So, we – there is a nice installed base of users, and I think that that’s where we’re most likely to target. This is a — as we mentioned on the call, as everybody knows, it’s a difficult macro environment for a lot of accounts. And so I think I’m probably more optimistic on the upgrade opportunity than I am on the new system opportunity. But over time, we think that both are real. And yes, we think that this can be a nicely additive or at least support the overall effort as we go through 2024.
Jon Block: Got it. That was great. That was helpful. And maybe just to shift gears, for AviClear as you mentioned, you’re getting systems back and more will come back shortly. Maybe if you could just comment on what the go-to-market strategy is there. You’d want to get those out the door as soon as possible, arguably, just from a cash flow perspective, but Avi is still a very new law. So do you start offering the new systems and the refurbs immediately? Do you do that in the same market? Maybe if you could just talk to how you’re going to attack the market as you get the systems back more frequently?
Taylor Harris: Sure. So as we contemplate new accounts for AviClear, our number one focus is – well, I should say, our focus is on accounts with a profile that we really think can support developing a healthy franchise, a healthy business over time. And that generally means a practice that is either already familiar with the treatment of acne more broadly – or have the ability to get up that learning curve very quickly. It generally means you’ve got a physician on site. And then there’s got to be a willingness or willingness to train the entire staff, to go through programs like our Academy and to invest behind the product. Now we think that the most likely the best target that meets that profile – is an aesthetic dermatology practice.
Ideally, 1 that has connections with medical dermatology, which is where you’re going to see probably the healthiest flow of acne patients. So really, the step number one, is find that target audience. We think there are, call it, 3,000 to 4,000 aesthetic dermatology practices across the country. So there’s a good target here to go after. And there are other accounts that could meet the profile that we’re looking for as well. But really, the focus is unlike the first time around, it’s not on just getting machines out of the field. The focus is on getting machines into places where we think we’re going to see a great return over time, both for the practice and for us. So, now then whether it’s a new or a refurbished system, we will have both to offer there could be a cost advantage to a practice if they go with a refurbished and refurbished is – we make it new.
I mean this is effectively a brand-new machine. We’ve got a great team that does that work back here at headquarters. So both will be available.
Jon Block: Got it. Thanks for the color, you guys.
Taylor Harris: Thank you, John.
Operator: The next question is from James Beer with William Blair. Please go ahead.
James Beer: It’s Jimmy on for [Margaret]. Thanks for taking the question. I wanted to maybe start off just on the capital environment, maybe go back to some of the macro thoughts. But we continue to hear the environment, at least for aesthetics is pretty tough, just securing financing. Could you maybe speak to what you’re seeing on the macro front in the first quarter? And then now here a little bit into the second quarter, any trends you may point out?
Taylor Harris: Sure. Jimmy. Yes, we agree with the feedback that it sounds like you’re hearing more broadly. The – I put it into a couple of categories. The financing environment is challenging. It is – and we saw this in the second half of last year. We saw it in the first quarter. There’s a segment of the legacy user base, it really just doesn’t have access to financing right now. And we’ve been trying to work with third-parties to unlock that. There are some things that you can do, but not a lot for a certain segment. So financing is tough. Rates are higher even for someone who’s creditworthy. So it’s definitely more challenging there. And – we also are hearing from customers that practice volumes just generally, not just for us, but just practice volumes are sluggish.
And I think that’s probably contributing to the – some lack of confidence in moving forward with capital purchases. So that’s the environment we’re operating in. That is what we had generally expected as we entered the year. I’d say we’re seeing it — the only other thing I’d add is in the body business, the body contouring business, I think it’s particularly tough, and there may be a GLP-1 impact there. So all of that is it was to be expected. It was part of the way we thought about the outlook for the year. And I’d tell you, it takes us back to real — we’re just fortunate to have a product like AviClear that we’re able to be launching right now into what we believe is a less sensitive portion of the customer base in a market it should be less sensitive from a consumer perspective as well.
James Beer: Great. That’s really helpful. And then maybe just touching on the modeling side. like you said, kind of – it seems like it’s still a pretty tough selling environment. For Q2, capital tends to have 1 of its stronger quarters. How should we think about modeling capital into Q2? And what are you sort of assuming for guidance into Q2 and then thereon for capital? Thank you.
Taylor Harris: We are expecting an uptick from Q1 to Q2. We’re not going to give specific guidance on that. But I’d say Q2 should be from a capital perspective, stronger than Q1. Second half of the year, we think will be stronger than the first half of the year. We do have the macro backdrop, but we’re also launching xeo+. We think we’re going to be a bit stronger in terms of the overall field force. So we’ve got some offsets to that pressure. That’s the way we’ve been thinking about them in terms of puts and takes.
James Beer: Great, thanks for the questions.
Operator: [Operator Instructions] The next question is from Nick Sherwood with Maxim Group. Please go ahead.
Nick Sherwood: Hi, good evening. My first question is, what is the runway that you’re seeing for this international expansion? I imagine you’re targeting a lot of high-quality leads, but what is – once you get some of those easier wins with practices that might have more capital on hand. What do you see as the environment or maybe lower quality leads and like their financing potential?
