Post by icemandios on May 5, 2022 12:49:36 GMT
Butterfly Network Reports First Quarter 2022 Financial Results
Solid Revenue Growth Driven by Increasing Demand
Momentum in Both Human Healthcare and Veterinary Markets
Butterfly Network, Inc. (NYSE: BFLY) (“Butterfly”), a digital health company transforming care with handheld, whole-body ultrasound, today announced financial results for the quarter ended March 31, 2022, and provided a business update.
Recent Highlights
Reported total revenue of $15.6 million for the first quarter ended March 31, 2022, representing a 25.2% increase from $12.4 million for the first quarter ended March 31, 2021.
Petco Health and Wellness Company and Butterfly announced that they will work together to bring Butterfly iQ+ Vet to more than 200 Petco clinical locations across the United States.
A UNC landmark study was published in NEJM Evidence , concluding that nurse midwives performed at the level of trained sonographers using Butterfly. We believe these results present a significant opportunity to expand the use of obstetric ultrasound.
Butterfly Network received a $5 million grant from the Bill & Melinda Gates Foundation to improve maternal and fetal health in Sub-Saharan Africa with Butterfly iQ+. As a part of this initiative, 500 probes will be given to mid-level practitioners in Kenya and 500 will be distributed to healthcare workers in South Africa in 2022.
“We have had a solid start to the year with significant progress across all four of our pillars; Health Systems, International, Home-Based Care and Adjacent Markets” said Dr. Todd Fruchterman, Butterfly’s President and Chief Executive Officer. “Our core principles of Easy, Everywhere and Economical are driving growth across these pillars. Illustrating this is UNC’s landmark study that reinforces the usability of Butterfly, the power of AI and Butterfly’s potential to advance the standard of care.” Fruchterman continued, “As more customers use Butterfly, we are seeing increasing recognition in the clinical community about the power of access to ultrasound information at the bedside to transform care. As a team, we are focused on our vision to make Butterfly as ubiquitous as the stethoscope.”
First Quarter 2022 Financial Results
First quarter total revenue increased 25.2% to $15.6 million from $12.4 million in the first quarter of 2021. Product revenue increased 14.8% to $11.0 million from $9.6 million in the first quarter of 2021. Subscription revenue increased 60.1% to $4.6 million from $2.8 million in the first quarter of 2021.
Gross profit for the first quarter of 2022 was $8.3 million, compared to gross profit of $6.4 million in the first quarter of 2021. Adjusted gross profit was $8.8 million for the first quarter of 2022, compared to an adjusted gross profit of $5.9 million in the first quarter of 2021.
Total gross margin for the quarter was 53.6%, compared to 51.6% in the first quarter of 2021. Adjusted gross margin was 56.3%, compared to 47.8% in the first quarter of 2021.
Total operating expenses for the quarter were $57.9 million, compared to $60.2 million in the first quarter of 2021, representing a decrease of 3.8%.
Net loss for the first quarter of 2022 was $44.5 million, compared to a net loss of $0.7 million during the first quarter of 2021. Adjusted EBITDA was a loss of $40.0 million during the first quarter of 2022, compared to a loss of $26.5 million in the first quarter of 2021.
Cash and cash equivalents were $359.9 million as of March 31, 2022.
A reconciliation of Adjusted EBITDA to net loss, Adjusted gross profit to gross profit, and Adjusted gross margin to gross margin for the three months ended March 31, 2022 and 2021, is provided in the financial schedules that are part of this press release. An explanation of these non-GAAP financial measures is also included below under the heading “Non-GAAP Financial Measures.”
Conference Call
A conference call to review the first quarter 2022 financial results and provide a business update is scheduled for May 5, 2022, at 8:30 am Eastern Time. Interested parties may access the conference call by dialing +1 (844) 200-6205 (U.S.) or +1 (929) 526-1599 (Outside U.S.) and referencing Access Code: 704061. Additionally, a link to a live webcast of the call will be available in the Investors section of Butterfly's website.
About Butterfly Network, Inc.
Founded by Dr. Jonathan Rothberg in 2011 and 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 democratize medical imaging and contribute to the aspiration of global health equity, 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.
Butterfly iQ+ is a prescription device intended for trained healthcare professionals only.
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 condensed 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 the Company’s 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 its 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.
Financial Data Link
Solid Revenue Growth Driven by Increasing Demand
Momentum in Both Human Healthcare and Veterinary Markets
Butterfly Network, Inc. (NYSE: BFLY) (“Butterfly”), a digital health company transforming care with handheld, whole-body ultrasound, today announced financial results for the quarter ended March 31, 2022, and provided a business update.
Recent Highlights
Reported total revenue of $15.6 million for the first quarter ended March 31, 2022, representing a 25.2% increase from $12.4 million for the first quarter ended March 31, 2021.
Petco Health and Wellness Company and Butterfly announced that they will work together to bring Butterfly iQ+ Vet to more than 200 Petco clinical locations across the United States.
A UNC landmark study was published in NEJM Evidence , concluding that nurse midwives performed at the level of trained sonographers using Butterfly. We believe these results present a significant opportunity to expand the use of obstetric ultrasound.
Butterfly Network received a $5 million grant from the Bill & Melinda Gates Foundation to improve maternal and fetal health in Sub-Saharan Africa with Butterfly iQ+. As a part of this initiative, 500 probes will be given to mid-level practitioners in Kenya and 500 will be distributed to healthcare workers in South Africa in 2022.
“We have had a solid start to the year with significant progress across all four of our pillars; Health Systems, International, Home-Based Care and Adjacent Markets” said Dr. Todd Fruchterman, Butterfly’s President and Chief Executive Officer. “Our core principles of Easy, Everywhere and Economical are driving growth across these pillars. Illustrating this is UNC’s landmark study that reinforces the usability of Butterfly, the power of AI and Butterfly’s potential to advance the standard of care.” Fruchterman continued, “As more customers use Butterfly, we are seeing increasing recognition in the clinical community about the power of access to ultrasound information at the bedside to transform care. As a team, we are focused on our vision to make Butterfly as ubiquitous as the stethoscope.”
First Quarter 2022 Financial Results
First quarter total revenue increased 25.2% to $15.6 million from $12.4 million in the first quarter of 2021. Product revenue increased 14.8% to $11.0 million from $9.6 million in the first quarter of 2021. Subscription revenue increased 60.1% to $4.6 million from $2.8 million in the first quarter of 2021.
Gross profit for the first quarter of 2022 was $8.3 million, compared to gross profit of $6.4 million in the first quarter of 2021. Adjusted gross profit was $8.8 million for the first quarter of 2022, compared to an adjusted gross profit of $5.9 million in the first quarter of 2021.
Total gross margin for the quarter was 53.6%, compared to 51.6% in the first quarter of 2021. Adjusted gross margin was 56.3%, compared to 47.8% in the first quarter of 2021.
Total operating expenses for the quarter were $57.9 million, compared to $60.2 million in the first quarter of 2021, representing a decrease of 3.8%.
Net loss for the first quarter of 2022 was $44.5 million, compared to a net loss of $0.7 million during the first quarter of 2021. Adjusted EBITDA was a loss of $40.0 million during the first quarter of 2022, compared to a loss of $26.5 million in the first quarter of 2021.
Cash and cash equivalents were $359.9 million as of March 31, 2022.
A reconciliation of Adjusted EBITDA to net loss, Adjusted gross profit to gross profit, and Adjusted gross margin to gross margin for the three months ended March 31, 2022 and 2021, is provided in the financial schedules that are part of this press release. An explanation of these non-GAAP financial measures is also included below under the heading “Non-GAAP Financial Measures.”
Conference Call
A conference call to review the first quarter 2022 financial results and provide a business update is scheduled for May 5, 2022, at 8:30 am Eastern Time. Interested parties may access the conference call by dialing +1 (844) 200-6205 (U.S.) or +1 (929) 526-1599 (Outside U.S.) and referencing Access Code: 704061. Additionally, a link to a live webcast of the call will be available in the Investors section of Butterfly's website.
About Butterfly Network, Inc.
Founded by Dr. Jonathan Rothberg in 2011 and 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 democratize medical imaging and contribute to the aspiration of global health equity, 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.
Butterfly iQ+ is a prescription device intended for trained healthcare professionals only.
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 condensed 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 the Company’s 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 its 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.
Financial Data Link