Butterfly Network(BFLY) - 2023 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2023 was $16.5 million, down from$19.0 million in Q4 2022, with U.S. revenue at $10.9 million (down 3$4.6 million[13]. - Product revenue decreased by 20% year-over-year to $10.2 million, attributed to lower distributor orders and e-commerce volume[6]. - Gross loss for Q4 2023 was$12.5 million, with total gross margin decreasing to negative 75.9% from 50.3% in the prior year, primarily due to a $21.9 million write-down of excess inventory[14]. - Net loss for the year ended 2023 was$133.7 million, an improvement from a net loss of $168.7 million in 2022[16]. - Cash and cash equivalents at the end of Q4 2023 were$134.4 million, down from $162.6 million at the end of 2022[15]. - The net loss for Q4 2023 was$44.1 million, compared to a net loss of $33.7 million in the prior year[22]. - Adjusted EBITDA loss for Q4 2023 was$15.7 million, an improvement from a loss of $27.7 million in Q4 2022[24]. - Operating expenses decreased by 42$34.2 million from $58.6 million in the prior year period, attributed to workforce reductions and spending rationalization[23]. - Total operating expenses excluding stock-based compensation were$27.3 million, down 32% from $39.9 million in Q4 2022[33]. - Cash, cash equivalents, and restricted cash totaled$138.7 million as of December 31, 2023[34]. Product Development and Innovation - Butterfly launched its third-generation handheld ultrasound system, Butterfly iQ3™, which received FDA clearance ahead of schedule in January 2024[3]. - The company launched its second generation Butterfly iQ+ in 2020 and plans to release the third generation iQ3 in 2024, enhancing processing power and performance[38]. - Butterfly's proprietary Ultrasound-on-Chip™ technology and intelligent software are key to mass adoption of ultrasound for early detection and remote health management[38]. - The company signed 13 partners into its Butterfly Garden program, enhancing its ecosystem and driving growth[11]. Future Outlook - The company expects low double-digit revenue growth for the upcoming fiscal year[25]. - Upcoming Investor Day is scheduled for March 18, 2024, at the New York Stock Exchange to discuss growth initiatives[9]. - The company plans to host an Investor Day event on March 18, 2024, to showcase new ultrasound technology and co-developed products[26]. Financial Metrics and Reporting - Financial measures include adjusted gross profit, adjusted gross margin, and adjusted EBITDA, which are not prepared in accordance with GAAP[39]. - Adjusted gross profit and adjusted EBITDA are used to evaluate core operating results and financial planning, providing tools for investors to compare performance over periods[40]. - The company emphasizes that non-GAAP measures should be considered alongside GAAP measures for a comprehensive evaluation of performance[40]. - The financial statements are presented in thousands, indicating a focus on detailed financial reporting[43]. Market Reach and Recognition - Butterfly Network aims to democratize medical imaging, targeting the 4.7 billion people globally without access to ultrasound[38]. - Butterfly devices are commercially available in various regions, including parts of Africa, Asia, Europe, and the Americas[38]. - The company has received multiple accolades, including TIME's Best Inventions and CNBC Disruptor 50, highlighting its innovative technology[38]. Revenue Breakdown - Software and other services revenue remained flat at $6.4 million, with enterprise software growing by 35$16.5 million, down 13% from $19.0 million in Q4 2022[19]. - Adjusted gross profit for Q4 2023 was$9.4 million, with an adjusted gross margin of 56.6%[19]. Forward-Looking Statements - Future updates on forward-looking statements will not be publicly released unless there are changes in expectations or circumstances[42].