8-K: Butterfly Network Announces Preliminary Q4 2024 Revenue Growth of 35%

Butterfly Network reports preliminary unaudited revenue growth of approximately 35% year-over-year for the fourth quarter of 2024.

Summary

• Butterfly Network announced preliminary unaudited results for the fourth quarter of 2024, showing a revenue growth of approximately 35% year-over-year.
• The company's growth rate accelerated throughout the year, exceeding expectations.
• Audited fourth quarter and full-year 2024 results are expected to be released in late February, along with 2025 guidance.
• Butterfly Network will present a business update at the J.P. Morgan Healthcare Conference on January 16, 2025.
• The preliminary financial data is based on currently available information and has not been audited by Deloitte & Touche LLP.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the strong preliminary revenue growth and optimistic outlook for 2025, although it is tempered by the preliminary nature of the results and the inherent risks in forward-looking statements.

Positives

• The company experienced strong revenue growth of approximately 35% year-over-year in the fourth quarter of 2024.
• The growth rate accelerated throughout the year, indicating positive momentum.
• Management expressed confidence in continued strong top-line growth and fiscal discipline for 2025.
• The company's products and team were highlighted as key drivers of the strong performance.

Negatives

• The reported results are preliminary and unaudited, subject to change upon completion of financial closing procedures.
• The preliminary financial data has not been reviewed or audited by Deloitte & Touche LLP.

Risks

• The actual results may differ from the preliminary estimates due to various factors.
• The company's ability to grow and manage growth effectively is a risk.
• The success, cost, and timing of product development activities are uncertain.
• Market acceptance of the company's products and services is not guaranteed.
• The company's ability to obtain and maintain regulatory approvals is a risk.
• The company's ability to compete with other companies is a risk.
• Changes in applicable laws or regulations could impact the company.
• The company's ability to raise financing in the future is a risk.

Future Outlook

The company expects another year of strong top-line growth with continued fiscal discipline in 2025.

Management Comments

• Joseph DeVivo, Butterfly's President, Chief Executive Officer and Chairman, stated that the company closed out 2024 strong with a standout performance in the final quarter.
• Joseph DeVivo attributed the performance to relentless execution, exceptional products, and an extraordinary team.
• Heather Getz, Butterfly's Chief Financial and Operations Officer, mentioned that they are heading into 2025 with great momentum and expect another year of strong top-line growth with continued fiscal discipline.

Industry Context

The announcement highlights the growing demand for portable and affordable medical imaging solutions, aligning with the broader trend of digital health transformation and increased accessibility to healthcare technology.

Comparison to Industry Standards

• The 35% year-over-year revenue growth is a strong performance compared to many established medical device companies, which often see single-digit or low double-digit growth.
• Companies like Philips and GE Healthcare, while much larger, are also focusing on digital health and point-of-care solutions, but Butterfly's growth rate suggests a more rapid adoption of their technology.
• The focus on semiconductor-based ultrasound technology positions Butterfly as a disruptor in the traditional ultrasound market, which is dominated by larger, more expensive systems.

Stakeholder Impact

• Shareholders are likely to react positively to the strong revenue growth.
• Employees may be motivated by the company's positive performance and outlook.
• Customers may see the company as a reliable provider of innovative medical imaging solutions.
• Suppliers may benefit from the company's growth and increased demand for its products.

Next Steps

• The company will present a business update at the J.P. Morgan Healthcare Conference on January 16, 2025.
• The company will release audited fourth quarter and full-year 2024 results in late February.
• The company will provide 2025 guidance when the audited results are released.

Key Dates

Keywords

ultrasound, medical imaging, digital health, revenue growth, financial results, healthcare technology, semiconductor technology, Butterfly Network, BFLY