Sung Ji Nam: Hi. Thanks for taking the questions. One more question on your nCounter IVD strategy. Marc, do you think there will be market opportunities for laboratories once you just adopt one test on the platform, or do you think for this model to work, that you would have to see multiple tests being adopted? How do you see that playing out? I don’t know if it’s too early to tell, but —
Marc Stapley: Definitely , it’s actually the right question, because we’ve said all along, you need an extensive menu to drive adoption, and that’s what we’re building. I mean, to an extent — I mean, if you think about it this way, having a breast test which we do have, Envisia is more of a rare disease. So I don’t think that necessarily steps up the adoption on its own. Prostate significant indications, significant disease, pent-up demand, that starts to really move the needle. And then, if you think about adding nasal swab on top of that, where the population, the potential use cases are much more significant than you really get into. That is the point where you get to a very extensive menu and that makes it much easier to have those placement conversations and just having Prosigna today. Having said that, well, we are seeing some traction, albeit small with just the breast cancer test today. But it’s going to take the menu to drive it.
Sung Ji Nam: Got it. And then one for Rebecca. Thank you for the cash flow guidance for the year. Sorry, I missed it. Sorry, if I missed it, but I was wondering if there might be any kind of upcoming pipeline development initiatives or any activities associated with any of the commercial launches next year, that could potentially drive accelerated cash use next year.
Rebecca Chambers: Fair enough question, Sung Ji. We haven’t gotten into our budgeting exercise for next year. So it’s premature to discuss. That being said, I know Marc and I share the same philosophy and that is one where we’re going to do our best at any point in time to balance investment with cash generation. And so, while in any given quarter or any given year, the scale may tip slightly one way or the other. Overall, we’re absolutely — we’re focusing on balancing those two sides, if you will. So not committing to anything, given we haven’t budgeted yet, but I think that’s the overall philosophy that we abide by day-in, day-out.
Marc Stapley: Yes. I think I’d add to that, something that I think is evident to everybody that really fuels and drives our business, whether we’re talking about Afirma or Decipher or the adoption of Envisia, or the IVD strategy, evidence generation, evidence development. And so this year, we’re investing heavily in NIGHTINGALE for nasal swab. We always invest somewhat in driving more evidence to Decipher, and we’re going to be investing in evidence development for our IVD business outside the US. And so to the extent we feel that, there’s the affordability to be able to do that within the parameters that we said that, we will continue to do that and fund studies and make sure the evidence development is really helping drive our business.
Sung Ji Nam: Great. Thank you so much.
Rebecca Chambers: Thanks, Sung Ji.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Andrew Cooper of Raymond James. Your line is now open.
Andrew Cooper: Hey, everybody. Thanks for the question. A lot has been asked. So maybe just one more on sort of the margin side of things, the cost side of things. In terms of one of the costs you made, you talked about personnel costs. Can you just give us a sense as you look to add maybe some heads in R&D, some heads in sales and marketing may be a little bit more measured away? How much of that is incremental heads versus wage inflation is really starting to kind of hit you, just a sense for kind of the hiring environment out there and what you’re seeing on the wage and labor side would be helpful.
Rebecca Chambers: Yeah, happy to do so. I would say, it’s a little bit of both. On the wage side, given the inflationary environment when we set our merit budget for this year, we did take that into account. And so I would say, it was slightly elevated, though not materially so versus prior years. And I would — so that would be one point. The other point is we are adding heads and doing so in areas where we think both from a laboratory perspective as well as across the operating lines, we’ll get a meaningful return from. And I think that’s relatively evident I would say the third thing, in the first quarter, you always have your benefit resets and your benefit and tax reset, which obviously does impact the first quarter more so than others, and you obviously see that in our OpEx figures as well.
So I would kind of think about those three things as being the primary drivers. And I think going forward, while we’re adding some heads, we’re very comfortable with the budget we set. And we’re very comfortable with even being vastly ahead on the cash side than where we had expected to be at this point in the year. So I think our investment levels are quite prudent. And I think from a cash ending cash forecast for 2023, we’re really happy with where we are, where we are ending — forecasting to end at this point in time.
Marc Stapley: And from a hiring environment standpoint, I would say certainly a lot better than it was before, and we’re really at most levels, having very little trouble finding great people to join our company, and we placed some and grow some really good talent recently. So it’s nice to be able to be hiring right now.
Andrew Cooper: Great. And then just one more from me. Can you give us a little bit more detail on some of the efforts and the progress being made on the manufacturing front in terms of continuing down that transition from NanoString to yourself internally? What are some of the guideposts we should be thinking about through the year? And has there been any surprises, or anything that has changed from the last update on that front?
Marc Stapley : No, nothing new. It’s continuing well and the activity to transition that over to our team in France is progressing as we had planned and the idea is to have that done at the end of this year. And so we’re on track to be able to do that.
Rebecca Chambers : And I wouldn’t expect, I mean, this is a day in, day out type of thing at this point in time. You probably won’t get meaningful updates until it’s done. So no news is good news, if you will.
Marc Stapley : Yes.
Andrew Cooper: Okay. Great. Well, nice quarter, and we’ll stop there. I appreciate it.
Marc Stapley : Thanks.
Operator: All right. Thank you so much. This concludes the Q&A portion. I would now like to turn it back to Marc Stapley for closing remarks.
Marc Stapley: Thanks, Stephen. I appreciate it. So just to wrap up, obviously, I’m very pleased with the performance of our core testing business in the first quarter with both Afirma and Decipher exceeding our expectations. And good to see our efforts on market access and adoption in Europe drive a strong quarter for our product business. Our focus on evidence development, product enhancements and commercial excellence is really fueling the growth of our business, which will be further supplemented in the long-term by the new products that we’re developing for global markets, such as our Nasal Swab in lung cancer and our IVD menu. I’m really proud of the great work the entire Veracyte team is doing for patients all over the world. So with that, I’d like to say thank you.
Operator: Ladies and gentlemen, this concludes our call today. Thank you for joining us. You may now disconnect.
