Joydeep Goswami: Picking up on your other questions, first of all, in terms of margins and the implied long term growth in mid-teens, look, the long term growth in mid-teens – by the way, our expectations on that have not changed and that, as you know, underpinned on two things. One, a large and growing market that NGS is still under penetrated in and the ability then by – through our innovations addressing the core needs of that market for NGS and Illumina to take an ever growing share. And that then manifests itself in the sequencing volume growth along the three dimensions I had mentioned earlier, first around ever increasing number of samples, again, more cohorts and things like spatial and single cell really driving more of that.
The increasing number of analyses per sample. So again, that’s really being driven by NGS being able to handle more of the multiomics side of the questions that our customers are asking. And lastly, just the higher sequencing intensity, right? So as you move towards larger panels, as you do more things in liquid biopsy, or things like MRD. So all those remain intact. I think where we are really looking for in the next year or so, as X kind of comes online and enables a lot of these moves into things that we talked about, how quickly does that ramp take place? But in the long term, nothing of what we had guided to really has changed in our mind, and we are looking forward to seeing how the X kind of evolves us down that path. You had asked two other questions.
So one was around – the X and the revenue growth on the instrument side not being that high. As I mentioned, right, so we are very pleased that we were able to deliver on the X and ramp up our supply much faster than expected. I think it’s a good thing in the long run. What offset that higher number of Xs was two things that I mentioned earlier. So, one, we did see on the China side that we did have a lower than expected number of mid-throughput and low throughput instruments. And in general, overall, given some of the lengthening of the purchasing cycles, we did see a lower than expected mid-throughput and low throughput instrument sales across the world. Now, unlike as in China where competitive intensity was a factor, in the rest of the world, we actually did not see our win rate go down.
We actually saw it climb a little bit in Q2. Also, with respect to pricing, we track this very closely, right? So in China, yes, we are being very surgical about when to use price and given the type of customer. But we did see a price decline overall in China. In the rest of the world, our price actually remains on track to where we expected it to be. And we’re proceeding along what we wanted to do with – using price as a means to encourage faster adoption of our technologies.
Operator: And our next question is from Sung Ji Nam with Scotiabank.
Sung Ji Nam: Just a clarification question in terms of the cautious purchasing behavior, is that more for your academic customers? Or is it also across clinical as well? And then sorry if I missed it, but what percentage, I guess, of the consumable delay in purchases is attributable to the launch of the higher density, the 25B, and kind of waiting for the better economics in terms of sequencing?
Joydeep Goswami: The cautious purchasing behavior, again, broadly, ex of China is across both academic and clinical segments, right? The reasons are slightly different. I think a lot of our clinical customers are not profit making companies. So they are managing their cash as you would expect them to. And while they continue to have sequencing at their core, we have seen that their purchasing intensity has come off less quickly than we had expected it to. In terms of your second question on how much of a delay is there for 25B, I don’t think there’s a delay in 25B. So what I was trying to articulate is, the reset in guidance for the whole year, about 25% of that came from the impact from China, the other 75%, about 50% of that 75% really came down to this impact on high throughput consumables due to the transition on X.
So that includes, as I said, more transition on the 6k faster and then a little bit of a delay, given some of the issues I had mentioned in Q2 that we’re already deploying solutions in the field. There’s a little bit of delay that is that is flowing through in 2023.
Operator: And we have a question from Rachel Vatnsdal with J.P. Morgan.
Rachel Vatnsdal: First up on guidance, you cut revenue growth by 750 basis points at the midpoint for the year. You’ve walked through a few of the moving pieces between more cautious CapEx environment in China and then some of these lower consumables as customers are transitioning to the new platform. So can you just give us a more granular breakdown from that 750 basis point cut? How is it really broken out across those three areas? As a follow up, I just want to follow up on some of the earlier comments on China, just mainly relating to some of these stimulus packages. We’ve heard that there could potentially be another tranche of stimulus in 4Q. So what are you hearing regarding stimulus packages? I know you guys weren’t seeing much of the benefit in 1Q, but did you see anything in 2Q? And then how is stimulus contemplated in guidance for the back half of the year?
