Dylan Carden: Thank you.
Operator: Your next question comes from Rick Patel with Raymond James.
Rick Patel: Thanks, guys. Good afternoon. Can you talk about the outlook for active buyers? It looks like it was down quarter-over-quarter in the first quarter. So just curious, if that’s attributed to the business model changes or if there’s something else going on there. And how we should think about what’s embedded for buyer growth as we think about the guidance for the rest of the year?
James Reinhart: Yes. Sure, Rick. Yes, I mean, I think buyer growth generally lines up and tracks with revenue growth. I think you have some sort of seasonality effects, Q4 to Q1. And as we just mentioned earlier, we did pull back in spend in Q1 on a timing basis. But you should see those numbers sort of reaccelerate, I think as we move through the year. But I think active buyers are really key to our long-term growth strategy, and so they should track pretty closely with the underlying growth rate of the business. And so, we expect double-digit growth in the business, again, based on gross profit growth. And we expect active buyers to be in that range, which has been true for the last years.
Rick Patel: And can you provide more color around customer behavior? Just curious, if you’re seeing transactions tilted more towards higher income versus lower income consumers, and any changes in behavior in general versus what you saw three months ago?
James Reinhart: I think that the consumer, I think it’s continuing to be — it’s challenging out there. I think we have strategically moved our assortment to be incrementally more premium over the last couple of years. And so, yes, I think that customer is doing okay. And I think the more budget shopper, I think still remains on the sideline. I mean, we are seeing more items per order. You do see some of that growth in revenue per customer. And so, potentially, Rick, you’re seeing some of the effects of a trade down environment, given how well resale, I think is positioned from a value perspective. But look, I think our perspective is that the consumer confidence is actually now down, right? I think if you look at the numbers, it’s down to three months in a row. I think the consumer is, a little bit more cautious, and I think that’s rolling into how we’re thinking about the rest of the year.
Rick Patel: Appreciate it. Thank you.
Operator: [Operator Instructions]. Our next question comes from Anna Andreeva from Needham.
Anna Andreeva: Great. Thanks so much. Good afternoon guys. Two quick ones from us. I wanted to follow-up on the softer sales guide, And it sounds like you’re being just more conservative there. But are you seeing a softer trends for more value consumer specifically as of late or is the premium customer more discerning as well to kind of explain the softer sales guide for 2Q and also for the year? And then secondly, what are you seeing in Europe? Should we still expect consignment at 20% of the mix there for the year? Thanks.
James Reinhart: Sure. Let me start with Europe, which is I think we feel like, better and better about the progress that we’re making there. I think as we noted, record consignment, bags, receipts, processing in Q1. And so I think that that journey is onward, and I think the expectation is consistent with that 20%. And but I think the demand environment there remains challenged. Inflation’s higher there. So, we think that that’s going to continue to be the case. But we’re thrilled with Florin as the new GM there. I think he’s going to be great. Lots of experience in marketplaces and scaling, supply and demand. And so, I think we feel incrementally better about where Europe is headed. I think for — in the U.S. on the softer sales value versus premium piece, again, I think given the number of things changing in our business over the last 90 days, the reorganization, the launch of three new pretty significant products, and then how we’re thinking about timing around marketing dollars and processing just leaves us in a position where we want to just see a little bit more data of how these three things come together.
And so I think given the demand environment, we just think it we should be a little smarter, as we think about the rest of the year. So I don’t think that is necessarily about value customers or premium customers. We think that the macro environment is more challenged. And we think inside the four walls of the business, there are a number of things we’ve got in the hopper, and we kind of want to see those things come together.
Anna Andreeva: Okay. That’s very helpful. And, James, I think you said marketing dollars should be growing for the year. Should we…
James Reinhart: Yes.
Anna Andreeva: Should we expect increase in marketing for 2Q?
James Reinhart: Yes. Marketing dollars are growing for the first time, since 2021 year-over-year. They’re definitely growing in Q2. And I think the timing of those on a — I think for Q2, Q3, and Q4, is it going to be related to the new product investments that we’re launching across sort of the AI products? And so I think, again, that’s where we’re not quite sure how all of those are going to land from a timing perspective, and I think driving us to be a little cautious.
