Unidentified Analyst: This is Sidney on for Ashley. You noted macro pressure weighing on customer and affiliate growth, but also called out strength in some of your higher price point connected products. Can you maybe just give more color on that dynamic and kind of what you’re seeing in terms of macro-related spending behavior from your consumers?
Ryan Napierski: Yes. It’s a really interesting market. As you know, right, luxury goods continue to move in certain regards, in automobiles and bags, handbags and the like. Our connected device business continues to do well. It continues to be the number one sided social media, eyeball attraction on social media, obviously, for the appeal of the LumiSpa and now RenuSpa in the U.S. WellSpa. We get a lot of attraction to that and people really aspire to purchase those. But nobody can really deny as we look around the globe, pressures in China, pressures in Korea, pressures in Japan. Even in the U.S., as we see that real CPI, these reports that are coming out, no one can deny the inflation has been well beyond probably what’s reported in some of these reports.
And we see that floating through our business as people have to make trade-off decisions around utility bills versus the next Nu Skin innovation. And so we’re very focused on the affordable luxury place. We’ve also, by the way, built Mind 360 to be very price conscious. So this is – I’m excited about that because these are innovations that are needed by the mass markets, the stress and the needs there at the customer level. So we’re being very intentional. We’re being very deliberate. Our – as we look out to the future, obviously, inflation doesn’t increased prices generally don’t roll off, right? You see very few companies that roll back pricing as like Walmart, for instance, try to do as a retailer. Most markets once the pricing of rod goods [ph] is in the system, it typically is hard to pull back out.
So it’s really upon us to figure out how to innovate new solutions to market that feel the customer need at the right price point. And so we see as were as our ability to impact consumers at a more price appropriate level with new product innovations, we see that alleviating and then at the macro level, obviously, as wages increase over time, which we see that that’s continuously going on. We see purchasing capabilities improving around the globe. So our approach right now control what we can control, what we can control is product innovation, and that’s where we’re focused on new products coming to market at the right price points to give consumers what they need and do it at a better level. All the while, I think devices will continue to be a strong appeal because people – the demand for those are high and the interest on social media is – continues to be very strong.
James Thomas: Ryan, I’d add I was going to say, I would just add one point to that on the devices. When we look in the current quarter results quarter-over-quarter, we went from devices made up 14% of our revenue to this quarter, 17% of our revenue. So it continues to have strong demand for our devices and what we look forward to in the back half of the year is that in combination with affordable luxury, to Ryan’s point, of playing in both market spaces, we hope to garner some traction through that.
Operator: Thank you. And one moment as we move on to our next question. Our next question comes from the line of Linda Bolton Weiser with D.A. Davidson. Your line is open. Please go ahead.
Linda Bolton Weiser: Hi. So I was wondering if you could maybe remind us in terms of the beauty device business that you bought, the one that’s distributed to the retail, I think it’s in Alta [ph] How is that informing your rest of your business or core business? Like I kind of need a refresher here on what your intent was? Like is it to get the technology or the marketing know-how? Just what was the intent there? And how is that going? Are you getting out of it what you wanted in terms of that acquisition? Thanks.
Ryan Napierski: Yes. Great question, Linda. Good to hear from you as well. Thanks for joining. Yes. So BeautyBio is the name of the company that we acquired last year, and it’s – we’re now in our third quarter with the team. So we’re still kind of learning that business. It’s a really interesting business for a lot of reasons. One, as you mentioned, they have unique IP that we don’t have or patents that we don’t we didn’t have previously, and we continue to aspire to be the beauty device leader across the board. So we want that capability, and that’s great. They also have very good insight into the omni approach. Jamie O’Banion and team are – they’re a small and agile but well-informed team across the omnispace, which we believe is very helpful across the Rhyz ecosystem.
And so that’s really helpful. And the third part of that, and maybe it’s a subset of this is is it is an influencer-led brand. So Jamie, herself, the brand was born out of kind of her own views of beauty. And this, as you know, in the beauty and wellness space for the largest beauty companies is quite an interesting disruption of how influencers are disrupting these traditional beauty brands. We’ve often felt for a long time, if we could take the best of Nu Skin, which is a bunch of affiliates out there marketing, beauty and wellness products, and then find Indy brands that are founded by influencers themselves to learn how to play across those worlds over time. I think it’s the greatest opportunity in beauty and wellness period. So for us, BeautyBio, it’s very much we’re learning the business.
We’re learning a lot of things around Omni and the Ulta, the Sephora relationships, other great retailer partners that are important. For me, the most important part of it is this influencer and creator disruption that’s happening in beauty and leveraging the insights and the know-how there as we continue to build out this – I alluded to it or mentioned it in my comments, but this influencer incubator, we think this is a real opportunity for the midterm. And I think beauty brands and wellness brands around the globe need to be paying very particular attention to the influencer segment and how do you help brands stand up in a very competitive red ocean space when they have a captured audience because they’re an influencer themselves. And all influence are looking to monetize those brands.
How do you institutionalize a mechanism to do that. That’s what we’re calling the rise influencer incubator business.
