It’s just the speed of that wand, the simplicity of being able to scan, the dimensional tolerances and all that’s used in the sense of both comprehensive and orthodontic cases are really unmatched. So, we’re excited about that, but we just have to take this thing. We’ve only had it out now for roughly a couple of months, but we are expecting to have a really strong year, but more importantly, to have that really be to set the standard from a scanner standpoint for the industry going forward.
Operator: Thank you. [Operator Instructions] And our next question comes from Michael Ryskin with Bank of America. You may proceed.
Michael Ryskin: Hey, Joe, John, thanks for taking the question, and congrats on the quarter.
John Morici: Hey, Michael.
Joe Hogan: Hey, Michael.
Michael Ryskin: Hey. I want to follow-up on something I think, Joe, you touched on in the prepared remarks. If I caught it correctly, you kind of pointed to a little bit of strength in U.S. ortho or Americas ortho in the quarter stood out for us. It seems like it’s one of the stronger results in a number of quarters. Just wondering if you could expand on that a little bit. Is it the Lumina launch? Is the fact that you’re moving into younger teens and younger kids, which obviously is going to be a little bit more ortho-focused? Just any structural change you’re seeing there with that group of dentists? Or am I just reading too much…
Joe Hogan: Michael, I understand your question. I’d say it’s — we feel it’s — we’ve seen more stability in that market this year than we have last year. We’ve always known that the teen segment of that much more solid than the adult segment, but the adult segment held up for us in the quarter two. And so that aspect of the adults was good for us also. But I’m very cautious about projecting this market going forward because as you can see with a lot of the surveys that are done, this moves pretty dramatically from month to month. But again, it’s not just the United States market we’re focused on, the global market has been good for us too in that sense. So, we’re going to take this thing a month at a time, but we’re confident enough to say this is stable, that we have products in here that are very helpful from an orthodontic standpoint in new, like you mentioned, Lumina and also IPE that gives us more ground to stand on the sense of those orthos.
And so, we’re excited about that. But in no way do I think there’s a phase change between what we saw last year and this year in ortho. It’s just more stable and we have more continuity is another word that I’d use to describe it.
Michael Ryskin: Okay. And if I could squeeze in a follow-up if there’s time. Again, also impressed by the DSP touch-up progress that you called it out in the deck. You got some additional launches later this year. You got the 14-stage touch-up aligner offering you’re talking about. Any way you can start framing in terms of would you incorporate that into guidance at some point in terms of where you think that can go in terms of volumes and revenues or any update longer term, how you see DSP and touch-up evolving over time? Thanks.
John Morici: Yes, Mike, I’ll take that one. Look, DSP is very popular because it really serves the needs that doctors have. They want to be able to buy things kind of the way they want to buy. They want to be able to instead of making things or doing things themselves, they can use our aligners as part of that DSP and be able to treat those touch-up cases. And we like that, that’s incremental for us in terms of what we see there. And they can also then use a lot of the aligners that they have for retention. And that’s great too because that’s typically incremental volume that we have. So, I think when we see us rolling this out, like we said a few years ago, it was U.S. and North America and now into Europe, it continues to do what we expect it to do. Doctors start. They adopt it more and more because part of their workflow and we see positive volume from that. And in success for projects — programs like that, we’ll continue to expand those out.
Michael Ryskin: All right. Thanks.
Shirley Stacy: Okay. Thanks, Michael. Operator, we can take one more question.
Operator: Thank you. One moment for question. And our last question comes from Kevin Caliendo with UBS. You may proceed.
Kevin Caliendo: Hi. Thanks for getting me in. I appreciate it. I have two questions. So, the first one is on Heartland, can you talk a little bit about the benefits of the Heartland investment operationally? And also, Heartland is — my understanding is a pretty profitable business and now with two separate investments there. How does their profits or how does the accounting work for that from your perspective at this point? And then, secondly, if you can provide — I guess, with regards to the guidance, I think we understand it. But was that in any way based on the trends that you’ve seen so far in April? If you can elaborate on those in any way, that would be great. Thanks.
John Morici: I can start with the guidance part of that, Kevin. Look, we use a lot of factors to look at where our guidance is. So, we’re using data from Q1 and the most recent information. But it goes back to the stability that we’ve seen. You can see it in a lot of the surveys and other things that a lot of people do, but what we see is that stability, coupled with what we’re trying to do to go-to-market to drive the initiatives we have and the new products that we have. So that’s a key part of what we factor in into our guidance. No change from what we normally do. This is how we’ve come together in terms of a guidance standpoint. In terms of Heartland, we look at Heartland as this is a great investment from investing in a company that shares a digital orthodontic mindset that we have, to be able to do things in a similar mindset, to be able to expand like they’re expanding, to be able to get into markets that in some cases, we don’t have much market share with or a big presence there.
And they share that same mindset, that expansion. They’ve been around for a lot of years as well. With this investment, it’s less than 5%. There’s no consolidation or anything else that’s required. And we’ll evaluate going forward on whether there’s any mark-to-market that we have to do going forward. But it’s a continuation of that investment, the expansion that they’re doing, and we’re pleased with the results that we’ve seen over the last year.
Kevin Caliendo: Super helpful. Thank you.
Shirley Stacy: Thanks, Kevin. That actually concludes — sorry, go ahead, operator.
Operator: And we have reached the end of our question-and-answer session. I will now turn the call back over to Shirley Stacy for closing remarks.
Shirley Stacy: Thank you so much, and thank you, everyone, for joining us today. We look forward to speaking to you at upcoming financial conferences and industry meetings, including the American Association of Orthodontics meeting in New Orleans, May 4 and 5. If you have any questions, please give us a call. Thank you.
Operator: Thank you. This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.
