So now that they’ve got visibility into their favorite super trainers doing these rides, we expect and have seen that demand for this new offering that Marc described, it will be incremental. And likewise, same thing with this concept of eat more dessert. That is Superfood Dessert. As an additional application to Shakeology will give people within our own database who are not currently subscribed to Shakeology. An additional reason to do it, if you’re going to have a bowl of ice cream, you might as well have a bowl of Shakeology Nice Cream at a third of the calories, higher protein, superfoods, fibers, all that good stuff for you and improve how you feel about your life. So all of these things are incremental. And our focus is how do we attract more of what we call super consumers who are inclined to buy — to spend more in the ecosystem as they’re having a better experience.
But at the same time, we do expect there will be some people who just come in for the fitness, who just come in for the eating plans, who just come in for the superfood dessert, or they just want to ride the bike and do our great rides. So the Ala carte menu is available as well as the Everything Under the Sun menu.
Joanna Zhao: Got it. That’s super helpful. It just basically helps to facilitate your upsell or cross sell the programs. But it is an optional. Okay, very good. Thank you so much. Super helpful.
Carl Daikeler: Thank you.
Operator: Thank you. . The next question comes from the line of Kaumil Gajrawala with Credit Suisse. Please go ahead.
Kaumil Gajrawala: Hey, guys. I guess good afternoon for you guys. Good evening for me. A couple of questions, maybe starting with the balance between a big new launch and controlling costs. And I guess I want to ask that in the context of EBITDA profitability this quarter great. But the guide for first quarter is for a bit of a loss. So can you maybe just walk me through first that balance between launching something new and managing costs? And then layering on is the highest amount of launch costs in 1Q and that should sort of fade as we go through the year or my thinking — am I thinking about it wrong?
Carl Daikeler: Well, frankly, the launch costs are covered in the daily operating business. The cost to build this and prepare it really happened in 2022. We just launched it on March 2. So now it’s running the business, running it efficiently and acquiring customers efficiently into a strong LTV. So we don’t have the kind of launch costs like we’re putting out a movie. This isn’t a hits business. This is a business model that we’ve seen very strong proof of concept, really, when we started testing it back in March, then again in June, another test in September and again in November that we’ve seen incremental benefits from this that led to the configuration, pricing and launch structure that we’ve had today. So I don’t think there’s going to be necessarily a change without giving guidance to quarters ahead. I don’t think there’s going to be a dramatic change. It’s not like we were digesting a big CapEx or launch budget in Q1.
Marc Suidan: Yes, and
Kaumil Gajrawala: Okay. Sorry go ahead, Marc.
Marc Suidan: Yes, what I’ll add is that simplification of consolidating all our platforms has delivered incredible results for us, right? So we’ve been able to revamp and relaunch and transform ourselves, while dramatically cutting down costs. And that’s all enabled by having one technology spend, one marketing budget, one production library. So this massive cost reduction was all done in a way where we’re able to actually deliver more, not less, right, which should be very beneficial. So our current cost structure is totally set up for this current run rate of the business. And then from here, by deploying all these changes, all the growth starts delivering the profits thereafter.
