Vandana Sriram: Yes. Thanks for the question, Matt. We think it’s really both. On the one hand, the accelerator product has become a really unique offering on its own. So, we think there is a value prop for it that stands on its own. And Masoud mentioned that about 80% of the customers are now repeat customers. So, we feel like that will continue to grow, maybe those growth rates won’t be as high as they are right now. But we think that value crop stands on its own and will continue to have a really important place in our portfolio for many different reasons. On the instrument side, certainly for this quarter, we definitely saw a lot of that CapEx pullback show its way in accelerator. So, in the short-term that might be something that continues for another quarter or two quarters.
But our expectation would be at some point that balances out and as the funding environment eases. We have both models running together well. We are still selling instruments, but we still see accelerator as a really viable franchise.
Masoud Toloue: And Matt, the only other thing I would say is that, when you think of accelerator and you think the value of Samoa and the sensitivity that we offer, when we perform these services, they are margin accretive to the total business. Meaning there is a valuable service that we offer with valuable technology and they are priced as accordingly.
Matt Sykes: Got it. Thanks for that. And then Masoud, just now that we have the Denosumab [ph], had come date for June 10th. There is obviously focus on both safety, but also on Tau levels of detection. What is your expectation for labeling? And if there is p-Tau on the label, is this AD offering sort of the preferred testing platform? Do you believe for Lilly to execute those tests that to need to get that in order to get people into therapy?
Masoud Toloue: So, there is – we don’t have the really good sense of what the label will look like. Obviously, we are very interested to see what the outcome is going to be of that Adcom meeting. I think we are hopeful that results are positive for patients. And having another therapy or therapy option in the market I think is just overall good for patients. But as to the label, we don’t have a sense of what that would look like. From the laboratory or AD, we have been working very closely collaborating with Lilly over the last year, several years and super excited that it resulted in the development of this test.
Matt Sykes: Got it. And just one more from me, just given the manufacturing changes that you have made over the past year and looking at Q1 and the consumables growth, it was quite healthy. Is there still an element of switching over to that new process that might have held some growth back in consumables? And do we see that kind of progressing from a ease of manufacturing and higher throughput through the manufacturing lines as a potential accelerator of consumables?
Masoud Toloue: Yes, it’s a great question. To your point over the last year, we have improved production by 300%. Since we began the transformation and we were able to produce 4 million tests annually, with capacity to ramp. So, we announced all the work that we had done had come and resulted in new assays that we would release in Q1. And so now, we are in the process of customer switching to those new assays. So, we have probably hadn’t done a lot of conversion in Q1. I mean it’s a process switching from an old assay to a new assay. But we expect that conversion to ramp in Q2 and subsequent quarters.
Matt Sykes: Great. Thanks guys.
Masoud Toloue: Thanks Matt.
Operator: Thank you for your question. Please standby for our next question. Please standby. Our next question comes from the line of Kyle Mikson of Canaccord Genuity. Your line is now open.
Kyle Mikson: Hey. Thanks guys. Just finer point on the near-term outlook, just wanted to ask what the 2Q instrument placed in the revenue forecast could be, how you are talking about that relative to 1Q perhaps. And I know we just kind of talked about the consumable rebound, I guess, I mean not even rebound, just like the continued strength pull-through was decent in 1Q, little higher year-over-year, set down from 4Q. But how could all these update this updated skews and new manufacturing kind of effect I guess sequential growth and improvement in consumables in 2Q, just based on what you just said Masoud?
Vandana Sriram: Yes. Thanks for the question, Kyle. I will take a crack at it first. So, you mentioned there is a lot of stuff going on in consumables. That’s certainly a factor as we look at our Q2 as well as the sequencing of revenue for the rest of the year. If you look at our history for the last 3 years, we have generally been about 50-50, 49-51 from a revenue mix perspective, first half versus second half. This year, we think that mix is going to be more like 45% to 47% because of all the factors that you mentioned below. On the consumables side, we are still very or very early in the process of customers switching over to the new assays. So, we think that’s a bit of a longer process and it’s going to take some time to really take hold.
In addition, we have new assets coming out every quarter, but that pace does pick-up in the second half of the year. And that will also contribute to revenue for consumables. On the instrument side, it’s been tough. It’s been a tough environment for all of us. We see the pipeline there, we see the interest, but we still see a lot of time to actually convert to revenue. So, again, we are cautiously optimistic there, but it’s really too soon to call how that shapes up for the second quarter. We have had other instances where, started with a good pipeline, but takes very, very long to convert. So, we are a little bit cautious there on how soon that bounces back.
Kyle Mikson: Okay. That was great Vandana and thanks for that. And then the follow-up on Matt’s question about the Adcom, Eli Lilly Adcom, definitely going to be focused on I guess safety and efficacy. But we don’t know any topics or the questions yet for that meeting. But like are there any read-throughs to Quanterix specifically from like that we should be looking for when that takes place in June? I guess assessing p-Tau base line limited duration dosing with important features of the kind of like the Denosumab. And then in the meantime it looks like Lilly is going to prepare the market for launch post Adcom. Like what does that mean for your kind of diagnostics business in ‘25 and beyond?
