What happened

Shares of Butterfly Network (NYSE:BFLY) 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."

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