In This Article:
Release Date: May 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Butterfly Network Inc (NYSE:BFLY) reported a 20% revenue growth for Q1 2025, reaching $21.2 million, driven by higher sales volume and the launch of the IQ 3 probe.
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The company improved its gross margin to 63% from 58% in the previous year, indicating better profitability.
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Butterfly Network Inc (NYSE:BFLY) is expanding its product portfolio with two generations of probes, allowing for a broader market reach.
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The company is making significant progress in its enterprise hospital filling program, with a second hospital enterprise customer integrating its Compass software.
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Butterfly Network Inc (NYSE:BFLY) is actively expanding internationally, focusing on Asia, Latin America, and high-potential global health markets.
Negative Points
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The company faces economic headwinds due to USAID funding cuts, causing delays in international revenue opportunities.
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There is uncertainty regarding healthcare funding, which could impact future revenue and growth.
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Tariff impacts could increase costs, with potential additional expenses if tariffs are implemented throughout 2025.
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The company experienced lower renewals of individual software subscriptions, affecting software revenue growth.
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Butterfly Network Inc (NYSE:BFLY) is navigating broader economic pressures that may slow down deal closures.
Q & A Highlights
Q: Can you discuss the process and key learnings from securing the second hospital enterprise contract? A: Joe DeVivo, CEO, explained that the contract was secured due to a groundswell of activity where doctors are independently choosing Butterfly's technology. This has led hospitals to realize the need for data compliance and patient management, prompting them to institutionalize Butterfly's technology. The process involves showing hospitals the proliferation of Butterfly devices among their doctors and the benefits of integrating Butterfly's software throughout their network.
Q: What is the funnel for additional opportunities with medical schools, and how have conversations evolved? A: Joe DeVivo, CEO, noted that medical schools are increasingly adopting a one-to-one model for student probe programs. The conversations have shifted from whether to incorporate ultrasound into the curriculum to how and when to implement the one-to-one model, either through campus stores or as part of tuition. This creates a recurring revenue stream as new students enter medical education each year.