Shares of BFLY were up more than 16% at $5.66 apiece by the close of trading today. MassDevice‘s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up slightly.
The Guilford, Connecticut-based handheld ultrasound technology developer posted losses of $35.8 million, or 18¢ per share, on sales of $19.2 million for the three months ended June 30, 2022, for a large bottom-line slide deeper into the red on sales growth of 16.4%.
Butterfly Network’s losses per share of 18¢ came in 9¢ ahead of expectations on Wall Street, where analysts were looking for sales of $19.1 million.
“This past quarter has been an important one for our progress and trajectory as an organization,” Butterfly CEO Dr. Todd Fruchterman said in a news release. “Not only are we piloting the growth of a truly disruptive technology, we’re also at the heart of our evolution as a young public company – continuing to build upon the changes we made last year in how we operate, innovate and bring value to the healthcare ecosystem.”
Fruchterman added that the company adopted a plan to extend its cash runway that includes “improved efficiencies and targeted reductions in our workforce.” The Form 10-Q that Butterfly Network later filed with the SEC said it plans to reduce its workforce by 10%, incurring $2 million in cash charges in the process. The company had 463 employees at the end of 2021, according to its most recent annual report.
“The talent and mission-driven dedication of our team has made these decisions challenging on a personal level, but I am confident these changes strengthen our position to capture the value of our market-leading innovation and set us up for a future where Butterfly is the standard of care, everywhere,” Fruchterman said.
CFO Heather Getz added during the earnings call that the additional cost savings will provide the company with an extra $3 million per month when fully implemented. “This plan provides greater flexibility for the company to support the realization of the vision and mission of Butterfly through targeted investments, allowing us to continue to build on the commercial organization that will support our revenue growth, as well as invest in R&D to create future revenue streams.”
Butterfly also maintained its projection of full-year revenues between $83 million and $88 million.
It’s been more than a year since the Butterfly Network went public through a merger with a special purpose acquisition company (SPAC). It was one of the first SPAC deals to garner a lot of attention in the medtech space. Another New England medtech company to go public through a SPAC — Boston-based prescription digital therapeutics company Pear Therapeutics — recently announced its own layoffs.
Updated after 5 p.m. Eastern time with layoff numbers. Executive editor Chris Newmarker contributed to this report.