The big pluses for us on gross margin are going to be a reduction in these extraordinary supply chain costs that we’ve had, air freight, stock buys, etcetera. but the headwinds will be the FX and the fact, as you pointed out, that we will be doing our usual promotions this year, which €“ so we balance all that out, we expect to be basically flat year-over-year.
Matt Sheerin: Got it. Thanks for that. And then kind of same question on the OpEx side, you look like you’ve got some meaningful step-ups in expenses. Of course, the commissions being €“ or bonuses being part of that. But could you tell us like where those buckets are in terms of the incremental cost? Is it mostly R&D and sales and marketing or across the board?
Patrick Spence: Yes. Hey, Matt, it’s Patrick here. The focus has been making sure that we’re investing in our product, which is our engineering and product groups and operations group to make sure that we can continue to scale and raise the bar in the existing categories and then expand into those four additional categories that I mentioned. And so that’s really where we’ve focused the investment in those people, and we are definitely building for the long-term with those investments. So you will see us €“ as I mentioned, we’re slowing the pace of investment in fiscal €˜23, and you’ll see those pay off those investments that we’ve made in our people in R&D payoff in the future.
Matt Sheerin: Okay. Just as a follow-up to that, could you tell me what the headcount of the company is and expectations as you get through the year?
Patrick Spence: We’re just over 1,800 now. And so we will be growing that slightly over the course of the year.
Matt Sheerin: Okay, thanks very much.
Operator: Your next question comes from the line of John Babcock of Bank of America.
John Babcock: Good afternoon. I guess just to start out, broadly, given the macro volatility and also your guidance, I just want to get a little bit more clarity here. I mean it seems like your revenue range is relatively tight, but at the same time, the adjusted EBITDA range is pretty fraud. So I just want to get your thinking around this guidance and the key drivers there?
Patrick Spence: Well, I think the €“ we’ve assumed that our €“ that we €“ the trends remain stable, right, in terms of kind of where things are. So we’re not economists. We’re not going to guess on what happens in macro, of course, and we’ve been encouraged by the stabilization we have seen across Q4 and obviously, today reporting that we got that right. And then on top of that, we layer in our expectations based on the resiliency of our customer base and what we’ve seen across the last 17 years in terms of repurchase rates, and then the new products that we have coming and how they factor in as well. And so we’ve put all of those into the mix in terms of thinking about the year ahead and how we’re going to perform from a top line perspective.
And then we factored in, as Eddie mentioned, hopefully, the transparency helps in terms of understanding will be in that gross margin range, our typical 45% to 47% range for this year, flat year-over-year based on what we can see right now and the give and take on component costs and some of the things that we won’t have to incur that we did this year. Obviously, product mix goes into that as well and factoring in some things on the new product front into all of that and then hatches out into the way that we’re looking at the investments in the team, that bonus payout, FX all coming down ultimately to the bottom line in terms of where we are. Eddie, if anything you want to add?
