Ladies and gentlemen, hello and welcome to the Butterfly Network, Inc. Q1 2023 Earnings Call. My name is Maxin and I will be coordinating the call today. I will now hand you over to Heather Getz, Executive Vice President, Chief Financial Officer to begin. Heather, please go ahead when you're ready.

Good morning and thank you for joining us today. Earlier this morning, Butterfly released financial results for the first quarter ended March 31, 2023, and provided a business update. The release and earnings presentation, which include a reconciliation of management's use of non-GAAP financial measures compared to the most applicable GAAP measures, are currently available on the Investors section of this company's website at ir.butterflynetwork.com. I am Heather Getz, Executive Vice President and Chief Financial Officer of Butterfly; alongside Joe DeVivo, Butterfly's Chairman and CEO; and Darius Shahida, Butterfly's Chief Strategy Officer, will host this morning's call. During today's call, we will be making certain forward-looking statements. These statements may include among other things, expectations with respect to financial results, future performance, development and commercialization of products and services, potential regulatory approvals, the size and potential growth of current or future markets for our products and services, and the impact of the macroeconomic factors on our business. These forward-looking statements are based on current information, assumptions, and expectations that are subject to change and involve a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those contained in the forward-looking statements. These and other risks are described in our filings made with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, and the company disclaims any obligation to update such statements. As a reminder, this call is being webcast and recorded and we will be referencing a slide presentation in conjunction with our remarks. There may be a short delay between the live telephone audio and the presentation being shown. To access the webcast, please visit the Events section of the Investors 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 DeVivo. Joe?

Thank you, Heather. Good morning. I feel quite fortunate to join the family at Butterfly Network during such a critical time in its history. I want to thank Dr. Jonathan Rothberg and the Board for the opportunity and also the warm welcome I've received from the whole Butterfly team. I've only been here a few weeks, and I've enjoyed meeting the incredible people who've brought so much success to the company, and I'm really excited about Butterfly's potential. During my career, I've seen the early days of minimally invasive surgery, surgical robotics, interventional oncology, and most recently, digital health, 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 Butterfly's one-of-a-kind hardware enabled by AI tools. This technology will empower providers to help treat and diagnose patients where they are. In a moment, Darius will provide a business update on the quarter, and Heather will communicate the financial results. But first, I'd like to share my initial perspective on the opportunities that I see. Over the past couple of years, I served in the AI ultrasound field, actually partnering with Butterfly, and I've seen firsthand how impactful enabling clinicians to capture images at the point-of-care can be. Since the inception of Butterfly, we've spoken about the importance of ease of use in empowering practitioners worldwide with ultrasound. Because nearly two-thirds of the world's population lacks access to medical imaging, and 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. With our Ultrasound-on-Chip technology, Butterfly has made imaging more accessible to medical professionals worldwide, and frankly, easier to use. This is why we've invested so heavily in the development of novel AI applications to empower practitioners wherever they may be. From our Auto Bladder Volume tool, to our cardiac guidance and interpretation partnership, to our auto gestational age 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 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 in pneumonia and many other cardiovascular diseases. In fact, there are more than 1 million diagnoses per year for pneumonia alone in this country, and our B-line application will make it easier. Butterfly is clearly at the forefront of AI development as we seek to make our solution as easy as possible. And while this approach and the importance of AI has garnered a lot of attention, investment and M&A recently, it's been at the core of our DNA and the company strategy since the very beginning of Butterfly. Our secure cloud empowers our AI developers to build applications for our customers by tapping into our database, which represents the largest ultrasound image repository in the world. Importantly, this focus on novel AI tool 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 POCUS is unable to do. Going forward, it is our intention to start monetizing our AI algorithms across our large installed base. Over the past three years, Butterfly has deployed more devices in the market than any other company with nearly 100,000 ultrasound probes shipped to date. Butterfly has an amazing ability to reach, deploy, and empower users virtually. I view Butterfly as a technology-empowered software company. Our chip-based hardware provides us an accessible and growing user base that our software can be sold to, providing incremental software opportunities. A recent FDA clearance has paved the way for other developed tools that are in queue for regulatory submission. 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 disrupter is never easy. I've been there many times before. 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. So with that, I'll turn it over to Darius to comment on our commercial and business progress in the quarter. Darius?

Thank you for that introduction, Joe. We are excited to have you on board. In the last quarterly update, we shared a recap of all the progress that was made in 2022 across each of our four pillars: health systems, international expansion, path to home, and adjacent value stream on our path to democratize medical imaging. 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. 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, this quarter kicked off with more large institutions embracing Butterfly and deploying our Blueprint solution at scale. 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 solution to help facilitate point-of-care ultrasound across the continuum of education. The institution expects to use our QA and 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, and to train hundreds of students, residents, and physicians. While we are introducing this meaningful partnership today, the deployment was signed in April. We look forward to sharing more details in the coming months. Another notable partnership was our multiyear rollout with high-quality medical education, an internationally recognized emergency airway management and point-of-care ultrasound organization based in Minnesota. This deployment will put Butterfly IQ probes and Compass software in over 100 rural and critical access hospitals throughout the State of Minnesota. The deployment will be paired with extensive POCUS training as part of the grants awarded to HQ Med Ed by the Helmsley Foundation aiming to boost sonography and POCUS training, and ultimately, improve access to exceptional medical treatment for all Minnesotans. 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 Blueprint across their health system. Great progress has been made in this area with the implementation now underway. The connectivity is in place, and first students arrived 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 at 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 cardiovascular point-of-care Ultrasound 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 POCUS 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 examination. 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+ Vet. This randomized control trial found that by equipping students with Butterfly IQ+ Vet and providing simple self-guided digital materials for device use in 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-driven program increased POCUS 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. Encoding 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 sonographers in real-time using the Butterfly IQ+ 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. 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 U.S. 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 offset by softness across our other channels, including e-commerce, international distribution, and veterinary. Breaking our revenue down between products and 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 2022. This increase was due to a higher installed base of products with the accompanying subscription software, renewals on the existing base of software users, and software implementations completed during the quarter. Turning now to gross profit. Gross profit was $9.1 million in Q1 2023, compared to $8.3 million in the prior year period. Gross 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 revenues. Also contributing to the increased margin was improved manufacturing productivity and other efficiencies. Offsetting these benefits was higher amortization of internally used software, which reduced margin by 560 basis points. For the first quarter of 2023, adjusted EBITDA loss was $22.3 million, compared to a loss of $39.7 million for the same period in 2022. The improvement in adjusted EBITDA loss was driven by the increased gross margin dollars, 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 equivalents including restricted cash were $198 million. Our 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 strategy. As such, we cannot affirm full-year 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're expecting Q2 revenue to increase sequentially, but still be flat to 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 veterinary channel will see expansion albeit at a slower pace than expected. We are, however, expecting continued softness in our international distribution as well as lower global health revenue as we anniversary 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, while we saw strength in our U.S. direct and global health channels, we experienced higher than expected disruption and softness in our other channels. We believe we can navigate this disruption we are seeing, while still realizing the vision and mission of Butterfly. Under all scenarios, we have a solid cash position, we continue to evaluate and find opportunities for efficiencies and we will continue to invest in our current and future growth, while closely scrutinizing our investments to ensure that we pick the maximum ROI projects and carefully evaluate the tradeoffs. Meanwhile, 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.

Thank you, Heather. 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.

Our first question today comes from Joshua Jennings from Cowen & Co.

Congratulations Joe on joining the Butterfly team. I wanted to just review, I guess, the details on the U.S. commercial team. And maybe just to remind us of the U.S. sales infrastructure. It sounds like Joe you may be reevaluating the commercial strategy in the U.S. and globally. But just have a better handle on the combination of direct sales reps and distributors. Anything incremental or sort of detail you can share would just be helpful to understand where that commercial team sits and how that could evolve over the course of 2023?

Yes, hi, Josh. So, if you look at our direct sales force, as we mentioned on the year-end call, when we restructured it, we did reduce some of our direct sales force and focused them specifically on the hospital systems which has been successful in Q1. As I mentioned, we were up 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 that go-to-market strategy and we will revisit it on the Q2 call.

Understood. Thanks then. And was hoping to also just get an understanding of the hardware and software pipe initiatives, anything you can share to what investors should be expecting in 2023 in terms of new capabilities, features of the software or for the next gen Butterfly IQ System?

This is Joe, Josh. So first of all, historically, when we would sell software, we would sell it in a bundle, in a subscription package. So what we're doing is we're in the process of coming up with different levels of bundles, and being able to monetize new capabilities as they come out with a different pricing strategy. So we're working on that today, and I'd expect in the year or 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 B-line algorithm sometime in the second quarter. That will reinvigorate our subscriber base and find ways ultimately to upsell. I think 2024 is the year, where you're going to see a lot of incremental software, and also some hardware come out. We'll certainly update that more specifically a little bit later. But I have to say, coming in as a new CEO, and learning what's in the pipeline, I feel like a kid in a candy store. There's so much this team has done, and I'm actually stunned it hasn't come to market yet. So there are AI applications or software improvements, hardware. So it's going to be a lot of fun.

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 your patient self-scanning or even provider scanning in the home. Any progress there and then anything you could share just from the timeline, when do you think that work with the FDA will be done, and you kind of have a defined pathway forward in terms of what's going to be required?

We are reviewing our plans and there may be opportunities to achieve our goals sooner than anticipated, potentially with less complexity. Please allow me some time to organize the details for you. The home and offsite markets present significant opportunities for us, and I'm excited to share updates. I wish I could divulge everything I know at this moment, but what I really need are timelines and deliverables. I want to provide you with clear information on timing. I have a strong commitment to this business; from my perspective, the hospital sector is crucial and robust, though it does face strong competition that will defend its market share fiercely. Fortunately for us, there is an even greater potential beyond hospitals. In the realm of digital health and virtual care, we've observed that payers, providers, and employers are actively seeking ways to lower care costs and manage patient care at home. Given my experience with InTouch and Teladoc, I see vast opportunities ahead. I don't consider this just an experimental project; it's about making internal connections and packaging our offerings in a way that adds value to our company. However, it's still a bit premature for me to define those connections clearly, and I look forward to the time when I can share that with you.

I wanted to ask about the Blueprint software package, specifically regarding enterprise software. The software revenue line has been performing well since its introduction last year. Could you help us understand how this strategy facilitates deployment? Additionally, Blueprint seems to be gaining traction as some hospital systems are adopting it alongside the Butterfly IQ handheld devices and their capabilities. Can you shed light on the opportunity within the United States for Blueprint as a standalone software solution for hospital systems, excluding the devices? Also, how has it been contributing to the growth of software and other services revenue over the past few quarters?

Sure, Josh, I'll do my best and if I have any gaps, I'll let the team assist me. Our enterprise software is called Compass. Compass, along with iQ+, which is our enterprise software bundled with our hardware, is referred to as Blueprint. The Compass software has exceeded our expectations. We do a lot with software; we're using it to fine-tune our chip for accurate imaging, develop AI algorithms to enhance image capture success, and leverage Compass to streamline operations in the medical and ultrasound businesses. Many people perform scans but fail to document or bill for them, resulting in lost revenue for health systems. Surprisingly, there's no enterprise management software that connects the scan, its ID, and documentation to the EMR and billing process to ensure these scans are compensated. As our team approaches hospitals, regardless of existing imaging providers, there's significant enthusiasm about how Butterfly addresses this major issue. Initial indicators from some of our early sites show an increase in reimbursement rates. The return on investment is immediate, as we can track the baseline reimbursement for imaging from the previous month and see it rise materially after implementing Compass. This is a significant advantage for us. We will continue to prioritize marketing Compass and bundling the complete solution with Blueprint. I believe our team, along with the previous leadership, has been very visionary and has made great strides in this area. I'm fortunate to have such a product alongside everything else we have in development.

The next question comes from Suraj Kalia from Oppenheimer & Company.

Joe, welcome aboard, pleasure to connect with you over the phone today. 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. I totally understand. 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, 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? How would you advise we'd start looking whether Q2, Q3 onwards in terms of these two line items?

Thank you for the question; it's a very insightful one. I'm eager to provide guidance when the time is right, as I believe we have initiatives driving our revenue. I have only been in this role for a couple of weeks, meeting team members, but I've been studying the business closely from a distance and had my own ideas before starting this position. What I see is that we have a growing install base and our software capabilities are becoming more advanced. Each quarter, I expect our install base to grow. While we are not moving away from hardware, I believe there's an opportunity as new software capabilities emerge to offer them to customers who find value in them for an additional cost. This will require creating a system that allows customers to enhance their packages and purchase more software from us. We aim to expand our business by increasing our hardware presence, but as our R&D produces new solutions, it will not only boost our average selling price on new sales but also reinvigorate our existing customers by selling them software. This isn't a complete shift in strategy but rather a new way to monetize our business. I believe this approach will enhance our profitability and contribute positively to the company's growth over time. I would be happy to discuss this further as we approach our guidance timeline.

Fair enough. Joe, again, maybe a preemptive question. So please forgive me for that. Our math is the rough software rents per handheld are like 400-ish, I don't have it in front of me, but somewhere in that ballpark, I guess let's say it's X revenue, software revenues per handheld. Let's assume a metric like that. Joe, as you think about the 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 this is the target where we have to get basically, to monetize or upsell, like you had said, with all these new apps, the B-line and presumably others coming online shortly?

Well, so thank you for the question. I'll caution myself not to get ahead of myself. Butterfly is leaving a lot of price on the table. If you look at our total cost of acquisition from a customer side, it costs 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. The way I look at it, though, is I would like to keep our handhelds hardware price competitive. I see 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. We’re not just going to be increasing prices on existing customers. What we would do is launch a new AI algorithm that enables people to capture bills in an entirely different way. Just like any software, 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 we'll probably specialize, so we may be doing something in cardiac, something in OB, and then another thing in bowel, and those sub-specialties will see the opportunity and then we'll increase the capability. This allows us to increase the amount of value we are getting per customer. So I think given our current price position, we have a lot of upside. The only thing that we would be doing is selling something that the customer values. I think there's headwind.

The next question comes from Neil Chatterji from B. Riley.

Thanks for taking our questions and welcome Joe and congratulations on the new role. First off, just curious with ChatGPT and Generative AI, just curious if you could just talk about how the AI and your platform and with your various tools, maybe reflect any of that, and the potential to leverage that on the Butterfly Enterprise software platform, whether it's diagnostically or with ultrasound workloads or billing?

That's a great question. First, most of the focus on AI so far has been about making it easier for medical professionals who aren't trained in imaging. Historically, we've aimed to simplify that process. Our team has been continuously working on a project that encompasses a complete reinvention of our business at every level, including development, customer service, and overall direction. We're exploring all avenues to optimize our operations with this new level of intelligence. One key insight I've gained from my experience in digital health, which is a fundamental aspect of AI, is that a significant frustration in healthcare is that 80% to 90% of healthcare data is inaccessible to AI. It resides in countless small databases across the country, even among the largest electronic medical record companies, and customers tend to keep their data confined. There is no national database available for AI learning. AI isn't solely dependent on the algorithm; it also requires access to data for learning and generating suitable outputs. We have a unique advantage because our company was built with a strong foundation. Our founder's vision was spot on. In my previous company, we operated a secure private cloud through which all transactions flowed, and we used it effectively to provide telehealth services across various enterprises. Butterfly has been designed in an innovative way that allows us to collect vast amounts of data, enabling us to understand customer behavior, not only for clinical image interpretation but also for improving our services. Our founder personally encouraged me to explore business reinventions to ensure we remain at the forefront of using these tools, and I can assure you that we will pursue this.

And then just on the pilot programs with the large medical centers. Just kind of curious how that compares to past strategies and how that might be a new model to replicate? I think in the past, you've had kind of physician champions that helped to run device pilots in certain departments. But how might this be different with Blueprint versus just the divided deployment?

This is Darius, and thank you for the question. If you're talking about the medical school POCUS we mentioned on the call, it aligns well with our previous strategy. It's another example of how Butterfly is changing the way medicine is taught from the start. Medical schools are a key focus for us because they are empowering the next generation of students with Butterfly. Is that what you were referring to?

I was talking about the large medical center. I was talking about initiatives and clinical projects.

Yes. If you're referring to our focus on large health systems, for example, with URMC which we announced in the past, we've continued to make key progress there. In fact, we went live at 15 new departments this past quarter, including ED, anesthesia, the PICU and NICU, adult ICUs, and many others. That remains a focus, as Heather and Joe mentioned. We continue to focus on that area as we deploy Blueprint, which is our Compass software and hardware in more large health systems.

I have a follow-up question regarding the addition of a dozen new Blueprint accounts that you mentioned last quarter. I'm interested in how that has progressed in the first quarter and how that activity is moving forward, especially with the recent launch of Cloud 2.0.

Yes, so 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.

Our next question comes from Danielle Antalffy from UBS.

Good morning, everyone. Thank you for your question. Joe, congratulations on your new role and joining the team. I'm interested in your perspective on the competitive barriers to entry in this industry, considering your background. As we think about Butterfly's goals, particularly in homecare, how do you view the competitive landscape? Recently, GE Healthcare acquired Caption Health, so I'm curious about your thoughts on the competitive advantages that Butterfly can maintain in this area.

Oh, boy, I wish I can answer that question today. I'll answer it for you in the future. I think the tables are up. First of all, I was with Caption and I'm a big fan of Caption. I'm also a fan of GE because 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 options they can give away and have some to protect the rest of their business. I don't think that leverage exists in the outside channels and in home, and I think some of our software and some of the new capabilities I'll be sharing with you indicates that we have the advantage.

So, capital refers specifically to fundraising or capital referring to cash it. So we were in great shape from a cash perspective. I figured that's what you mentioned. I just wanted to make sure. We're in a great place from a cash perspective, plenty of runway into 2025. We're continuing to look for additional efficiencies. And so stay tuned on that.

This does conclude our Q&A session for today. So I’ll hand back over to the management team for any additional or closing remarks.

Great. So I want to thank everyone for joining the call this morning. Please give me some grace on my excitement, but it's real. We have to get through getting the organization back up after what they've been through the last six months; it's been very challenging. We're going to focus on getting the organization to where it needs to be. I'm very excited to share with you these things we're working on because I believe 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.