Unidentified Analyst: This is Kevin [ph] on for Vijay. Congrats on the quarter, 5% on top of a tough comp last year is impressive. Just on your organic revenue guide range, it looks like it’s tightening versus being raised, given performance in the quarter, why not raise guidance? and was this quarter performance above your internal expectations?
Karleen Oberton: Yes. I would just say the impact on the full year guidance is primarily related to currency, if you actually look at the midpoint of this guide versus our prior guide on a constant currency basis, it’s up slightly. So we really view the performance in this quarter a lot of to tighten the range as you indicated really hone in and delivering within that range.
Steve MacMillan: No need to get too far ahead of ourselves. Great.
Operator: We’ll take a question from Puneet Souda with Leerink Partners.
Puneet Souda: Steve First one, if I could touch on the Genius digital cytology system. I mean you’ve had that in the U.S. market for — correct me, for a quarter or so. Just, can you provide a feedback on sort of what are you hearing from the early folks in the field? And do you expect the international adoption of this sort of playing out similarly within the U.S.? And are you hearing anything in terms of the pushback in terms of the overall throughput of the system?
Karleen Oberton: Yes. Let me kick off in that. Yes, it was just recently approved in the U.S. and I would say that we’re really partnering with our lab customers on implementing and integrating into the workflow, so that’s what we’re focused on really more of a successful integration into the lab workflow at this point. So minimal contribution in ’24 from the U.S. approval. But I think the feedback here, early days, there’s a lot of excitement of what this can do in what we’ve talked about in a labor-constrained environment. And we think those will be really well received.
Puneet Souda: Got it. And a broader question maybe for Steve. I mean when you look at the overall competitive landscape, Steve, there’s another larger peer who’s in the point-of-care testing side but they pointed out 40% growth in [Strep A] and women’s health — and I know sort of their positioning is different in the market but just wondering sort of how you’re seeing the share shift. We’re also seeing that one of the larger peers that’s in the reference lab side, they still don’t have RSV in the market for their product. So just trying to understand sort of where the opportunity set for Hologic continues to be the most strongest and where you think the share opportunities will be — will continue to be the sort of the strongest going forward?
Steve MacMillan: Yes. It’s funny in so many ways, we don’t focus always as much probably on share as we do on just building our business for our customers and growing the categories. So I think what we continue to feel great about is we’ve got, as you know, more respiratory menu than we’ve ever had. We’ve got the Fusion sidecars, so we’re building a respiratory business. We’re not competing in the point of care business. We are very strong in our reference labs in the hospital systems, the public health labs and just really focused on delivering for those customers. And we believe we’ve got both an economic and workflow advantage as well as, frankly, the sensitivity specificity of a lot of our assays. So continue to feel very good about the growth rates there. And at the end of the day, these are big markets and there will be, I think, several companies going up and others that will be shared donors in the equation.
Operator: And moving on to Casey Woodring with JPMorgan.
Casey Woodring: Great. So just now that we’re halfway through the fiscal year, looking at the top line guidance above the LRP range on an ex COVID and ex selling day basis after the strong quarter, particularly in Diagnostics and Surgical. I’m curious on how you guys are thinking about your fiscal ’25 and if growth could fall on potentially the higher end of the LRP range or even above the range? How should we think about the different moving parts there given the outperformance here so far?
Steve MacMillan: Yes, Casey, you’ll love it. We’re not going anywhere near ’25 guidance at this point in time. So we’ve given the long range we’re delivering for now, investing for the future. But stay tuned for the November call and we’ll get into that. But thank you.
Casey Woodring: All right. And then maybe if I could just follow up here. How do you assess the international opportunity for BV/CV/TV, you mentioned in the prepared that the strong growth you’ve seen in that assay really hasn’t included any international contribution. So maybe help us frame how much growth runway you have on that assay just based on phasing in the international piece.
Steve MacMillan: Yes. We’re earlier stages of really looking at the opportunity there. There are some other things on the markets and frankly, the indication is not necessarily developed. So it’s probably a little more of a market development longer-term opportunity for us internationally as frankly, many of our products have been. So very minimal expectations in the near term internationally. I would tell you though we love the momentum we have, certainly in the United States on it.
Operator: And we have a question from Andrew Brackmann with William Blair.
Andrew Brackmann: Maybe on the international business and margins, in particular, can you maybe just sort of talk to us about some of the levers which exist there to drive future margin expansion for that segment in general? And how much of that is in your control? And I guess as a related follow-up here, if we go back a handful of years, logic has been pretty successful in acquiring distributors, namely international distributors. So I guess, how does that sort of play into that margin expansion opportunity?
Karleen Oberton: Yes. Certainly, that is one of the strategies to improve margins as we go direct and we find that as we go direct, we have better outcomes in those markets with our market development and market access capabilities which — that is something we have invested in over the last 5 years. So that strength that commercial investment at the point of leverage as we move forward as well as we continue to grow the portfolio, specifically surgical — it’s early days but certainly, the surgical portfolio is an accretive product to the overall margin profile for that business. So I think there’ll be multiple drivers as we move forward.
Operator: And our next question will come from Andrew Cooper with Raymond James.
Andrew Cooper: Maybe just first sticking with international. One thing jumps out, just looking at the table at the bottom of the release. The region that seems to have the most outsized growth has really been kind of all other. I think part of that might just be COVID unwinding a little bit but maybe any thoughts there? And then as you think about the international opportunity, can you highlight maybe if it’s a particular product in a particular region or a particular region in general? What areas are you most excited about in terms of that geographic expansion opportunity as we sit here in the start of May ’24.
