Warren Stone: I think that probably the high level of Chris is that, ultimately, it’s commercial strategy that we’re executing again. So, we’re losing less than what we have in the past. That’s the fundamental for us to build on.
Chris Smith: And winning more.
Warren Stone: And expanding share of wallet is, obviously, significantly easier with existing customers. And we’ve actually been really, really effective. Yeah, that’s been probably our area of largest growth. And then, on the — yeah, it’s, obviously, winning new customers, which is, as we’ve expanded our sales resource because that’s another area that we focus in on, and we feel that a lot of the ones that we’ve secured in 2023 will annualize in 2024, which, obviously, provides some tailwind as we move into next year. But it’s really effective execution of the strategy, which is driving above-market growth of these other modalities.
Chris Smith: And then, I think, that we will clearly see a correlation between improved turnaround time and sales growth as well, so as our operational efficiencies continue to improved, it’s helping us drive incremental volume.
Andrew Brackman: Okay. That was great. Thanks, guys.
Chris Smith: Thanks, Andrew.
Operator: The next question comes from Alex Nowak with Craig-Hallum. Alex, Please proceed.
Chris Smith: Hey, Alex.
Alex Nowak: Okay. Great. Good afternoon. Hey, good afternoon, everyone. Really strong NGS gains as we’ve talked about here so far in the call. The company lost market share in NGS, and the molecular business over the last couple of years, really, before the new team has joined. So, is this really taking back market share from those gains that were lost, or is this better penetration of NGS into your existing customers that maybe haven’t used NGS to the full extent?
Chris Smith: I would say yes, I mean, it’s really both. I mean, I think, would you — we have the market growing 15% to 20%. So, when we’re growing 35% plus, not only we’re growing with the market, but we’re moving share. So, it’s really a combination of both.
Alex Nowak: Okay. Got it. And then the breast MolDx re-submission here, Is that going to be to grant a broader MRD and recurrence label versus the five-year recurrence label we have today?
Chris Smith: Let me — let Vishal kind of take that one to talk about what’s going on with our products at MoIDx.
Vishal Sikri: Yeah. So that is correct. It’s going to be an expansion to our current approval that we have from MoIDx, both in the recurrence and surveillance mix.
Alex Nowak: Very easy. Excellent. Thank you.
Chris Smith: Thank you.
Operator: Up next, we have David Westenberg with Piper Sandler. David, please proceed.
David Westenberg: Hi. Thank you.
Chris Smith: Hey, David.
David Westenberg: Hi, guys. Thank you for taking the questions and congrats on a really good quarter. So, I mean, I appreciate all the commentary on the NGS growth. The ASP left, I mean, it was really big and so I want to actually just cut in, in a little bit more into that life — revenue cycle management piece. I mean, I don’t know if you can quantify it, but kind of help us frame the size of that lift, how much meaningful, what is there to chop in terms of revenue cycle management, and then just maybe even in this quarter, was there any one-time in this quarter from that revenue cycle management, just to be aware of as we’re modeling ASPs because I think you beat the Street by like $40 or something like that in the quarter.
Chris Smith: Yeah. Let me maybe take it a couple ways, and let Jeff, kind of get into the details. So, we haven’t disclosed how much the opportunity is, but when we build, the way we’ve thought about the business over the next, several years, there’s opportunity to continue to move that out. And, David, I think we may have even talked about this when we met in San Francisco, that being new to the industry, I am incredibly surprised that just general how bad the industry is getting paid for the work that we do. And I think, we believe that reimbursement, and billing should be a core competency of the company. So. we’re spending a lot of time resources and energy, I would say doing innovative things that we think will significantly improve our ability to get paid for what we do, but Jeff, do you want to give more…
Jeff Sherman: Yeah. From an overall NGS perspective, look, I think roughly 60% plus of the revenue per test is driven by just NGS, mix and price within NGS, and then the balance would be revenue cycle initiatives, and other modalities that we’re seeing growth in. And so, again, with that relatively low penetration percentage of our total clinical revenue, and our continued focus on driving that, we do see an opportunity to continue to drive that. Again, I wouldn’t extrapolate one quarter, but we’ve got 10% revenue per test year to date, and it has clearly stepped up from where we’ve been, the previous eight to 10 quarters before that.
David Westenberg: Got it. And just real quick one — well, maybe it’s not really that quick, but just thoughts on PAMA, if and when it returns, I wish to think about that for ’24, ’25, in terms of our model? Thank you.
Chris Smith: You want to take that, Warren?
Warren Stone: Yeah. I mean, if and when it returns, I mean it’s difficult to actually understand exactly how it will impact. Certainly, some of the lower value modalities is certainly where some of the cuts are isolated at the end of the day. As we look forward into the future, we don’t see that has a material impact to job performance. Certainly, if it does materialize, it will be a marginal headwind to AUP, but nothing too material because it is with the lower value modalities that are in focus.
David Westenberg: Thank you.
Chris Smith: Thanks, David.
Operator: Okay. The next question comes from Tejas Savant with Morgan Stanley. Please proceed.
Madison Pasterchick: Hi. This is Madison Pasterchick on for Tejas. Congrats on the strong quarter. Just looking at the guide and what it implies for fourth quarter, could you maybe give us some color on why you think about the sequential — like, flat sequential growth for top line is a fair assumption for the quarter, and is there any conservatism baked into the guide? And what are you assuming on a budget flush there for pharma at the midpoint?
