Kevin Waters: Yeah. So I’ll start. This is Kevin. Maybe I’ll turn it over to Sham. And, Sham did mention in his remarks, we did see in the first quarter, for the first time, multiple strategic IDNs use corporate funds to complete AquaBeam purchases in the first quarter. And while this is positive, these deals were already in our targeted sales pipeline. They’re well progressed in the funnel where in prior quarters, regional or local funds were used and it is good to see this momentum and just the dynamics of that team, I would argue that some of these deals wouldn’t have gone over the finish line without the incremental adds that we had in the strategic accounts team and their relationships with these administrators at IDN. So with that, maybe I’ll turn it over to Sham to talk a little bit about the team dynamics there.
Sham Shiblaq : Sure. So I think there’s a couple of things to think about when you think about IDN relationships and programmatic success. Every IDN actually has a different goal. And so it’s really important that when you are starting to get to the point where we are as a company, we’re not working with one or two hospitals in IDN, we have significant footprint now in some of these IDNs that we understand what their goals are as a hospital network and that we’re building programs to achieve those goals for each hospital. In the past few years, we are really focused on starting to build our footprint. And that is not something that companies need to necessarily focus on when you’re just trying to show that you have a great program and there’s the clinical benefit of the procedure.
So for our strategic accounts team, they have a bifurcated kind of goal. One is to obviously get new hospitals to acquire the technology, but number two is to make sure those programs are very successful. So the IDN wants to continue to buy more robots in the future. What we talked about in our prepared remarks was the first time we really saw in Q1 of ’24, that we sell corporate IDNs allocating funds at the corporate level to buy robots for PROCEPT. In the past, yes, we had contracts with the IDNs but they would let the local funds or regional funds to be used. And so this shift is obviously showing that our IDN team is starting to make a difference in understanding the needs of the corporate IDNs and hopefully, long term, that will serve us well.
Richard Samuel Newitter : Okay. Thank you. That’s helpful color. And maybe just on the ASC. I guess physicians and checks we’ve done and the position we’ve spoken to have suggested anywhere from 15% to as much as 30% of their out of their TURP or receptive volumes being performed in the ASC, some have actually brought their ASC volumes back to the hospital outpatient just so they could use Aquablation. But I’m just curious, could you reconcile kind of that anecdotal feedback on the ASC kind of resective procedure opportunity and how that stacks up with what you see of the procedures being performed in the ASC? What’s this open up to you?
Kevin Waters : Yes. Thanks, Richard. This is Kevin. The last data we publicly shared that was from 2019, which suggested that about 10% of the 300,000 resective procedures were performed in the ASC. We haven’t updated that number, but just anecdotally, I think we hear the same thing that you hear that it would surprise us that if that number has increased from 2019. But the last data we have is that 10% of resective procedures were in ASC.
Reza Zadno : Yes. I would say that there’s — naturally, we’ve all read that the hospital trends long-term in the sense of wanting more procedures to move to an ASC setting. We’re aware of that. And we believe, like I said, long term, we have a great opportunity to serve that market as well. But the majority of our procedures continue to be in the hospitals, the vast majority are in the hospital setting, the resective surgery. And when we look at ASCs, we look at that as a market expansion opportunity for us. There are millions of men that are on pharmaceuticals that fail pharmaceuticals that choose not to go to the hospital setting and that’s what we’re focused on in expanding the market.
Operator: Our next question comes from Brandon Vazquez of William Blair.
Brandon Vazquez : I just want to focus first on systems. You had a great quarter on the systems there. Just maybe talk a little bit about what kind of visibility and comfort you have into that ramping through the year because system placements still need to kind of ramp through the year as we move forward.
Kevin Waters : Yes, thanks, good to speak with you. So our guidance is really unchanged in terms of cadence where we still do expect 45% of our systems to be sold in the first half of the year, which is unchanged. But I think you are alluding to the fact that that would require kind of a large number of systems sold in the fourth quarter and obviously we have a funnel that we believe supports that. But when I look specifically at the exit of Q4, what our guidance would imply, it does suggest somewhere kind of in the 30% to 35% unit growth of systems in Q4 of ‘24 over ‘23, which if you look at that in terms of our sales capacity, we’re going to have about 30% to 35% more fully productive sales reps as well. So not only do we believe we have the funnel that kind of supports that robust Q4, but we also have the sales capacity and we do believe we have kind of a high degree of visibility into that.
So while it may appear to be kind of a hockey stick on the surface, we think it’s in line with our historical performance and in line with our productivity metrics and in line with what we see in the funnel.
Brandon Vazquez : Okay. And then on the IDN side, I think you guys mentioned it was about 17 IDNs that you’re initially focused with this new strategic team. Can you just talk to us a little bit about you have better data obviously on specific account adoption versus the whole market? Are these 17 high-volume IDNs that are maybe in the first quartile of adoption still and your opportunity here is to make ablation standard of care or are these some of the accounts? I know in the past you’ve talked about some accounts that have switched already basically to 100% ablation. Where on the adoption curve do these kinds of 17 accounts fall? Just to get a sense of what the opportunity is as you focus on them more?
