BFLY - Butterfly stock dives 20% as revenue outlook slashed amid labor woes

Butterfly Network ( NYSE: BFLY ) stock fell ~20% on Thursday after Q3 revenue missed estimates and the company cut its FY22 outlook.

Net loss and comprehensive loss widened to -$54.74M, compared to -$13.56M in Q3 2021.

Total revenue grew +34.2% Y/Y to $19.62M,  but missed estimates ( Consensus Revenue Estimates from 2 analysts was $21.40M).

"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," said Butterfly's President and CEO Todd Fruchterman.

Adjusted EBITDA was -$32.91M, compared to -$33.54M in Q3 2021.

Outlook :

The company reduced its FY22 revenue outlook to be in the range of $73M to $76M ( prior forecast provided during Q2 results $83M to $88M) consensus $83.25M (2 analysts).

Butterfly said labor constraints in Q3 and associated budget pressures from temporary labor costs has limited client-side implementation capabilities and caused deferrals in adoption of medical technology more broadly.

The company does not expect this to immediately reverse in Q4, and along with its change in sales leadership, led it to revise its guidance.

Butterfly reiterated its adjusted EBITDA guidance in the range of -$155M to -$145M.

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