Ultrasound-maker Butterfly Network seeks to raise $76M through public stock offering
Ultrasound device-maker Butterfly Network is seeking to raise nearly $76 million through a public stock offering, the company reported recently.
Based in Burlington, Massachusetts, Butterfly offers a handheld, single-probe, whole-body scanner for under $4,000. The publicly traded firm offered up 24 million shares of its common stock at a price of $3.15 apiece.
Leaders said they’d use the proceeds to fund the development of new and existing products, along with other “general corporate purposes.”
“We are helping streamline and optimize deployment of ultrasound at scale across hospital systems with our Compass software that integrates into health system infrastructures, and connects across all departments and specialties, including nursing,” Butterfly said in a prospectus filed with the U.S. Securities and Exchange Commission Jan. 29. “We envision a future where Butterfly’s imaging technology is fully integrated into hospital-at-home workflows, improving remote monitoring and management of patients’ health conditions from the comfort of their homes.”
The company currently offers two different models of its ultrasound product. Both use digital semiconductor technology and are “priced competitively compared to incumbent, piezoelectric crystal-based ultrasound handhelds and carts.” They each also allow providers to access over 20 anatomical presets, six imaging modes and a suite of AI and other calculation tools via a mobile interface. Software is designed to make the product easy to use, is fully integrated with the clinical workflow and accessible via smartphone or table.
Butterfly noted that its strategy is to harvest growth from existing integrated accounts. It now has more than 130 enterprise software customers, almost 60% of which have integrated its products directly into EMRs. Between 2022 and the end of 2024, Butterfly saw 50% growth in total enterprise software annual recurring revenue. And its cloud database has over 25 million images, growing at a rate of 20,000 annually. The company recorded year-over-year revenue growth of about 35% in Q4 of 2024, with a cash balance of $92.8 million.
Butterfly’s stock was up about 13% late Wednesday, trading at $4.50 a share. The company said it expected to close the public offering Jan. 31 but had not yet issued an update on Feb. 5 and did not immediately respond to a request for comment Wednesday.
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.