Operator: Thank you. And our next question today comes from Margaret Andrew with William Blair. Please go ahead.
Margaret Andrew: Hey. Good afternoon, guys. Thanks for taking the question. Yes, I maybe wanted to start with guidance that you guys maintained the revenue guidance since you announced five, six weeks ago you’re two shorts away into the quarter. I was hopeful you could give us context over how trends maybe have moved throughout the quarter, especially in some of these key geographies like China, Europe, et cetera.
Tom Frinzi: Yes. Thanks Margaret. Listen I feel very good about how the year has started. I think it’s certainly premature to give any more detail than just that. But pleased with what’s happening in China, pleased with what’s happening in the U.S., Europe has some nice momentum. So, we’re we just feel we’re well-positioned. Teams are focused. We have a great plan in front of us and it’s all about execution.
Margaret Kaczor: Okay. Helpful. And then maybe on the EPS side positive EPS leaves a pretty wide gap of results for 2024. So, how should we think about that? And how should we really think about the cadence throughout the year? And if you want to put on adjusted EBITDA that’s fine too. [indiscernible]
Patrick Williams: Yes. So, clearly we — sorry Margaret, you broke up — you were breaking up at the end. Repeat that last part please one more time. Cadence?
Margaret Kaczor: Just trying to get a good sense of cadence for first half versus second half as it relates to profitability and expenses? Thanks.
Patrick Williams: Yes. So, in my detailed comments I did break out all the different line items for G&A, R&D, and sales and marketing. So, I think that should be able to get the models there. As a reminder Q1 we said approximately $72 million. So, that will be the low point throughout the year as we go. Most models probably have us growing revenue in the first half of the year in that mid-single-digits and in the second half of the year in what I would call low double-digits. That gets you to the full year growth number that we put in the $335 million to $340 million. We clearly introduced a new profitability metric which we think is more indicative of our cash generation where we’ve taken out non-cash items. And I think what that shows is that we continue to see leverage and can continue to generate cash even in a year where we had to build infrastructure and we candidly repeated revenue two times in a row.
So, we feel very good about where we’re at the resetting that we did this year and where we’re going forward. So, I’m sure the models will get modeled correctly. And just keep in mind Q2 tends to be our biggest year or our biggest quarter just because of the high season that’s related to China which I a 65%, 70% on our revenue in that quarter.
Operator: Thank you. And our next question today comes from George Sellers with Stephens Inc. Please go ahead.
George Sellers: Hey thanks for taking the question. I’m just curious in U.S. what percentage of procedures right now are with patients who are contraindicated for LASIK? And where are you in penetrating that piece of the market?
Tom Frinzi: George I’m not sure to be honest with you. I think the patients walking in the door as we said about 32% fall below minus eight today. We think we’re going to continue to grow that. People that are walking in that aren’t good candidates for laser vision correction it’d be a guesstimate on my part and I’d rather go to the market research and get you something very specific. And we’ll follow up with you directly.
George Sellers: Okay. And maybe taking a step back and going back to the pricing commentary earlier could you just give us an update on your pricing strategy globally? Are there some markets where you could potentially look to increase price? And then what’s sort of your view on lowering price in the U.S. sort of more broadly? Thanks for taking the question.
Tom Frinzi: No. Look pricing really depends on how we go to market in any particular part of the world. We have purely distributor markets, we have hybrid markets, and we have direct markets. And obviously pricing and margins reflect that go-to-market strategy. But I think again, as Patrick mentioned, we have an awful lot of flexibility as to how we want to price the technology around the world and still maintain very healthy margins in that 80% range. I think for the US again, we’ve always been open to where volume commitments are made. We have the ability to be as flexible as we need to be. But we also recognize too that we’re producing a premium outcome. So just finding that proper balance between volume and price and the good news is, we have the flexibility to be able to react to a customer’s needs.
Operator: Thank you. And our next question today comes from Ryan Zimmerman of BTIG. Please go ahead.
Ryan Zimmerman: Hi. Good afternoon. Thanks for taking my question.
Tom Frinzi: Hey Ryan. How are you, Ryan?
Ryan Zimmerman: Good to hear from you guys. I want to ask about China a little bit. We’ve talked to some investors there. Curious, if you could speak to pricing in China and where it stands with your distributor. You added a new distributor. And what places like — what places — places like Aier are charging? Has there been any change in pricing? Do you expect any change in pricing? I’d appreciate any commentary there.
Tom Frinzi: Yeah. No sure. Appreciate the question Ryan. I think from a pricing point of view, again, as we’ve said in China a customer like Aier ultimately controls what they charge to the patient. I think as we negotiated our relationship with Longsheng — Shanghai Longsheng as well as bring on an additional distribution partner. We were very pleased with the economics that we’re negotiating those deals. We’re not in a position to share those, nor will we going forward. But rest assured we were very pleased with the economics associated with those relationships in terms of moving forward. And I think pricing has been fairly stable in that marketplace. As I said, where we control the business direct we have even more flexibility. But I think we feel good about pricing. Aier continues to see EVO ICL Surgery as a real profit center for them moving forward, and continue to support the technology 110%.
