Butterfly Network Reports Third Quarter 2021 Financial Results Year-over-Year Revenue Growth of 44% Driven by Commercial Expansion GUILFORD, Conn., and

Butterfly Network Reports Third Quarter 2021

Year-over-Year Revenue Growth of 44% Driven

by Commercial Expansion

GUILFORD, Conn., and NEW YORK, November 15, 2021 -- Butterfly Network,

Inc. (NYSE: BFLY) ("Butterfly"), an innovative digital health company that is working to democratize

medical imaging and improve global health equity, today announced financial results for the quarter ended September 30, 2021, and

provided a business update.

Third Quarter 2021 Highlights:

"Our journey to make Butterfly an indispensable, advanced assessment

tool for better clinical decision making is well underway," said Dr. Todd Fruchterman, Butterfly's President and Chief Executive

Officer. "As a young public company we continue to generate substantial year over year growth, demonstrate mounting market momentum,

and are assured by consistent industry signals that our strategy is the right one. As we continue to invest in our foundation, bring new

innovative solutions to market, and prove the differentiated clinical and economic value of Butterfly, we expect accelerated growth in

Third Quarter 2021 Financial Results

Third quarter revenue increased 44.3% to $14.6 million from $10.1 million

in the third quarter of 2020. Product revenue increased 25.8% to $10.8 million from $8.6 million in the third quarter of 2020. Subscription

revenue increased 149.2% to $3.8 million from $1.5 million in the third quarter of 2020.

Gross profit for the third quarter of 2021 was negative $5.1 million,

compared to gross profit of a negative $69.3 million in the third quarter of 2020. Adjusted gross profit was $7.2 million for the third

quarter of 2021, compared to an adjusted gross profit of negative $2.7 million in the third quarter of 2020.

Total gross margin for the quarter was negative 35%, compared to negative

683.3% in the third quarter of 2020. Adjusted gross margin was 49.3%, compared to a negative 26.3% in the third quarter of 2020. Adjusted

gross margin excluded a $11.6 million non-recurring loss on purchase commitment related to an inventory supply agreement where the expected

losses exceed the benefit of the contracts.

Operating expenses were $51.9 million, compared to $22.6 million in

the third quarter of 2020, representing an increase of 129.7% primarily due to the build out of personnel and services to support growth

initiatives and incremental expenses related to being a publicly traded company.

Net loss was approximately $13.6 million, compared to a net loss of

$92.2 million during the third quarter of 2020. Adjusted EBITDA was a loss of $33.5 million during the third quarter of 2021, compared

to a loss of $22.6 million in the third quarter of 2020.

Cash and cash equivalents and marketable securities were $468.4 million

as of September 30, 2021.

A reconciliation of Adjusted EBITDA to net loss, Adjusted gross profit

to gross profit, and Adjusted gross margin to gross margin for the three and nine months ended September 30, 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."

2021 Financial Guidance

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.

A conference call to review the third quarter 2021 financial results

and provide a business update is scheduled for November 15, 2021, 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 Relations section of Butterfly's website at Butterfly Network, Inc. -

Events & Presentations - Events.

About Butterfly Network, Inc.

Founded by Dr. Jonathan Rothberg in 2011, Butterfly Network has created the world's first handheld, single-probe whole-body

ultrasound system using its patented Ultrasound-on-Chip semiconductor technology. Butterfly's mission is to democratize medical

imaging and contribute to the aspiration of global health equity, including for the 4.7 billion people around the world lacking access

to ultrasound. Butterfly is paving the way for earlier detection and remote management of health conditions around the world. The Butterfly

iQ+ and Butterfly iQ+ Vet can be purchased today by healthcare practitioners and veterinarians, respectively, 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 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, 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 degree to which our products and services are accepted by healthcare practitioners and

patients for their approved uses; the Company's ability to obtain and maintain regulatory approval for its products, and any related