Butterfly Network, Inc.

Good morning and welcome to the Butterfly Network first quarter 2025 earnings call. My name is Carla and I will be coordinating your call today. During the presentation, you can register to ask questions by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. I would now like to hand you over to the Chief Financial Officer, Heather Gatz to begin. Heather, please go ahead when you're ready.

Good morning and thank you for joining us. Earlier today, Butterfly released financial results for the first quarter ended March 31, 2025, and provided a business update. The release and earnings presentation, which include a reconciliation of management's 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 at Butterfly, alongside Joseph DeVivo, Butterfly's Chairman and Chief Executive Officer, will host this morning's call. During today's call, we will make 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, uncertainties regarding the potential impact of healthcare funding, and the size and potential growth of 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 filings 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. To access the webcast, please visit the events section of our investor website. A replay will also be available on the page following the call. I would now like to turn the call over to Joe. Joe?

Good morning, everyone, and thank you for being with us on our first quarter 2025 call. We're pleased to deliver another quality quarter in line with our guidance of 20% growth and making meaningful profitability improvement with gross margins of 63%, while improving adjusted EBITDA loss from 13.2 million a year ago to 9.1 million now. We accomplished this while delivering our strategic priorities and now a quarter into year two of our five-year plan. When I joined two years ago, Butterfly was selling an IQ probe with a subscription software as well as an enterprise software program. Now today, our portfolio includes two generations of probes with different price points. which allows us to bring in more value for premium technology while keeping a lower-cost probe on the market for more prey-sensitive customers. We've added an AI marketplace called Butterfly Garden, a chip licensing program called Octave, and now Butterfly Home Care. You heard about progress setting up each of these programs over the last couple of years, and now in 2025, we expect them to make headway and begin contributing revenue. We've upheld our commitment to R&D, helping us maintain our leadership in focused technology and stay ahead of the first mover status in digital, cloud-connected, open platform, and EMR-integrated systems. I'll share more on this, including the upcoming launch of Compass 2.0 towards the end of the call. I'm very pleased with how our company is maturing, diversifying to have many paths to growth. This will build upon our resilience and ability to consistently deliver our results. So let's jump in with our core focus business. The first half of our fiscal year is usually filled with medical school opportunities, and this quarter was no different. It's clear that students want to begin their medical training with a butterfly of their own. The transformation from schools having a few probes in the laboratory for many students to share to a personal probe being purchased for each four-year student is well on its way. During the quarter, we saw more schools sign up for student probe programs. Among them was one of the country's largest colleges of osteopathic medicine who placed an order for one probe per student and committed to this model going forward. Schools are also lining up through the creation of their own campus stores for students to buy or just incorporating the device into the cost of tuition. We've been building our strategy for years to target medical schools, much like Apple has. So when students first got their Apple laptop, it opened the door to build a lifetime of brand loyalty. Similarly, when students start their ultrasound journey with Butterfly, it builds a path to loyal users for the future generations of our technology. So to remind you, there's about 25,000 incoming first-year students a year that start medical school And in 2025, we're going to see the first graduating class who's had four years of training on a butterfly. And when they go into residency, they'll be clearly distinguished and simply better residents than their peers without that training. This is how the flywheel turns. We are also making very good progress on our enterprise hospital selling program. We're on the verge of signing our second hospital enterprise customer who plans to integrate our Compass software. throughout every department and hospital in their network. They've amassed about 600 probes in circulation and have committed to Butterfly as their focus probe of choice for the future. We do not yet have permission to share their name at this time, but I will say they're consistently voted one of the top five hospitals in the world. This will be another tailwind for our enterprise strategy. And as you know, hospitals learn from each other and even more from the most respected. I am very pleased with this accomplishment, and this will add momentum to the pipeline that we're working. On the international front, our focus remains on bringing IQ3 to more areas while continuing our expansion in Asia and Latin America, as well as high potential global health markets. I'd like to briefly comment here on some economic headwinds, first on the global health front. As you all know, Butterfly partners with over 800 NGOs worldwide. to bring imaging to low- and middle-income countries that historically had no access. This has been a growing part of our international revenue base. With USAID funding cuts, we've seen several opportunities get delayed this quarter while partners recalibrate. We're hopeful that this is a temporary disruption and that our growing ties with ministries of health and charitable organizations can help sustain the progress regardless. We're also closely monitoring discussions on broader economic pressures, which, if anything, can cause some deals to take longer to close. Heather will provide additional context on this, along with her analysis of the tariff impacts. So before I get into updates on strategic initiatives, I'll turn it over to Heather to walk you through the numbers. Heather?