Butterfly Network's 2024Q4 Earnings Call: Contradictions in HomeCare Progress, Wearables, and Revenue Expectations

These are the key contradictions discussed in Butterfly Network's latest 2024Q4 earnings call, specifically including: HomeCare channel progress and revenue expectations, wearable ultrasound program development, iQ3 sales performance and international market expansion, and HomeCare business model:



Revenue Growth and Product Success:
- Butterfly Network reported revenue of $82.1 million for 2024, representing a 25% top-line growth compared to the previous year.
- The growth was driven by the commercial success of the iQ3, which accounted for 50% of overall sales and 58% of Pro revenue, and higher average selling prices.

Core Business Expansion and Software Revenue:
- Product revenue increased by 45% to $14.7 million in Q4 2024 compared to the same period in 2023.
- Software and other services revenue rose by 20% to $7.6 million in Q4 2024, although this represented a decrease to 34% of total revenue.
- The increase in product revenue was primarily due to higher selling prices and volume, while the software revenue mix decreased as product revenue outpaced software growth.

Cost Management and Profitability Improvement:
- Butterfly improved adjusted EBITDA by 42% to a loss of $38.9 million in 2024 compared to $67.5 million in 2023.
- This improvement was attributed to higher revenue, cost reductions, and efficiencies in operating expenses, which decreased by 16% for the full year.

Strategic Initiatives and Partnerships:
- The company's Octiv subsidiary signed multiple partners, including Sonic Incytes and Forest Neurotech, to commercialize its chip technology in non-competitive markets.
- Butterfly also expanded its Butterfly Garden initiative, with 21 partners signed by the end of 2024, ahead of schedule, to develop applications for clinical use.