Unidentified Analyst: Got it. Thanks for taking the question.
Brian McKelligon: Thanks, Louis.
Operator: Thank you. [Operator Instructions] Our next question or comment comes from the line of David Westenberg from Piper Sandler. Mr. Westenberg, your line is now open.
Unidentified Analyst: Hi. Thanks for taking the questions. This is John on for Dave. So given the interest rate environment, do you feel that that’s impacting any capital equipment, like the app type capital equipment? And considering that you have more affordable platform, do you think that’s helping you? Thank you.
Brian McKelligon: Yes. I mean, certainly we are seeing more diligence around capital purchases. So there’s a slight lengthening and visibility around platforms like ours. It hasn’t gotten to a point where it’s impacting our ability to perform. And I do think that certainly the affordability of our platform certainly helps. I think the other way that we look at it is the meaningful throughput of our instruments really allows our customers, as you think about amortizing costs over a number of samples per unit time. It’s really helped our business. And that’s particularly true as you look at groups, whether they’re CROs, or core labs, or research based CROs that want to leverage our platforms as a business opportunity for them across multiple users.
The fact that we can do on 60, 80 samples a day, 300 samples a week on the HT, and 20 to 30 samples on the PhenoCycler-Fusion, that throughput coupled to the affordability and the amortization of samples per unit time has really allowed us to take those platforms and continue to grow in areas where it’s being used as a service offering.
Unidentified Analyst: Got it. Thank you. And I’m aware that you’re not giving any guidance towards 2024 revenues. But are there any other macro factors that we should consider when looking forward to that?
Brian McKelligon: I don’t think anything different than our peer group just in terms of the macroeconomic environment. I think for us, as you look to ’24, generally, thematically, as Johnny alluded to, it’s about really continuing to see solid top line growth, while at the same time, we are really going to be holding our expenditures in 2024 at a level that’s consistent with what you’ll see at the second half. So I think we feel like in terms of our multiyear strategy to really forward invest in ’21 and ’22 to solidify our commercial team and portfolio. And then in the subsequent years, ’23 and ’24, continue that revenue growth while really holding our expenses and investing in gross margin. That really has been our plan. And it’s certainly magnified importance in this environment.
And so we think that strategy will continue into 2024. So as you noted, while we are not guiding specifically, again, still thematically, it’s continued top line growth with real eye towards expenditures equivalent in ’24 to second half to reiterate. Johnny, anything to add to that?
Johnny Ek: No, I think that’s exactly right. It’s a [indiscernible] focus. It’s continuing to grow revenue at a meaningful rate. It’s improving gross margin ratably through the year. And then it’s continue to hold OpEx at an appropriate rate given the forward investment. That’s, to your point, not guiding for ’24 yet. But it’s how we look to the future. Those are critical areas of focus for us.
Unidentified Analyst: Got it. Thanks for your time.
Operator: Thank you. Our next question or comment comes from the line of Rachel Vatnsdal from JPMorgan. Mr. Vatnsdal, your line is now open.
Unidentified Analyst: Hello. This is Martha on for Rachel from JPMorgan. Thank you for taking the question and congrats on the quarter. Just wanted to dig into the assumptions for 4Q. Maybe you can provide a little bit more color on the pull-through and placement assumptions. And just to clarify, in light of the macro, are you assuming some sort of 4Q budget flush for 4Q? Thank you.
Brian McKelligon: So — yes. So right now, I think I heard your questions about 4Q guidance on that and budget flush. And while we explicitly don’t guide on the fourth quarter, like our typical seasonality, we do expect a top line step up in Q4 relative to Q3. Yes, in terms of budget flush, it’s a really good question. I think for us, obviously, it’s not a binary event where it’s either a flush or not. I think for us, we are being fairly muted in our expectations of a meaningful freeing up of CapEx money amongst our customers. And thinking this is going to be sort of more of a typical step up, similar dynamic in 2022 because I think the environment is similar. Johnny, want to add anything?
Johnny Ek: No, I think that’s how we think of it. The only thing I would add is, as we reiterated guidance, you do math on Q4 and you get right into our guidance, which is where we expect for the full year.
Unidentified Analyst: Thank you. And then in terms of pricing this year. Can you discuss how much you were able to raise pricing? What are your expectations for ’24? And then are you seeing any pricing pressure from your competitors this year?
Brian McKelligon: Yes, I’d say, like this fiscal year ’23, it will be a similar scale of price increase in ’24, taking into account, obviously, the economy and interest rates and what we think is a fair price increase. But I think it will be within standard range, nothing that’s an outlier. Johnny, you want to add anything to that?
Johnny Ek: No. I mean, I think with the high inflation environment, what we are seeing, we expect to be able to get price increases that are what we’ve seen in prior years and appropriate. And we are not seeing a meaningful pressure on price. I think that’s part of your question is we are not having that in the field. That’s not a major item we are working anyway.
Unidentified Analyst: Thank you.
