Butterfly Network Reports Strong Q3 Growth and Expands into New Markets with 33% Revenue Increase
Launches New Products and Expands Global Reach While Reducing Cash Use and Operational Losses
Butterfly Network, Inc. (NYSE: BFLY), a leader in digital health, achieved significant financial and operational milestones in Q3 2024, with revenue climbing 33% year-over-year to $20.6 million. Driven by robust sales of its next-generation iQ3 ultrasound probe and international expansion, Butterfly reported growth across multiple sectors while reducing its net loss by 38% and cutting net cash use in operations by 50%.
Key Achievements and Strategic Initiatives
Expansion of iQ3 Ultrasound Probe: The newly launched iQ3 probe has gained traction in the U.S. and Europe, driving a 55% increase in product revenue year-over-year.
Global Market Growth: Butterfly entered new markets in Indonesia, the Netherlands, and Belgium, contributing to a 36% increase in international revenue.
Formation of Octiv™: Butterfly introduced Octiv, a wholly-owned subsidiary focused on extending the company’s proprietary chip technology, Powered by Butterfly™, into new sectors, aiming to unlock further value for shareholders and attract new investors.
Butterfly HomeCare Pilot: A virtual chronic care management pilot, set to launch in Q4 with a leading Medicare Advantage provider, aims to improve heart failure outcomes through AI-powered imaging.
Educational and Veterinary Advancements: Butterfly strengthened its role in medical education by collaborating with Kansas City University on a POCUS curriculum and announced research from Kansas State University supporting Butterfly’s use in managing bovine respiratory disease in cattle.
Financial Highlights
Revenue: Total revenue was $20.6 million, with U.S. revenue growing by 27% and international revenue increasing by 36%.
Gross Profit: Gross profit rose to $12.2 million, up from $9.4 million in Q3 2023, despite a slight decrease in gross margin to 59.5% due to increased costs for the iQ3 probe.
Operating Expenses: Operating expenses were down 30% to $29.5 million, reflecting workforce reductions and optimized non-payroll spending.
Net Loss: Net loss improved to $16.9 million, a 38% reduction from Q3 2023.
Cash Position: Butterfly held cash and cash equivalents of $97.8 million as of September 30, 2024, reinforcing financial stability.
Improved Guidance and Future Outlook
Butterfly increased its revenue guidance for FY 2024 to $79 million to $81 million, representing over 20% growth, with an improved Adjusted EBITDA guidance by $5 million, narrowing the projected loss to $42 million - $40 million. CEO Joseph DeVivo highlighted Butterfly’s “consistent, repeatable execution,” attributing the company’s strong results to an agile team and innovative product lineup.
As Butterfly continues to expand into new markets and sectors, the company remains focused on advancing its strategic growth pillars and delivering innovative solutions in digital health and veterinary care.
