Last year, at the annual J.P. Morgan Healthcare Conference, I had the opportunity to meet with the CEO of Butterfly Network, a company specializing in point-of-care ultrasound devices. At that time, the Massachusetts-based company was undergoing a turnaround after facing a decline in revenue following 12 years in business, with its stock trading at around $1. CEO Joseph DeVivo expressed confidence that 2024 would be the year the company would regain its momentum.
Fast forward to last week when I met with DeVivo again, and he was beaming with pride. He shared that the company had launched its third product, the iQ3, in February 2024, leading to impressive growth throughout the year. Revenue increased by 14% in the first quarter, 16% in the second quarter, 33% in the third quarter, and culminated in a 35% growth in the fourth quarter. This resulted in a total growth rate of 25% for the year, with no single large deal accounting for the increase.
The strong performance in 2024 was largely attributed to the market adoption of the iQ3 product, with 80% of U.S. sales in the third quarter coming from this device. DeVivo highlighted the iQ3’s enhanced capabilities, including higher processing power and improved image clarity, making it suitable for various hospital procedures such as needle placement in anesthesiology and cardiac scans in the ER.
DeVivo emphasized that Butterfly Network’s iQ3 competes favorably with established device makers like GE Healthcare, offering comparable features with a single probe at a lower cost compared to GE’s multiple probes. The iQ3 utilizes ultrasound-on-a-chip technology, enabling whole-body scanning with a single device, unlike traditional piezoelectric crystal-based devices that require multiple probes for different applications.
The company’s success in 2024 was evident in its financial performance, with revenue growth driving the stock price from $1 to nearly $4 within a year. DeVivo sees Butterfly Network as a leader in the digital ultrasound revolution, leveraging its accumulated data and images to enhance medical diagnostics and patient care. The company’s focus on innovation and customer satisfaction has led to increased adoption among large health systems, with the University of Rochester Medical Center being one notable customer.
Overall, Butterfly Network’s iQ3 product has garnered significant attention and success in the medical industry, showcasing the company’s commitment to advancing healthcare technology and improving patient outcomes. La compañía puede entrenar modelos en estos datos.
“Si quisiera tener 10,000 escaneos cardíacos y quisiera entrenar un modelo de IA en ellos, podrías hacerlo”, declaró. “Ve y pregunta a cualquiera de estas empresas qué harían para obtener 10,000 escaneos cardíacos, escaneos pulmonares. Así que somos la única empresa que está completamente conectada en red y tiene esa base de datos.
Otro punto de diferenciación es el “Jardín de Mariposas” donde las empresas de IA están construyendo aplicaciones basadas en los datos y dispositivos de la empresa. Por ejemplo, ThinkSono, que es una IA de ultrasonido para detectar trombosis venosa profunda.