Dillon Heslin: And then as a follow-up, can you talk a little bit about what worked with the mobile app in helping that grow as a part of e-commerce? What were some of the channels that helped you with that customer acquisition? And then, is there — how flexible is your spend on that? Are you able to add to it or pull back based on sort of what you see with both your sales and also just the marketplace?
David Meniane: Yes. Great question. So obviously, we’re very happy with the app. It’s probably one of our biggest accomplishments for 2023. So right now, it’s about 7% of e-com revenues and growing. What we’re seeing is that so all of the downloads and we have over 250,000 downloads were nonpaid organic, so it’s people that come through our website. They get a pop up and they talk about the benefits of the app and they download it. So — and it’s still growing. So what we’re seeing right now is on the app, we have a higher average selling price and we have a higher purchase — repeat purchase rate. So over time, what I think you’re going to see is our nonpaid traffic is going to continue to grow and we should start seeing some efficiencies in marketing.
So if I look at it like taking a step back over the next couple of years, our objective is to get our marketing spend lower by about 100 to 200 basis points and this should flow through to the bottom line. So in the Q — in the K that you’re going to see released later today, I think we called out that our marketing spend was about 12.3% for the year. The goal is to get closer to 10% and all of that to flow through the bottom line. So we’re going to keep pushing the app. And over time, we want to get this to double digits. And so I think we’re going to make it a point to announce the numbers at every earnings call moving forward; how many users we have, what percentage of e-comm revenue and any other metrics that we think are relevant to financial modeling.
Operator: Our next question comes from the line of Ryan Meyers from Lake Street.
Ryan Meyers: First one for me. I’m just curious as we think about the revenue guidance range; what would you need to see or what do you expect to see to, one, come in at the low end of that range? Or what would you expect to see to come in at the high end of that range? Is most of that just due to the price deflation or is there anything else there that we should be aware of?
David Meniane: I mean, I can take the first part, I guess. I’m not worried about volume growth and unit growth. The business is growing in units. We’re shipping out more units than ever before. I think the difference would be the price compression, the deflation based on the competitive landscape. I don’t know if you want to add anything?
Ryan Lockwood: Sure, this is Ryan. I think when we look at the business, what we’ve always tried to do was manage it from a dollars contribution ratio basis. So as we push price to try and maintain margin, there’s a possibility you could see sales start to hit the lower end of the range or on the other side, as we — some of our great investments that we’re working on, such as upsell and cross-sell, improved search, increased assortment at various price points. As these things all hit, I think you see us go towards the higher end of the range. And then, of course, there’s the macro portion which is outside of our control. In some ways, that makes it an uncertainty.
David Meniane: I think for me, like if I take a step back and obviously, this year is challenging from a macro standpoint but the backdrop is still 300 million cars on the road. It’s an aging car fleet, there’s more cars on the road, more miles being driven. The online penetration is still low and we’re one of the strongest — one of the biggest players in a huge TAM. So over the next couple of years, we’re going to take market share. Sales are going to grow. We’re going to do it profitably and we’re just going to push through and execute.
Ryan Meyers: And then if we think about the do-it-for-me offering, do you expect to see any sort of contribution from that initiative here in 2024?
David Meniane: Yes, I’m glad you asked. I think do-it-for-me to get it installed is it’s a big opportunity and it aligns with our vision to remove the friction from auto repair and that was always a long-term bet. And so right now, we have some headwinds in the economy. We’re much leaner. We’re much more agile. But over the next few quarters, what we’re going to do is solely focus on the few things that we think will generate incremental revenue this year. So we have 3 big priorities right now. It’s the e-comm experience in the app. It’s the product offering expansion and it’s the marketing and branding. And so we’re going to try to push the top line first right now and we’ll revisit, do it from me later this year. But we want to be laser focused on immediate growth and anything that’s going to generate incremental top line revenue now.
Ryan Meyers: Got it. Thank you for taking my questions.
Operator: Thank you. This concludes today’s conference call. Thank you for participating. You may now disconnect.
