Butterfly Network, Inc.

Ladies and gentlemen, thank you for joining today's call. The call will begin momentarily. Please remain on the line. Again, the call will begin momentarily. Thank you. Ladies and gentlemen, thank you for joining today's call. The call will begin momentarily. Please remain on the line. Again, the call will begin momentarily. Thank you. Good afternoon. Thank you for attending today's Butterfly Network Q4 and fiscal year 2023 earnings call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to queue for a question on today's call, you can do so by dialing star one on your telephone keypad. I would now like to hand the call over to

Good afternoon, everyone, and thank you for joining us today. Earlier today, Butterfly released financial results for the fourth quarter ended December 31st, 2023, and provided a business update. The release and earnings presentation, which include a reconciliations and management use of non-GAAP financial measures compared to the most applicable GAAP measures are currently available on the investor section of the company's website at ir.butterflynetwork.com. I, Heather Goetz, Chief Financial and Operations Officer of Butterfly, alongside Joseph DeVito, Butterfly's Chairman and Chief Executive Officer, will host this afternoon's call. During today's call, we will be making certain forward-looking statements. These statements may include, among other things, expectations with respect to financial results, future performance, development and commercialization of products and services, potential regulatory approvals, and the size and potential growth of our current or future markets for our products and services. These forward-looking statements are based on current information, assumptions, and expectations that are subject to change and involve a number of known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those contained in the forward-looking statements. These and other risks are described in our filing made with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, and the company disclaims any obligation to update such statements. As a reminder, this call is being webcast live and recorded, and we will be referencing a slide presentation in conjunction with our remarks. There may be a short delay between the live audio and the presentation being shown, and the slides visible within the webcast platform will also not play animations. To access the animated versions of our slides, visit the events section of our investor website. And then under upcoming events, you will see today's earnings call with an option to click called presentation with animated videos. On the same page, you will also be able to access the webcast live and as a replay once the call has been completed. I would now like to turn the call over to Joe. Joe?

Thank you, Heather. Good afternoon, and thanks for joining the call, everyone. I'm pleased to report that our 2023 revenue finished at $65.9 million worldwide, above our expectations of at least $64 million. I was pleased to see each one of our channels performing well as we headed into 2024. In fact, our Q4 and full-year direct sale revenues grew 10% and 11% year over year. Moving forward, we have every opportunity to realize growth across all of our channels and grow the company double digits in 2024 while investing efficiently. Over the last 18 months, we removed over $170 million of cash costs from the business, yet continue to invest in our technology roadmap and our commercial team. 2023 was a necessary transition year for the company. We chose to resize the business and focus our strategy. We've matured as a company and can now rely less and less on online sales and more on higher-end hospital sales. The operational disruption is over. Our sights are set today on growth of our existing business, new products recently launched, and building new market opportunities only ultrasound on chip technology can deliver. During my first full call last year, I laid out what we would deliver in 2023 to set the foundation for growth in 2024. It was, one, introducing new ultrasound education offerings, to make POCUS accessible to healthcare providers and grow our users. Two, accelerate the ease of use by increasing the availability of AI solutions. Three, identifying new development partnerships to bring our core technologies into markets that are not competitive to butterfly, but will create value for shareholders by leveraging our core semiconductor investment. And four, introduce more products from our roadmap to drive top line growth. I'm very pleased to say that we've completed each of these commitments. One, for new education offerings, we delivered Butterfly Certified, an expert-led education services helping customers master point of care ultrasound with Butterfly by training and certifying proficiency in certain scan types. This offering was operationalized very quickly. We've already seen Butterfly Certified revenue, we've embedded education as a service into all of our quotations to health systems going forward two on the ai offerings we received fda clearance and launched our ai powered auto beeline counter in the second quarter of 2023 it was a key fda ai milestone for us we also launched butterfly garden our ai marketplace since 2018 we've grown a leading customer base of over 143,000 probes, and now third-party ultrasound AI companies can build and sell new AI applications to them. These new AI tools, which will be compatible with Butterfly devices, will be incredibly valuable to all Butterfly users. We signed 13 partners to date, and our newest partner, DeepEcho, just press released their entrance into the program this week. Three, we've announced previously that we delivered on the core technology partnerships by successfully launching our Powered by Butterfly program in 2023 and introducing Forrest Neurotech and Mandera as initial partners. Four, and lastly, we delivered ahead of schedule on two key product launches, NLAB and IQ3, which I will review in more detail in just a bit. We butterfly employees are very proud of our accomplishments in 2023. We weathered the storm, stayed together, delivered on our destruction goals while implementing our core priorities and investing in our commercial organization. Thus, we've set ourselves up in 2024 to be laser focused on revenue execution. At this point, I'll turn the call over to Heather to walk through 2023 results in more detail before returning to our 2024 execution strategy. Heather?