Justin Kleber: Got it. And just an unrelated question, you mentioned price €“ another round of, I guess cost increases and therefore, price increases that need to be pushed in the system. If we eventually enter a period of deflation as input costs decline, how do you guys think about the ability to sustain all this pricing that’s been taken here over the past few years, particularly in the consumables category? Thank you.
Sumit Singh: Yes, we think pricing will sustain because most of the pricing is getting translated or applied in the industry through MAP pricing and MAP prices are generally sticky. So, you see less variability and therefore more stability at the same time. So, we expect these to be sticky.
Justin Kleber: Alright. Got it. Thank you both. Best of luck in the holidays.
Sumit Singh: Thank you.
Operator: Thank you for your question sir. Our next line of questions comes from the line of Chris Bottiglieri from BNP Paribas. Your line is now open.
Chris Bottiglieri: Hey guys. Thanks for taking the question. You made a small bolt-on acquisition of PetaByte Technologies in November. Can you talk more about what capabilities this gives you and how it fits into your broader ambitions in the healthcare space?
Sumit Singh: Yes. Sure. So, PetaByte is a relatively small acquisition of a cloud-based provider of technology solutions for the vet sector that we completed in November. We are excited to welcome the PetaByte team into the Chewy family. And we see opportunities €“ significant opportunities associated with adding PetaByte’s technology to our broader portfolio of healthcare service offerings. And today, there is not much more to comment because we are €“ it’s early stages and work has just begun, but we look forward to sharing more with you in the quarters to come.
Chris Bottiglieri: Got it. Okay. Thanks. And then I guess the next question is, can you just talk more about the €“ I guess, the basket size is what you are seeing there? Are you seeing your basket size has grown. It sounds like discretionary is under pressure. So, it’s like you are adding more discretionary. What’s driving the bigger basket sizes, are people trading into bigger package sizes in order to save more money per unit is inflation, or is this just €“ are you finding more ways to attach like healthcare products and stuff like that, and that’s what’s driving?
Sumit Singh: It’s a combination of pricing strength and our complementary growth on the healthcare side. We have come up with several different complementary products to add to the simple consumables and supplies purchase. So, as attach rates for highly discretionary categories such as toys, perhaps is near-term impacted, right. The attach for pharma drugs, other products such as insurance, telehealth, these are all additive to the basket size. Autoships have higher basket sizes than non-order ship orders and our ownership percent has continued to increase. So, that’s the contributor in improving basket sizes as well. But this is all in place.
Chris Bottiglieri: Got it. Okay. Thank you.
Operator: Thank you for your question sir. Our next line of questions comes from the line of Seth Basham. Your line is now open sir.
Seth Basham: Thanks a lot and good afternoon. My question is on customer acquisition costs. You know that gross customer adds increased 6% sequentially, while your advertising and marketing expense increased 23% sequentially. So, your tax was up sharply, were your LTV expectations on customizations changed that much from the last quarter to this quarter to maintain ROI expectations on new customers?
Mario Marte: Hey Seth, this is Mario. I will start off and maybe Sumit can cover something. The customer, you said that our gross adds were up 6% quarter-over-quarter. So, expand on that one, I am trying to make sure that I answer your question correctly.
Seth Basham: I believe that’s what you said in the script and in the shareholders letter?
