Simeon Siegel: Thanks. Hey, guys good afternoon, and I appreciate you making your comments regarding Israel. So congrats on topping the 2.5 million. How are you thinking about the active customer’s trajectory for the short and longer term opportunity from here?Are you seeing any meaningful spending pattern differences in the new customers versus the existing and then just how do the existing active customers break down between Domestic and International?
Jesse Timmermans: Yeah. Let’s see. So I think new customers, continue to grow on the new customer front and holding up on the active customer front.That growth iscompressing as we as we work through these quarters. So the year-on-year growth for active customers is, you know, going to be a little bit lighter in Q4 than it is in Q3 and over time, those two will get back to kind of call it the old days after we cycle out of all these comps where the net sales and the active customer growth are plus or minus in the same zone and what we’re seeing from the new customers, nothing significant that that popped out from a particular cohort of new customers, all cohorts are behaving relatively the same.You do see differences in and we’re shifting between the full price and markdown and the Beauty customer is new to us so we’ll see how that plays out over the long term, but as mentioned, those customers are coming back at higher average order value.
So optimistic about that and then I would say no significant difference between the retention patterns between domestic and international.A lot of that is, dependence on the localization effort we’ve made over the past several years so that retention dynamic is much stronger given the free shipping, free returns and the customer experience, that we’ve optimized over the last few years.
Simeon Siegel: Okay.And then just how many of the customers are international? And then if come with an AOV, did you, or could you know what ASP was versus units per order? And I think that’s an LTM number. How was AOV or ASP for this quarter versus the prior year period?
Jesse Timmermans: Yeah. Yeah. So I guess not breaking out, specifically the international versus domestic active customers but it’s roughly in the same zone as the domestic, but keep in mind that for international SKU is a little bit heavier forward. So it would be a little bit lighter on a customer versus, revenue basis. On AOV, and ASP versus, UPO, there was a decrease in both of those, both ASP and UPO. UPO was the biggest impact of quarter on a year-over-year basis and some of that was due to the shift in mix towards Beauty and specifically that TikTok Shop, there were lot of single item orders, so that skewed the UPO lower. On top of that, Q3 of last year, we had a really phenomenal UPO quarter.So there’s a little bit of a dynamic there and this is all on the Revolve side because forward is plus or minus in the same zone on AOV.
So ASP on Revolve was also down year on year and much of that was due to the shift and mix to Beauty. So you kind of stripped Beauty out ASPs were up, a healthy number outside of that duty category. So, largely due to mix on both of those.
Operator: Our next question comes from Jim Duffy from Stifel. Please go ahead. Your line is open.
Peter McGoldrick: Hi. This is Peter McGoldrick on for Jim. Thanks for taking our question. I wanted to ask on social marketing, you offered some valuable insight on customer engagement through TikTok, driving the playbook for customers and Beauty.Could you provide some sense of how important this channel is to driving platform discovery for new customers overall? Perhaps size it against the magnitude of, static posts on Instagram.
Michael Mente: Yeah overall, we see the long term trending that TikTok is the growing platform with and, of course, with the growing platforms, provides growing opportunity, Instagram being a little bit more mature isof course is very, very important for us and something we’re still very focused on, but of course, staying on top of where the puck is moving, pay attention to TikTok and developments there and the success there is very quite encouraging, you know, as Mike mentioned on some earlier questions and such that it is, very dynamic and very early.So we’re, quite excited with the early success. It had the early success in direct selling has succeeded, mature success in Instagram direct selling, and being in the early zone that, if TikTok is right it could be a very massive, but at this point, it’s, very early, but super encouraging.
Peter McGoldrick: Thanks and then I just had a one follow-up on Mexico.This market continues to show strong customer traction. Can you size this business as overall mix of international and offer some sort of guide as to how big this could, be or contribute to revenue, looking ahead.
Jesse Timmermans: Yeah. So it’s certainly, I mean, one of our more important international markets, it’s our top 5 countries now, I mean, in in terms size and soit’s certainly a meaningful portion of the mix but at the same time, we do sell worldwide.So, it’s not like, it has some dominant share but it’s starting to get to a size where at the current growth rates, it does have a meaningful impact on the overall growth of the international business, what we’re hopeful, we can continue our efforts there. And it’ll, you know, drive more and more to total growth as that market gets larger and larger.
Operator: Our next question comes from Matt Koranda from Roth MKM. Please go ahead. Your line is open.
Matt Koranda: Hey, guys. Just want to see if we could back up, real quickly to the October trend that you mentioned, the down low single digits.It just doesn’t sound like a big deceleration despite all the concerns and the headwinds that your consumer is facing.So anything you can unpack for us as to why that’s holding up despite some of the incremental headwinds facing.And then just, Jesse, maybe any monthly comp dynamics to call out, the fourth quarter as we think about modeling top line growth.
Michael Mente: Yeah. I would agree thatof course, we’re not happy with a negative growth quarter, but you’re looking at the big picture, could be a lot worse.I think it really kind of highlights the competitive landscape where us being in a premium player, we’re competing against you know, the legacy players of decades ago, and we continue to do that quite well, especially in times of challenge.You know, we see, very intense competition in luxury zone with the conglomerates, and we also see at the kind of mass market zone with the [Indiscernible] against, the incumbents we see at home.They’re taking over that business but inthe middle premium zone, we are unique and we don’t face any direct model competitors.So I think that the long multi-decades trend of us competing against legacy players continues to be you know a long term trend that ultimately drive continued success.
Matt Koranda: And then, Jesse, maybe on the monthly comp call out that’d be great.
Jesse Timmermans: Yeah. Nothing, significantly incremental to what you mentioned on the call in that November and December are slightly tougher, both on a one year and a multiyearcompering to the 2019 basis.So we just wanted to call that out. So you could factor them into the full quarter, butnothing out nothing more outside of that.
Matt Koranda: Okay. Got it. And then just I was a little surprised to see you guys leaning in the marketing spend in the fourth quarter commentary despite somewhat of a weak environment.So are we seeing an opportunity to play offense for customer acquisition? Is there brand spend going on in the fourth quarter? Just maybe help us understand sort of the incremental, lean in there.
