Julie Andrews: Yes. So, we’re going to be, still analyzing our synergies that we, achieved in 2023. And, we talked about last year that the majority of that was coming from headcount. So, we’ll see that go down in 2023 or excuse me, 2024 as we fully annualize those. In addition, part of it is just, it’s creating leverage on our incremental revenue growth where we don’t believe that we need to invest at the same rate. G&A, and R&D were holding flat to revenue. So, that’s what we’re looking at for our leverage points.
Ryan Zimmerman: Okay. Well, thank you both for taking the questions. That’s much appreciated.
Operator: [Operator Instructions] Our next question comes from Jeff Cohen from Ladenburg Thalmann. Please go ahead. Your line is open.
Destiny Hance: Hi. This is actually Destiny on for Jeff. Thank you for taking the questions. I wanted to quickly talk about the BGT segment. Can you describe some of the drivers that are really helping you grow within this growing market and how your growth rate is comparing to the overall market? And a special shout out to Jason, for getting a promotion. Do you see him adjusting the strategy? Are you as part of your marching orders as previously asked, is BGT growth really central to it?
Massimo Calafiore: Look, this is a great question. We are very excited about this segment for many reasons that I’m sure that you’re familiar with. But if you see how the BGT business is divided, we have market leadership in spine where we have not just an advantage from the technology perspective, but also from the infrastructure perspective. I think what Jason did and the team has built up, a great system to convert all of the order that we have to cash. So, the idea is that, okay, how can we bring all this know how that we have on different market? And then right now, we are focusing on the fracture market where we have a very, very good opportunity right now with very small market share. And so, you will see us really focused on the structure, keep growing well above market and bringing, let’s say, all of the EBITDA and the gross margin positive that we see from BGT. So, let’s say a great a great focus on creating value on additional market and spine right now.
Destiny Hance: Excellent. Okay. And then, Julie, one for you. I really appreciate the commentary around the synergies, especially on the topline, and how it’ll affect adjusted EBITDA. I’m wondering if you could just give us an update on the current headcount, and how the synergies impacted that.
Julie Andrews: So, I think most of the headcount action was taken last year. And, we don’t expect to have much more headcount, impacted or more headcount impacted this year. You can see in our, K, I believe, our headcount numbers. So, it bring there —
Destiny Hance: That does it for me. Excellent. That does it for me. Thank you.
Operator: Our next question comes from Jason Wittes from Roth MKM. Please go ahead. Your line is open. Jason, your line is open. Please go ahead.
Jason Wittes: Hi. Can you hear me now? I apologize. I think I was muted. Hello?
Julie Andrews: We can hear you, Jason.
Massimo Calafiore: Hi, Jason, yes, we can hear you.
Jason Wittes: Okay. Thank you very much. Hi. Just, I know this is, you’re not giving line-by-line guidance by division, but the numbers do look somewhat conservative. Is this just a reflection of, sort of, I think, your stated goals, Massimo, when you started, which were profitable growth versus growth, high growth or growth with heavy investment. Is that the way you should be thinking about it or is it just a combination of conservatism? Just conservatism, but generally speaking, the business trends look pretty good.
Julie Andrews: Yes. I mean, this is Julie. I’ll take that. Our business trends look good. We’re expecting all of our businesses, while we’re not giving line item details, to grow at or above market. And, like I said earlier, Massimo and I are two months into the job. We want to set, guidance where we have confidence that we can execute against it and deliver on that commitment. And that’s what we believe we’ve done with the guidance that we’ve provided.
Jason Wittes: Understood. And then, I don’t know if you said it mentioned anything on 7D. Could you give us some color in terms of placements or what the outlook is for 7D?
Massimo Calafiore: Look, as Julie said, we’re not giving, let’s say, right now specific forecast for market segment. But I said during, something is important to notice that, 7D has been a great contributor of the success of the spine franchise even the last year, like we had 29%, if I remember of the overall revenue that came from 7D. And you know that all of our competitors have been successful leveraging enabling technology. And you will see us really focus on a platform that is unique in the marketplace. So, we are pretty excited about the contribution of 7D, 2023, and what can what we can achieve together in 2024.
Jason Wittes: Okay. Thanks. Maybe just one follow-up. You kind of addressed this, but I’m just curious, kind of what the outlook is. And that is on distributors, it sounds like it’s stable and you’re adding, can we anticipate that you’ll continue to add high quality distributors throughout the year, especially particularly in spine?
Massimo Calafiore: Yes. Yes. Thank you for the question. Look, there is a lot of excitement about what we’re doing today around spine and orthopedics, and we have a very healthy pipeline. So, like, spine market always go through fluctuation. You see what’s happened in the last few years. But, right now, given the recent mergers, there is even, like, a greater opportunity of reps and a distributor to go get. Look, we are fully capitalized to do that and the results on Q4 helped us just to show that the thesis of the part of our product is there. So, I think towards the year, you see, we would be able to keep adding high-quality distributors that is going to that married our vision around what we want to accomplish in Orthofix. So, a lot of deal of opportunities out there.
