Full Press Release Details
Butterfly Network Reports Second Quarter 2021
Strong Revenue Growth Driven by Broad Customer
Gross Margin of 49.8% and Adjusted Gross Margin
GUILFORD, Conn., and NEW YORK, August 9, 2021 -- Butterfly Network,
Inc. (NYSE: BFLY) ("Butterfly"), an innovative digital health company that is working to democratize
medical imaging and enable global health equity, today announced financial results for the quarter ended June 30, 2021, and provided
Second Quarter 2021 Highlights:
"As we continue our journey as a public company, we achieved
another quarter of strong revenue growth, while driving progress against our foundational goals." said Dr. Todd Fruchterman, Butterfly's
President and Chief Executive Officer. "Our commercial expansion in the US and international markets reflects broad interest in
Butterfly across a variety of use-cases and settings. Building for long-term growth, we also made leadership appointments adding expertise
in innovation and IT infrastructure." said Dr. Todd Fruchterman. "Butterfly makes it possible to democratize imaging. With
Butterfly, information is more accessible, reliable, and usable for providers and patients, enabling more informed decision making at
Second Quarter 2021 Financial Results
Second quarter revenue increased 40.0% to $16.5 million from $11.8
million in the second quarter of 2020. Product revenue increased 30.3% to $13.0 million from $10.0 million in the second quarter of 2020.
Subscription revenue increased 94.3% to $3.5 million from $1.8 million in the second quarter of 2020.
Gross profit for the second quarter of 2021 was $8.2 million, compared
to a gross profit of $0.2 million in the second quarter of 2020. Adjusted gross profit was $8.3 million, compared to an adjusted gross
profit of $0.2 million in the second quarter of 2020.
Total gross margin for the quarter was 49.8%, compared to 1.4% in the
second quarter of 2020. Adjusted gross margin was 50.2%, compared to a 1.6% in the second quarter of 2020.
Operating expenses were $44.9 million, compared to $23.2 million in
the second quarter of 2020, representing an increase of 93.3% primarily due to the build out of personnel and services to support growth
initiatives and expenses incremental to being a publicly traded company.
Net loss was $2.9 million, compared to a net loss of $23.2 million
during the second quarter of 2020. Adjusted EBITDA was a loss of $28.5 million during the second quarter of 2021, compared to a loss of
$20.1 million in the second quarter of 2020.
Cash and cash equivalents and marketable securities were $509.5 million
as of June 30, 2021.
Innovation and Commercial Expansion
A conference call to review the second quarter 2021 financial results
is scheduled for August 9, 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 (Outside U.S.) and referencing Conference ID 5067824. 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 enable universal
access to superior medical imaging, 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.
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
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," "anticipate," "intend," "plan," "may," "will,"
"could," "should," "believes," "predicts," "potential," "continue,"
and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.
These forward-looking statements include, without limitation, the Company's expectations with respect to financial results, future
performance, development of products and services, potential regulatory approvals, anticipated financial impacts and other effects of
the Company's business combination on its business, and the size and potential growth of current or future markets for its products
and services. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ
materially from those discussed in the forward-looking statements. Most of these factors are outside the Company's control and are
difficult to predict. Factors that may cause such differences include, but are not limited to: the impact of COVID-19 on the Company's
business; the ability to recognize the anticipated benefits of the business combination; the Company's ability to grow and manage
growth profitably; the success, cost and timing of the Company's product and service development activities; the potential attributes
and benefits of the Company's products and services; the Company's ability to obtain and maintain regulatory approval for
its products, and any related restrictions and limitations of any approved product; the Company's ability to identify, in-license
or acquire additional technology; the Company's ability to maintain its existing license, manufacture, supply and distribution agreements;
the Company's ability to compete with other companies currently marketing or engaged in the development of products and services
that the Company is currently marketing or developing; changes in applicable laws or regulations; the size and growth potential of the
markets for the Company's products and services, and its ability to serve those markets, either alone or in partnership with others;
the pricing of the Company's products and services and reimbursement for medical procedures conducted using its products and services;
the Company's estimates regarding expenses, revenue, capital requirements and needs for additional financing; the Company's
financial performance; the Company's ability to raise financing in the future; and other risks and uncertainties indicated from