Lucas Buchanan: Yes. So again, in my prepared remarks, we talked about the sequential decline in total OpEx as a percentage of sales even as we continue to expand the sales team. And so the incremental investments right now are truly in the sales team. We are at scale in our R&D function, in our G&A functions and our commercial support functions. And so as we grow the topline, we’ll continue to see that leverage and we’ll continue to see OpEx grow at much lower rates relative to revenue growth. And that will drive our pathway to cash flow positive and profitability. And as I said, we’re well capitalized to achieve that journey.
Operator: And our next question comes from Travis Steed of Bank of America Securities.
Travis Steed: I guess going back to the things that impacted your revenue procedure in Q1, maybe talk about what happened with those issues over the quarter? And curious why there wasn’t a catch-up — a more of a catch-up in revenue procedure but there was some destocking in Q1, just anything on the revenue procedure and the issues that happened in Q1.
Erica Rogers: Yes. Travis, thanks so much for joining the call. What I can say is that the very minor disruptions we had at the tail end of Q1 are well behind us.
Travis Steed: But no catch-up and no reason to see a catch-up in revenue procedure this quarter? Or should we see that this year or…
Lucas Buchanan: Yes, Travis, revenue per procedure in Q2 was roughly $7,020 by the math which was a step up off of Q1, as I said in my prepared remarks. Q1 and Q2 were well within the normal variation of history. So I want to really emphasize to not over index, right? We are — this business is meeting our expectations. It’s increasingly mature. Everything is normalized as we said that revenue per procedure will start to approach the combined ASP but never meet it. Remember, we’ve gone from sales rep 1 to 80 and we’ve gone from hospital 1 to 1,200 and we’ve gone from trained physician 1 to 2,600 which over many years is putting — take our products into the channel to get hospitals started, to get each individual physician started.
But here in 2023 and beyond, it’s really about driving deeper. And so it’s really kind of normalizing that reorder range. And so the business is performing as we expected. And we recognize revenue when a hospital orders a product and we utilize a unit when a physician does a procedure. And so quarter-to-quarter variation is not something to overly focus on. If you look at our last — our trailing 12 months, right, revenue per procedure is roughly $7,050, if you look at our last 8 quarters, it’s $7,100. So there’s always quarterly variation. It’s always a little bit lighter in Q1 and it steps up in Q2 and Q3 and sometimes it’s a little bit higher in Q4 and the cycle repeats itself. But there’s also pandemics and hospital financial pressures and our own sales territories that increasingly cover a smaller number of physicians and accounts so that they can go deeper.
And therefore, there’s just more focus and energy on helping hospitals manage their inventory. So we’d like to get beyond talking about this and talk about procedure growth and our strong ASP metrics. And I just caution you not to over-index on quarterly variation.
Travis Steed: That’s helpful. And then I think bringing the NCD step up again. But maybe, Erica, just add a view on the hospital economics here, same reimbursement, TCAR higher device costs. How much do you think economics might impact decision-making here, if at all? And there was some comments about the lack of a randomized controlled trial for TCAR. Do you feel like you need that at some point here to really develop TCAR longer term?
