Mark Altschwager: Good afternoon. Thank you. First, I wanted to follow-up on the supply topic. Just to understand it a little bit better. With the GMV returning to growth, I mean, is this a function of mix with higher-value items? Are you seeing more volume from existing sellers? Are you seeing an acceleration of new sellers on the platform? Maybe it’s a function of each of those things. But just any help to sort of unpack that a little bit more so we can understand really the key drivers there would be great?
Rati Levesque: Yes, sure, Mark. So just kind of following up on what I was saying earlier about retail marketing and sales kind of all working together, it is a function of both. It’s about retention and acquisition, as we’re thinking about growth, so not only are we seeing better volume, or better retail value coming from each of our sellers, but we’re also onboarding the right sellers with more value and more mix. So in the past, I think we talked about – you’ve heard us talk about focusing the sales team not only on units, but retail value as well. So making sure that we have the right volume and the right product to sell. So that’s one of the things we’re doing. On the marketing side, they’re also looking at the same thing.
They’re being much more effective here. They know when to target the sellers at what time, high value is a good example of that. If we need more fine jewelry or watches we know who to target and when at the right time. So just continuing down that path. The stores are also about meeting the seller where they are. And making sure that the stores are doing their jobs as well, as far as drop in those and we’re seeing more high value coming through the stores. And there’s other things and other factors going in. I think in the past, you’ve heard us talk about retention. The retention numbers on the sales side looks better than they ever have, honestly. So that – we’re getting some upside there. We’ve launched referral and affiliate programs that are also working really well, and we’re feeling good about that.
We test our way into these things, and now you’re seeing – starting to see some of that work. And then on the tech side, it’s about enabling the sales team and getting smarter, and more efficient there as well. So there’s a few different things working together here, and we know the TAM is there. We know it’s big. We know retailers growing faster. And so, we’re going to kind of continue to kind of optimize that.
Mark Altschwager: Thank you for that detail. Just a follow-up then. Active buyers down 9% year-over-year. I understand that, that’s a trailing metric. But as we think about just the overall GMV and the platform accelerating, how should we be thinking about that active buyer piece? Should that be trending back into positive territory, mid-single-digit, high single-digit territory, if as you drive the acceleration in GMV growth? I know it’s a supply-constrained marketplace. But just maybe help us think through that metric, and how you’re engaging new buyers to the platform?
Ajay Gopal: Hi Mark, I think you said it best. It is a trailing 12-month metric. And as such, it is probably bearing a lot of — it’s bearing some weight from the business changes that we’ve made over the last 12 months. We look at – I would point you to orders, which we think is a really good sort of forward-looking metric. And that orders growth accelerated quite significantly from where it was in Q4, and we would expect to see that trend slowly make its way into our active buyer numbers as we sort of lap over the trailing 12-month nature of that metric.
Mark Altschwager: Thank you.
Operator: Thank you. And please stand by for our next question. And our next question comes from Jay Sole, UBS. Go ahead, Jay.
Jay Sole: Great. Thank you so much. I’m just curious how you saw the competitive landscape evolve over the last quarter. Have you seen your position improve? Have you seen new competitors come in, exit? Love any thoughts you have about it? Thank you.
Rati Levesque: Yes. Thanks, Jay. We’re always watching, trying not to be so insular in general, and we’re always looking to see what others are doing, and how we can always improve at the end of the day. We do awareness studies and competitive analysis regularly by our brand and marketing teams. I’ll say our takeaway in our last one and most recent one that we had done, was that we kind of really need to double down on our core business. And we really need to focus on the trust that we’ve built with the consumers. So, you’ve heard Koryl talk about things like the concierge pods, and really listening to the consumer and making sure that we are offering pricing transparency that they need, for example, relationships. The full service experience that we offer, being the leader in the marketplace around pricing.
So that’s what I mean by pricing transparency. So just continuing down our path is kind of really, what we’re talking about as our team, as we’re starting to like kind of really solidify our LRP over the next three years.
Jay Sole: Got it. Thank you so much.
Operator: Thank you for your question. Please stand by for our next question. And our next question comes from Tom with Wedbush. Go ahead, Tom.
Tom Nikic: Hi, everyone. Thanks for taking my question. I have started the call late. I’m sorry if this has been asked already. I want to ask about the gross margin and your consignment gross margin was extremely, extremely strong. I mean I think it was in the high 80s. Is that kind of like as good as it could possibly get? Like is there like a chance that, like we could eventually see like a consignment gross margin of 90-plus percent? Or like are we kind of – with all the changes that you made, is that sort of what we should think of as the upper bound for gross margin?
Ajay Gopal: Hi, Tom, this is Ajay here. We didn’t talk about this. So your question is very timely, thanks. We – I think there is still room in our consignment gross margin. We’re looking at a lot of operational efficiencies that, we’re looking to drive through our margin structure. And those will make their way into continuing to expand our gross margins, for the consignment business going forward. But to your point, we do believe that the game going forward, it will be more incremental, right? There’ll be. So there’s more that we can go after. But we feel really good about where we are today and the gains we’ve seen over the last 1.5 years.
Tom Nikic: All right. Great. And if I could follow-up on Jay’s question about the competitive landscape. When you look at the primary market for luxury goods, I mean seems like it’s become far more volatile recently. Are you getting any sense that like you’re starting to maybe benefit from some trade down, and the higher-end shoppers becoming a little more price conscious, and maybe pivoting towards the RealReal as a result?
