Suresh Krishnaswamy: Yeah, sure Vivien. Today we announced the 21% headcount reduction, right, to align our construct with the current environment. To put that in context and we have been hyper focused on costs and conserving cash since last year, right? And so the cost reductions today reflect about $8 million of annualized savings, and this is after the $16 million of annual savings from the reductions we announced back in October that we said would take effect in January. So taking into consideration all of these efforts plus additional OpEx cuts, we expect annual operating costs, excluding stock based comp to be a little over 20% lower than last year in this cost level, we can support a similar revenue base and at the same time be well positioned to take advantage of the growth opportunities as they merge.
So to, to give you a little bit more color on that our OpEx structure really last year was about 40% each in sales and marketing and G&A. And with the, the cuts that that we have announced it’s more like 30% in sales and marketing, 30% in TDE and 40% in g n a of course with all, all the numbers coming down. So we have, as part of this sales restructure, really looked at how can we align our strategy with the environment that we’re operating in, continue to focus on our local go-to-market strategy, but again, how can we do that with smaller, tighter, more efficient teams that can respond more quickly on the sales side and just align more closely with customers.
Vivien Azer: That’s very helpful detail. Thank you very much for that. And, and just to follow up then on, on the sales re-alignment, considering the challenging operating backdrop, but does, does your field team have like different scorecard where they would evaluate current and potential new relationships? Obviously there’s, a fixed cost to onboard new relationships, either brands or retail? So I’m just wondering if you’re raising the bar, at all there so that you’re really maximizing the, the effort of that more efficient sales force? Thank you.
Yoko Miyashita: That’s fun. Vivian, and in terms of really thinking through, I’m talking about high, higher value clients, we’re really looking at the segmentation and the opportunity set that exists with Ben existing as on-boarding and on-boarding new retailers. So just getting smarter and more judicious and how we leverage our resources as it relates to on-boarding, as it relates to training, as it relates to client success is a key part of this strategy going forward. And we know based on the value we drive for retailers and brands, that there’s greater monetization opportunities. So how do we put those resources towards those opportunities as opposed to a more broad-based higher touch across many accounts approach.
Operator: Our next question is from Eric Des Lauriers – Craig-Hallum. Your line is now open.
Eric Des Lauriers: Great. Thank you for taking my question. So I know one of the key benefits of, your platform or subscriber base is that, there is a sort of, ongoing recurring payment to you guys that gives you some of that increased visibility. I’m just wondering if you could comment on the overall, kind of stickiness of the accounts that you continue to have, if you’re starting to see any turnover perhaps you know in addition to some of the license or I guess, lack of license renewals that some of these licenses kind of falling off. Just kind of speak to, some of the potential changes in the stickiness of your customers as this macro environment has kind of gotten a little tougher for cannabis? Thanks.
Suresh Krishnaswamy: Yeah, sure. Eric, I could, I could start off with some, some numbers there. overall, I mean retail is about 78% of our, our total revenue. And, and of that total over 80% is subscription like revenue, right? So I mean, half of that is subscriptions. The other half are advertising units that we have a really good history on in terms of placements, so they may change hands, but we have good visibility and, and confidence in that continuing and, and that really has led to sort of more predictability and, and stickiness on the retail side. And, and you kind of see that in the numbers, even though growth has slowed on the retail side and the numbers we continue to see quarter-over-quarter increases and, and we’re certainly projecting those, those increases this year as well.
The variability has been more on the brand side as we’ve talked about in the second half of, of last year we, we saw the slowdown that has continued into the first quarter so far. That being said, just to give some color it was mainly in January. I mean, from what we’ve seen so far in, March, I mean February and March things have seemed to have stabilized. It’s still very early to make any predictions on, on the brand revenue for the rest of the year, and that’s one of the reasons we’re not providing guidance. But in terms of just talking about the stickiness, we, we did see on the retail side churn continue in the same markets that we kind of saw last year. So, and we’d called out Oklahoma, we continue to see that in, in terms of last year we also saw Ontario, which had churn especially in Q1 of last year.
But it’s interesting that since our partnership with Uber and the value that that’s created for both our consumers and our retailers, we’ve seen little to no churn in Q1 this year in, in Ontario. So just wanted to, give a little bit of color around that.
Operator: There are no further questions, so I’ll pass the call back over to the management team for closing remarks.
Yoko Miyashita: Thanks everyone. We look forward to speaking with you throughout the rest of the year and excited with live ahead. Goodbye.
Operator: That concludes the conference. Everyone else has left the call.
