What that provides is the ability to have a lot of negotiation leverage with suppliers as well as start to pull other levers to offset that. And so I would say that we’re less concerned around cost creep just because we have the conviction in our ability to offset that. With that said, similar to other investment levers, we constantly assess the gross margin levels that we currently have relative to are there other mechanisms that we might be missing to enhance and improve the overall customer experience, the wall might face a little bit of near-term pressure on gross margins will come in the form of benefit of longer retention as well as just an overall better customer experience. And so that’s usually the trade-off that we’re making, we’re considering at this point in time versus worrying about the macro factors that we’ve largely been able to more than offset thus far.
Operator: George Hill from Deutsche Bank has the next question.
Maxi Ma: It’s Maxi on for George. My question is related to churn rate and retention. I know you guys are not disclosing the specific churn rate, but you talked about it being in the mid-single digits last year. Can you give us an update on where it is trending now? Just curious if you started seeing any changes in consumer behavior given the inflationary pressure.
Yemi Okupe: Yes, I think what we see is — we’re generally seeing consumers, even the newer cohorts, come on to the platform at a very strong pace. Like what we highlighted earlier in the year is the fact that a critical element of our success was the ability to — or what would be the ability to maintain long-term retention north of 85%. What you see in the guidance that’s showing up in the form of the top line as well as the bottom line is largely our ability to do that. And so in addition to focusing on retention and through a variety of factors such as improving the customer experience as well as investing in the product, you start to see revenue per customer expand actually quarter-on-quarter. This is one of our most — one of our significant gains quarter-on-quarter. And so as a result of these investments, we are just seeing the platform overall become stickier. And as a result, we’re starting to generate more revenue per user.
Operator: We’ll take our next question from Joy Zhang SVB Securities.
Joy Zhang: Congrats on a great quarter. Just one question for me on the Hers side of the business. First of all, I want to say that it’s wonderful that you’re removing the stigma in women’s special health with your recent launch on the, let’s call it, small devices side. But at the same time, it’s also a fairly crowded adjacent market that I see a lot of women’s clothing brands and the likes play in. With that in mind, can you comment on what that means for you competitively as you’re moving from a pure telehealth company to more of a consumer retail or e-commerce
Andrew Dudum: Yes. Thanks, Joy. Great question. I think the Hers offering is something we’re really excited about. And frankly, I think, specifically on the mental health side, it has a lot of similarities across the categories that we’ve operated in from the beginning, which is bringing forward a consumer-centric access point for great health and wellness services. So it’s consumer-oriented in every way possible, right? And so that’s us reevaluating the entry point, the questions that we collect, the information that the patient provides, how they provide it, how they engage with their provider. But ultimately, the core business will always maintain itself as a medical relationship with providers, right? We are a marketplace in that way and connecting you to expertise is what we do best.
