Sean Browne: Yeah. So here’s what I’d tell you is that the initial demand is still really very tight. This is actually part of why for us providing donors to our supplier was a big part of it, right? So that’s one of the things that at least helped us get out, but many of the guys that are out there today who are on selling this are still struggling to get enough product out there. So there is still some supply constraints. We just happen to be in a much better position than we were even, gosh, three months ago, never mind the last half of 2024. And then when we think about margins for that product line specifically, the margins for this product line because we are supplying donors is going to be a little bit tighter in the first part — first half of the year, but in the second half of the year will get substantially better.
Chase Knickerbocker: Thanks. And maybe just last kind of the Coflex update, kind of talk about how that product did in Q4 and kind of steps you’re taking to kind of improve reimbursement and kind of the updates there?
Sean Browne: Sure. Yeah. So really pleased with where that business is today. Again, this was a complete revival project. This was one that the focus that we’ve put towards both the clinical and the reimbursement side is this just something quite frankly, from Surgalign’s perspective, it’s so much going on that this was really a hard thing to focus on and so we have done that. And so I’m really excited about what we’ve been able to at least stabilize the business and now we’re starting to win some new plans like we just got coverage for a great plan, regional plan in New York that gives us basically almost full coverage in New York. So having the fourth largest state in the union fully covered, this is really kind of a nice milestone for us.
So we believe that we’ve seen the bottom with that business, and we believe that we’re now going to be starting to grow it. And so we’re really kind of excited about where are the prospects for that business, especially because it is such a great technology. I think everybody on this call, if I just rationally explain to you the beauty of what Coflex does in a way of motion preservation, and just, again, what it does for people clinically or therapeutically. It’s just a great product. So we’re really excited about its prospects.
Chase Knickerbocker: Got it. And last one, and then I’ll hop back in the queue. Sorry, guys. Scott, just kind of good sequential improvement in adjusted EBITDA, that margin started to tick up. I mean, just kind of speak to your confidence in 2024 continuing to improve that adjusted EBITDA margin, even despite some of these kind of internal investments you guys are making?
Scott Neils: Yeah. I think it gets back to Sean’s initial comment, as it relates to our product offering. I think all of those things, in addition to the improvements we’ve made in way of yield improvements and scrap reduction, etc., will all provide nice sequential improvements to gross margin both during the course of 2024 and beyond. So we feel really good about that.
Chase Knickerbocker: Great. Thanks, guys.
Operator: Thank you. And at this time, we have no more questions. I’ll turn the call back over to Sean Brown for any closing remarks.
Sean Browne: Thank you, operator. Overall, I’m very pleased with the progress we have achieved in ’23. In short, we almost doubled our revenue with both strong organic growth and the assistance of three newly acquired businesses. We dramatically improved our margin by over 540 basis points, resulting in positive adjusted EBITDA for three consecutive quarters. Our efforts in expanding our capacity and distributor network have allowed us to meet the increasing demand for our biologics and fixation products, enabling scalability. We are enthusiastic about leveraging this momentum to further our overarching goal of maximizing shareholder value. We have laid revenue growth guidance of between 23% and 27% for full year 2024 driven by Xtant taking over the supply chain for both internally produced products and improved vendor management of the acquired Surgalign products.
We see solid growth in the first half of the year with increasing velocity as we have produced more of our own goods in the second half of this year. In closing, I want to reiterate our mission of honoring the gift of donation by allowing our patients to live as full and complete a life as possible. I appreciate the dedication of our valuable employees. Without them, our success and achievements would not be possible. Thank you for joining us today and for your continued support.
Operator: Thank you. That does conclude our call. All parties may now disconnect. Enjoy the rest of your day.
