Now we spoke about the goals of achieving 60% as an organization. We’re trending in the right direction, and I feel confident that we’re going to be able to achieve 60%. Now in terms of trying to guide to that this year, we haven’t guided on gross margin in the past. But I think that tells you we should be seeing improvement quarter-over-quarter from how we’re operating as an organization. Seasonality is always an impact for us. It’s a positive impact as each quarter goes on, because of the deductible reset at the start of the year. So we should see higher gross margins as the year goes on. But like I said, we’re trending in the right direction. And as a company, our goal is to achieve the target of 60%.
Kyle Mikson: Okay. Thanks, Kamal. And then, I know, John, it’s kind of early to be talking about the ’24 strategic priorities. But as you evaluate this path of profitability, are you guys hoping to increase the sales force and the territory footprints maybe like early next year? I guess could you just kind of walk through your thoughts on the expansion in the next 12 months to kind of drive that market penetration and the top line growth and everything?
John Aballi: Great. Thanks for the opportunity to go into detail here, Kyle. So when we did a right sizing of the sales force in December of this past year, our logic or rationale at the time was to take a look at each of our territories, and on a per territory basis to see which of them covered at least the cost of the sales rep. Were we breaking even for having a field-based presence in that given territory? That was the question we tried to answer across the board. And for 23 territories, the answer was no. Actually a little bit more than that. What we’ve done now is from a footprint standpoint, but then this also carries into an expansion strategy, is we’ve taken a look at which territories were supplementing at least the cost of the rep.
And we’re maintaining about four to five of them right now. That’s the same number as at the start of the year. And we’re working to grow those territories so that they at least cover the cost of the rep. The idea here is it gives us an empirical approach to expansion where we can really see if it’s the right territory, if it’s the right individual for that area. And it lets us change some of those variables in a more measured, meaningful way. But ultimately, it also lets us have great visibility on the cash required, the expense required to expand. So right now, it’s about $1 million a year that we’re supplementing the territory on a — when you weigh it against the cost of the rep. And so that’s going to be our approach going forward. As we have our expansion territories or growth territories that over time will flip over into a profitable state, then we’ll add a new growth territory.
And that way, it will kind of be self fulfilling and cyclical in that manner. So that’s our approach. Whether that occurs in Q1, I hope so to be honest with you. But we have some — we have some verticals really to figure out there. Again, is it the appropriate territory? What’s the potential relative to the business that we have there? Is it the right individual? We have quite a few things to evaluate and are constantly working with. So as of right now, we feel very comfortable with the 40 that we have. We’ll see when we have some sustained performance in some of those growth territories that flips them over to a profitable state. And then at that point, we’ll add. We will also be very clear in that communication.
Kyle Mikson: Perfect. That was great, John. I’ll leave it there. Thanks, guys. I appreciate the time.
John Aballi: Thanks, Kyle.
Operator: Thank you. Our next questions come from the line of Ross Osborn with Cantor Fitzgerald. Please proceed with your questions.
