And I think we as a marketing team are just thrilled to really be able to share those stories and let people see in to our world. And these are things that we are excited about and have been experiencing for decades. But these campaigns really allow us to go into detail and share those stories with a larger audience. Really, really excited by the responses that we are seeing to those campaigns. We are learning a lot. We are seeing some really great engagement and traffic results, particularly on digital, with those campaign. So as John mentioned, we decided to start telling these stories because of questions and interest we were getting from current clients. And just seeing existing clients and also future potential clients really engage with them is really, really exciting.
So more to come from that, but really excited about what we’ll see through the rest of the year there.
Jonathan Matuszewski: That’s helpful. Thanks Jen for the color there. And then I guess just a follow-up, we could get an update on anything you’re seeing regarding cancellation rates, whether you’ve seen any deviation there from historical levels. And I guess, relatedly, I think last year you called out at one point consumers choosing to postpone their orders and that kind of having an impact on when revenue may have been recognized or I guess postponed their receipt of deliveries. Are you still seeing that dynamic? Any color there would be helpful.
John Reed: Yes, I don’t delay, I’m certain we have not seen any increase in cancellation rates, number one. They hold steady as they have been the last quite a few years. So that’s normal case. We’re actually doing a little better than we had been. And we’re not really seeing people now delaying orders either. Sometimes you see that obviously when people are renovating their homes, as we know, people aren’t moving as much as they had been, but people are at least in our category, renovating quite a bit. And most builders in that have caught up at least telling the clients an actual date that they can stick to. So things are getting better in that field. We’re not seeing people delaying like we did last year. So we’re not seeing that it’s going to be a factor at all.
Operator: Thank you. Our next question is from the line of Peter Benedict with Baird. Please go ahead.
Peter Benedict: All right, guys. Thank you. Thanks for taking the question. Good morning. Kind of a question around kind of the top-line cadence, how you’re thinking about the recovery over the course of the year. You talked a little bit about some of the macro drivers there, but just maybe unpack that a little bit. What you’re thinking in terms of just sector demand. You guys have clearly been doing better than the sector, but just your view there and help us understand that maybe the cadence of that $75 million backlog release that you saw in 2023. Just so we understand the comparisons on that. That’s my first question.
John Reed: Yes. Good morning, Peter. Dawn, you can help me with this one. But what we’re seeing is, as we’ve been saying all along, last year was strong, very strong. Our new products are just resonating so well. And I think we’re just dead on with what people want these days. And it’s a very unique product. We think we’re way ahead of the curve from our competition on products. So we think people are responding. And as we’ve opened up so many new stores every day, we’re getting new and — more and more new clients coming in, finding out who we are because we’re a relatively unknown brand, especially on the West Coast, and they’re resonating. It’s amazing how people walking in who really don’t know our brand and are purchasing from us because they just fall in love with our product, fall in love with our showrooms and fall in love with our designers who are just fantastic.
So that part is great. And I’m seeing the lineup of new products and so forth strong. And that’s what we’re all about selling great products. And the more we have better products and the more people know about us, the better we’re going to be. We’ll just continue to grow. Dawn, you want to add on to the other part of that?
Dawn Phillipson: Sure. So I think just to reiterate what John was saying, we feel so great about the new product introductions, the marketing materials, the new showrooms that were opened in the fourth quarter of last year, we’re so excited with how those are performing and the clients engagement within those locations. So as we think about demand in the first quarter, January was a bit soft. February accelerated nicely. So I think as we’re thinking about the demand cadence that, that will impact a little bit in the first quarter, but really feeling great about all of our offerings, how we’re engaging with clients and switching to think about net revenue. As we move through the year, we do expect sequential acceleration. So every quarter we expect net revenue to improve a bit.
And that’s really going to be driven by new showrooms that open not only in the fourth quarter of this year, but showrooms in 2024 are slated heaviest in Q2 and Q3. So we should see some nice benefit in the back half from those openings as well. As we think about backlog in 2023, it’s relatively evenly split between first half and second half. It’s slightly heavier weighted towards the second half.
Peter Benedict: Okay. That’s helpful. Thank you. And then just maybe on the turn to the sourcing side of things, transportation was a benefit for you guys in 2023. Just curious what you have kind of assumed in your plan for 2024. Remind us kind of the geographic exposure you guys have in terms of where your product is coming from and just any thoughts on all the activity, the Red Sea and what that might be doing to your inbound rates, ocean freight. Thank you.
