Full Press Release Details
Butterfly Network Reports First Quarter 2021
Strong Revenue Growth Driven by Increased Demand
for Butterfly Network's Solution
Gross Margin Above 50% and Adjusted Gross Margin
Above 45% Reflecting Benefits of the New Butterfly iQ+ Supply Chain
Conn., and NEW YORK, May 13, 2021 -- Butterfly Network, Inc. (NYSE: BFLY) ("Butterfly"), an
innovative digital health company that is working to democratize medical imaging and contribute to the aspiration of global health equity,
today announced financial results for the quarter ended March 31, 2021 and provided a corporate update.
First Quarter 2021 Highlights:
"This year is off to a great start with healthy growth and increased
customer excitement about the insights delivered by Butterfly's unique technology and our potential to advance medical imaging
beyond current use cases," said Dr. Todd Fruchterman, Butterfly's President and Chief Executive Officer. "During the
quarter we made excellent progress expanding our commercial and organizational capabilities, driving partnerships that expand our reach
across different care settings and specialties, as well as creating a dedicated team to transform veterinary medicine." Fruchterman
added, "I am excited by the breadth of opportunities in front of us to democratize imaging, drive fundamental change in healthcare
across care settings, and advance global health equity."
First Quarter 2021 Financial Results
First quarter revenue increased 43.5% to $12.4 million from $8.7 million
in the first quarter of 2020. Product revenue increased 33.1% to $9.6 million from $7.2 million in the first quarter of 2020. Subscription
revenue increased 94.9% to $2.8 million from $1.5 million in the first quarter of 2020.
Gross profit for the first quarter of 2021 was $6.4 million, compared
to a gross profit of negative $0.8 million in the first quarter of 2020. Adjusted gross profit, which includes a one-time adjustment
for warranty accrual methodology, was $5.9 million.
Total gross margin for the quarter was 51.6%, compared to a negative
9.6% in the first quarter of 2020. Adjusted gross margin was 47.8%, compared to a negative 9.4% in the first quarter of 2020.
Operating expenses were $60.2 million, compared to $23.7 million in
the first quarter of 2020, representing an increase of 154.1% primarily due to growth and changes in headcount and costs associated with
our business combination.
Net loss was $0.7 million, compared to a net loss of $24.4 million
during the first quarter of 2020.
EBITDA was a loss of $53.3 million in the first quarter of 2021, compared
to a loss of $24.2 million in the first quarter of 2020. Adjusted EBITDA was a loss of $26.5 million during the first quarter of 2021,
compared to a loss of $21.5 million in the first quarter of 2020.
Cash and cash equivalents and marketable securities were $545.3 million
as of March 31, 2021.
2021 Financial Guidance
A reconciliation of non-GAAP EBITDA and Adjusted EBITDA to net loss,
Adjusted gross profit to gross profit, and Adjusted gross margin to gross margin for the 2021 financial guidance is provided in the financial
schedules that are part of this press release. An explanation of these non-GAAP financial measures is also included below under the heading
"Non-GAAP Financial Measures."
Butterfly may incur charges, realize gains or losses, incur financing
costs or interest expense, or experience other events in 2021 that could cause actual results to vary materially from this guidance.
Strategic Collaborations and Commercial Expansion
Sientra Health has partnered with Butterfly to promote Butterfly iQ+
into their plastic surgery market. The partnership was launched at The Aesthetics Meeting and we believe it will allow Butterfly to reach
a specialized market segment through an experienced partner.
Butterfly iQ Vet is designed to address a need for accessibility,
affordability, and capability in the veterinary market. Butterfly is investing in a dedicated veterinary team to commercialize, market,
and scale the iQ Vet solution to transform animal health.
A conference call to review the first quarter 2021 financial results
is scheduled for May 13, 2021 at 8:30 AM Eastern Time. Interested parties may access the conference call by dialing (844) 558-0160 (U.S.)
or (236) 714-3222 (International) and referencing Conference ID 5883063. Additionally, a link to a live webcast of the call will be available
in the Investor Relations section of Butterfly's website at Butterfly Network, Inc. - Events & Presentations - Events
About Butterfly Network, Inc.
Founded by Dr. Jonathan Rothberg in 2011, and recently listed on the
New York Stock Exchange through a business combination with Longview Acquisition Corp., Butterfly created the world's first handheld,
single probe whole-body ultrasound system using semiconductor technology, the Butterfly iQ. Butterfly's mission is to democratize
medical imaging and contribute to the aspiration of global health equity, making high-quality ultrasound affordable, easy-to-use, globally
accessible, and intelligently connected, including for the 4.7 billion people around the world lacking access to ultrasound. Through
its proprietary Ultrasound-on-Chip technology, Butterfly is paving the way for earlier detection and remote management of health
conditions around the world. The Butterfly iQ can be purchased by healthcare practitioners in the United States, Australia, Austria,
Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden,
Switzerland, and the United Kingdom. Butterfly iQ is a prescription device intended for trained and qualified healthcare professionals
Non-GAAP Financial Measures
In addition to providing financial measurements based on generally
accepted accounting principles in the United States of America ("GAAP"), the Company provides additional financial metrics
that are not prepared in accordance with GAAP ("non-GAAP"). The non-GAAP financial measures included in this press release
are EBITDA, Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin. The Company presents non-GAAP financial measures in order
to assist readers of its consolidated financial statements in understanding the core operating results that its management uses to evaluate
the business and for financial planning purposes. The Company's non-GAAP financial measures, EBITDA, Adjusted EBITDA, Adjusted
gross profit and Adjusted gross margin, provide an additional tool for investors to use in comparing our financial performance over multiple
EBITDA, Adjusted EBITDA, Adjusted gross profit and Adjusted gross
margin are key performance measures that the Company's management uses to assess our operating performance. These non-GAAP measures
facilitate internal comparisons of the Company's operating performance on a more consistent basis. The Company uses these performance
measures for business planning purposes and forecasting. The Company believes that EBITDA, Adjusted EBITDA, Adjusted gross profit and
Adjusted gross margin enhance an investor's understanding of the Company's financial performance as they are useful in assessing
its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core
EBITDA, Adjusted EBITDA, Adjusted gross profit and Adjusted gross
margin may not be comparable to similarly titled measures of other companies because they may not calculate these measures in the same
manner. EBITDA, Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin are not prepared in accordance with GAAP and should
not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. When evaluating the Company's
performance, you should consider EBITDA, Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin alongside other financial performance
measures prepared in accordance with GAAP, including net loss, gross profit and gross margin.
The non-GAAP financial measures do not replace the presentation of
the Company's GAAP financial results and should only be used as a supplement to, not as a substitute for, the Company's financial
results presented in accordance with GAAP. In this press release, the Company has provided a reconciliation of EBITDA and Adjusted EBITDA
to net loss, Adjusted gross profit to gross profit, and Adjusted gross margin to gross margin, the most directly comparable GAAP financial
measures. A reconciliation of EBITDA, Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin to corresponding GAAP measures
is not available on a forward-looking basis because the Company is unable to predict with reasonable certainty the non-cash component
of employee compensation expense, changes in its working capital needs, variances in its supply chain, the impact of earnings or charges
resulting from matters the Company considers not to be reflective, on a recurring basis, of its ongoing operations, and other such items
without unreasonable effort. These items are uncertain, depend on various factors, and could be material to the Company's results
computed in accordance with GAAP. Management strongly encourages investors to review the Company's financial statements and publicly-filed
reports in their entirety and not rely on any single financial measure.
Forward Looking Statements
This press release includes "forward-looking
statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation
Reform Act of 1995. The Company's actual results may differ from its expectations, estimates, and projections and,
consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as
"expect," "estimate," "project," "budget," "forecast,"