Amanda Douglas: That’s helpful. Thank you.
Jeff Kuo: Thanks, Amanda.
Operator: One moment for our next question. Our next question comes from the line of Rick Patel from Raymond James. Your line is open.
Rick Patel: Thank you. Good afternoon everyone. Can you talk about what’s embedded for OpEx as we think about your EBITDA margin guidance for 2023? I’m curious how we should think about the potential to leverage either marketing or other SG&A. Jeff, you talked about the progress made with OpEx. I’m just curious if the demand environment does often further, where do you see room to have better control of OpEx?
Beth Gerstein: Maybe I can just start that and just framing it in terms of our overall longer-term growth outlook. I think it’s really important that we’re investing behind initiatives with proven ROI. And I think we’ve seen a lot of momentum here. So part of I think what’s driving the guidance for the year is really leaning into some of these growth initiatives, which I think positions us really well to grow market share as well as experience that multi-year strong CAGR. Jeff, maybe you can go into the specifics in terms of what’s embedded and how €“ what kind of leverage we have.
Jeff Kuo: Sure. So embedded in how we’re thinking about OpEx for the year is a continuation of investments that we’ve been making in 2022 to set the stage for our ongoing long-term growth with appropriate discipline and prudence in terms of being cognizant of the environment and working towards driving €“ exiting 2023 driving leverage year €“ on a year-over-year basis in adjusted SG&A. So as we exit 2023 working towards that. And in terms of how we would manage I think there’s a couple different examples I can give. For example, one, marketing is something that on an ongoing basis, we manage dynamically to adapt to conditions and demand that we’re seeing. Employee costs are another area where we can dynamically manage the customer facing workforce to meet the demand that we’re seeing across showrooms, across e-commerce and different areas.
So I think what you can €“ you probably tell, like there’s a theme of nimbleness and agility in terms of how we manage those costs. And I think it shows in some of the Q4 results how we were able to deliver adjusted EBITDA that was ahead of our expectations. And I think that’s a reflection of the capabilities and the success of our team in managing even in a very dynamic and uncertain Q4 that we faced
Rick Patel: And can you also talk about what revenue guidance assumes in terms of AOV versus orders? I know you don’t give guidance by a line item, but I’m just curious if AOV €“ the decline in AOV accelerated on a year-over-year basis in the back half and just given you are leading into fine jewelry, should we expect a continuation of double-digit declines in AOV as we think about 2023? Just some context on the puts and takes for the KPIs would be helpful.
Jeff Kuo: Sure. So as you mentioned, we don’t provide specific guidance on those line items. However, how I might think about some of those areas would be one for AOV as with respect to fine jewelry with our continued growth there do expect that since fine jewelry has a lower average price point that there will be declines year-over-year in on an aggregate basis. One thing for a Q4 specifically, Q4 is seasonally our biggest fine jewelry quarter. And so that €“ you do see that effects as you think about Q4 relative to non-Q4 quarters. So you do see more of that seasonal fine jewelry effect. And as we talked about for the call, like, we could €“ we saw for Q4, we do continue to see strong order growth and I think we’re very excited by that, the growth in orders, the growth in number of customers served, I think just really reflects the resonance and the success of the Brilliant Earth brand.