So the idea, and I kind of think it’s around and maybe or it’s a little bit coy about the potential of our gross margin and maybe we can scare a 7 handle in terms of gross margin and I think that this level of gross margin is the new normal and in fact, as we continue to see a little bit of improvement in the direct margin within that category, you may actually see a little bit of improvement in gross margin from this level, but I think it’s largely something that you can model and expect in this low 70s range for gross margin.
John Koryl: Yes, I couldn’t agree more, Robert.And also, as it relates to your 2024 question, Ike, I think basically what you can take what you’ve seen from us in terms of gross margin and the efficiencies that we’ve introduced to the core business and say, okay we’ve said low double digit growth, so somewhere around 10% growth you add with that, the new revenue streams, you add with that virtual inventory that complements our core business so well and that’s where we are very pleased with the potential progress that we can make and deliver on that commitment.
Operator: Our next question comes from Tom Nikic from Wedbush Securities.
Tom Nikic: So the changes you made to the model, I guess, we’re pretty much lapping it now. Do you think that you’ll continue to see benefits from the changes? Like, do you think you’ll continue to see a pay grade move higher, you’ll continue to see lower mix of the, low value items or now that we’ve kind of lapped it, we’ve kind of picked the low hanging fruit and then from here, you know, further improvement is going to come from other initiatives?
Robert Julian: Hey, Tom. This is, this is Robert. Thanks for the question. One thing that I would say embedded in your question is idea that we are now lapping the changes that we’ve made and I’m not sure that’s quite accurate. If you think about some of the changes we’ve made, and I do think that even Q1 of 2024 is going to have comparison to a Q1 from this year, there is still pretty big year-over-year change. We made the commission structure of the rate card change November 1st. We’ve been working down our direct revenue as a percentage of revenue pretty consistently for the last few quarters, but not fully lapped on that either and so I do think that there’s still improvement and we talked about, at the beginning of this year, the changes that we have made, you’re going to see really impact the second half of 2023 and that has proven to be very true and accurate and so the first half of 2023 still has some impact on a year-over-year basis going into 2024.
So you should expect some improvement with what I would call rollover effect of getting the full year effect of the things we made we did in 2023 reflected in the 2024 results and that’ll come in Q1 and Q2. So there’s still a little ways to go in terms of lapping the entire impact of the changes we’ve made to the business model.
Tom Nikic: Thanks very much and Robert, best of luck in your future endeavors.
Operator: Our next question comes from Edward Yruma from Piper Sandler.
Edward Yruma: Hey, good afternoon, guys. Thanks for taking the question. I guess first, now that you’re pushing fewer units through the authentication facilities, are you seeing any kind of disefficiencies as a result of that? And then just as a follow-up back on the macro commentary, were you actually observing softer trends quarter to date, which drove the guidance revision or is it simply just lots of stuff in the press and just concern about holiday spend overall? And then maybe one other follow-up. I know historically you have out of out-of-policy returns that kind of juice the direct numbers post the holiday season? Have there been any changes to return policy?
