Butterfly Network, Inc. (NYSE:BFLY) Q2 2023 Earnings Call Transcript - Page 6 of 6 - InvestingChannel

Butterfly Network, Inc. (NYSE:BFLY) Q2 2023 Earnings Call Transcript

Joshua Jennings: That’s outstanding. And then, just how should we be thinking about the potential by Q3 launch next year to kind of enhance or pull forward the replacement cycle? Just thinking about adopters in ’19, ’20, ’21, even ’22 and then their drive to — I think it’s pretty clear that this should enhance the replacement cycle or pull it forward. But any just high-level thoughts for ’24 and ’25 about the replacement cycle contributions to revenue growth?

Joseph DeVivo: I honestly don’t — we haven’t modeled that out. I can’t honestly give you a specific answer. Obviously, when new technology comes out with greater capabilities. I think for us, the current IQ Plus users are using IQ Plus very happily. The people who are not using IQ Plus because whatever specific additional reason they have are going to be, in my view, more enticed or associated now to be able to get into — so I’m hoping — I’m sure there’ll be some upgrades because there’s a cool factor. But it’s not like those who are using it today aren’t getting value. They’re certainly getting value, but the increased capabilities and the increased imaging capabilities are certainly going to meet the needs of certain markets that we haven’t participated.

So I think the base just widens. And then as I mentioned in my prepared remarks, as hospitals start looking at standardization, if they can get out of the bundled agreements that the big companies put the golden handcuffs on them, we have the ability to standardize because we need all the use cases, we believe now. And so that’s our thought, and that’s our point of view; no problem.

Operator: Thank you. Our final question today comes from Danielle Antalffy from UBS. Please go ahead, Daniel. Your line is now open.

Danielle Antalffy: Joe, you touched on this a little bit with Josh’s question, but just any color you can give on the go-to-market strategy for the Q3? Is this something you’ll go to your existing customer base with first? Is it something that you’re going to try to win new accounts with — and also on the pricing side of things if you guys have ironed that out — and that’s all for me.

Joseph DeVivo: Thank you for the question. We’re going to go out to everybody, and we’re going to go into hospitals. So we’re going to go everywhere. There’s — we’re not going to keep this in our back pocket and just show it to 1 or 2 people. It will be in our e-comm channel. It will be through our U.S. channel. And then following U.S. clearance, we’ll be filing for our international clearances and sequence. So no, we’re intent on this being not a specialized product but a broad-based product. And what was the last thing that you mentioned — what was the last question? You said Christine?

Danielle Antalffy: Just on I know you guys just on price, if this is something yes.

Joseph DeVivo: Yes, we haven’t finalized — we have a little bit of time. We have a bunch of thoughts on pricing, but we don’t — we do think the price has the possibility of being higher than the current, but I don’t want to peg it at a particular price, but it will certainly be higher. And that also plays into a segmentation strategy because we’ll have now 2 probes on the market, and we’ll have a lower priced proband a higher price growth.

Danielle Antalffy: Thank you so much.

Operator: Thank you. This concludes our Q&A session. So I’ll hand back over to Jay for any closing remarks.

Joseph DeVivo: So, I just want to thank all the Butterfly employees for their loyalty over the last year. And we have a lot of people who are even no longer with us, and they’re awesome people and my — we’re going to return ourselves to a really nice growth. We’re going to please our investors. We’re going to continue to be a great place to work, continue to be a way where we’re solving problems for health care, helping patients. This is — we’re still in our infancy. And I’m just very excited about the next 12 months. So, I really appreciate your time and look forward to giving you the next update.

Operator: Thank you. Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may now disconnect your lines.

Related posts

Advisors in Focus- January 6, 2021

Gavin Maguire

Advisors in Focus- February 15, 2021

Gavin Maguire

Advisors in Focus- February 22, 2021

Gavin Maguire

Advisors in Focus- February 28, 2021

Gavin Maguire

Advisors in Focus- March 18, 2021

Gavin Maguire

Advisors in Focus- March 21, 2021

Gavin Maguire