Shares of BFLY fell 14.2% at $4.11 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — fell by 3.7%.
The Burlington, Massachusetts-based handheld ultrasound developer posted a net loss of $54.7 million in the quarter. That equals 27¢ per share on sales of $19.6 million for the three months ended Sept. 30, 2022.
Butterfly recorded a massive bottom-line slide deeper into the red despite sales growth of 34.2%.
The company’s losses per share of 27¢ fell 3¢ behind expectations on Wall Street. Sales also missed as analysts projected revenues of $21.4 million.
“This past quarter has been an important one for our learning and trajectory as a young and agile company that is on a mission to enable more informed clinical decisions through access to valuable clinical insights using innovative ultrasound technology, made simple with artificial intelligence,” said Dr. Todd Fruchterman, Butterfly president and CEO. “Our path to transformation at scale is on the right track and while our rate of revenue growth was slower than we anticipated, we are receptive to the learnings in the market and adapting where needed. We are also evolving as a company to bring discipline to both how we generate revenue and manage expense.”
Butterfly revised its full-year guidance to between $73 million and $76 million. Its previous projection fell between $83 million and $88 million. The company attributed this to intensified labor constraints and associated budget pressures from temporary labor costs.