Q1 2023 Butterfly Network Inc Earnings Call
Speaker 2: The.
Speaker 2: Here four.
Speaker 1: begin shortly. Thank you for your patience. As a reminder if you would like to ask a question during the presentation you may do so by pressing start followed by one on the Telethink keypad.
Speaker 2: Donald's
Speaker 1: 2023 earnings call. My name is Maxine and I'll be coordinating the call today. If you would like to ask a question during the presentation, you may do so by pressing staff away by one and the telephynchie pad.
Speaker 1: I would now hand you over to Heather Gett, Executive Vice President, Chief Financial Officer to begin. Heather, please go ahead when you're ready.
Speaker 3: Good morning and thank you for joining us today. Earlier this morning, Butterfly released financial results for the first quarter ended March 31st, 2023 and provided a business update. The release and earnings presentation, which include a reconciliation of management's use of non- GAAP financial measures.
Speaker 3: alongside Joe DeVivo, Butterfly's Chairman and CEO , and Baronia Shakita, Butterfly's Chief Strategy Officer will host this morning's call.
Speaker 3: 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.
Speaker 3: Future performance, development and commercialization of products and services, potential regulatory approvals, decides and potential growth of current or future markets for our products and services, and the impact of macroeconomic factors on our business.
Speaker 3: 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 statement.
Speaker 3: These and other risks are described in our filings made with the Securities and Exchange Commission.
Speaker 3: You are cautioned not to place undue reliance on these forward-looking statements, and the company disclaims any obligation to update such statements.
Speaker 3: As a reminder, this call is being webcast and recorded, and we will be referencing a slide presentation in conjunction with our remarks.
Speaker 3: There may be a short delay between the live telephone audio and the presentation being shown.
Speaker 3: To access the webcast, please visit the event section of 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 Joe DiVivo. Joe?
Speaker 4: I feel quite fortunate to join the family at Butterfly Network during such a critical time in its history.
Speaker 4: I first want to thank Dr. Jonathan Rothberg and the Board for the opportunity and also the warm welcome I received from the whole butterfly team.
Speaker 4: I've only been here a few weeks and have enjoyed meeting the incredible people who brought so much success to the company and I'm really excited about butterfly's potential.
Speaker 4: During my career, I've seen the early days of Minoly-Vase of Surgery.
Speaker 4: surgical robotics.
Speaker 4: Interventional oncology.
Speaker 4: interventional oncology and most recently digital health.
Speaker 4: each with the undisputed disruptors in their respective fields. It's an exciting ride and I'm thrilled to be a part of the disruption that will be caused by the democratization of medical imaging through butterflies, one-of-a-kind hardware enabled by AI tools.
Speaker 4: This technology will empower providers to help treat and diagnose patients where they are.
Speaker 4: In a moment, Darius will provide a business update on the quarter, and Heather will communicate the financial results. For first, I'd like to share my initial perspective on the opportunities that I see.
Speaker 4: Over the past couple of years, I served in the AI ultrasound field, actually partnering with Butterfly, and have seen firsthand how impactful enabling clinicians to capture images at the point of care can be.
Speaker 4: Since the inception of Butterfly, we've spoken about the importance of ease of use in empowering practitioners worldwide with ultrasound.
Speaker 4: because nearly two-thirds of the world's population lacks access to medical imaging.
Speaker 4: In the vast majority of healthcare practitioners are not ultrasound trained. Ease of use and training are the most critical limiting factors to broaden adoption and true democratization of medical imaging.
Speaker 4: With our ultrasound on-chip technology, Butterfly has made imaging more accessible to medical professionals worldwide and frankly, easier to use.
Speaker 4: This is why we've invested so heavily in the development of novel AI applications.
Speaker 4: to empower practitioners wherever they may be. From our Auto Bladder Volume Tool,
Speaker 4: to our cardiac guidance and interpretation partnership to our Auto Justational AIDS Application with the Gates Foundation, and now, most recently, our Auto B-line tool. This newly approved tool makes it easier for medical professionals to capture key pulmonary scans.
Speaker 4: to detect fluid in the lungs at the point of care, giving them a timely diagnosis when they need it. This B-line application is essential for diagnosis confirmation and pneumonia, and many other cardiovascular diseases.
Speaker 4: In fact, there are more than 1 million diagnoses per year for pneumonia alone in this country, and our Beeline application will make it easier.
Speaker 4: Butterfly is clearly at the forefront of AI development as we seek to make our solution as easy as possible.
Speaker 4: and while this approach
Speaker 4: and the importance of AI has garnered a lot of attention, investment and M&A recently.
Speaker 4: It's been at the core of our DNA and the company's strategy since the very beginning of butterfly.
Speaker 4: Our secure cloud empowers our AI developers to build applications for our customers.
Speaker 4: Our secure cloud empowers our AI developers to build applications for our customers by tapping into our database.
Speaker 4: which represents the largest ultrasound image repository in the world.
Speaker 4: Importantly, this focus on novel AI tools development in our image repository is not only bearing fruit in the form of FDA approvals, but in driving the commercial adoption of our technology in ways that traditional focus is unable to do. Going forward, it's our intention.
Speaker 4: to start monetizing our AI algorithms across our large install base.
Speaker 4: Over the past three years, Butterfly has deployed more devices in the market than any other company with nearly 100,000 ultrasound-prove ships to date. Butterfly has an amazing ability to reach, deploy, and empower users virtually.
Speaker 4: I view Butterfly as a technology-empowered software company.
Speaker 4: Our chip-based hardware provides us an accessible and growing user base that our software can be sold to.
Speaker 4: providing incremental software opportunities.
Speaker 4: A recent FDA clearance has paved the way for other developed tools that are in queue for regulatory submission.
Speaker 4: Reaching more people, empowering them with intelligent diagnostic tools, and helping them with the business of medicine through enterprise software, is the winning formula for our future. Now being a disruptor is never easy.
Speaker 4: I've been there many times before.
Speaker 4: It's always hard to predict the timing of customer and market adoption in the face of the massive opportunity it presents. I fully intend to lead butterfly through this journey and capture the market for our employees and our investors.
Speaker 4: So with that, I'll turn it over to Darius to comment on our commercial and business progress in the quarter. Darius? So Travis, I mentioned that you and warehouse are using different kinds of entrepreneurs
Speaker 5: Thank you for that introduction, Joe. We are excited to have you on board.
Speaker 5: In the last quarterly update, we shared a recap of all the progress that was made in 2022 across each of our four pillars.
Speaker 5: Health systems, international expansion, passed-to-home and adjacent value streams on our path to democratized medical imaging.
Speaker 5: 2023 has kicked off in earnest with progress across each of these four pillars and with our team driving outcomes against our principles of easy, everywhere, and economical.
Speaker 5: So with that said, let's dive into the progress we made this past quarter in more detail.
Speaker 5: So with that said, let's dive into the progress we made this past quarter in more detail. Starting with our progress in health systems.
Speaker 5: This quarter kicked off with more large institutions embracing butterfly and deploying our blueprint solution at scale.
Speaker 5: In fact, we are excited to share that this morning we have signed another significant deal, this time with the largest medical school in the country, to deploy our butterfly solutions to help facilitate point of care ultrasound across the continuum of education.
Speaker 5: The institution expects to use our QA in credentialing, utilization tracking, and butterfly academy didactic courses as a complement to its existing point of care ultrasound curriculum. This opportunity represents an important partnership to empower and deploy an exemplary medical education program across multiple specialties.
Speaker 5: and to train hundreds of students, residents, and physicians.
Speaker 5: While we are introducing this meaningful partnership today, the deployment was signed in April .
Speaker 5: We look forward to sharing more details in the coming months. We have another notable partnership with our multi-year rollout with high-quality medical education.
Speaker 5: An internationally recognized emergency airway management and point of care ultrasound organization based in Minnesota.
Speaker 5: This deployment will put Butterfly IQ, Probes, and Compass software in over 100 rural and critical access hospitals throughout the state of Minnesota.
Speaker 5: The deployment will be paired with extensive poucus training as part of the grants awarded to HQ Meted by the Helmpley Foundation, aiming to boost phanography in poucus training, and ultimately improve access to exceptional medical treatment for all Minnesotans.
Speaker 5: Internationally, as you'll recall, last quarter we announced deployment with the University Hospital of Bonn in Germany, in which they are deploying Butterfly in a one-to-one model across their entire medical school and Butterfly Blueprints across their health system. Complete progress has been made in this area, with the implementation now underway.
Speaker 5: The connectivity is in place and first students arrive later this month. Moving to our clinical progress and our path to home, beyond the aforementioned FDA approval we received in Q1, our clinical team continues to make progress with a number of key studies that demonstrate the value of butterfly in a multitude of use cases and clinical settings. Our team is actively working with several institutions that have deployed butterfly scale and are compiling and quantifying the meaningful return on investment that butterfly is driving through encounter based workflow.
expect more updates on this front in the coming months. Another exciting clinical advancement in the first quarter is the release of the ACC Cardio Bachelors Point of Carole Chason Workbook.
Inspired by an innovation partnership with butterfly, the ACC put together a team of experts and developed this guidance tool for cardiologists to enhance the adoption and utilization of focus by cardiologists. Three key areas are addressed, including cardiac, lung, and vascular bedside ultrasound.
as well as the value POCUS can provide in enhancing routine bedside physical exam.
Now, the ACC joins a growing list of professional societies acknowledging and supporting the evolution of bedside assessment to include POCUS, and we are thrilled to have been the inspiration for this publication.
Last but not least, we have signed contracts with large U.S. academic medical centers in the Northeast to initiate clinical projects that are evaluating wide-scale deployment for clinical care and training initiatives that explore the use of Butterfly as a new standard of care in hospital patient management.
We anticipate initiating this in Q3 and look forward to updating you on our progress on this front later this year as well.
Moving to our adjacent markets, our veterinary team is excited to announce that a seminal paper was published in the Journal of Veterinary Medical Education, which demonstrates the feasibility and benefits of implementing a self-driven, point-of-care ultrasound program in large animal teaching hospitals using Butterfly IQ Plus Vet.
This randomized control trial found that by equipping students with butterfly IQ plus vet and providing simple self-guided digital materials for device use and key clinical applications.
It is feasible to implement self-motivated POCUS training, even in large animal teaching hospitals, amid heavy caseloads and time constraints.
Moreover, the self-jibbon program increased focus knowledge in students that have lower test scores.
plus 94% of students found the butterfly useful in their education and 95% reported they would like a device during all their clinical rotations.
This Penn research corroborates our belief that by empowering students with Butterfly's easy-to-use, portable POCUS system, academic institutions will greatly enhance training efficiencies and knowledge outcomes in their programs.
Reporting ultrasound education and training is core to our veterinary team strategy as it is with our broader company strategy.
The VET team continued to expand existing relationships with academic institutions and strategic partners this past quarter. As you'll recall, in Q3 2022, Butterfly announced and entered into a collaboration with a third-party training platform that connects veterinary hospitals with professional stenographers in real time using the Butterfly IQ Plus VET device.
In Q1 of this year, we expanded this relationship, and they now offer a more comprehensive package that includes Butterfly Program tablets with educational offerings for all their customers. With all this progress in mind, I will now turn the call over to Heather for the financial results. Heather? Thank you, Joe and Darius. Data Stripes v3 Color fulfillment
Revenue for the first quarter of 2023 was $15.5 million, essentially flat compared to the prior year period and within our guidance communicated on the year-end earnings call. Looking at our sales channel, we saw a 15% increase in our US direct business.
driven by higher subscription revenue and increases in our global health business, which includes our deployment in Africa with the Gates Foundation.
This growth was all set by softness across our other channels, including e-commerce, international distribution, and VET. Breaking our revenue down between products in software, products revenue was $8.8 million, a decrease of 20% versus Q1 2022.
This decrease was driven by lower volume across all segments with the exception of global health. Software and services revenue was $6.6 million in the first quarter, growing by 45% over the prior year period. Software and services mix was 43% of revenue and increased by approximately 15 percentage points versus Q1.
First profit was $9.1 million in Q1 2023 compared to $8.3 million in the prior year period. First profit margin was 59% for the first quarter, which compares to 54% in Q1 2022.
This increase was primarily due to a higher average selling price, in addition to product mix reflecting a higher proportion of subscription revenue.
Also contributing to the increased margin was improved manufacturing productivity and other efficiencies. Offsetting these benefits was higher amortization of internal use software which reduced margin by 560 basis points.
For the first quarter of 2023, adjusted EBITDA loss was 22.3 million dollars compared to a loss of 39.7 million dollars for the same period in 2022. The improvement in adjusted EBITDA loss was driven by the increased gross margined hours as well as the implemented cost reductions which led to lower payroll.
consulting, and other outside services.
Moving to our capital resources, as of March 31, 2023, Cash and Cash Equivalence, including restricted cash, $498 million. A monthly use of cash, excluding bonus and severance, was $11 million in the first quarter of 2023, compared to 18 million per month in the first half of 2022.
Before I turn the call back to Joe, I would like to touch on 2023 guidance.
It has been less than a month since Joe joined the Butterfly team, and we need to give him an opportunity to evaluate the company's strategy.
As such, we cannot affirm for your guidance at this time. We will revisit our guidance on our second quarter earnings call.
That being said, we are committed to providing as much near-term direction as possible. Considering the greater than expected disruption we experienced in the first quarter resulting from the change in leadership and reduction in force as well as the longer than expected launch time with our distribution partners, we are expecting Q2 revenue to increase sequentially by 2020.
but still be flatish for last year. Breaking it down, we believe our U.S. direct channel will continue to show strength and as we recently signed a deal with one of the largest medical schools in the country and have visibility to another in the near future. We also expect our distribution partners to gain traction as we progress through the quarter. Our vet channel will see expansion albeit at a slower pace than expected.
We are, however, expecting continued talking at Center International Distribution, as well as lower global health revenue as the anniversary of the Gates Foundation deployment.
As for EBITDA, we are expecting some improvement versus the first quarter of this year with higher sequential revenue and the full realization of our reduction in force. To close,
we will give Joe the opportunity to assess our strategy. And with that, I will turn the call back over to Joe for closing remarks.
My last prepared remark will be on the incredible opportunity ultrasound on-chip technology provides. As I mentioned earlier, I believe we are a technology-enabled software company. We have many opportunities to monetize our broad and growing base of hardware with new software applications, but I don't believe it ends there. I believe the proprietary butterfly chip can be leveraged in more form factors to empower even more patients.
to be treated in more automated and intelligent ways. I'm excited to share with you our vision before the end of this year. Thank you, and I'll now turn it over to the operator for questions.
Thank you. If you would like to ask a question please press star followed by one on your telephone keypad now. If you do change your mind please press star followed by two. When preparing to ask your question please ensure that your line is unmuted. Our first question today comes from Joshua Jennings from Cohen.
maybe just review to get the details on the US commercial team and maybe just to remind us of the US sales infrastructure. Sounds like you may be reevaluating the commercial strategy in the US and globally. But just...
have a better handle on kind of the combination of direct sales reps and and distributors Anything incremental or sorry to get detailed you can share we just be helpful to understand where where that Commercial team sits and how that could evolve over the course of 2023
Yeah, hi Josh. So if you look at our direct sales force that we mentioned on the year end call, when we restructured it, we did reduce some of our direct sales force and so it's then specifically on the hospital systems which has been successful. And if you want to mention we rock 15%.
year over year, which is a great result with that reduction. On the distribution side, we had expected to onboard third party distributors at a faster rate and that did not occur. And you will start to see that benefit in Q2. And as we mentioned, Joe will be evaluating the market strategy.
2023 in terms of new capabilities, features of software or off of the next-gen butterfly compute system.
Well, so this is Joe Josh. First of all, historically when we would sell software, we would sell it in a bundle in a subscription package. What we're doing is we're in the process of coming up with different levels of software.
bundles and being able as new capabilities come out to be able to monetize them with a different pricing strategy. So we're working on that today and I'd expect in the year, near the end of the year, to start going with new capabilities to customers and be able to monetize them. So when we do that.
We'll let you know. I think we are going to be releasing the D-line algorithm sometime in the second quarter. And that'll be, you know, an ability to kind of reinvigorate our subscriber base and find ways, you know, ultimately to upsell. I think 2024 is the year we are going to see.
a lot of incremental software and also some hardware come out. And we'll certainly update that more specifically a little bit later. But I have to say, you know, coming in as a new CEO and learning.
what's in the pipeline. I feel like it's sitting in a candy store. There is so much this team has done, and I'm actually stunned it hasn't come to market yet. And so there are AI applications, there are software improvements, hardware, so it's going to be a lot of fun.
That's great to hear. I wanted to ask about the home opportunity. And I know the team has been working on regulatory pathways with the FDA to open up that home indication for either patient self-scanning or even provider scanning in the home.
And any any progress there and anything you can share just on the timeline for when do you think that work with the F You'll be done and you kind of have a defined path way forward in terms of what's going to be required Well That's a part of things that we were revisiting I think there may be opportunities to get there sooner and it may not be as complicated as we thought about in the
right now. What I want right now is dates and deliverables. So, you know, when I tell you, I can tell you with certainty on timing.
But I have a very strong desire. When I've looked at this business from the outside in, the hospital business is very important and very strong. It's also filled with some incredible incumbents who are going to fight us to keep a nail to seed market share, although they have been, fortunately for Butterfly. There's an even larger opportunity outside the hospital. As hospitals, in my time in digital health and virtual, we've all seen how payers
providers, employers are all trying to find ways to reduce the cost of care and help treat or manage and maintain patients in their home. And given the lens that I'm bringing for my time at InTouch and Teladoc, I think there's going to be an enormous opportunity. And I...
It's a little too soon for me to connect those dots for you and I can't wait until I can't.
I don't understand. Thanks for that. I mean last question. Just wanted to just ask about the blueprint software package enterprise software.
in the software revenue line is performing very nicely since I was introduced, I think, last year.
Can you just help us understand, I know part of the strategy is in the facilitating deployment, but also Blueprint could act as a Trojan horse and there's some hospital systems that are adopting Blueprint in front of the Butterfly IQ handheld devices and all the capabilities there. But maybe just help us better understand that opportunity in the United States, just Blueprint as a standalone software solution for hospital systems exclusive of the devices and how it's been contributing to the software and other services revenue growth over the last couple of quarters. Thanks for taking the questions. Sure, Josh. I'll do my best and if I have any polls, I'll let them.
software with Compass to make the business of medicine and the business of ultrasound more efficient. Now a lot of people take scans but they're not documenting those scans and then they're not billing for those scans. And when they don't bill for those scans that's revenue for health systems that they're for going you.
there really isn't, and I guess to the team's surprise, there really isn't an enterprise management software that ties the scan, the ID and the record of the scan to the EMR and then to the billing process to ensure that these scans are paid for. And so as our team approaches hospitals...
regardless of who the incumbent imaging company is.
They pretty much all are excited about the fact that butterfly solving a pretty major problem for them.
And so the early signs are we're seeing in a few of our early sites then capture simply more reimbursement. So the ROI is
is very immediate. Literally being able to see what the baseline in reimbursing for imaging was the prior month and then after compass seeing that go up and go up materially. So it's a big positive for us and we're going to continue as we mark it compass.
to make Blueprint and the bundling of the entire solution a priority. But I think our team has been, I think the prior management team, prior leadership were very visionary and did a great job in this area. I think I feel blessed to have a product like that with everything else that's in the pipeline.
pleasure to connect with you over the phone today. So a lot of commentary, you have provided, and I appreciate the fact that you're just getting your feet wet, and there are a lot of...
unknowns out there. Totally understand. Joe, one of the things you mentioned is repositioning the company, and I think I'm paraphrasing here, as a technology enabled software company or AI enabled something you had said.
Moving forward, Joe, would you advise us to start looking at the software component of the business, you know, that line item, specifically in terms of the ROI on these strategic initiatives, rather than the handhelds being placed per se as an ultimate driver of software.
question. And I look forward to when I feel comfortable providing guidance and I feel we have initiatives in place that are driving revenue to help at that time, help you know forecast see it you know and and peel it out in the right manner.
The reason, you know, while I have not been inside the operation long, it's only been, you know, a couple weeks of meeting people, but I have been studying the business from afar. And I have been thinking about the business and I had a thesis on the business before I took the job.
And in thinking about the business, what I'm seeing is that we are having an ever-increasing install mix.
and our capabilities in our software are becoming more sophisticated. And so the way to look at it simply is every quarter we're going to increase our install base. We are not in any way shape or form de-emphasizing hardware.
But I see an opportunity that as new capabilities come out,
as possible. But then second, as our R&D continues to be productive in creating new solutions, that's just, that's not just increasing the ASP on the new sales, it's going back to the base business reinvigorating them and selling them software. So it's not really a pivot.
But it's a different way to monetize the business. I think what that'll do, you've seen in the quarter, I think we were 54 percent gross margin going to 59 percent, or I don't know if that's exactly right. But we've seen an increase in gross margin. I'd like to see this business with much higher gross margins than we're at. If we can keep our hardware at an appropriate price to create market access.
contribution profile of a company increasing, you know, uh, over time as we execute on that strategy. So I'm very happy to unpack it for you when we get closer to guidance, but at least that's how I'm thinking.
Fair enough. Joe, again, maybe a preemptive question, so please forgive me for that.
Our mass is, you know, the rough software revs per handheld are like 400-ish.
remapping the company, right? Whether it's 12, 18, 24 months hence, how much do you think is the additional leverage you have? Can x go to 1.5x, 2x? Or how do you think about, you know, this is the target where we have to get?
basically to monetize or upsell, like you had said, with all these new apps, the Beeline and presumably others coming online shortly? Well, so thank you for the question and I'll caution myself not to get ahead of myself.
acquisition from a customer side, what it costs in its entirety.
We're a third of what the market is charging today, maybe half of what the market is charging today.
So even just to get the parity with enhanced features, we have a lot of pricing upside.
just to get the parity with enhanced features we have a lot of pricing upside.
So the way I look at it though is I would like to keep our handhelds on our hardware price competitive and I see, you know,
Upside in selling more software now Every time we sell more software. We're going to have to cost-justify the value of that software So it's not like we're just going to be increasing prices on existing customers. That's not that's not what we would do What we would do is we would launch a new algorithm that enables people people
to capture, build, serve in an entirely different way. Then just as any software does, you calculate what is the net value and ROI of that software, and you make it available, they can buy it or they don't have to buy it. I think what we'll find is, first of all, we'll probably self-specialize.
We may be doing something in cardiac, and then we may be doing something in OB, and then another thing might come out for bowel. And then those subspecialties will see that opportunity and then will increase the capability. So it may not stack up, you know, for one customer constantly with the software that comes out, but it'll allow us to increase the amount of value we are getting per customer. So I think given our current price position, some pro glue may make it easier for customers to experience
We have a lot of upside and the only thing that we would be doing is Selling something that the customer values and I think there's headroom Got it. Thank you for taking my questions Joe and welcome aboard Thanks for us Thank you, the next question comes from Neil Chatterjee from Bvily. Please go ahead now your line is now open
chat GPT and generative AI, just curious if you could just talk about how the AI in your platform and with your various tools maybe reflects any of that and the potential to leverage that on the Butterfly Enterprise software platform, whether it's diagnostically or with ultrasound workflows or billing. Yes, that's a great question. Thank you. Thank you.
So first of all, most of the AI focus to date has been on how do we make it
easier for a medical professional that is not trained in imaging. How do we make it easier for that? And so that's what we've done historically. But the team has been cycling. And we have a launching a project now on our entire business reinvention at all levels, whether it's currently, whether it's in development.
whether it's in customer service or whether it's in direction. We are looking at always to optimize our business with this new level of intelligence. What I've learned in my time in digital health, and I think it's a pretty basic fact in AI is, and it's actually, at least to one of the greatest frustrations.
And so there's no mass national database to learn from. And so AI is not just about the algorithm. It's about the access to the data to be able to learn and then create the appropriate outputs.
And that's where I think we have a distinct advantage. This company was architected correctly from the beginning. Our founders vision was dead on. In my last company we had a closed, secure, private cloud that all of our transactions went through and we leveraged it extremely well to be able to deliver telehealth across enterprises.
and Butterfly was architected in a very visionary way where we capture massive amounts of data and so it allows us to learn on our customer behaviors, it allows us to learn not just in clinical image interpretation but it allows us to learn what they're using and how we can serve them better.
Our founder personally challenged me to look at business re-intervention to ensure that we're on the cutting edge using these tools, and I can assure you we will do it.
be a new model to replicate. I think in the past, you've had kind of position shaping that helps run device pilots and certain departments, but how might this be different with Blueprint and for instance, to divide the equipment?
So this is Darius and thank you for the question. If you're referring to the medical school focus that we mentioned on the call, that's actually very consistent with the strategy that we prosecuted in the past and it's just another proof point of how butterfly is really transforming the way that medicine is being taught from the very get-go. In this case this is my student class and this is my private teacher class.
the medical schools remain a key focus for us because obviously strategically, they're empowering the next generation of students with butterflies. So is that what you're referring to? I was talking about the large medical center.
Oh, so we're referring to some of our local projects. Yes, so if you're referring to our focus on large health systems, for example, with, which we announced in the past. We've continued to make key progress there. In fact, we went live and 15 new departments this past quarter, including easy anesthesia, the PICU, NICU. Adult ICUs and many others.
That remains obviously a focus, as Heather and Joe mentioned, and we continue to focus on that area as we deploy Blueprint, which is our Compass software and hardware in more large health systems. Got it. So continue. All right. Sure. And then just one other follow-up here. Just in terms of the, you know,
I think last quarter you talked about adding a dozen new Blueprint accounts. Just curious how that tracked in the first quarter and how that activity is looking going forward, including with the recent Cloud 2.0 launch.
Yeah, directionally we continue to add new customers. Q1 does tend to be a little bit lighter than Q4, so sequentially it was lower, but we continue to add more customers.
Great, that's it for me.
Great, that's it for me. Thank you. Thank you.
Great, that's it for me. Thank you. Thank you.
Thank you. As a reminder, if you would like to ask a question, please press star followed by 1 on your telephone keypad now.
Our next question comes from Danielle Antofie from UBS. Please go ahead, your line is now open. Hey, good morning, everyone. Thanks so much for taking the question. Joe, congrats on the role in joining the team there. I'm curious, Joe, given your background in this industry, as we think about
the goal of Butterfly and eventually home care and things like that. How you think about the competitive barriers to entry here? You know, GE Healthcare did recently buy Caption Health. So just curious about how you think about the competitive modes and where Butterfly can sustain. How do you think about the competitive modes and where Butterfly can sustain?
competitive advantage in that regard. Oh boy, I wish I could answer that question today. I'll answer it for you in the future. I think the tables are, first of all, I was with caption and I'm a big fan of caption.
And a big fan of GE, to be quite honest with you. It's an incredible team of great people, and I consider them friends.
And a big fan of GE, to be quite honest with you. It's an incredible team of great people, and I consider them friends.
I personally believe Butterfly will be able to show some pretty tangible advantages in access to the home market. Personally I think the big four in imaging have advantages in the hospital market. I think there are contracting, leveraging, they can give away.
Okay, okay. Yeah, no, that's great. And then just Heather, maybe this is a question for you, just as we think about the models appreciate, you know, pausing giving guidance for now. But just from a capital needs perspective, how we should be thinking about where butterfly is as you're sort of reevaluating this.
the strategy here? So capital referred specifically to fundraising or capital referring to cash. So we're in great shape from an Ash perspective and I figured that's what you mentioned. Yeah, just wanted to make sure. We're in a great place in the cash perspective.
20 of runway into 2025 will continue to look for additional efficient teams and so stay tuned on that. Okay, thank you guys so much.
Thank you. Thank you. Thank you. As a final reminder, if you would like to ask a question, please press star followed by one on your telephone keypad now. This does conclude our Q&A session for today, so I'll hand back over to you.
organization you know back up after you know what they've been through the last six months it has been very challenging and so we're going to focus on getting the organization you know to where it needs to be and then I'm telling you these things that we're working on I'm very excited to share with you because I believe
you know, by the end of this year in 24, it's going to be a lot of fun around here. So thank you for your time. Thank you ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your lines.