Jim Maloney: Yeah. I mean, when you look at our metrics, and really I’ll just speak to our metrics, when you look at retention of customers, when you look at average revenue per order, those types of metrics have held steady in the month of October. It’s really — the customer acquisition is the one metric that we’re seeing that is below our historical norms, and that is reflected in the guidance we provided.
Linda Bolton Weiser: Okay. And then, I guess I can do the math, but Jim, what are you guiding for tax rate for the fourth quarter?
Jim Maloney: Yeah. For the fourth quarter, just to step back on the tax rates, so, we’re actually seeing that the — so as we noted in the earnings release, we finalized our 2022 tax return in Q3, and as a standard practice, we adjust prior estimates to the actual amounts per the tax return during this timeframe. Typically, it’s not this large of an adjustment, and we actually weren’t anticipating it to be that size, but it’s really just a one-time adjustment. You can see that we’re projecting on a full-year basis our tax rate to be between 20.5% to 21.5% on a full-year basis. So, on the quarter basis, I wouldn’t expect that you’re going to see 12.9% again. You’re just going to — you’re going to see something much closer to the 20% level.
Linda Bolton Weiser: Okay. And is that one-time tax benefit? Is that cash or non-cash?
Jim Maloney: That was a cash benefit that we got in 2023.
Linda Bolton Weiser: So, it’s essentially reflected in your year-to-date cash flows?
Jim Maloney: Correct, yes.
Linda Bolton Weiser: Okay. Got you. Thank you very much.
Jim Maloney: Thank you.
Operator: Our next question comes from the line of Jim Salera with Stephens Inc. Please proceed with your question.
Jim Salera: Hi, guys. Thanks for taking our question. I wanted to ask a little bit around the consumer that seems to not want to engage with the medically-supported weight loss. To be honest, a 50-50 split is frankly better than we would have anticipated, just given all kind of the headline news about the GLP-1 drugs. Can you maybe offer some color around what their hesitation is to use kind of the pharmaceutical option on that? And is that something that maybe over time their opinion could change?
Dan Chard: Yeah. Jim, this is Dan. I think this has been an interesting part for us too, because I think, what we — I’m not — we would have expected something slightly different as well. But I think that set of consumers are those who are, I’ll say, more confident in their ability to do it on their own and don’t feel like they are ready for medical intervention. What we do know is that as the amount of weight loss an individual has to lose goes up, their interest in medically-supported weight loss goes up as well. But equally important for us was that we saw that those individuals who were interested in medically-supported weight loss were also those individuals who were most interested in the OPTAVIA program. So, we tested a variation on our program that specifically designed and focused on helping those who are either thinking about using medically-supported weight loss or who are currently using medically-supported weight loss.
And that group was roughly 4 times as interested in our program as those who were not interested in medically-supported weight loss. So, really it’s about their confidence in doing on their own and their ability — or their need for greater weight loss in terms of overall weight to lose.
Jim Salera: That’s helpful. I think in your prepared remarks, you mentioned that you were working with a select group of coaches to help kind of train them on the cross-sell with the GLP-1 drugs. Could you just give us an idea for, was it just kind of a random selection of coaches and you just wanted to have a smaller pilot program, or were they selected based on maybe their existing customer base that might be more susceptible or more likely to pair the GLP-1 drugs with your program?
