George Kelly: Okay. Great. And then last question for me. I’m just trying to sort of map out your year when it comes to getting to your annual revenue guidance and how that should look quarterly? Is there much seasonality? The business has been kind of influx for a little while now. And so, I’m just trying to map out like what’s normal seasonality? Maybe there still isn’t any kind of normal seasonality now that you’re sort of back in growth mode. But any help on mapping out the year would be appreciated.
Jason Vieth: Yes. George, I’m going to give that to Anya. She’s been dying for someone to ask a question she could answer. So this is — I’m going to give that to Anya.
Anya Hamill: George, yes. So yes, there is some seasonality to our business. So fall with the pumpkin creamers and then also holiday season with the peppermint creamers are big seasons for us. So those shipments happen ahead of those times, so in Q3. So that’s where we expect to see our seasonality most pronounced is in that quarter. No, I was going to say –. There must be a delay or something happening. And e-commerce, of course, with the prime day happening actually maybe 2 prime days in the second half, that’s also, we expect higher seasonality driven by that.
Operator: The next question comes from the line of Alex Fuhrman with Craig-Hallum.
Alex Fuhrman: Congratulations on another really good quarter here. I wanted to ask about your promotions and discounts. I noticed for most of this year now, there has been substantially less discounting activity on your direct-to-consumer site. Really any sales you’ve done, look like they’ve been pretty targeted either to specific items or very, very limited time type sales. So just wondering if you’ve had any meaningful customer churn as a result of this. Or if maybe some of your customers have been ordering less as these discounts have come down? Obviously, customers of yours aren’t pulling back too much considering you’re raising your revenue guidance for the year. But if you can just talk to us at all about how customer behavior may have changed as you’ve become a lot less promotional? And has it been a little bit harder to go out there and get new customers without these periodic sales?
Jason Vieth: Alex, good to hear from you and good question. Yes, we just had this discussion — we had discussion quite a lot recently because this really what this was — this is the result of a big strategic shift that we had on the DTC side. A couple of years ago when I came in, our DTC site was essentially a big sales platform. We had a bunch of products listed, not really any content. And we ran increasingly after the iOS changes that busted Facebook, we ran more and deeper sales in order to draw consumers in. And what we found, as I came in to look at this is, we had really taken our brand downmarket. And so, there has been a strategic shift underway for the last 18 months that what you’re seeing now is a manifestation of that, where we now have to go to the DTC site, you’re going to stand into our e-mails, what you’ll see is, we have an enhanced content strategy.
So we’re really bringing news, cultivating some of the stories that are out there that we’re aware of that we want to make sure our consumers are aware of with regards to health and wellness and fitness and nutrition and lifestyle and overall wellness around it. And so, we cultivate those. We bring in some Laird and Gabby specific content. We include other content that we’re able to link to that we feel is advantageous to our consumers and give them a reason to be there. And in doing that, we’ve also pulled back on the level of promotion. We did take price up on the channel a while back. We pulled back promotion but we left a really nice subscription benefit. But what this has done behaviorally to your question is, it’s allowed us to pick up a much larger set of subscribers.
So I mentioned in that prerecord that we’ve turned consumers into buyers and buyers into repeat buyers and repeat buyers into subscribers. And that’s the funnel kind of that virtuous cycle that we’re really trying to pull people through. And as we do that, they improve their health and we are able to lock in a consumer for a longer period of time, obviously and usually into more products. And so, it’s really a harmonious win-win for the consumer and for us when we’re able to do that. So about — right around 50% of our total DTC sales are now subscriptions. All those subscriptions are coming at a discount. So you’re getting essentially our best sales, typically our best sale that we run is going to be that free shipping plus 20% off that subscribers receive.
We do now a couple of — just a couple of events through the year with very few sales but what we do it’s a very big event. So Black Friday is one of those. And we try to execute those very minimally so that we’re able to really retain that premium brand image that we’re seeking to have.
Alex Fuhrman: Okay. That’s really helpful. And then just one on the numbers here, your returns and discounts, as you report your sales by category. It looks like the lowest rate of returns and discounts you’ve had in about 1.5 years, kind of continuing on that trend moving in the right direction last quarter. Is there anything in particular that’s really driven that improvement? And should we expect to see the improved results sustained throughout this year?
