And that’s being further being added if we take a look at the overall business model, with the overall strength that we’re seeing with the top line as well as the gross margin improvement.
David Westenberg: Very helpful detail there, Paul. Thank you very much. And then can you just remind us about any — the close date last year of Inform just trying to think about the organic revenue growth as we look in the back half of the year. I believe the only acquisition you made in the back half of the year would have been the Fulgent Pharma, if I’m correct. I know this is probably a short disclarity question here.
Paul Kim: Yes. So InformDx, it closed during Q2 of 2022. It was about halfway through the second quarter. When we take a look at the contribution of revenue from the three categories that we have, anatomic pathology, pharma services and precision diagnostics, we see absolute growth in all three of those areas when we compare it against the numbers from last year. But what really excites us is where the acceleration of the business is coming from. So we first started off the year at $240 million of revenues, and we had the contributions from anatomic pathology, which is InformDx and then precision diagnostics, evenly split with about $13 million from pharma services, which added to the $240 million. But as we take a look at the updated guidance now at $260 million, all of that is coming from either precision diagnostics or pharma services, which are very, very lucrative and attractive markets.
And it’s the area that we performed very, very well in where you have sequencing and a large amount of interpretation. So we really like the way that the business is headed as we look out at the end of this year and into 2024.
David Westenberg: Got it. Thank you very much. Just one last question on the gross margin. Can you talk about the different levers? I know you just — you said implementing a new — you’re buying a new sequencer. In terms of carrier screening, for example, which I know you’re outperforming in, there’s a lot of prep work. So can you just run us through all the different levers that you’re thinking about in the next year to really drive those gross margins higher? And that’s my last question. Thank you.
Paul Kim: Yes. So there’s a lot of blocking and tackling that we’re doing in terms of improving policies and attracting higher talent. But the fundamental reason on why we have the gross margin improvement is through automation and the utilization of our technology platform. And I’ll turn it over to Ming, who can reiterate the differentiation that we have in the utilization of our technology compared to other companies.
Ming Hsieh: Thanks, Paul. But David bottom line is how could we use the technology to handle more fruitful, that’s really the areas we put a lot of focus. We continue to apply the technology, which we closed AI, that’s the areas that we started since 1990s. But since the past 30 years — over 30 years, definitely AI has made the tremendous impact in our life. We have been riding with this technology with my experience for the past 30 years. We continue seeing that technology to be applied to the — in the diagnostics business, and then we continue to invest and improve the technology.
David Westenberg: Got it. Thank you very much, Ming.
Ming Hsieh: Right.
Operator: Thank you. Next question is coming from Andrew Cooper from Raymond James. Your line is now live.
