So as long as we’re managing our contribution margin of each transaction, we’re sort of agnostic to where they come from. However, the good news is that the brand that goes along with every transaction is BODi and The Beachbody Company. So if they do any search for who’s this Shakeology from, for instance, they’re going to find the parent company and have the opportunity to come in and, for instance, start a free membership of BODi Previews where they can get access to a 130 programs to decide what they’d like to have complement their supplement choice. So we do think there’s going to be some cross collateralization but that’s not necessarily the strategy there.
Mark Goldston: And Susan, I’m sure you heard this in Carl’s prepared remarks, but our Amazon business went up 50% both sequentially and year-over-year, granted it was a smaller base, but it’s great. And the other thing is you asked about other retailers. I mean, look, if the traction holds up the way we think it will with the appeal of our products and moving them outside of just selling them internally, you will see us potentially look at other retail outlets in addition to Amazon because this is a huge category, it’s a big TAM and we’ve got superior products. So we’re looking at pricing, package serving sizes, you name it. We’re looking at all those things so we can maximize the arsenal of our nutritional business, and Amazon is the first leg of that.
Susan Anderson: Looking forward to the additional details there. Maybe also, I may have missed this. But did you parcel out the buckets of the expense savings this quarter, like, for example, how much was due to the change in commission structure?
Marc Suidan: Listen, we’re on track this year to achieve $250 million of savings. $200 million of that is reducing our overall operating and capital expenditures and $50 million is from our improved sales and marketing. So that’s a 1,000 basis points. Some of it may come in a bit of enhanced revenue, some of it in lower sales and marketing as a percentage of revenue. But net, net that should deliver 1,000 basis points to EBITDA this year.
Susan Anderson: And then I guess last question from me. Did you give an update on the subscriber reactivation campaign? Just curious how that’s going and then any uptick that you’ve seen there? And then also I’m just curious in the difference in marketing spend to try and get those customers back than you would, I guess, just normally spend to acquire a customer?
Carl Daikeler: As we mentioned, the reactivation campaign is slower than expected, because we got to be careful not to violate CAN-SPAM regulations. However, we do see it to be ongoing. It’s an ongoing productive channel, it just hasn’t hit the scale that we expect. The good news is that it doesn’t really have any cost of acquisition at all because we already own the names with the exception of just the effort to put email campaigns together and/or any discounts or promotions that we put in place to reactivate those customers. And we have seen those be pretty prolific for us and effective based on results in the first quarter. So we continue to expand the reactivation campaign. And in fact, with the new leadership that we put in place, we have — they started to do a really good job of what we would call a fast follow.
So somebody who cancels or doesn’t renew their membership, the team is contacting them very quickly where you have the best window, the best opportunity to keep that customer from actually going back into the prospect list. So they’re all over it. It’s just slower than expected.
Mark Goldston: Susan, I’d just add to that — I’d just add an interesting data point. As we’re sort of getting up to speed with this CRM recapture program, most of the things that we’ve been doing and that we’ve been testing have been digital fitness as you can imagine. An interesting, anecdote to that is that we have over $1 billion of former BODi nutritional supplement users in that CRM base. So if you looked at the CRM base, there’s been over 1 billion of nutritional supplement purchases from BODi previously represented by that group. We have not, up to this point, attempted to remarket to them nutritional products ironically even though there is a reservoir of a $1 billion-plus of former revenue there. So as part of the new management that we brought in that group and our focus as we scrub this list and keep ourselves off of the spam list, so to speak, having run one of the largest ISPs in the world, I’m uniquely confident that we’ll avoid that.
But there is a huge opportunity down the road here to recapture a lot of these people with what we’re looking at in nutrition in terms of package sizing, pricing, et cetera, that we could go back to those people with a very compelling offer. So just stay tuned on that in the second half of the year I think you will see some stuff there as well and impress you.
Operator: Our next question comes from BJ Cook with Singular Research.
BJ Cook: You talked real briefly about partnerships and announced one here about a week ago or so. Can you give us some 00 I guess, shed some light on that partnership and maybe what your strategy is there, would you expect to be promoting those partnerships on your side and on the partner side? And would you expect that to be meaningful to revenue near term or long term?
Mark Goldston: The partnership that you’re referring to with Dr. B to allow our customers and subscribers to get reimbursement through their HSA and FSA accounts should be a meaningful contributor to help customers or people who might be on the fence about subscribing to a service like that now can realize that they can get reimbursed for it. And we actually have quite a solid pipeline of potential partnerships, particularly interesting with the advent of single digital program purchases versus a subscription offer. I’m not at liberty to make any announcements right now. We’re hoping to in the next several weeks. But this is part of the reason that the overall platform of solutions, both from a fitness perspective and nutrition perspective fits so perfectly in the current environment where you’ve got GLP-1 and other pharmaceuticals for weight loss, but lifestyle is still the primary and important decision that people make to complement those decisions.
That is a perfect scenario for partnership, because it helps people succeed with those products. There’s certainly a lot of demand for them. But lifestyle is going to have to be a part of it and we offer the most cost effective and proven solution for that. So we do think we’re going to have some good announcements in the near future and we think it’s going to be a decent contributor to the 2024 scenario.
BJ Cook: You touched on the Q2 guidance here. So just quickly, I guess the midpoint is down and so is it — and so it would be sequentially as well. Could you just touch on how much of it just seasonality and also other factors?