Mario Marte: Hey, Mark, on your second question about active customer growth, in the third quarter, you saw that we did increase the active customer account by about 30,000 and up about 100,000 year-over-year. That was in line with our expectations. The increase really is a result of a small uptick in the number of gross customer adds in the quarter and a small reduction in the number of churn customers. As to your point, we continue to lapse the very large COVID era cohorts that we acquired in 20 and 21. You know that, obviously, we don’t guide to active customers just as we don’t guide to NSPAC. But that said, our expectations for active customer growth going into the fourth quarter, remain generally consistent with what we said on prior calls. And that’s all reflected in the guidance we provided for sales and the like.
Mark Mahaney: Okay. Thank you so much. Thank you, Mario. And Mario, congratulations on 8 years of great success in execution. So wishing you all the best.
Mario Marte: Thank you, Mark.
Operator: Thank you for your question, sir. Our next line of questions comes from the line of Anna Andreeva with Needham & Company. Madam, the floor is yours.
Anna Andreeva: Great. Thank you so much. Good afternoon, guys and congrats great results. Two quick questions from us. On higher pricing, I know you have more of a portfolio approach towards managing that. Just any initial thoughts on how we should think about your price versus unit relationship into 23. And as you start lapping the price increases implemented this year? And then secondly, on advertising, it’s fluctuated in the last couple of quarters. Can you talk about what’s implied for advertising for the fourth quarter? And should we think the 5% to 7% range is still the right level for the business as we look out? Thank you.
Sumit Singh: Hi, Anna. This is Sumit. I’ll start, and if Mario has to add anything you’ll jump in here. So first of all, pricing and unit growth contributed about equally to sales in Q3. We grew pricing, but we also grew units meaningfully as we move through Q3. And in terms of lapping next year, so one, obviously, this year, we’ve seen increasingly elevated pricing as we moved from Q1 through Q3. And so the first half of year, there is still positive favorable comps to be lapped. So that’s one. Number two, we are expecting incremental costs, as we’ve shared in the previous calls, we’re expecting incremental cost and therefore, more inflation to be passed through into the industry as we enter 2023. So we believe that’s how the pricing environment would look like as we get out of Q4 into the first half of 2023.
And then, of course, in a similar manner where we’re growing units which is actually structurally different than how industry growth occurred in Q3. In Q3, industry growth occurred primarily on the back of price. But at Chewy grew units and price. We expect to do that in Q3 in 23 as well.
Mario Marte: Yes. Anna, to your second part of the question on marketing spend, we were in the Q4 marketing as a percent of net sales to be similar to Q3 and for the year to be in that 6% to 7% range, given where we are year-to-date.
Operator: Thank you for your questions. Our next line of questions comes from the line of Brian Fitzgerald with Wells Fargo. Your line is now open.
Brian Fitzgerald: Thanks, guys. 30% of volume handled by the automated FCs. Any update or how should we frame up the cost savings that you realized from that? And then as you ramp up to automation and efficiency and then you drive these logistics improvements across the network it drives a better user experience, right? And so have you seen anything in terms of positive impact on engagement, order frequency NSPAC as a direct result of what you’re doing to the network?