Butterfly Network Q4 revenue beats, shares dip on muted outlook

Published 28/02/2025, 17:06
Butterfly Network Q4 revenue beats, shares dip on muted outlook

NEW YORK - Butterfly Network, Inc. (NYSE:BFLY) reported better-than-expected fourth quarter revenue but shares slipped 1.9% as investors appeared underwhelmed by the company’s outlook for 2025.

The digital health company posted Q4 revenue of $22.4 million, up 35% YoY and surpassing analyst estimates of $20.1 million. Adjusted earnings per share came in at -$0.08, slightly ahead of the -$0.09 consensus forecast.

Butterfly Network’s product revenue jumped 45% to $14.7 million, driven by a 22% increase in units sold and higher selling prices for its new iQ3 ultrasound probe. Software (ETR:SOWGn) and services revenue grew 20% to $7.6 million.

For fiscal 2025, the company projects revenue of $96-100 million, in line with Wall Street’s $97.8 million estimate. This outlook represents approximately 20% YoY growth.

"2024 was a year of focused execution against the strategy we introduced at our March 2024 Investor Day," said Joseph DeVivo, Butterfly’s President, CEO and Chairman. "With 25% topline growth, high-impact product launches and key milestones achieved, we completed a strong first year of the five-year plan."

The company recently raised $81.7 million through a public offering to strengthen its balance sheet. Butterfly Network said this funding will help drive innovation and expand access to its advanced imaging technology.

Despite the revenue beat, shares dipped slightly after hours, suggesting investors may have been looking for more aggressive growth targets for the year ahead.

After the report, TD Cowen analyst Joshua Jennings reiterated a Buy stock rating and a $4.50 price target.

The analyst stated, "We reiterate our Buy rating on BFLY in response to a big pullback in the company’s stock this morning, which we attribute to an incorrect news headline (since corrected) that stated BFLY missed the Street’s 4Q forecasts. In fact, BFLY’s 4Q sales and EBITDA results beat Street targets. Its 2025 revenue guidance brackets the consensus outlook and signals ~20% growth, which should prove conservative."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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