Brian McKeon: Yeah. The performance in the quarter just to reinforce some of the metrics I shared, and then Jay can expand on this was our execution dimensions were very much in line with what we expected. The difference here was we are planning for flattening clinical visit trends and they were down 2% in the quarter. We did see some softening through the quarter and it was relatively more on the wellness side. So I think that that was – that’s a smaller part of the overall testing volume. But that is something that we did see relative impacts, so that that was – it was the visit trend that was different than we had been planning for or hoping for. And the execution metrics held up well and that enabled us to deliver solid growth on a – in terms of the CAG recurring revenues.
Jay Mazelsky : Yeah, couple additional about comments for – to cover. We always start with PIM customer demand and for what we’ve seen in the talking with our customers that this good end-market demand certainly pet owners continue to prioritize and against the whole other spending categories, they’re bringing their bring their pets to the veterinarian and making sure that they get the care that they need. The other piece that we’ve been spending time, looking at is just overall employment levels within the practice and we think that that has increased and that’s in a good position. We don’t necessarily have insights in terms of how many hours they may be working to put in terms of just availability of staff within practices we think that’s been reasonably good shape.
We have done some qualitative surveying. There is some additional churn within practices if that goes from practice to practice, that is obviously something that will work its way through the system. Just picking up what Brian mentioned against not to not wellness or sick patient visits versus the wellness visits, if the diagnostics usage on the non-wellness side is higher, it’s much higher at 70% or so I think we map that out as part of the Investor Day. And so, that’s, I think an important tailwind for the business. The other thing that I would point out is the, relative frequency and utilization of diagnostics continues to grow within the practice we’ve seen that in the US, we think that’s a very positive trend. Obviously, veterinarians see the importance of core medical services and to be able to treat a patient they very often have done the first test.
So it’s great to see that those trends have held up and continue to grow and we think that’s a strong positive.
Nathan Rich: And if I could just ask on margins, I guess, if you see sort of the visit pressure persist, just the ability to kind of grow margins in line with the kind of 50 to 100 basis point kind of constant currency range into next year, if you do see an overall kind of softer top-line environment, just, I’m curious on kind of how much kind of leverage – how much of the margin expansion is dependent on that, that top-line growth? Thank you.
Jay Mazelsky : I think we’ve been consistently demonstrating our ability to perform well in that front in despite some of the headwinds that we’ve seen this year. So I think our updated outlook for margins if you take out the, if you normalize for the customer credit that we’ve highlighted, as well as the lapping of R&D and foreign exchange, we’re most recent guidance is to be 80 to 100 BPS above the prior year. And that’s despite some of the headwinds that we’ve seen this year. So, we’ve consistently demonstrated the ability to deliver to business model, which we have a number of favorable dynamics that support that we highlighted the strong growth in the software business as it is a positive driver force as we grow and I think we’ve got investments that we can leverage. And we’ve got new innovation coming to market. So a number of factors that I think will help us and positions well to keep building on that’s strong margin delivery trends.
Nathan Rich: Thank you.
Operator: [Operator Instructions] We will move next to Erin Wright with Morgan Stanley. Please go ahead.
Erin Wright: Hey, thanks. Has there been any early testing on the new platform you plan to launch at BMX? And if so, like what’s the initial feedback and on the second platform technology, is that on track as we’ll both roll out in 2024 or will both have material contributions in 2024? Thanks.
Jay Mazelsky : Yes. Good morning, Erin. I am not going to talk about the new platform other than just to reiterate we are looking forward is just a couple months away from BMX and we can talk more about that. More generally speaking the way the new product development process works is, you develop prototypes, you put it in hands of customers, they provide feedback and it goes through an additive process, you get ready to go to marketplace. So we’re excited. We think it’s a – we think it’s a platform that will make will have the right clinical and business contribution, but really I can’t go into additional details beyond that.
Erin Wright: Okay. And, thinking about – I know this is kind of a broader question, just thinking about the competitive landscape and you have this unique positioning now seeing lessened comfort than your closest peers in both point-of-care and reference lab, particularly in the US. I guess, can you talk a little bit more about your ability to take share? Could this accelerate particularly with also new innovation, but with any disruption associated with the other models of your peers? And how are you capitalizing on this now? And how are you taking advantage of maybe the competitive landscape where it stands today?
Jay Mazelsky : Yeah, so, a couple maybe high level points and I’ll get more specific. Our strategic and innovation approach is really to bring an integrated solution set to the marketplace. So that’s in clinic, as well as reference lab, and the connectivity and workflow optimization provided by our software suite, we think is highly differentiated. It supports what the practices are trying to accomplish in terms of improved standards of care, optimizations of staff productivity, client communications, all of those important things and we continue to innovate through menu expansion and then more specifically, new platforms. And new platforms, it’s an important component of our business model in terms of really being able to give our customers reference lab quality testing capability within the practice.
We place it, we tend to place these through marketing programs. IDEXX360 being the primary one customers are able to get that get that placement then you use reference labs or rapid assay or our Software-as-a-Service based PIMS systems, as part of our dollar volume commitment. So there’s a significant multiplier impact when you come out with new innovations. And we just continue to build it through what technology for life philosophy. So we have existing platforms on the marketplace. We will continue to innovate with new slides, for example in chemistry or lots and lots of other examples. We call antigen within the reference labs. So that becomes more valuable clinically over time and customers use more of it as they grow, we grow.
Operator: We’ll move next to Chris Schott with JP Morgan. Your line is open. Please go ahead.
Chris Schott: Great. Thanks so much. Just had two questions for me. I guess, just coming back to the dynamics with the visit trends that we’re seeing versus your expectations, is it possible to tease out how much of what you’re seeing right now is macro versus how much is capacity? So, as I’m showing my hands around, is this a situation where we’re right now seeing some macro pressures and capacity just isn’t getting better relative to where maybe you stood at mid-year or are we also seeing some setbacks on the vet capacity side as well as we think about the updated guidance? And then I just have one follow-up from there.
