We have some parts of our business really performing well. We mentioned OEM, we mentioned interventional access surgical had a really good start of the year, interventional urology at 6.1%. And then geographically, you see EMEA coming in at 9.7%, and double digit growth in APAC. So I will say that the underlying growth algorithm for Teleflex is very much intact. And as we head into – and we are one quarter into the second year of our LRP and we feel pretty bullish about the outlook for our company.
Operator: Your next question comes from the line of Larry Biegelsen from Wells Fargo. Please go ahead.
Nathan Treybeck: Hi, this is Nathan Treybeck on for Larry. Thanks for taking the questions. Can you talk about, given the constant currency beat in Q1, what were some of the considerations for not raising the full year guide?
Liam Kelly: Yes. So obviously, the first consideration is it is Q1, and I think if you take that into account. The other consideration is we give our guide in February, we had a really, really nice March. So, that was helpful. And we came in above where we thought based on the performance of March and some of the performances that we spoke about earlier on. And we did have some OEM orders that pulled in from Q2 into Q1, and we updated for FX. So, we’ll continue to monitor the situation as we go into Q2, Q3 and Q4. But again, I feel fairly bullish on our performance. This is our fifth quarter in a row where we have actually been in a position to beat our internal revenue forecast and to be able to provide upside. And it’s a nice upside of $11 million. Again, a few million was pulled in from orders from OEM that shipped in Q1 rather than Q2. But other than that, the underlying growth of the business is really solid.
Nathan Treybeck: Okay. And can you talk about like the drivers of growth for Palette, is it share gains, is it market expansion if you could just give some color there. Thanks.
Liam Kelly: Yes. The bulk of the growth for Palette is really market expansion. We have continued to bring this product to our existing customer base, and it’s being adopted there. I mean there is some share shift, but I would say that we are more focused on the white space been trying to take share from others within the marketplace. The product is performing exceptionally well. The sales force is very, very bullish. Once we have our additional 50 reps trained, they will now be active in the marketplace in Q3 dual-bag selling that product. So that should also help. And also in order to expand the market even further, we have initiated, and agreed and funded an additional study for expanded indications for the Barrigel product for Palette.
We have identified the sites that will conduct the study and we envision beginning enrollment in the very near future. So not alone, we are not satisfied with the market of $330-odd million, we want to expand that market even further so that we can create more white space for us to grow into.
Operator: Your next question comes from the line of Matthew O’Brien from Piper Sandler. Please go ahead.
Matthew O’Brien: Good morning. Thanks for taking the questions. Tom or Liam, I know you are going to say it’s Q1 and everything, but you just beat Q1 by about $0.15 or $0.14 on the bottom line, only taking the low end up by about a $0.05. So the midpoint is only going up by about $0.025. Why the conservatism there, especially with inflationary pressures easing? And could we just start looking at kind of the higher end of that range just based on the trends so far?
Thomas Powell: Well, I would just say, first of all, we raised by $0.09 in the lower end, but $0.05 or I should say, $0.04 of that was offset by an increase in the foreign exchange rates. So, again, we feel really good about the results in the first quarter. We have provided full year guidance, it gives us improved confidence in our ability to achieve that full year guidance, and we’ll continue to monitor the situation and update. But again, we are just getting out of the first quarter and give us a chance to see a little bit more how the year is playing out.
Matthew O’Brien: Okay. Fair enough. And I wanted to ask about UroLift, but I think the more pertinent questions back on Interventional, like Jason was talking about. That performance has been very strong for several quarters in a row here. You’ve got this focus on structural heart, it’s one of the fastest growth areas in med tech. You’ve got Wattson coming. Is this an area that can deliver, not necessarily this level of growth, but just well above Teleflex levels of growth for the next several years? And is this an area of focus maybe from an M&A perspective as well, just given the strong underlying performance of the market in general? Thank you.
Liam Kelly: So, I will start with the last part of your question. It’s definitely a focus for M&A, Matt. I have said many times that I like the cath lab as a call point. We now have a global franchise with that call point. And it is one of the key areas of focus for us when we are doing M&A. It’s not the only area of focus, but it’s a key area of focus. With regard to the sustainability of the growth, I think, that the Interventional portfolio that we have with MANTA in there, with Wattson coming in there, we got Ringer coming down the road, we got Triumph that’s going to be launched sometime in 2025. So we have a whole suite of products coming into this call point. And we have invested heavily in the R&D organization there to ensure that we have the suite of products coming through.
So, I think it’s well capable of maintaining well above Teleflex average growth and be a growth driver for Teleflex over a multiyear period just based on that background, but it has come at the back of investment. This is one of our areas where we have invested behind and the acquisition of MANTA a number of years ago is playing out really well as we penetrate that large bore closure market.
Operator: Your next question comes from the line of Anthony Petrone from Mizuho Financial Group. Please go ahead.
Anthony Petrone: Thank you. And I hope everyone is doing well. Congrats on a strong 1Q here. Maybe a couple of questions. One, just actually focused in on the Americas, surprised to see just regionally, Americas actually being down a touch here. And then when you sort of bridge that to some of the divisions Vascular was pretty good, OEM obviously outperformed even Interventional Urology, touch ahead of our numbers. So, where specifically in the U.S., was there slippage, was it tough comps or was there other stocking dynamics in the U.S.? And I’ll have 1 follow-up. Thanks.
