Butterfly Network (BFLY) investor relations material

Market overview and technology innovation

• Handheld ultrasound devices are transforming point-of-care imaging, enabling immediate diagnostics outside traditional radiology suites.

• Butterfly's semiconductor-based ultrasound chip allows whole-body imaging with a single device, reducing the need for multiple probes.

• The company is on its third-generation chip, with image quality now comparable to other handhelds and a fourth-generation chip expected by late 2026 or early 2027.

• Devices are cloud-based, mobile, and used globally, including in conflict zones for trauma care.

• AI integration is expected to drive mass adoption by simplifying image acquisition and interpretation.

Adoption trends and competitive landscape

• Handheld ultrasound market is valued at $300-$400 million, compared to a $10 billion global ultrasound market.

• Butterfly holds 40%-50% unit market share in developed markets, with dominance in U.S. medical schools.

• The company’s pricing and ubiquity have led to adoption in about 70% of U.S. medical schools.

• Sales channels include direct online sales, inside sales for non-hospital clients, and a direct sales force for hospitals and enterprise software.

• The device is positioned as the "stethoscope of the future," aiming for widespread use among doctors and nurses globally.

Financial performance and growth strategy

• Long-term revenue ambition is $500 million by 2028, implying around 20% annual growth.

• Q3 ended with $148 million in cash; cash usage expected to decrease to $40 million or less this year.

• Adjusted EBITDA loss projected at $32-$35 million for the year, showing improvement over prior years.

• Growth strategy includes expanding core business, licensing chip technology (Octave), and entering home care markets.

• Recently signed a $65 million, five-year deal with a generative AI company for chip integration, with more partnerships in the pipeline.