I would like to thank you for your continued support and interest in Regis. I will turn the call back to Biz who will lead us through the Q&A.
A – Biz McShane: Thank you, Kersten. Our first question is from Eric Beder of Small Cap Consumer Research. Please remember to unmute, Eric.
Eric Beder: Okay, can you hear me?
Biz McShane: Yes, we can.
Eric Beder: Great, thank you. So congratulations on making a lot of progress here. When you look at Zenoti now over 1000 stores, what is 1000 salons? What is that enabling you to do in terms of CRM and reaching out to customers that you couldn’t do before? And how do you view that as a potential driver going forward?
Matthew Doctor: Yes. Hey, Eric, thanks for the question. It’s Matt, Yes. We’ve spoken about this a lot. And as I mentioned, it’s super foundational to that because it unlocks a lot of things that weren’t able to be done on prior systems. I talked a lot about personalized marketing. It’s very, very easy to understand your audience based, your customer base. The requirements of data collection are much higher and stringent in Zenoti. So just being on it alone, we’re capturing way more customer data just as a foundation. And the ability to then convert that customer data into action is something that is super streamlined through the platform, as easy as going in and actually being proactive on messages to send individuals to setting settings based on hey, this person generally comes in at this time, let’s send them a reminder in a few weeks, set it, forget it, let it go.
General blanket, permissions across, hey, for all cohorts, send them a text or an email over the course of X amount of time to remind them and enables reminders of their check-in is there. It’s just a lot more of an ability to speak one-on-one with a customer that we haven’t had before in order to interact with them during the service before and after it to drive frequency, to drive loyalty. So there’s a lot of great, you know, just personalized marketing initiatives around that, that we can tap into, even the idea of running a platform based loyalty program, that is enabled on Zenoti as well. Other things beyond just the marketing side of things, which I think is super important, and I alluded to this in my comments is this notion of salon operations and brand standards outside of reviews on Google and Yelp right now, we don’t have a lot of insight to this.
Now, there’s a lot of customer feedback through this Zenoti platform that is very streamlined that we can get right away that our franchisees can operationalize on, on the fly when they get that feedback on things to work on. And we can collate that, we can correlate that to results, we can, when we get positive reviews, we can — there’s prompts to already automatically upload those to Google and Yelp, which helps with digital footprint. So there’s a lot of really great things that can happen with this platform. And it’ll be way more strengthened once the entire system is on it, versus the 1140 that are on it today.
Eric Beder: Okay, sounds great. Can you remind us, you mentioned that you’re getting $2 million potentially in progress fees from Zenoti. What’s remaining to be done in terms of potential for that? And remember, it’s supposed to go for the debt. Is that still correct?
Matthew Doctor: Yes, that’s still correct. So yes, there’s 2 million, which is part of the original — is part of the original $20 million upfront purchase price. And then the remaining proceeds, you know, we had mentioned as part of the original transaction, that there was about $19 million of additional potential proceeds. At that time, that was based on a number of factors, the key one being the amount of salons that migrated. Now our salon count has gone down since that time. So you can kind of — we haven’t given what the exact payment is per salon, but you can kind of do some extrapolation of approximately 19 million our salon count at the time, and kind of take a look at where it is now, and that will give you some view of what’s left remaining to collect.
