Richard Barasch: There’s nothing structural or fundamental that we would call out. These are just a couple of short-term issues that we’re going to overcome in the second quarter. And I think we’re being appropriately conservative about how we’re looking at it. And I just want to be clear that there’s no change in customer demand. So for example, any potential slowdown in sleep resupply has nothing to do with demand, it has to do with supply. So we’re just being mindful. Things that are possible in trying to be — I hate to use the word conservative, but smart about how we think about the second quarter.
Eric Coldwell: Very good. Thank you very much.
Operator: The next question comes from the line of Richard Close at Canaccord Genuity.
Richard Close: Yes, congratulations on the quarter. Just maybe on the sleep resupply — supply chain issues, what you’re seeing there. Can you go into any more details specifically on what’s occurring and the confidence that maybe it’s short term in nature versus longer term?
Jason Clemens: Sure, Richard. This is Jason. So without getting into specific commercial arrangements or naming names, this is firstly not related to raw materials supply. It’s not related to our manufacturing capacity of the suppliers that we purchase products from. This is related to a slowdown in distribution that. Some of these suppliers have called out publicly, particularly like Red Sea impact and just dragging out some distribution. Now there’s things we can do with those suppliers to get around some of that by airfreighting and such, which obviously increases cost on. So it’s a supplier-versus-cost question. But at the end of day, we’re doing everything we can to get the product that our patients are asking for and to get that .
Richard Close: Okay. That’s helpful. And then with respect to diabetes, maybe just an update there. You talked a little bit about the pumps. Maybe if you refresh our memory on exactly how you’re thinking about the impact in terms of revenues and pumps as you progress through the year. And then commentary on doubling the sales force in diabetes just the — I mean a current update in terms of where that stands in productivity expectation.
Jason Clemens: Sure. Richard, I’ll speak a little bit in pump dynamic and then pass it to Richard for some comments on CGM and sales force. Pumps and pump supplies, I mean, we had expected that to be down $15 million to $20 million for the full year as part of our guide at the beginning of the year. We also message an expectation for that to ramp sequentially from down from Q1 until the end of the year as we’re working to set up and start more tubeless pumps versus tube-based pumps. We did a little better than we thought for Q1 than we would do. So look, it’s one quarter. We’re not going to excited about it, but we do intend to continue that trend. So it’s the second quarter in a row that we put out more tubeless pumps and more revenue from tubeless pumps than we did from tube-based pumps. So it will take time for that to continue to cycle through the overall patient portfolio. But we’re very focused on it. Richard?
Richard Barasch: Yeah, we had — just to comment on the increase in our distribution. We’ve done two things: We’ve added a 40-ish new reps. They’ve all been trained around in the field, and we’re actually seeing results that we’re quite, quite pleased with — from the majority of the new hires. I think, at 100% and we’re doing very well, being very well-trained. Very importantly, we’re also deploying them in places that are target rich. For example, we deployed new sales reps in New York City, where there’s a huge prevalence of diabetes and some other large cities. So it’s not just the increase in the sales group, it’s also the targeting of market that we think are going to be particularly fruitful.
Richard Close: All right. Thank you.
Operator: The next question comes from the line of Kevin Caliendo at UBS.
Kevin Caliendo: Hey, guys. Thanks for taking my question. I find it interesting that one of your public peers is investing in their fleet sales force and you guys have as well. I’m just wondering if you’ve given the comment today is. Is there any underlying business that is intensifying or are you seeing an opportunity in the marketplace for growth that’s new is out there that you’re trying to capitalize upon? Or are you just trying to get out ahead of the sleep data and the GLP-1? Just trying to — just seemed interesting to me especially given the comments around and everything. If you could talk maybe about the competitive dynamics and the strategy in place?
Richard Barasch: So look, we’re in a competitive business to start with that. But we’re the number one in sleep by good margin and our market share is increasing each year, each quarter. So we’re starting from very, very good place. We are adding sleep again target-rich places where we think we have an opportunity to grow. So we believe that we can grow — continue to grow very, very nicely that no one disputes the fact that there’s a huge number of undiagnosed OSA folks out there. As I said, when Lilly had made their announcement a couple of weeks ago, they talked about a number that we have even startling to us and it’s size of the number of potential OSA patients. So we think that there’s — it’s a very, very — there’s still nice tailwinds to the sleep business. And given our market leadership and our strength in the market, we’re going to make the best use we can.
Kevin Caliendo: That’s helpful. I appreciate that. And just one quick question on diabetes. You discussed the pharmacy channel shift in that marketplace. Was there any contribution there at all? Like how should we think about that? Did it contribute in the quarter in any way, shape, or form?
Jason Clemens: It did not incrementally contribute in Q1, Kevin. We do expect a very modest contribution in Q2 as we have opened up four key markets on pharmacy that — that team, we’re very proud of and they delivered on that near the end of Q1. So look, it won’t be material, but the team is focused on it. We intend to open up more markets as we go throughout the year.
Kevin Caliendo: Thanks. I appreciate all the color this morning.
Operator: The next question comes from the line of Joanna Gajuk at Bank of America.
Joanna Gajuk: A couple of follow-ups on Change and the impact in Q2. I just want to clarify. It’s pretty much of the costs, and I understand I’m just processing things manually versus out of automated systems that you normally use [indiscernible], but I just want to clarify and make sure, are there any impact to admission process in terms of just having more patients that I guess, processing the existing patients and rest of the supply because of Change outage.
