But we’re very enthusiastic about the robot. We continue to make progress. We have just – I think we’re doing our next install pretty soon here. So we’re getting a lot more enthusiasm as we start to have broader-based feature sets, which allow us to do more types of compounding, to increase the ROI. So we’re starting to make progress. We’re not exactly where we’d like, but I think the enthusiasm in the pipeline is definitely growing.
Jes Tassan: That makes sense. That’s really helpful. And then I think our follow-up is just hoping to get an update on 340B. I think 2023 was guided to about flat at $30 million of revenue year-over-year. But can you just walk us through the market environment year-to-date headwinds, tailwinds and kind of go-forward expectations, again, on 340B, the split billing solution?
Randall Lipps: Yes. Well, thanks for the question. And actually, 340B, we now approach big providers with the 340B third-party solution or the internal specialty pharmacy 340B option. So you have both options, right? You can either go, for drugs that are still processed as a third party or can be processed through a single contracted site, those most easily run through a 340B process. And for those that don’t, then we say, why don’t you let us spin up an internal 340B, if you will, or specialty pharmacy there. So that’s why we see strong double-digit growth driving in the specialty pharmacy area, the spin-up of these things. And it’s an industry opportunity, not just us. And that’s because the 340B itself has been limited or restricted.
So we don’t see a lot of growth in the 340B, but it does give the opportunity for the internal side of the house of the services that we have to actually grow more significantly or you see in the industry uplift there. So it’s just a different way to obtain the rebates, is through an internal pharmacy than the external third party, and that’s why we’re seeing the growth there.
Jes Tassan: Got it. Thanks, again.
Randall Lipps: Thanks, Jess.
Operator: Your next question comes from the line of David Larsen from BTIG. Your line is live.
David Larsen: Hi. Can you talk a little bit about the XT upgrade process I know you said you’re on the second half of that, but any more detail around that would be great. And then I would think that once you get through this whole XT process, there would be an entirely new sort of version of the cabinets created since technology never sits still. Is that correct or not? Thanks for.
Randall Lipps: Yes. Thanks for the question, Dave. We’re really excited about the point-of-care area, right? It’s still a large portion of the business and we’re absolutely focused on not just delivering the second half of the XT upgrades, but also competitive conversions, right? We continue to have those, although that market slowed down a little bit with hospitals not as willing to swap out during this environment, or it takes extra resources to do that. But we continue to get expansion. So over the time, over the last few years, our market footprint of point of care has grown tremendously, right? It’s really large. So obviously, in the next generation of an upgrade cycle, will be quite significant for the company. But we just don’t want to upgrade the technology from a product side.
We are already investing and rolled out and will continue to roll out services around the point-of-care systems to drive outcomes. This is the part that we think is really exciting. Just like the specialty services all have ROIs and have outcomes that really excite and continue to see the growth there. We want to make that story the same for point of care, so that we’re not just simply stuck in product cycles, but also in these services that allow the product cycles to deliver more. And so you’re absolutely right. We don’t do any pre-announcements on those products, but that certainly is the strategy. And we see the point of care market is very large, and we’re extremely well positioned to monetize and optimize that market and really create a whole new go-to-market as we move forward with Advanced Services.
David Larsen: Okay. And then just one more quick one. Can you talk a little bit about your process of estimating bookings, your process of setting guidance, do you maintain a CRM, like salesforce.com, where each of your salespeople provide data in terms of like the deals they’re working on, the timing to close, the odds of the close, rates, can you just provide some color into how you actually collect your visibility and how that drives your guidance?
Nchacha Etta: Our sales team, they do a very – they have a very robust approach of forecasting our bookings throughout the year. And we manage this on a quarterly basis. They see very stringent process that we go through to ensure that we are engaging with our customers as we forecast our bookings for the year. So we continue to revise and upgrade how we forecast and how we specifically forecast of our booking. And we will see some additional changes and improvements as we go forward.
David Larsen: Okay. Thank you.
Kathleen Nemeth: Thanks. Next question?
Operator: Your next question comes from the line of Matt Hewitt from Craig-Hallum. Your line is live.
Jack Siedow: Hi. This is Jack on for Matt. When looking at the $4 million the CMS payment to hospitals. Have you spoken to customers that will be receiving some of those funds? And are they expecting to buy equipment and services when they receive those funds?
Randall Lipps: I haven’t got any update on that. In fact, we just checked before this call about what we thought would happen on there and it’s kind of crickets. So hopefully, we’ll hear more about that soon because it was supposed to be around the beginning of the year at our last insight. And I think it certainly will – some way had some impact on hospital spending for sure.
