“Finally, we would expect that procedure seasonality will follow normalized historical patterns, resulting in a tough comparison for the first half of 2024, given the strong procedure growth in the first half of last year.”

In context

“2,280,000 procedures performed worldwide. For 2024, we anticipate full year procedure growth within a range of 13% and 16%. Our overall procedure guidance range assumes that growth moderates from last year, given the elevated backlog benefit we experienced in 2023. The low end of the range assumes a modest decline in bariatric procedures along with challenges in China from increasing competition and anticorruption activities impacting capital placements, and therefore, procedure growth. We also assume there is no impact from patient backlog in the year. At the high end of the range, we assume bariatrics continues at current growth rates, and factors in China do not have a significant impact on our business. In addition, we assume any backlog of patients would decline throughout the year. Finally, we would expect that procedure seasonality will follow normalized historical patterns, resulting in a tough comparison for the first half of 2024, given the strong procedure growth in the first half of last year. Turning to gross profit. Our full year 2023 pro forma gross profit margin was 68%. In 2024, we expect our pro forma gross profit margin to be within 67% and 68% of net revenue. The lower estimate of pro forma gross profit margin in 2024 reflects the impact of growth in our newer products, and the impact of capital investments that will come on to support the growth of our business. Our actual gross profit margin will vary quarter-to-quarter depending largely on product, regional and trading mix, impact of new product introductions and pricing. Turning to operating expenses. In 2023, our pro forma operating expenses grew 14%. In 2024, we expect pro forma operating expense growth to be between 11% and 15%. The operating expense growth reflects increased depreciation expense as we bring on n”