Michael Stubblefield: Yeah. Thanks for the question. Rachel, pretty perceptive actually. The Healthcare platform for us, which is about 10% of our overall revenues has a couple of components. One, a little more than half of the revenues are going to be in the content that we provide to our diagnostic customers and then the other third or 40% would be in our biomaterials platform, which, as you called out, has been a real source of strength for us throughout 2023. We delivered yet another quarter of strong double-digit growth. And continue to be excited about the innovation and the positioning of our technology offering in that space and anticipate that, that momentum certainly continues. The issue on — within the third quarter was not really on a relative revenue basis.
It actually printed right in line with how we would have incorporated into our guidance. But we are running into a year-over-year comparable issue. If you look back into the third quarter of last year, I think we called it out at the time, particularly through our Ritter business there was some pretty meaningful revenues that we had anticipated to come into Q4 that made it in under the shipping deadlines for Q3. So we had a little bit of an outsized performance in our Ritter platform, which is reported in this Healthcare segment in the third quarter of last year. That was really more timing as opposed to underlying demand. So that’s probably the biggest factor driving the reported percentages there, Rachel and in the quarter and we would anticipate fourth quarter on a percentage basis, returning to a more normal print for us.
But just to be clear, that platform for us played out, or this segment or end market played out for us as we would have anticipated.
Rachel Vatnsdal: That’s helpful. Thanks. And then I wanted to follow up on Dan’s question, just to push on 2024 a little bit more. So as Dan mentioned, one of your peers earlier this week noted that they’re expecting market growth in 2024. So your previous long-term core growth organic guide was roughly [indiscernible]. So given those comments when your peer pointing towards market declines, is it reasonable to assume that help line will decline for you guys next year on a core basis or given that minimal China exposure, having less COVID headwinds, is it possible for you to grow top line next year?
A – Michael Stubblefield: Yes. So firstly, I’m not sure it’s especially productive for me to try to unpack the comments that one of my peers has made. And would caution just to try the comparison and the definition of how each of us look at the market. Our portfolios, as you suggest are vastly different. Our end market exposures are vastly different as is our geographic exposure is vastly different. So it’s probably hard for us to try to reconcile how others might trying to call market growth for next year. But what I can say for our portfolio and mix, certainly, limited China exposure is a good thing right now. We are bullish on the region long term, and we’ll continue to make and see growth investments, particularly in the biologics space.
But not having China exposure today is obviously a good thing and will be a tailwind for us as we move into 2024. Having a consumables-driven portfolio, I think, is also a real positive and strength for our platform. We’ve certainly been plagued by destocking and the inventory headwinds over the last a number of quarters, but we do see that coming to the end. And the underlying demand in our end markets is stronger than what we’ve been realizing given that inventory drawdown. And then the last thing I would just reiterate is the sentiment is improving. I like our positioning, certainly, I like the funnel of activities that our teams have been able to build, and we’re anxious to see the order books turn, which will then give us a little bit more clarity on the shape of 2024 but probably a bit early for us to try to call that or give any more clarity than that from where we sit.
Operator: Our next question comes from Luke Sergott with Barclays. Luke, please go ahead. Your line is now open.
Luke Sergott: Great. Thanks. Good morning. Brent, welcome aboard. I promise it’s not usually this bad in the space. You certainly joined during an interesting time. So I guess I just want to follow up here on the 4Q margin. If we kind of back out the inventory in your commentary on that, is it safe to assume that it’s closer to — you guys would have been up closer to about 18% EBITDA margin run rate? And is that safe for us to use from a modeling perspective on a jump off?
Brent Jones: Again, it’s — I mean, I think you’re triangulating to something that makes sense in terms of taking the onetime out. We really aren’t making a call on ’24 right now. So I, Michael has made those comments very astutely on it. But again, we’ll give more color going forward there, and you can say, you’re just avoiding ’24 on me. But the reality is there are so many puts and takes on that, their volumes, absorption, all the rest of it, the growth in other businesses. So it’s a complicated look. And just one quarter of the exit of a challenging environment. I don’t want to start your thinking for ’24 kind of off the cuff.
Luke Sergott: Yeah. Perfect. Thanks. And lastly here, how are you guys thinking about — or can you talk a little bit about the conversations you’re having with Biopharma customers? You guys, I assume you still don’t assume a budget flush. And is that really — the conversations you’re having, is there a chance that, that’s getting pushed out or is pharma starting to talk to you guys more about things starting to come online next year. Give us a sense of — it’s kind of like another way to ask Ryskin’s question on kind of the curve. But if pharma is showing a lot more interest, you’re starting to see a lot faster decision-making, we can get a little bit more positive on that recovery portion.
Michael Stubblefield: A couple of comments to address your question. When I think about budget flush, as I mentioned earlier, we haven’t contemplated that in our guidance. And certainly, that would be upside to our current plan if it were to occur, but we don’t really anticipate it. And for us, this topic of budget flush really is concentrated to our Equipment and Instrument category, which is less than 15% of our revenues, so not the primary driver of our business. But as we talked to our customers about activity levels and such and clearly from a consumables perspective, as I mentioned before, the underlying demand for our products is higher than what we’ve been printing in our last couple of quarter results or actually over the last year or more, just given the inventory draw that we’ve seen at our customers.
