Financial Data and Key Metrics Changes - The company reported a revenue of $21.2 million for Q1 2025, reflecting a 20% growth compared to the previous year [13] - Adjusted EBITDA loss improved from $13.2 million in Q1 2024 to $9.1 million in Q1 2025, marking a 31% improvement [17] - Gross profit increased by 30% to $13.4 million, with gross margin rising to 63% from 58% [16] Business Line Data and Key Metrics Changes - Product revenue reached $14.2 million, a 25% increase year-over-year, driven by higher sales volume [14] - Software and other services revenue was $7.1 million, up 11% from the prior year, attributed to higher enterprise software revenue [15] - The mix of revenue from software and services decreased to 33% as product revenue growth outpaced software revenue [15] Market Data and Key Metrics Changes - U.S. revenue was $16.6 million, a 24% increase year-over-year, while international revenue increased by 9% to $4.6 million [14] - The company is focusing on expanding its presence in Asia and Latin America, as well as high-potential global health markets [11] Company Strategy and Development Direction - The company is diversifying its product offerings, including the introduction of the AI marketplace Butterfly Garden and the chip licensing program Octave [5] - The strategy includes targeting medical schools for personal probe purchases, similar to Apple's approach with laptops [8] - The company aims to launch Compass 2.0 software in the second half of 2025, enhancing its service offerings [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth despite economic headwinds, particularly in global health funding [12] - The company maintains its full-year guidance of approximately 20% revenue growth and adjusted EBITDA loss between $37 million and $42 million [21] - Management highlighted the importance of maintaining a disciplined approach to expense control while investing in growth areas [21] Other Important Information - The company has completed a secondary public offering, generating $81 million in net proceeds to support ongoing investments [18] - The company is closely monitoring potential tariff impacts, estimating minimal exposure due to its manufacturing and assembly locations [19][20] Q&A Session Summary Question: Positive momentum with the second hospital enterprise contract - Management discussed the groundswell of activity within health systems, leading to increased adoption of Butterfly technology [38][40] Question: Opportunities with schools for one-to-one programs - Management noted strong interest from medical schools in adopting one-to-one probe programs, creating recurring revenue opportunities [44][45] Question: Impact of clinical benefits publications on hospital channel - Management indicated that publications have opened doors to C-suite discussions, enhancing the company's visibility and credibility [52][54] Question: Competitive displacement with IQ3 - Management clarified that the adoption of IQ3 is more about choosing a winner rather than displacing an incumbent, as the market is still developing [70] Question: Price and volume split in U.S. product sales - The company reported an 80% volume and 20% price split in U.S. product sales, with international markets seeing a higher price impact [74] Question: Updates on active partnerships and applications - Management shared insights on ongoing partnerships, including advancements in brain-computer interface technology [77][82] Question: Timing for medical schools to adopt new programs - Management explained that decisions typically occur at the end of the first calendar quarter or in the second quarter, aligning with school budget cycles [85][88]

Financial Data and Key Metrics Changes - In 2024, Butterfly Network reported revenue of $82.1 million, representing a 25% increase year-over-year, while adjusted EBITDA loss improved by 42% to $38.9 million [9][43] - The fourth quarter of 2024 saw revenue of $22.4 million, the highest quarterly result in the company's history, marking a 35% increase compared to the prior year [38] - Gross profit for Q4 2024 was $13.7 million, a 45% increase from the prior year, with gross profit margin rising to 61% from 57% [42] Business Line Data and Key Metrics Changes - The iQ3 product accounted for 50% of overall sales in units and 58% of probe revenue in 2024, with higher average selling prices compared to previous devices [13] - Product revenue in Q4 2024 was $14.7 million, a 45% increase year-over-year, while software and other services revenue was $7.6 million, up 20% [40] - Total annual recurring revenue grew slightly, led by an 8% increase in enterprise software subscription ARR [41] Market Data and Key Metrics Changes - U.S. revenue in Q4 2024 was $14.5 million, a 32% increase from the prior year, driven by higher average selling prices and strong demand [39] - International revenue increased by 19% year-over-year to $5.5 million, driven by higher probe volume [39] - The company received EU MDR for iQ+ and iQ3, facilitating access to new markets in Europe and Asia [18] Company Strategy and Development Direction - Butterfly Network aims to expand its digital ecosystem and enhance accessibility to ultrasound technology, targeting a vision where every healthcare provider has a personal imaging device [10] - The company is focusing on scaling its core POCUS business and developing software improvements for data management workflows [22] - Strategic initiatives include expanding partnerships within the Butterfly Garden and commercializing chip technology through Octiv [23][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth targets, emphasizing the importance of the HomeCare and Octiv businesses as significant growth drivers [62][66] - The company plans to maintain fiscal discipline while investing in growth initiatives, projecting 2025 revenue of $96 million to $100 million, representing approximately 20% growth [49] - Management highlighted the successful pilot programs in HomeCare, indicating potential for significant cost savings and improved patient care [31][34] Other Important Information - Butterfly Network raised $81.7 million from a follow-on offering in January 2025, providing a bridge to cash flow independence [48] - The company is actively developing a wearable ultrasound device, with plans to integrate it into the HomeCare model as market demand grows [88][90] Q&A Session Summary Question: Update on confidence level for reaching $500 million revenue target - Management is bullish about growth initiatives and believes they are on track to achieve long-term revenue goals, particularly in the core business and new areas like Octiv and HomeCare [62][64] Question: Steps required to transition HomeCare from pilot to revenue-generating franchise - The transition involves training on-site personnel and utilizing telemedicine for scalability, with a 90-day process for training expected [75][79] Question: Update on wearable ultrasound program - The wearable device is in development, with a focus on building market demand before launching the product [88][90] Question: Details on HomeCare pilot and patient involvement - The pilot involves training 18 nurses across two facilities, with an initial target of 200 patients, and no readmissions reported so far [92][95] Question: Hardware developments and iQ station update - The company is working on next-generation hardware and the iQ station, which will expand into the lower-end cart business [97][99] Question: Clarification on revenue guidance - The 2025 revenue guidance does not include new revenue streams from Octiv or HomeCare, only existing contracts [104][105]