Butterfly Network (BFLY) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 revenue of $20.6 million, up 33% year-over-year, with strong growth in both U.S. and international markets and record sales performance.

• Net loss narrowed to $16.9 million from $27.4 million in Q3 2023, reflecting cost reductions and operational efficiencies.

• Expanded internationally with launches in Europe and Asia, introduced iQ3 and new AI-powered education applications, and formed the Octiv subsidiary.

• Continued investment in R&D, differentiated technology, and environmental initiatives, including Ultrasound-on-Chip and RoHS compliance.

• Strengthened leadership team with the appointment of a new EVP and Chief Business Officer.

Financial highlights

• Q3 2024 revenue reached $20.6 million, a 33% increase year-over-year; U.S. revenue was $13.1 million (up 27%), international revenue $5.2 million (up 36%).

• Product revenue grew 55% to $13.5 million; software and services revenue up 5% to $7.0 million.

• Gross profit was $12.2 million, with gross margin at 59.5% (down from 60.8%); adjusted gross margin was 60.0%.

• Operating expenses decreased 30% to $29.5 million; adjusted EBITDA loss improved to $8.4 million from $12.5 million.

• Cash, cash equivalents, and restricted cash stood at $97.8 million as of September 30, 2024; cash use reduced to $8.3 million in Q3.

Outlook and guidance

• Raised 2024 revenue guidance to $79–$81 million (over 20% growth); improved adjusted EBITDA loss guidance to $40–$42 million.

• Q4 2024 expected revenue of $20–$22 million and adjusted EBITDA loss of $10–$12 million.

• 2025 outlook projects at least 15–20% top-line growth and closing of non-dilutive capital through Powered by Butterfly.

• Targeting cash flow break-even by 2027 and $500 million revenue within five years; cash runway expected to extend into 2027.