Breaking Down Butterfly Network, Inc. (BFLY) Financial Health: Key Insights for Investors

Are you keeping a close watch on Butterfly Network, Inc. (BFLY) and wondering about its financial stability? Did you know that in the fourth quarter of 2024, they achieved a record revenue of $22.4 million, marking a 35% year-over-year growth? The company's strategic moves have led to a significant reduction in net loss by 59% and a 76% decrease in net cash used in operations during the same period. With cash, cash equivalents, and restricted cash at $92.8 million as of December 31, 2024, and a recent public offering closing with $81.7 million in net proceeds on January 31, 2025, how well-positioned is Butterfly for future growth and innovation in the digital health space? Keep reading to find out.

Butterfly Network, Inc. (BFLY) Revenue Analysis

Butterfly Network, Inc. (BFLY) operates primarily in the medical technology sector, focusing on the development and commercialization of its single-probe, whole-body ultrasound system, Butterfly iQ+. Revenue streams are critical to understanding the financial health and growth potential of the company. Let's delve into the specifics of Butterfly Network's revenue composition.

Butterfly Network, Inc. (BFLY) generates revenue primarily from the sale of its Butterfly iQ+ devices and related subscription services. These subscription services provide access to software, educational resources, and advanced features that enhance the utility of the ultrasound device. The company targets a diverse range of customers, including hospitals, clinics, individual practitioners, and educational institutions.

Analyzing year-over-year revenue growth rates provides insights into Butterfly Network's performance and market penetration. While specific recent annual growth figures may vary, it’s important to consider both historical trends and future projections to gauge the company's trajectory. Keep an eye on their financial reports for the most up-to-date numbers.

To better illustrate the revenue streams, consider the following breakdown:

• Product Sales (Butterfly iQ+): Revenue generated from the direct sale of the Butterfly iQ+ ultrasound device.
• Subscription Services: Recurring revenue from subscriptions that offer software updates, enhanced features, and educational content.
• Other Services: Additional revenue from training, extended warranties, and other related services.

Understanding the contribution of each segment helps investors assess where Butterfly Network, Inc. (BFLY) is deriving most of its income and where potential growth opportunities lie. For example, a growing subscription base can indicate increasing customer retention and long-term revenue stability.

Significant changes in revenue streams should be carefully analyzed to understand their impact on the company's overall financial health. Factors to consider include:

• New Product Launches: Introduction of new versions or applications of the Butterfly iQ+ device.
• Geographic Expansion: Entry into new markets or increased sales in existing regions.
• Regulatory Approvals: Approvals that expand the use-cases and market reach of the device.
• Partnerships: Collaborations with other healthcare providers or technology companies.

For additional insights into Butterfly Network, Inc. (BFLY) financial health, check out this comprehensive analysis: Breaking Down Butterfly Network, Inc. (BFLY) Financial Health: Key Insights for Investors

Butterfly Network, Inc. (BFLY) Profitability Metrics

Analyzing Butterfly Network, Inc.'s (BFLY) profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial health. Trends in these metrics over time can reveal whether the company is improving its efficiency and cost management. Comparing these profitability ratios with industry averages provides further insight into how well Butterfly Network performs relative to its peers.

As of the fiscal year 2024, detailed profitability data for Butterfly Network, Inc. reveals several key metrics:

• Gross Profit: Butterfly Network reported a gross profit of $42.9 million.
• Operating Loss: The company experienced an operating loss of $128.9 million.
• Net Loss: Butterfly Network's net loss amounted to $139.2 million.

Here’s a more detailed breakdown in table format:

The gross profit indicates the revenue remaining after deducting the cost of goods sold, while the operating and net losses reflect the challenges Butterfly Network faces in achieving overall profitability. The operating loss is calculated by subtracting operating expenses from the gross profit, and the net loss includes additional expenses such as interest and taxes.

Operational efficiency can be further assessed by examining cost management strategies and trends in the gross margin. For instance, a growing gross margin suggests improved efficiency in production and pricing strategies. However, the substantial operating and net losses indicate that the company's expenses significantly outweigh its gross profit, highlighting areas needing improvement.

For additional insights, refer to: Breaking Down Butterfly Network, Inc. (BFLY) Financial Health: Key Insights for Investors

Butterfly Network, Inc. (BFLY) Debt vs. Equity Structure

Understanding how Butterfly Network, Inc. (BFLY) finances its operations and growth is crucial for investors. This involves analyzing its debt levels, debt-to-equity ratio, and overall approach to balancing debt and equity financing.

As of the fiscal year 2024, Butterfly Network, Inc.'s financial statements provide insights into its debt structure. While specific figures fluctuate, examining the company's filings reveals key components:

• Long-term debt: This includes obligations due beyond one year, such as loans and bonds.
• Short-term debt: This covers liabilities due within one year, like accounts payable and short-term loans.

Analyzing these components helps assess the company's ability to meet its financial obligations.

The debt-to-equity ratio is a vital metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance assets. A high ratio suggests greater reliance on debt, which can amplify both risk and potential returns. As of 2024, industry standards for medical technology companies provide a benchmark for comparison. For Butterfly Network, Inc. (BFLY), this ratio helps investors understand its financial risk profile relative to its peers.

Recent financial activities, such as debt issuances, credit ratings, or refinancing, can significantly impact a company's financial health. These events reflect investor confidence and the company's ability to manage its debt. Monitoring these activities provides insights into Butterfly Network, Inc.'s strategic financial decisions and overall stability.

Balancing debt and equity is a strategic decision for Butterfly Network, Inc. (BFLY). Debt financing can fuel growth but also increases financial risk. Equity funding, while less risky, can dilute ownership. The company's approach reflects its growth strategy, risk tolerance, and market conditions. Investors should assess whether this balance aligns with their investment goals.

Here is an example of how debt and equity information might be presented (Note: This is a hypothetical table for illustrative purposes only and does not reflect actual Butterfly Network, Inc. (BFLY) data):

For more in-depth analysis, you can read Breaking Down Butterfly Network, Inc. (BFLY) Financial Health: Key Insights for Investors.

Butterfly Network, Inc. (BFLY) Liquidity and Solvency

Assessing Butterfly Network, Inc. (BFLY)'s financial health requires a close look at its liquidity, which indicates its ability to meet short-term obligations. Key metrics to consider include current and quick ratios, working capital trends, and cash flow statements.

The current ratio, calculated by dividing current assets by current liabilities, provides insight into Butterfly Network, Inc.'s ability to cover its short-term liabilities with its short-term assets. A ratio of greater than 1 generally indicates good liquidity. As of December 31, 2023, Butterfly Network had cash and cash equivalents of $119.7 million, and accounts payable of $6.7 million.

The quick ratio, also known as the acid-test ratio, is a more conservative measure of liquidity because it excludes inventories from current assets. This ratio offers a clearer picture of a company's ability to meet its short-term obligations with its most liquid assets. For Butterfly Network, calculating this ratio involves subtracting inventories from current assets and dividing by current liabilities.

Analyzing working capital trends involves monitoring the difference between a company’s current assets and current liabilities over time. A positive working capital balance indicates that a company has enough short-term assets to cover its short-term liabilities. Monitoring the changes in working capital can reveal whether a company’s liquidity position is improving or deteriorating.

Cash flow statements provide a detailed overview of all cash inflows and outflows during a specific period, categorized into operating, investing, and financing activities. Here’s what to look for:

• Operating Cash Flow: Cash generated or used from the company's core business activities.
• Investing Cash Flow: Cash used for purchasing or selling long-term assets, such as property, plant, and equipment.
• Financing Cash Flow: Cash from debt, equity, and dividends.

Examining these cash flow trends helps investors understand how Butterfly Network is managing its cash and whether it is generating enough cash to sustain its operations and growth.

Potential liquidity concerns might arise if Butterfly Network consistently reports negative operating cash flow, declining working capital, or has difficulty meeting its short-term obligations. Conversely, strengths would include positive operating cash flow, increasing working capital, and a strong current and quick ratio.

Butterfly Network, Inc. (BFLY) Valuation Analysis

Assessing whether Butterfly Network, Inc. (BFLY) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. These elements, when viewed together, provide a comprehensive perspective for investors.

Currently, reliable price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios for Butterfly Network, Inc. are not readily available. This is due to the company's current financial status, which includes negative earnings. These ratios are most effective when a company has positive earnings and a stable financial structure. When a company is experiencing financial difficulties or rapid growth, these traditional valuation metrics may not provide an accurate picture.

Analyzing Butterfly Network, Inc.'s stock price trends over the past year provides insights into market sentiment and investor confidence. As of April 2025, BFLY's stock has shown considerable volatility. The stock began the year at $1.14, climbed to a high of $2.04 by late February, before declining to around $0.48 in mid-April. Recent trading activity shows the stock around $0.52. This fluctuation indicates a speculative interest in the stock, influenced by news and potential future growth rather than current profitability.

Given that Butterfly Network, Inc. does not currently offer dividends, dividend yield and payout ratios are not applicable. The absence of dividends reflects the company's focus on reinvesting earnings to fuel growth and expansion, which is typical for companies in the developmental stage.

Here’s a summary of the factors to consider when evaluating Butterfly Network, Inc.:

• P/E Ratio: Not applicable due to negative earnings.
• P/B Ratio: Data not readily available.
• EV/EBITDA: Not applicable due to negative EBITDA.
• Stock Price Trends: High volatility over the past 12 months, with significant fluctuations.
• Dividend Yield: Not applicable as Butterfly Network, Inc. does not offer dividends.

The analyst consensus on Butterfly Network, Inc.'s stock valuation varies. Current ratings suggest a mix of 'hold' and 'sell' recommendations. Analysts highlight the company's innovative technology and potential for long-term growth but also caution about its current financial challenges and cash burn rate. Investors should monitor analyst ratings and updates for any changes in sentiment, keeping in mind that these are based on the analysts' projections and may not fully reflect all market conditions.

In conclusion, determining whether Butterfly Network, Inc. is overvalued or undervalued requires a comprehensive analysis that goes beyond traditional valuation ratios. Investors should carefully consider the company's stock performance, analyst sentiment, and overall financial health, while also being aware of the risks and uncertainties associated with investing in growth-stage companies. For further insights, you might find this resource helpful: Breaking Down Butterfly Network, Inc. (BFLY) Financial Health: Key Insights for Investors

Butterfly Network, Inc. (BFLY) Risk Factors

Identifying and understanding the risks facing Butterfly Network, Inc. (BFLY) is crucial for investors. These risks span internal operational challenges and external market dynamics, potentially impacting the company’s financial health and future prospects.

Here's an overview of the key risks:

• Industry Competition: The medical technology sector is intensely competitive. Newer, more innovative technologies or established competitors with greater resources could threaten Butterfly Network, Inc.'s market position.
• Regulatory Changes: Medical devices are subject to strict regulatory oversight. Changes in regulations or failure to comply with existing regulations can lead to delays in product approvals, increased compliance costs, and potential legal issues.
• Market Conditions: Economic downturns can reduce hospital and healthcare provider spending, impacting sales of Butterfly Network's products. Changes in healthcare policies and reimbursement models can also affect the adoption of their technology.

Operational, financial, and strategic risks can be gleaned from recent earnings reports and filings. These documents often highlight specific challenges the company is addressing.

Examples of these risks may include:

• Product Development and Adoption: Delays in product development or failure to achieve widespread adoption of the Butterfly iQ+ could negatively impact revenue projections.
• Manufacturing and Supply Chain: Disruptions in the supply chain or manufacturing issues can lead to increased costs and delays in product delivery.
• Financial Stability: Maintaining sufficient cash flow to fund operations and growth is critical. Failure to secure additional funding or manage expenses effectively could jeopardize the company's financial stability.

Mitigation strategies are crucial for addressing these risks. While specific plans vary, common strategies include:

• Diversification: Expanding product offerings and targeting new markets can reduce reliance on a single product or region.
• Strategic Partnerships: Collaborating with other companies can provide access to new technologies, markets, and resources.
• Cost Management: Implementing cost-control measures can improve financial performance and ensure long-term sustainability.

Below is a hypothetical illustration of potential risks and mitigation strategies:

Understanding these risks and the company's strategies to mitigate them is essential for making informed investment decisions. For further insights into the company's mission, vision, and core values, refer to: Mission Statement, Vision, & Core Values of Butterfly Network, Inc. (BFLY).

Butterfly Network, Inc. (BFLY) Growth Opportunities

For Butterfly Network, Inc. (BFLY), several factors could drive future growth. These include product innovations, strategic market expansions, potential acquisitions, and key partnerships. The company's competitive advantages also play a crucial role in positioning it for sustained growth.

Butterfly Network, Inc. (BFLY) is focused on several strategic initiatives to propel future expansion. These initiatives are designed to leverage the company's innovative technology and market position to capture emerging opportunities. The details about strategic initiatives or partnerships that may drive future growth can be found at Mission Statement, Vision, & Core Values of Butterfly Network, Inc. (BFLY).

A comprehensive analysis of Butterfly Network, Inc.'s (BFLY) competitive advantages reveals several key strengths that could bolster its growth trajectory:

• Technological Innovation: Butterfly Network, Inc. (BFLY) holds a competitive edge through its innovative ultrasound-on-a-chip technology, which enables the production of affordable and portable whole-body imaging devices.
• Market Penetration: Expanding its presence in both domestic and international markets, particularly in underserved regions, offers substantial growth opportunities for Butterfly Network, Inc. (BFLY).
• Strategic Partnerships: Collaborations with healthcare providers and technology companies enhance Butterfly Network, Inc.'s (BFLY) market reach and technological capabilities, fostering growth through synergistic relationships.

While specific revenue growth projections and earnings estimates for Butterfly Network, Inc. (BFLY) are not available, here's a general outlook based on available information and industry trends:

Analysis of key growth drivers for Butterfly Network, Inc. (BFLY) would include:

• Product Innovation: Continued development and introduction of new features and applications for the Butterfly iQ+ and future iterations.
• Market Expansion: Increasing adoption of Butterfly iQ+ in various healthcare settings, including hospitals, clinics, and remote care environments.
• Strategic Partnerships: Forming alliances with healthcare providers, technology companies, and distributors to expand market reach and product integration.

The following table summarizes potential future growth prospects for Butterfly Network, Inc. (BFLY) based on key factors and strategies: