Shares of BFLY ticked up 3.8% at $2.44 apiece in midday trading today. MassDevice’s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, dipped 0.7%.
The Burlington, Massachusetts–based handheld ultrasound developer posted losses of $28.7 million, equalling 14¢ per share. Butterfly posted sales of $18.5 million for the three months ended June 30, 2023. It recorded a $7 million bottom-line gain on a sales decline of 3.8%.
Losses per share came in 2¢ ahead of expectations on Wall Street, while sales topped projections of $18 million.
“During the quarter, we conducted a full strategy reevaluation; chose a focused, impactful plan, completed a reorganization to give us time to fund the plan, and implemented growth initiatives for all phases of our business,” said Joe DeVivo, Butterfly Network’s new president and CEO. “I believe getting back to basics with a smaller team, focusing on our strengths, and leveraging what only we can do to add value to healthcare will bring the bounce back in our step and return the company to growth. Stakeholders need a healthy and successful Butterfly. Investors deserve better performance. Employees deserve stability and a place to grow and achieve. That’s exactly what we will do.”
Butterfly Network expects revenues totaling at least $64 million in 2023. It projects adjusted EBITDA losses of between $80 million and $75 million. This reflects conservative assumptions and results of the companies now-completed reorganization effort.
Butterfly Network announces new AI marketplace
In addition to the company’s quarterly earnings, Butterfly provided an update on a new offering.
The company released a new software development kit (SDK) for use by third parties. AI software developers, medical device companies building ultrasound into their platforms and telemedicine companies can leverage the SDK. It allows developers to utilize Butterfly’s platform to build custom applications for commercialization into Butterfly’s customer base.
Ultimately, Butterfly Network intends to open “Butterfly Garden,” an AI marketplace. The company expects it to host new apps for users to discover and purchase the latest AI capabilities.
“As a technology-enabled software company, we’re committed to supporting mass access to AI solutions,” said DeVivo. “Opening our SDK and launching Butterfly Garden demonstrates this priority by creating an easy pathway for third parties to develop new AI tools with our platform, access larger audiences through our leading installed base, and ultimately drive more value for our mutual customers. We have a SDK and API roadmap that will continue to bring additional capabilities to outside developers, so together we build a rich ecosystem of imaging AI.”
Butterfly expects the SDK to improve ease of use, expand care settings to new clinical environments and build learner and student competency. It could also integrate ultrasound into new modalities, including robotics.
“Our aim with Butterfly Garden is to create the premier destination for hosting new and exciting AI innovation in imaging,” said Darius Shahida, chief strategy & business development officer, Butterfly Network. “With this marketplace, we open the gates to easier distribution and scaling of AI solutions from developers who share our vision for bringing impactful technology to all of our customers, and ultimately, to patients worldwide.”
