Roberto Cuca: Sure. So as I described from a P&L perspective, we do expect OpEx to be reasonably steady over the course of the year and revenue to grow on top of that such that, again, P&L metrics of profitability will get — will improve steadily over the course of the year, ignoring the contribution from NIVIS, which makes it better for the full-year. There is some seasonality to our cash flow since we tend to buy additional inventory in the first quarter and we pay out bonuses towards the fourth quarter. So if you overlay that sort of natural seasonality on top of that P&L progression, we feel comfortable with the cash burn and the way the cash is going to progress over the course of the year.
Caitlin Cronin: Great, thanks so much.
Roberto Cuca: Thanks, Caitlin.
Operator: Thank you. And one moment as we move onto our next question. And our next question is going to come from the line of Michael Sarcone with Jefferies. Your line is open. Please go ahead.
Michael Sarcone: Hey, good afternoon. Thanks for taking the question.
Antony Koblish: Thanks, Michael.
Michael Sarcone: Just to start, do you think maybe you could talk about how you’re thinking about IHR contribution for this year and maybe what you’ve got baked into ’24 guidance?
Roberto Cuca: So there are two dimensions to the IHR contribution for the year. So the first is, just as a reminder, we’re already a participant in inguinal hernia repairs. We do have products that are currently used even in robotic going down trocars. Roughly about 16% of our revenue is — previously was in inguinal hernia repairs. So we expect that IHR will have a fairly quick pick up uptake amongst the surgeons who were already doing inguinal hernia repairs using our products. In addition, there’s a lot of greenfield opportunities, as Tony mentioned to introduce the product to physicians who are maybe using synthetic meshes and are familiar with our products, but wanted something a little bit more targeted for inguinal repairs.
And so we expect to see some pickup from that as well. So we haven’t quantified that exactly and what the breakout of that in the $74.5 million to $76.5 million for the year is, but we do expect it to be a noticeable contribution to that amount.
Antony Koblish: Yes, I’ll add to that, Michael. We’re off to a good start. Just a couple of weeks. We’ve got well over 50 implantations, which is great. And we’re thinking about this, as Roberto said, but really a forward and backwards integration, right? So this will allow us to get to new customers, which will elevate the rest of our product portfolio in ventral and complex ventral. But we started off in complex ventral and then more simple ventral. And a lot of those surgeons don’t use us for inguinal. So I think reversing that, our customers that are solid on the ventral side and the complex side, I think are going to take a good hard look at us and adopt our products on the inguinal side. So it gives us that complete product portfolio.
I like the fact that it gives us mind share, routine usage capability, shelf space and with the addition of LIQUIFIX, it gives us complete parity with our largest competitors, right? We have a very novel atraumatic fixation system that we think offers significant advantages compared to tackers. And now we’ve got a full range to go after the whole suite of procedures.
Michael Sarcone: Got it. That’s really helpful. Thank you. And just second one, could you maybe just give us an update on your GPO contracts and how you’re ramping there?
Antony Koblish: Yes. So it remains the big three contracts that we have in place. Our revenue contribution from all the various GPOs, even the smaller ones and the big 3 is approximately 60%. We think it’s going to grow up to 70% in the near future. We’re certainly on track for that. We’re continually getting access via IDNs, supply chain and by smaller GPOs, and we are active in terms of looking at getting the next large GPOs. We’re very confident that we’re going to get them all. The large GPOs, I think their bid requests aren’t due till much later this year. So it might be more of a next year event. But rest assured, we’re very confident in our ability to continue to sell within the IDN framework, which represents over 40% of our sales today and has been very consistent.
So we’ve also had great success in getting IHR on our existing contracts as a line extension. And we’re actually starting to see some success with LIQUIFIX as a new technology. That’s going to take a little more time to get contracts for LIQUIFIX, but the new technology designation, which we seem to be getting in certain places is going to help us speed that up as well. So everything on the GPO front is looking very positive.
Michael Sarcone: Great, thank you.
Antony Koblish: Thanks, Michael.
Operator: Thank you. And one moment as we move onto our next question. And our next question is going to come from the line of Matthew O’Brien with Piper Sandler. Your line is open. Please go ahead.
Matthew O’Brien: Great, thanks for taking the question. Maybe for starters, just the Q1 result was quite good. Guidance for the year is well below what you just delivered in Q1, and I know there’s a comp dynamic to think about. But with all these different growth metrics or growth drivers that we’re seeing out there, I guess, why not raise the guidance range a little bit even higher versus what you did and then kind of what you’ve been doing over the last couple of years?
Roberto Cuca: Sure. Thanks for the question, Matt. We approached our guidance this year as a commitment to our investors. So we are going to hit these numbers. And we put the guidance range where we felt very confident that, that was doable given what we know. Understanding that as we learned more over the course of the year, quarter-by-quarter, and if we felt more comfortable, we would increase it to reflect that. So we did do well compared to consensus this quarter. We raised the range by a bit more than that. Part of the dynamic is what sort of fractions we can use and what sort of numbers. But we feel comfortable about the slightly raised range. And as we get more data under our belt, we will reconsider the range going forward.
Matthew O’Brien: Okay. Understood. And then, Tony, you’ve been talking about really strong training for quite a while. And I’m just wondering when we’re going to start to see a little bit more of this inflection point in terms of utilization. I mean I know you’re growing really well, but this is a massive market that you’re going after. What do you think is needed? You’ve got all the data. You’ve got great products, indications, what made them really see it this inflect from here? Thanks.
