Crystal Landsem: It’s more a signal of the macro environment versus anything else.
Tiffany Smith: And then I’ll jump in and on the — you had a question about stock compensation, feel free to chime in if I misheard it, but just to give you some year-over-year perspective on that we’re going from ’22 into ’23 — at the low end, I would say, I provided a range of $16 million to $19 million in terms of stock comp expectations for ’23. And I’m going with a range for this year. For probably, I would say, 1 main reason. One main reason is that we’re — we’ve put into place a lightly restructured performance bonus plan for our employees this year, that’s shifting away from a cash-based bonus to a stock-based bonus. This is entirely for our executives tied to key metrics, revenue and adjusted EBITDA. And for other bonus eligible we’ll have similar performance — financial performance based .
So there’s going to be some flex there in terms of how high we go in terms of that range. So that’s why I provided you with a range there. But otherwise, in absence of that plan, I would say, our stock comp year-over-year would remain relatively flat from ’22 to ’23 with 1 exception that was highlighted around some acceleration related to Davis options that were forfeited, that’s getting accelerated into Q1. However, most of that would have been normally recognized throughout the course of the year. That’s sort of just being more front loaded into the year, I would say. Let me know if that answers your question.
Operator: Our next question comes from the line of Lorraine Hutchinson with Bank of America.
Unidentified Analyst: This is Alex for Lorraine. And congrats, Tiffany. On the full year adjusted EBITDA guidance, can you just elaborate on which investments in key growth initiatives you’re referring to there that will cause the pressure? And then do you have any flexibility on the expenses as you kind of observe how sales trends play out?
Crystal Landsem: Thank you so much. It’s a great question and happy to answer this. So just in terms of the — I’ll kind of start from your second question, Bruce. There is a lot of variability in terms of our cost structure, where we are able to make quick adjustments as needed as sales come in better or worse than what we’ve anticipated. We have levers there that we’re able to pull. And in regards to the overall adjusted EBITDA and the investments that are resulting in some of the fixed cost deleveraging this year. I can’t provide you a lot of specifics, but I would just say for us, as a company, it remains really critical to be committed to growing for the long term, which includes employee-related costs, payroll costs, things like that, where it’s very important to continue to have our key strategic initiatives, the original ones that were laid out with our IPO moving forward.
And so we’re not making any sort of changes to our strategy. We’re fully bought into who we are and where we’re going. And so we’re wanting to maintain those investments, keep initiatives moving forward so that we’re not positioned in a spot where we come out of this downturn in the economy, and we’re not poised for growth. So we’re really committed to remaining poised for what’s in the future and the ultimate turnaround in the economy.
Operator: And we have reached the end of the question-and-answer question. And I’ll now turn the call back over to Crystal for closing remarks.
Crystal Landsem: Thanks, everybody. We appreciate your time and continued support and looking forward to our next call. Have a great rest of your night.
Operator: And this concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.
