Butterfly Network at Oppenheimer Conference: Strategic Growth and Innovation

On Tuesday, 18 March 2025, Butterfly Network (NYSE: BFLY) presented at the Oppenheimer 35th Annual Health Care MedTech and Services Conference. Led by CEO Joe DeVivo and CFO Heather Goetz, the company outlined its robust 2024 performance, marked by a 25% revenue growth, while addressing future strategies and challenges. The discussion highlighted both the potential of their innovative ultrasound technology and the hurdles in regulatory compliance and market expansion.

Key Takeaways

• Butterfly Network achieved a 25% revenue growth in 2024, driven by the launch of the IQ3 device.
• The company plans to expand into Asia and South America and focus on home care and semiconductor technology.
• Aims for $500 million in revenue by 2030, with a projected 20% growth in 2025.
• Development of AI applications is underway, including a gestational age calculator with the University of North Carolina.
• Regulatory challenges include petitioning the EU for changes in ultrasound device exemptions.

Financial Results

• Revenue increased by 25% in 2024, with a target of $500 million by 2030.
• The average selling price for the IQ3 device is $3,900, including software.
• Gross margin optimization efforts are ongoing, with a focus on IQ3 production efficiency.

Operational Updates

• Launched the IQ3 device, boasting double the processing power of its predecessor.
• Plans for the IQ4 device aim to compete with low-end cart-based ultrasound systems.
• Expansion efforts target Asian and South American markets, with EU MDR certification achieved for the second-generation device.

Future Outlook

• The company is targeting a 20% compound annual growth rate to reach $500 million in revenue by 2030.
• Expansion into home care is expected to significantly contribute to future revenue.
• A 200-patient study is underway to reduce congestive heart failure readmissions in skilled nursing facilities.

Q&A Highlights

• Butterfly Network emphasized its role in providing imaging tools rather than diagnoses, ensuring quality manufacturing and adherence to standards.
• The company is pursuing enterprise deals to become the primary handheld ultrasound vendor in hospitals.
• A home bladder program is being developed to manage at-risk patients and prevent hospital readmissions.

For more detailed insights, readers are encouraged to refer to the full transcript.

Full transcript - Oppenheimer 35th Annual Health Care MedTech and Services Conference:

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Hello, and welcome to the next session of Oppenheimer’s thirty fifth Annual Healthcare Medtech and Services Conference. My name is Seamus Contorno. And next up, we have Joe DeVivo, President and CEO and Heather Goetz, Chief Financial and Operations Officer of Butterfly Network for a fireside chat. Before we get started, I just wanna say for those of you that are listening, if you have any questions that you want us to ask as well, please submit them in the chat, and I will try to get to know them as we can. So Joe, Heather, to start off, why don’t you just give a brief background on Butterfly for those that maybe aren’t up to speed?

And what can you tell us about the latest and greatest about what happened in 2024, what we’re looking for in 2025?

Joe DeVivo, President and CEO, Butterfly Network: So thank you Seamus for having Heather and I. Thanks for your team, the Oppenheimer team. We appreciate the relationship and appreciate being invited. So thank you. First of all, Butterfly is a point of care ultrasound company that’s powered by special semiconductor technology.

Semiconductor technology that allows us to digitally capture an ultrasound image. In many industries where you’ve seen, I’m trying to get away from the sunshine here. In many industries where you’ve seen digital takeover analog, that’s what Butterfly is doing to ultrasound. Ultrasound devices have analog capability using a crystal with a single array to capture an image for a certain part of the body. Butterfly has a semiconductor that can be programmed to tune to image, the entire body.

And we’re on this digital journey of evolution of making as more and more powerful our semiconductors get, the more and more powerful our imaging capability gets, our image clarity, our ability to do subspecialty imaging. And, and we’re on that journey and that journey is not stopping. We for 2024, we launched our third generation device, which is IQ3, which had double the processing power of IQ plus our second generation. And we’ve had a stellar year. We grew 25% in revenue.

People were excited to say to see the power of the device coupled with the software we have from a cloud perspective as well as from an enterprise software perspective. And it’s now the opportunity for us is to put a device in every pocket of every doctor and nurse in the world. We, you know, forty years ago, you’d look at us as a stethoscope salesperson. Hey doc, if you could just put this on your ear, you can listen to the heart. You can listen to the lungs.

You can listen to bowel sounds. Well, we’re doing the same thing. It’s just now you can see. And we have advanced tools that make it portable, and make it powerful with AI and there’s a great future. And as we look into 2025, we’re going to continue to market this new product.

We’re going to continue to penetrate health systems in all different areas where doctors and nurses treat patients whether it’s in their home, whether it’s in a clinic. And we’re going to build some new businesses. We’re going to monetize our semiconductor and we’re going to build a home care business. So Heather, why don’t I turn it to you and maybe you can add some of your color as well.

Heather Goetz, Chief Financial and Operations Officer, Butterfly Network: Yeah, I think, I think pointing out the fact that we are the only real mobile solution, full body handheld ultrasound on the ultrasound on a chip is what allows for us to have that feature. And there is no other product that has the same features and functionality as us on the market. There are other handheld ultrasounds, but you will often need multiple probes and are still connected within the hospital via software that’s on prem versus cloud based. So, the the the cloud based ultrasound on the chip is really, the the secret sauce to, who Butterfly is.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Got it. That’s a that’s a great overview to start. Now I want to kind of backtrack for a little bit. You noted IQ3 launched last year. I believe it’s the most powerful, system you guys have at the moment.

I believe that primarily drove US growth in 2024. Like looking worldwide, how should we think about IQ3 international expansion? Which markets have you guys already gained access to? What’s kind of the plan for 2025 that you can detail? And I guess, are you guys planning kind of go direct in these places, use distributors?

You know, what can you tell us about that?

Joe DeVivo, President and CEO, Butterfly Network: Well, our go to market model is, is threefold. We have our online sales, And so, you know, every quarter, about a thousand doctors around the world pull out a credit card and buy a butterfly for themselves outside their clinic or health system. It’s their device. And we love that because that creates engagement for us, directly with the user. We have inside sales and those inside sales teams, will then try to harvest the cart abandoners and those who didn’t complete on the website.

And then we have a direct sales force. And in different countries, we either have a direct sales force or we have a distributor. And mostly most of the international expansion today are through distribution partnerships because they’re new markets and we haven’t built enough of a foothold and enough scale to go direct. And these partners are skilled in ultrasound and skilled in selling these types of devices. So, we have expanded, first of all, that Europe went through a changing in their regulations and to an eUMDR over the last several years.

And so we were able to get our second generation device finally approved with EU MDR certification. So we were very excited about that and we fast followed with our IQ3. And as we open new markets, we’ve been opening them with our second generation technology. And so we’ve been opening them. We’ve opened up a bunch of markets last year through Asia, and some in Latin America, and others.

And so 2025, there are a few more markets we’re going to open in Asia, like Japan, and Taiwan and others, and a few in South America. But more importantly, we’re going to be bringing our third generation to our entire footprint and that will certainly shameless power some growth for us. We like having our third, our second and third generation on the market. We, our ASP is about $2,700 for our second generation and $3,900 for our third generation plus software. And in certain situations, our second generation meets all the needs of the user and is much less expensive.

And in certain situations, they want the higher end product with a better image quality and they pay the higher price. But we don’t see the low price alternative part of the market. And a big part of our a good part of our business is global health and in being in markets that are definitely not as don’t have ultrasound as available. So, having both products is positive for us and throughout 2025 we’ll see market by market IQ3 being launched.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Got it. I want to just mention, I know you’ve previously mentioned EU expansion and MDR. I want to harp on not necessarily that, but you’ve previously discussed, you know, the petition, your petition to the EU to revoke the current exemption regarding Rojas for piezo electric, you know, ultrasound. I believe you previously stated you’d expect a decision somewhere late twenty twenty five, early ’20 ’20 ’6. You know, in the case of a positive decision, what do you kind of envision it more so stating, as well as how are you potentially gearing up for this, you know?

Joe DeVivo, President and CEO, Butterfly Network: So, just for the, you know, for those who don’t know what Rojas or actually Seamus, I went to the EU and met with the Rojas administrator and he corrected me. He says it’s Ross. So I have to I have to slowly undo my mispronunciation that I’ve educated you and others on. But the the Ross standards have been in place for eighteen years. And these standards are for all electronic devices.

You buy a toaster, you buy an iPhone, a TV or an ultrasound device. The EU wants toxic materials out of those devices. And but they’ve been amazingly tolerant and they’ll allow people to have an exemption if they can justify that there’s no other alternative. And so, the ultrasound industry in particular, every three to four years has been submitting a dossier through a third party, a trade association, saying that they’re not able to meet these environmental standards because there’s no alternative to the toxic materials they put in into those devices. What we’ve noticed and you know, butterfly is not made with a piezo lead crystal that has electricity pumped through it.

Were made with a clean green semiconductor. And we’ve met with the EU and the EU agrees that they should investigate whether or not we have equivalency to standard handheld ultrasound devices. We’ve submitted a dossier, that dossier has been accepted. The industry I believe has is submitting or has submitted a counter dossier and then a third party will review that information. We’re hoping that the review will be will end at the end of twenty twenty five.

And then they will make a decision and then the market can react to that decision. And then there’ll be eighteen, twelve to eighteen months to implement the decision. No matter which way you cut it, it’s inevitable that we will be on the market and it’s inevitable that the devices that are compatible to ours that are toxic will at some point in time come off the market. What does that mean? Does that mean that other companies will try to develop their own?

Does that mean we’ll work with those other companies? I don’t know exactly the formation of that, but the way we’re preparing is we’re just focusing on telling the truth and letting the data speak for itself. And then we’re making sure that we have distribution partners and all the EU participating companies, countries. So, if there was a positive decision and we’d have to, you know, show to the EU that we were capable of filling all the demand necessary to fulfill this requirement. We have basically, we have a highly scalable supply chain.

We could 5x, 10x our revenues within a very reasonable period of time. So it’s our supply chain won’t be the issue. It’s how do you train and how do you deploy and how do you get people converted. And I think it’s a little too early to say that you know, we have a conversion plan because that’d be pretty assumptive and it’s two years away. But it is right now, we are focusing our energy to make the argument and to win.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Got it. Appreciate that color. And I’ll have to remember how to pronounce that from now on going. I know.

Joe DeVivo, President and CEO, Butterfly Network: My first go to is Roxas. So that’s my bet. Moving on, we

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: have a client question that I’m going to interject with and I’m just going to read this verbatim. We understand the value add of IQ3 to doctors and nurses etcetera. Are there any liability issues with this medical device has to deal with? And again, I’m just trying to interpret this. I’m guessing in terms of potentially, I guess, nurses and some other, non doctors, non physicians that are using this, but.

Joe DeVivo, President and CEO, Butterfly Network: Well, we don’t sell it to non doctors. We don’t sell it to non healthcare professions. This is sold, maybe Heather can go through this. But we sell to healthcare professionals and healthcare professionals, you know, our liability is based upon the quality of our manufacturer, the quality and making sure that we live up to our claims and you know we don’t mislead etcetera. So that our device it does what it says.

It’s like you know we make a car and that car has to operate within the standards of safety etcetera etcetera etcetera. If someone drives it into a tree unless it’s been shown that something’s wrong with the car that made it drive into a tree. Our liability is based upon the development and our claims of our product. But Heather, do you want to comment at all of us? Sure.

Heather Goetz, Chief Financial and Operations Officer, Butterfly Network: Yeah. And and the other I think that that’s exactly correct. And and I think the other thing to point out is, we’re not offering a diagnosis. Right? We’re showing an image, and it’s up to the person who is interpreting that image to diagnose the the patient.

So they have their own professional liability. It’s no it’s no different than a technician taking an x-ray and a doctor looking at the x-ray and and making a diagnosis. That’s not that’s not Butterfly’s job. Butterfly’s job is to provide the image.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Got it. So, yeah. So it doesn’t really matter in terms of liability. It’s their interpretation. Right?

You’re just providing that media, so to speak. So

Joe DeVivo, President and CEO, Butterfly Network: Now if there’s AI tools that we have, then, you know, we have to make sure that the AI tools, like we have two today, one that counts to be lines and a lung, in a wet lung and another which is a bladder scanner. We again have to live by the claims of those and the quality standards that we’re representing those AI tools correctly. And that’s our burden and that’s as a medical company, you know, what we always pledge to do.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Got it. So as you guys start moving into special, I believe you’ve noted you’re starting to move into specialties with IQ3. Kind of, is there any roadmap that you can provide, you know, and I guess, how are you planning on, I guess, targeting specific specialties? Are you going from a top down at a maybe an enterprise level or bottom up? Now, I know you noted about a thousand physicians are ordering probes per quarter.

You know, I know you’ve previously noted as well that you’ve kind of used that to get into an enterprise kind of system. But I guess, can you break down, you know, on a bigger level and apologies for rambling on here, but where a lot of specialties have bought IQ probes and, you know, what’s kind of the first to that you’ll start tackling?

Joe DeVivo, President and CEO, Butterfly Network: So, so you’re right. You know, individual doctors have kind of self selected, you know, so we have primary care doctors, cardiologists, podiatrists, pediatricians, OBGYNs. We have, you know, all different types of doctors and with clinical specialties, nurses who will purchase the device, you know, vascular access, doctors that will all purchase the device for their use. But as we target a hospital, you know, we have done it historically department by department. And so the emergency room has been, it’s actually emergency room is where PointCare Ultrasound was created.

The emergency room doctors at Hennepin Hospital were really curious with ultrasound and wondered if it could be used in a trauma application. And so they begged the hospital that as they were upgrading their equipment not to throw away the old equipment and they just brought it into the ED and just started scanning. And they found, I think a particular use case around, pleural, the fluid in the pleural cavity, which and it was an indicator of a cardiac, a pre indication of a cardiac event that they found. And I, it was literally one hundred percent if they found this, there was gonna be a cardiac event. And that began the emergency room’s desire to now have ultrasound in it as a as a part of their diagnosis.

And so today, it’s a pretty mature market. Most emergency rooms have ultrasound and most, a lot of the emergency rooms have point of care, ultrasound or portable devices. But and so you go into emergency rooms first. But then you go into anesthesiology where they’re placing lines and they use ultrasound to place those lines. You go into the intensive care unit where ultrasound is used, whether it’s ordered by radiology or then you try to train the intensivists and hospitalists to be able to to use it real time.

It’s being used actively in cardiology. And whether it’s used in cardiology or the cath lab, you know, they’ll have very sophisticated ultrasound devices in the cath lab. So they will rarely have a portable device. But when the doctors do work outside the hospital, they will have a version of a portable device, especially when they’re rounding. And the cardiac application is very important because a lot of the cardiac scans are done by intensivists and are done in the emergency also.

So that’s a pretty frequent scanning of the heart and lung function. And then of course, OB is a very big ultrasound consumer. Again, they have a lot of different types of, you know, cart based ultrasounds for OB. But the concept of them becoming more mobile and having their own device. And then, you know, PICC lines that are being placed all over the hospital, even out of the hospital are areas where we target.

And then primary care is probably one of the biggest road opportunities is that the GPs would be able to just simply have that as an additional diagnostic tool and start reducing the chest x rays and others that take time and a lot of money where you can do a quick pulmonary scan with hypersensitivity. So we you know, as you package yourself, you sell one department, you sell another department, you sell another department. And then when you start building this kind of foothold and build some penetration, you then start talking to administrators about capturing that data and some software. And then you start talking to them about building a program throughout the hospital and building enterprise. And that’s kind of our progression and how we sell.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Got it. And kind of to follow-up on that, these large hospital enterprise deals, you know, I know you said you try to go to, you know, sometimes department, but by department, other times it’s kind of be all more all at once. What’s the status on some of these larger enterprise deals? If you could characterize any numbers that are potentially in the works, where kind of are they? You know, when might we see something that you guys can, you know, put out to the public?

Joe DeVivo, President and CEO, Butterfly Network: I think, I think we’re going to start seeing some this year. And I think we have to define what enterprise is. So, you know, we had a thought leader at University of Rochester who made a decision to deploy upwards of 900 probes at one time throughout the department and put software in place. I think those types of deals will be fewer and far between simply because point of care ultrasound is already being more and more prevalent through the hospital. And so an enterprise deal is having your software throughout all the departments.

So you link everyone together in your enterprise software and then you become a prime vendor. You are their handheld of choice. And so, we think that those types of deals where we go from having a couple of departments to now going throughout the enterprise. And if they already have 200 or 300, then your prime vendor and they will then continue to buy more. I think those are the kind of deals that we’re starting to stack up.

The ability to say, oh, well, we don’t we’ve never done it, system wide. We’re just going to press a button and then buy 2,000 probes tomorrow. I don’t know how many of those deals will be out there. But the ability of building out software and then having ourselves make our our probe of choice and having that be a part of their procurement pattern. And actually as we get into IQ4 and our next generation probe and the image quality starts to rival that of the low end carts, We think a lot of the hospitals budget that they currently have to refresh their current capital equipment will be allocated towards this and will start eating into that part of the business as well.

So, IQ3 has now made it possible to have these conversations. When I came here in 2023, I was very frustrated to see my Salesforce basically in the hood. We had just launched an enterprise software package and we launched it in the end of twenty twenty two. It is the first really powerful way to amalgamate all the ultrasound images and port data into the EMR impacts. And our sales force is so exciting selling it, they were selling it without selling as many probes.

They were just going hospital to hospital and selling software. And half of it was because our second generation wasn’t the hospital, wasn’t really there for hospital ultrasound. And I’m like how is it we’re spending all this time selling software and we’re not selling a complete bundle? Well I learned it was we weren’t ready. We’re ready with IQ3 and so that’s happening now.

And a lot of the conversations in our pipeline is filling with opportunities. And a lot of these hospitals don’t like you to put their name out there without vendors purchase. But as we sign these deals, even if we can’t mention their name, we will certainly be educating our investors of our success.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Got it. Got it. To turn away, you know, just switch gears a little bit, you know, Butterfly Garden. I know you guys noted some AI applications as well that you have. I guess, thinking on a different level, are you seeing any potential companies within there that you might wanna actually bring them in house within Butterfly and integrate them into the system?

Or, you know, I guess, is that a potential possibility? Or is kind of everything just let these other companies operate and utilize Butterfly as a, just utilize Butterfly in the imaging capabilities and whatnot?

Joe DeVivo, President and CEO, Butterfly Network: So, the answer is yes. And so there, we have a three pronged strategy. You know, the first part of our strategy is we have the largest private image database in the world of 25,000,000 and growing by 20,000 a day. And that gives us tremendous power to run AI algorithms through that type of data. Typically, ultrasound AI companies will develop algorithms and then spend a lot of money and time trying to get that algorithm over a lot of data and a lot of experiences and we can do that very quickly.

So the development, but we’re focusing on developing AI that only we can develop, that are that are a function that benefits from our ultrasound on chip. And a lot of that would have to do with how we scan and how we can do things that normal ultrasound can’t. Second, we don’t want to compete with the market. We want to amplify the market. And so we want to be the place where those garden partners can come and we want the we want to amplify their abilities and, and, and whatnot.

But yeah, if there is one that becomes core, we would certainly consider acquiring. And actually, there is one that we consider core right now and we have, we are actively bringing it into our platform and that is a gestational age calculator, that we are working on with the University of North Carolina. And the Gates Foundation, the Gates Foundation has funded the early work of this calculator. And we’ve, we’ve done a lot of work with Gates and we’ve done a lot of work in Kenya and in South Africa teaching midwives how to do fetal positioning for childbirth. And one of the major challenges is they don’t know the age of the fetus.

So they don’t know when, the, you know, when the, the due date will be for that child. And that’s, you know, it’s not very easy to get to a medical clinic and it’s and there’s has to be a lot of planning and timing and whatnot. Where we have an application based upon this that you simply can place it onto the the the uterus, the pregnant uterus and you can paint it up and down and then it’ll tell you how old the child is. It’s pretty wicked. And so we are taking that AI application and we are embedding it into our core software and it’ll be you can pick bladder scanning, you can pick beeline pulmonary scanning, you can pick gestational age and that’ll be in the platform.

And when we see AI applications that have a large, you know, global implications, we’ll either develop it or acquire it. And, and we want our, you know, we want our garden partners to have a great they all want exits, right? They all want the ability to monetize and have an exit and we certainly can be an avenue for that.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Got it. That’s good to note and appreciate that. Any timeline you can give on that integration if I’m not pushing too?

Joe DeVivo, President and CEO, Butterfly Network: Before the end of twenty twenty five. We’re actually it’s actually integrated. It’s actually more, doing the regulatory work to receive the FDA clearance.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Got it. Heather, just a few ones for you. From a gross margin perspective, kind of how has optimization worked with running both IQ plus and IQ three lines? When you and thinking through when you guys bring IQ four on as well, will you just run two platforms? Will you run three?

Just trying to think through how you guys can potentially optimize kind of gross margin and some of those other costs as you are running multiple platforms.

Heather Goetz, Chief Financial and Operations Officer, Butterfly Network: Sure. So the production of IQ plus was optimized leading into the IQ3 and basically, will run the full line for a period of time producing one product or the other, right? So we’re not running them simultaneously. We have a dedicated line and we have all the kinks worked out of the IQ plus With IQ3, right now that’s primarily what we’re producing. And we still have some efficiencies to be able to gain from the ongoing production of that product.

When it comes to IQ4, we will need to evaluate the market and make a determination of what makes sense overall based on our customer demand. I think that we can agree that right now we do see IQ plus as a strong workhorse in the market and expect to be able to continue to sell that into the market for the near term.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Got it. Appreciate that. And then I know at your Investor Day, about a year ago almost to the day, I think, you noted about a $500,000,000 It is probably almost to the day. I’m sorry? It is

Joe DeVivo, President and CEO, Butterfly Network: probably almost to the day.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Yes. On the 500,000,000 revenue by 02/1930 goal, I think you had noted a five year organic revenue cadre about 35%. You know, the guidance you guys gave for 2025 is about 20% growth. So I guess as we stand here today, should we think, you know, is this going to be a more back half loaded kind of goal, so to speak? Or just when should we anticipate, you know, I guess, a step change in growth potentially kicking in?

Heather Goetz, Chief Financial and Operations Officer, Butterfly Network: So just, just to level set on that projection. So, yes, it was a goal by 02/1930 to hit $500,000,000 and what that actually did contemplate was a 20% growth rate on the core business. And then layering in the additional growth initiatives, including both home and Octave, and they are both underway and both on track based on what our assumptions were in that overall forecast. Joe, did you want to add anything to that?

Joe DeVivo, President and CEO, Butterfly Network: I could, but you pretty much nailed it. I mean, you saw the settlement chart, Seamus, it was pretty back end loaded. But what was it, the first layer of the sediment was a 20% straight line. So we think we can deliver 20% growth. I mean, the concept that we’re going to go from 14% to 16% to 33% to 35% to what, 45%, sixty %, eighty %.

You know, it’s, you know, we’re anniversarying a pretty weak year and now we’re anniversarying a really strong year. And so we think 20% is the right way to guide investors. But we certainly, Heather was very clear in her guidance, that this is a baseline. And we have two opportunities we’re developing that we’re not forecasting, that we’re not guiding, that can be completely incremental to that forecast. So, we and that sediment chart built opportunities on top of that 20%.

And so, we’re delivering exactly what we said we would do exactly a year ago today.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Got it. I appreciate that. And we are, I believe, up on time. Just one last quick one for you guys. You noted it earlier, the home bladder program, any updates that you can provide?

When should we expect some potential more, you know, a little bit more info on that?

Joe DeVivo, President and CEO, Butterfly Network: So the home bladder, right now we are focusing our energy on our home care business. Because, you know, we have the, we do have an AI tool that can, that can get a three d bladder. There is, we have done some studies around self scanning. The Christopher Reeves Foundation is actually doing a study to identify can their members use ultrasound in a wheelchair to be able to determine their bladder since they have to self catheterize, they can’t feel if their bladder is full. And there’s medical issues if you either over catheterize or wait too long.

So, that’s happening. But what we’ve pivoted to is to focus on how we can build a use case initially, with partners who are managing patients at risk. And we do have a partner, we are doing a 200 patient study in skilled nursing facilities to help keep congestive heart failure patients from readmitting in the hospital. We’re doing 200 patients over six months, which should end sometime in June. And that home care work is really important because we’re teaching nurses who didn’t have prior ultrasound experience or ultrasound capability, how to use an AI tool to do a pulmonary scan and to do a pulmonary scan when the patients come back from the hospital.

And we’ve already found some pretty amazing things, you know, and they’re on both ends of the spectrum. So, you know, one patient came in, was did very well in the hospital, the lungs were dry. But the prescription, that they had was for a very high dose of diuretic. Now, a diuretic is basically will dehydrate you, takes fluid out of the body. And had that prescription been given that patient, they would have not only experienced systemic dehydration, they would have had renal failure, they’re being readmitted for a different reason in the hospital.

And that all was avoided because the nurses were able to do an ultrasound scan, Butterfly was able to train them, help bring that scan into our cloud and then have a remote physician, give them an expert consultation. The exact opposite had happened where someone was discharged from the hospital with a lot of beat lines, still very wet pulmonary wise and had a very low diuretic prescription. And, the cardiologist found that after they did the scan and they modified them. So, you know, we’re helping them make better decisions. We’re helping them get real time data and input.

And we hope that that then translates into a model where they institutionalize nurses using ultrasound. And then if it’s institutionalized that ultrasound becomes this way of doing this diagnosis, then we will have other use cases bladder and then we will start creating devices specifically for those applications. So the tip of the spear for us is this pilot and the work that we’re doing in this application.

Seamus Contorno, Oppenheimer Analyst, Oppenheimer: Got it. Appreciate that. And thank you both for a very exciting conversation. There’s a lot to come to say the least. So appreciate all you online tuning in as well.

And thank you again.

Heather Goetz, Chief Financial and Operations Officer, Butterfly Network: Appreciate it. Thanks, Seamus.

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