Good morning, everyone. My name is Cindy Shen. I'm an associate from the JPMorgan Investment Banking team. Our next presentation will be with Butterfly Network. The presenter from the company is the CEO, Joseph DeVivo, and we're also joined by the CFO, Heather Getz, on the stage. With that, I'm going to hand over to Joseph. Thank you, Cindy, and thank you, JPMorgan. We're always so honored to be invited to this conference, to start off the year, meet everybody, talk to investors, lay out a strategy. It's just unbelievable. So thank you so much. We also have our founder, one of our founders here from Butterfly, Dr. Nevada Sanchez. So happy to have him here, and he'll be able to answer some questions if we have them later. So I'm going to be going through a deck, kind of laying the framework of Butterfly. So on one side, you know, if you don't know Butterfly, I'm going to kind of lay it out for you, but I'm also going to give some updates for those of you who are following Butterfly. As you see in this image, we are an ultrasound company, a point-of-care ultrasound company, and a company that has an incredibly powerful technology, a technology that can bring imaging in a very cost-effective way everywhere in the world and do so at scale. We have a tremendously strong product portfolio of software and technology, and that technology is low cost, is durable, and we believe every doctor in the world, every nurse in the world will have one in the future. 2024 was a great year for Butterfly. If you're following us, we had a couple of really tough years. 2023 was a significant restructuring year where, from the end of 2022 into 2023, we took a lot of cost out. We went through a lot of disruption. We focused the business, and we aligned around several key priorities. And those priorities allowed us, as a smaller organization, a more focused organization, to execute and to deliver and to lay out a plan. In March of 2024, we had an investor day. It's a four-hour presentation, 200 slides, and we laid out a plan, and we told everyone exactly what we would do. And we've done it, and we're marching to that plan. So if you want to really understand what our plan is, it's all laid out there for you and what we'll do over the next five years. But we had increasing revenue through every quarter in 2024, increasing growth. So we had a 14% growth in the first quarter, 16% in the second quarter, 33% in the third quarter, and we pre-announced last week a 35% growth quarter for the fourth quarter, which makes it a 25% year for the year. We anniversaried, of course, a pretty weak year of 2023, but that growth was real, and that growth was exciting because that growth was not dependent upon any one occurrence, any one deal, any one outcome that has to be anniversary that we can't repeat. It was a groundswell of consumption of a brand new product, iQ3, and a really focused execution from the team. And just to highlight this pin I have on my lapel and that medal that you see, we won the highest award in healthcare. The highest award is the Prix Galien Award. There are four awards for drugs and drug innovations, and typically they're awarded to Nobel laureates. And I went to this ceremony. It felt like the Oscars. They give one award for med tech, one. If you look at the list of companies, there were 25, and this was for the best product of 2024, best innovation and impact in society. If you look at the 29 other companies that were honored, like ourselves, to be nominated, it was an incredible group of people to be associated with. We became the one of Fierce 50 award also and had so many different acknowledgments on the accomplishment of the Butterfly team. I'm proud of Butterfly. I'm proud of our team. Let me just now unpack the story for you a little bit further. We all know this. Supercomputers used to be huge. I see a couple of you old enough here to remember what they actually looked like. Some of you, that was a supercomputer in the past. Now you carry these in your pocket. The devices in your pocket today are more powerful than the largest machines that existed 20 years ago. That exact same thing is happening today in medical imaging. Imaging devices are huge, but now in the future, it'll be in the pocket of every doctor and every nurse with tremendous compute power and tremendous capability to link and be networked and to allow for immediacy of imaging and diagnoses. For those of you who know the Butterfly story, I apologize. I say this over and over again because I think this is really important because I love analogies. I love being able to learn from history how things were done and then correlate them to something you're doing because it really brings these things in focus. But famously, in the mid-1990s, Kodak launched a digital camera. And I say famously because two years later, they shut the program down. Everyone was so excited about a digital photograph. Everyone was excited to not have to develop film. And here's the company that has 80% market share on film, self-disrupting themselves. But they shut the program down because even though digital had all this great promise, it was a one-megapixel image, one megapixel. So when you zoom in on it, it just pixelates, and no one felt comfortable having their family pictures converted into digital when you couldn't really see them that well. So they shut the program down, and that case study sits in business schools throughout the world. But other companies said, "No, this is a great idea." And Toshiba, Canon, Fuji, other great imaging companies said, "No, we have to keep investing in the processor. You keep investing in the processor, you keep improving your image quality, then you'll benefit from all of that digital capability," and we've seen this happen over and over and over again, whether it's streaming digital versus analog. Whenever digital equals the capabilities and the primary performance of an analog, digital then wins for all the other knockdown benefits. This is what's going to happen in ultrasound, and at this time, when they had a three-megapixel image, a five-megapixel image, a seven-megapixel image, in 2003 was the first year that digital cameras outsold film, and they've never looked back. Film now is an art form. It's not a practical business, and this is all based on semiconductor technology. We all know Moore's Law. Every 18 months, processing power doubles, and that's been true for the last 60-some-odd years. And Butterfly is the first company to commercialize a semiconductor with a MEMS wafer. That MEMS wafer, as you see in the image on the left, you see all those dots. Those are little vibrating drums, and there are 7,000 drums that sit on a circuit that we can control each drum individually. Think of that drum like a pixel on a TV screen. You change the color of that pixel, but then you back up, and then you change all the different colors, and you have a picture. And we control that. We make this happen. And so what you see on the right is an array. This is a typical phased array that any ultrasound device would use in order to see a certain level of anatomy. And there would be one ultrasound device with piezo crystals that are pre-tuned to deliver just that frequency. So if you want the phased array probe, you pick up that probe. If you want the linear array probe, you go pick up that probe. It's a second probe. You want the curvilinear probe, you go pick up that probe. But because now we have the only semiconductor in the world that can deliver this type of sound at scale, you just have one device. You have one device that can image the entire body. And while other companies sell these individual probes between $5,000-$7,000 each, so plus, plus, plus, $15,000 to $20,000 you'd have to have, three different devices and battery and whatnot, you have one $4,000 Butterfly. But it doesn't stop there. Because we're digital, it doesn't mean that we just have to do the status quo. Because this little device does biplane imaging. We can see two planes at the same time, which is really useful for vascular access when you want to see the horizontal view of the vessel and also the cross-section, so you know that your needle is accurate, and this feature exists in very expensive carts where they actually organize the crystals in a cross, and it's extremely expensive. Here, if you just want to toggle to biplane, you toggle to biplane, or if you want to do 3D imaging, you just toggle to that feature, or we're the only device in the world. There are very expensive carts that have windshield wiper-like probes with their lenses on them in order to do this type of fan. We just change a setting, and you can hold the probe in one place, and you can move the beam and fan the beam. We're the only company in the world that also not only can move that beam, but like a burst image on your iPhone, if you hold, when you take a picture, if you hold it down, you go and you take a bunch of images quickly. Well, we can take 42 images in one second, and then the doctor can cycle through each image. And if you're looking at a cyst, for example, you know as you cycle through images on a CT, you see it kind of gets bigger and bigger and bigger and then smaller. You back up to the biggest one, and then that's the one you use to measure on. So the biggest thing now is we're creating an incredibly powerful device that can help people at the point of care. So we have our device, but we also have our software. We have to use very sophisticated software to operate this device and to maximize it. We also have to capture data in a way where facilities can port this data into health records, and we also have advanced AI tools, and I'll unpack a few of these, and then education, as you see in ScanLab, we'll talk about in a moment, but our AI tools, our software, and our ability to educate is core to growing this market because if you don't know how to use ultrasound, then everyone having one is not going to be very helpful. I tell my employees that the mission is the mission. We don't need to change our behaviors to make ourselves feel better because we know that two-thirds of the world today doesn't have access to imaging. So how do you think a $4,000 device that can be sent anywhere in the world that does the entire body imaging can do for them? We are in military zones today. We have 1,000 of these in Ukraine where every medic has one. They're not going to have three devices with poor battery. They're going to have one that they can deploy easily and quickly. We have devices in Israel and Gaza for this crisis. We have devices all throughout Africa where they don't have access to imaging. We're changing the world, and it's a wonderful thing. I've been in healthcare for 32 years, and this is probably one of the most wonderful mission-driven companies because what we do impacts people's lives. We amplify physician capability. And when you can diagnose at that moment instead of waiting and sending off for a test and having all of the cost and leakage of that, it's incredibly powerful. And this is what drives us because the mission is the mission. So we talked about three-megapixel, five-megapixel, seven-megapixel. What does it take to build equivalency? Well, we've had our first-generation chip, our second-generation chip, and that guy back there is responsible for the core technology of our development. And so as you continue to develop your chip and your processing power, you increase the power of the device. Well, we just launched in February our third-generation device. And you see here the 9.6. We have doubled the processing power of our device. And in doubling the processing power of our device, it has taken a major step in improving our image quality because Butterfly was cool. Butterfly was this great device you could buy, and you could look in the body. But people would start saying, "You know, that's really good, but you're not going to use it in the hospital. You're not going to use it for subspecialty care. You're not going to use it for this particular use case or that particular use case." Well, you're wrong. Because as the processor gets better and better and the image quality gets better and better, we are able to do those more complex cases. And we're not stopping there. So what powered this great year and what will power another great year is iQ3 and penetrating the market and getting this fantastic technology continuously to grow. But we're not stopping there. We've now completed the research on our fourth-generation chip. I'm going to show you an image in a moment that starts showing you how we're making these improved leaps and how it's going to continue. I kind of feel like with the year that we've had this year, it's all been about reaching to equivalency. We have to be equal to the other people. We have to get our image quality as good as everyone else. All right, done. Our image quality now on handhelds is as good as any other device out there. We are entering the next phase of Butterfly where we are now going to be better than everybody else. And our innovation curve is our semiconductor curve. As we have more processors and better processors, we're going to be better. I'm telling you that those crystals and that physics can't get any better. They've been optimized over 40 years. They can modify software, this and that, but our ability to miniaturize and our ability to improve, we're entering the next phase where Butterfly is going to start changing ultrasound. We're not trying to just get equivalent. We're going to change the path, and I'll show you a little bit in the future. Because our fourth generation, we have slayed a dragon. We've actually gotten to a place where there's a myth in anyone who understands CMUT technology that we will not have mechanical impedance, and that's a pressure that you need in order to get something called harmonics through tissue, well, our engineers solved for mechanical impedance. We did something to our MEMS technology that increased our mechanical pressure and now allows us to have harmonics, and what we did to compensate for it in the past was have advanced digital image processing. We would do all types of things to the image to enhance the image in order to get there because we didn't have mechanical impedance. Now we have mechanical impedance. Now we do. And so our fifth-generation chip that this gentleman in the back is very much responsible for also will be insane. This one is probably three to five years out, and it'll have 20 times the processing power of the current product. What do you think will happen when we have that technology out? So we are investing heavily in the roadmap, and we are changing the way things are done. And one of the things that's fascinating is, as you look at that, go back to that analogy of the phone, the digital phone, and think about what phone or what, I'm sorry, digital camera. What camera are you using? What's he using right now? He's using a camera that's sitting inside his phone. Why? Because it only takes up 15% of the real estate inside the phone. So we not only have advanced image quality, but we have miniaturization. And the ultrasound device of the future will be this big. And you'll be able to put it on a patient. And remember that beam moving? You'll be able to move the beam and do a scan. And so we are now going to change the world. Becoming equivalent to someone else is not our goal. And this kind of shows you a bit of our evolution. So the iQ image is where we are today. And P5 is an image that'll be out in the next couple of years. But you can see why in the beginning people are like, "Hey, well, that's really interesting, but we're not going to use that for an inpatient." You can see the evolution, and it takes that evolution. And I'm proud of Butterfly. I'm proud of our investors. I'm proud of our employees to sticking to it. We didn't give up like Kodak did. We're sticking to it. And now with this equivalence, we're getting to an entirely different level. Mindray is an incredible company. They have technology everywhere. And we look at them and GE, but we look at them as a benchmark. This is a $32,000 best-selling cart in a hospital. And so our fourth-generation chip will have image quality that will rival the absolute best in the market and the best-selling in the market for a fraction of the cost. And this is what we are all striving for. Because really, the handheld market, the point-of-care market is not large yet. The opportunity is insane, but it's not large yet, but as our image processor gets better and we are now getting into different subspecialties and empowering clinicians to have that power wherever they are, the market for Butterfly and the direct market increases, so we're in this big market development mode, training people, going into homes, helping nurses, going into clinics, going into the ambulance, having online training tools, having digital training tools, but also now we're starting to have conversations saying, "Well, we have a budget to refresh our carts over next year. We have 20 carts in our budget. Maybe we only get 10, and we'll buy a couple hundred Butterflies." Those conversations now are starting to happen, and the results that hospitals are seeing are impactful. University of Rochester Medical Center has a great visionary leader in Dr. Rotondo, and doctors want to be better doctors. Doctors want to be educated. They want to have better tools. They want to be able to make a faster impact for their patient because the faster you diagnose something and the more rapidly you diagnose something, the quicker you intervene and the better care you give and the lower the costs are. At Rochester, they gave 900 probes out to all their doctors and medical students. Then they tracked that activity over a 14-month period. What they found was a significant 116% increase in their revenue. They saw an increase in their capture. Our software is so powerful that a lot of times people pick up ultrasound, do a scan, put it down. They don't put the scan in the medical record. They don't submit it for reimbursement because it's complicated and not integrated. Our enterprise software makes it easy for them to capture those images. On average, when we go into an account, the account basically, especially for point of care, is only capturing about 35% of the images. With our software and our platform, Rochester had 77% image capture. What do you think that did to revenue? The results are coming in, and there's about 1,500-1,600 papers in publication a year on point of care ultrasound. This has been happening now for 10 to 15 years. We're coming of age. This is growing. I believe now this is not just going to be an organic effort that's bottoms up. I think today, if you were able to see the activity of any hospital out there, about 10% of their doctors have purchased their own Butterfly without the institutional support of the institution. They just said, "I want this," and they bought it. They go online. We sell about 1,000 devices a quarter to individual doctors who go to our website just to buy it for their own use, and so there's a viral groundswell, and now we're matching that with activities at the institution's top down to say, "You need to now, there's an opportunity here to build out a better care paradigm," and the market for that now dramatically grows. And if you think of the core focus and then the other slide we showed you getting into ultimate hospital ultrasound, our direct TAM grows, but then getting into we're going to get into home care facilities, long-term care facilities, and also in helping patients be managed in the home. And I have an example of that I'm going to share with you in a moment. So our TAM is increasing dramatically with our roadmap. And medical schools are training kids on Butterfly, not on ultrasound, on Butterfly. I think there's about 70% of the medical schools now have Butterfly, and they put them in their labs, and they teach their kids. And there are graduating classes now who've gone through medical school with that ultrasound training going into residency. There are residents that have been trained who are now going into practice. So this is a fait accompli. If anyone questions that every doctor will have imaging, you're wrong. Because they've already made this decision. The kids want this as a capability. We just need to make it affordable, and we need to make it easy. And it's very, very exciting. And what's recently happened is they're realizing that you have to practice to be good. You can't just go to a lab, do some scans, and then go back. So they're actually giving each one of the kids their own Butterfly. There's 25,000 new students in medical school a year, and it's not inconceivable that over time, each of those kids, just like they get their laptop, they get their supplies, they go to the campus store, and then they get their Butterfly. And they've been doing that now. We have 20 campus stores online set up for kids with an Apple-like discount, and we're ingratiating ourselves and building our brand with future users. And in order to improve that competency, we have advanced AI tools. And in our cloud, we have 21 million images. We have 40,000 new images a day streaming into our cloud because all of our devices are connected. And then we learn from that anonymized data, and we train on it. And what you see in this image is the ability to say, "I'm going to do a lung exam. I'm going to position my probe," and it shows you what your image should look like. Then when you position your probe in that preset, there's AI labels that go on the image live, and it'll tell you, "Hey, that's the left ventricle. That's the right ventricle. That's the mitral valve. That's the septum," literally alive on your screen, so not only do you train them, but they can continue to learn on their own, and what's so amazing is that Kansas City University actually set the first-year curriculum around ScanLab, so their basic curriculum is, "Do this preset and capture that image," or, "Do this scan with this particular angle and capture it," and as you saw all those dots on the screen, there's like 14 different places to place the probe, and their first-year curriculum is to practice with an AI tutor. Because this has always been hard in the past because each student can't have an instructor looking over their shoulder all day long, so having an AI tool where they can practice and practice and practice makes this a real part of accelerating their abilities. The other thing that's going to accelerate their abilities is AI. Hot buzz term, but actually we operationalize it. There are over 50, maybe 100 companies that are developing new AI tools today to make it easier to interpret an image, to make it easier to identify what something is, and then to make it easier to make a decision on what can or can't be done. So we've launched something called Butterfly Garden. We have an SDK, and once we create a partnership, we expose our system to that developer, and we allow them to link into our platform. And the way it works is, and we have 17 partnerships today, I believe it's six of which this year will have FDA approval and will be clinically available. Those are six new AI tools that will go into the App Store. You buy the app, you get the keys from the company, you open their app on your iPhone, you plug in your Butterfly, and then all the data from the Butterfly populates their algorithms, and now you can have an advanced DVT tool. You can have an advanced echo tool. You can have an advanced lung tool. You can have an advanced kidney tool, so all these tools now are going to make it easier to do ultrasound. You're not going to have to actually go through the full learning curve to be an ultrasonographer to be able to capture an image, and then because we're completely virtual, they can capture an image in the home and then send it to a doctor to read or a cardiac nurse or someone who is properly qualified to read that image, and that's the future. And that's the acceleration, and that's the flywheel. Because kids are learning in medical school their core skills, but over time, these new advanced AI tools are going to be able to populate the capability. We're the only company that's completely networked. When you buy a car, you drive it off the lot, and it depreciates. When you buy a Butterfly, it gets better. It gets better because just like your iPhone, your iPhone gets a software update pushed once a month, right? Once every couple of months, you get a new update. Bug fixes, new features, new capabilities. That's what happens with the Butterfly. We're completely networked. We listen to our customers. We improve our products. We then push those updates on a monthly basis out and constantly become better and better and better. Then, of course, by having our apps, it allows for it to become more capable. I mean, how many devices has the iPhone obsoleted, right? How many devices do you not buy today because you have the iPhone? That's Butterfly. Now what it does is it unleashes the power of the clinician. There's only 80,000 ultrasonographers, 82,000 in the United States, but there's a massive waiting line, and there's a massive need for more imaging. So now, by having a powerful Butterfly, doctors can be in their doctor office. They can go into a clinic. They can go into a hospital. They can go into a home and provide the same type of imaging and care as they would if they were in that clinical setting. The mobility and the freedom that this provides is substantial. So we're a semiconductor company. We're an ultrasound company, but we're also now going to be a service business. We're actually going to provide services. I mentioned to everyone on our last conference call that we were signing up a pilot with the largest Medicare plan. Can I say it? Can I say it now? Yeah? So we've signed a deal to do a pilot with Optum. And the goal is to help manage patients or people in skilled nursing facilities. Because as many of you know, there's a revolving door where they get sick, go into the hospital, and then go back to the skilled nursing facility, get sick, go back to the hospital. And when now you're capitated and have to have responsibility for that, it's very expensive. It's very expensive, and they deserve better. We just did a press release a couple of days ago about a study that came out of Rutgers Robert Wood Johnson. What they did was there were two different groups. There was one group of intensivists who provided intensive care for those patients, and another group of intensive care doctors with another group of patients where they provided standard of care plus Butterfly. They correlated it to be exact of 84 in each group with exactly the same disease state, so there's no outlier. And they had to then they segmented it by sick patients and really sick patients, low acuity, high acuity. In the normal group, it was 6.7 days is how many days that they would stay in the ICU. In the Butterfly group, it was 5.5 days. That's 1.1, 1.2 days less just because they were using Butterfly. And if you calculate a hospital day over those patients, that's a lot of money in the hospital saving or a lot of additional revenue by getting them out of the bed and bringing more people in. In the sick group, it went from about 32 days down to 16. Because if you're really sick, if you're sick and then you're not rapidly getting diagnosed and then you start to crash, it takes a lot to bring you back. And so powering someone to take a scan every day and know, "Are you doing better? Are you doing worse?" and dial up the medications and having that feedback, it makes people healthier. And it's just an ultrasound device. And so now, based on that premise, we're going to help Optum. We're doing a pilot, and we hope it goes well. And if it goes well, it'll be great for everyone. But our premise is to help nurses at the bedside use our advanced AI tool to take a scan. And then that scan will be read. It'll come up into our cloud because we're virtual, and it'll be read by a remote cardiologist who will give information. It'll go back to the doctor on site, and then they'll be able to rapidly course correct and do these scans every week on all of these patients. So instead of someone progressing to the point of getting so sick they have to go to the hospital, you can rapidly course correct in a low-cost, easy way. If that happens, we hope to help them manage these patients and large populations, and we think this will change the world. It'll change their world, and it'll change the cost structure, and it'll help these patients stay more healthy. So I'm very proud of my team. We've been working on this over a year, and then now we're talking to a bunch of other places, and I think this can actually turn out to a real revenue driver for the company in the future. We talked about Octave. We are spinning out a business. We are focusing it with some of our best executives to be able to drive the value of our semiconductor outside of our core business. Because we didn't just solve a problem for point-of-care ultrasound. We solved the problem for ultrasound. We spent $300 million on this chip, and this now can be used in other medical applications, as you see here. These are all medical applications. And look at the TAMs of these. And so we're going to expose for products that Butterfly are we're not going to make an implantable. It's Butterfly. But we can now partner with an implantable company if they want a semiconductor with ultrasound, and we'll have this ongoing revenue stream to build out this business. But there's also non-medical businesses. There's consumer products. There's security. There's military. There's drones. All that would benefit from a dynamic ultrasound where you can remotely and continually improve the algorithms. And so we're very, very excited about our activities with Octave. So these are our strategic pillars. It's to strengthen our core, expand, differentiate, and generate new revenue lines. This has been outlined very deeply and very clearly in our investor day. And so anyone who's serious about Butterfly, I really would hope you have opportunities to look at that data, and we continue with those pillars. And things are going well. Our marketplace is growing. We have a unique position with over 600 patents and, again, $300 million to get to where we are in the development of that semiconductor. Our moat is pretty big. And for those who ultimately will follow us, they're going to have to follow a difficult path because it took us I always think it takes 10 years to become an overnight success in healthcare. You have to just dig a ditch because people don't change their behaviors overnight, and you have to prove, and then you have to cycle and hit their workflows. And so all of these things are in our favor, whether it's medical schools, all the research that's being done. The professional societies are now creating standards. There's now all different types of trained residents and medical school students coming into the workforce. And then by us making this less and less expensive and more and more powerful, our use cases are expanding. And the last thing to mention is we are continuing our activities with the RoHS standards in Europe. Our devices are completely environmentally friendly. And so any standards that require a reduction in toxin materials, they run afoul in the ultrasound industry because that lead crystal, the crystal they use to deliver their ultrasound in, is made out of lead, like lead paint, and then they pump all kinds of energy through it. So if you can have a clean semiconductor, then that's better for the environment and better for our society. So we are very excited about where Butterfly is. We're very excited about the journey, and we're very appreciative of all the investor support and all the support from the medical community. And so with that, thank you, and I'm happy to open it up for a few questions. Yes, sir. What percentage of your sales is coming from the unit sales and what percentage of the sales is coming from software use, like recording revenues? Can you just kind of describe it? I mean, I'm sure it's disclosed, but I don't know. Yeah, of course. Heather, you want to repeat the question and then everyone heard it. You just want to. Yeah, so we're about 70% hardware and 30% software, and we expect the software to continue to increase as a percentage of our overall revenue. Thank you. Okay. Well, hey, thank you guys so much. I appreciate you sending through the presentation. I'm glad I answered all your questions already and have a wonderful rest of the conference. JPMorgan, thank you so much.