Butterfly Network, Inc. (BFLY) stock prices were down by a marginal 0.20% as of the market closing on May 21st, 2021, bringing the price per share down to USD$10.16.
Revenue Breakdown
May 13th, 2021 saw the company disclose their financial results for the first quarter of the fiscal year 2021. Revenues were reported to have increased by 43.5% compared to the same time period of the prior year, with Q1 2021 reporting USD$12.4 million, up from the USD$8.7 million reported in Q1 2020. Revenue generated from subscriptions was up by 94.9%, from USD$1.5 million in Q1 2020 to USD$2.8 million in Q1 2021. Product revenue was also up, by 33.1%, from USD$7.2 million in Q1 2020 to USD$9.6 million in Q1 2021.
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Gross Profits and Margins
Gross Profit for Q1 2021 came in at USD$6.4 million, a massive increase from the negative USD$0.8 million gross profit reported in the first quarter of the fiscal year 2020. Adjusted gross profit was reported at USD$5.9 million, which included a one-time adjustment for warranty accrual methodology. Gross margins increased substantially from negative 9.6% in Q1 2020 to 51.6% in Q1 2021. Adjusted gross margin for Q1 2020 was 9.4%, with Q1 2021 having seen a significant increase to 47.8%.
Operating Expenses and Net Loss
Operating expenses were up from USD$23.7 million in Q1 2020 to USD$60.2 million in Q1 2021. This massive 154.1% increase is primarily attributable to growth and an increase in workforce and costs associated with BFLY’s business combination. Net loss for the first quarter of the fiscal year 2021 was down to USD$0.7 million, a significant reduction from the USD$24.4 million reported in net loss for the first quarter of 2020.
Strategic Partnerships
BFLY also announced its collaboration with Sientra Health to gain exposure to their plastic surgery market. The partnership that was launched at the Aesthetics Meeting will facilitate the company’s ability to reach a specialized market segment through its experienced partner in the sector. Concurrently, Butterfly iQ Vet is being designed to address a need for accessibility, affordability, and capability in the veterinary market. The company has allocated resources towards the compiling of a veterinary team that will facilitate the commercialization, market presence, and scaling of the iQ Vet solution to transform the animal health space.
Future Outlook for BFLY
With the company reporting cash, cash equivalents, and marketable securities amounting to USD$545.3 million as of March 31st, 2021, BFLY is armed with a solid liquidity position to ensure further growth. Current and potential investors are hopeful in the company’s ability to leverage the resources at its disposal to usher in significant and sustained increases in shareholder value.
