To Bank of America for giving us the opportunity to present. My name is Joe DeVivo. I'm CEO of Butterfly Network, and I look forward to either introducing you or giving you an update to the overall story. We are a point-of-care ultrasound business. Point-of-care ultrasound is bringing ultrasound to where the patients are. Instead of a patient having to go into the hospital and have a radiology exam, doctors are educated to use a device, nurses. Wherever the patient is, in the hospital or in the outside, in the home, doctors would carry these devices to be able to manage patients. It's a whole new way of reducing the cost of care, democratizing ultrasound, because about two-thirds of the world doesn't have access to medical imaging.
They don't have that beautiful hospital where you just go in and get the overall image. We are a semiconductor-based ultrasound device. That semiconductor acts very much like a TV screen, where we are able to program it to deliver all different types of sound dynamically. About 20% of patients with serious conditions are first misdiagnosed. About 80% of diagnostic dilemmas can be solved with simple imaging, and the initial assessments with imaging results in changed medical diagnosis if they're imaged right up front. That means, like, at your primary care doctor. That means when you engage, instead of them taking your symptoms and then making, you know, the best decision with that data, giving them more data.
It's like we are the stethoscope salespeople 40 years ago who say, "Hey, Doc, it might be good for you to listen, you know, to the bowel sounds, listen to the fluid in the lungs, listen to the heart." Now we're giving them a device that's only several thousand dollars to be able to see inside the body when they see the patient, and it's having massive impacts around the world. The way it works is, you know, supercomputers used to be huge. Now we all carry one in our pocket. Ultrasound machines are huge.
Now doctors and nurses are gonna be able to have a device in their pocket, and it's all made possible by the development of the semiconductor because whether you look at the heart, whether you look at the lungs, MSK, peripheral vascular, you would typically need a different probe for each one of those applications. What we have now is the ability to just identify what part of the body you would like to scan, choose that part of the body, and then the settings of the chip change to be able to deliver the type of array and frequency necessary for that part of the body. What we are to classic ultrasound is what digital photography was to film. We are revolutionizing ultrasound through digital, the digital acquisition.
Ultrasound will do back-end digital processing, but they don't capture the image in a digital form where they can change and dynamically change those settings. It's a very, very powerful tool, and we're making a lot of progress. Much so that we're actually getting noticed in the world. We're getting noticed in, you know, We are on The Pitt. We were on, just recently, on Survivor and then Virgin River that I'd never watched that show. That's my wife's show. She got excited when this particular person had a lower right quadrant pain and had to diagnose an appendectomy. Butterfly is making its mark in healthcare. We have over 150,000 devices sold to date. There are doctors in all different types of walks of life that have them for all their different use cases.
Now we're becoming a verb. Did you Butterfly that patient? You know, it's really a strong type of adoption, now we're working with large institutions about institutionalizing this into the main component of healthcare. Also, as individual doctors walk around with individual ultrasound devices, in order to make this work for hospitals, they have to be able to capture the scan. We're one of the only companies in the only medical companies in the world to ever receive an Apple Design Award. We are architected in a cloud-based, app-based modern architecture with a modern SaaS platform that integrates into all the systems in the hospital.
We have hospitals now who have over 1,000 different devices, and all those devices stream data into the EMR, stream data into the DICOM, stream data into the revenue cycle management system. Because in point-of-care ultrasound, hospitals only capture about 35% of their scans. That's 65% leakage on revenue. Also data compliance, they need to have that data to be compliant. We've architected ourselves in a very module way, in a very modern way. When I was running other device companies and I wanted to update my software on a device in a hospital, I'd have to send my rep in with a USB stick. Now I can push an update just like iPhone to all those devices around the world.
We come up with a new concept, we push it. Our architecture is actually one of our strategic advantages. What it allows us is in ultrasound, the hardest part about ultrasound is that it's hard. If you've had an MRI, if anyone has had an MRI or a CT, you go into the, into the MRI lab and the, and the tech puts you on the table and tells you not to hit your head on the way in, and then they go outside and initiate an automated protocol. Ultrasound is like an art. You have to actually search the anatomy, and then you have to understand what you've found. It's a much harder modality to do. It's kind of an enigma. You have this low-cost modality, but it's harder to do. How do you make it easier? AI.
There's over 30 companies now in Butterfly Garden developing LLM models to be able to make it easier for caregivers to do an ultrasound scan, and at a minimum, make it easier to acquire the image. The two biggest challenges in ultrasound is image acquisition and image interpretation. If you make it easy for a nurse to go into a home and do a cardiac echo, which is the highest volume cardiac image taken, you can send that image to a cardiology clinic. They can make a decision, change the medications for that patient, keep them in the home, keep them in the nursing home, keep them where they're at, and stop the revolving door in and out of the hospital because they're not getting the appropriate management of care.
The amount of apps we have now and the amount of whether it's cardiac echo or pulmonary or MFM, we just received the first FDA approval of a blind sweep of any company in the world just a month ago. FDA was so proud of it, they actually tweeted and posted on LinkedIn that this is the way AI should be approved with the appropriate safety and efficacy data, and it's all based upon the apps and how we come into our ecosystem. That will change healthcare. They're just like the iPhone took over BlackBerry, we will take over all of the legacy handhelds when we have all of our applications easy and in a modern way.
We also now are helping work with at-risk providers to be able to show them how to use this in their practice and how to use this in order to be closer to patients. We're gonna be creating a whole new home care business that allows us to manage the logistics in order to move that part of this forward. That's another, you know, we have our devices, we have software, and now we're building a service business. That'll be a very material contributor in 2027. There is a moment happening right now, and that moment is ultrasound is being seen as an amazing bridge into the human body by AI and a lot of different use cases. This is normalized from for a growth rate standpoint.
There's about 13,000 - 16 ,000 studies on normal ultrasound a year, but it's very flat. There's about 2,000 studies on point-of-care ultrasound a year, but it's very flat. Now new applications on how ultrasound could be used in the brain for neuro, for neuromodulation, how it could be used for deep brain stimulation, where literally, we are the only one company in the world that has commercialized a digital Ultrasound-on-Chip, and we may be the next bridge between that chip and AI in the human body. There's a lot of use cases now. What we've made a decision is to start a business by licensing our chip to third-party companies who are not competitive with Butterfly in its core space, and that's called our Embedded program.
We have solved a foundational problem in overall technology, and we're the only one who can put this chip and have this continuously evolving semiconductor-based ultrasound. What it does for us is our TAM for point-of-care ultrasounds, just about $30 billion. Now by partnering with other companies in some very big use cases, our TAM goes from about $30 billion up to about $35 billion because we can participate in all these different segments of the market. We've launched a program called Butterfly Embedded. For those looking at the slides, it looks a lot like Intel Inside, as you see in the bottom right, and that's exactly what it is that we have an ultrasound processor that can help third parties accelerate their ultrasound aspirations by using our tech platform.
You know, from 1993 to 2005, NVIDIA was a video game company. They made processors for video games. What they did, they had a GPU, they had focus because they had to have this multidimensional activity, and then they had to have someone else have this multidimensional activity interact, and they constantly evolved that. It wasn't until 2005 when they launched something called CUDA. CUDA was their developer software, and that allowed third parties for the first time to go into the chip and change the settings for their particular applications. That's when the world started to change for them. If you listen, I've listened to the Joe Rogan podcast that had Jensen on for three hours.
I've listened to him speak to Stanford students, where he said, "We had no idea what our next chip would be used for. We just kept pushing the boundaries of technology." Well, we're taking that same mindset. We're a point-of-care ultrasound company primarily, but we now have opened our software up to third-party developers, and they are now finding all different types of new use cases for the technology, and that's turning into pretty a potent revenue stream. A company that was purely point-of-care ultrasound and POCUS now has shots on goals for all these other markets, and we are actively talking to companies in each of these markets. We are developing point-of-care ultrasound. We have a sales force. We have a marketing team. We have the cost of building that market.
We can now participate in all these other markets without having to develop them, but by partnering with someone who's there who needs our core technology. We have 600 patents in this space. It's cost us $300 million to make our first chip. We are now selling our third generation chip. Our fourth generation is at TSMC, who is our partner, and we are developing our fifth generation chip. Here's our pipeline. We've never shown this before, but we have four companies that are working with us that are, have been publicly disclosed. We have another five companies that don't want to be unveiled yet, but these are real early players in their space, and those are our partners.
We have another 40 companies that we are actively talking to to license our chip. This, the ability to build our point of care ultrasound market and grow and see the dream of every doctor and every nurse having their own device is what our core mission is. Being able to now leverage the technology for all different parts of healthcare to accelerate the benefit of human care, also to have our existing shareholders benefit from all that innovation is why I think the next several years of Butterfly are gonna be absolutely insane. When these applications start going public, when these companies start bringing them out, and also when point of care properly adopts and inflects, this is gonna be one of the most exciting growth stories you guys are gonna watch.
Just remember that you're here today 'cause this is a real exciting time for us. The way our revenue, as our company comes in, is both POCUS and embedded. We are now breaking out the embedded revenue, we sell hardware services and software in the POCUS segment, then on the embedded side or, you know, the chip side, we have a licensing fee, we sell chips, and we do a revenue share depending upon different models if they want exclusivity, et cetera. Within the most recent quarter, it was about, or in this year, it's about 20%, 25% of our revenue now, and I think it's gonna be a much bigger part. We're in the midst of a big turnaround.
If anyone has seen Butterfly, we used to be a company with declining revenues, lower gross margins, burning a lot of cash. Over the last three years, we're now doubling our revenue. We're in the high 60s in gross margin. We have a strong balance sheet. We're using less and less cash. We'll get to break even on our current cash, we're going to be generating a tremendous amount of value. Just last quarter, we grew 25%, improved our gross margins by 600 basis points, reduced our loss, and are really focusing on being very good shepherds of our cash. With that, I just want to thank you for your attention, and again, for Bank of America for giving us this opportunity. Thank you very much.