Sumit Singh: No. Corey, did you have a follow-up? Or was that the main question?
Corey Grady: Yes. If I can, I’ll ask a quick follow-up. I would love for you to just say more about the sponsored ads beta? I mean I don’t know if you can share speak to any initial learnings, customer feedback? Any update around timing of full launch? And any change in how you’re thinking about the long-term opportunity?
Sumit Singh: Sure, sure. So we’re pleased with the progress of the sponsored ad vertical. The beta that we launched in Q4 has continued building towards the full product, which we expect to have live in the first half of 2023 as per original expectations. Our team is hard at work right now on the supply side of the platform, where we expect to deliver a great customer and partner experience with improvements in ad serving, tracking and relevance. The reception from brands has been and continues to be positive, including the reception on our ROAs framework. So we’re looking forward to the program launch in first half and then continuing to ramp throughout 2023 and into 2024.
Operator: Our next question is from Seth Basham with Wedbush. You may proceed.
Seth Basham: My question is on gross adds. Good to hear your continued mid- to high single-digit growth there. As you look to 2023, you’re expecting that type of growth to continue, and what does that mean for advertising growth?
Mario Marte: Yes. Seth, this is Mario. So yes, so we are continuing to see strength in gross adds versus the pre-pandemic. In fact, you’ve heard us talk about all year that we’ve been in the — somewhere in the 6% to 10% range, give or take, increase versus the same quarter 2019, and that continued into Q4. So that’s a good indicator for us, the strength of the platform. For ’23, let me not try to split out between gross adds and net and retention initiatives. But you’ve heard us certainly explain what we think is going to happen to our — we project is going to happen to our active customer base and how we expect it to grow in the second half of the year. But it’s going to be a combination of those two things, continue to reactivate and add brand-new customers and work hard to keep the ones that are on the platform.
Seth Basham: Okay. Fair enough. And then as a follow-up, just thinking about the 2020, 2021 cohorts with the churn rates. Are those churn rates higher than you expected even just three months ago? And how is the 2022 cohort repeat purchase behavior trending?
Mario Marte: Let me see if I can decouple that into the two separate questions. The — when it comes to the ’20 and ’21 cohorts, the retention levels have continued to remain more or less what we expected, and we have been talking about for several quarters now. High, but it’s still low single digits, lower than pre-COVID cohorts. And that has been pretty steady for several quarters at this point. The repeat purchase behavior of the 2022 cohorts. Well, you probably heard us say early in ’22 that we were trending to acquire more customers into our non-discretionary categories, the repeatable categories, consumables, health care. And so that’s — the behavior has proven out throughout the year.
Operator: The next question is from Brian Fitzgerald with Wells Fargo. You may proceed.
Brian Fitzgerald: We think this is the first time you provided a specific growth breakout for non-discretionary. Wondering if you could give us some color on how discretionary has been tracking? Have you seen any trend improvement? How are you thinking about cycling the discretionary weakness and potentially getting back to growth at some point in 2023?
Mario Marte: Brian, this is Mario. Let me try to clarify the question here. You’re saying we provide specific guidance. Are you talking about how — when we talk about the discretionary part, how would you expect to break on the trends that we’ve seen recently, is that — just to be specific about?
