Suketu Upadhyay: Yes, sure. Kyle, thanks for the question. So first, on gross margin, from an inflationary standpoint, recall that we have about 100 basis points from ’22 that’s capitalized and hitting our P&L this year, and we’re seeing that come through, that’s happening. In addition, we are seeing some incremental inflationary pressure, new pressure 2023, primarily related to continued spot buying with some raw materials around packaging, [indiscernible] some of our metals that we use, but we’re also seeing it in really the cost to serve. What do I mean by that, really around the need to have to shift product a lot more than you might have to in a stable supply environment. That’s one area of incremental inflation or higher costs that we’re seeing.
Second is we’ve made the decision to actually pay incremental incentives to our commercial field sales force because we know how challenging it is out in the marketplace. Dealing with these supply challenges, we’ve been incredibly impressed with how they’ve been responding. So these are a couple of elements that are also flowing into the P&L. By the way, we’re offsetting those and investing into business while increasing operating margin for this year. So the company and the team have been incredibly disciplined in the backdrop of better revenue and still dropping very, very substantial operating margin expansion. As we move into next year, there could be some of this incremental inflationary pressure that we’re seeing this year that makes its way into 2024.
It’s going to be nowhere near what we saw happen in ’22 into ’23. It will be much more modest. And like I said, I think we have more levers to help offset that as we move into 2024. But again, I’m not going to give guidance on 2024 and exactly what gross margin or operating margin looked like. But there are some moving parts there. That will be potentially another modest headwind. But again, we have a number of tailwinds to help offset things returning to a normalized market. Clearly, we’re not there yet. Revenue growth may look and feel normal, but the underlying dynamics are still not normal. We don’t believe, at least standing where we are today, at least the beginning part of 2024 that we’re going to be there. It’s a long way away. We’ll see where we get to in 2024.
But once we do get to that sort of normalized growth, we do believe that we can sustainably hit that 4-plus or mid-single-digit growth profile that I talked about earlier.
Keri Mattox: All right. Katie, I think we might have time for one last question in the queue.
Operator: We’ll go next to Matt Miksic with Barclays.
Matthew Miksic: So just a couple of follow-ups. One on margins. And I know there’s been a fair amount of talk about on the call and progress in terms of driving leverage commitments to leverage this year. I was wondering if we could sort of zoom out and think about where margins were pre-pandemic in that kind of like low 30s range? If you could remind us, is that — is that a target to get back to and maybe the time line for getting there? And then just one quick follow-up on the Persona iQ, if I could.
Suketu Upadhyay: Yes. So the margins in the low 30% range. I’m not sure what you’re referring to there, Matt. Maybe just out there the merger of Zimmer and Biomet. But since then, those margins were obviously impacted by a lack of investment in supply chain, commercial infrastructure, et cetera. So again, I don’t know that, that’s the right reference point — what I can tell you is that pre-pandemic to where we are now, we are expanding margins, operating margins as we continue to drive top line revenue growth and investment in the company. So feel good about where we are and where we’re headed moving forward. Sorry, your second question?
