Butterfly Network(US:BFLY)2023-02-28 15:49Financial Data and Key Metrics Changes - For Q4 2022, revenue was $19 million, consistent with guidance and a 17% growth year-over-year [64] - Adjusted EBITDA loss improved to $29.3 million from $35.6 million in Q4 2021, driven by increased adjusted gross margin and cost reduction initiatives [44][66] - Adjusted gross profit was $10.3 million, with a margin of 54%, up from 40% in Q4 2021, attributed to a higher proportion of subscription revenues and improved manufacturing productivity [65] Business Line Data and Key Metrics Changes - Product revenue decreased by 12% to $12.7 million due to lower volumes in health systems and e-commerce, partially offset by higher global health volume and average selling prices [64] - Software and services revenue grew by almost 30% to $6.3 million, representing 33% of total revenue, driven by an increased installed base and software renewals [79] Market Data and Key Metrics Changes - The company is focusing on large health systems and hospitals, restructuring its commercial team to enhance efficiency and impact [13][66] - International expansion efforts included partnerships in new markets such as the UAE, India, Israel, and South Africa, unlocking millions of potential customers [39] Company Strategy and Development Direction - The company aims to democratize healthcare by making medical imaging accessible, with a focus on enterprise-wide deployments in health systems [32][34] - The strategy includes leveraging the Butterfly Blueprint software as a "Trojan horse" to facilitate device adoption across health systems [72] - Future plans involve expanding into home use for patient self-scanning and chronic disease monitoring, with ongoing regulatory discussions [61][95] Management's Comments on Operating Environment and Future Outlook - Management noted external resource constraints affecting sales cycles but expects these to alleviate over the year, allowing for improved performance [81] - The company anticipates full-year revenue growth in the high teens to low 20s range, with stronger performance expected in the second half of the year [66] Other Important Information - The company has a strong cash position of $242 million as of December 31, 2022, with a reduced monthly cash burn of $10 million [80] - A search for a full-time CEO is underway, with a focus on finding a leader who can inspire the team and drive the commercial strategy [7][33] Q&A Session Summary Question: What is the pathway for Butterfly iQ device deployments in Blueprint customer accounts? - The deployment of Blueprint allows for entry into large health systems, facilitating the eventual purchase and deployment of Butterfly devices across departments [88][89] Question: What is the current status of the U.S. sales force and enterprise channel leadership? - New commercial leadership has been brought in to focus on U.S. health systems while also finding distribution partners for out-of-hospital settings [91] Question: How is the company progressing towards home imaging and chronic disease management? - The company is working on use cases to ensure regulatory comfort for self-scanning and is making significant progress in image quality and home use capabilities [95][96]