Butterfly Network (BFLY) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $21.5 million, up 16% year-over-year, driven by iQ3 launch, strong international growth, and new product introductions.

• Net loss narrowed to $15.7 million from $28.7 million in Q2 2023, reflecting significant cost reductions and improved gross profit.

• Achieved $10 million in annualized cost savings through workforce optimization and a global technology partnership, extending cash runway into 2027.

• Expanded market reach with iQ3 launches in Canada, Southeast Asia, and a new Campus Essentials program for medical schools.

• WHO recognized iQ+ in its 2024 Compendium for low-resource settings.

Financial highlights

• Q2 2024 revenue: $21.5 million (16% YoY growth), highest in company history.

• Product revenue: $14.6 million (+19% YoY); software/services: $6.8–$6.9 million (+10% YoY), representing 31.8–32% of total revenue.

• Gross profit: $12.6 million; gross margin: 58.6% (down 0.5pp YoY).

• Operating expenses: $29.8 million (down 29% YoY); adjusted EBITDA loss: $8.1 million (improved from $17.0 million YoY).

• Cash, cash equivalents, and restricted cash: $106.1 million as of June 30, 2024; net cash used in operating activities for H1 2024 was $30.7 million.

Outlook and guidance

• Affirmed FY 2024 revenue guidance of $75–$80 million (15–20% growth YoY).

• Improved full-year adjusted EBITDA loss guidance to $45–$50 million.

• Q3 2024 revenue expected at ~$19 million (20–25% growth); adjusted EBITDA loss of $9–$10 million.

• Cash runway extends into 2027, with plans to seek additional capital before then to reach profitability.

• Annual cost savings of $10 million anticipated from a new global technology partnership.