Please ensure Javascript is enabled for purposes of website accessibility

Why Butterfly Network Stock Dropped Today

By Evan Niu, CFA - Mar 30, 2021 at 3:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The ultrasound-imaging sensor specialist reported 2020 results.

What happened

Shares of Butterfly Network (BFLY -5.59%) dropped by as much as 14% today after the company reported financial results for 2020. As of 2:15 p.m. EST on Tuesday, the stock had somewhat recovered and was down by only 6%.

So what

Revenue in 2020 increased by 68% to $46.3 million, which resulted in a net loss of $162.7 million, or $27.90 per share. Adjusted EBITDA was a negative $85.2 million for the year. Operating expenses climbed to $100.4 million, and Butterfly said that it focused on conserving cash last year as it explored financing options. The healthcare company, which makes a handheld ultrasound imaging sensor, closed its merger with Longview Acquisition, a special purpose acquisition company (SPAC), in February.

Butterfly Network ultrasound sensor and phone app

A Butterfly Network ultrasound sensor and phone app. Image source: Butterfly Network.

"In the fourth quarter, we introduced the next-generation Butterfly probe, the iQ+, and more upgrades to our proprietary, patented technology platform," Dr. Todd Fruchterman, Butterfly's CEO, said in a statement. "We are excited to see the demand for our comprehensive solution, which helps healthcare providers intercept disease and treat conditions earlier, and we expect will ultimately reduce the total cost of care while improving patient outcomes."

Now what

Butterfly Network finished the year with $60.2 million in cash on the balance sheet, but subsequently received approximately $540 million in cash from the SPAC merger. With that money in hand, the company should be capitalized enough to continue developing its product portfolio and software platform.

The company did not provide formal outlook, but on the conference call with analysts, Fruchterman noted that Butterfly Network was "still defining our longer-term commercial outlook for Butterfly."

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Butterfly Network, Inc. Stock Quote
Butterfly Network, Inc.
$2.87 (-5.59%) $0.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.