Terry Lauver: Sure. Thanks, Jeremy and thanks, Danielle. The trends as Kevin referenced that we see in basal in terms of uptake and intention to prescribe from the physicians mirror what we’ve seen in other segments of the marketplace And the coverage has certainly a big driver of that, We track coverage very closely for Dexcom for the industry. And in basal as with the rest of the market, Dexcom continues to be the most covered CGM with the lowest out-of-pocket copay. We also have the benefit of being out in front of the payers and the healthcare providers with the mobile study demonstrating the benefit and the outcomes that Dexcom drives for this population. So we see a nice trajectory I think in line with what we would expect and we expect that to continue.
Danielle Antalffy: Thank you.
Operator: Our next question comes from Matt Taylor with Jefferies. Please go ahead.
Matt Taylor: Hey, thanks for taking the question and congrats on the results. I guess, I just wanted to ask you, Kevin you talked a bit more here about the combination therapy or benefit that CGM’s fee with GLP-1s. And I was wondering if you had thought about partnering with the pharma companies, or maybe running studies to show that over time. There is a benefit to using CGM with the drug. Things like that that might give investors even more confidence longer terms in the future of CGM in a good world.
Kevin Sayer : Well, certainly, we think about partnering with the drug companies, but they’re doing so well. Right now, they’re very busy. We do have relationships them and have had discussions. With respect to studies we certainly talk about some of those internally. We saw clinical evidence over at the EASD Meeting recently where that was a large topic of discussion that the team brought back and we’re very aware of studies coming out over the first half of 2024 that are going to show some of these data for the use of these combo of these new drugs and CGM in combination and how that works for people. So we know there’s evidence coming in investigator initiated studies. And we’re looking at some of our own right now. I think today will continue to support it.
Matt Taylor: Great. Thank you very much.
Operator: Our next question comes from Matthew O’Brien with Piper Sandler. Please go ahead.
Matthew O’Brien: Good afternoon. Thanks for taking the question. Can you maybe Jereme you mentioned this, but you talk about the G7 integration that’s upcoming here in the next few weeks. Is that is that literally sometime in November we’ll start to see that? And then, just talk about what that’s going to do in terms of trying to access new patients but also converting existing G6 users over to G7. Any kind of disruption that that could cause in Q4 for then early next year? Thanks.
Kevin Sayer : Yeah. Hey Matt. We have Jake here right now who’s familiar with. So Jake, what do you think?
Jake Leach : Yeah, sure. So, we are very excited about transitioning our G6 AID users over to G7 once those pump partners have compatibility. That’s coming very rapidly. And we really think it’s going to be important for those users to be able to access the benefits of G7. It’s the most accurate sensor. So having that driving those AID systems, we’re really looking forward to seeing that out in the marketplace. No real disruption. Those users will basically just switch over for tandem at the firmware update to the pumps and they’ll just switch over to G6 or to G7 once they get their G6 supplies are utilized, and they get the new prescription for G7. So, very much looking forward to that product be in the field.
Matthew O’Brien: Thank you.
Operator: Our next question comes from Matthew Blackman with Stifel. Please go ahead.
Matthew Blackman: Good afternoon, everybody. Thanks for taking my question. So we did a big CDM survey last month and one of the most interesting takeaways were very positive early expectations for the non-insulin opportunity. Docs expecting peak penetration over time so to approach the 50 plus percent range and with a pretty steep adoption curve. So it really does seems so much similar to the type 2 intensive roll out. Just hoping for any color on how that tracks versus your expectations for non-insulin assuming some reimbursement over time? Just any color there would be helpful. Thanks.
Kevin Sayer : You know what? I’ll take that one. And I appreciate the question and that’s long been our view. And in fact, one of the things I tell the guys here frequently is, well, it took us many years to build the intensive insulin marketing and get this technology adopted rapidly. I don’t believe the curve is going to be near that long in this type two world. Once people start using this product and we gear an experience towards what will be meaningful to them, because what is meaningful to them is different than the ones meaningful to our current patients again driven by the performance of our product, and they have accurate data. But once we get an experience that enhances their lives with respect to the performance of their medications for what exercise does, what they’re various nutrition does in their lives and can add other insights from other sensors we think we can create a tremendous healthcare experience in this market.
And we do think we can ultimately push towards reimbursement and possibly we encouraged to have a new product category, altogether for those individuals. We are pretty thrilled about it. I think it’s going to be a great, great opportunity.
Jereme Sylvain: Yeah. And Matt it’s and thank you for that study. Obviously, we saw it as well. In terms of timing, I think one of the things that our obligation as a management team is to make sure as we start to see it as we launch products that are geared to this population, we keep you in line with what we see. So we can have a collective understanding about where that market is going over time. So be assured as we start to get more line of sight into and obviously, you can tell we’re very bullish on the opportunity. We’ll make sure we communicate that as quarters proceed.
Matthew Blackman: Thank you. Appreciate it everybody.
Operator: Our next question comes from Joanne Wuensch with Citibank. Please go ahead.
Joanne Wuensch: Thank you very much for taking the question and let me also say great quarter. One of the things that really stuck out to me this quarter was margins and operating margins, of course that you were tied but even your SG&A was well contained, does this create a new – I don’t know, go forward rate? Or how to how do I think about this? Because that’s for, that’s quite nice.
Kevin Sayer : Yeah, thanks for that question. I’ll take the, the portion on gross margin and then Jereme can talk about operating margin. So, with gross margin, we’re really thrilled with the results this quarter. It’s really a testament to how well our operations teams are executing across both G6 and G7. Our yields on the G7 scale up were a little ahead of where we planned which is a fantastic thing to in place to be. As we look at the transition from the AID patients from G6 to G7, one of the things that is implied in our guide there for gross margin for the year and into next year as we look in the long range, we are going to be switching those patients over G7, which G7 today is at a slightly lower gross margin just based on the where it is and its product life cycle.
G6 is a higher margin product today. Over time, as we do switch our base all over to G7 and continue to scale that product, we have a very good path to getting to lower costs than G6 on that over time. But what we’re trying to be on that guidance transparent around the margin – gross margin for the product just as we do that transition.
