Q2 2021 Butterfly Network Inc Earnings Call
It's over to Agnes, please vice president of investor relations. Please go ahead.
Ed. Good morning, and thank you for joining us today earlier this morning butterflies. Elise Financial results for the second quarter, which ended June 30.2021 and provided a business update to release an 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.
And I are stop butterfly network.com dr. Todd Puckerman butterflies president, and chief executive officer and Stephanie Fielding butterflies Chief Financial Officer will host. This morning's call during today's call, we will be making certain forward-looking statements, these statements may include statements regarding among other things expectations, with respect to financial results future
Since development of products, and services potential regulatory approvals, anticipated, Financial impact and other effects of the business combination on our business, the size and potential growth of current or future markets, for our products and services and the potential impact of the COVID-19 pandemic on our business. These forward-looking statements are based on current information assumptions and expectations that are subject to change and evolve the number of risks and
Certainty that may cause actual results to differ materially from those contained in the forward-looking statement. 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 touch statement during this call, we will refer to non-gaap financial measures, including adjusted, gross margin adjusted.
Gross profit and adjusted either. He's Financial measures in accordance with us. Generally, accepted accounting principles or gaap to non-gaap measures are not intended to be considered in isolation or to substitute the results prepared in accordance with.
Financial measures are included. In today's Quest release and at the end of the slide presentation, as a reminder, this call is being webcast live and recorded and we will be referencing a slide presentation in conjunction with our remarks because there is a short delay between the live telephone audio and the presentation being shown on the webcast to the best experience. Please use either the webcast for both audio and video content or if you die.
I'll be in by telephone download. The slides from our website and advancing yourself to access the webcast. Please visit the events section in the investor section of our website and a replay of the event will be available following the call. I would now like to turn the call over to dr. Aggressiveness.
Thank you, Agnes.
Morning everyone, we appreciate you taking the time to join us today. Now, in our third earnings, call as a public company, we are happy to share with you. The progress, we've made this quarter following, my overview of butterflies performance. Stephanie will walk through the details of our financial results.
It's and as always, we will take your questions at the end.
And I'm very pleased with the progress that our company has made since we listed on the New York Stock, Exchange earlier this year, becoming a public company is a momentous event for all that, get the chance. But for a company such as ours, it is truly enabling. Since it provides us the opportunity to build expand and grow the value proposition of our proprietary differentiated technology while, ensuring that we have a strong operating Foundation.
Which to execute being public. Also, allows us to partner with you, our shareholders and embark on this exciting journey together.
Other before we get into the quarter, I would like to share my enthusiasm for a butterfly and the impact I know we can make in some of my earlier remarks. I have spoken about why I joined butterfly about 6 months into my journey. I see I want to share why I now believe to be the reason we are all excited about butterflies. He simply stated butterfly makes it possible.
So, what does that mean? Butterfly is disrupted and unique?
And it has the capabilities to practically unlock the power of point of care ultrasound in ways. That inform clinical decision-making, they can not only benefit patients, but also impact our Health Care system as a whole. And while we are just at the beginning of our journey today, Spotify is, in fact, the result of a decade of innovative work work that has resulted in a breakthrough comprehensive Solutions, consisting of a high-quality semiconductor.
Whole body single probe ultrasound device, coupled with the 3 enabling elements of our software platform, mobile Ai and deep learning. And Enterprise with this. Our solution has the power to transform butterfly is accessible. It is portable. It is easy to use and it's affordable.
Together, those qualities and power Healthcare Providers. To leverage the value of ultrasound information, in everyday, decision-making in real time at the point of care because seeing is knowing. And that is the true power of ultrasounds. The power of butterflies is that this information can be unlocked in a practical cost-effective way and become part of a clinicians everyday decision-making, regardless of their location or care setting.
Butterfly and Powers clinicians that they did.
About care because butterfly gives them the ability to make more informed decisions earlier and anywhere this is what's extraordinary about our Solutions and this is why we believe it is butterfly that makes it possible. Not just point-of-care ultrasound while there are others that might offer the prospect of unlocking this value. Only butterfly is actually doing it. That is why we are so passionate about our technology.
Ecology and our missions to both democratize Medical Imaging and transform care all around the world. I joined this company because butterflies is not just about ultrasound, it is about something much bigger. It is about improving medicine in every Caravan. Use smaller, large, rural or Urban around the globe.
Ultrasound on a chip is the enabling technology that unleashes the full potential of Imaging information that leads to better decision-making and better medicine as more clinical knowledge, has amassed decision making is becoming more complex, not less and that is why clinicians need Clarity, so they can make accurate care decisions quickly, so it's insights at their fingertips.
Butterflies solution provides the direct information. Necessary to make more informed decisions because seeing is knowing and Butterfly makes it possible.
Butterfly catalyzes, Behavior change by providing Energy Information, this energy and information at the point of care allows practitioners to think differently about clinical workflows and when behaviors change, we can reimagine care delivery. This is how the ultimate value of butterfly will be realized by improving patient experience outcomes. And health economics across a broad spectrum of clinical a
In almost any care setting. For example we were thrilled to see about our fly doing exactly that at this year's Olympic Games in Japan, in a recent social media post. USA swimming showed how butterfly is being used at the Olympic Village for musculoskeletal evaluations ahead of competitions.
It's butterflies. Bringing information into a setting in which ultrasounds did not routinely exist in turn helping and protecting our athletes pre-competition evaluations. Like the 1 done by the USA swimming team. Show. How butterfly can be used to screen and prevent injury. Help to inform training and optimize performance.
And consider how the portability and ease of use of a butterfly, makes it possible to drive consistency of Care. Now, practitioners can practice the same medicine, regardless of care settings because butterfly gives them the necessary information to make decisions no matter where they occur at the hospital in the doctor's office in a home or even on a sports field. We recently heard of a story that took place at a college baseball game. A picture on a
Our track was up.
You hit the ball in an awkward way and reported pain and is had with a butterfly in The Dugout. The team physician was able to do an immediate ultrasound and identify in in our metacarpal strain.
And instead of being told to tough it out and risk a more serious injury, The Physician was able to pinpoint. The problem area immediately with a butterfly, the player went out of the game. Avoiding further injury and prolonged rehab, that could have created a serious issue for his career up. Until this point, it had not been practical for the physician player, and his coach that had this death of real-time clinical information on the field butterflies.
Durable solution. Makes it possible to make an informed Healthcare decision. Irrespective of the setting. And in this instance, the athlete was able to get the right care immediately modify activity appropriately and ultimately return to full performance faster and healthier.
Earlier, this is performance reimagined. The future of medicine has arrived and is being delivered right now that is what butterfly helps make possible.
It's part of making something possible, is making it easy, and that is 1 of the real advantages of butterfly. It is easy to use, in fact, butterfly is even making it possible for patients to participate in their Care by performing their own self examinations, in a recent study, published in ESC, heart failure, the Journal of the European Society of Cardiology heart failure patients with no medical training, we're taught to self perform a long.
Exam using butterfly the study found that after a brief training session, most patients were able to perform their own lung ultrasound self-exam and that the information they provided through the butterfly is usable by their Physicians.
It's subject to Butterfly patient self scanning receiving regulatory clearance for use providers, will be able to stay informed and manage disease more effectively, by having the ability to see early signs of progressions. That's providing the opportunity for quick interventions. This contrasts with in-person medical exams, which are so often motivated by late symptoms and morbid complications. This can
I'm costly less effective and lead to poor outcomes. We believe this recent study provides an important early Milestone on the road to more effective at home care and patient empowerment.
These Innovations driven by butterfly can help change behaviors and how we think about care and it's delivery. This is how butterfly will help to transform health and wellness. Butterfly removes the barrier to not having information to make more informed decisions. Regardless of settings, our mission is to allow people to have access to valuable diagnostic information, wherever, and whenever it is needed
For now and Butterfly makes it possible.
People and now having provided some context for our journey. I'd like to turn to our results and review our cue to 2021 performance. I will also speak to our progress related to our near-term foundational goals that we introduced earlier this year.
Here our performance in the second quarter was solid. On many fronts, we continue to see strong Revenue growth with total revenue for the quarter of Sixteen point 5 billion dollars, which is a 40 percent increase year-over-year.
We are encouraged by the broad demand for our Solutions, across a wide range of customers. And so I continued adoption through our core sales channels including professional Sales Direct to user and distributions. This included the progress. We made this quarter in medical school adoption and international commercial expansion as well as growing our presence in veterinary medicine.
And while I'm happy with our performance and progress is quarter, you know that there is no notion of success on our journey without our people and their tremendous efforts. That is why I would like to take a moment to recognize our outstanding teams and all the hard work. Our growing organization has put in over the past, several months managing, through all the complexities of the external environment while we expand our corporate foundation and execute
Upon the butterfly journey to democratize Imaging and transform Healthcare. In fact, we were fortunate to recently gather the entire company together to align our plans to execute on the promise and value proposition of butterfly. And while the pandemic has limited the potential of any companies how is paused to see the spark energy and collaboration in this meeting that I know will give us even more momentum for the second half of the year.
We're ensuring that we can amplify butterflies impact and deliver on our objectives.
Earlier this year, we sat 5 foundational goals to help focus our efforts to grow and develop butterfly as a company. As a reminder these goals are to broaden and strengthen our team at butterfly to broaden our Partnerships with clinical leaders to align with the payer Community to improve health outcomes and reduce the cost of care to develop commercial Partnerships across care settings. Specialties in geography
These to deliver patient Centric value-based Healthcare and to invest in our industry. Leading Innovation progress against these fossils is helping us to build our organization Drive. Societal impact, support commercial growth and realize, our vision of improving clinical care, across a range of geography, applications and Care settings.
And now I will.
Okay, you with regards to 3 of these?
He's given our aspirations and the complexity of the healthcare ecosystem. Butterflies, cannot be successful without having the right leadership team in place and we are pleased to share details of 2 recent. He hires
Hours. The first to the newly, created role of Chief technology officer and executive position that will report to me and the Technology, Innovation product development and information technology. Andre Sarika. Our new CTO has extensive experience with software, Enterprise Technology Solutions, including large Cloud platforms. He brings a nuanced understanding of managing complex systems and of innovative product development that.
Teams, both hardware and software elements.
Andre was most recently CTO at 502 on the tree where he led the global technology and product development operations, including hardware and software product development product management, Enterprise and product information, before that, he held various leadership positions at IQ via including leading the development of the global data and machine learning cloud platform. Working directly with, Andre will be David Ramsey. Our newly hired Chief Information,
Who will be responsible for continuing to ensure that we have a robust data, privacy and security program as well as the information technology infrastructure build out to support butterflies growth.
With David previously held CIO roles at Assurance facility, which is now part of 3M, diebold and PSS World medical which is now part of McKesson.
And together with the team, Andre and David will extend our strong history of Leading Edge invention while enhancing our technology infrastructure to facilitate greater agility and targeted customer Centric Innovation more broadly across, the organization are significant progress for defying, the executive team in the first half of 2021, and Powers us to accelerate execution, and commercialization of the butterfly Solutions.
As commercial and clinical object that butterfly grows in North America and around the world, we are witnessing how having butterflies are more places, makes new things possible? Earlier, I talked about it. How about our fly increases access to information and informed care across all settings. And 1 of the best ways to see the future and catalyze change in healthcare, is to help create it by being a part of the clip.
Education and Training of new practitioners, bringing butterflies to medical schools is a major priority for us. Butterfly is now in over 100 medical schools. Our goal is to solidify butterfly from the beginning, we're doing this to ensure that practitioners of the future, have the ability to make more informed clinical decisions, through the power of butterflies regardless of specialty or care settings, this quarter Temple. You
Diversity, purchased butterflies for all of their first year, medical students and distributed them as part of their white coat. Ceremony making our disruptive technology part of the journey for these future doctors. Right from the beginning. Temple joins a group of medical schools that are investing in equipping, their students, with butterflies to ensure that these young professionals have access to valuable information and learn how to use it as they train for their future careers.
As condition.
Some of the same momentum building around Animal Health Care. This quarter. We announced our first veterinary school wide deployment, with the newly established Texas. Tech University School of veterinary medicine is that I've shared in the past, we believe butterfly is well-positioned to disrupt and help prevent veterinary medicine. We see this Market as an attractive area for growth beyond our core human effort.
It is also nice.
It's
Given the graph of our value proposition and how butterfly can be deployed in different systems in settings. We are excited about the opportunities that exist around the world for butterflies. Disruptive Solutions. Also this quarter, we established a partnership with ch index medical, a leading medical device distributor in Hong Kong to commercialize our solution in this key. Market, our partnership with index, create our largest distributor
Today in Asia and help solidify a substantial multi-year. Commercial commitment for the Hong Kong region.
Kevin, I'd like to end the discussion of our foundational principles today with our focus on Innovation. Innovation is all about creating value. It is what we do it is in our corporate DNA and will always be core to what we do at butterfly. So I'd like to share some examples of the value. We are creating a butterfly
The value of ultrasound imaging to reduce maternal and Fetal. Mortality is well established. Yeah. It is not universally available to all even in the most developed Nations even in the United States,
It's a common restriction is the cost of the equipment and the need for advanced tools to make important calculations aligned with our mission of democratizing healthcare. We are particularly excited to be offering new and possible solutions in the OB maternity space, that will be delivered through an upgrade to the butterfly IQ plus platform.
Because of butterfly seeing is knowing these 3 new recently introduced Advanced OB features provide critical insight into both maternal and Fetal health, and they include enhanced image quality. Just a tional age calculation tools, and in the US and Canada audible, fetal, heart tones.
Practitioners can now use the butterfly solution to calculate first. Trimester gestational age measure second third trimester, fetal growth monitor. Fetal well-being throughout the pregnancy and prepare for labor and delivery.
To help understand why this is impactful. Let's focus on just 1 of the new features just a tional age. This age is the single most important determinant of fetal mortality.
Giving care providers Dependable access to this critical Insight on a device, that is both affordable and portable butterfly can improve the quality of care for all expectant mothers. Regardless of whether a mother happens to live in a remote area or in an underserved Community because with butterfly care can be enabled anywhere.
We're with the launch of the OB maternal, Health Solutions and is part of butterflies Global Health Initiative. Butterfly has partnered with Alara Health to create a playbook for leveraging. This new functionality, in our Solutions in limited resource care settings.
I mean, are powerful diagnostic tool at hand wherever the need might be creates new use cases, and makes it possible to reach entirely new groups of people in need ranging from those who are distance geographically from Healthcare facilities. To those who act, this is impaired by affordability, trust or prior negative experiences at butterfly. Do you believe Equity starts with access by and
Powering medical professionals to help patients either. Health butterflies is helping to build trust informed, diagnosis and Empower patients.
And now with Karen able to Butterfly and our new features, the care experience by many expectant mothers images of a fetus and the sound of a harp, he's followed months later by the sound of a newborn cry. Can become the norm for more expectant mothers.
Hours, as I described earlier, much of the power of butterfly will be realized through its ability to drive change and Care. Delivery for more informed decision making, and 1 of the benefits of butterfly. And unlocking, the power of ultrasound information is making the device easier to use
Our butterfly solution allows Health Care practitioners to focus on patient care rather than on performing the ultrasound itself. In future enhancements will continue to focus on improving the ease of the image capture and providing assistance in image interpretation. A great example of this is the Q2 license and release in Canada of the new machine learning tool education. You guidance,
For both long and cardiac imaging presets, the user can receive real-time feedback on the quality of the image. They are viewing through a color-coded display using artificial intelligence helping new users. Accelerate their educational journey to competency.
Innovative features like the OB maternal, Health Solution and education view guidance can help make more informed care decisions, leave it better patient outcomes and approved economics and butterflies unique software. Platform allows us to rapidly deploy features like these now and into the future.
Taken together. We hope that these foundational. Steps are beginning to paint the picture of acceleration at butterfly. To enhancing our leadership, brought in our channels and accelerating Innovation. We are actively engaged in partnership with the individual Physicians industry. Thought leaders. In large institutions, in a collaborative fashion to improve clinical practice, deliver uniformly, across sites of care and dramatically improve patient Health Trust.
First access and convenience. Our direction is clear. Our capabilities are growing rapidly, and our team is Unified behind the opportunities to improve health and wellness. That butterfly makes possible.
I will now turn the call over to Stephanie for a review of our financial results. Stephanie
Any thank you, Todd. I will take you to the details of our cue to financial performance.
Product revenue, for the quarter, was 13, million dollars, an increase of 30% from 10 million dollars in the same period in 2020.
T is to build the main driver of product revenue or 6 thousand 4 hundred and eighty 5 in the quarter compared with 4,997, thank you to 2020 an increase of 30% for selecting a strong Q2 performance from a broad array of customers. We saw a revenue generated by our
We are particularly proud of the solid year-over-year growth in product Revenue. Given a tougher comfortable in Q2.2020. Last year, we saw sales during the second quarter.
Subscription revenue is 3.5 million dollars in the second quarter growing. Approximately 94 percent for 1.8 million dollars. In 2020. Subscription-based was 21 percent 15 percent in the second quarter
I would like to give some additional color on short-term Trends in Revenue, mix specifically description.
In our early Evolution accelerated product sales. Actually reduces the subscription Revenue as a percentage of total revenue. We recognize products. Revenues immediately, whereas subscription revenues are amortized over the life of the contract.
however,
We would expect the impact to re-accelerate later in our maturity curve.
Turning to cost of Revenue, the cost of revenue for 2 to twenty. Twenty 1 is 8 point 3 million dollars. A decrease of approximately 29% from eleven point, 6 million dollars in the second quarter of 2020 cost of product Revenue..7.9 million dollars into to 2021, a 31 percent. Decrease from eleven point 4 million dollars in the same period in 2020 and the cost of subscription Revenue was $435,000 increasing 80%
$42,000, you're over here.
In line with our expectations, our gross margin turn positive over the course of the past 3 quarters and in Q2 gross margin was 49.8%. Well, adjusted gross margin was 50.2%.
So gross profit was 8.2 million dollars for Q2.2021 compared to Q2.2020 gross profit of a $165,000 adjusted. Gross profit was 8 point 3 million dollars, adjusted gross margin and adjusted gross profit reconciliation.
Operating expenses were forty 4 point 9, 9 dollars for 2 to 2021. An increase of twenty, 3 point 2 million dollars or 93 percent compared to Q2.2021.
I'll set by the increase in gross margin. Net loss was 2.9 Million dollars as compared to a net loss of twenty..3 point 2 million dollars during the second quarter of 2020.
T adjusted either of twenty-eight point 5 million dollars compared with a loss of 20 point..1 million dollars in the same period in 2020. Adjusted. Even reconciliation calculations can be found in speech, press release.
This increase was primarily related to our contractual way for commitment ensuring that we had access to product as we scale and innovate over the next couple of years. I'll set a lower inventory of finished. Good.
Good. Well, we had secure Supply a semiconductor chips. We are impacted by the cost pressures and lead time increases that are challenging supply chain across all Industries including Medtech. Our team has been proactive in managing the situation. We do not see in your term, delivery challenges, and we'll continue to work aggressively secure Supply on behalf of our customers, and we are actively implementing new operating efficiencies to help offset the cost increases and component parts are device.
Despite some of these challenges we remain on track.
Momentum and interest from a wide range of customers as we continue to execute our commercial strategy, there may still be some variability in the timing of deals in our pipeline over the next quarter's. I said, we believe we have a strong Pipeline and demand for our solution across the use cases afforded by our can, and still see our annual performance, shaping up to be in the guidance range, we provided in G1 and referenced on the slide.
I'd and with that, I will pass it back to Todd for some recombinant.
Thank you Stephanie, and thanks for participating and butterflies. Second quarter, 2021 earnings. Call it exciting to see that our team is driving growth and Innovation across a range of critical areas for our company. Our Prospect doctrines are Market footprint and our Partnerships continue to expand every day.
Day. I am, I guess this quarter across the first use cases in settings, and I am very excited about our future and our journey to transform care globally. I hope that you all agree that seeing is knowing and that butterfly makes it possible. I would like to thank the butterfly team, once more for their dedication to our mission and the excellent progress we made in Q2.
Thank you for your participation and I hope that you share my excitement about everything that butterfly is making possible. I look forward to our next update with you and we will now turn the call over for questions.
When's this time if you'd like to ask a question simply press star 1 on your telephone keypad again, that is star 1 to ask a question.
Ian, you have a question from the line of Josh Jennings with Cowan.
the what gets you there, any help just thinking through the Enterprise Channel and its accessories, you had to queue and
In where we can add value. And so we see it in a different market segments Channel and we're continuing to explore each of those in Enterprise were deployed in a number of large academic, medical centers, boring conversations, with institutions and we're starting to work towards what real scale would be. Because in the end in the Enterprise Channel, particularly it's not that
about pleasing Pros, right? It's about changing that behavior is advancing practice and that's much more about 1 what we believe we are with butterfly because it requires a more comprehensive solution, be able to be able to implement that and change those behaviors and you know, so we're going to continue to work on those. Those are going to take a little bit longer but they will be a greater magnitude. So we see that momentum building, you have a really strong conversations. We see probe sales
All the segments and we see a lot of brought opportunity and I hope we've described some of that you today because it's a really different way of thinking about ultrasound delivery and ultrasound information, utilization and practice like Stephanie if you have any doubt of that. Now I think that
Great. Thank you. Thank you for that.
Current currently.
Typically been available the home is, we're seeing that as more of them. Right now in the home we have. We're working with different entities to bring ultrasound scanning as part of exams and it's part of Home Care. So we see these things is building and stuff and evolutions and we are already
There with that. So we've been able to bring now butterflies into homes part of exams part of bringing that care to patients where care is being delivered in the home. Our evolution is, as I talked about with in general with our strategy with butterfly, which is all about how we acquire information interpreted and utilize it and make it easier. As we're on that journey to make it easier. We are continuing down that path with patients.
Scanning because butterflies are just it's an easy way to get ultrasound information and bring that into the decision-making process. So the study that, you know, I reference in ESP, heart failure talked about the ability of the patients to do that. We're working right now in developing the rest of the, you know, clinical plan to support for their clearance and further indications around that. But we're really excited about
Is a proof of concept that patient can do.
They can do it in a useful way, and we can bring that into the clinical decision-making process. We feel is already well on its way. And now we're working through with like a CT and others to develop the right studies to work that into the clinical workflow, and we're going to we're in all those discussions right now.
Excellent me 1 last question just thinking about the pipeline and how you see that evolving and it's clear from your update today that we're going to see a consistent flow of innovation and as you introduce today and up to today. But but how would you think about about the pipeline? Maybe, what we should be expecting in terms of the evolution of the platform?
Thanks for taking the questions.
Deals with the overall utilization of the technology to, you know, how we the software will help us acquire images. It'll help us
Is it all by utilizing? It really takes it into a usable assessment tool and that's where butterflies very powerful in the sense that were comprehensive solution. We have the ability to do that. I think, as you've seen today, as we evolve our roadmap for, making this more application-specific for pointing to different things. And I think that also helping us inform and guide our business model as we move forward and we look at the software components of our business.
No, our Innovation pipeline is deriving the ability to capture value. And we're looking at how that's all coming together in the marketplace. And I think that's, you know, inform the Future walk. You see that we've talked about that 1 of the advantages of butterflies pass platform that coming in out, monster quarters type of time frame and you'll see releases from us that we both enhance do utilization across application and and and the performance of the
Device. And then you know we we will continue our journey in making the apart we're seeing it and nasal and piece of that. So you'll see Hardware updates from us you know on this on a time frame that we've talked about being in the years in kind of that in that year's time frame and you do will be on our roadmap to fit for purpose and having our Hardware enable, the things that we are trying to accomplish
As we look at how to deploy ultrasound information to drive transformation and Healthcare and I feel really good about where we're going both on the software piece of it and where we will be going on the hardware piece of it all the way to walk to, you know, covering our ability to provide that information across all care settings and all the geography.
Thanks again, appreciate it. Your next question comes from the line of Matt Taylor with UBS.
Yes, thanks for taking the question. Can you hear me okay, ask you about the Enterprise Sally? How that's going. Maybe you could give us some more specifics on the guy poster or things to look out for their and and what it, what percentage of your sales do you expect to, to be any kind of Enterprise agreements, you know, by the end of the year?
Sure, it won't work you but I already said on the Enterprise be acknowledged, that me as that. Thanks for the question that we're not, we're not disclosing some of the specific mix and channel. You want to give additional color in terms of how we see that building. So, last quarter, we had noted that we had, 27 sales reps on board, we have continued to add some heads and create some additional bandwidth for laughter opportunities. As Todd mentioned, we do see a lot of ways that our
Can be used. And in addition, we've seen productivity increase of over 30% quarter-over-quarter.
Okay, great. The Cadence of sales through the year. The kind of seasonality that we should expect and how back at loaded the expect the sales to be for the remainder of the year.
Acquisition of technology and to think there's an element to that as we're going through the year. But it just, you know, as we're still building, the jury, just wanna bring him up that deal. Our devices are valuable across with, you know, traditional like seasonality of use of consumables are devices are valuable across the indications that as it relates to pattern on particularly institutional pieces. All that stuff me comment check, I think
As we look through the back half of the year, which recited would certainly be heavier in terms of sales in the first half of the Year, there are a couple of Dynamics at play. So first, we have the sales force, and the ramp aspect. That's something that we've talked about. In terms of them, gaining productivity and ramping into some of the larger deals that we've been thinking about, as well as building on some of the new areas that we've been going into around the the mid-market and transfer.
Physician practices.
The second aspect is you, we continue to see some of these opportunities, you know, it if it's index relationship is quarter. Those custom variability as we look forward in the rest of the year, but we are seeing pipeline for relationships that we are building, and then the last area, of course, is we've got some of the direct users which, you know, it's hot referred to. There's a little bit of the consumables aspect to the the timing of that.
And it's not as significant part of the business, but if it does change and Vary the patterns a little bit, which makes it a little bit more Q4 waited for that part of our business. And, of course, you know, we continue to look opportunistically for relationships because we do think there's such a range of ways that this can be used. We have to see after a partnership, there are opportunities in global Health, we're excited by just how many ways that we can engage. And that's part of the variability that we were
You in the back, half of the year.
Just wanted to ask about the Canada approval in the OB/GYN applications. Maybe you could just comment on whether we should be either those as material commercially or how you expect those to to ramp
Have to continue on our journey and I think that that is that they have to our value proposition in the market. I think similarly the OB as our other element. You know, I think what it does is it helps people see the true value of butterfly. It helps people think differently about butterflies and it's I think makes it more attractive for us to providing these opportunities allows us to connect to
user basis and more tailored feature set with a more tailored experience and I think it helps us have more directed conversations. So as we roll each of these indications have, I think it's a very good opportunity for us to address those segments and to help us drive adoption specifically towards the mission of butterfly, which is thinking differently, about information, and driving clinical behavior, and advancing the practice of care. And so I think
Every 1 of these they come to that it's an opportunity for us to build the value proposition of butterfly and then have more specific conversations but purchase with particular, segments of users and around our value. Propositions, which differentiates us for the comprehensive solution, which is we create a tailored experience for users and deliver more valuable information. So I see that as an opportunity each and every time it comes out, that's enough. You guys something that
Over thirty percent of our Revenue comes from outside the US and Canada is a contributing part of that. We are in a said over 20 different countries but that is in material aspect of our Revenue. The second thing that I wanted to note was on the EOB. Is this really does go to a problem that we see globally and we talked about the global Health Equity, but it also goes to an issue. You know, in the u.s. if you look there are over 50 percent of the counties in the US. Do not have. Nearly 40 percent of the County's, do you s do not have enough.
Trician. And, you know, there are 3 point 7, 5 million births every year in the u.s. So there are, there are opportunities for this solution to really continue to drive part of our mission. Help. Actually vote in the US and globally.
Thank you.
That is all the time we have for questions today. We thank you for your participation as conference call. You may. Now disconnect