And at this point, what we’re launching really is representative of that.
Jailendra Singh: Okay. And my follow-up is more around some technical details on your mental health business. I think this is — you disclosed this for the first time, 125,000 subscriber count. My understanding is some of these members might be on the platform for counseling and therapy sessions. How does that get captured in your AOV and net orders calculation? Help me understand that.
Andrew Dudum: The overwhelming subscribers within the 125,000 are getting treated holistically with provider for psychiatric care. So that includes ongoing care with a provider for things like depression or anxiety the chronic treatment of that, adjusting of these medications. And so I think overwhelmingly, just for a little bit of color and context, the source of those subscribers fits into the more traditional psychiatric medication management.
Operator: Your next question comes from the line of Jonna Kim of TD Cowen.
Unidentified Analyst: This is Katie on for Jonna. I was just wondering if you could provide any sort of update on Hers, it sounds like that’s a very successful platform so far. How do you think about the key catalysts over the next year to 2 years for that platform? And any learnings so far from Q3?
Andrew Dudum: Yes. Thanks for the question. The Hers business is probably one of the more exciting parts for all of us. It’s doubled year-over-year, the number of subscribers in the third quarter. And the expansion is really coming from the investment in a lot of the personalized products that we’ve rolled out across dermatology, across women’s hair care as well as a lot of the underlying efficiency and customer improvements in the mental health businesses. So the mental health categories for women as well as those dermatology categories, some of the fastest-growing categories in the company. And as I was mentioning earlier, are approaching the point where they’re really delivering kind of close to kind of gold standard unit economics.
And so it’s been 6 to 12 months of optimization. I think we are still on the cusp of some more to go, but very clearly approaching what we took to be excellent. So I think there’s diversity within there, which is exciting. There’s also quite a lot of personalization adoption in the last couple of quarters that has been very exciting and quite a bit more to come. And we think coming into the new year, there’s going to be some powerful additions to the portfolio of offerings not only within weight management, but also within mental health that are taking advantage of some of the more sophisticated pharmacy capabilities we have at our affiliated pharmacies comparing really unique treatment compounds and experiences to customers. So a lot of high conviction there, and I think the unit economics are shaping up to be what we believe they are capable of.
And so we hope to be able to continue to lean in there and stage gate more capital and continue to scale those more aggressively.
Unidentified Analyst: Okay. Great. And then just as a follow-up, it sounds like there is a slight implied deceleration in that Q4 revenue guidance. Is there any chance you can provide some color on those assumptions and sort of what are the puts and takes to that Q4 revenue number?
Yemi Okupe: Yes. I think that’s a great question. I think really that we are assuming that the momentum that we’ve seen with more and more subscriber ads coming on to the platform will continue throughout Q4. I think as mentioned earlier, also embedded in the guidance is our ability to pass or basically mitigate any headwinds from the pricing changes that we made in the second quarter through having a greater share of new users come on to the platform to the personalized product as well as starting to see the benefit from stronger retention start to emerge. In the fourth quarter but really I think will continue to perpetuate throughout 2024. And so I would say that much of what we’ve seen in the fourth quarter is continued momentum. I think there are very few headwinds that we’re anticipating in the fourth quarter.
Operator: Your next question comes from the line of George Hill of Deutsche Bank.
George Hill: Two quick ones for me. I got in a little bit late. I don’t know if I missed this comment. Did you guys discuss churn at all? And to what degree kind of the changing economic environment is having on membership churn? And then, Yemi, I wouldn’t expect you to give formal ’24 guidance yet. But just as we think about the ramp towards 25, I was just wondering if there’s any meaningful headwinds or tailwinds as we think about next year that you guys would want to call out in advance.
Andrew Dudum: I’ll talk about the first one. We didn’t explicitly speak through any new disclosures on churn, but we did speak to the fact that there’s been really no material changes in customer behavior from a market dynamic structurally that we’ve seen even with the kind of difficulties outside our walls. We haven’t seen those come and cause issues internally, so we’re fairly consistent. We did speak to the fact that the business is now seeing quite rapid adoption of personalized products with north of , I believe, as disclosed of new customers adopting personalized products in the quarter. And those customers and those products, we have seen indications of increased stickiness and retention and believe underlying that is just a customer’s ability to personalize and adjust and tweak and have conversations with their provider to deliver something truly unique to them ultimately is resulting in happier customers and improved clinical efficacy.
So those are really the 2 things that we touched on prior.
Yemi Okupe: Yes. And the second part of your question, it is too early to give an outlook for 2024 at this time. But we really are energized what we’re seeing pick up in 2023 and really how we’re seeing the end of the year start to culminate. And so I think that we do see the trends that Andrew mentioned around personalized product adoption more than likely, we’ll start to continue to roll out a broader set of those capabilities across 1 more category, continuing to see efficiency gains in our affiliated pharmacies as we complete the migration of that later this year. And then also just the learnings that we’re starting to get from many of the brand investments in marketing. All of those are culminating into a lot of positive tailwinds that we see continuing through 2024.
And so that’s one of the reasons why we have the conviction in our ability to generate positive net income within the first half of 2024, just as a result of really all of these things starting to come together.
Operator: And we have a follow-up question from the line of Jack Wallace of Guggenheim.
