BFLY - Earnings call transcript Q4 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to Butterfly Network 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your first speaker today Mike Cavanaugh Investor Relations. you. Thank ahead. go Please

Mike Cavanaugh

the The thank Network joining the released section call. XXXX Chief business Todd Officer December and website at Officer and available will this Chief Financial and year today. afternoon, XX, update. a provided Butterfly Stephanie financial and host on Fruchterman of is ir.butterflynetwork.com. you Network's afternoon currently us for Earlier afternoon's Butterfly ended the company's investor release Network's this Good President results Executive Dr. Fielding, for Butterfly

reminder, These business, financial that during the based in our and potential other are actual change impact may statements. differ statement. of to with number from and risks forward-looking potential contained and the expectations approvals, performance a other statements the involve today's current of As future effects making subject call, assumptions future products on statements regulatory that to a on and These business. expectations certain and information, risks and growth the uncertainties in COVID-XX pandemic of These anticipated potential with regarding looking current we'll forward-looking services, forward are for and impacts respect results things those size include services the products described the made our or the results, Commission. filings materially and Securities of be cause to of financial and statements Exchange on other may our markets of development business combination among are

obligation to the statements to not such do forward-looking statements. and You on disclaims place reliance on were any these update company cautioned

our presentation for by is both them our our between shown referencing website slide and on and webcast, there a download in the remarks. call the the presentation these video telephone the this webcast, access of from in the in for Investor the being delay the visit webcast being reminder, dialed the recorded, section slides be telephone, or with live Section a live and short yourselves. we please best if To Because was events audio conjunction experience the you will please audio a and and use webcasts the content, website. advance As

available the like would I of to over event turn call replay call. will Fruchterman. to be a following the the Additionally, now Dr.

Todd Fruchterman

our and be Thank Network, you, everyone. Butterfly earnings company. discussing call, the and for we for of outlook talented Mike, today's and will On the will excited And an I before the the for we and for grateful am overview XXXX review afternoon, financial term full built lead momentum XXXX good year to results. I'm to I'll call last opportunity incredible provide hosting the conclude longer session. year company the performance team. Then this question-and-answer Stephanie first our

call as call we're a about I I'd earnings first to my public first why our excited being and was this few such words to it. like company, So, Butterfly, as why and we about CEO do what say so attracted a

to wanting healthcare. the scale XX platform day change changes than can last and I joined enable and now that that's more a healthcare driving make because up change For and I've the why we Butterfly about in global wake years. a that and innovation of the passionate in in I lives, on difference have people's been needed every ever technology magnitude.

ability high-performance. portable is. to has ceiling through core XX fundamentally that ultrasound Butterfly years by ultrasound first ago. patient It the introduction breaks the to products of ultrasound affordable, connected, market some is powered a is chip Ultrasound-on-Chip, the of new technological and traditional to limitations enables solution clinical next-generation ultrasound point-of-care wherever handheld Butterfly's imaging since of sensor crystal the go the to come and technology proprietary the the breakthrough universal are Our

software care. higher cloud-based cases with and information outcomes probe that supports handheld imaging our clinicians multiple can This more these many delivers across in equity. a can of beauty Butterfly all in device. to helping use healthcare is advanced to settings. a paired with the The true better and quality And our paired for achieve vital handheld care global the happen their people Butterfly solutions create healthcare workflow improvements, as have as solution applications timely information create solution, We a decision-making. access clinical with clinical anywhere this democratize world, to the around that imaging connected ubiquity support supports This health is for to long mission

Butterfly result our year, the many users to new launch the technology XXXX. by healthcare new to is getting that'd into let's progress are and commercial deploy be work milestone And as This result we users made we to and revenue of significant because the the performance The mission. our great, a our reported for for battery is us and team's enhancements a know improvements company, we that measure as faster is a rapidly less generation us to the develop was head of we a as Last XX% both first-generation our in our of over as based to to demand device, important device, customers. smaller many marketplace. great the applications And allows second listened are our improved expensive the market. towards Now emerge, rate, positive into our has are our types the creating applications, of The capabilities iQ+ and iQ+ we our year to produce, chip technology steps frame platform R&D seeing proprietary achievement Butterfly well new iQ increase iQ many guiding life, October, important XXXX iQ. of launched hands excitement in versus we This interoperability performance reception many different probe of of a longer years for review performance. initial and year, the our Butterfly bringing excited technology. professionals, customers, use cases our of opportunities we technology demonstrating new as rapidly introducing and

ways first ACC, one October, trial This plan example we a for to reliably more As collaboration and awareness, benefits plane December, with with the the organizations for In transform established we announced customers our access technology. the vascular the is nerve allows capability what's of point-of-care. to American of the new during care. the are Butterfly ACC paradigm to place as only our iQ+ jointly of device. cardiovascular limited and in settings. clinical products y partnerships we a conduct our the settings patients leverages continue possible this reach imaging that enhanced a blocks. following ultrasound Butterfly number explore in in accurately of of of with regional differentiated a to scanning our use with Butterfly just resource launch, expect portable But College to XXXX, one the we patient needles global kind can us a technology pushing beginning expand number Cardiology, serve. our health cardiac or expanded at and innovative that we disease, to the care help In focused XXXX, and partnerships cases Also customer further exploring produce in on clinical

fair more groundbreaking team they technologies make because enabled clinicians great are when knows happened in their outline Butterfly now new of Butterfly you technologies clinics. has facilitate that medical are enabled own, customer on few technical weeks We Stock are just aware realize capture A combination Board month toward and Officer. last at It the a Acquisition common Inc as enhanced well-capitalized CEO Corp, and solution delivered that, create Network progress making Stacey and term and equity. global of know engineering medical the supports growth advance model and primed MIT. - of businesses the of that in location lot Class are frontiers powerful investment And hub Butterfly mission I to for how completed further Directors. stock value. Edelman, in revolutionizing value. weeks past of at remotely as Ilara great for before Chief powerful, who to Dr. warrants a is imaging the and and the clinical we our We're already guide on Commercial way become still important at say dimension excited company and company for is health New to Pugh early adds our and great breaking pilot not exciting a our business Elazer of our Ilara businesses to TeleGuidance to outlook the York sonographer Dr. Health experienced eight latest our business to capable global great to edition as Butterfly can we believe is We we longer have a essential with Simultaneously, addition recently, the we and have TeleGuidance with trade This with that deployment particularly scalable journey has robust so Exchange. Longview joining in Board Edelman science large-scale work our remain and we professor and our mid Directors be more by public innovation. able through Butterfly, in the proud iQ+ me larger a a in February, to Butterfly devices our don't leveraging its is make with of going Kenya,

first capability clinical to term which commercial, five our horsepower. leadership that and commercial broaden are those our goals technology innovation still and for both My are Butterfly forward most in compliment coming metrics term and and operational with enhance near our to teams build this look have I goals. goal team, goals. progress My human appropriate outlook our the and and reporting additional of our Given Butterfly to foundational, our will defining regulatory, is longer in we board capital, the months. we developmental strengthen progress towards and inform for and to

is the potential with clinical butterfly. leaders second to our The full partnerships unleash of and broaden

products community, and expect and of centric geography, to adoption to accelerate of to a both based to goal is we value will care our to settings, The continue in is payor And industry innovation. across which drive Butterfly third deliver incentive healthcare. specialty is with is adoption patient leading final care. to of outcomes our the improve partner which believe Fourth align my cost invest commercially to we well

coordination to will and at harness payor these along important commercial societal our five implementation we role ensure believe improve goals, growth in to and is to to here. patient one clinical healthcare. impact, alignment, beginning wellness time. commercial innovation, ability only are optimized Success team, our and play an We foundational a expansion drive has Butterfly possible partnerships, what our

outcomes, we where and and and total an is shifts care. is are care increasing timely, it work delivered on only rapid is emerged not of how especially Our from and cost as urgent, value pandemic. care There focus the based being

We the of into marketplace are than is technology that fortunate we is to and global the a be receive believe U.S. more ready two-thirds point-of-care curriculum of it. delivering Today, to incorporated to schools. medical anxious ultrasound

Additionally, operates on which a to variety core, policy foundation our are This of advanced adoption nearly clinical specialties have that of settings. value in increase regarding now all creates through systems, a means professional our creates getting supports meaningful and amplifies benefit societies strengthens developing lasting utilization from in starts point-of-care the people way standards. providing Butterfly. It our its value. realization enable engaging existing a drive and the and clinical when strategy utilization ultrasound the with is capabilities across of software Butterfly can with hands hardware getting And solution. iQ+ and value the integrates our and that a in easily who this hand that using user into long experience the additional customer's and an immediate At it

we from seek traditionally and expand thereby information to our As benefit for applications able use will footprint, in settings broaden cases been that use we increase care ultrasound the to and haven't it.

will authorization developed and care will continue to developing in systems. earlier to clinicians a transport to the ultimately and the addressing the more settings many opportunity to this can the the of at path to the patient and reducing simple past, right medical hospital helps simplify in in is the health unnecessary The information, than for to costs satisfaction. both with answered forward hospital, with on In key results. a can in problems ER, stethoscope access Decision-making dilemmas in our sharing improving see delays our with for listened way with provide on in used treatment to Butterfly accessible review designed solution more technology an as ultrasound the in clinical a clinical turn Stephanie? information and care be I long-term I the world our make look to revolutionize subject the in patient's to we get information Butterfly a better make two-thirds expect earlier and treatment diagnostic potential more because in the address care to improving outlook clinic, home. be game regulatory help delivery, and appropriate modern is And the on and Stephanie can in know. to the decisions over of year the We throughout now healthcare imaging. and we a you changer progresses. point-of-care call patient's financial

Stephanie Fielding

with increase the XXXX. from XX% revenue XXXX, increase expansion in Total in fulfilled, for the $XX.X year-over-year positive XX%, of introduced XX% is a the full was $X.X October, driver the is which in XXXX. XXXX excitement XXXX million, Units XXX% an XXXX. $XX.X and Todd. XXXX, of for of XXXX were a revenues product the our from is million Subscription XXXX an Todd $X.X year $XX.X is in million million primary reflecting for in were and Product Thank noted which million full XX,XXX which revenue you, in market was compared new from increase revenues continued year which XX,XXX probe million, iQ+, demand earlier, reception were in $XX.X growing in international

XXXX, mix, subscription device increased recognized X.X% year eight renewals XX.X% sales. which the define percentage in Subscription as subscription-based XXXX sales, prior that in reporting point revenues a period percentage as is our total with well increase. Our revenue as with compared in was with we on of an

totaling product to expenses. million XXX% million, of was was $XX.X XXXX million, Turning revenues $XXX.X $XX.X a The for revenue cost The million XXX% of million $XXX.X from increase in increase XXXX. of revenue XXXX. of subscription from XXXX. million included increasing in cost in an revenue XX% Cost charges in this $X.X was And from year. $XX.X $XXX,XXX the cost of increase non-recurring

from device vendors, commitments the recognizing third-party on As inventory XXXX, we $X second production loss purchase the the of half shifted million $X.X on inventory commitments a in certain loss some write and iQ+ downs. iQ we renegotiated a to with million

for process Longview merger We award and forecast TSMC. long-term both a announcement of this of represents revenue production iQ+, production a in at teams strategic million at the in economics a we $XX.X tremendous outcomes the our excess materialized forecast quarter, third early Butterfly partner, commenced material of were of and partnership fairly our to of consistent represents with Additionally, in reserve merger and Butterfly demand November, of through the ability we in the commitments. range future development the with shift development this TSMC. against transition inventory negotiated successful The undertook with our accomplishment should the with an generation shared position inventory the sales meet analysis. purchase the Butterfly Concurrent time non-cash inventory provides reasonable This resulted review a and establishment periods. believe

increase conservative $XXX.X million operations financing. $XX.X Importantly, administrative press negative and $XXX.X million, longer filings. million, while shortages, these note we release charges $XX.X to loss XXXX lines. negative that from including are compared were XXXX. of in net can for Cost development, research $XX.X XXXX chip to in net with one-time conserving in a compared we as $XX as increase due was was in pleased was Adjusted million business XXXX. supply of in combination, an operational EBITDA negative and The marketing gross profit was for in to million compared term during million increased incurred or reconciliation year Inclusive the loss environment EBITDA where $XXX.X and in today's negative spec with gross net in $XXX.X from found and of would during a million XXXX of our to million calculation XXXX, XX% XXXX to completing Operating work loss increase we to million. general XXXX. million profit there compared Adjusted business enjoy and clear costs reported to deliberately GAAP are I spending expenses spending was costs. and XX% $XX.X secure be growing cash an the primarily were $XX widespread sales, XXXX

balance Moving we adequate sheet. XXXX, long-term. of liquidity on Throughout support and capital much to the the the having business to near and focused resources over

As of December were XXst, million. cash $XX.X and cash equivalent

sheet. the Acquisition strengthened we Although, at you combination On would it next to of call we was in the million sheet to business support end business We are the over Longview significantly believe I and occurred of combination turn headcount balance and time in to point Longview, following aggressively to our XXth, adoption invest expand with the utility. subsequent to position the added to with cash development well to like the upon stage as a now capitalized Butterfly of Butterfly's is this XXXX, balance February in over know, Corp. back $XXX the Todd. closing

Todd Fruchterman

all opportunity as Thank away and a Butterfly's a our and team XXXX better you, you in Butterfly public of of participating a the company, you excitement for thank in for with Network. hope understanding earnings our come sense have the accomplishment about for We Stephanie, company. first call

many in affordable informed the healthcare provide will broader accessible we by ultrasound information necessary in by to growth to the believe and able delivering disruptive, our for our We our believe clinical truly solution use and supported that is more cases point-of-care practiced physical technology healthcare way information ultrasound foundation Butterfly new location. can change result to trends. unlimited stage next providers, value make information We well real by decisions and place earlier, talent have and a in unique, evolution the the as of and sector, healthcare drive for is that for societal fundamental as

growing for an life butterfly's now the look of vibrant a our turn I call and update public you, with I and forward as is organization questions. excellent in this will Our to company. for position stage next over

Operator

question line [Operator from open. Matt comes Taylor, your Taylor Instructions] from is First Matt UBS.

Matt Taylor

could add-ons, us how talk able new Thanks from thing pieces, And taking kind ride question. is maybe a on some the expect about Plus Sorry. in regular that? was you be of new this that could features, you future of I give the should you're hand kind of to cadence bit launch of on to was hoping we the and and for mute. going long for? I kind product you a perspective the little new launch

Todd Fruchterman

So, for Matt, question. the thanks

of So, that one new core having to in we Ultrasound-on-Chip features ability and the to one fundamentals the the things benefits -- product. of bring is have our

So, add a would years we to those life And to within technology couple over an of we so, benefit period, of And then think you technology. cycle able semiconductor that a our we've really would that appropriate have we of cadence periods, of and or capability major that introducing based the functionality would off having time of new it. every be upgrades. platform we that's the can about have over a technology ultrasound do fundamental

And seen so would I with that cadence you've and iQ+. that's that really, the you think have,

were bring iQ+ and some added we added we we benefits to So were it. the out, -- able to features

them, our a closely and the customers it's going that's in our with biplane we work platform. add and what of to advantage aligned the was really approach have us a addition saw gave understand more be our capabilities nice users and to really And to and to product as technology we You the problems users. roadmap, to our which the really

Matt Taylor

you the about, the size enrollment, just color the bit talked study partnership, exciting. follow-up And to ask that. or on on help Great. the I understand little Thanks. what a of Thanks sounds wanted of for give us the some anything the endpoints it pretty us that, better? some that Can ACC you that to

Todd Fruchterman

them we're the -- ACC that planning So now. collaborations in stages, part when its planning right with in and early the of the

we this as as you inform will that develops, study So, materializes.

starting if be a managing And type things with how settings, that's going on to One in which we of those these broad start exciting we're start chronic failure, conditions to looking populations impact some having we're now that in congestive of now to you see people ultrasound the to point-of-care opportunity an the And we is areas -- are how that the of be used is chronic have really settings. think condition. studies looking And of we're more of create a of I becomes variety of focusing at. in health in the in care that large care different at heart managing right types the ACC.

Matt Taylor

you. Thank Great.

Operator

from question from next Josh comes Jennings Your Cowen.

Josh Jennings

on the your the e-commerce about up, of that about Good Hi. growth in go-to-market are talking and terms force building that I strong channel sales rapidly provide about in you how here the helpful. to historic and afternoon. wanted out guys versus you ask Congratulations XXXX. channel, strategies enterprise anything just be you're emphasizing of can thinking scaling would

Todd Fruchterman

Yeah.

strong at So our our the business -- in And Salesforce taking total we there. an the look things only me the the the a as have We that CEO device, Butterfly, have is in one expansion we solution is ultrasound that for we're as unique our thanks for definitely There's is in for a challenge a Butterfly to but area demand new and opportunities right of excited right is model. to that opportunities all track enterprise now on coming question. about. enterprise now not and absolutely

advantage of We opportunity in the continue expansion to help -- we're up that take usability to And deployment also to enterprise. the on we're solution. help enterprise. of success us to to lining drive focused customer and We're continuing

the -- lot information. the and enterprise of Butterfly see to in but out the we So, ultrasound, solution the the point-of-care using across ability get maximum opportunities also channel, our ability value deploy not enterprise a to just of

Josh Jennings

can about quality just Butterfly to iQ very details. And quality. iQ+, just -- that where around been just question, here about curious adoption on was it here? where from sits image Butterfly last where two go. having launched positive you're improve early thanks for essential And Well, quality, with some roadmap and Butterfly thinking it from and this that image realize Excellent. clearly you it mean, very And those go strong, adopters image I trends ask the hate today I but the to is for have years. strictly our you for checks I

clear question of the chips sits then, Just one, anything And one you about one sneak you. shortage, share on you bounce as Thanks Butterfly the coming have chip sorry there shortage. well to but off to in that line can of where questions. in [indiscernible] a supply, so last global wanted the and but taking midst global the of this for much just

Todd Fruchterman

So, the one. first I'll the I'll take one. Stephanie take let second

advantages technology we improve of is that capabilities our the to our on it. One continue on can of

So able we the device, based and in device, performance a not enhance enhance semiconductor we're capabilities the can the usability we the only technology -- of of as can platform. technology

decision, solid think image very absolutely binary to allows the that now, Right decision have and I that's decision-making. at capabilities our the we our with required binary So time point-of-care to enable that image and a enhance quality. we we'll oftentimes device for continue making

about move it with is. right, to you decision-making starts if the where So think earlier patient point-of-care, the

point-of-care so you that. enables do And to ultrasound

and of our where technology do let And quality more here our second cost our the the I'll allows important image to think, which becomes than fairly is a overall to increase right we basis, of that. our cadence that you take are economics the Stephanie, with And adequately continuing we the have in somebody capabilities technology on regular one. I ability now and along obviously advantage care. based improve semiconductor with to

Stephanie Fielding

Josh. question, the for Thanks Sure.

both for last develop iQ+ well As a you we as to partnership manufacturing with as a engineering and that We've partnership know, going years. looked been strong have very the an partnership. the that's has TSMC

part have do that, supply a committed we As with of them. agreement

of help it that confident, shortage should so, to our wafers ability materialize. just we the to one current as midst is the strength of deliver And for their wafers partnership in the that partnership. a of us in of meet semiconductor production, we is demand, this well the think need feel example additional both and very global value availability competitive a We as

Josh Jennings

Excellent. Thank you.

Operator

we to Q&A the turn for Dr. over Todd today. time all will That's I Fruchterman call allotted for back have closing the remarks.

Todd Fruchterman

want really Network's technology, on you call. just do for embarking thank we all excited earnings all of of look Thank I forward exciting how and are Butterfly ever can't to this tell the future your first for the to you about journey I solution. our participating in time you today. the with of we And you. company, again

Operator

concludes Thank you for conference today's This call. participating.

You may disconnect. now

Butterfly Network (BFLY) 30 Mar 212020 Q4 Earnings call transcript