Butterfly Network Inc (BFLY) 2023 Q3 法說會逐字稿

Hello, thank you for attending the Butterfly Network Q3 2023 earnings call. My name is Victoria, and I'll be your moderator today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. In the upcoming remarks, there will be references to video clips that will not be animated on a live slides.

您好，感謝您參加 Butterfly Network 2023 年第三季財報電話會議。我叫維多利亞，今天我將擔任你們的主持人。在通話的演示部分，所有線路將被靜音，最後有機會提問和回答。在接下來的評論中，將引用不會在即時投影片上動畫的影片剪輯。

We anticipate the animated video version of the slides will become available online at ir.butterflynetwork.com within 24 hours of today's call. I would now like to pass the conference over to your host, Heather Getz. Thank you. You may proceed, Heather.

我們預計幻燈片的動畫視訊版本將在今天電話會議後 24 小時內透過 ir.butterflynetwork.com 在線提供。現在我想將會議交給主持人希瑟蓋茲 (Heather Getz)。謝謝。你可以繼續了，希瑟。

Good morning, and thank you for joining us today. Earlier today, Butterfly released financial results for the third quarter ended September 30, 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 the company's website at ir.butterflynetwork.com. I, Heather Getz, Chief Financial and Operations Officer of Butterfly; alongside Joseph DeVivo, Butterfly's Chairman and Chief Executive Officer, will host today's call.

早安，感謝您今天加入我們。今天早些時候，Butterfly 發布了截至2023 年9 月30 日的第三季財務業績，並提供了業務更新、發布和收益演示，其中包括管理層使用非GAAP 財務指標與最適用的GAAP 指標相比的調節表。目前可在公司網站 ir.butterflynetwork.com 的投資者部分找到。我，Heather Getz，Butterfly 財務與營運長； Butterfly 董事長兼執行長 Joseph DeVivo 將主持今天的電話會議。

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, and the size and potential growth of current or future markets, for both our products and services. 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.

在今天的電話會議中，我們將做出某些前瞻性聲明。除此之外，這些陳述可能包括對我們產品和服務的財務表現、未來業績、產品和服務的開發和商業化、潛在的監管批准以及當前或未來市場的規模和潛在增長的預期。這些前瞻性陳述是基於當前資訊、假設和預期，可能會發生變化，並涉及許多已知和未知的風險、不確定性和其他因素，這些因素可能導致實際結果與前瞻性陳述中包含的結果有重大差異。尋找陳述。

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 live 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 investor relations 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. Joe?

這些風險和其他風險在我們向美國證券交易委員會提交的文件中進行了描述。請您注意不要過度依賴這些前瞻性陳述，且本公司不承擔更新此類陳述的任何義務。提醒一下，本次電話會議正在進行網路直播並進行錄音，我們將參考投影片簡報以及我們的演講。即時電話音訊和正在顯示的簡報之間可能存在短暫的延遲。若要觀看網路廣播，請造訪我們網站投資者關係部分的活動部分，電話會議後將提供活動重播。我現在想把電話轉給喬。喬？

Thank you, Heather. So it's a pleasure to speak with you all today. I'm excited to share our results and the progress we've made in our business transformation since I joined just about six months ago. As I noted on our last earnings call, Butterfly Network is a great technology platform with leading products and services.

謝謝你，希瑟。所以今天很高興與大家交談。我很高興與大家分享自大約六個月前加入以來我們的成果以及我們在業務轉型方面取得的進展。正如我在上次財報電話會議上指出的那樣，Butterfly Network 是一個出色的技術平台，擁有領先的產品和服務。

We're now focused on not only providing the best point-of-care ultrasound solutions, but also expanding our addressable market through adjacencies to return the company to organic growth. We've made some great progress in the third quarter, including a number of exciting announcements, while continuing to execute against our operational plan. And as a result, we remain on track to meet our fiscal 2023 guidance of at least $64 million in revenue and provide improved EBITDA guidance.

我們現在不僅專注於提供最佳的護理點超音波解決方案，而且還透過鄰近地區擴大我們的潛在市場，使公司恢復有機成長。我們在第三季取得了一些重大進展，包括許多令人興奮的公告，同時繼續執行我們的營運計劃。因此，我們仍有望實現 2023 財年至少 6,400 萬美元收入的指導，並提供改進的 EBITDA 指導。

Butterfly's go-to-market strategy is centered on our proprietary semiconductor technology and accompanying software. We continue to successfully execute against it, positioning us on a path to growth. First, we sought to identify and disrupt the market that our product and technology can displace, and we did: point-of-care ultrasound. Here, we have the most versatile handheld device at the most competitive price point, and we already have a large and growing share in terms of units sold globally.

Butterfly 的進入市場策略以我們專有的半導體技術和配套軟體為中心。我們繼續成功地執行它，使我們走上成長之路。首先，我們試圖確定並顛覆我們的產品和技術可以取代的市場，我們做到了：床邊超音波。在這裡，我們以最具競爭力的價格提供功能最齊全的手持設備，就全球銷售量而言，我們已經擁有了巨大且不斷增長的份額。

With new entrants and established players following the path to investment in ultrasound AI, even introducing new devices that are also chip-based, albeit still relying on piezoe crystals, we have successfully proven this could be a viable and growing market that we will continue to win in. The next part of our roadmap, which we are currently executing on, is to continue to grow and develop focused market, while identifying new use cases for our proprietary semiconductor chip and software to address.

隨著新進業者和老牌企業紛紛追隨超音波人工智慧的投資之路，甚至推出同樣基於晶片的新設備，儘管仍然依賴壓電晶體，我們已經成功證明這可能是一個可行且不斷增長的市場，我們將繼續我們目前正在執行的路線圖的下一部分是繼續發展和開發重點市場，同時確定我們專有的半導體晶片和軟體要解決的新用例。

The upcoming launch of Butterfly iQ3 and our recent co-development partnership announcements, which I'll discuss in a few minutes, are but two examples of Butterfly successfully executing this strategy as we move through the second-half of 2023 and into 2024. And further out, as our core technology and software evolve, we'll move into wearable form factors, to build markets that no one else can.

即將推出的 Butterfly iQ3 以及我們最近宣布的共同開發合作夥伴關係公告（我將在幾分鐘內討論）只是在我們進入 2023 年下半年和 2024 年之際，Butterfly 成功執行這一戰略的兩個例子。更進一步，隨著我們的核心技術和軟體的發展，我們將進入穿戴式裝置領域，以建立其他人無法做到的市場。

On the last call, I shared with you a number of near-term strategic initiatives, our team is taking to accelerate our growth, namely, these are: One, introducing new products like iQ3 to strengthen and solidify our position as the leading focus handheld; Two, introducing new education offerings to enhance focus competency and drive awareness and adoption; Three, accelerating ease of use and access to AI tools through Butterfly Garden, our partner ecosystem; and Four, identifying growth areas outside of focus application through our Powered by Butterfly chip development partnerships.

在上次電話會議上，我與大家分享了我們團隊為加速成長而採取的一些近期策略舉措，即：一、推出 iQ3 等新產品，以加強和鞏固我們作為領先焦點手持設備的地位;第二，引進新的教育產品以增強專注能力並提高意識和採用；第三，透過我們的合作夥伴生態系統 Butterfly Garden 加速人工智慧工具的易用性和存取；第四，透過我們的 Powered by Butterfly 晶片開發合作夥伴關係確定重點應用之外的成長領域。

I'm happy to report that our team is delivering on all of these efforts, with significant progress made in this past quarter. We're confident that these will be meaningful contributors to our 2024 numbers. Operationally, as we mentioned last quarter, from August of 2022 to July of '23, management took steps to eliminate $170 million of operating costs from our expense structure. In this transition year, we're making business more efficient, while we continue to invest in long-term growth and innovation.

我很高興地向大家報告，我們的團隊正在兌現所有這些努力，並在上個季度取得了重大進展。我們相信，這些將為我們 2024 年的數字做出有意義的貢獻。在營運方面，正如我們上季度所提到的，從 2022 年 8 月到 2023 年 7 月，管理層採取措施從我們的費用結構中消除了 1.7 億美元的營運成本。在這個過渡的一年裡，我們將提高業務效率，同時繼續投資長期成長和創新。

Importantly, our focus on expense reduction and cash preservation does not end here, as we continue to identify ways to increase productivity and efficiency. Simultaneously, we've been investing in new product developments to support Butterfly's growth. In the US, we hired several new salespeople and managers to increase the footprint of our US organization focused on enterprise deals. For international, under new sales leadership, we're working on opening several new markets, while partnering with distributors to new current inventory. And then, we're testing our current AI tools on other more lucrative animal groups, including cattle. We're confident that these investments in our team and capabilities will reap benefits going forward.

重要的是，我們對減少開支和現金保存的關注並沒有就此結束，我們仍在繼續尋找提高生產力和效率的方法。同時，我們一直在投資新產品開發，以支持 Butterfly 的成長。在美國，我們聘請了幾位新的銷售人員和經理，以擴大我們專注於企業交易的美國組織的足跡。對於國際市場，在新的銷售領導下，我們正在努力開拓幾個新市場，同時與經銷商合作開發新的現有庫存。然後，我們正在其他更有利可圖的動物群體（包括牛）上測試我們目前的人工智慧工具。我們相信，對我們團隊和能力的這些投資將在未來獲得收益。

Now I'll move to our strategic initiatives. As mentioned, education is a top priority and one of the ways we're expanding our addressable market. The Butterfly paradox is that we continue to make ultrasound accessible through cost and product quality, yet ultrasound remains the most difficult to master imaging modality. This quarter, we're attacking this challenge head-on by introducing two new additions to our suite of educational offerings.

現在我將談談我們的策略舉措。如前所述，教育是重中之重，也是我們擴大目標市場的方式之一。蝴蝶悖論是，我們繼續透過成本和產品品質使超音波變得容易理解，但超音波仍然是最難掌握的成像方式。本季度，我們將透過在我們的教育產品套件中引入兩項新內容來正面應對這項挑戰。

In September, we launched the Butterfly Certified program, which is actively being quoted by our sales force. Butterfly Certified is a series of live training opportunities, with virtual and in-person options that target improving user proficiency through one or multiple exams. The customer can purchase a range of services from a virtual scan review to a full-year course to be a certified trainer. By providing these solutions, we can accelerate focus adoption and give a clear roadmap of success to our customers.

九月，我們推出了蝴蝶認證計劃，我們的銷售人員正在積極引用該計劃。 Butterfly Certified 是一系列現場培訓機會，提供虛擬和麵對面選項，旨在透過一次或多次考試來提高使用者的熟練程度。客戶可以購買一系列服務，從虛擬掃描審查到成為認證培訓師的全年課程。透過提供這些解決方案，我們可以加速焦點的採用，並為我們的客戶提供清晰的成功路線圖。

So continuing education recently, at the American College of Emergency Physicians, annual meeting known as ACEP, Butterfly previewed our new scan lab app. The app uses AI anatomical labeling tools to demystify ultrasound to any user and teaches learners how to place a probe on the body to get the desired image. As you can see on this slide, the user has selected an apical four-chamber view. On the left, there's a walk through with a reference imaging and specific instruction.

因此，最近在美國急診醫師學會年會上稱為 ACEP 的繼續教育中，Butterfly 預覽了我們新的掃描實驗室應用程式。該應用程式使用人工智慧解剖標記工具向任何用戶揭開超音波的神秘面紗，並教導學習者如何將探頭放置在身體上以獲得所需的圖像。正如您在這張投影片上看到的，使用者選擇了心尖四腔視圖。左側有一個帶有參考圖像和具體說明的演練。

Before the user scans, they see an example of what the video should look like on the right. And when they plug their Butterfly probe and start scanning, live ultrasound image comes up and the anatomic labels tag each part of the anatomy. This helps to make ultrasound imaging more approachable, building users' confidence as they begin their ultrasound imaging journey. The app will also support existing users in extending their skills and drive success in medical education by helping schools further engage and empower students to embrace ultrasound learning and development.

在用戶掃描之前，他們會看到右側影片的範例。當他們插入蝴蝶探頭並開始掃描時，即時超音波影像就會出現，並且解剖標籤會標記解剖結構的每個部分。這有助於使超音波成像變得更加平易近人，為使用者在開始超音波成像之旅時建立信心。該應用程式還將支援現有用戶擴展他們的技能，並透過幫助學校進一步吸引和授權學生接受超音波學習和發展來推動醫學教育的成功。

Early reception at ACEP for ScanLab was very encouraging, and we look forward to launching the app to all existing Butterfly subscribers for free. We expect ScanLab access to continue to drive adoption and software sales to existing and new users once launched in early 2024. With our Butterfly Academy online modules, ScanLab app, Butterfly Certified services, today, we have the most powerful and complete pathway to success for new ultrasound users. I'm proud of the team for making both of these initiatives happen so quickly and executing effectively this quarter.

ScanLab 在 ACEP 的早期反應非常令人鼓舞，我們期待著向所有現有的 Butterfly 訂閱者免費推出該應用程式。我們預計ScanLab 在2024 年初推出後將繼續推動現有用戶和新用戶的採用和軟體銷售。透過我們的Butterfly Academy 線上模組、ScanLab 應用程式、Butterfly 認證服務，今天，我們擁有最強大、最完整的成功途徑新的超音波用戶。我為團隊在本季度如此迅速地實施並有效執行這兩項舉措感到自豪。

Last quarter, we introduced Butterfly Garden and our plans to build a partnership ecosystem for accelerating access to new ultrasound AI. As you know, Butterfly has the largest handheld installed base in the world with over 100,000 units placed and growing. AI developers want access to our customers, who want access to their solutions on their Butterfly. We launched Butterfly Garden at the beginning of the quarter. Since then, we've received inquiries from over 100 prospective partners.

上季度，我們推出了蝴蝶園，並計劃建立一個合作夥伴生態系統，以加速新的超音波人工智慧的普及。如您所知，Butterfly 擁有全球最大的手持設備安裝量，已安裝超過 100,000 台，並且還在不斷增長。人工智慧開發人員希望接觸我們的客戶，而他們希望在他們的 Butterfly 上存取他們的解決方案。我們在本季初推出了蝴蝶園。自那時起，我們收到了 100 多個潛在合作夥伴的詢問。

We've already signed three universities, including Caltech, University of Maryland, and UNC, Dr. Stringer's team at UNC recently published impressive findings about the auto gestational age AI tool they built on Butterfly from maternal health, which you can see on the slide. And under Butterfly Garden, they're expanding that into a tool to auto detect multiple fetal conditions. We've also signed leading AI companies like ThinkSono and others not yet announced publicly. Our business model is to charge partners an annual fee to maintain the software development kit or SDK, as well as the revenue share on their future apps sold to Butterfly customers.

我們已經與三所大學簽約，包括加州理工學院、馬裡蘭大學和北卡羅來納大學，北卡羅來納大學的Stringer 博士團隊最近發布了關於他們在Butterfly from motherhealth 上構建的自動孕齡人工智慧工具的令人印象深刻的發現，您可以在幻燈片中看到。在 Butterfly Garden 計畫下，他們將其擴展為自動檢測多種胎兒狀況的工具。我們也與 ThinkSono 等領先的人工智慧公司以及其他尚未公開宣布的公司簽約。我們的商業模式是向合作夥伴收取年費來維護軟體開發工具包或 SDK，以及他們未來出售給 Butterfly 客戶的應用程式的收入分成。

So relatedly, we also announced our first Powered by Butterfly deal with Forest Neurotech. Powered by Butterfly represents the next level of Butterfly-enabled development, for partners not only have access to our SDK, but also to our novel Ultrasound-on-Chip. This allows them to develop around the core technology and bring it to non-competitive markets to Butterfly. This way, Butterfly investors can capitalize on those new markets and gain significant leverage, as each of these companies reach their goals through commercial success.

與此相關的是，我們也宣布了與 Forest Neurotech 的首個 Powered by Butterfly 交易。 Powered by Butterfly 代表了 Butterfly 開發的新水平，合作夥伴不僅可以存取我們的 SDK，還可以存取我們新穎的片上超音波。這使得他們能夠圍繞核心技術進行開發，並將其帶到蝴蝶的非競爭市場。透過這種方式，隨著這些公司透過商業成功實現其目標，蝴蝶投資者可以利用這些新市場並獲得巨大的影響力。

Forest Neurotech is founded by a group of brilliant engineers and entrepreneurs, with track records of bringing disruptive healthcare technology to market. It is backed by Eric Schmidt, a founder of Google and Citadel's Ken Griffin. They intend to use our chip to create a brain computer interface, which will be a minimally invasive implant, able to scan and process the brain to understand where therapies are needed. The jointly developed technology will also treat those areas.

Forest Neurotech 由一群才華橫溢的工程師和企業家創立，擁有將顛覆性醫療技術推向市場的記錄。它得到了 Google 創始人 Eric Sc​​hmidt 和 Citadel 的 Ken Griffin 的支持。他們打算使用我們的晶片創建腦機接口，這將是一種微創植入物，能夠掃描和處理大腦以了解哪裡需要治療。共同開發的技術也將治療這些領域。

Remember, our chip is uniquely capable of moving the ultrasound beam through the body without having to move the device. We look forward to announcing another Powered by Butterfly deal in the fourth quarter. Again, I'm proud of our team for executing on these growth initiatives, both Powered by Butterfly and Butterfly Garden offer meaningful new sources of revenue for the company. We anticipate them becoming positive contributors to our numbers in 2024 and beyond, while also enriching our platform for our users.

請記住，我們的晶片具有獨特的能力，無需移動設備即可使超音波束穿過身體。我們期待在第四季度宣布另一項 Powered by Butterfly 交易。我再次為我們的團隊執行這些成長計畫感到自豪，Powered by Butterfly 和 Butterfly Garden 都為公司提供了有意義的新收入來源。我們預計他們將在 2024 年及以後為我們的數字做出積極貢獻，同時也為我們的用戶豐富我們的平台。

So moving on. Many of you know, Moore's Law, as seen on this slide, states that the number of transistors on a chip will double every two years, meaning the computer processing power doubles every two years. We all know how many industries were transformed using digital technology. So what I'd like to highlight is photography, which is similar to ultrasound imaging. As the digital camera was launched in 1993, most users saw it as an interesting and novel tool But didn't really take it seriously because image quality did not rival film.

所以繼續前進。你們很多人都知道，摩爾定律（如這張投影片所示）指出，晶片上的電晶體數量每兩年就會增加一倍，這意味著電腦處理能力每兩年就會增加一倍。我們都知道有多少產業利用數位技術進行了轉型。所以我想強調的是攝影，它類似超音波成像。數位相機於 1993 年推出後，大多數用戶將其視為一種有趣且新穎的工具，但並沒有真正認真對待它，因為影像品質無法與膠卷相媲美。

in 1997, 2001, and 2003, digital camera manufacturers continued to benefit from Moore's Law and delivered 2, 5, and 7 megabyte images. And in 1995, for the first time in history, digital cameras, outsold film cameras when the image quality was perceived to be equal. Once digital equals analog, analog loses, because all the digital benefits such as no cost to develop film, better storage become the tiebreaker and buyer behavior shifts to those benefits. I believe it's inevitable that analog piece, piezo crystal-based ultrasound will be a thing in the past, like film camera is today.

1997年、2001年和2003年，數位相機製造商繼續受益於摩爾定律，交付了2、5和7兆位元組的影像。 1995 年，數位相機史上第一次在影像品質被認為與底片相機相當的情況下銷售超過底片相機。一旦數字等於模擬，模擬就會失敗，因為所有數位優勢（例如無需沖洗膠卷、更好的儲存）都將成為決定性因素，而購買者的行為也會轉向這些優勢。我相信模擬件、基於壓電晶體的超音波將不可避免地成為過去，就像今天的膠卷相機一樣。

Piezo crystals make good images, but provide fixed lenses, are limited in their frequencies and are heat inefficient. They also require multiple probes to achieve Butterfly's whole body scanning range. That will never change, it's just physics. That goes for piezo-based chips or [peanuts] as well. Crystal-based cards require sophisticated arrays and wiring. These mechanisms are fragile and expensive to fix. With digital scanning instead, I believe piezo-based carts will be obsolete by the end of the decade.

壓電晶體可以產生良好的影像，但提供固定鏡頭，其頻率有限且熱效率低。它們還需要多個探頭才能實現 Butterfly 的全身掃描範圍。這永遠不會改變，這只是物理學。這也適用於基於壓電的晶片或[花生]。基於晶體的卡片需要複雜的陣列和佈線。這些機制很脆弱，修復起來也很昂貴。如果採用數位掃描，我相信基於壓電的推車將在本世紀末被淘汰。

With that said, on my first call, I told you I felt like I was a kid in the candy store when I reviewed all that is in Butterfly's R&D pipeline. I also told you that I'd show you one of our new hardware devices before the end of the year. And now, I'm going to do just that. This is iQ3, our third-generation platform and fifth iteration of our processor.

話雖如此，在我第一次打電話時，我告訴你，當我回顧 Butterfly 研發管道中的所有內容時，我感覺自己就像是糖果店裡的孩子。我還告訴過你，我會在今年年底前向你展示我們的一款新硬體設備。現在，我就要這麼做。這是 iQ3，我們的第三代平台和處理器的第五次迭代。

In addition to a marked improvement in image clarity and better ergonomic design, there will be many new one-of-a-kind capabilities that will change the way we can capture and review images. I'm not going to unveil them today; we need to keep a couple of competitors who like to copy Butterfly guessing. But what I'll show you is iQ3's improved processing power and image quality. This next-generation device has doubled the data rate transfer for better and faster ultrasound beam control, and improved image quality and will fully charge in less than half the time.

除了影像清晰度的顯著提高和更好的人體工學設計之外，還將出現許多獨特的新功能，這些功能將改變我們捕捉和查看影像的方式。今天我不打算揭開它們的面紗；我們需要保留一些喜歡模仿蝴蝶猜測的競爭對手。但我將向您展示的是 iQ3 改進的處理能力和影像品質。這款新一代設備將資料傳輸率提高了一倍，以實現更好更快的超音波波束控制，並提高了影像質量，並且在不到一半的時間內充滿電。

The improved processor is so powerful, it's image quality is now equal to and arguably exceeds analog devices like GE's Vscan, a benchmark competitor for cardiac imaging. We believe iQ3 even rivals some cart-based systems. In our opinion, we've met that turning point, where image quality associated with more expensive handhelds will no longer be a barrier. And our digital capabilities will compel users to move completely to Butterfly, all while being at a more competitive price point.

改進後的處理器非常強大，其影像品質現在等於甚至可以超過 GE 的 Vscan（心臟成像基準競爭對手）等模擬設備。我們相信 iQ3 甚至可以與某些基於推車的系統相提並論。我們認為，我們已經遇到了這個轉​​折點，與更昂貴的手持裝置相關的影像品質將不再成為障礙。我們的數位能力將迫使用戶完全轉向 Butterfly，同時價格更具競爭力。

So let's look at a couple of images, we'll start with lung. Our lung scanning is already best-in-class. As you can see, iQ+ here in the middle delivers excellent images, and for most ER and primary care use cases, it's an excellent option. You can see the middle image iQ+ shows a distinct set of A-lines visible as bright horizontal lines throughout the image, with minimal drop-off in the far field or the bottom of the image.

讓我們來看幾張影像，我們將從肺部開始。我們的肺部掃描已經是同類中最好的。正如您所看到的，中間的 iQ+ 可提供出色的影像，對於大多數急診室和初級保健用例來說，它是一個絕佳的選擇。您可以看到中間的影像 iQ+ 顯示了一組獨特的 A 線，在整個影像中可見為明亮的水平線，遠場或影像底部的衰減最小。

iQ+ A-lines are arguably even more distinct than these scans on the left. But when you look at the right and iQ3, the bar is clearly raised. It has sharp defined A-lines all the way into the far field. Now, here's a four-chamber view or kind of a cardiac money shot. You can see the scan here on the left and iQ+ is right next to it.

iQ+ A 線可以說比左側的這些掃描更清晰。但當你看右邊和 iQ3 時，標準明顯提高了。它具有清晰的 A 線，一直延伸到遠場。現在，這是一個四腔視圖或某種心臟金錢注射。您可以在左側看到掃描，iQ+ 就在它旁邊。

Quite close in quality, though, the slower frame rate of these scan gives the perception of the heart feeding slower, and iQ+ already has a wider field of view that's able to include the ventricular walls. Now take a look at iQ3, just incredible what it looks like, with even better frame rate and fewer ventricular artifact. It's amazing how this much clarity can be delivered in a compact all in one probe, that is still less expensive than analog counterparts. You can see here clearly that iQ3 can be used for the most challenging images, as a single probe allowing the user to effortlessly choose a different preset and scan anywhere in the body. The benefits of digital come shining through, when all becomes equal. Did I mention that our next generation chip is well underway? For those carts, be aware.

不過，品質相當接近，這些掃描的幀率較慢，讓人感覺心臟供血速度較慢，而且 iQ+ 已經擁有更寬的視野，能夠包括心室壁。現在看看 iQ3，它的外觀令人難以置信，具有更好的幀速率和更少的心室偽影。令人驚訝的是，如何在一個緊湊的一體化探頭中提供如此高的清晰度，而且比模擬同類探頭更便宜。您可以在這裡清楚地看到，iQ3 可用於最具挑戰性的影像，作為單一探頭，使用者可以輕鬆選擇不同的預設並掃描身體的任何部位。當一切變得平等時，數位化的好處就會顯現出來。我有沒有提到我們的下一代晶片正在順利進行？對於那些推車，請注意。

So we've heard about the new PMUT-chip being previewed by a competitor. We haven't done a device to test with it like we have with the others, but we have taken all the images they put online and compared them to our images, assuming that they've put their best foot forward. Here is a PMUT, then iQ+, and then iQ3. Butterfly iQ+ maintains the B-mode image quality simultaneously, with Color Doppler enabled. And the hemodynamic color fill is good.

我們聽說競爭對手正在預覽新的 PMUT 晶片。我們還沒有像其他設備那樣對它進行測試，但我們已經拍攝了他們放在網路上的所有圖像，並將它們與我們的圖像進行比較，假設他們已經盡力了。這是 PMUT，然後是 iQ+，然後是 iQ3。 Butterfly iQ+ 在啟用彩色多普勒的情況下同時保持 B 模式影像品質。且血流動力學顏色填充良好。

Then with iQ3, we have even better color sensitivity and true real-time hemodynamic flow. In our opinion, the PMUT-chip image doesn't present even as well as our second-generation iQ+, nevertheless, iQ3. But see for yourself. So we're hopeful the iQ3 is approved for sale by the end of the first quarter of 2024, and we'll be off to the races then. We're preparing every phase of our business for this launch and are gearing for the demand.

然後，透過 iQ3，我們擁有更好的顏色靈敏度和真正的即時血流動力學流量。我們認為，PMUT 晶片的影像表現甚至不如我們的第二代 iQ+，不過 iQ3。但你自己看看吧。因此，我們希望 iQ3 能夠在 2024 年第一季末獲得批准銷售，然後我們就可以開始比賽了。我們正在為此次發布做好業務各個階段的準備，並滿足需求。

At the recent ACEP meeting, we previewed iQ3 for thought leaders around the country. I personally saw their excitement when they view the image that they didn't think would be possible this soon on a Butterfly. They also love the new advanced digital capabilities, which I'll show you next quarter. So thank you for indulging me in this demonstration. I look forward to unpack more about iQ3 for you soon.

在最近的 ACEP 會議上，我們為全國各地的思想領袖預覽了 iQ3。當他們看到他們認為不可能這麼快在蝴蝶上實現的圖像時，我親自看到了他們的興奮。他們還喜歡新的先進數位功能，我將在下個季度向您展示。感謝您讓我參與這次演示。我期待盡快為您解開有關 iQ3 的更多資訊。

We believe 2024 will be the year where digital ultrasound imaging becomes equivalent to higher end handheld probes. All this to say, why should hospitals own multiple probes with poor battery life and runtimes that are too hot to the touch? Wery soon, they can just put them in the drawer next to their Kodak cameras. With that, I'll turn it over to Heather. Heather?

我們相信 2024 年數位超音波成像將與更高端的手持式探頭相當。綜上所述，為什麼醫院要擁有多個電池壽命很短、運行時間太熱而無法觸摸的探頭呢？很快，他們就可以把它們放在柯達相機旁邊的抽屜裡了。有了這個，我會把它交給希瑟。希瑟？

Thank you, Joe. Revenue for the third quarter of 2023 was $15.4 million, down compared to the prior year revenue of $19.6 million, driven by lower volume, partially offset by higher price. The lower volume was driven by two large deals last year, Gates and Rochester, that did not repeat in the current year. In the US, we've realized $10.4 million in total sales, lower than prior year. This was driven by lower probe sales, largely from Rochester, which was partially offset by higher subscription revenue and higher ASPs.

謝謝你，喬。 2023 年第三季的營收為 1,540 萬美元，較上年同期的 1,960 萬美元有所下降，原因是銷量下降，但價格上漲部分抵消了這一影響。成交量下降的原因是去年蓋茲和羅徹斯特的兩筆大型交易，但今年沒有重複。在美國，我們的總銷售額為 1,040 萬美元，低於去年。這是由於探頭銷量下降（主要來自羅徹斯特）造成的，但訂閱收入和平均售價的增加部分抵消了探頭銷量的下降。

Total international declined to $3.8 million. This is due to the second deployment of the probes for the Gates grant in Africa in the prior year quarter. Excluding Rochester and Gates, the US and international were essentially flat. Breaking our revenue down between product and software, product revenue was $8.8 million, a decrease of 34% versus Q3 2022. This decrease was driven by lower volume spread largely across US and international, due to the large deals in 2022 that I mentioned.

國際總額下降至 380 萬美元。這是由於上一季在非洲第二次部署了蓋茲贈款探測器。排除羅徹斯特和蓋茨，美國和國際市場基本持平。將我們的收入細分為產品和軟體，產品收入為880 萬美元，與2022 年第三季相比下降了34%。這一下降是由於我提到的2022 年發生的大筆交易，導緻美國和國際市場的銷售量下降。

Software and services revenue was $6.7 million in the third quarter, growing by 3% over the prior year period. Software and services mix was 43% of revenue and increased approximately 10-percentage-points versus Q3 2022. This increase was due to a higher installed base of subscription software, as compared to in-period probe sales. Renewals on the existing base of software users and software implementations completed during the quarter. Our total annual recurring revenue, which is reported as part of software and other services, grew by 19%. This was led by a strong increase of 51% in our enterprise software, which increased from 31% to 40% of our total ARR.

第三季軟體和服務收入為 670 萬美元，比去年同期成長 3%。軟體和服務組合佔收入的 43%，與 2022 年第三季相比增加了約 10 個百分點。這一增長是由於訂閱軟體的安裝基數高於同期探針銷售。本季度完成了現有軟體使用者基礎和軟體實施的更新。我們的年度經常性總收入（作為軟體和其他服務的一部分）增加了 19%。這是由我們的企業軟體強勁成長 51% 帶動的，它占我們總 ARR 的比例從 31% 增加到 40%。

Turning now to gross profit, gross profit was $9.4 million in Q3 '23, compared to $11 million in the prior year period. Gross profit margin was 61% for the third quarter, which compares to 56% in the third quarter of 2022. This increase was primarily due to higher average selling price, in addition to the shift in product mix, reflecting a higher proportion of higher-margin software and other services revenue. Also contributing to the increased margin, was higher manufacturing productivity (multiple speakers) -- adjusted EBITDA loss of $12.5 million compared with a loss of $31.8 million for the same period in 2022.

現在談談毛利，2023 年第三季的毛利為 940 萬美元，而去年同期的毛利為 1,100 萬美元。第三季的毛利率為 61%，而 2022 年第三季的毛利率為 56%。這一增長主要是由於平均售價上升，以及產品結構的轉變，反映出更高比例的高端產品。保證金軟體和其他服務收入。製造生產力的提高（多位發言者）也促成了利潤率的成長——調整後的 EBITDA 損失為 1,250 萬美元，而 2022 年同期為損失 3,180 萬美元。

The improvement in adjusted EBITDA loss was driven by the implemented cost reductions, which led to lower payroll, consulting, and other outside services. Moving to our capital resources, as of September 30, 2023, cash and cash equivalents, including restricted cash, were $154 million. Our total use of cash in the third quarter was $17 million. If I exclude $3 million of nonrecurring expenses, our monthly use of cash was down to under $5 million in the third quarter.

調整後 EBITDA 損失的改善是由於實施成本削減，導致工資、諮詢和其他外部服務減少。轉向我們的資本資源，截至 2023 年 9 月 30 日，現金和現金等價物（包括限制性現金）為 1.54 億美元。第三季我們的現金使用總額為 1700 萬美元。如果排除 300 萬美元的非經常性費用，第三季我們每個月的現金使用量將降至 500 萬美元以下。

Moving on to guidance. As Joe discussed, we have been executing against the road map we laid out in August. We launched Butterfly Garden, filed iQ3 with the FDA, completed our education app, and reinvested in our sales teams. In addition, we completed a reorganization that conservatively extends our cash into 2026. As such, we are reiterating our full-year 2023 revenue guidance of at least $64 million and are able to once again provide an improved adjusted EBITDA guide for the full-year loss of $75 million to $70 million.

繼續指導。正如喬所討論的，我們一直在按照八月制定的路線圖執行。我們推出了 Butterfly Garden，向 FDA 提交了 iQ3，完成了我們的教育應用程序，並對我們的銷售團隊進行了再投資。此外，我們也完成了重組，保守地將現金延長至 2026 年。因此，我們重申 2023 年全年收入指引至少為 6,400 萬美元，並能夠再次為全年提供改進的調整後 EBITDA 指引損失7,500 萬至7000 萬美元。

This is an improvement of an additional $5 million versus our previous numbers. As a reminder, this guidance reflects revenue that is based on our existing run rate, resources and product offerings, assuming no large one-time deals, occur for the remainder of the year. And while there is a strong market that will continue for the iQ+ following the launch of iQ3 , we are also factoring in a temporary Osborne effect, where purchases may be delayed pending the launch of the new products.

與之前的數字相比，這增加了 500 萬美元。提醒一下，本指引反映的收入是基於我們現有的運作率、資源和產品供應，假設今年剩餘時間內不會發生大型一次性交易。雖然 iQ3 推出後 iQ+ 的強勁市場將持續存在，但我們也考慮到了暫時的奧斯本效應，即在新產品推出之前購買可能會被推遲。

To summarize, the reorganization and the investments we announced in August have been completed, including increasing the direct sales force, launching Butterfly Garden and ScanLab, as well as our submission of iQ3 to the FDA. While our overall revenue is currently facing some headwinds, there is upside to this plan. Furthermore, we have maintained a solid cash position and have once again guided to an improved adjusted EBITDA loss. Conservatively, we have a cash runway that takes us into 2026.

總而言之，我們在 8 月宣布的重組和投資已經完成，包括增加直銷團隊、推出 Butterfly Garden 和 ScanLab，以及我們向 FDA 提交 iQ3。雖然我們的整體收入目前面臨一些阻力，但該計劃有好處。此外，我們保持了穩健的現金狀況，並再次改善了調整後 EBITDA 損失。保守地說，我們有一條現金跑道可以帶我們進入 2026 年。

While this has been a transition year, we are executing against our plan and the outcome is that we have a company right-sized to accomplish its goals, with a strong base of technological and organizational assets that we are continuing to invest in and the people who are energized and excited about the future of Butterfly. And with that, I will turn the call back over to Joe for closing remarks. Joe?

雖然這是過渡的一年，但我們正在按照我們的計劃執行，結果是我們擁有一家規模合適的公司來實現其目標，擁有我們繼續投資的強大技術和組織資產基礎以及員工他們對蝴蝶的未來充滿活力和興奮。然後，我將把電話轉回給喬，讓他發表結束語。喬？

Thanks, Heather. As you mentioned, 2023 is a transition year. We're resetting, reinvesting, and recharging, preparing for sustained execution and success. We have new leadership, a clear and focused plan, and technology that will take the market. 2024 will be a very good year.

謝謝，希瑟。正如你所提到的，2023 年是一個過渡年。我們正在重新調整、再投資和充電，為持續執行和成功做好準備。我們擁有新的領導層、明確且重點突出的計劃以及能夠佔領市場的技術。 2024年將會是非常好的一年。

We expect to return to double-digit growth, continue to improve our efficiency and cash management, and we'll keep building our AI ecosystem, with Butterfly Garden becoming the AI marketplace for the industry, helping customers gain access to the best ultrasound AI players out there. The candy store shelves are full. We look forward to an Analyst Day in early 2024, where we will unveil even more solutions to come that will have us creating new markets, only Butterfly [two and plan], expanding the market opportunity for Butterfly even further. So thank you for your time and now I'd like to open it up questions.

我們預計將恢復兩位數的成長，繼續提高效率和現金管理，我們將繼續建立我們的人工智慧生態系統，讓蝴蝶園成為產業的人工智慧市場，幫助客戶接觸到最好的超音波人工智慧玩家在那裡。糖果店的貨架已經滿了。我們期待 2024 年初的分析師日，屆時我們將推出更多解決方案，讓我們創造新市場，只有 Butterfly [兩個和計劃]，進一步擴大 Butterfly 的市場機會。感謝您抽出寶貴的時間，現在我想提出一些問題。

(Operator Instructions) Josh Jennings, TD Cowen.

（操作員說明）Josh Jennings，TD Cowen。

Hi, good afternoon. Thanks for the questions and congratulations on all the pipeline progress and appreciate the download on iQ3, great to see. I wanted to just ask Joe and Heather about the return to double-digit revenue growth in 2024. I know there are a couple of moving parts, including the Osborne effect and probably iQ3, sounds like at the end of 1Q. Maybe just -- take us through some of the drivers of that return to growth and maybe just remind us of some of the comp setup for next year.

嗨，下午好。感謝您提出問題並祝賀所有管道進展，並感謝 iQ3 上的下載，很高興看到。我想問 Joe 和 Heather 關於 2024 年營收成長恢復兩位數的情況。我知道有一些變化因素，包括奧斯本效應，可能還有 iQ3，聽起來像是在第一季末。也許只是 - 讓我們了解一些恢復成長的驅動因素，也許只是提醒我們明年的一些補償設定。

And as we're forecasting quarterly for '24, should we think about a return to double-digit growth in midyear, second-half? And maybe if you could take us through the drivers with the US and international business and give an update on the kind of restructuring in the commercial infrastructure rebuild out internationally? Sorry, there's like three questions in one there, but I'll stop there and thank you. Sorry about that.

正如我們對 24 年的季度預測一樣，我們是否應該考慮在年中、下半年恢復兩位數成長？也許您可以帶我們了解美國和國際商業的驅動因素，並提供國際商業基礎設施重建的最新情況？抱歉，這裡有三個問題，但我到此為止並謝謝您。對於那個很抱歉。

No problem, Josh, we're happy to answer all of them. The catalyst for us, first of all, we've been spending time since the last restructuring, strengthening our sales and marketing team, both in the US and international. We've been refining our messaging and our direct-to-consumer marketing. We've been working diligently on our new product launches and understanding where our customers are today and what it is that we need to grow.

沒問題，喬什，我們很樂意回答所有問題。對我們來說，首先，自上次重組以來，我們一直在花時間加強我們在美國和國際的銷售和行銷團隊。我們一直在完善我們的訊息傳遞和直接面向消費者的行銷。我們一直在努力推出新產品，並了解我們的客戶目前的狀況以及我們需要發展的是什麼。

We have the largest installed base in the world and we need to help them. We have a lot of people using probes every day, and we have people who have moderate utilization and we have people who have low utilization. And we know that it's one thing to sell new probes, but as you start building scale, the more same-store sales or the more software that people consume on your base, it also creates unnatural growth. So we lost some momentum with all the changes that were made in reorg over the last year, because the CEO changed, and then with all the cost cutting that we've done earlier in 2023, I feel we lost momentum.

我們擁有世界上最大的安裝基礎，我們需要幫助他們。我們每天都有很多人使用探針，有使用率中等的人，也有使用率低的人。我們知道，銷售新探針是一回事，但當你開始擴大規模時，同店銷售越多，或者人們在你的基礎上消費的軟體越多，它也會造成不自然的成長。因此，去年我們在重組中進行的所有變化都失去了一些動力，因為執行長發生了變化，然後隨著我們在 2023 年初進行的所有成本削減，我覺得我們失去了動力。

And now we're building it up. The teams are fired up, we have a very clear plan, we know where to sell, we know what levers to pull, and we believe iQ3 is not the next iPhone, which is great incremental improvements. iQ3 is a step function, it is a significant leap in the evolution of our technology. And by getting and reinforcing the comments that were made, we've done great in individual physician practices and emergency rooms. All the places where the jack of all trades really values all the things that Butterfly does.

現在我們正在建造它。團隊都很興奮，我們有一個非常明確的計劃，我們知道在哪裡銷售，我們知道要拉動什麼槓桿，我們相信 iQ3 不是下一個 iPhone，這是偉大的漸進式改進。 iQ3 是階躍函數，它是我們技術發展的重大飛躍。透過獲取並強化所提出的意見，我們在個人醫生實踐和急診室方面做得很好。所有行業的傑作都真正重視蝴蝶所做的所有事情。

But being able to now penetrate into the subspecialties, to get into cardiac, to get into OB, to get into all the different areas that depend on higher level ultrasound and also cart-based ultrasound, that's the next phase for us. And as we go upstream, the training requirements, for those customers are less and less and less. So we're going to be able to start selling upstream more, we're going to be able to start selling broad-based more on the enterprise side because our software is already doing great. And our enterprise software and enterprise customers are doing fantastic.

但現在能夠滲透到次專業，進入心臟、進入 OB、進入依賴更高水平超音波和基於推車的超音波的所有不同領域，這是我們的下一階段。隨著我們向上游發展，對這些客戶的培訓要求越來越少。因此，我們將能夠開始更多地向上游銷售，我們將能夠開始在企業方面開始更多地銷售廣泛的產品，因為我們的軟體已經做得很好。我們的企業軟體和企業客戶都表現出色。

We're going to be focusing now on a system sell, an enterprise sell that includes our mobile solutions, our hardware, as well as our enterprise software. And we're very bullish on it. So yes, we are going to return to that growth. And also on the international side, we have been working with our partners, we've been working with inventory, we've been resetting our expectations on utilization and our expectations on education. Our expectation are distributors of true organic market development and they're responding, and our leadership in international right now is second to none.

我們現在將專注於系統銷售、企業銷售，包括我們的行動解決方案、硬體以及企業軟體。我們非常看好它。所以，是的，我們將恢復這種成長。在國際方面，我們一直在與合作夥伴合作，我們一直在與庫存合作，我們一直在重新設定對利用率和教育的期望。我們的期望是真正有機市場發展的經銷商，他們正在做出回應，我們目前在國際上的領導地位是首屈一指的。

I've done this many times, our team that we have in place are experienced. The company has been through a lot, and now, we've had some stability recently, and I think we're starting to get excited about what's to come. So I think you also -- want to talk to us in terms of the other questions you had or should we ask them to --?

我已經這樣做過很多次了，我們現有的團隊經驗豐富。公司經歷了很多事情，現在我們最近有了一些穩定，我認為我們開始對即將發生的事情感到興奮。所以我認為您也想與我們討論您遇到的其他問題，或者我們應該問他們嗎？

Yeah, Josh, (multiple speakers) I think we hit on the revenue questions --.

是的，喬什，（多名發言者）我想我們談到了收入問題－。

We've hit on the revenue questions. You want to ask us to talk about operations at all?

我們談到了收入問題。您想請我們談談營運嗎？

Yeah, -- just within that question survey, sorry, it was multilayered. I wanted to just talk about, I guess, the timing of that return to growth. Could you don't want to get too aggressive in our forecasting the early part of the year, iQ3 launching. And just one when is international get back to that. I know you've had some tough comps this year with some strong distributor orders in '22.

是的，--就在那個問題調查中，抱歉，它是多層的。我想我只想談談恢復成長的時機。您是否不想對今年年初 iQ3 的推出做出過於激進的預測？只有當國際社會回到這一點時。我知道今年你們的競爭很艱難，22 年經銷商訂單也很強勁。

And when does that tail off and could international returned to growth earlier than the US? Or should we be thinking about mid-year when that revenue growth really starts to kick in? Thanks for taking the questions.

這種情況何時會減弱？國際經濟能否比美國更早恢復成長？或者我們應該考慮年中收入成長真正開始發揮作用的時間？感謝您提出問題。

Hi, Josh, okay, I'll take that one. Yeah, I would expect international to come into place sooner than domestic. But we're still working through our '24 plan and the cadence of that, and obviously some of it will be dependent on ultimately when we can get the iQ3 launch. So stay tuned, we can give you some additional detail, but we are confident on that double-digit growth over the course of next year.

嗨，喬什，好的，我就拿那個。是的，我希望國際比國內更早到位。但我們仍在製定 24 小時計劃及其節奏，顯然其中一些計劃最終將取決於我們何時能夠推出 iQ3。因此，請繼續關注，我們可以為您提供一些額外的細節，但我們對明年實現兩位數的成長充滿信心。

Great. Thanks so much.

偉大的。非常感謝。

Suraj Kalia, Oppenheimer.

蘇拉吉·卡利亞，奧本海默。

Good morning, Joe. Heather, can you hear me alright?

早安，喬。希瑟，妳聽得到我說話嗎？

Yes. Hi, Suraj.

是的。嗨，蘇拉吉。

Yeah, Suraj, how are you?

是的，蘇拉吉，你好嗎？

I'm doing well, I hope all is well on your end. So Joe, first and foremost, congrats on the quarter in terms of stabilizing the business. Forgive me, Joe, many calls going on at the same time. So if I ask a redundant question, again, apologies. Joe, in terms of direct territories, I know that was one of the things that you had highlighted on the last call to increased direct territories by, I believe 40% or 50%, somewhere in that ballpark. Any update on that in terms of where we are, how does the sales churn rep look like?

我很好，希望你一切都好。因此，喬首先對本季業務的穩定表示祝賀。請原諒我，喬，有很多電話同時打。因此，如果我問了一個多餘的問題，再次道歉。喬，就直接領土而言，我知道這是您在上次呼籲增加直接領土的電話中強調的事情之一，我相信在該範圍內的某個地方增加了 40% 或 50%。關於我們的情況有什麼更新嗎？銷售代表的情況如何？

Yeah, sales rep churn has been very low. We've put the people in place that we've wanted to put in place. And now, I think it's going to take it's six months for them to get up to speed. But as I mentioned in the half, in the midpoint of the year, we did allocate the budget for it, and the team have successfully brought those people on. And so that's one of the things I'm excited about as we get into the early part of '24. We have some new additions to the team to augment a lot of the great people that are here at Butterfly. So and those investments have been made and the people are there.

是的，銷售代表的流失率非常低。我們已經把想要的人安排到位了。現在，我認為他們需要六個月的時間才能跟上進度。但正如我在上半年提到的，在今年年中，我們確實為此分配了預算，而團隊已經成功地引進了這些人。因此，當我們進入 24 年初時，這是我感到興奮的事情之一。我們的團隊增加了一些新成員，以增強 Butterfly 的許多優秀人才。因此，這些投資已經完成，人員也已經到位。

Got it. I have two other follow-up questions, and I'll just pose them together. Heather, one for you, in case you'll have quantified or at least directionally given us an idea about a pending backlog, so to speak, post iQ3 clearance? And Joe, you mentioned something about cart-based systems and going upstream, and I'm not sure I completely understood that. If you could just unspoon the thread a little more and talk us about that strategy. Pretty interesting, it seems like a complete shift from where we were. Just to some additional commentary would be greatly appreciated. Thank you for taking my questions.

知道了。我還有另外兩個後續問題，我會將它們放在一起提出。希瑟，給你一個，萬一你能量化或至少定向地向我們提供有關待處理積壓的想法，可以這麼說，在 iQ3 許可後？喬，你提到了一些關於基於購物車的系統和上游的事情，我不確定我是否完全理解這一點。如果你能把話題再展開一點，和我們談談這個策略就好了。非常有趣，這似乎與我們所處的位置完全不同。如果有一些額外的評論，我們將不勝感激。感謝您回答我的問題。

And so I'll take the first one, Suraj. We don't have a backlog, you're actually not permitted to sell the product until it's been FDA approved, so it's pending approval. So stay tuned, we'll be able to provide some additional information on our next call once we receive approval.

所以我選擇第一個，Suraj。我們沒有積壓訂單，實際上在獲得 FDA 批准之前您不能銷售該產品，因此它正在等待批准。因此，請繼續關注，一旦獲得批准，我們將能夠在下次通話中提供一些附加資訊。

And regarding the comment on carts, it's just a function of the type of progress we're able to make with our chip and our processors. Between now and say -- the next 10 years, every two years, we're going to continue to double our processing power and increase our capabilities to get image quality packed into a very small device. And so we're going to be focusing on all the calculations and settings that exist on carts and create ways for them to present themselves into the devices. We're going to continue to dramatically increase the power of the device, so the image quality continues to progress at this clip.

關於購物車的評論，這只是我們的晶片和處理器能夠取得的進步類型的函數。從現在到未來 10 年，每兩年，我們將繼續將我們的處理能力加倍，並提高我們將影像品質裝入非常小的設備的能力。因此，我們將重點關注購物車上存在的所有計算和設置，並為它們創建將自己呈現到設備中的方法。我們將繼續大幅提高設備的性能，因此該剪輯的影像品質將繼續進步。

And we're also going to work on our workflows in each of the hospitals, as to how to manage individual devices, how to store them, charge them, and how to keep them into the workflow. Because the best clinical care is not running to grab a cart or going to a room when a patient needs care. The best clinical care is delivering it to them where they're at, at that moment. And that means, that each doctor will have a Butterfly with them.

我們還將研究每家醫院的工作流程，包括如何管理各個設備、如何儲存它們、為它們充電以及如何將它們納入工作流程。因為最好的臨床照護不是在病人需要照護時跑去抓車或去房間。最好的臨床照護就是在他們當時所處的位置提供給他們。這意味著，每個醫生都會有一隻蝴蝶。

And as time goes on, there's 60% of medical schools today are teaching ultrasound as a part of their curriculum, 42% of residency programs has it in this curriculum. So over the next decade, people, the doctors are going to be trained on ultrasound. I know you're going to expect to have it not as: oh, let's go do that one scan, but hey, I'm really curious about what's going on here. Instead of you waiting a day and now ordering a scan and having to go someplace where we have to run and get a cart, I'm going to take care of you right now.

隨著時間的推移，如今有 60% 的醫學院將超音波教學作為課程的一部分，42% 的住院醫師計畫也將其納入課程中。因此，在接下來的十年中，人們、醫生將接受超音波訓練。我知道您不會期望得到它：哦，讓我們去做一次掃描，但是嘿，我真的很好奇這裡發生了什麼。你不用等一天，現在訂購掃描，然後去某個我們必須跑去拿車的地方，我現在就會照顧你。

And so we started with this universal device that can do everything, and it's been in all of these different points of cares. And right now, we've all the crises that are happening around the world, the first device, those charitable organizations are reaching to are Butterfly. And as a part of our growth evolution, as those devices become more and more powerful, you have in your hand today, basically, what would have been the most powerful supercomputer in the world 20 years ago. So think about open your mind to that.

因此，我們從這款可以做所有事情的通用設備開始，它適用於所有這些不同的護理點。現在，我們面臨著世界各地正在發生的所有危機，第一個設備，那些慈善組織正在接觸的就是蝴蝶。作為我們發展演進的一部分，隨著這些設備變得越來越強大，今天你手中的基本上就是 20 年前世界上最強大的超級電腦。所以請考慮一下敞開心扉。

And on that supercomputer that you have that you carry around as your phone, it's also your camera. Why Because the processing power has been able to now create imaging in such a small form factor. So why should a card exist? If you have an iPhone that is the most powerful supercomputer that would have existed 10, 15, 20 years ago, why would you need a cart in the future, if over the next 10 years we're going to have -- five different doubling terms and processing cloud. So imagine, all the capabilities that exist in carts are going to be in a device, the size of a butterfly.

在你作為手機隨身攜帶的超級電腦上，它也是你的相機。為什麼？因為處理能力現在已經能夠以如此小的外形尺寸創建圖像。那為什麼要存在卡片呢？如果你擁有一部iPhone，它是10、15、20 年前就已經存在的最強大的超級計算機，那麼你為什麼還需要未來的推車呢？如果在接下來的10 年內我們將擁有——五種不同的加倍計算機術語和處理雲。想像一下，購物車中存在的所有功能都將集中在一個蝴蝶大小的裝置中。

Thank you.

謝謝。

Neil Chatterji, B. Riley.

尼爾·查特吉，B·萊利。

Hey, guys, good afternoon, thanks for taking our questions. First off, --.

嘿，夥計們，下午好，感謝您提出我們的問題。首先，--。

Hi, Neil.

嗨，尼爾。

Hello, how are you guys? First off, just on the educational side, just curious, can you maybe just elaborate a little bit on any barriers or concerns you've seen on that side, with educating users and how the additional offerings, let's say it's gamma, may help pull through more probe sales?

你好，你們好嗎？首先，在教育方面，只是好奇，您能否詳細說明您在這方面看到的任何障礙或擔憂，教育用戶以及附加產品（假設是伽瑪）如何幫助拉動通過更多的探針銷售？

Well, yes. I mean, historically, the barrier to education is time and money. We have a timed walk way of prep from our practice and learn something new. And -- the best training is when you can actually use your hands and do something, it's hard to just watch videos. And so having that size, active training, and then being able to take scans with yourself and then comparing it and learning as you're using, is the best way to train.

嗯，是。我的意思是，從歷史上看，教育的障礙是時間和金錢。我們有一個定時步行的方式來準備我們的練習並學習新的東西。而且——最好的訓練是當你真正可以用手做某事時，僅僅看影片是很難的。因此，擁有這樣的尺寸，積極訓練，然後能夠自己進行掃描，然後進行比較並在使用時學習，是最好的訓練方式。

And so our first foray has been Butterfly Academy, which is a series of tests and a series of videos that walk you through how to do it. And it's a very, very popular, we have very high utilization, and it's been a great success that our clinical team and education team launched. In order to get people's competency even further, we've now entered into a live training, where we can remotely help someone with their didactics, we can remotely help them with their scans with live training. But also, we can have instructors come to their site and either educate them individually for educate groups. And the only thing that our barrier is in that scenario is time and money.

因此，我們的第一個嘗試是蝴蝶學院，這是一系列測試和一系列視頻，指導您如何做到這一點。它非常非常受歡迎，我們的利用率非常高，我們的臨床團隊和教育團隊推出的產品都取得了巨大成功。為了進一步提高人們的能力，我們現在進入了即時培訓，我們可以遠端幫助某人進行教學，我們可以透過即時培訓遠端幫助他們進行掃描。而且，我們也可以讓教師來到他們的網站，為教育團體單獨教育他們。在這種情況下，我們唯一的障礙就是時間和金錢。

ScanLab is a whole different generation, because it's an education-only application, which is designed to help people build their comfort while they're scanning. Where do you put the probe? What am I looking at? And then being able to see sample videos from that orientation, what it should look at. And then when they get that orientation, to be able to have AI labels that tell them what's the anatomy they're looking at.

ScanLab 是完全不同的一代，因為它是一款僅供教育的應用程序，旨在幫助人們在掃描時建立舒適感。你把探頭放在哪裡？我在看什麼？然後能夠從該方向看到示例視頻，它應該看什麼。然後，當他們獲得這種定位時，就能夠使用人工智慧標籤來告訴他們正在查看的解剖結構是什麼。

So it takes it one level further where they can practice as if they're being instructed by an expert, and they can modify their images, they can see what they're doing, and be told dynamically in a virtual environment. So the time and money aspect, AI really compresses dramatically. Of course, in-person side-by-side education is the best and that is the most expensive and the most time-consuming. And that's why Butterfly Certified exist, because we think it's absolutely essential. But ScanLab will allow med students to start scanning and immediately getting comfortable, almost like a video game.

因此，它更進一步，他們可以像在專家的指導下一樣進行練習，他們可以修改他們的圖像，他們可以看到他們在做什麼，並在虛擬環境中動態地被告知。因此，在時間和金錢方面，人工智慧確實大大壓縮了。當然，面對面的平行教育是最好的，也是最昂貴和最耗時的。這就是蝴蝶認證存在的原因，因為我們認為它絕對必要。但 ScanLab 將允許醫學生開始掃描並立即變得舒適，幾乎就像電子遊戲一樣。

Being able to start scanning and then understanding what they're looking at and we believe will give a lot of comfort in the early development, and the early getting over the fear of that initial imaging, will create a significant level of comfort. So between Butterfly Academy, looking at videos, and understanding, and then taking tests between Certified and doing it in person, and then ScanLab, --we've come out with all barrels blazing trying to get an attack this part of education. Now also, new advanced AI tools like our bladder scanner or like our new [B-Line] tool, also makes, and that's why AI is so important.

能夠開始掃描，然後了解他們所看到的內容，我們相信這會給早期開發帶來很大的安慰，並且儘早克服對初始成像的恐懼，將創造顯著的舒適度。因此，在蝴蝶學院、觀看影片、理解、然後在認證和親自進行測試之間進行測試，然後是 ScanLab，我們已經竭盡全力試圖攻擊這部分教育。現在，新的先進人工智慧工具，如我們的膀胱掃描儀或我們新的 [B-Line] 工具，也可以實現，這就是為什麼人工智慧如此重要的原因。

AI is so important because there's ways to capture images in a more -- or guide people how to capture images in a more automated fashion, there's ways to read images in a more automated fashion. And so getting more and more people and health care professionals who don't have prior experience to use these AI tools, is really essential. And so that's why Butterfly Garden is so powerful because we now allow all of these excellent AI tools that other companies have developed, to exist in the Butterfly environment. So our customers and our Butterfly users now will have access to those tools.

人工智慧如此重要，因為有多種方法可以更自動化地捕捉影像，或指導人們如何以更自動化的方式捕捉影像，有多種方法可以以更自動化的方式讀取影像。因此，讓越來越多沒有經驗的人和醫療保健專業人員使用這些人工智慧工具確實至關重要。這就是為什麼 Butterfly Garden 如此強大，因為我們現在允許其他公司開發的所有這些優秀的人工智慧工具存在於 Butterfly 環境中。因此，我們的客戶和 Butterfly 用戶現在將可以使用這些工具。

So in every phase of development of ultrasound, whether it's early education with AI, whether it's video and testing, whether it's in-person education, or now using advanced AI tools, Butterfly will be the environment that everyone goes to.

所以在超音波發展的每一個階段，無論是人工智慧的早期教育，無論是視訊和測試，無論是面對面的教育，還是現在使用先進的人工智慧工具，Butterfly都將是每個人都會去的環境。

Great. Thanks for that additional color. Just maybe just on the Forest Neurotech agreement, just curious if you could elaborate more on just next steps there and the brain computer interface market, and how to think about milestones towards that commercialization?

偉大的。感謝您提供額外的顏色。也許只是關於森林神經技術協議，只是好奇您是否可以詳細說明下一步的步驟和腦機介面市場，以及如何考慮商業化的里程碑？

Well, I think I don't want to speak for Forest, that is really their business and their opportunity. What I will say is Butterfly investors have invested over $500 million in developing an incredibly novel semiconductor technology that has wide application. It has tremendous application within Point-of-care ultrasound and ultrasound imaging, but it has incredible application in other markets. And we've identified the markets that butterfly will go after and we will partner with other companies, so they don't have to make the $0.5 billion investment, but also our investors get to benefit from those developments.

好吧，我想我不想代表森林隊說話，這確實是他們的事和機會。我要說的是，Butterfly 投資者已投資超過 5 億美元來開發一種具有廣泛應用的令人難以置信的新穎半導體技術。它在床邊超音波和超音波成像領域有著巨大的應用，但它在其他市場也有著令人難以置信的應用。我們已經確定了butterfly將追求的市場，我們將與其他公司合作，這樣他們就不必進行5億美元的投資，而且我們的投資者也可以從這些發展中受益。

What's exciting about the Forest particular deal is what they're looking for is the automatic scanning capability that only a semiconductor can do. You'd have to have a windshield wiper type device at the top of the brain to move a prow back and forth, in order to get the type of scan that we provide. In our scanning, we can put the chip at the top and then we'd be able to scan through the entire brain just like in Star Trek, you know, the tri-quarter that Bones had, you just put it in front of someone and it will scan your body. That's what our semiconductor can do and it makes it really easy for them to deliver their technology to do deep brain stimulation and other types of therapies using ultrasound.

Forest 的特別交易令人興奮的是，他們正在尋找只有半導體才能實現的自動掃描功能。你必須在大腦頂部安裝一個擋風玻璃雨刷類型的設備來前後移動船頭，以獲得我們提供的掃描類型。在我們的掃描中，我們可以把晶片放在頂部，然後我們就能夠掃描整個大腦，就像《星際爭霸戰》中那樣，你知道，骨頭的四分之三，你只需要把它放在某人面前它會掃描你的身體。這就是我們的半導體可以做到的，它使他們能夠非常輕鬆地提供他們的技術來進行深部腦部刺激和使用超音波的其他類型的治療。

So we're going to let them develop their clinical applications but allow for an innovation that they're developing. The come-to-market, so much quicker because it stands upon a proven platform. They would have had to go through the 7 years, 10 years, 11 years of evolution and development, and $0.5 billion dollars worth of investments, to be able to get to where -- they don't have to worry about that process, they can just focus on their therapy. And the beautiful part for Butterfly investors is not only are we getting paid for the work, and not only are we getting rewarded and recouping some of our investments, but on their commercial success, we'll be a part of their commercial success with them and have revenue on every unit they sell.

因此，我們將讓他們開發臨床應用，但允許他們正在開發的創新。由於它建立在經過驗證的平台上，因此上市速度要快得多。他們必須經歷7年、10年、11年的演變和發展，以及價值5億美元的投資，才能到達那裡——他們不必擔心這個過程，他們可以專注於他們的治療。對於蝴蝶投資者來說，最美妙的部分不僅是我們的工作得到報酬，我們不僅獲得獎勵並收回我們的一些投資，而且在他們的商業成功上，我們將與他們一起成為他們商業成功的一部分他們銷售的每個單位都有收入。

And if we can continue to develop our Butterfly ecosystem and have revenue passed through for new AI applications, and if we can continue to monetize our semiconductor technology in non-competitive markets, it increases the value of Butterfly and helps us get to our goals faster.

如果我們能夠繼續發展我們的Butterfly 生態系統並為新的人工智慧應用程式帶來收入，並且如果我們能夠繼續在非競爭性市場中將我們的半導體技術貨幣化，那麼它會增加Butterfly 的價值並幫助我們更快地實現我們的目標。

Great that's it for me. Thanks.

太好了，對我來說就是這樣。謝謝。

Thanks, Neil.

謝謝，尼爾。

Thanks, Neil.

謝謝，尼爾。

Thank you for your question. There are no additional questions waiting at this time. I would now like to pass the conference back Joe for further remarks.

謝謝你的問題。目前沒有其他問題等待。現在我想將會議轉交給喬，讓他進一步發表評論。

Well, thank you all for joining. We're very excited about where we are. We know we're in a transition, we're mindful as to exactly where the company is, and I'd have to say we're excited about '24 and the developments. So stay tuned. I will unpack iQ3 and the software and the power of iQ3 at our next quarter's conference call. So thank you.

好的，謝謝大家的加入。我們對我們所處的位置感到非常興奮。我們知道我們正處於轉型期，我們非常清楚公司所處的位置，我不得不說我們對 24 週年及其發展感到興奮。所以請繼續關注。我將在下個季度的電話會議上詳細介紹 iQ3 及其軟體和 iQ3 的強大功能。所以謝謝。

Yes, that concludes today's call. Thank you for your participation and enjoy the rest of your day.

是的，今天的電話會議到此結束。感謝您的參與，祝您有個愉快的一天。