But we are seeing some upside opportunities ahead of us into 2024 that I didn’t touch. One of the opportunities, for example, the potential upgrades of our global strategic customer from their Atlas’ to Atlas MAX that currently we didn’t take it into the account. There’s other opportunities like we are entering to some exciting new markets and application. As I mentioned on previous call, we are working with some biggest brands of the world that connecting us with their fulfillers, some of them in China, in Vietnam, in Korea. And we see a big potential to get into new application, a new market segment through it. We already installed few systems at those customers, but now they are testing it and potentially it can be a growth engine.
Again, we didn’t take it into account. So we are looking at 2024 more from a conservative approach and we expect modest growth in revenue and to become profitable in a modest way.
Greg Palm: Okay. Appreciate all that. I will hop back in the queue. Thanks.
Operator: Thank you. The next question we have comes from Brian Drab from William Blair. Please go ahead.
Brian Drab: Hi. Thanks for taking my questions. Ronen, we’ve spoken about this, you and the team have my support and really sorry for everything that you’re going through in this situation. That said, I have to ask some questions here. So on the upgrades, you just mentioned that you’re still hopeful that the large strategic account might upgrade to MAX. Have you learned anything between the last time you spoke to everyone and today that would give you more or less confidence that that is a possibility for 2024?
Ronen Samuel: Yes. So thanks, Brian, again for the supportive messages. And as for our strategic – global strategic customers, there’s limited information that I can share. But I can tell you that only in the last few months, we met several times together, not only about the MAX upgrades. We have very close relationship and we are talking about the plans for next year and even beyond that. The MAX, of course, was evaluated, as I mentioned before, and our strategic – our global strategic, they see the value. We are still waiting for decision – final decision from their perspective. But as I mentioned, we are not counting on it. It can be in 2024, it can be after. So we cannot put it at this stage in the plan. On top of that, of course, we are working in different angle with them.
As I mentioned before, they are going to have the Apollo doing 2024. They’re going to test it. At this stage we’re very excited about the future of the Apollo within their operation, and we believe that 2025 will see multiple Apollo’s within these strategic customers. Overall, the business is doing well. They continue to grow. And in Q3, we install all the systems that we have shipped last year in 2022. So now those systems are ready for fully operational for the peak season. And of course, we’ll see some benefit on the supplies, on the ink from their side. And as I mentioned, we are working on potential expansion. But at this stage, we are not taking it into account in our plans for 2024 any material investment, additional investment in capital from our strategic global account.
Brian Drab: Okay. Thanks for that. And then, can you say anything about what you’ve seen so far in the fourth quarter since October 1 in terms of impressions, system utilization, just to give us a sense for what you’re seeing as far as early signs of the holiday season?
Ronen Samuel: Yes. So, of course, we are monitoring very, very closely now on a daily basis. We actually see a very promising growth both on the ink side and on the impressions across the board. So when we are talking to our customers, they are very optimistic about Q4. They’re ordering the supplies and we can see the traction on the impression, of course, the coming few weeks are critical and we’ll know more. This, of course, peak season is very, very important to many of our customers and also to new customers that now are in the sales cycle and waiting to take the decision if to acquire additional systems next year after the peak season. But all in all, in terms of impressions, it looks very good. The headwind that we still see in Q4, very visible, is on capital acquisition, still very tough environment out there, sales cycle getting longer, customers looking for financing solution and payment terms, and some of them delaying their decision.
Brian Drab: Okay. Thank you very much. Good luck.
Ronen Samuel: Thank you. Thank you.
Operator: Thank you. The next question we have comes from Tavy Rosner from Barclays. Please go ahead.
Tavy Rosner: Hi. Good afternoon. Thanks for taking my questions. Ronen, you mentioned potentially expanding to new applications. Can you give us an example of the type of new applications that you can see out there and that has coped to turn into meaningful revenues down the road?
Ronen Samuel: Thanks, Tavy. At this stage, I prefer not to disclose it because it’s a big potential application for us. It’s a technical area. I can say that it’s in the sports market, but I cannot say more than that. What I can tell you that we are working with some of the biggest brands of the world, with them and their direct fulfiller to change the way they are producing some of the technical stuff that they are doing, leveraging our technology, and we are talking here on the big potential if we will be able to materialize it. There’s some technology innovation that we already brought to the table and we are still continue to developing it. It looks promising. This is why I’m mentioning it today. But at this stage, I don’t want to relate to specific application and the specific numbers. Hopefully in the next call that we’ll be able to provide a bit more details.
Tavy Rosner: Okay, thanks. And then on the operating leverage, like looking into 2024, do you expect to further reduce the absolute OpEx level or just growing revenues, and as a result, we’ll return to profitable growth?
Ronen Samuel: So at this stage, of course, as I mentioned we are planning to have a modest growth of revenues. But we are taking steps on enhancing our operating efficiency and operating model moving forward. We understand that the dynamic out there is from our perspective is still tough, and we will continue to adjust our operating efficiencies and operating model accordingly to be profitable for the entire year of 2024. As a reminder, there is a seasonality and of course, Q1 is the lowest quarter, while H2 is the strongest quarter of the year, both in terms of growth, revenues and profitability. Lauri, do you want to add anything on that?
Lauri Hanover: No. I think you covered it. Thank you.
Tavy Rosner: Great. Thank you guys, and stay safe.
Ronen Samuel: Thank you.
