Jason Robins: Yes, I’d just add that I think that because of our cash position, were there an opportunity to be aggressive in places, we don’t need capital, whether equity or debt financing. So it’s something, I think, if there was some strategic opportunity or something like that, perhaps we would explore. But from an organic standpoint, we don’t need to. So I think it’s unlikely you’ll see us take out any debt and any — I mean, any equity capital at all. And I think it’s virtually impossible to imagine a scenario where we do so for organic purposes. As far as leaning in more, we are trying to be surgical, and that means not just cutting and being efficient in places that we know we need to be more efficient, but also leaning in, in places where we have the data and the conviction.
That said, you asked the wrong guy in Jason Park. I don’t think he’s met a cost he’s liked in the last year. So sometimes we have to tell Jason, you can’t cut everything. But definitely, the team is, I think, as a result of having a great analytically driven culture and a great amount of data, very confident that there are places that, yes, we certainly are cutting, but we also need to be leaning into as well.
Operator: Thank you. Our next question comes from Ben Chaiken with Credit Suisse. Your line is open.
Ben Chaiken: On the SG&A side, the guide for ’23 suggests maybe up 10% or 12% year-over-year, ’23 versus ’22. I’m kind of bucketing everything between contribution profit and EBITDA. Does that growth rate continue — and that’s relative to a 40% growth rate between ’22 and ’21. Does that growth rate continue to decelerate even as you add new states?
Jason Robins: The growth rate of fixed costs?
Ben Chaiken: Just the whole SG&A bucket, so everything between contribution profit and EBITDA that’s growing in 10% 12% range.
Jason Robins: No. Yes, I think there’s really very little fixed cost impact of launching new states. There’s some customer service sometimes, but we’re also working hard to find ways to be more efficient there. So hopefully, we’re able to offset any need to grow there with other efficiencies that we find. So really, it’s mostly variable cost COGS that we see with new revenue coming in from new states. There’s obviously marketing expense, but not really fixed cost. I think most of our functions are at scale, are pretty close. So that’s why you’re seeing moderate fixed cost growth this year, a significant reduction in fixed cost growth year-over-year. And I also think that the team is working hard to be more efficient. I think that there’s been a real lightbulb that’s gone off here that we can do more and actually grow revenue faster if we become more efficient.
And there’s a connection between being better focused on expense management and efficiency with revenue growth, with doing better for the customer. And I think making that connection and realizing that actually these things feed off of each other, that the better we do to manage our expenses and be more efficient as an organization, the more that we’re going to be able to deliver value for the customer. And that will actually lead to market share gains and revenue growth. I think that’s been a real rallying cry for the team over the past year, and it continues to be in 2023.
Operator: Thank you. Our next question comes from Michael Graham with Canaccord Genuity. Your line is open.
