Ultrasound maker Butterfly Network’s stock slides after first earnings report, despite revenue surge
Fresh off completing a $1.5 billion merger deal, ultrasound maker Butterfly Network saw its stock slide Monday, despite a 68% year-over-year surge in revenue.
Company officials issued their first earnings report March 29, after debuting on the New York Stock Exchange in February. The Guilford, Connecticut-based imaging firm reported net losses of $162.7 million or -$27.90 per share, compared to $99.7 million the previous year.
Butterfly’s revenue swelled nearly 70% in 2020, up to $46.3 million amid increased sales for its novel ultrasound system. They’re eyeing further growth in 2021 following their merger with an affiliate of hedge fund Glenview Capital Management.
“The completion of our business combination with Longview Acquisition Corp. in February 2021 solidifies the company’s financial foundation for the next stage of its growth,” Butterfly Chief Financial Officer Stephanie Fielding said March 29.
Butterfly did not release financial guidance for 2021. But it did tout several company highlights in recent months that included the hiring of new CEO Todd Fruchterman, MD, PhD, in February and a recent partnership with the American College of Cardiology
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.