BFLY - Earnings call transcript Q1 2024

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Operator

Good afternoon. Thank you for attending the Butterfly Networks First Quarter 2024 Earnings Call. My name is Victoria, and I'll be your moderator today. [Operator Instructions] With an opportunity for questions and answers at the end. [Operator Instructions]. to conference like host, to now Getz. Heather would pass over the your I you. Thank

Heather. proceed, may You

Heather Getz

] I'm Good afternoon, first compared financial you on update. a released Firefly's XX, website alongside and reconciliation thank most the and The applicable financial today, today. XXXX, use presentation, results ir.butterflynetwork.com. Getz, Butterfly to release at Investors company's will of the Joseph Chief Earlier of are and available and GAAP for Financial call. Officer, section which a the currently management's measures the Butterfly; provided [ quarter earnings March this Operations for ended business Chairman joining Heather Chief includes at afternoon's host us Executive measures non-GAAP Officer and DeVivo, of

Commission. may differ on filings forward-looking uncertainties products number in involve with we statements statements other size actual and unknown potential respect for forward-looking to of the are and our made These During will These are or are future services. These among assumptions things, development risks, certain based our performance, and expectations growth Exchange and the of materially to the future and cause markets from products potential making that be statements. and expectations and statements. to those a in change other forward-looking call, known factors results and commercialization services, current subject Securities risks financial described with information, and and that of include, current may approvals contained today's regulatory results, and other

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

will short recorded, a is live between and trimmed. be a the presentation remarks. audio be conjunction There reminder, being in delay presentation this the being and call As our with referencing live and a may slide webcast we

would now you to webcast once call the call like the I over page, live be to able Joe. will the same has the replay and completed. turn On also Joe? to access

Joseph DeVivo

for everyone, had good our which afternoon, to good us We've revenue and XX% XXXX Butterfly. for guidance growth, quarter expectations quarter was year joining what raising perfect will really and above great first So and are for delivered a revenue We start conference earnings and call. thank a full be for now the you year. a

IQX marks a shift in Our hoping system and for we competitiveness the everything launch proved for were market. health major

able with new our With coming, along we a from for and sustain foreseeable future. the to of be growth products product building momentum lineup feel services recent launches, this will we robust confident

do streamline further extending and quarter, million cash on or us quarter to in of our able heels results our We half and million. We $XX.X it improved through expectations. ongoing the efficient increase with included. volume history, the quarter fourth XX% will Our last we well efforts Butterfly's 'XX channels more to XX% continue even XXXX more overachieving last These were results these use become on first into runway cash year's quarter XXXX. Elaborating in came at 'XX XXXX, revenue year. of efficiently. pro a in did more in the actually quarter, all cash achieve the beating first $XX.X was execution over our the best Even through come first

year-over-year. quarter So cash XX% using less first revenue growth, highest significantly ever,

quarter. more ready. The schedule, which were we momentum. in winning January, was had delivering most progress. We FDA early notable significant launched IQX of clearance IQX number achievements a that's even Now ahead of the in We of and

marvelous a high-quality did inventory. team operations job producing Our

launch proud of ahead delivering the team through Our such flawless I'm a marketing with schedule. occurring for so high-quality launch quarter. of the many executed online activations team very

into health IQX as call, previous our driving Butterfly one, priorities global going XXXX and X, earnings driven are: our out on systems, for deeper expansion; a adoption. as reminder, So medical growth I X, laid school including

opportunities addition, further bet we such see [ as ]. In

IQX to all XX%, growth XX, the by to volume performance. increasing February further an an year-over-year. healthy. became a no available increase led of on in groundswell throughout my U.S. just regions basis unit to point then proceeded deliver launch of was which daily of in beginning of Each in above-plan quarter, quarter deals our the revenue So XXXX, XX% individual very pro is There were a of domestic orders our large on the view, channels.

was MDR Now for to without international prior receiving even this ICs. certification IQX and grew XX%, EU and

from despite So in about performance our that. other based new distributors change team our the the in words, growth and direct from that's for product was no on strong execution international improved purely years. Well,

cadre Now that European a of we our month. advanced product International later should MDR out accelerate IQ rolling we'll features further. on certification, Plus results be have this EU

will what's come We So soon. next to XXXX. Canada very more in Butterfly international is IQX Europe plan then later the in And IQX of rollout off kicking this month. new launch in

to great, it as a nice specialties, to wanted were every half It American to a little setting as were cardiologists. shined, recent say, our trade-in in We new "I have upgrades more, everyone heard IQX technology. U.S. was gratifying users but" them by IQX says Sales we we half In and Of for just no used because been But Cardiology and and combine really College IQX private cardiology. existing clinical to specialty activity the units for users hear. with the from the swamped That's IQX every available a especially about in is was to was held had if is." is in so good quarter see thing hear most Butterfly ultrasoft. sold, booth who was KOLs relevant IQX demos many So there is half Conference, brand-new selling "Butterfly That X,XXX past. At the electric. but. has several market. over now

much our up put the a we've Our message customers there's for our viral devices, buzz just products IQX is against and and getting out. it. Time around is quality reaching are better. competitive again, new image

cost their and full $X,XXX tools our a competitive buy $X,XXX automated Remember, entry-level advanced body price each and image you to all of between fraction X to as to together props. pros a get is need of an car. still have We the of

probes manipulation We white on IQ an series are at paper IQM], the ] and very utility ] remains handheld number efficiency. This and get tools With first selling are in a butterflynetwork.com/resources of demanding of in lot and we to protocols Scan consuming the and the can reducing how of prove [ and $XX.XX. [ accessible proposed us. a diagnostic of Slice product advanced more opt these ultrasound care detailing enhanced was also life. that Slice the quarter a side-by-side. time iQ scans on iQs [ clinical the history needed by published may exam. IQOS new best-selling to generalists streamlines Many the price-sensitive we began purchase scanning enable X also at efficient who or process protocols has Providers that

While to make taking [ iQX pro handheld simply doctors, notice growing. specialized $XX.XX. No an constantly probes more costs. best because needs, It's are is MSK will Butterfly at paired matter are for educational in and and vascular Garden deployment likely example, in quality them our lowest now offering. Health wins feasible for cardiac be And with the and simultaneously the we best our bringing unbeatable systems and what, will opt all-in-one cost Plus now capabilities software the image just the the both and apps ] Butterfly with tools at pipeline scale. AI enterprise world. have

serious choice Director If only We is most portaCare education one probe complete and about building will mobile They the have program. butterfly, portfolio. the have ] solution. [ now the app ultrasound, software an enterprise enterprise truly

new system-wide, a preview In furthers revenue Rochester one-to-one ultrasound come demonstrating our may allowed value fact, of highlight. revenue is Medical installations observed significant they but increase expenditures XXX% much URMC place Senate in years this, which on reduce capital X.X us when probe of coming just Butterfly from more system-wide. the also story we're and hospital software in by the University at largest putting devices thrilled a economic to point-of-care data growth, Since out one our in by deploying the to of benefits of butterfly. There in

at enterprise ARR we is Underneath Looking accounts 'XX it upsells in QX existing revenue, software was temporary. our down year-over-year. XX% great with from growth total, that, at and overall service quarter at XX% in and software had growing slightly. This

X On important as bunch explained one-to-one not I'm the individual ago, X the including deploying were that and growth subscription last sales, model new all software first-year software roll that to in very the side, we're over the new over of set the was students. with quarter. nicely stage of years us. And all in a revenue would successful. will I be for forward chamber we programs X into of an QX, lot probe Much medical put a to momentum years. quarter's X that all-in which school from incoming probes this promotion which of anniversaried at also quarter we've the reloaded this a for schools driver off here upsell worried rolled is this about seeing next amortize

this their strong and is of area are in own schools one-to-one pipeline Our also probe. student realizing growing each wants Look, models. the value

platform, A DO a QX at resource, session we medical do is have. Prospects their student's for market generation now contribution earlier, Apple part students learn is ultrasound reason and learn traded student [ AI-guided a our one-to-one feasible. students in short month, in medical country. More a amazing. loyalty about are is Its Scan. here. practice built decision-makers an the the to It has for Lab XX their Having the the school and The came impact like that it side-by-side Butterfly's strengthened in of of feel they Scan model of showed Scanlon schools. well leadership ultrasound education of private last huge amplifies hands-on was whole as SES. decades your and to butterfat. ACOM, Labs Just years up beyond launch IMAX success learn gathering largest conversations a tools. quarter a to of with also med when a all schools our on were nothing medical in Much more as beef] lead goes osteopathic schools with for practice models one-to-one not our more than coursework instructor with training ScanLab

launch and multiple using changer in their practice students realize and scanning their distributors AI programs in have are is now skills incorporated Customers downloaded thousands to are tool, game proven clinicians training Since its it, a us. allowing an own We partners, using institutions mid-January, and on Schools there's clinical curriculum. for research. hosting it it. of into customers their

just added these and saw XXXX continues saw of strong in we to partners. garden also ThinkSono on progress This [ And In pain first in August area. AI partner education rate It's streams an to month, growth an partners. April for last We became X commercialize We see about pipeline this assessment. launched Butterfly QX months immediate exciting XX, to ago app of grow. our X deep ] XXXX, thrombosis inbound. in the

cleaner it contact ban a to pleased have European hazards turning the of yet Heather, a as directive. begun that they've to brief with been next the update health. substances to We're before and request substances or lead-based called from like lead for exemption. European Commission the to learned ultrasound reviewing that [indiscernible] incumbent So [indiscernible] in hazardous industry's chip not about RoHaS to our the restrictions on effort alternative we've I've devices I'd Commission's mentioned give electronic

calendar begin most the at Our in and contact the then year end decide commission that likely of the sometime will XXXX. shares

So for news that's Butterfly. terrific

First, game. Butterfly evaluated this the in not our in CMOS late fully round. next will technology in considered be are we and

evaluation that be process X Second, possible will before we concludes. IQ this in approved it's believe Europe

that equivalent with that valuation While that feel at confident IQ minimum QX independent is against even we all handhelds we're with iQX will prevail very any other we would Plus, certain conclude period.

facts learned that we of this upholding favor directive ] The the and strong. growing. our as process, EPS the believe and banned odds are favor. work The seriousness EU but be handhelds further e prevailing putting is also are energy may the more our [ have early confidence lot of to simply a we as of There in in new is into the still are our We XXXX. this sales do, more from is

on with Heather? turn So quarter. I'll more Heather over that, report to to it the

Heather Getz

afternoon, good Thank you, and everyone.

realized the the with we a in As international and average revenue carry was international a year offset $X.X lower by a over slightly than due and result year the the with subscriptions. Total per a high higher This of selling higher increased for increase from period increase to a the to XX% prior XXXX driven volumes, all for a average lower quarter, to increase first higher versus U.S., prices, volumes of and $XX.X strong XX% of through of million. e-com. selling lower software started which In iQX average our higher partially by driven Butterfly higher historic mix as Joe we selling mark the U.S. XX% average million prices higher distributors, in prices software million products increased volume, sales demand and This individual noted, sales higher Breaking the prices. markets This strong average subcrease representing was QX launch sales. by XXXX. our selling period, prior $XX.X revenue year. price revenue in XX% demonstrating grew. prior products. Both as volumes of pro was as XX% total between well driven down versus spread and selling channels across our and increase by

million versus the down Software year first revenue and was Services period. slightly $X.X quarter, prior the in

services X by software XXXX. as and decreasing lower due revenue by higher points on installed to the subscription existing well base Software individual a of were versus uniters. was percentage year to as of decrease renewals compared base that This XX% of was mix largely prior subscription offset as software enterprise approximately renewals QX

the ARR. total reported software, was XX% Our annual services, and grew other X% period. as revenue, of increase enterprise prior total part led increased in our and versus recurring an our which by which This by is to of year software

as Gross XXXX, compared XX% $X.X period. profit in the QX $XX.X a Turning million in million increase now year to to prior profit. gross was

XX%. other percentage revenue, by offset and lower and partially a gross at software margin slight software downtick average higher of The negative remained prices. While versus relatively was higher by XX% flat driven services higher-margin of impact amortization proportion selling

driven $XX.X loss cost XX tax for compared quarter in for EBITDA March period cash of including and as outside payroll, capital reductions the led of was $XXX to Moving which was million adjusted with of loss million first $XX.X lower services. million. improvement a in to and by efficiencies, XXXX. adjusted resources million the equivalents, and EBITDA other XXXX, higher of EBITDA consulting and $X.X same resources loss revenue, cash Capital restricted The XX, were

$X.X and of bonus the nonrecurring quarter use of first Excluding cash $XX million total our other in expenses, about million. was

taken into reduced the over the last business of XX that $XX million discussed, over us cost million. Based we burn provides previously with and approximately have our months, with a have of cash it further. this, to we $XXX we plan on conservatively annual to As a have our XXXX out runway estimate and cash balance extend

moving the received touch on NYS to I notification want the guide, from ]. Before [ we to

at a NYSE our have price that requires may notification out a we are average standard that read you compliance in As we release, with the of $X. XX-day received stock of moving least

since to results regain issue recovery that stock We in are will first future growth. an execution. regain believe the In in time had and the in the not this months We reverse compliance price we or we does and compliance X price market has the perform we not our factoring our can through stock undervalued administrative continued We stock recover market with that split. event period, will a business are our listing. is our believe we quarter and as maintain strictly viewing confident the

Exchange. continue During time, this on York the our trade New to stock will Stock

to guidance. moving Now

X ] we and we We partners discussed, in in April, [ new a while consumption first what we IQX, We the Joe invested deals. commercialize Butterfly the and conservatively first in XXXX. road meaningful of with As runway quarter, against XX ScanLab the in into Singson have down launched cash We've Garden garden our map to out contributor cash expect August. laid executing been team, be line. our an example sales our partner reducing the all to harden became extending and added

efficiencies to runway to look are we find As continuing cash even our further further. we coming, and commercial organization into XXXX, extend our is

number we grants profitability, you and to for deals In for and with front. a opportunities keep flexibility addition, to pathway will are maximum nondilutive financing, on this provide of updated exploring example, a we us licensing

launching For concrete more EBITDA growth $XX we about XX% market loss the XXXX guide million guidance, range million. to acceptance, in can revenue $XX to $XX for XX% the million or full and and guidance its seeing after IQX higher of $XX provide and to adjusted year a of million of

As the year progresses, and updates we will further clarification. provide

large to comp due medical few deals Specifically QX, is looking for toughest occurred which school that a prior our at in year year. the the

$XX XX%, see approximately We to around us revenue. expect to growth in revenue million bringing

to loss XXXX we strong, For summarize, of million year cash our as we continued a to $XX the efficiencies will million. approximately and QX that adjusted extend expect realize further look growth we to well as To forward started additional runway. $XX have EBITDA, in

we position the maintained in cash business. solid have Additionally, a while investing

We of will to and its adoption a call energized expand plan, team technological back drive with is products on all of to strong set that, to accomplish our continue organizational capitalize of this to goals base execute will a against Jeff. up channels. iQX our Butterfly opportunity. turn and I and attractive our across uses Jeff? the who with And assets of

Joseph DeVivo

Heather. Thanks,

opportunities all that's with been trying to I've of I'm the But for opportunities the What And what about focusing It year we hard have instead Butterfly. easy done. back, what greatest here once and was accomplished. was now. enormous do looking to was proud at a recognize we've potential So everything and not impact. on

For the delivering those all now team you of at Butterfly levels. is know you following that closely,

quarter. Our new product hitting launches just mark the it and teams by crushed R&D this product team our on

clearance after clearance worldwide. with constantly delivers team regulatory Our

quality of operations team Our ahead consistently time. products delivers

and Garden exceeded the globally are [ margin. In created our we Development, and a by organization, into reinvestment wide commercial combined engine plan cash delivering in talent in used some and the successful is ] sales programs. our prior of marketing just the With teams Corporate powered ] new all with and Butterfly that this the we're [ a getting Butterfly the and organization did by started. We half streamlined year

those we look will the certification will end now well, in ago. a and we countries [ we As all received followed features by MDR other [indiscernible] before in we days launch countries, as to then quarter Canada costly as this EU XXXX. advanced And Plus ahead, certificates in iQX with ] IQ of just QX add our next CE-Mark few

front, democratize continue to mission dedicated global remain device the all and On be to choice health the context. we to global care health our also of in

month, Just Africa. deployment last March X,XXX under phase, Africa to the XXXX. we In XXX care received in X improve probe are our being South we initiated this Phase [ pros ] of to maternal in distributed Gates sub-Saharan grant

now business vet namely Our new their became into all veterinary the in who hospitals. the with biggest is space. to and partnered corporate We've names partnerships. ] veterinary leverage the of QX, and view also move Petco, a will toolkit pet services In retail, Butterfly Butterfly with as [ Chile strengthen their part [ partner they Chey], PetSmart key in latest continues who first-ever

the Veterinary We the ] to positive for see at Cattle debt management. June. will disease in respiratory also researching continue be State Conference presented [ Medicine findings Institute American IQs College from Data of Kansas Internal of use shootside Bee

quarter bladder product bladder we all [ a for also Now of Plus software and plus tool. With we nurses ] a IPPs ] efforts specialty in our U.S. are our easy purpose-built the first ] coming [ soon our quick Bladder momentum our discussed as It this part the to will the for new in a the proprietary in [ hospital IQ card-based launch of soon, already will today, the to serve customers, our bladder. specific guidance scanner year. best small is continued introduce make to using increasing it U.S. and IQ bladder get volume with needs

guidance like As we increased growth, XX% needs. I is our to revenue Heather cash revenue that reduce to continue growth, also which on to our sustainable in we to of With XX% believe are touch we would mentioned, the previous future. growth double-digit of about instead price. will stock guiding our low

aware, it's all a market challenging in for and particular, you're as Medtech. been So small

do reflects ahead. As our or our we Heather the we value, price mentioned earlier, accomplished accurately believe opportunities not current what business's

put With this growth market into last and we the results, quarter's business business. strong the rightsizing acknowledges hope the and work the to we our of year that great return this future

we have more and committed the reignited organization. continue I Heather and growth efficient, to are to optimize As became

for As we for several further which mentioned, looking nondilutive have opportunities further runway current even our and to cost and of efficiencies upside plan. both are deliver will our extend initiatives underway at financings, creative

I'd like held next of was provided a of review from team our I investor proud were KOLs Day, opportunities Butterfly to revisit for from and technology Investor takeaways current on the on XX. for I'd day. new of growing Now their deployment [ business you showcased like be brief encourage new Day years. slide. There the of real-time website. March Events delivery plan reinforce URL At the the with market. sound the the end page can point-of-care I'm to X our very heard demonstration, the ] which to communicated of on and replay Investor our the seen we several

the winning race are we digital and to ultrasound. First,

We launch, the PX power semiconductors. in invest the the chip. chip, mechanical processing XXx in new has leap which the cart-like have the [ the successful an of and and power iQX by processing dramatically while our palm used capabilities deployment chip showing our higher market offering ] impedance capabilities capabilities in expands significantly chip will in next have more of produce very to doubled doctor's showed be huge. now exponential in Each each base largest supercomputers hands. Remember, the a and Apollo iQX handheld a of user We continuing the to We device increasing world. power we're

sophisticated pocket, from carry doctor, carries parts in around every world super the world in today. every each in the Now will device imaging one nurse one of your the with of most a Butterfly you capabilities

[ the programs new with image million which a over the Butterfly partners, ] ] for developers data Garden is will well over to repository largest X generate over want commercialization. are Second, at Modifying partner upload meaningful over with powered will X next XX XX,XXX as AI Ultrasound by drilling for Butterfly the images and [ years. XX development company contracted revenue day. Photo as with fly

Garden Our AI development. ultrasound global epicenter will independent of become the

by our program, chip interested. If licenses of Butterfly's which major also licensing. capital improve adding Power deals, non-dilutive will Butterfly a we're technology closing has Our pipeline these partners sheet in balance by successful to

by us So program capital generating while revenue in our power Butterfly can to markets from bring Butterfly the never contemplated core as past.

So Butterfly third, focus by pulmonary failure Care Care. congestion. patients Butterfly providers home helping in be will Butterfly in-home the by empowering introducing on see nurses heart will at-risk success Home manage for Home patients helping congestive

intend present we bladder We with calculating large revenue their past opportunities Both volume the so opportunities growth business insufficiency, right also do the revenue through continue plans help at home. the in further. flow in for faster. bladder to begin to catheterization of Butterfly success year, XXXX. In even new manage we harvest even their have will time to and these way grow over as of conclusion, the people market top new extended We've commercial and to the in cash reignited to line starting drive

continue will launches market to and power product growth. New

want, excited the thesis So this it. we to investors on believe deliver and is investment I are

for up questions. operator, that, let's it open So with

Operator

[Operator Instructions] of comes & with first line the Our Oppenheimer Suraj Kalia Co. from question

Suraj Kalia

right. all Heather, Hope can can all me you hear hear me right? you

congrats success. and the time continued foremost, to start a a year, on bias nice coming been really long and first So

I -- out curve on were metrics few. lot have graph iQ I adoption X,XXX let on same period, kind of a of that looking a a I the So number do quarter. the curve iQX idea in and shown we an of how of iQX, how If so plus, time hope right. the iQ, basis? the or me is adoption in of draw sold for a hone got relative

Joseph DeVivo

times Yes, top it's that's because that's one an we market. it of the to actually are the on existing a also -- hard launching have we're where is different from first and launch calculate product that this on different there

see don't Heather we're new I there's I a, in -- what So But what I a is, that are selling we any mean XX% you from higher ask can know past. experienced was XX%, correlation price. the at product doing if

still price very, another are very, product and been offering at a well it's lower very received. We

So you can glean the past? Heather, is there from anything that

Heather Getz

Yes.

I That's Other really had half the belt. talked it's, think out a products and only X difficult point, under than a little say. our tremendous has bit about. reception having there, the as to quarter to your Joe we've been

think can we'll bit a little now, probably and start any other see I for we But to So have Canada. right Jack. and launch some information as trends internationally more don't I draw conclusion,

Joshua Jennings

through The other big a thing was for sales, of the is customers. were -- or chunk I'll new online say was trade-ins from the other of thing say customers it I'd most Suraj is through revenue existing very orders customers, new

time. -- has filled as our are is really for filled pipeline know, big salescycles. really But and those you hospital Our longer business

excited bringing how to And very changes us for is we're that nicely. in portfolio there's about So side. dynamic the health competitive system the

in the way a to at So in very encouraging. drumbeat see have been end for just the has X the weeks they sales the come healthy the of quarter

Suraj Kalia

it the Joe, you iQX an like Right. of pluses all XX% iQX over with our basically mean, looks for time be math, when I very almost to in and by your little rapid done needs a iQX what a generation view, -- to when for and point generation, based at to clip. planning is are against in trying the what card-based evaluation understand what objective head-to-head systems. or next make terms part or how I'm systems. guess I next all basically in make

Joseph DeVivo

a the it say used of people, is if out your core of not handheld a ultrasound you powerful going the learn is, we workflow months have now talk a I to the think into was next a hard this And would a And And I the a because in going a hospital. you an we're inpatient Would over we had question was business. specialized when is device car. in ultrasonographers I that really a across room because car, you can all would really putting and some lot the people So question they specialties of think a need -- to cart think a X be hospital to patient lot that pocket. as think the ultrasonography. is for use still I as

liberating a the mobile But to immediately just -- go be have to workflow. is This ultrasonographers and don't change to hospitals to contained will be room.

quickly of then decisions time our any and body that's decisions. time and care, health that make the at they and time. that's some get care. the be refer wherever right But having clinical of able think point customers part for to doctors doctors seeing pathway, of I making image to the that take at are the are will We're that they changing ability any better of again and want

specialized and ask in card Now remain would question I on ultrasonographers the answer what I is who think I their and room. don't happen. big often a pocket, that think would if know question, in they rely had their we imaging carts, ourselves the they to

be And change. so of to part just revolutionary we're a delighted big this

Suraj Kalia

i.e., have of kind hop been One give Fair cardiology, your for back a queue. throw what there. is way, areas the Just late in quite QX, key land initial X of us enough. uptick, I'll and I'll OB/GYN?

about you can walk the if [ Street TAM to about and guys Second emphasizing hasn't some ROAS]. strongly have final something makes believe about Obviously, ] talked And question, the expansion. got yesterday are didn't I through from you [ us seeing commentary that you that is what Joe, for maybe catch completely. care. you on you thing been time home

to of Sorry, us. things. I tune lot out a got you Hopefully,

Joseph DeVivo

my is [indiscernible] friend.

So key of areas uptake.

our a high-quality seeing where wanted are we're right. to is lot that of we're saying, be. of pro, seeing to orders they have cardiologists now cardiology. want but I now, be "All new coming I that's from don't right And have And limited." don't lot So a image a to

So seen of we've that's that lot an area uptake. a

the seeing and seeing we're are where more update in we've room always in been We then Care. emergency strong Critical uptake

still quite we vibrant. our well. doing served in well sales really plus areas, those in well past. So And amazingly, we're in that specialized we're are the areas IQ doing really the hadn't And us

to customers, care, gotten at So really good of we're do needs very we've more teaching ultrasound. meeting how people which is positive. Around more home

Academy. We have the tools in

cost pulmonary lower home have discharges makes We a And patients easy those for to checking it we is a the with done XX% using in application, B-line our use to the our heart providers, care congestive And an concluded failure health to to and have subsiding failure home upon health that home. the manage our providers ScanLab. last failure that professional year. And their pulmonary a that this congestive manage manage of keep is pro opportunity a progression or keep AI-powered heart have we very the penalized tools that being That patients were manage to in counter to and their year which the certified symptoms by the believe of home. due based major in congestive heart in hospitals patients help and way program, the will the -- about center at-risk show it diuretics there's with We've congestion. of readmits. tools to study will

nurse pathway to of a can then the is and wearables good do There's through is home it. a as we've future a where And part our where it there can patient pathway there's So in it. pathway, course, discussed, of which in telemedicine, do a the a themselves.

market, of to take some provide the up care care we're can to it stand and very let and you've on got So sometimes we go yourself move off able in key economy drive do been people risk and train the market. and the services confident to help health part health And we've in past, yourself. some order a that

had the Commission refreshing this third of on that. we've dialogue of feedback gotten the the they lead ultrasound quarter. ] with exemption, more for a from European of existing RoHS much is even We've industry. And feedback exception the disease taken [ The the up basically the this. One, piece is haven't

it, we're means and They're So the then just budding is not in. are haven't end what started. in We at that that of game. we the miss didn't it. tail They

in not exemption of So process. fully were will and fully last aware news We time. we for during we because the it means are now us, as of be were company the that's a that great it this Suraj, evaluated. We evaluated game, not

submitted data we we've that we are are, we equivalent. that not Now claim refute any already that

success good we're of very feel much we the so of higher. And part because a is the probability process that

means handheld evaluating older regarding actually peso going the the if marking will we'll be way to that of they're goes led ] comparing devices. because go EU we of be be that to at CE the against the clearance ultrasound end Second, then 'XX, [ it technology MDR everything expect like clearance iQX or iQX

be feel the sales tough decisions know probable it's this than we've part fact it's the having hopefully hey, this devices you this they've 'XX, they that in this confidence and 'XX. when based the and that area in actually upside, is that, that their it appropriate on and led b, are not they don't upon a, It's ] [ good made to to kind had the where see afraid We've from the evaluation. of they we in possibility think review making a they're some will QX start the handheld that would law, a decisions but them and independent very is. And us tough future. to sometime being We directive, in given of said an process do, also and conclude more started suspending evaluation they conviction given tiso know past possible gone the would they learned So we'll committed of that of, not. And end what?

our bit the you're measure to favor those So off future, I positive in be take I the at those probability more of a in willing market is looking that they may mean, just equivalency. think with little our if the

Suraj Kalia

So congrats on progress. the

Operator

the with of from comes line question Josh next TD Jennings Our Cowen.

Joshua Jennings

channel, year start start nice with home demand the to iQX. and strong for the Wanted the on just initiative on early [ to to Congratulations the care home inquiry Suraj's and hoping better. model understand, help the business I And revenue flow thinking to where us little a that start bit about just home which could you guess, from may XXXX, emitting]. question a

Butterfly Is better sense model ] probes could already. revenue get or not kicking plus revenues? Just generate services? Just iQ click model? be iQXs how or sales year to is as be a Or it home a [ a in recurring going there to of to that next care -- issue will wanted or

Joseph DeVivo

Terrific. question. we're focusing the device Josh, sales. Thank Yes, and you, thanks not for on

on some of service delivery revenue the are success We objectives. based potential and upon clinical the focusing taking of risk or

penalized we out there everything a revenue and keeping being upon very charge those to risk the a and that So for readmissions, hospitals the patients success those are these readmissions. There's and envision of or of service that of from hospital. finite again, we delivery would either combination service based the due cost a service revenue of minimizing

Joshua Jennings

been Great. like report And potential stake is on increase the well-understood the already the Rochester Compass. been know with question that second capture stake a metric with software. follow pokes I If a revenue just Or are just the using channel of this you like up Compass significant capture the the probes [indiscernible] guess the revenue then using [ Butterfly more revenue this wanted for to theoretical capture allow ground. I just more It ] heavily? there's in of in to about along Rochester maybe potential? layer and of in the is in formal even ground kind I University there mark exams. has Butterfly this a sounds put Does play? And

Joseph DeVivo

question. great a that's Yes,

in When They're in a training, to above is all you XX% or what of I'm of where this amount the capturing we point they capture that are not What reimbursement. in deploy Compass, getting scans sell hospitals either revenue. about experiential, things revenue, their capture a and And ultrasound to we not only upon consistently Compass, to of is is significant XX%. view it I see based just to the has the we more it's revenue, of anything. cetera. When pretty that XX% don't do but And place ultrasound et especially capturing XX%, we full the think learn to come. hospitals having a a software well we're a more anecdotal care. do, they all have process telling and XX%

in very capturing been health where is software between we're they've seeing then about actively probes of our Rochester a that's I you're of seeing are so because have deployed deployment, departments or very system. education XXX now are b, capturing ultrasound putting the new it's their users the think I one-to-one based know, all and Compass And quick they place upon unique similar nontraditional probably doing in ultrasound software a, having so seeing revenue XXX they've throughout out actually ROI classic positive. What's all-in a focus that the departments very process capture. But well standard they the we're don't ultrasound And the in one-to-one a uptake model the proficiency is deploying point-of-care coming additional of deployed, that but a on revenue. of in who model,

ROI do radiology. I healthily interestingly, in individual would subspecialty these clearance But -- in because revenue given its the was as from an the been to care of ultrasound significant this of taking numbers have it's quote on they scans people haven't can't own. scans, you say, very away that. but hey, past it's first the you're year, doing critical radiology up a the and point a increase revenue. So saying in And you're

at anything is [ a who clinical because radiology. ] and some doctor it sooner. I've a again and what Butterfly ultrasound right downstream had bladder What thrilled. does. It go from who in go URMC makes child tumor absolutely used a scan point-of-care and are doctors care heard a ultrasound there take they they been there's find young better didn't them of help structure it difficulty bladder. -- they right an the recently ] URMC curve. aortic and into It's learning had chest in make doctor then decisions pain, tough right evacuating is the That did ultrasound someone point did time immediately their surgery [ to the they scan identified or a and So The surgery. and had PortiCare the the that for time

before. diagnosis never patients a You see They a new just But whole they the specific is whole the to asked is process, more And able be much empowering go doctor course, for for anecdotal time the now their larger sudden, saw can they more deployment. the them fun things earlier time can there and -- and better help of for a and again, trends. sooner. go and I've through patient. an But then, and doctor gratifying all a do new you of through to is

Joshua Jennings

Excellent. And question. last maybe

reaching and then both investor you -- about thinking Just on nondilutive maybe just and options your answer of to meeting could you impact that could just requiring Heather just And financing you financing that the back just or the those. becoming in tie to both us Maybe get XXXX, mentioned. but profitability how the remind there. about [indiscernible] how elaborate of by include profitability about talked hearing Maybe to at pathway? that the in,

Joseph DeVivo

Josh. Thank Awesome, you.

the is time. What invested markets. products So has is that know the semiconductors learned delivering our in is And other improvement point all for over chip we've And billion power program by of also you about. our that we've applicability the we're technology technology that real exponential MEMS in with our program. in upwards we our of market semiconductor primary premise making $X.X ultrasound focus

that also seen brain is that also with deal we -- were computer interface we're and seeing in could of seeing activation and proved if drug lot market that there carts very the You ultrasound. know And to to software able markets, with them is these therapies are contribute them just what's Ultrasound and using do our different researchers it this settings flexibility Neurotech], clinical applications. through to in be ultrasound many different we power change we're interesting do that they're fastening chip-based, all work have attenuation is frequencies, are is in thinking to changes of for trying a the tremendous and to Forest we nicely. What studying. Because [ you've types one other different breaking and place a of tune different go of apart to a

monetizing of we've out license and entirely more by do, the the us can set markets we we have be big done and power So get -- our million applications. If out appetite new new we balance for these accomplish large And current by to to there's far-fetched may what in a to that there's technology, profitability market in Neurotech it's able set be not to get to extract nondilutive way. needs license of sheet we did investment revenue. and creating some our a if that deal. If a $X revenue Forest

So we that. are really on focused

cash that's We we're should something bunch just to concept partners. have and great is with investors of of people running And there's with great and talking need or the a cash great think going I and energy whole finite appreciate. This gibberish. out to that company what's happen

revenue. our growing are We

reducing cash are We our burn.

our focused everybody a and have to really these monetize are our in to best extend recaptured We've R&D just difficult creating We during hard team hands. we And things. ability be destiny want is control cash on of runway lot don't shareholder to opportunities we to this in But We to delivered. as our preserving think dilute and getting has be possible our value. our ourselves time. shareholder our on momentum, really value able prices. We're at as focusing

Operator

for Joe are remarks. Devivo at to questions like time. no any your to the would for closing now There additional pass you Thank I waiting conference back question. this

Joseph DeVivo

Thank for everyone. this right, with call. us All you on being

continue We excited. to very be

off I a we're this Butterfly, is for to As mentioned be times, to you a going and good many great to year start.

So thank you for your support.

Operator

day. the rest enjoy today's for Thank and That you call. participation, concludes your of your

Butterfly Network (BFLY) 1 May 242024 Q1 Earnings call transcript