And so what we’re seeing from that perspective is the ability for surgeons, not just to do one procedure, but do all three procedure with us. So it’s been a point of focus for us to have our surgeons do multiple types of procedures. We tend to keep surgeons that are doing multiple types of procedures with us. And then additionally, what we’re doing is, in our residents and fellows training, we have a focus on educating the next generation to ensure widespread use and adoption of our procedures as well.
Drew Ranieri: Got it. Thanks, Laura. And maybe this is a question for both of you. When – I think you mentioned you had about 83 reps ending in the third quarter. So, that number has been kind of steadily moving down yet sales productivity is moving higher, but can you talk a little bit more about what your expectation is for sales rep productivity and maybe the direct portion of the sales force and how fluttered opportunity can translate eventually into adjusted EBITDA breakeven, and maybe a time, if you’re willing to provide that, Anshul? Thanks.
Laura Francis: So I’ll at least start out with your question here. We’re actually very pleased with the productivity gains that we’ve seen over the last several quarters and it’s a big driver of our operating leverage that you’ve been seeing in our progress towards adjusted EBITDA breakeven. If you think about our revenue per territory, we have been saying for the history of the company that our goal is to be between $1.5 million to $2 million in revenue per territory per year and what we just did in this last quarter is we entered into that window of $1.5 million and that’s growing from, we were sub $1 million in fiscal year 2021, we were approximately $1.2 million last year. And now for that trailing 12 months at $1.5 million.
And so there are a number of different things that are driving the productivity here. So, the first is just the caliber of our increasingly seasoned sales force. And that would be the first thing that I would focus on that we really have a significant group of mature, highly trained quota-bearing reps. The second thing is that we actually have a hybrid commercial model at this point. So we are working with our territory managers, as you said, there’s 83 in the last quarter we had 85 of those, but they are supported by clinical support specialists to help them to cover cases. And then, we have added a significant number of agents who actually cover cases as well, very specifically with our Granite product. And so what we’re seeing from a sales force perspective is what we were anticipating and that is getting that leverage from the sales force, especially with some of these new products and the utilization of our hybrid commercial model.
Anshul Maheshwari: And then, Drew, on the adjusted EBITDA side, all the points Laura highlighted is what’s driving our operating leverage in the business and we’re not going to be providing specific timelines, so when you get to breakeven, but when you think about the trajectory of our adjusted EBITDA, I think for the fourth quarter, we were at – third quarter, we were at about 44%, year-to-date, we’ve seen more than 50% improvement in year-over-year adjusted EBITDA. So feel really good about that. Our trajectory to breakeven is pretty linear to top line growth. That’s where we see the leverage. So we’re very confident in our ability to deliver that year-over-year improvement in annual adjusted EBITDA as we go forward. And like Laura said, we are progressing very quickly towards adjusted EBITDA breakeven pretty quickly after that from a cash flow breakeven as well.
Operator: Thank you. Our next question comes from the line of Craig Bijou of Bank of America.
Craig Bijou: Good afternoon. Thanks for taking the questions and congrats on another strong quarter. I wanted to start and I appreciate the comments on the active surgeon dynamics. And I wanted to start with, if you’re seeing any pull-through from some of the new surgeons that are doing the – using Granite or the pelvic ring fixation procedures, if they were, if there are new to SI-BONE and then if you got them a pull-through to do some of the core SI joint fusion procedures.
Anshul Maheshwari: Yes, happy to, happy to take that question, Craig, and good to connect. There were a couple of data points that Laura highlighted in her prepared remarks as well. One was around just the adds that we had year-over-year in active surgeons, about nearly half of those adds was surgeons that did minimally invasive SI joint fusion. And a lot of instances there where surgeons would it that procedure along with deformity and in trauma. So we’re seeing a nice halo from the new product launches that’s going both towards the core business, but also driving surgeons who perform minimally invasive SI Joint procedure to adopt degenerative spine procedures using Granite, in terms of going to the sacrum. And then the other thing that’s very interesting for us, again, it’s still early days, but as we try to build trauma franchise and work with key opinion leaders within trauma, what we are seeing is in over a third of the cases, the volume that we’re getting from the trauma surgeons, a third of that volume is actually surgeons doing minimally invasive SI joint fusion procedures.
So we’re seeing a pretty good overlap across a surgeon base and that gives us optimism that as the denominator grows, our focus on driving deeper penetration with those surgeons with a diversified portfolio sets us up well for 2024 and beyond.
Craig Bijou: Got it. And – that’s helpful. Thanks, Anshul. And then maybe another one for you. So just talking about the P&L, so gross margin came in a little bit lower than we were expecting and then supposed to step down, or you said it is going to step down again in Q4. So, appreciate those comments, but just wanted to understand the gross margin trend and when we’re kind of thinking about ’24, I know you’re not going to give guidance, but how to think about the trend through ’24 or just going forward and the same on OpEx? OpEx, mid-single-digit growth, I think was kind of the expectation for this year. Can you do that again going forward?
Anshul Maheshwari: Yes. Thanks, Craig. So on the gross margin side, as we mentioned, it was in line with our expectations and the trends that are impacting our gross margin have not really changed. It is evolving procedure and product mix, especially given the higher total cost of TORQ and Granite. We have been building capacity throughout last year, this year to support the demand that we’re seeing. So you’re seeing depreciation of that goes to the P&L as well. We’ve put a lot of that capacity to work in the third quarter. So you’re seeing that depreciation sort of start going through the P&L in the third, fourth quarter. And then in terms of the trajectory, we’re not going to provide guide on gross margin right now, but when you think about what our expectation is to exit the fourth quarter, I think that could serve as a decent proxy from a modeling standpoint for now till we provide additional information in our fourth quarter earnings.
