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Butterfly Network (BFLY)
NYSE:BFLY
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Butterfly Network
(NYSE:BFLY)
45Neutral
Positive Factors
Financial Performance
BFLY had another strong quarter with sales and EBITDA results that beat Street targets.
Market Position
Butterfly is considered the strongest competitive threat by the GE Healthcare team, indicating its strong positioning in the handheld POCUS market.
Product Launch
The US and international iQ3 launches have driven quarterly outperformance and positive guidance revisions in 2024.
Negative Factors
Market Risks
Risks include slow rate of change in medicine with difficult-to-predict inflections, competition from larger players, and being unproven with opportunities.
Public Perception
An incorrect headline from SeekingAlpha.com suggesting the company missed Q4 revenue consensus by ~90% threw Butterfly a lump of iron, sinking shares over 20% premarket.
Butterfly Network (BFLY) vs. S&P 500 (SPY)
Market Cap
$495.56M
Dividend YieldN/A
Average Volume (3M)3.93M
Price to Earnings (P/E)―
Beta (1Y)2.61
Revenue Growth24.51%
EPS Growth47.32%
CountryUS
Employees190
SectorHealthcare
Sector Strength78
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.34
Shares Outstanding216,496,220
10 Day Avg. Volume3,138,203
30 Day Avg. Volume3,929,073
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.82
Price to Cash Flow (P/CF)-51.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside141.55% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Butterfly Network Business Overview & Revenue Model
Company DescriptionButterfly Network, Inc., a digital health company, develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+, a point-of-care ultrasound imaging device that connects with a smartphone, tablet, and hospital computer system; and Butterfly Blueprint, a system-wide ultrasound platform with Compass software that integrates into a healthcare system's clinical and administrative infrastructure. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions, to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as clinical support and services. Butterfly Network, Inc. was incorporated in 2011 and is headquartered in Guilford, Connecticut.
How the Company Makes MoneyButterfly Network generates revenue primarily through the sale of its Butterfly iQ devices, as well as associated software and subscription services. The company offers a subscription model that provides users with access to advanced imaging features, cloud storage, and ongoing software updates, ensuring customers maintain state-of-the-art functionality. Revenue is also derived from partnerships with healthcare institutions, where Butterfly Network's technology is integrated into clinical workflows. Additionally, the company engages in strategic collaborations to expand its market presence and enhance the adoption of its ultrasound solutions across different medical specialties.
Butterfly Network Financial Statement Overview
Summary
Butterfly Network demonstrates strong revenue growth and a solid balance sheet with low leverage. However, persistent negative profitability and cash flow challenges highlight the need for strategic focus on cost management and operational efficiency to achieve sustainable financial health. The company must prioritize turning its revenue growth into profitability to improve its financial standing.Income Statement
Butterfly Network has shown consistent revenue growth, increasing from $65.9M in 2023 to $82.1M in 2024. Despite this, the company remains unprofitable, evident from a negative net income and EBIT. The gross profit margin improved significantly to 59.5%, but the net profit margin remains negative at -88.3% due to high operational costs. The persistent negative EBITDA and EBIT margins indicate ongoing challenges in achieving operational efficiency.45
Neutral
Balance Sheet
The company's balance sheet reflects a strong equity position with an equity ratio of 65.9% in 2024, suggesting a stable capital structure. The debt-to-equity ratio is low at 0.12, indicating limited leverage and financial risk. However, the return on equity is negative due to ongoing net losses, highlighting the need for improved profitability.50
Neutral
Cash Flow
Cash flow analysis shows improvement in free cash flow, with a reduction in negative free cash flow from $104.6M in 2023 to $44.4M in 2024. The operating cash flow to net income ratio is negative, reflecting operational cash deficits. While there is a positive trend, the company needs to focus on generating positive cash flows to ensure financial sustainability.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 82.06M | 65.90M | 73.39M | 62.56M | 46.25M | Gross Profit |
| 48.83M | 16.86M | 39.46M | 17.05M | -61.22M | EBIT |
| -74.41M | -145.61M | -193.02M | -192.73M | -161.62M | EBITDA |
| -60.92M | -124.84M | -162.74M | -29.55M | -160.25M | Net Income Common Stockholders |
| -72.49M | -133.70M | -168.72M | -32.41M | -162.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 88.78M | 134.44M | 237.81M | 422.84M | 60.21M | Total Assets |
| 256.08M | 304.27M | 417.57M | 571.97M | 147.19M | Total Debt |
| 20.40M | 25.03M | 31.89M | 27.69M | 53.89M | Net Debt |
| -68.38M | -109.41M | -130.67M | -395.15M | -6.31M | Total Liabilities |
| 87.25M | 84.22M | 92.21M | 124.27M | 509.12M | Stockholders Equity |
| 168.83M | 220.05M | 325.36M | 447.69M | -361.93M |
| Cash Flow | Free Cash Flow | |||
| -44.40M | -104.60M | -187.42M | -197.06M | -84.08M | Operating Cash Flow |
| -41.71M | -98.82M | -169.12M | -189.19M | -81.70M | Investing Cash Flow |
| -2.66M | 70.41M | -93.78M | -9.87M | -2.38M | Financing Cash Flow |
| -1.50M | 228.00K | 2.88M | 565.69M | 54.28M |
Butterfly Network Technical Analysis
Negative
2.07
Price Trends
3.32
Negative
3.36
Negative
2.40
Negative
Market Momentum
-0.32
Positive
30.99
Neutral
12.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFLY, the sentiment is Negative. The current price of 2.07 is below the 20-day moving average (MA) of 2.47, below the 50-day MA of 3.32, and below the 200-day MA of 2.40, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 30.99 is Neutral, neither overbought nor oversold. The STOCH value of 12.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BFLY.
Butterfly Network Risk Analysis
Butterfly Network disclosed 48 risk factors in its most recent earnings report. Butterfly Network reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Butterfly Network Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $159.37B | 15.14 | 14.40% | 2.06% | -1.04% | 9.00% | |
71 Outperform | $13.66B | 19.39 | 15.78% | ― | 1.75% | 50.25% | |
68 Neutral | $27.67B | 13.94 | 25.60% | 0.20% | 0.61% | 43.28% | |
50 Neutral | $21.24B | ― | -7.10% | ― | -0.76% | -55.03% | |
48 Neutral | $6.26B | 1.17 | -46.80% | 2.68% | 17.23% | 1.28% | |
45 Neutral | $495.56M | ― | -37.28% | ― | 24.51% | 47.32% | |
43 Neutral | $1.83B | ― | -46.67% | ― | 18.82% | 19.76% |
* Healthcare Sector Average
Performance Comparison
BFLY
Butterfly Network
2.08
1.06
103.92%
HOLX
Hologic
58.46
-19.95
-25.44%
PHG
Koninklijke Philips
21.67
1.76
8.84%
SIEGY
Siemens AG
96.27
3.43
3.69%
NVCR
NovoCure
15.37
0.49
3.29%
GEHC
GE Healthcare Technologies Inc
58.75
-28.06
-32.32%
Butterfly Network Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: -44.50% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong revenue growth, successful product launches, and international expansion, supported by a recent capital raise. However, challenges remain with ongoing adjusted EBITDA losses and higher production costs, and new initiatives have yet to significantly impact revenue.Highlights
Strong Revenue Growth
Butterfly Network delivered $82.1 million in revenue for 2024, representing a 25% top-line growth. The fourth quarter saw a 35% increase in revenue compared to the prior year period, reaching $22.4 million, the highest quarterly result in the company's history.
iQ3 Commercial Success
The launch of iQ3 was a commercial success, representing 50% of overall 2024 sales in units and 58% of probe revenue. It delivered higher ASPs than the second-generation device.
International Expansion
Butterfly received EU MDR for iQ+ and iQ3, allowing for the European launch and expanded access to new markets in Asia. This is expected to power international growth in 2025.
Successful Capital Raise
Butterfly raised $81.7 million from a follow-on offering in January 2025, providing a bridge to cash flow independence and enabling continued investment in growth initiatives.
Positive Developments in HomeCare
A pilot agreement for lung ultrasound services in Wisconsin showed positive results, with no patient readmissions and improved care for congestive heart failure patients.
Improved Adjusted EBITDA
Adjusted EBITDA loss improved by 42% for the full year 2024, from $67.5 million in 2023 to $38.9 million in 2024, driven by higher revenue and cost reductions.
Lowlights
Ongoing Adjusted EBITDA Loss
Despite improvements, Butterfly still reported an adjusted EBITDA loss of $38.9 million for the full year 2024, indicating ongoing financial challenges.
Higher Production and Warranty Costs
Gross margin benefits were offset by higher production costs of iQ3 and warranty costs.
Limited Immediate Impact from New Initiatives
While strategic initiatives like Octiv and HomeCare show promise, they have not yet contributed significant revenue and are not included in the 2025 guidance.
Company Guidance
During the Butterfly Network Fourth Quarter and Full Year 2024 Earnings Call, the company provided robust guidance for 2025. The company reported a 25% revenue growth in 2024, reaching $82.1 million, and an adjusted EBITDA improvement of 42%, resulting in a loss of $38.9 million. Their iQ3 product was a commercial success, accounting for 50% of sales units and 58% of probe revenue in 2024. For 2025, Butterfly Network projects revenue between $96 million and $100 million, reflecting approximately 20% growth, with an adjusted EBITDA loss between $37 million and $42 million. This guidance excludes any potential revenue from new streams such as the HomeCare business or future Octiv partnerships, which could represent substantial upside.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.