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    Butterfly Network (BFLY)

    BFLY Q2 2024: Record Revenue on 75% iQ3 Adoption

    Reported on Jul 7, 2025 (After Market Close)
    Pre-Earnings Price$1.01Last close (Aug 1, 2024)
    Post-Earnings Price$1.06Open (Aug 2, 2024)
    Price Change
    $0.05(+4.95%)
    • Strong iQ3 adoption and revenue momentum: Domestic sales saw around 75% of units being iQ3, indicating robust market acceptance and an ASP uplift, which helped drive record quarterly revenue and broad-based consumption.
    • Robust and diversified sales pipeline: The company’s sales funnel is described as having high coverage across multiple channels (e-commerce, inside sales, direct health system deals), providing confidence in sustaining and exceeding forecasted results.
    • Emerging AI ecosystem and scalable partnerships: Initiatives like Butterfly Garden and Powered by Butterfly are set to unlock recurring revenue streams and non-dilutive financing opportunities as partner solutions become commercial, positioning the company for accelerated growth in 2025.
    • Uncertainty in Pipeline Metrics: Executives were not able to provide clear quantitative details on the sales pipeline, leaving future revenue largely uncertain.
    • Delayed Impact of New Licensing Revenue: The contributions from Butterfly Garden and Powered by Butterfly channels were not material in 2024 and are expected to ramp up only in 2025, raising concerns about near-term revenue diversification.
    • Regulatory and RoHS Revocation Risks: The ongoing efforts to overturn the RoHS exemption face uncertainty including potential political and lobbying challenges, which could delay or disrupt market shifts toward Butterfly’s cleaner technology.
    1. iQ3 Launch
      Q: How is iQ3 performing in U.S. & abroad?
      A: Management highlighted that the iQ3 launch is driving strong demand—about 75% of U.S. sales units were the iQ3, and international traction is building with a successful debut in Canada and a scheduled European launch.

    2. Sales Pipeline
      Q: What is the current sales pipeline?
      A: They emphasized a very healthy pipeline that far exceeds forecasts, providing strong confidence in future revenues, though no precise figures were disclosed.

    3. Partnership Revenue
      Q: When will partnership revenue pick up?
      A: Licensing revenue from the Butterfly Garden and Powered by Butterfly programs is modest in 2024 but is expected to accelerate and contribute notably by the end of 2025.

    4. Volume vs. Revenue
      Q: Clarify volume versus revenue growth differences?
      A: Management explained that excluding one-time medical school deals, volume grew around 37% while domestic revenue increased by 25%, reflecting a beneficial mix of higher prices and strong demand.

    5. iQ3 Penetration
      Q: What percentage of sales is iQ3?
      A: Overall, nearly 50% of the total volume was iQ3, with domestically reaching about 75%, underscoring robust product adoption.

    6. AI Integration
      Q: How is AI impacting ultrasound?
      A: AI is seen as a major accelerator in making ultrasound more accessible and effective, enhancing imaging capabilities and broadening the user base significantly.

    7. RoHS Revocation
      Q: What signals the RoHS revocation push?
      A: Management is pushing for a definitive phase-out of piezo-based devices by obtaining a revocation that would set a target date to transition fully to clean CMUT technology, though the exact timeline remains undetermined.

    Research analysts covering Butterfly Network.