Butterfly Network (NYSE:BFLY) shares dropped today on first-quarter results that fell short of sales expectations.
Shares of BFLY dropped 16% to $1.88 apiece in morning trading today. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was relatively flat at the same time.
The Burlington, Massachusetts-based handheld ultrasound technology maker posted a loss of $33.5 million. That comes to -17¢ per share on sales of $15.5 million for the three months ended March 31, 2023.
Losses per share were 4¢ better than expectations on Wall Street. Sales were flat from the prior-year period and fell short of projections, as analysts were expecting $15.8 million in revenues.
Product revenue decreased 20% to $8.8 million, while software and other services revenue increased 45% to $6.6 million.
Operating expenses were down 24% to $44.1 million for the quarter following layoffs in August 2022 and January 2023.
“Being a disrupter is never easy,” President and CEO Joseph DeVivo said in a news release. “It is always hard to predict the timing of customer and market adoption in the face of the massive opportunity it presents. I fully intend to lead Butterfly through this journey and capitalize on this market for our employees and investors.”
DeVivo joined Butterfly Network in April. Butterfly Network Founder Dr. Jonathan Rothberg had been serving as interim CEO since December 2022, when Dr. Todd Fruchterman stepped down as president and CEO.
The company received FDA 510(k) clearance for an update to its Butterfly iQ/iQ+ Ultrasound System. The new feature, an AI-enabled auto B-line counter, is designed to simplify evaluation of adults with suspected diminished lung function.
