Butterfly Network: Time Is Likely Not On Company's Side

Nov. 17, 2022 1:27 PM ETButterfly Network, Inc. (BFLY)2 Comments
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Macrotips Trading
2.16K Followers

Summary

  • Butterfly Network has developed a proprietary handheld ultrasound scanner that is offered at a much lower price point than traditional ultrasound carts.
  • It wants to disrupt the ultrasound market, as well as bring affordable ultrasound to poor countries.
  • Despite a promising technology, adoption of the devices has been lackluster, causing a large quarterly cash burn.

Butterfly Dead at Concrete Floor

Rudimencial/iStock via Getty Images

A few months ago, I wrote a cautious article on Butterfly Network, Inc. (NYSE:BFLY), arguing the company has not delivered the financial performance to justify its valuation.

The latest Q3 earnings report does little to

BFLY flew and crashed back down

Figure 1 - BFLY flew and crashed back down (Author created with price chart from stockcharts.com)

BFLY overview

Figure 2 - BFLY overview (BFLY investor presentation)

BFLY Q3/2022 Financials

Figure 3 - BFLY Q3/2022 Condensed Financials (BFLY Q3/2022 Press Release)

BFLY Q3/2022 Investor Presentation

Figure 4 - BFLY Reduced Guidance (BFLY Q3/2022 Investor Presentation)

BFLY YTD Q3/2022 Cash Flows

Figure 5 - BFLY YTD Q3/2022 Cash Flow Statement (BFLY Q3/2022 Press Release)

This article was written by

Macrotips Trading profile picture
2.16K Followers
I spent 5 years as a co-founder and hedge fund CIO / manager. Before that, I was a hedge fund analyst/portfolio manager at a leading Canadian alternative asset manager. I write articles as part of my own due diligence on the stocks that I find interesting, for one reason or another.Follow me on twitter for my thoughts on macro trends.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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