Full Press Release Details
Butterfly Network Reports Fourth Quarter and
Full Year 2021 Financial Results
Full Year 2021 Revenue Growth of 35%
Positive Momentum Driving a New Standard of
GUILFORD, Conn., and NEW YORK, February 28, 2022 -- Butterfly
Network, Inc. (NYSE: BFLY) ("Butterfly"), a digital health company transforming care with
handheld, whole-body ultrasound, today announced financial results for the quarter and full year ended December 31, 2021,
and provided a business update.
and Recent Business Highlights:
"We have made significant progress in our first year as a public
company," said Dr. Todd Fruchterman, Butterfly's President and Chief Executive Officer. "We generated substantial
growth in both human healthcare and veterinarian markets including customer deployments, adoption by medical education institutions and
global expansion through distributors and partnerships. At the same time, we also strengthened our people, began to evolve our business
model, and our approach to innovation." Fruchterman continued, "As we invest and grow in 2022, we are innovating to bring
valuable clinical insights to every care setting worldwide and advancing our vision to make Butterfly as ubiquitous as the stethoscope."
Fourth Quarter 2021 Financial Results
Fourth quarter revenue increased 21.3% to $19.0 million from $15.7
million in the fourth quarter of 2020. Product revenue increased 15.1% to $14.4 million from $12.5 million in the fourth quarter of 2020.
Subscription revenue increased 46.2% to $4.6 million from $3.1 million in the fourth quarter of 2020.
Gross profit for the fourth quarter of 2021 was $7.5 million, compared
to gross profit of $8.7 million in the fourth quarter of 2020. Adjusted gross profit was $10.1 million for the fourth quarter of 2021,
compared to an adjusted gross profit of $4.9 million in the fourth quarter of 2020.
Total gross margin for the quarter was 39.7%, compared to 55.6% in
the fourth quarter of 2020. Adjusted gross margin was 53.3%, compared to 31.2% in the fourth quarter of 2020.
Operating expenses were $52.8 million, compared to $30.9 million in
the fourth quarter of 2020, representing an increase of 71.0% primarily due to the build out of personnel and services to support growth
initiatives and expenses related to being a publicly traded company.
Net loss was $15.2 million, compared to a net loss of $22.9 million
during the fourth quarter of 2020. Adjusted EBITDA was a loss of $33.3 million during the fourth quarter of 2021, compared to a loss of
$21.0 million in the fourth quarter of 2020.
Cash and cash equivalents were $422.8 million as of December 31,
A reconciliation of Adjusted EBITDA to net loss, Adjusted gross profit
to gross profit, and Adjusted gross margin to gross margin for the three months and the year ended December 31, 2021 and 2020, 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."
Full Year 2021 Financial Results
Full year revenue increased 35.3% to $62.6 million from $46.3 million
in full year 2020. Product revenue increased 24.8% to $47.9 million from $38.3 million in full year 2020. Subscription revenue increased
85.9% to $14.7 million from $7.9 million in 2020.
Gross profit for the full year 2021 was $17.1 million, compared to
gross profit of negative $61.2 million in full year 2020. Adjusted gross profit was $31.6 million for the full year 2021, compared to
an adjusted gross profit of $1.6 million in full year 2020.
Total gross margin for the full year 2021 was 27.3%, compared to a
negative 132.4% in 2020. Adjusted gross margin was 50.5%, compared to 3.5% in full year 2020.
Full year operating expenses were $209.8 million, compared to $100.4
million in full year 2020, representing an increase of 109% primarily due to the build out of personnel and services to support growth
initiatives and expenses related to being a publicly traded company.
Full year net loss was $32.4 million, compared to a net loss of $162.7
million for the full year 2020. Full year adjusted EBITDA was a loss of $121.8 million, compared to a loss of $85.2 million for the full
2022 Financial Guidance
Butterfly may incur charges, realize gains or losses, incur financing
costs, or interest expense, or experience other events in 2022 that could cause actual results to vary materially from this guidance.
call to review the fourth quarter and full year 2021 financial results and provide a business update is scheduled for February 28,
2022, at 8:30 am Eastern Time. Interested parties may access the conference call by dialing (888) 440-4052 (U.S.) or (646) 960-0827 (Outside
U.S.) and referencing Conference ID 9393576. Additionally, a link to a live webcast of the call will be available in the Investor
section of Butterfly's website.
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 online today 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 qualified healthcare
information, visit www.butterflynetwork.com.
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 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, Adjusted EBITDA, Adjusted gross profit
and Adjusted gross margin, provide an additional tool for investors to use in comparing our financial performance over multiple periods.
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 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 business.
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. 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
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 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 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