’s non-GAAP financial measures, Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin, provide an additional tool for investors to use in comparing our financial performance over multiple periods.
Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin are key performance measures that the Company’s management uses to assess our operating performance. These non-GAAP measures facilitate internal comparisons of the Company’s operating performance on a more consistent basis. The Company uses these performance measures for business planning purposes and forecasting. The Company believes that Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin enhance an investor’s understanding of the Company’s financial performance as they are useful in assessing its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business.
Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin may not be comparable to similarly titled measures of other companies because they may not calculate these measures in the same manner. Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. When evaluating the Company’s performance, you should consider Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin alongside other financial performance measures prepared in accordance with GAAP, including net loss, gross profit, and gross margin.
The non-GAAP financial measures do not replace the presentation of the Company’s GAAP financial results and should only be used as a supplement to, not as a substitute for, the Company’s financial results presented in accordance with GAAP. In this press release, the Company has provided a reconciliation of Adjusted EBITDA to net loss, Adjusted gross profit to gross profit, and Adjusted gross margin to gross margin, the most directly comparable GAAP financial measures. A reconciliation of Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin to corresponding GAAP measures is not available on a forward-looking basis because the Company is unable to predict with reasonable certainty the non-cash component of employee compensation expense, changes in its working capital needs, variances in its supply chain, the impact of earnings or charges resulting from matters the Company considers not to be reflective, on a recurring basis, of its ongoing operations, and other such items without unreasonable effort. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with GAAP. Management strongly encourages investors to review the Company’s financial statements and publicly filed reports in their entirety and not rely on any single financial measure.
Strong Revenue Growth Driven by Broad Customer Adoption
Gross Margin of 49.8% and Adjusted Gross Margin of 50.2%
August 09, 2021 08:00 AM Eastern Daylight Time
GUILFORD, Conn. & NEW YORK--(BUSINESS WIRE)--Butterfly Network, Inc. (NYSE: BFLY) (“Butterfly”), an innovative digital health company that is working to democratize medical imaging and enable global health equity, today announced financial results for the quarter ended June 30, 2021, and provided a business update.
“As we continue our journey as a public company, we achieved another quarter of strong revenue growth, while driving progress against our foundational goals.”
Tweet this
Second Quarter 2021 Highlights:
Reported revenue of $16.5 million in the second quarter of 2021, compared to $11.8 million in the second quarter of 2020.
Reported gross profit of $8.2 million and a gross margin of 49.8%. Adjusted gross margin of 50.2%.
Appointed a new Chief Technology Officer and Chief Information Officer to lead innovation and information technology infrastructure efforts to drive growth.
Butterfly iQ+ received a medical device license in Canada. This license included a new machine learning tool, Education View Guidance.
Launched three new obstetrics and gynecology solutions for Butterfly iQ+.
“As we continue our journey as a public company, we achieved another quarter of strong revenue growth, while driving progress against our foundational goals.” said Dr. Todd Fruchterman, Butterfly’s President and Chief Executive Officer. “Our commercial expansion in the US and international markets reflects broad interest in Butterfly across a variety of use-cases and settings. Building for long-term growth, we also made leadership appointments adding expertise in innovation and IT infrastructure.” said Dr. Todd Fruchterman. “Butterfly makes it possible to democratize imaging. With Butterfly, information is more accessible, reliable, and usable for providers and patients, enabling more informed decision making at the point of care.”
Second Quarter 2021 Financial Results
Second quarter revenue increased 40.0% to $16.5 million from $11.8 million in the second quarter of 2020. Product revenue increased 30.3% to $13.0 million from $10.0 million in the second quarter of 2020. Subscription revenue increased 94.3% to $3.5 million from $1.8 million in the second quarter of 2020.
Gross profit for the second quarter of 2021 was $8.2 million, compared to a gross profit of $0.2 million in the second quarter of 2020. Adjusted gross profit was $8.3 million, compared to an adjusted gross profit of $0.2 million in the second quarter of 2020.
Total gross margin for the quarter was 49.8%, compared to 1.4% in the second quarter of 2020. Adjusted gross margin was 50.2%, compared to a 1.6% in the second quarter of 2020.
Operating expenses were $44.9 million, compared to $23.2 million in the second quarter of 2020, representing an increase of 93.3% primarily due to the build out of personnel and services to support growth initiatives and expenses incremental to being a publicly traded company.
Net loss was $2.9 million, compared to a net loss of $23.2 million during the second quarter of 2020. Adjusted EBITDA was a loss of $28.5 million during the second quarter of 2021, compared to a loss of $20.1 million in the second quarter of 2020.
Cash and cash equivalents and marketable securities were $509.5 million as of June 30, 2021.
Innovation and Commercial Expansion
Launched new tools for the Butterfly iQ+ obstetrics and gynecology solution to supplement maternal and fetal health care delivery by providing additional clarity earlier and more often at the point-of-care.
Established partnership with Chindex Medical, a leading medical device distributor in Hong Kong to establish a commercial footprint in the Hong Kong region.
The Lewis Katz School of Medicine at Temple University distributed Butterfly iQ+ to all first-year medical students at their White Coat Ceremony held on August 6, 2021.
Conference Call
A conference call to review the second quarter 2021 financial results is scheduled for August 9, 2021, at 8:30 AM Eastern Time. Interested parties may access the conference call by dialing (844) 558-0160 (U.S.) or (236) 714-3222 (Outside U.S.) and referencing Conference ID 5067824. Additionally, a link to a live webcast of the call will be available in the Investor Relations section of Butterfly's website at Butterfly Network, Inc. - Events & Presentations - Events.
About Butterfly Network, Inc.
Founded by Dr. Jonathan Rothberg in 2011, and recently listed on the New York Stock Exchange through a business combination with Longview Acquisition Corp., Butterfly created the world's first handheld, single probe whole-body ultrasound system using semiconductor technology, the Butterfly iQ+. Butterfly’s mission is to enable universal access to superior medical imaging, making high-quality ultrasound affordable, easy-to-use, globally accessible, and intelligently connected, including for the 4.7 billion people around the world lacking access to ultrasound. Through its proprietary Ultrasound-on-Chip™ technology, Butterfly is paving the way for earlier detection and remote management of health conditions around the world. The Butterfly iQ+ can be purchased online today by healthcare practitioners in the United States, Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.
Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (“GAAP”), the Company provides additional financial metrics that are not prepared in accordance with GAAP (“non-GAAP”). The non-GAAP financial measures included in this press release are Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin. The Company presents non-GAAP financial measures in order to assist readers of its consolidated financial statements in understanding the core operating results that its management uses to evaluate the business and for financial planning purposes. The Company’s non-GAAP financial measures, Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin, provide an additional tool for investors to use in comparing our financial performance over multiple periods.
Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin are key performance measures that the Company’s management uses to assess our operating performance. These non-GAAP measures facilitate internal comparisons of the Company’s operating performance on a more consistent basis. The Company uses these performance measures for business planning purposes and forecasting. The Company believes that Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin enhance an investor’s understanding of the Company’s financial performance as they are useful in assessing its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business.
Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin may not be comparable to similarly titled measures of other companies because they may not calculate these measures in the same manner. Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. When evaluating the Company’s performance, you should consider Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin alongside other financial performance measures prepared in accordance with GAAP, including net loss, gross profit, and gross margin.
The non-GAAP financial measures do not replace the presentation of the Company’s GAAP financial results and should only be used as a supplement to, not as a substitute for, the Company’s financial results presented in accordance with GAAP. In this press release, the Company has provided a reconciliation of Adjusted EBITDA to net loss, Adjusted gross profit to gross profit, and Adjusted gross margin to gross margin, the most directly comparable GAAP financial measures. A reconciliation of Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin to corresponding GAAP measures is not available on a forward-looking basis because the Company is unable to predict with reasonable certainty the non-cash component of employee compensation expense, changes in its working capital needs, variances in its supply chain, the impact of earnings or charges resulting from matters the Company considers not to be reflective, on a recurring basis, of its ongoing operations, and other such items without unreasonable effort. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with GAAP. Management strongly encourages investors to review the Company’s financial statements and publicly filed reports in their entirety and not rely on any single financial measure.