Butterfly Network (BFLY) 44th Annual J.P. Morgan Healthcare Conference summary

Key announcements and business updates

• Expiring SPAC warrants will reduce potential dilution by 20 million shares, benefiting current and new shareholders.

• Licensing deals, including a $74 million agreement with a GenAI company and a $15 million upfront plus $10 million annual license fee deal with Midjourney, are bringing in non-dilutive capital.

• The company has accelerated top-line growth, improved gross margins, and reduced cash consumption over the past 24 months.

• The company will not spin out its embedded chip business but will integrate it as a core offering under the Butterfly Embedded brand.

• Fourth quarter pre-announced results showed 17% year-over-year growth, with FY 2025 revenue exceeding $92 million and improving gross margins.

Technology innovation and product roadmap

• Introduced advancements in Ultrasound-on-Chip technology, highlighting the iQ3 handheld device and upcoming iQ4 and Apollo chip families, with launches expected through 2031.

• The Poseidon 5.1 chip, doubling mechanical pressure and improving harmonics, is in production and expected in devices by 2027.

• The upcoming Apollo chip will offer 20x compute power, enabling local AI processing, improved image quality, and lower energy use.

• The platform is being opened to third-party developers, with 27 companies currently building AI tools for integration.

• A new family of semiconductors is in development, with a roadmap for Apollo 1–4 and a future superchip.

Market strategy and partnerships

• The installed base is the largest globally, with adoption in over 100 countries and 80% of U.S. medical schools training students on the device.

• The company is expanding into home care, wearable devices, and global health initiatives, partnering with over 1,000 NGOs.

• Partnerships include brain-computer interface, vascular robotics, and liver diagnostics companies.

• The Butterfly Garden program enables third-party AI app development, with the first FDA-cleared app launched last quarter.

• The company is working with partners to customize chip form factors for diverse applications, with partners funding off-roadmap development.