Linda Bolton-Weiser: Okay. Thank you. That makes sense. I guess, I will leave it there and then take the rest offline. Thank you.
Jim Brown: Thanks, Linda.
Operator: And I’ll take our next question from Susan Anderson from Canaccord Genuity. Please go ahead.
Susan Anderson: Hi, thanks for taking my question. Just a couple of questions here. I guess on the Americas and Europe. I’m curious just your thoughts on the active customer count, where you see that going this year. And any drivers you have to kind of reverse the declines there? And then also just wanted to get your thoughts on how you’re expecting promotional activity to play out this year. I know it was lower last quarter. Are you expecting that to continue into this year?
Kevin Guest: This is Kevin. Thank you, Susan. Just to talk about the Americas and Europe. One of the key strategies behind our affiliate launch is to attract a different demographic, meaning a younger demographic who is navigating themselves very openly to a direct sales model. maybe not so much a traditional model. And so as we become more relevant in that space, we expect to support and expect to see our active customer counts increase in these markets and so the key strategies behind the affiliate program and launching it here in the U.S. especially is precisely that. The attraction of a different demographic that may be more open to receiving, as Jim said, pay quicker in a simple and easy way to receive a commission in a new marketplace.
And so we’re optimistic as it relates to the United States. We have a very, very strong base €“ in the U.S., we have a very strong customer base that has many of whom have been with us for many, many years. And so we’re going to build upon that base but also really focus on some new customers and approaching them in a new way. And so as it relates to our promotional activities were definitely, as compared to Q4 especially, going to increase that. And we have later in the year an event that is specifically for the U.S. Canada, Mexico and Europe event that we will hold targeted specifically at these groups, where we will again launch some new opportunities and, again, communicate with them face-to-face versus being virtual. So €“ and then there was one last part of the question, Doug.
Susan, I did €“ there was one other part of the question I can’t remember.
Susan Anderson: Yes. No, I think it was just on the active customers and the promotional activity, which was very helpful. But also, I wanted to ask about just capital allocation. Curious what your thoughts are for this year in terms of the puts and takes between share repurchases. And then I think you mentioned in your remarks, M&A, potential acquisitions that you guys still potentially looking to seek out there? And then along those lines, how are you thinking about something that would be complementary to the business? Thanks.
Doug Hekking: Yes. So let me go reverse just a little bit and just kind of put a little bit more color on your prior question that Kevin responded to. One of the things we did during this last year, I think particularly in the markets that have launched, now with affiliate is we ran a test program during the year. And the way we ran that program kind of created a pretty heavy lift in our PCs for the short period of time. And so as that program expired and stuff, you have definitely seen that reflect in our customer accounts. So, we are really looking to build sequentially from the base that we report in the fourth quarter in that region as we run these programs and just to kind of put a little bit of context and color there.
And then as far as capital allocation, it’s very similar to what we have done in the past, but there is definitely a heightened focus on business development and looking at some inorganic opportunities, and so we will continue to do that. I think with the two acquisitions we made last year, we are pleased we are making progress. We have some very high hopes and expectations of these companies. And it’s a good time right now to deploy some of our capital in this area and be pretty assertive there when things make sense. And so some of your question is, what type of structure, I mean we would look at vertical. We definitely look at complementary. We are definitely looking to go back and learn in some areas that we are not actively participating in from our business.
And so we think there is a variety of options out there that we think will be very additive to the organization as we move forward there. And share repurchase, we had $83 million outstanding. And so we haven’t really commented on specifics there. But just as a note, that’s what’s currently authorized with the Board.
Susan Anderson: Great. And are you guys seeing valuations become more attractive in things that you have been looking at?
Doug Hekking: The conversations and the gap between buyer and seller have definitely been more palatable than they were a year ago or 2 years ago. But it’s still always an argument, making sure that we see value and how we see the future of that organization. It’s always a bit of a struggle, but it’s definitely more palatable than it has been the last couple of years.
Susan Anderson: Great. Thanks so much for all the details. Good luck this year.
Doug Hekking: Alright. Thanks for being on the call.
Operator: And our next question comes from Ivan Feinseth from Tigress Financial Partners. Please go ahead.
