David Westenberg: Hi. Thank you for taking the questions, and congrats on the big NovaSeq X placement. So, I want to stick on those 67 placements. Have any of those customers started decommissioning any of their 6000s? Traditionally, you had customers kind of can finish their old projects before starting on the X. Now you have really good consistency between platforms. Has any of that behavior might have changed? Have you seen any maybe subsequent orders on 6000 even though they’ve already switched to X? Just trying to really get a sense on kind of this dynamic. Thank you very much.
Joydeep Goswami: Yeah. So, Dave, on — thanks for the question. I think on the NovaSeq Xs, right, so you’re right, a majority of our customers, they are — they will transition their projects over time, and they are not intending, especially on the clinical side, not intending to decommission their NovaSeq 6000s. For the initial set of customers that we are tracking into from Q1 into Q2, we expect just about 10 to 12 decommissions as those Xs come online. But again, decommissions and replacements will be a smaller fraction. And as we get into the year, we’ll provide more updates in terms of how the 6000 inventory — or, 6000, not inventory, but set of installed base continues to evolve.
Operator: And we will take our next question from Kyle Mikson with Canaccord.
Kyle Mikson: Great. Thanks guys. Thanks for taking the questions and congrats on the launch of the X here. Just one question for me. Historically, the company’s revenue growth has been kind of elevated in the year or two following one of the meaningful signature launches. ’17, ’18 those were strong with 6000. ’19 was a setback, and ’14, ’15 were solid with the HiSeq X. But in ’16, growth was single digit. So, is there anything about the NovaSeq X launch that would lead to a different outcome? Or could Illumina be stuck in this kind of perennial cycle and dependence on new products driving near-term growth? Because now you have kind of more headwinds than you had in the past. I think it would be helpful to understand. Thanks.
Francis deSouza: Yes. Thanks for that question, Kyle. I’ll say — maybe a couple of points I’ll make. One, product cycles are important in our market from a couple of perspectives. One, obviously, there’s an upgrade cycle that they catalyze and that’s typically more quick in the research market. And so historically, it’s been very important in terms of driving near-term revenue growth because our market was primarily a research market. But now as we pointed out last quarter, 50% of our consumables are coming from the clinical market. I’d say that’s one of the drivers of growth, but a big driver of growth is just going to be the growth in the clinical use cases. And so, we talked about the fact that we’re seeing in the clinical markets from our proactive runs that we monitor continued strong growth of our clinical customers just because we’re seeing more uptake of tests like the genetic disease testing segment that’s continuing to grow or more coverage associated with oncology therapy selection or increased NIPT coverage.
And so, as you look forward, a significant driver of growth is going to come more from adoption of sequencing in the clinical market more so necessary than just a straight upgrade cycle.
Joydeep Goswami: I think just one more thing to add, right? Kyle, you will see a little bit of what we traditionally see as customers cut over from one system to the other, right? There will be a little bit of a transition from consumables from one system to the other. So, I don’t think that can totally be avoided. But Francis is right. You see that much more with research customers than clinical customers, right? So that will tend to mitigate.
Operator: Thank you. And that concludes our Q&A session. I will now hand the call back over to Francis deSouza.
Francis deSouza: Thank you for joining us. As we close the call, today is DNA Day, celebrating the 70th anniversary of the discovery of the double helix structure of DNA. This month is also Illumina’s 25th anniversary. Over our history, our team has played an important role in the genomic revolution by delivering breakthrough innovations that dramatically reduce sequencing costs and broaden access to genomics, unlocking new frontiers in biology and healthcare. And yet today, with only 4 million genomes ever sequenced, representing only 0.07% of the population, we are still at the beginning of the genome era. That concludes our call today. We look forward to seeing you at upcoming conferences and other events.
Operator: Thank you. That does conclude today’s conference. We do thank you for your participation. Have an excellent day.
