Kyle Mikson: Perfect. One more before I hop off. The — on just on the P&L, and I guess as you kind of break out revenue, you guys have a lot of one-time items if you parse out those out, you know, product revenue was a little bit softer than service. Service was quite strong. Product has the macro headwinds in there, but instruments declined a lot year-over-year this quarter, but it is down, I think, 37% year-to-date. So, that that’s not just due to the recent CapEx constraints. Maybe, the — I guess why I mean, recognizing that overall revenue has been solid and you have this program going, why has product revenue been relatively soft in particular the instruments recently? And then for how much longer would you rely on kind of the service and accelerated revenue to drive growth?
Masoud Toloue: Yes. Maybe I’ll start with that and then, Vandana, if you have additional color. Well, first, first, I would say that we do think that some of the instrument softness at least more recently, it’s been, CapEx constraint, CapEx related. And that has transferred to our Accelerator program where people can do services. I’d say that, what you saw this year with our redevelopment program was really building a platform. I think if you think back, I’ll say four or five quarters, when we announced the program and we built that quality wall, we added — make sure things are going up the door. We’re going to be — things are going to be scalable at the highest level of quality. And so throughout the year, there’s always going to be — there’s always going to be a year of focus on our products and getting them, the highest level to customers.
So, some back and forth. But overall, the consumables are going out the doors of our customers, the utility and usage on a per platform basis is good. And as you could see a lot of folks want to come and use our program — our Accelerator program, to run these trials. So, we don’t see any softening on demand and desire, using the Simoa platform, and nor do we see it in the area that we’re in.
Vandana Sriram: Yes, I’d just add, within product revenue, if you’re combining instruments and consumables, consumables are actually up 63% year-over-year and up 7% sequentially. So, we’re very pleased with the momentum we’re seeing on consumables. Some of this was a catch-up on demand as we streamlined our processes. Instruments, as you pointed out, we continue to struggle with the overhang of the macro. We saw a little bit of sequential improvement this quarter. We were up about 5%, one extra instrument. But we do expect– as this overhand one instruments continues, we do expect to continue to see volume comes through the Accelerator, which is helping to soften and balance that out for us.
Kyle Mikson: Okay. And Vandana what was the catch up for consumables? That was like super helpful. Catch up is if you can quantify that, we’re getting any questions about that too? Thanks.
Vandana Sriram: Yes, I’m not sure we can quantify it in dollar terms, but if you just look at our sequential improvement, we’ve had about $15.2 million last quarter. We went up about $1 million this quarter. All of these have a little bit of just catching up on pent up demand. Our team is now at a point where we are mostly caught up with orders that we couldn’t fulfill and we’re now kind of back on a steady state.
Kyle Mikson: Awesome. Okay. Well, thanks a lot guys. Appreciate the time.
Masoud Toloue: Thanks, Kyle.
Operator: Thank you. Our next question comes from Matthew Sykes with Goldman Sachs. Please go ahead.
Jake Allen: Hi, this is Jake Allen on for Matt Sykes. Thank you for taking our questions. I’ll ask both of my questions upfront. First, could you give us an update into the timing of FDA filing and approval for loosen AD and the IVD pathway for a broader menu of biomarker tests? And then additionally, how should we be thinking about the longer term gross margin profile for the business given the progress that you have made on margin expansion, which is trended ahead of expectations? Thank you.
Masoud Toloue: Hey, Jake. So, I’ll take your first question. The FDA — I mean, we’ve always said you know, our strategy, as an organization is to ensure that we’re getting these tests out there, as early in as fast as we can. And so that mechanism has been through our, CALIA, CAP certified laboratory here in Boston. And so, that’s the start. We’ve also believed that these tests, should also go through FDA approval and our plan is to do that within next several quarters to make sure we have a submission on our 217 to the FDA. And then in terms of timing, that can take some time. Of course, depends on the agency. But in the meantime, we think, getting testing done through the CAP CALIA lab is going to be important.
Vandana Sriram: Yes. And on gross margins, let me address near-term expectations and then I’ll talk a little bit about the longer term as well. Near-term, I’d say our gross margin performance this quarter exceeded by the expected we would be, we had signals to an early mid-40s number for the quarter, and we did much better than that, partly because of volume, partly because of our improvements. We see a similar trend going into the fourth quarter, but we do expect some amount of margin headwind as we implement all of our production changes. Longer term, however, we still — we’ve previously guided to wanting to accomplish margins in the 60s, in the early 60s, We continue to work towards that. There’s obviously a lot of factors that will impact that, product mix being a significant part of that as well as timing of how quickly some of our production processes start to spin out the new assays.
Jake Allen: Thank you guys and congrats on the continued progress.
Masoud Toloue: Thanks, Jake.
Operator: Thank you. Our next question is from Dan Brennan with Cowen. Your line is now open.
Dan Brennan: Hey, good morning. Thank you for taking the questions. Maybe the first one just on the guidance. Just you’ve had some really good success here year-to-date. Just wondering on the fourth quarter kind of implied guide, it looks like kind of looks very conservative in light of kind of what you’ve done year-to-date compared to what you did in 2022. So, I’m just wondering, can you give us a little color on how should how should we be thinking about that fourth quarter guide? And then, if we cycle past the fourth quarter, are we still thinking double-digit growth expectation for 2024 or just any early read there?
Vandana Sriram: Yes, thanks for the question, Dan. So, for the fourth quarter, as Masoud and I mentioned earlier, we are going to be hyper-focused on implementing the last stages of our transformation, standing up our second production line, and having assays on the shelf for 2024. So, with that in mind, that’s going to impact the velocity at which our consumables go out. On the other hand, for instruments, you still have the macro overhang that others have talked about, which, is unpredictable and hard for us to get good line of sight on. So, keeping both in mind, also keeping in fact that the fourth quarter has less working days, which impacts the services businesses, we basically try to balance out our guide to a reasonable number.
