Jim Salera: That’s very helpful. Maybe one more question on the ACTIVE line. I know we’re still early days. Is there kind of a line of sight to expand the product offering there beyond just kind of your core protein and amino acid blend? Are there other products we could think about, whether it’s like either supplements or like a pre-workout that would be complementary, or is that too much kind of outside the core of what you’re trying to do?
Dan Chard: Yes, the plan is to extend the line with products being launched next year. Again, reflective of what we learn about this initial launch. But we’re already receiving feedback from and had already identified some close-in opportunities to make the line more competitive and more complete. So, the intention is to introduce additional products next year.
Jim Salera: Okay. Great. I’ll hop back in the queue. Thanks, guys.
Dan Chard: Thank you.
Jim Maloney: Thanks.
Operator: Our next question comes from the line of Doug Lane with Water Tower Research. Please proceed with your question.
Doug Lane: Yes, hi. Good evening, everybody. And the case for the GLP-1 is pretty compelling, Dan, that you make here. And I understand wanting to add it to your product offerings. I guess I look at your balance sheet, I would just assume that outright acquisition makes a lot of sense. That’s what WeightWatchers did. But you mentioned a number of other possible arrangements, partnerships, investments, et cetera. Maybe help us understand why something other than an outright acquisition could make sense here?
Dan Chard: Sure, Doug. It’s good to hear from you. We have been taking a very thoughtful approach to this. Initially, we were evaluating what role GLP-1 drugs might play in a coach-centered habit-based model. We moved from analyzing to exploring by partnering with three different telehealth companies. And that’s allowed us to get a feel for what we have that’s complementary, what they have that gives us the ability to make this offer compelling for our customers and our coaches. What we found is there’s some things that we do very well that telehealth companies don’t, and there’s some things that they do very well or they have a capability of doing that we don’t have the capability of doing. But there’s a lot outside of that crossover.
So, as we’re moving into this next phase, we’re trying to ensure that we do what is right for the business and, by that, I mean both coaches, clients, but also our financials. There are different levels of success and profitability inside telehealth companies, and as you know, we have one of our success marks in the past has been high cash generation and improved margins. So, we’re thoughtful about how we maintain that, but also have the potential of leveraging some of these outside capabilities. So, it’s an evaluation and that evaluation is being made on an even deeper level now that we’re moving into phase two of these pilots.
Doug Lane: That makes a lot of sense. That’s good color. I mean, can we see an instance where you start with an investment — or start with a partnership, moves to an investment, moves to an acquisition? I mean, this could be a multi-stage process, right?
Dan Chard: Yeah, absolutely. I think one of the things that we are all very aware of is this — while GLP-1 drugs in the first generation and second generation have been around for a while, there’s a lot of changes that are taking place, including insurance coverage, including different types of products that are coming out or are currently in testing. So, we’re watching very closely, making sure that we remain nimble and we’ll do what’s right for our investors and what works from a capital standpoint. I think you pointed out accurately, Doug, we have a lot of flexibility because we have no debt on our balance sheet, strong cash position, and the ability to make a lot of good decisions for the long term, as the long term start — continues to unfold and we learn more about the market and how it works inside our model.
