Butterfly Network, Inc. (BFLY) Earnings Call Transcript & Summary

And we're underway. All right, and away we go. Well, thank you, everyone, for joining us today. I'm Seth Damergy, Managing Director in the healthcare banking group, lead med tech banking, and I'm pleased to introduce our next company, which is Butterfly Network. With us today, we have Dr. Todd Fruchterman, who's CEO of the company; and Heather Getz, who's recently -- recent joiner as CFO, folks that I've known for quite some time. So really excited to host you guys today. I appreciate you making time. I'm going to start off with just some macro, I guess, oriented questions, then we'll pivot maybe more towards company-specific. Lots to talk about, lots of times, so away we go.

So I mean, I think the first thing I wanted to touch on is something that we all keep reading about, hearing about in the market every day, which is inflation. So I mean just at a high level, how do you see just these inflationary pressures, in general, impacting the market and specifically impacting your business at Butterfly?

So first, let me say it's really nice to be here with you. I think we've been on a really long health care journey, and it's nice to be -- a next chapter and be here with you this morning. And I think you guys are here, getting something that other people aren't because Butterfly is a really unique opportunity. And I think it's really kind of where things are pivoting to. It's what attracted me to Butterfly, and we'll talk through that in the next 40 minutes. But the people who aren't here are kind of missing out of, I think, what is really necessary to transform care which is really about informing clinical decision-making because efficiency in care is really, really important. And we'll talk more about that. So look, this is interesting times, and I think you hear that from all company management, CEOs, and I think everybody is kind of working through what it all means, what's true inflation, what are these inflation pressures really driving as it relates to behaviors and activities. And so when we look at the macro environment right now, obviously we want to look at how inflation is impacting both our -- the elements that -- of our business from a supply side, from a continuity of business, from a customer perspective, from a health care delivery system, and so we are obviously looking at that. It's -- we haven't -- we've been fortunate right now that we've been able to be very efficient in what we're doing as it both relates to our supply chain, our internal operations. So we've been able to increase in productivity and yield, and we've been really been able to manage cost. And that's allowed us to partner more, not have to pass through some of these increases to our customers. It allows us to kind of evaluate the situation. I think more than that, that's on the operational side for us, we're really evaluating what is it doing to decision-making, right? What's it causing in the health systems. And there, I think for us, it's causing us to bring some discipline and responsibility into the business. Obviously, the macro dynamics changing so frequently right now, so we're looking -- and Heather coming onboard. We're looking at how we want to run the business and what we want to do a little bit, so we're taking another look back on maybe being a little bit more prudent with what we're doing and a little bit more prioritized and structured and what we're doing and how we're using our resources because of the macro environment, but we're not -- but it's not causing us to shut down. We're just trying to be a little bit more prudent, I would say, moving forward. But on the other side, I think it also allows us to have -- even I think in the conversations in like the health systems and some of the environment, it's allowing us to take advantage of the challenges and turn them into opportunities. And I think that's where Butterfly can come in. We bring a lot of efficiency into the health care system. We bring a totally different perspective on cost to do different tasks, and I think we can get into that in some of the questions later. But Butterfly is a lot about workflow. It's a lot about efficiency. It's a lot about information. It's not about ultrasound. And what this is allowing is it's allowing us to get to the table and have different conversations. Now you have to work through that because in the macro environment like this, people are a little bit more cautious. But what's been really good for us is it's actually bringing us to the table and allowing us to have a lot of conversations.

That's helpful. And I mean, I think -- just for full clarity, I mean, I think you said it on the end of the first quarter on your call, you've got a big partner on the chip side. It sounds like you have plenty of supply, so no chip shortages for Butterfly. No supply chain issues there.

We're well set for -- into the future, and we have the chips locked in, and that's where you're seeing some of the challenges with technology companies.

Okay. So -- and I'll just say that one of the things as people look around new technologies and like where Butterfly is, this is a real advantage for us. Like other people kind of hand-wave technology or solutions. It's a lot more than just throwing up a device. So we have a device that has an established supply chain at a time where it's very hard to establish a supply chain. We have a great partnership, and we continue to evolve our partnership with TSMC. So we have chip supply. We have chip development and partnership, whereas others are just trying to get people's time to get anything. We have strategic chip development. We're staying on our development plans for our next generations. We're able to do that at a time where it's very challenging even just access chips, and that's allowing us to look at our hardware and our software and our solution in a multidimensional fashion. So I'm really proud of the team. We've been able to work through the component side of our supply chain. We have good relationships with those people, and we're in a good position. And we've been able to also, during this time, work on the reliability and durability of the product, so we have a really well-functioning device out in the market.

And I love how you refer to it's your solution, right? It's not a product, software. It's service. It's data capture. It's a solution. So I mean, if we're in this changing environment -- let's say the hospital environment is changing a bit because while you're not passing along price, a lot of others are. So we're hearing more and more about hospital profitability getting crimped. I think there's some suggestion that maybe the capital environment could get tough. Being a capital-light or more of an operating solution, does that position you a bit better than some of the incumbents that are more heavier but more focused on bigger pieces of equipment and traditional service models?

Yes, absolutely. And what I've been seeing is that it's different in every hospital. If you've seen one hospital, you've seen one hospital, right? So there are some that are more constrained than others. But as Todd can explain, we bring a solution into the hospital that can help benefit the company -- or benefit the hospital from an economic perspective as well that can free up cash flow for them as well.

And I think the other thing -- I think Heather said it, but I think the other thing is we offer some flexibility, right? And I think today, optionality, flexibility in a dynamic market is really important, and I think that's one of the things that Butterfly offers. So it's not a big, traditional capital sale, right? We -- it's about -- we work across different departments, right? So in a hospital, like you have to know how the flow of expenses, and so we give them some ability to work within the departments to work centrally, right? So we can partner up with them and look at what they're trying to accomplish in the solution. So -- because we have the IT component of it. We have the hardware component of it. We have the data component of it, and then we have the educational and services pieces.

And then maybe -- so 2 questions around human capital. One, in the hospital, I mean, I have to imagine that you also provide benefit from a practitioner standpoint. We keep hearing about shortages of providers in the hospital, and I'm guessing that there's -- you're allowing a lot more throughput, let's say, with the flexibility of the IQ and whatnot. But that's one and. And maybe two, I want to pivot more to Butterfly, in general, your operational infrastructure, a lot of software and design developers, any like difficulty in retaining talent, 2 different kind of questions but both human capital.

So look, on the hospital side, I think there's multiple dimensions to what we do on the personnel side. So one, I think that health care practitioners, like they're special people right, and they want to do a great job and they want to enjoy their jobs. And when you're kind of constantly being pushed through, it's not just that they're overworked, right? It's also the jobs become mundane, and they become a bit tiresome. And so I think Butterfly is exactly the type of technology that -- like it makes it a little bit more enjoyable. They get to like expand the dimension of their job. So it's really interesting when you're in the hospital with the technology and doing different things with the people who actually use it. It becomes like a totally different experience, and they really actually start enjoying it, and they start thinking differently about their job. And one of the things that we've been trying to do with Butterfly is to really get people to understand that it's a paradigm shift in how you deliver care, and that's really kind of like energized the people who are starting to really embrace Butterfly, and it's a totally different conversation. So the first thing that we have to do in our conversations is get them to understand it's not about doing an ultrasound. And like once we start getting into that, the conversations get really interesting. They get really exciting, and they get very multidimensional. So that's been helping. The other piece is I kind of have a philosophy in life and in business, which is I don't make my problem your problem. And one of the things that we've tried to do is really take the burden off the user. And so we know that every barrier in health care is a barrier, right? Like it becomes a blocker. And so one of the things that we've kind of come to understand is that it's one thing to use ultrasound in your clinical workflow. It's another thing to like learn ultrasound. So we're really trying to get people in our platform to make it very easy. And you see our 3 core principles of easy, everywhere and economical. And so easy really deals a lot with us and how we package it, how we think about it as a clinical assessment tool, how we teach it, how we get people to use it and drive the competency, how we use AI. And so it's to get people to an answer to a result and help them do their job and not put the burden of learning ultrasound on them. So the approach of like, here's an ultrasound, you figure it out, like we like put a completely 180-orthogonal pivot on that and really went back and said how can we help people get to -- and it was a different mindset, both internally and externally, for the company. So those are the types of things that we're doing to help drive the efficiencies in the workflow to help make the experience better, to help make it for the systems. And then we have an approach to deployment and education and support that we have in what we're doing in our deployments, both in our enterprise-wide deployments and where we bring people up to speed. So it's really an approach to get people to understand what Butterfly is, and it's really about making more informed clinical decisions, the practical application of ultrasound and how we help people adopt that and bring that into practice. On the Butterfly side, I think one of the things that we have, like everybody else is, right, we're trying to create an employee experience that employees want to work in. And so we have super talented people. We have people from all different backgrounds as we've evolved from a private company to a public company, and we've added to the solution. So I think what we're trying to do is create a great Butterfly employee experience. We've opened a new facility in Burlington that is a really cool way to work. We're looking at how we are working across what hybrid work means, what the right way to work for Butterflies. And we're trying not to compare ourselves to others. We're trying to figure out what the right way to work for a Butterfly experience is to make sure that our employees enjoy working at Butterfly and that we achieve the objectives that we need to, to be successful as Butterfly. And so these are all things that we're learning. It's a really interesting time to be leading a company and working through all these things. But -- and then we have a very strong diversity of talent within the company. We have hardware, software. And it's not just simple software. We have mobile. We have clinical software. We have enterprise and cloud software. So that's the other thing for people getting to like learn Butterfly is we're working -- and we have to work effectively across all those dimensions. And if we don't, we can't bring the solution. So people who hand-wave ultrasound and are working on a device, who are working on a software platform, it's really the ability for Butterfly to bring the experience together, bring the data into the workflow that does that, and we're really having to do that across the entire employee experience.

Very helpful. Maybe you said the 3 Es. Let's focus on the product everywhere. I'd love to walk through -- like take us through the sale because I know you've talked about sales cycles in the past. How do you get everywhere? When you've got so many different opportunities for use of the system, how can you convince the entire organization that this is something we want to deploy ubiquitously?

Do you want to start or...

Yes, sure. I'll start. So...

A week or 2 into it.

My [indiscernible] in, right? So -- and just to add to a little bit what Todd was saying and this plays into what you're asking is if you think about what Butterfly enables, it's a change in the way care is delivered. And it's speed to diagnosis, right? And you can think about ultrasound in the hospital, but you can think about ultrasound everywhere. You can think about it, whether it's in an ambulance. You can think about it at the doctor's office. You can think about it in the hospital. But across all of those places, giving people access to more information to better diagnose their patients or potential patients is a really powerful thing, and it adds to the efficiency of the system, right? So you're not sitting at a bedside saying, "I wonder what's going on." You figure out what's going on. You don't have to send them, get an order release, send them down to X-ray and figure it out. So that easy and everywhere and economical plays into everywhere care is initiated. And so yes, you have to focus, and we're focusing on enterprise. We have some ambulant companies that we're doing with internationally, and we have some government organizations internationally that we're helping. And all of those things will add to the awareness of bringing ultrasound as a technique to provide information, not just an image.

I was going to add for a second. So just to add to kind of what Heather was saying, I think if you -- the simple way to think about Butterfly, right, is that -- when you take a step back for what Butterfly is, the problem that we're solving is that many clinical decisions are made with incomplete information, right? And it's fundamental, right? And this was kind of a pivot for us. It was a big shift for us last year to really understand what exact problem we were solving. And then when you take that down, we said we're going to do it -- we're going to focus in 4 main pillars, which is we're going to focus in health systems because that's kind of where you drive your care change and evolution, right? We were going to focus on geographical expansion because once you start understanding how to do that in systems, you have to figure out the nuances of where you do that. We were going to figure out -- we were going to focus on the continuum of care, so the path to home. Because ultimately, the way to have efficient care is to have consistent care. And the thing that drives consistent care is information. So how do you keep consistent, high-quality care in all care settings? It's a focus of ours, and we can talk further on that piece. And then we -- we actually, as Butterfly have a fourth pillar, which is our alternative channels and particularly vet, which is going really well and a really interesting value proposition. It's actually allowing us to see our business model evolutions really quickly and rapidly. It's super helpful. Actually, the yin and yang between human and animal health has been great. And so we looked at that, and then we had our core principles. So we said, if like that's the problem we're solving and this is where we're solving it, and these are the elements of how we're solving it, then we set our core principles that layer over that are easy, everywhere and economical, and we talked a bit about easy. I won't rehash it. The everywhere piece is kind of a mindset, right? So it's 2 things. We want to basically have a Butterfly in every pocket for every patient every time. And it's what I call a washout effect of medical device and in health care practice. So if you have a value proposition, and you go with a health economic paper and you bring it to a health care system and you have a champion, the health care system doesn't benefit. It actually increased costs because it's all about standardization and the ability to drive the care delivery. And so one of the things that we've been really focused with Butterfly is on clinical care pathways and workflows because in order to achieve the economic benefit, it has to be the standard of care, not the exception of care. And so one of the things that we've been trying to partner with the health systems is not just to throw it out there and let practitioners do it, but we've been trying to do it in that way. So when we say everywhere, we mean that it's every pocket, every patient, every time, that it's a way of thinking. It's informing your decision making, not confirming your hypothesis, and that efficiency is yielding the benefit of that information being present at the decision-making time, not information that's changing the care that you have. It's informing the care that you have, so it's right from the beginning. And then that ability to disseminate that across the continuum, and then that drives the economics. So it's really -- I mean, it's super exciting because when you break it out to this, it becomes a very much a paradigm shifting driving thesis within care delivery.

So just to not summarize, but I mean, if I interpret what you said, right, you get this trickle-down effect as you get into an institution and you start to deploy more and more, I guess, systems and more products across it. The one that you've cited a couple of times, I think Rochester was a huge win for you guys. I know it's going to be a big contributor. How should we all think about like an IDN deal like the University of Rochester, as -- how does it contribute to revenue over what period of time? And then second, from a sales funnel perspective, how many more of those are on the come? Or like how do we think about like the cadence of new systems adopting Butterfly?

Yes. and I'll take the revenue question. From a revenue perspective, it's multifaceted, so it will be a multiyear revenue recognition. There is some upfront capital that they acquire, and they continue to acquire additional capital over time. But also the software subscription, which we like, obviously, because it builds an annuity for the business. And it just layers on as you add more of an installed base, and then I'll let Todd take it from a strategy perspective on the different deals?

So I think if you look at Butterfly right now, people are understanding exactly what it can mean to them. right? And this is not easy because in health care, changing paradigms is super hard, like it really is. And so people think of Butterfly as an ultrasound. Ultrasound trigger certain things in the hospital. And so we're really moving it to a clinical assessment tool, and it's a lot about using ultrasound, not doing ultrasound. And these are conversations that's really hard to have in the health system. And what I would say is we're making tremendous progress with them. When you look at our enterprise-wide and you look at Rochester, for example, this is the beauty of Butterfly, and this is what we did over the last 12 to 18 months is we really packaged up our software solution and Butterfly Blueprint. And Blueprint is really important because what it does is it allows for encounter-based workflow in the hospital. There's not a lot of devices that have software in the hospital that allow for effective encounter-based workflow. It's very important. It's a huge enablement. And so Compass allows for encounter-based workflow, and it allows you to deploy thousands of devices, right? That's the other thing. When you think about ultrasound or point-of-care ultrasound, you're not talking about thousands of devices. So what Compass allows is it allows you to credential, QC, image transfer, bill, right? Nothing existed prior to that. And so the other thing that we're doing for the hospitals is we're allowing third-party access into Compass, so it allows them to structure how they use ultrasound information. So it becomes a real partnership, and it does become a real evolution in care delivery. So that -- so Blueprint and Compass really kind of lay out how education, deployment, information transfer, encounter-based workflow. This was a very big enabler, and we're making Compass and Blueprint a more robust program. The piece of like a Rochester is that when you start doing that, it becomes really interesting for the hospital. That's when the conversations get really cool because now you have a backbone that you can hang Butterflies off of, and you can do different things with them. So like, for example, at an institution like Rochester, they look at how can they do clinical care transformation in different departments, but they can control the deployment, right? So they go to primary care and what they want the workflow in primary care to be. They can go to anesthesia. They can go to orthopedics. They can go to nursing, right? And they can start looking at where do they want to use the devices, how do they want to use devices. They can control what they're trying to accomplish because it's being rolled out in a clinical workflow way, not in an ultrasound way. And it really -- like this is like super -- this turns it upside down. And so you go back to that, but it also becomes really interesting because you look at it from a work -- like a workflow perspective. So with automated bladder scanning with Butterfly, you now have Compass in your system. Now you can just deploy a Butterfly into nursing, and now you don't need the bladder scanners all over the hospital, right? Because you already have Compass in place. You have Butterflies. Same thing with vein finder since we have biplane and needle visualization, you have an incredibly effective way of putting lines in from peripheral to central lines, right? So now when you start having these conversations, we're like wait a minute. And you have a conversation with the C-suite of a hospital there's not a lot of opportunities where they can take a structured approach, put an IT system in place and then hang these things on it. So they're looking at now structured deployments where they look at the clinical workflow. they look at the nursing workflow, right? They're looking at care transformation and advancement, so how do they want to practice and do that. And then they look across care settings because moving the hospital to home and moving care out of the hospital but being able to have the continuity of care is really important and Butterflies allow you that. So how do you deploy that? So -- it's a very interesting conversation. And then what I'd like to say is, and I'll just -- what I like to say is it's economics your way. Because in medical device, 100%, and you guys have all been around for a long time, in medical device, reimbursement drives utilization. It's why costs keep going up, and it's kind of like the med device -- like it is the issue in med device. With Butterfly, it's kind of like you decide what you want for your economics. If you want to use it in hospital and do procedural avoidance, right, if you want to use it for inpatient and with your hospitalists, you can control what happens because it can be a way for you to reduce secondary diagnostics and do different things for your inpatient population. But if you want to use it in encounter-based workflow and built for ultrasound in different settings, you can do that. So it's like the first time like in a structured approach, you can drive the economics that you want out of the technology, and you can use technology to do cost avoidance. You can do technology for reimbursement for procedures. You can use it in a workflow perspective for capital cost avoidance. And so I will tell you like these conversations are not normal conversations. And they've been really -- like when we have these conversations in the C-suite, we get a lot of attention because there's not a lot of technologies that allow you to make these investments and then leverage your investments. CFOs constantly get hit with things that become additive, and they become more complex. And this is a play to leverage and simplify, and it's a really big deal. But when you think about Butterfly on its surface, you don't get to that.

And on the IDN side, I mean, I think you put out a release this morning, so South Carolina. It sounds like there's another deal that just came on.

Yes. So these are really big deals, right? So Heather -- these are multiyear thousands of probes, extremely big deals for us, their software, their hardware, their services, their education, but they all include medical education and research. So we're partnering with the institutions, both on workflow, AI and deployment. So right now, we're really focused on doing a few institutional-wide deployments correctly, so we can refine Blueprint. We can refine Compass. We can establish more relevance in the clinical workflows, those paths to competency, right, those kind of killer apps in the areas that we're focusing. And at Rochester, we focused on getting the research up, the medical education and then kind of the structure of the deployment approach. And we're starting kind of a primary care and then the continuum to home care and then starting to look at how we're going to go with some of the other departments. Today, we announced our second enterprise-wide deployment to show people that this is really working. So today, we announced a second enterprise deployment with MUSC in South Carolina, which is a 14-hospital, 2,500-bed health system that what we really like about MUSC is they cover the entire continuum of care, right? So for us, it's really interesting to look at that value of information. So one of the things that we're going to focus with MUSC on is rural health and looking at health equity and seeing how can we buy getting information in different settings and systems, be able to make those decisions all the way out across the intake of a health system and care. So they're really excited to start with some of their hospitals like with MUSC Health Florence and Marion and look at how can they start doing this, and they're obviously going to roll it out at the major main hospitals, too. But they're really looking at how can they start really influencing how care is delivered. And so this is the second appointment. It will be same thing, care transformation, medical education and then research in the same way, and we have now this added dimension of the health equity piece. So it's really exciting. And I think these enterprise-wide deployments are really for us as a company that -- obviously, we're really at the beginning of a journey and a major care transformation. They're like the full embodiment of strategy. Like these are things that companies work on for years and years and years to be able to do this, and these are the -- this is like the end game, to be able to do this and structure it this way. So we're super excited to partner with Rochester. They've been amazing partners, and we're really excited to partner with MUSC and really think that this is how we bring Butterfly into true care transformation.

Yes. I mean, just listening to a number of things you're saying, like I feel like -- it feels like as an organization, you're evolving and getting better at selling into these large enterprises because you're learning about more of the -- more of like the, I guess, opportunities that someone could have. You mentioned vein finder, bladder scan, not things that you'd typically -- like vein finder, you would not typically use an ultrasound for. But I'm guessing if you have Butterfly around, you can actually use it and save your patients a lot of pain and suffering just trying to put in an IV in some instances.

And your hospital costs.

And your hospital costs, yes.

So that's the other thing. We restructured our field force. We did a lot over last year. So we had to change the strategy, evolve the strategy. We did a lot on our hardware and software offerings. We restructured a lot in our enterprise and cloud, and we also did a lot of things on the commercial side where we restructured the field force, and we retextured the field force to be able to have more of this type of sale with key account enterprise software, clinical support and follow-up. And so we worked through all that in last year and really have come out structured with a new field force with our region supported and filled. And so there's just been a lot of things going on that you bring together, and so we're really excited about the progress that we made and where we're going.

Yes. And financially, Heather, so I think you guys reiterated your guidance. It's back-end loaded for the year. How much visibility -- I mean, with the sales funnel, how much visibility do you have? And I'd imagine from a contractual standpoint, there will be a lot of predictability in the future. How do you get comfort around that back-end loaded guidance?

Yes. Obviously, as time progresses, we can become more comfortable, and we have more and more clarity. But as Todd mentioned, as we enter into these hospitals and we build an installed base, that accumulates, right? So we have a pipeline. Timing can be tough, right, to really say or predict, but the pipeline is there, and the conversations are happening. So we feel good about it.

Got it. And your -- on the subscription growth, I think it was like 60-ish percent first quarter. What about user attrition? Are you seeing folks not get the full benefit, maybe step away, say, or just cause a bit? Or I mean, has it been kind of full steam ahead?

So we have started monitoring kind of the usage of the devices. As we've employed more software, we've been able to see that more. So it's a little too early to kind of comment on what that might look like. But obviously, people can buy things and put them aside and when you build in an enterprise software system and a process that discourages that from happening, right? It's not a toy. It's a tool.

Understood.

Yes.

I think that's one of the things we're really focused on is making sure that people understand how to use it and really bring them to a path to competency and benefit quickly for what their purpose of having a Butterfly is and not just throwing it out there as an ultrasound device that they have to figure out how to get value out of. And that was kind of a pivot for us early in the year was not just to make it accessible but to make it valuable.

And maybe one for both of you. If we think about R&D, maybe, Todd, in the pipeline, what gets you really excited about what's on the come, what's going to be a material mover? And Heather, I mean, as you kind of think about the operating expenses, when do investors start to see a little bit of leverage in the model? And you've got a big cash balance but a little less lesser of a burn.

So I would just say, so what's exciting is also nerve-racking, right? We're really excited about our hardware pathway. It's great. Like having semiconductor, whole body, single probe is an amazing advantage, and we're leveraging that. So -- and we're not just leveraging it in a way to enhance imaging. We're really thinking about how do we process, what do we do, what does the form factor look like, how can we leverage a lot of these things to get us all the way to a path to static scanning and a wearable device. So we are on that mission, and we're really focusing through because it becomes about information, right? So if you're going to use it in chronic disease management, and how do you do that? And so we're on a clear path to do that, and we're really excited about the steps that we'll go through to do that along the journey of being everywhere and how we go about doing that. So we're super excited about our hardware and what we can enable through our hardware development, so we have tremendous programs in our hardware development. We also want to make these really usable, so we're leveraging the platforms that we work on and user interface. So we're really thinking through, today with our platform, how we present it, how we interact with our users. So we're spending a lot of time on that user software interface. Our third pillar of AI is incredibly important. So how do we make it very easy to use, both on image acquisition, image interpretation, utilization? We have a heavy, heavy focus on really making the information usable and valuable and then putting it to use within the health care system to get an outcome to the enterprise piece. So if you just look at the breadth of that, we have pathways. We have to align all of those areas to be able to drive outcomes and continue to move clinical practice in a way. So it's taken us a little while to kind of get those road maps laid out, get them aligned so that they're coordinated in a way that we can benefit each kind of step of the way. The clinical outcomes piece of it, we're not out of sync with one or the other. We had to catch up a few other pieces. Over the course of year I said we've had to catch up on the enterprise piece. You've seen some of that through Blueprint and Compass, and we're continuing to make that more robust. So we're getting all those elements of our development pathway in line, and that's amazing. It's also a daunting task, and that's where Heather comes into play because we go -- it's expensive.

That's right. Yes. So to answer the question about, I guess, more like capital allocation and cash, you would have to be living in a whole light to not see the kind of change in the view of investors and what they're looking for from a cash conservation and investment perspective. And we're taking that to heart, and we're looking at things and what we want to make sure that we're able to do. And I'm confident that we can with -- we have about $350 million of cash on the balance sheet, so plenty of cash to enable us to continue to invest in the AI and the software and the commercial operations and do it a little bit more prudently from a G&A perspective, right? So I feel like we're in really good shape, and we have a lot of optionality, and that's what we're trying to accomplish.

Maybe one last one because we're coming up on time. I mean, Todd, a lot of opportunity, a lot of progress made, I think, since the IPO, for the de-SPAC IPO. What's -- what are you most excited about? And what keeps you up at night?

Yes. So I think the quick answer is, for a long time, I've been searching for a relevant platform to change and transform care, and I think Butterfly is that. And that's exciting to me because every day I try to wake up and make a difference, and I think that people of Butterfly feel that way. And I think we have a technology that can truly make a difference in the health care system, and that it's beyond exciting, like it really is. I mean, to have something that, at relevant scale, can do this. it's real, and it's exciting, and that's what drives us every day. And then I think what keeps us up at night is how daunting that task is. So...

We didn't even talk about the home or international, but that's for another discussion, that's what the -- but thank you both for joining us. Really appreciate it, and we're really excited for you guys on the story. So thanks again for joining us. Thanks, everyone.

Thanks, everyone.

Thanks, Seth.