The Medical Device Business Journal — Medical Device News & Articles | MassDevice
Shares of BFLY rose 12.6% to $2.50 apiece in early-morning trading today.
The Burlington, Massachusetts-based handheld ultrasound technology maker posted losses of $33.7 million. That comes to 17¢ per share on sales of nearly $19 million for the three months ended Dec. 31, 2022.
Losses per share landed 5¢ ahead of expectations on Wall Street. However, sales fell short of projections, as analysts looked for $19.9 million in revenues.
Butterfly Network more than doubled its losses from this time last year. Its sales came in nearly identical to the fourth quarter of 2021. The company said it “tightly managed” expenses during the quarter, recording a monthly cash use of approximately $10 million. That marks a significant decrease from $18 million per month in the first half of the year.
The company expects full-year revenue growth in 2023 to range between the high teens and low 20s, percentage-wise. Butterfly noted that it expects stronger second-half performance in 2023, as first-quarter revenues are likely to come in flat or slightly higher compared to 2022.
Cost-saving actions taken in the third quarter — plus additional efforts last month — should reduce Butterfly’s cash outlay by around $60 million in 2023. That brings expected full-year losses to between $95 million and $85 million.
Last year, Butterfly adopted a plan to extend its cash runway. That included “improved efficiencies and targeted reductions in our workforce.” The company’s 10-Q report stated the reduction totaled 10% of its workforce. CEO Todd Fruchterman then stepped down in December.
Filed Under: Business/Financial News, Health Technology, Imaging, MassDevice Earnings Roundup, Software / IT, Ultrasound, Wall Street Beat Tagged With: Butterfly Network
Sean Whooley is an associate editor who mainly produces work for MassDevice, Medical Design & Outsourcing and Drug Delivery Business News. He received a bachelor's degree in multiplatform journalism from the University of Maryland, College Park. You can connect with him on LinkedIn or email him at swhooley@wtwhmedia.com.
Copyright © 2023 · WTWH Media LLC and its licensors. All rights reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.