Olivia Tong: Thanks. Good afternoon. I wanted to dig into the Q2 guide a little bit more. You mentioned the international Syndeo launch creating a tougher Q2 comp. Can you tell us how much of a contribution that was last year? And then you talked a little bit about your usual seasonality. This is a smaller sequential lift when we look at Q2 versus Q1, and implies that Q2 sales are lower even on a two-year stack, whereas it did improve in Q1. So could you just talk a little bit more? Peel back the layers of the onion on what’s embedded in your expectations, perhaps any of the takeaways that you’ve had from the trade shows year-to-date that helps influence that Q2 view? Thank you.
Mike Monahan: Sure. So last year our total revenue was $117 million on a consolidated basis in the second quarter. We had a really strong quarter in APAC and EMEA. They grew – APAC overall, equipment revenue grew substantially because of the launch, and so did EMEA, which was largely impacted, largely had an impact on the second quarter. When you look at this year in terms of the guide, we’re obviously comping that internationally. In the Americas, what’s putting a little bit of pressure is really on the capital equipment side. Again, the two things that we’re seeing are take a little bit longer to close that sales pipeline. So the way we modeled it in was, and our expectations are that we’ll be able to close the pipeline a little bit later in the year and we’ll still see a little bit of softness in the second quarter. So we model capital equipment sales to be down year-over-year in the Americas, and that’s overall impacting the general guide.
Operator: All right. Our next question comes from the line of Margaret Kaczor from William Blair. Please go ahead.
Unidentified Analyst: Hi, everyone. This is Macauley on for Margaret. Thanks for taking our questions. So last quarter you mentioned some ordering disruptions, especially associated with some of those international distributors. So I’m just wondering if we can get an update on how those ordering patterns have, have normalized, if they have normalized, specifically APAC, as you called out. And did you see any change in the quarter or was there any catch up, maybe this quarter compared to the last quarters, just as some of those Syndeo improvements were made over the course. Thanks.
Mike Monahan: I think a large portion of the timing that we saw was on the distributor side of the business for consumables in Q4, specifically in APAC, we’re starting to see that normalize in the first quarter. So there wasn’t anything significant that impacted kind of the first quarter in terms of overall timing.
Operator: Our next question comes from the line of Jon Block from Stifel. Please go ahead.
Joe Federico: Hey, guys. This is Joe Federico on for John. Mike, I guess to start maybe just following up on one of the previous questions on kind of the back half of the year that was on sales, but I’ll try it from an EBITDA perspective. The 2Q guidance implies that the first half EBITDA margin is around 3%. Full year guidance implies that basically the second half shakes out around 16%. Can you give us any more color on kind of the ramp there on the EBITDA margin? It sounds like a lot for accelerating consumable sales. So any detail on some of the other moving parts would be helpful. Thanks.
Mike Monahan: A lot of the expectation is as we grow revenue, we’ll be able to manage the OpEx. And you saw we were able to do that in Q1. We’re actively managing our operating expenses and expect to continue to do that and potentially improve throughout the year. And so what’s really driving the EBITDA, if you, as you grow revenues and hold, or potentially slightly improve a little bit on the gross margin, as we’re able to manage the operating expenses, you’ll see that our expectation is that drops down to adjusted EBITDA.
Operator: All right. [Operator Instructions] Our next question comes from the line of Korinne Wolfmeyer from Piper Sandler. Please go ahead.
Korinne Wolfmeyer: Hey, good afternoon. Thanks for taking the question. I’d like to ask on the utilization I know you had some positive commentary on consumables, but it does look like overall utilization was a bit weaker. We’re also hearing about from some other peers that there might be some weaker end consumer demand in aesthetics. And then you’re also it looks like the marketing spend is coming down. So what gives you confidence in the consumables being able to accelerate throughout the remainder of the year with all of these pressures? Thanks.
Marla Beck: Thank you for the question. So consumables grew nearly 12% in the first quarter year-over-year and our installed base has significantly grown. Bright spot is really our corporate accounts. They’re expanding and focusing on marketing Hydrafacial which is adding to our utilization. Additionally, we see a pretty long-term opportunity as we expand our innovation pipeline for 2025 and 2026. The other thing is we do need to and will invest in additional support, training and marketing activations to support our providers. We think we can be highly efficient in doing this and we have the opportunity to focus on certain providers to support them in driving utilization. So as we dig into the back half of the year, we’ll be investing deeply and really supporting our providers from a resource allocation perspective and a time and attention perspective.
Operator: All right. Those are all of our questions in the queue. I would now like to turn the call back over to Marla Beck for closing remarks.
Marla Beck: Thank you all for joining us today. Our progress is being driven by our passionate team and community. I want to thank the employees of Beauty Health for their continued hard work and dedication, our providers for their loyalty, and our partners for their trust and collaboration. I am incredibly confident and excited about the future of Beauty Health given our significant addressable market, compelling brand equity, deep provider partnerships and presence of the right team to execute and drive our success. Thank you.
Operator: This concludes today’s call. Thank you for attending.
