Thinking about Q4, Q4 is actually kind of the opposite of systems in the sense that most of our customers tend to shut down mid-December in terms of receiving new material. So it tends to be a little bit of a lighter quarter on a relative basis. So I’d say that and some kind of more transient timing issues in terms of shipments are really driving what we expect to see in Q4. I think as we go forward from there, it’s really — we do continue to expect to see that pull-through number move up. We’re working very hard and Rob talked about Project Rapid, kind of move-in customers not only through validation but also in the routine use of those systems and pulling through the consumables. And we’ve got kind of a full court press on that front, and that gives us confidence that we’ll see that sequential growth pick up again in 2024.
Daniel Arias: Okay. Okay. If I could sneak one more in here just on gross margins. Do you think the improvement that you see over the next couple of quarters, I think it’s something you’re looking for? Is that going to be driven more by the product side or the services side. And then on gross margin positivity for next year, is the latest thought that you sort of — you cross over to positivity at the end of the year to exit 2024? Or could that happen sooner?
Sean Wirtjes: Yes. So I expect improvement to be both product and services. We talked a little bit about productivity and service, there was an improvement — pretty good improvement this quarter in service. And I think as I think everything kind of comes from system placements. And as we’re getting back on a trajectory now where placements are stepping up, it’s going to drive more validation opportunities for us. And the other one that I never lose sight of is service contracts, almost every month now we have new customers moving into a situation where they need to start buying service contracts from us. So that — we expect those two things to drive growth in services. And then I talked in the call a bit about products across both systems and consumables, but consumables, in particular, is an area where we’re investing a lot of time and energy.
As you know, we did some things on the line over the past couple of quarters that we expect to yield benefits starting this quarter. So I’d expect that to come — the improvement to come from both areas within the business. I think as you look at what I expect to happen over the coming quarters on margin, I mean, thinking about Q4 we improved 11 percentage points from Q2 to Q3. That’s probably not a bad way to think about what we expect to happen based on our outlook at this point. We’ve also talked about the fact that a couple more system placements getting us up into high single digits could get us to positivity, and I think that’s still true. So give you a couple of points to triangulate on there relative to Q4 margin expectations. And then if we assume just for argument’s sake, our typical kind of quarterly trend within a year, we typically step down in placements from Q4 to Q1.
So that obviously put some negative pressure on margins. So we’ll talk about guidance when we announce Q4. But I would expect that we’ll see revenue step down placements typically step down in Q1, unless we see some other things happening, and we’ll talk more about that when we give guidance. But if we assume the normal trend, I’d expect that you’d be — you’d probably be negative in Q1. From there on out, it really depends on the ramp on placements and business activity. So latter part of the year is more likely. I think could we get there kind of middle of the year possibly. But we’ll give you more color on that when we’re ready to give you guidance for next year.
Daniel Arias: Yes. Okay. I can work with that. Thanks so much guys.
Operator: Steven Mah with TD Cowen. Your line is open.
