Butterfly Network, the handheld ultrasound system maker, experienced a 3.8% Q2 revenue drop in 2023. The company reported $18.5 million in revenue with a $28.7 million net loss and operating expenses of $42.2 million. The reorganization plan, led by CEO Joseph M. DeVivo, aims to reduce costs, extend cash runway, and invest in growth initiatives. Butterfly will launch Butterfly iQ3 and offer AI developers access to their software development kits and APIs. They also plan to expand courses through Butterfly Academy.
Butterfly Network, the company behind a handheld, smartphone-connected ultrasound system, recently revealed a reorganization plan in response to a 3.8% decline in revenue during the second quarter of 2023. Their Q2 revenue was $18.5 million, down from $19.2 million in the same period last year. Additionally, they reported a net loss of $28.7 million, an improvement from the $35.8 million loss in Q2 2022.
Although there was a 21% increase in total U.S. sales, reaching $14.3 million, driven by higher subscription revenue and average selling prices, international sales dropped significantly by 44% to $3.3 million. The gross profit for Q2 remained relatively stable at $10.9 million compared to $10.6 million in the previous year.
To address these challenges and enhance financial performance, Butterfly Network underwent a strategic review under the leadership of their new CEO, Joseph M. DeVivo, who took office in April, replacing interim CEO Jonathan Rothberg, founder, and chairman of the board. The previous CEO, Dr. Todd Fruchterman, had stepped down in December.
As part of the reorganization plan, the company aimed to extend its cash runway, reduce operating expenses, and invest in growth initiatives and the commercial organization. Through these efforts, they achieved a significant reduction in operating expenses by an average of $2 million per month, helping to improve their financial position.
Looking ahead, Butterfly Network has exciting plans, including the launch of its third-generation probe, the Butterfly iQ3, scheduled for next year. They also intend to offer access to their software development kits and APIs for AI-powered ultrasound developers, enabling integration of their applications into Butterfly’s imaging platform and compatibility with Butterfly iQ+ probes. Additionally, Butterfly Academy will soon offer new courses, expanding their offerings in foundational ultrasound education.
By focusing on their strengths and adding value to healthcare through their innovative technologies, Butterfly Network aims to bounce back and resume growth under the guidance of their new CEO.
