Suraj Kalia: Got it. Heather, if I may. So, Heather, one of your comments caught my attention, we understand the internal constraints and the changes and all that. I think so in your prepared remarks, you also mentioned something about external resource constraints, I’d love to get some additional color on that Heather and also, maybe if you could to the extent that you can, the cash burn reduction from 18 to 10 per month. I mean, that’s a drastic reduction, right. Can you give us a flavor of where exactly the cash was being spent or where it is being cut? Thank you for taking my questions.
Heather Getz: Sure. So, starting with your first question, so well, actually, I’ll start with your second question first. So, on the cash side, first of all, you have to remember cash, cash use does decrease as the year goes on the first quarter, as I mentioned, is typically higher. That being said, if you think about where we were early in the year, we were ramping-up, and we were hiring a fair number of folks, we did one cost reduction initiative in Q3, and we did a follow-on in Q1. The reductions really came across the board. And we focused our attention on specific projects. We trimmed down more of our R&D and some of our sales side, but also D&A. So, it was really an across the board reduction. Obviously, from a percentage perspective, we were spending more on the R&D side, really than anywhere else in the company.
So, from a pure dollar standpoint, that’s where most of the dollars came from. And that was a similar result in the Q1 reduction as well. We also were very focused on external spend. And we were reducing consultants and other things that really weren’t contributing to our near-term ROI. And I think Jonathan, you wanted to — you wanted to add to that?
Jonathan Rothberg: Yes, what I want to make crystal clear is, this reduction is making us more focused and more efficient, whether it’s in R&D, or in sales. We’re stronger with a more focused team, and a team that understands every day what they have to accomplish to make our Butterfly iQ as ubiquitous as the stethoscope. Our R&D is more efficient than ever, our ability to develop deep learning algorithms and AI more efficient than ever. Our enterprise team and enterprise software is more efficient than ever. I’d like everybody to reflect Netflix maybe a decade ago when they had a reduction in stock, they ended up with higher talent density, and that’s precisely what we’ve done. While it’s difficult to let people go, we are now a stronger team, with higher talent density, more efficient team, more focused team, and more productive team. And so, while there is reduction in cost, there is an increase in productivity.
Heather Getz: Okay, that was well-said, Jonathan. Thank you for that. And I think — does that answer your question, Suraj?
Suraj Kalia: Yes, perfect. Thank you.
Heather Getz: Okay. And then, as far as the external factors are concerned, what we were talking about was what we were seeing in hospitals in the fourth quarter, we started to see it at the end of the third quarter and we did talk a little bit about this on our third quarter call, was that we have had a tremendously positive response to our products, but when you start to talk about enterprise-wide large scale deployments, hospitals coming out of COVID, I think you’ve probably heard other people talk about this, there is a fair amount of burnout with the staff. So, even when somebody is saying, “Hey, economically this makes sense, and you know, we would like to get this in place,” there’s been a delay of implementation in some places, because they just don’t have the staff or the resources to focus on getting it deployed.
Not everybody is like the University of Maryland, where we can get it done in 14 days and get it in. And so, that’s what we are running into in the third and fourth quarter, and into the first quarter of this year. We do expect that dynamic to alleviate, and so, we will keep you posted.
Suraj Kalia: Thank you.
Operator: Thank you. And with no additional questions rising at this time, I would like to hand the call back over to the management team for closing remarks.
Heather Getz: Thank you for joining us on our Q4 call. We look forward to updating you on our first quarter 2023 call. Thank you very much.
Jonathan Rothberg: Thank you.
Operator: Ladies and gentlemen, this concludes today’s call. Thank you for joining. Have a great day ahead.
