Why Butterfly Network Stock Dropped Today

Shares of Butterfly Network (NYSE: BFLY) dropped by as much as 14% today after the company reported financial results for 2020. As of 2:15 p.m. EST on Tuesday, the stock had somewhat recovered and was down by only 6%.

Revenue in 2020 increased by 68% to $46.3 million, which resulted in a net loss of $162.7 million, or $27.90 per share. Adjusted EBITDA was a negative $85.2 million for the year. Operating expenses climbed to $100.4 million, and Butterfly said that it focused on conserving cash last year as it explored financing options. The healthcare company, which makes a handheld ultrasound imaging sensor, closed its merger with Longview Acquisition, a special purpose acquisition company (SPAC), in February.

A Butterfly Network ultrasound sensor and phone app. Image source: Butterfly Network.

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Source Fool.com