Keri Mattox: Jayson, thanks for the questions. Katie, can we go to the next question in the queue?
Operator: We’ll go next to Kyle Rose with Canaccord.
Kyle Rose: Great, thank you for taking the questions. Just wondered if–apologies if I missed it, I wonder if you could give us a little more insight into where you’re at from an inflationary perspective into 2023. I think previously you talked about being at the higher end of the range of 50 to 100 BPs. I just wanted to see if that was the way to think about the inflationary impact in the P&L in ’23, and then maybe update us on the actual headwinds you did see in 2022.
Suketu Upadhyay: Yes, so you’re right – we did point to the higher end of our range back in ’22 of 50 to 100 basis points flowing into ’23. We’re actually seeing that come through year-over-year as a headwind to gross margin. I could say, though, I’m very pleased with how the commercial and supply chain teams have reacted to that, and we believe we’re going to be in a position to offset all of that and pretty much hold gross margin flat year-over-year That’s coming from a number of variables, but again we’re really proud with what the team’s done to offset that. The impact that we saw in 2022 was, I would say, about 100 basis points as well, and if you actually look at gross margin performance, it was flat to 2021, so again the team did a really nice job in offsetting those headwinds. Once again, we’re demonstrating and showing that we can be disciplined, we can offset these headwinds and help our earnings growth over time.
Kyle Rose: Great, that’s helpful. Then overall in the commercial channel, you talked historically about making investments in specialized sales forces and investing alongside your distributors to support some of the higher growth market segments. Just wondered, can you help us understand how these initiatives are trending, and then any potential updates in where you stand from a distributor versus a direct model across some of those higher growth segments?
Ivan Tornos: Maybe I can take that one, Kyle. First things first, on the three segments we think that are growth drivers: sports med, upper extremities, and CMFT, we have double if not triple the number of people dedicated to these specialties. The sports med expansion is very real now that we have a portfolio, so the number of dedicated specialized people has dramatically increased in these three categories. In tandem, we also increased the number of people that are fully dedicated to the ASC environment, and that’s because these procedures for the most part do take place in that space, but that goes beyond sales reps. It also touches on the contracting arm of the organization. As far as your second question, the percentage of direct and indirect, I don’t think that we disclose that externally.
We like where we are, we like the mix that we have of direct and indirect. We just left our sales meeting Denver, we had 2,000 people were there, and I tell you their mood is very solid whether an indirect or direct territory leader. I think people feel it’s a good time to be part of the company, but I don’t think we’ll break down the percentages externally.
Kyle Rose: Thank you very much.
Keri Mattox: All right, Kyle, thanks so much for the questions. Katie, I think we have time for may one or two more.
Operator: We’ll take our next question from Chris Pasquale with Nephron.
