Form 4: Butterfly Network CEO Joseph DeVivo Reports Changes in Beneficial Ownership

CEO Joseph DeVivo reports acquisition of shares through restricted stock units and disposition of shares to cover tax obligations.

Summary

• On March 1, 2025, Joseph DeVivo, CEO of Butterfly Network, acquired 1,185,526 shares of Class A Common Stock through restricted stock units (RSUs).
• These RSUs vest in three equal annual installments following March 1, 2025.
• The report also includes 28,835 shares acquired under the Issuer's employee stock purchase plan on December 31, 2024.
• On March 3, 2025, 443,711 shares were disposed of to cover tax withholding obligations related to the vesting of RSUs granted on March 6, 2024, at a price of $3.03 per share.
• Following these transactions, DeVivo beneficially owns 7,570,004 shares of Class A Common Stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the filing primarily reflects routine transactions related to executive compensation and tax obligations. The acquisition of shares through RSUs is a positive sign, but the disposition to cover taxes offsets some of that positivity.

Positives

• The acquisition of shares through RSUs indicates confidence in the company's future performance.
• Participation in the employee stock purchase plan further demonstrates alignment with the company's success.

Negatives

• The disposition of shares to cover tax obligations, while routine, reduces the overall shareholding.

Risks

• The vesting of RSUs is contingent upon continued service, creating a potential risk if the Reporting Person's service is terminated.

Future Outlook

The RSUs vest in three equal annual installments following March 1, 2025, subject to continued service.

Industry Context

Form 4 filings are a standard part of regulatory compliance for company insiders and provide transparency into their transactions in the company's stock.

Comparison to Industry Standards

• Form 4 filings are standard practice across all publicly listed companies, including competitors in the medical device and imaging technology sectors.
• The vesting schedules and tax withholding practices are generally consistent with industry norms for executive compensation.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the change in the CEO's holdings.
• Employees participating in the stock purchase plan benefit from the opportunity to acquire company shares.

Key Dates