Butterfly Network (BFLY)? Prospects and Future Stock Outlook

This site is a great place for me (@mifsee(2) has been working on company and stock analysis while learning privately.

This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

The convergence of healthcare and AI is one of the hottest topics of the moment, and many stocks have potential for the future.

Among them, Butterfly Network (BFLY) is using innovative technology to revolutionize the way healthcare is delivered by offering portable ultrasound machines.

In this section, we will take a deeper look at this company's business, what differentiates it from its competitors, and its future prospects.

In fact, I myself have tried this stock many times but have suffered losses, but now that sales growth has been observed, I am looking forward to future moves.

What is Butterfly Network (BFLY) and what kind of business does it do?

• Butterfly Network, Inc. is an innovative technology company specializing in the medical field.Developer and provider of the Butterfly iQ, a portable ultrasound device
• This is a portable device that can be connected to a smartphone or tablet,It is unique in that it provides technology that enables easy ultrasound diagnosis regardless of location.
• The company offers solutions that break through the expensive image of medical equipment and can be easily introduced to more medical facilities.
• The company's business consists of two main pillars: development of diagnostic ultrasound devices and subscription-based diagnostic software.The device itself is low-cost, but establishes a long-term revenue model through subscriptions to AI-powered diagnostic software.
• especiallyStrengths in meeting telemedicine needs in regions and developing countries where medical resources are scarceand is regarded as highly promising.
• Furthermore, the company utilizes AI technology to improve diagnostic accuracy and promote efficiency in the medical field. In particular, the company is rapidly expanding its share in the conventional ultrasound equipment market as a low-cost, highly portable, and highly functional solution.
• The company's vision is focused on improving equality of access to healthcare and making quality diagnoses possible anywhere in the world.

Butterfly Network's corporate information is below.

• Company NameButterfly Network, Inc. 
• Date of Establishment: 2011
• Name of RepresentativeJonathan Rothberg : Jonathan Rothberg
• Official Site: https://www.butterflynetwork.com
• Main Businesses: Development and sales of portable ultrasound equipment and related software.

What are the main products of the Butterfly Network (BFLY)?

Butterfly Network, Inc.'s (Butterfly Network, Inc.) main products are,Butterfly iQ, a portable ultrasound system.
This product, which connects to a smartphone or tablet, replaces conventional expensive and large ultrasound equipment and provides technology that allows users to perform ultrasound diagnostics anywhere with ease.

Source:. https://www.butterflynetwork.com/iq3

The Butterfly iQ is particularly recommended for use in remote medical areas and developing countries, where it has strengths as a diagnostic device in areas with limited access to healthcare.
It is also extremely useful in emergency situations where rapid diagnosis is required, and has attracted widespread attention for its convenience.

What is the technology behind the Butterfly iQ portable ultrasound device and what are its features?

The Butterfly iQ portable ultrasound device uses technology that is very different from conventional ultrasound equipment.
Below are its main technologies and features.

Single probe design 

What are the most important technical features of the Butterfly iQ?The fact that a single probe can replace the multiple probes (devices that transmit and receive sound waves) required by conventional ultrasound equipment.
This is a new type of "CMUT (Capacitive Micromachined Ultrasound Transducer)".Ultrasonic Transducer TechnologyThis is realized by

Compared to conventional probes using piezoelectric elements, this technology can be commercialized in a smaller size and at a lower cost, making it suitable for a wide range of applications.

Smartphone connectivity 

Butterfly iQ can be connected to iOS and Android devices, eliminating the need for dedicated large equipment and monitors.Diagnostic images can be viewed in real time through mobile devices, allowing medical professionals to quickly perform ultrasound examinations and confirm diagnostic results on the spot.

AI-based diagnostic support 

Butterfly iQ incorporates artificial intelligence (AI) to analyze and automatically process diagnostic images.AI improves image quality and helps physicians make more accurate diagnoses.

AI technology is expected to have the effect of improving diagnostic accuracy independent of the skills of healthcare professionals, increasing the consistency and efficiency of diagnosis.

Cloud integration and data management

Diagnostic images are stored in the cloud, facilitating data sharing and analysis.
It is also possible for specialists in remote locations to participate in the diagnosis in real time,An environment will be created that promotes the efficiency of telemedicine and team medicine.

Portability and low cost 

The major advantages of the Butterfly iQ are its portability and low cost. Conventional ultrasound equipment is expensive and takes up a lot of space, making it difficult to install.
However, the Butterfly iQ, due to its portability and competitive price,The appeal of this system is that it can be introduced into any medical practice.

Subscription-based business model 

Butterfly iQ, in addition to selling the product itself,Subscription model for diagnostic software.
By paying a monthly fee, the client always has access to the latest diagnostic technology and software features. This model enhances both hardware and software and creates a stable revenue-generating business foundation.

With these technologies and features, the Butterfly iQ is expected to replace conventional large and expensive medical devices and improve access to healthcare worldwide.
Its potential is especially great in providing medical assistance in developing countries and areas with limited resources.

What is the business model of Butterfly Network (BFLY)?

Butterfly's business model consists primarily of a hybrid of product sales and subscription revenue.

Hardware Sales

Sales of its flagship product, the Butterfly iQ portable diagnostic ultrasound system, is one of the main pillars of earnings.
Offered at low cost, they are used in a variety of medical settings, including medical institutions, clinics, and private physicians.

This device is,It has gained wide market acceptance because of its overwhelming portability and affordability compared to conventional ultrasound equipment.

subscription model

In addition to purchasing hardware, the company alsoIt offers subscription services as an ongoing source of revenue.
To use Butterfly iQ, AI-based image analysis and diagnosis is performed via a dedicated app, but there is a monthly fee to use the software.

This subscription provides ongoing support and updates to customers and is a means of ensuring a steady revenue stream for the company.

Software updates and data management

Subscription services include diagnostic imaging data management and access to cloud-based systems.
Users can securely store their data and access it from anywhere.

In addition, a system is in place that facilitates data sharing with physicians and medical teams, thereby increasing diagnostic efficiency.

Value-added services using AI technology

The company's products incorporate AI technology to improve diagnostic accuracy and provide automatic image analysis capabilities.
The value of the product is further enhanced by the use of AI, which allows physicians to quickly make a diagnosis and provide appropriate treatment to patients.

This innovation is a factor that increases customer retention as a strength of subscription services.

Global Expansion and Regional Strategies

In developing countries and resource-limited healthcare environments, the Butterfly iQ is increasingly in demand as a low-cost tool to improve healthcare quality.
It is expected to be deployed especially in telemedicine markets and under-resourced areas.

With this business model, Butterfly Network has positioned itself as not just a hardware manufacturer, but as a provider of a platform for the entire medical technology.

What market needs does the Butterfly iQ address?

Butterfly iQ is specifically designed to meet the following market needs

• Needs in resource-limited healthcare settings: The Butterfly iQ is a low-cost, portable ultrasound device that meets a great need for developing countries, rural health care facilities, and medical practices with limited resources.
  In these areas, it is difficult to install conventional, expensive medical equipment, and there is a high demand for medical equipment that is simple and portable.
  The Butterfly iQ, with its small, lightweight design and relatively affordable price, will improve diagnostic capabilities in these areas.
• Expansion of telemedicine: The telemedicine market is growing rapidly, especially since the pandemic, and portable ultrasound devices such as the Butterfly iQ are seen as tools that can dramatically improve the speed and efficiency of diagnosis.
  Cloud-based systems that allow remote diagnosis and immediate sharing of diagnostic results by physicians in remote locations are enabling faster and more accurate care to be provided to more patients.
• Demand in Emergency Medicine: In emergency medicine, where diagnosis must be made quickly, the Butterfly iQ offers a significant advantage because it is portable and can be used anywhere.
  In particular, it can be used in environments where it is difficult to bring in conventional large ultrasonic equipment, such as inside ambulances, disaster sites, and battlefields.
• Medical institutions looking to reduce costs and improve efficiency: The Butterfly iQ is priced significantly lower than conventional ultrasound equipment, making it an attractive option for medical institutions looking to reduce costs.
  In addition, AI-based diagnostic assistance functions allow physicians to make diagnoses more accurately and efficiently, thereby contributing to the efficiency of medical care.
• Diagnostic support by AI technology: Image analysis using AI technology to provide diagnostic assistance to physicians not only improves the accuracy of diagnosis, but also provides high quality diagnosis in areas with limited medical staff or where they do not have sufficient skills.

How different is the price and installation cost of the Butterfly iQ from that of a standard ultrasound machine?

• Installation cost General ultrasound systems are usually in the expensive price range of 10 million yen or more, depending on the model.
  In contrast,The Butterfly iQ3 (3rd generation) can be purchased for approximately $3,899 (about 540,000 yen), which is a much lower cost to install.
  This is especially beneficial for medical institutions with limited budgets, rural clinics, and medical assistance in developing countries.
• 2Maintenance and operating costs:.Typical ultrasonic equipment requires periodic maintenance and replacement of consumables, which is expensive to maintain.
  Costs related to installation (e.g., securing dedicated space and installation work) may also be involved.
  In contrast,Butterfly iQ is portable and requires no installation costs, so these additional costs are negligible.It also uses a subscription model, which allows users to keep up with the latest software and AI technology for a monthly fee.
• Installation hurdles:.Conventional ultrasound equipment is complicated to install because of its price, installation space, and the need for expert technicians to operate it.
  However, Butterfly iQ is easy to operate and requires no special technical training, which is another factor that lowers the hurdle to adoption.

What is the trading market?

Butterfly Network, Inc. shares are listed on the New York Stock Exchange (NYSE) and trade under the ticker symbol "BFLY".

The firm went public in 2021 through a special purpose acquisition company (SPAC).

What are the sectors, industries, and themes to which Butterfly Network (BFLY) belongs?

sector

Healthcare:.Butterfly Network belongs to the healthcare sector. Its flagship product, the Butterfly iQ, is a portable ultrasound device that is revolutionizing the medical field.
The sector requires improved patient access and diagnostic accuracy, and the Butterfly Network offers products to meet this demand.

type of industry

Medical Devices:. Butterfly Network is classified in the medical devices industry.
The Butterfly iQ ultrasound device is a low-cost, portable medical device, especially in the fields of emergency medicine and telemedicine.
Diagnostic assistance using AI technology provides a higher level of convenience than conventional large ultrasound equipment.

Themes belonging to

Digital Health and AI Diagnostic Technology:.Butterfly Network is integrating digital health and AI technologies to streamline the diagnostic process in the medical field.
In particular, diagnostic assistance through AI-based ultrasound image analysis enables rapid and highly accurate medical care provision even in remote areas and developing countries.

Dividends?

Butterfly Network, Inc. does not pay dividends.
The company is a fast-growing medical technology company whose current business strategy is focused on reinvesting earnings, so it focuses on technology development and market expansion without paying dividends.

What is the size and growth potential of the industry to which Butterfly Network (BFLY) belongs?

Butterfly Network (BFLY) belongs to the medical equipment market, particularly in the fields of "ultrasound systems," "digital health," and "AI-based medical diagnostics.
The size and growth potential of this industry is considered very high.

Size of the diagnostic ultrasound equipment market

The global ultrasound equipment market is worth approximately $7.5 billion in 2022It is considered to be a
This market is expected to continue to grow steadily, with technological innovation and demand for low-cost equipment in particular being the main drivers of growth.

From 2022 to 2027, the compound annual growth rate (CAGR) is projected to be around 61 TP3T.
This growth is particularly driven by the increasing adoption of portable devices and AI technology.

Growth potential of the digital health and AI diagnostics market

In the overall digital health market, AI-based diagnostic technologies are rapidly gaining traction, and their market size is expected to reach approximately $50 billion by 2023.
In particular, AI-automated diagnostic support tools are in increasing demand from medical institutions and government agencies in many countries to provide efficient and accurate medical care.
This sector is expected to continue to grow rapidly, with annual growth rates exceeding 301 TP3T.

growth driver

• Need for low-cost equipmentThe demand for low-cost portable ultrasound equipment is growing rapidly, especially in developing countries and in telemedicine.
• aging society: As the global population ages, the need for non-invasive and efficient diagnostic tools is increasing.
• Evolution of AI Technology: The accuracy of AI-based medical diagnostics is improving, and this is a major factor in the market's expansion.

Butterfly Network aims to firmly ride the growth of the industry and expand its market share in the future by providing advanced technology in these growth areas.

Who are the competitors of Butterfly Network (BFLY)?

Butterfly Network's (BFLY) main competitors are.

• Philips [PHG]:.Philips is a global healthcare technology company that also focuses on the development of ultrasound systems in the field of medical equipment.
  In particular, the company's EPIQ series and other products are widely used by medical institutions and are highly regarded for their advanced image analysis capabilities and diagnostic accuracy. Like Butterfly Network, the company promotes the digitization of medical care and focuses on AI-based diagnostic support.
• GE Healthcare [GEHC]:.GE Healthcare has a long history in the ultrasound equipment market, especially in providing high-quality diagnostic equipment.
  GE's products are targeted at large medical institutions, an area in which it competes with the portable ultrasound equipment offered by Butterfly Network. The two companies are also similar in that they have introduced diagnostic support systems that use AI technology.
• Siemens Healthcare [SIEGY]:.Siemens Healthcare is a leading German-based medical device company with a wide range of products in the field of diagnostic ultrasound equipment.
  In particular, the company's Acuson series is capable of highly accurate diagnosis and is used in many medical facilities. Like Butterfly Network, the company aims to improve the efficiency of medical diagnosis by utilizing AI and digitalization.
• hitachi medical [6501]:.The medical division of Hitachi, Ltd. also provides diagnostic ultrasound systems, which are highly regarded in Japan and abroad.
  In particular, it offers high-performance diagnostic imaging systems and has strengths in certain practice areas. Although this is an area in which it competes with Butterfly Network, the two companies have different target markets in some areas.
• FUJIFILM [FUJIF]:: FujifilmFujifilm is a world leader in diagnostic imaging technology and medical equipment, including portable ultrasound systems.
  In particular, many of the products utilize digital imaging technology and compete in the field to which Butterfly Network belongs.

What are Butterfly Network's (BFLY) differentiators and advantages over the competition?

The Butterfly Network (BFLY) has several key differentiators and advantages over competing firms. Below are the main elements.

Portability and low cost 

The Butterfly iQ's major strength is its portability as a diagnostic ultrasound device.
While ultrasound equipment from other major companies (e.g., Philips and GE) is typically large and fixed, the Butterfly iQ can be connected to a smartphone or tablet, making it ideal for rapid diagnosis in the clinic, emergency medicine, and home visits.
In terms of cost, it is also much less expensive than conventional ultrasound equipment, making it easy to introduce at a wide range of medical institutions.

Diagnostic support by AI technology 

Butterfly iQ provides diagnostic assistance using AI technology,Excellent in terms of improving diagnostic accuracy.
This technology enables healthcare professionals to analyze ultrasound images quickly and accurately, providing high-quality medical services, especially in regions and remote areas where medical knowledge is inadequate.
This is a significant advantage over competing products.

subscription model

 Butterfly iQ's subscription model ensures that customers always have access to the latest AI technology and diagnostic capabilities.
While traditional ultrasound equipment from Philips, GE, and others is purchased in bulk, Butterfly's subscription model ensures ongoing revenue and customer satisfaction by providing service updates and enhancements.
This structure is an important element of the company's competitive advantage over the long term.

Improved access and market expansion 

The Butterfly Network is particularly focused on improving access to developing countries and areas with limited healthcare resources.
The company differentiates itself from competing products in that it can be easily used in areas where expensive medical equipment could not be installed in the past.
Although expensive equipment from Philips and Siemens is highly functional, its introduction is often limited by its price and installation space.

Overall, the differentiating factors of the Butterfly Network improve access to healthcare, especially in remote and developing countries, making it more competitive in the marketplace.

What is Butterfly Network's (BFLY) growth strategy?

Butterfly Network, Inc.'s growth strategy revolves around innovation, product expansion, and market diversification.
Specific elements of the strategy are as follows

Strengthening of product lineup and technological innovation

Butterfly Network aims to expand its presence in the medical device market by enhancing the functionality of its flagship product, Butterfly iQ, and developing new products.
Particularly,AI is being used to enhance diagnostic support functions, as well as to reduce weight and increase multifunctionality.
It also continuously provides its customers with the latest diagnostic technology, thereby increasing its usefulness in the medical field.

Expansion of subscription business model

As part of the company's growth strategy, the subscription-based business model is intended to stabilize revenues over time and build a revenue structure that is not solely dependent on product sales.

Expansion into global markets

The Butterfly Network uses portability and low cost to expand access to areas that have previously been unable to install expensive medical equipment. It is opening up new markets through the diffusion of medical equipment in areas with limited medical resources.

Strengthen Partnerships and Alliances

As part of our growth strategy, partnerships with other healthcare organizations and technology companies play an important role.
In particular, the company aims to improve diagnostic accuracy and expand its market share by collaborating with leading technology companies and medical institutions in the use of AI technology and cloud infrastructure.
These strategies are the basis for accelerating the speed of R&D and providing more competitive products.

Expansion into new medical fields

Beyond its current ultrasound offerings, Butterfly Network is moving forward with plans to expand its products and technologies into other medical fields in the future.
In particular, the company is building a system to address a wide range of medical needs through the development of other AI-based diagnostic tools and remote medical solutions.

With these strategies, Butterfly Network aims to drive innovation in medical technology and expand its market share, especially in markets that require low-cost, high-quality medical devices.

Who is Mr. Kashun, who has joined Butterfly's management board?

Steve Cashman is an experienced health technology leader who joined Butterfly Network as Chief Business Officer (CBO) in 2024.

His role will be to lead global sales, marketing, product development, and corporate strategy. Mr. Cashman has a background leading the commercialization of AI-powered ultrasound platforms and was previouslyCaption HealthHe served as the CEO of He successfully sold the company to GE Healthcare.

Also,InTouch HealthIn his role as Chief Commercial Officer, he facilitated the company's global expansion and growth in the telehealth market.

The addition of Mr. Cashman is expected to further accelerate Butterfly Network's growth strategy.

What is the heart AI application that Butterfly is developing and promoting?

The Cardiac AI Application, which Butterfly Network is promoting to develop, is a medical application that utilizes AI technology to support cardiac imaging diagnosis.
This technology analyzes images of the heart taken by ultrasound equipment in real time to provide diagnostic assistance.

Main Features

• Real-time analysis: Analyzes ultrasound images in real time to help physicians and technicians quickly detect cardiac abnormalities.
• Improved accuracy: Provides more accurate diagnosis than conventional manual analysis through the use of AI. Helps detect heart disease, especially in the early stages.
• simplicity: Even untrained medical professionals can perform ultrasound diagnosis quickly and accurately with the support of AI.

partnership

• Butterfly Network is working with several partners to develop heart AI applications as part of the Butterfly Garden™ program.
  Specifically,DESKi's HeartFocusand ... andUltraSightand other companies to introduce AI technology into cardiac diagnosis, aiming to improve the accuracy and efficiency of diagnosis.
  This cooperation enables the early detection of heart disease in the medical field, further expanding the scope of AI applications and paving the way to improve the quality of medical services.

This technology aims to contribute to the early detection of heart disease and improve the accuracy of diagnosis, enabling faster and more effective treatment.

Butterfly Network (BFLY) Performance

Butterfly Network's (BFLY) financial year ends on December 31.

The schedule for the announcement of quarterly financial results is as follows

• First Quarter Results: Around early May
• Second Quarter Financial Results: Around early August
• Third Quarter Results: Around early November
• Fourth Quarter and Full Year Results: Around early Feb. 

However, since Butterfly Network is a start-up company, we will not analyze its performance here.

Each data is,Investing.com, ,TradingViewSee from

Butterfly Network (BFLY) Stock Price

View the current real-time stock price chart (TradingView) for Butterfly Network (BFLY).

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

What is the future life and stock price outlook for Butterfly Network (BFLY)?

The following factors have a significant impact on the future prospects and stock price outlook for Butterfly Network (BFLY).

Growth of the medical technology market and increasing demand for Butterfly iQ 

Demand for the Butterfly iQ portable ultrasound device is likely to grow, especially in developing countries and in the field of telemedicine; its AI technology-based diagnostic support functions are also expected to see increased adoption in the medical field. The company's long-term growth potential is being evaluated against a backdrop of future technological innovation and improved access to healthcare. This growth is expected to have a positive impact on the stock price.

Stable revenue through subscription model 

The subscription model generates stable cash flow for the company and is one of the factors supporting the stock price. This recurring revenue model has established a long-term revenue base that is not solely dependent on product sales. For investors, this structure provides a sense of security and is a factor that is expected to stabilize the stock price.

Revenue growth and performance improvement 

Butterfly Network reported record sales in the second quarter of 2024, growing 16% year over year.
This growth is based on the success of the Butterfly iQ3 in the market and is expected to improve as demand continues to grow. Improved performance will likely have a positive impact on the stock price.

Short-term outlook for risk and stock prices 

However, the company remains in the red and continues to invest heavily in technology development. As a result, it has been pointed out that stock price volatility (price fluctuation) may increase in the short term. In particular, in the highly competitive medical technology market, delays in technological innovation and declining market share may emerge as risks.

Stock Price Outlook

 Long-term growth potential is high, but short-term depends on deficit elimination and competitive environment.
According to analysts, if future product development and market expansion proceed smoothly, the stock price may show an upward trend. On the other hand, if earnings improvement is slow, the stock price may experience a temporary slump.

In general, the Butterfly Network's share price is expected to rise over the long term on the back of growth in the healthcare market, but is expected to be risky in the short term.

Butterfly Network (BFLY) Q2 2024 Financial Summary

• Net sales: $21.48 million, an increase of 161 TP3T over the same period last year (vs. $18.49 million in the same period last year).
  • Product sales: $14.64 million, an increase of 191 TP3T over the same period last year.
  • Software and other services sales: $6.84 million, an increase of 101 TP3T over the same period last year.
• gross profit: $12.59 million, up from $10.92 million in the same period of the previous year. Gross margin was 58.61 TP3T, slightly down from 59.11 TP3T in the same period last year.
• operating expenses: $29.82 million, down 291 TP3T from $42.18 million in the same period last year. Mainly due to restructuring and cost reductions.
• net loss: $15.7 million, down from $28.67 million in the same period last year.
• Adjusted EBITDA: Loss of $8.13 million, an improvement from the loss of $16.97 million in the same period of the previous year.

Major Initiatives and Results

• international expansion: Launched the Butterfly iQ3 in Canada and newly entered the Southeast Asian market. International sales increased 571 TP3T y/y to reach $5.2M.
• technological innovation: Advances in AI technology and expansion of new partnerships strengthen our leadership in ultrasound, working with three new "Butterfly Garden™" partners (DESKi's HeartFocus, UltraSight, and Southwood Inc.) to advance cardiac AI applications.
• WHO accreditation: "Butterfly iQ+" was recognized by the World Health Organization (WHO) as an innovative medical technology for low-resource environments, enhancing its international credibility.

Future Outlook

• Full Year Sales Forecast: In the range of $75 to $80 million, we expect growth of $151 TP3T to $201 TP3T over the previous year.
• Adjusted EBITDA Guidance: Projected loss of $50 million to $45 million, an improvement over the previous year's loss.

Butterfly Network is showing improvement in both sales and profits, driven by technological innovation and international expansion. Growth is expected especially in AI and new markets, and cost-cutting efforts are also helping to reduce net losses.

Which brokerage firms can I buy shares of Butterfly Network (BFLY)?

The following is a list of major brokerages that offer shares of Butterfly Network (BFLY). At these brokerages, you can choose to invest as a CFD (Contract for Difference) as well as directly as a foreign stock.

I myself mainly use SBI Securities, but some stocks they handle may not be available for purchase. In such cases, I sometimes use CFDs at Saxo Bank Securities or IG Securities.

summary

We have taken a closer look at the Butterfly Network's business, proprietary technology, competitive advantages, and earnings growth.

Through its portable ultrasound equipment, the company seeks to redefine healthcare by bringing medical services to areas that have been hard to reach.

Although the company is currently in the red, it has ample potential to be a game changer in the healthcare sector in the future. Although it is a highly volatile fixed-income stock, we intend to hold it while keeping an eye on its growth potential from a long-term perspective.