Larry Biegelsen: Congrats on a nice quarter here. Ray, just at a high level, taking a step back, you’re at over 1/3 share now. What are the drivers to market leadership in the U.S. for you? How long do you think it will take? And is there any reason you can’t grow SNM revenue by 25% next year?
Raymond Cohen: Thanks, Larry. Appreciate the question. So look, we’re not backing off kind of what we’ve been talking about, in terms of this general notion of 25% Axonics growth in SNM revenue year-over-year and in the neighbourhood of 15% growth in the market, right? So we’re confident about that and we will continue. And I think if you just run the numbers out, then we’re going to get there. I mean, of course, I’d like it to happen sooner than later but if we get there by the end of 2025, then that would be fantastic, right? So I think everything is moving in the right direction and we’re pleased with the results and we’re just going to keep executing the game plan.
Operator: The next question comes from Travis Steed with Bank of America Securities.
Travis Steed: Congrats on the margin upside this quarter. And I’ll focus my question on the margins. Just curious if you can elaborate on some of the stuff you’re doing to get the margin expansion this quarter? And how you can push that into 2024? And then it did sound like you were raising gross margin for Q4 but I don’t know if there’s any additional color behind that? I think before it was 73% to 74% and now you’re at 74% to 75%.
Raymond Cohen: Do you want to comment, Kari?
Kari Keese: Sure. Travis, Yes, we have had some meaningful improvements to our gross margin as you’ve stated. We’ve had and expect to continue to see some choppiness quarter-to-quarter as we’re still getting to that even production capacity. At the end of Q2, we had some line of sight to certain yield and supply chain issues. So we had previously guided to 73% to 74% in the second half. We do feel that these items are fairly squared away at this point and have updated the guide to 74% to 75% as you mentioned, for Q4 and we do note that Q3 came in at 74.2%, the high end of that previous guide. So longer term, we do think there’s several ways to continue to improve gross margin. We do not think 75% as the cap. And for now, we just need to keep executing. We’re finding our process and supply chain have longer production runs and continue to optimize the overall process with expected higher volumes.
Travis Steed: And EBITDA margins as well?
Kari Keese: Yes. On EBITDA margins, I think this Q3 marks the sixth consecutive quarter of adjusted positive EBITDA. So there’s no reason that this trend shouldn’t continue. We think that the results are being driven by the natural operating leverage in the business model. For Q4, we made the remark of $79 million for expected OpEx. If you look at adjusted OpEx, meaning just backing out the nonrecurring acquisition-related costs and the onetime acquired IP R&D charge, you can really see there’s a steady increase quarter-to-quarter in that adjusted OpEx number. So we think that trend will continue. The Q4 OpEx guide is slightly higher. We expect some increased spend in Q4 for higher commissions, more spend on certain marketing initiatives and product development initiatives. But the overall 2023 OpEx number at $280 million is right in line with consensus which we’re comfortable with.
Operator: The next question comes from Richard Newitter with Truist Securities.
