Butterfly Network, with its transformation complete, seeks new clinical, payer collabs

Doctor holding iphone and iQ ultrasound device
Hand-held ultrasound developer Butterfly Network reported a 68% annual increase in revenues for 2020, ahead of its early 2021 acquisition and NYSE debut. (Butterfly Network)

Wrap a major acquisition? Check. Go public? Check. Bring on a slew of experienced executives and directors, including a new CEO? Check. Next up for Butterfly Network: Expand, expand, expand.

In a March 29 conference call with investors, Todd Fruchterman, Butterfly’s newly instated president and CEO, outlined plans to expand the company in nearly every direction—including in new uses for its portable ultrasound technology, Butterfly iQ+.

“As we broaden our footprint, we will seek to expand the use cases for ultrasound information and thereby increase applications and use in care settings that haven’t traditionally been able to benefit from it,” including in hospital emergency rooms, ambulances and potentially the home, Fruchterman said, according to a transcript from Seeking Alpha.

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Butterfly is also aiming to grow its workforce, forge new collaborations with clinical partners and team up with payers to create incentives for healthcare organizations to adopt the company's technology. 

"At its core, our strategy is to drive increase utilization and adoption of our solution. And this means getting the iQ+ into the hands of the people who can benefit from it in a way that creates immediate long-lasting value," Fruchterman continued. "It starts with getting the hardware in a customer's hand and amplifies through our software that creates an engaging user experience and easily integrates with existing systems, providing additional value when using Butterfly."

In October 2020, the company unveiled the Butterfly iQ+, a whole-body ultrasound device that improved on the image quality, battery life, and durability of the original hand-held imaging probe it introduced in 2018. That device was at the core of the company’s 2020 partnerships with the American College of Cardiology and North Carolina’s Atrium Health, which were formed to expand the use of hand-held ultrasound technology in cardiovascular care and COVID-19 treatment, respectively.

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Butterfly's hunt for growth will be fueled by the approximately $584 million in cash that the company received as part of a recent $1.5 billion deal with Longview Acquisition Corp., a special purpose acquisition company backed by Glenview Capital Management to take its quarry public. The transaction was completed in February, with Longview officially taking on the name and assets of Butterfly, and debuting on the New York Stock Exchange as BFLY.

In its first earnings report since going public, the company revealed a net loss of more than $160 million in 2020, even as it registered gains in product and subscription revenues.

Total annual revenues clocked in at $46.3 million, up 68% from the previous year’s $27.6 million, comprising modest growth in product revenues and a more than 200% increase in subscription revenues. Still, Butterfly Network reported a net loss of $162.7 million in 2020, nearly two-thirds more than 2019’s net loss of $99.7 million.