Linda Weiser: Okay. And just on the clinical side is, are you doing promotions to gather clinical subscribers? And are those promotions in line with what you originally planned, or are you having to do more promotion, to get those subscribers?
Heather Stark: I think Sima already spoke to the marketing execution, being focused on one membership. But when you talk about promotions, we look at long-term commitment plans for our subscribers. And we have started doing long-term commitment plans for our clinical subscribers. And I would say they’re in line with, how we operate promotional activity across all of our membership.
Linda Weiser: Okay. And then can you talk about under what conditions, you would lose access to your revolver? Like if your EBITDA were to drop to a certain level, or just what would trigger not having access to that revolver?
Heather Stark: No, there’s no further trigger to losing on the revolver. So, we have access to $61 million of the revolver.
Linda Weiser: Okay. Okay. Thanks. I’ll leave it there.
Heather Stark: Thanks, Linda.
Operator: The next question comes from Michael Lasser with UBS. Please go ahead.
Unidentified Analyst: Good evening. This is [Henry Schein] from Michael Lasser. Thanks a lot for taking our question. So Weight Watchers recently sent out a letter to its members and former members noting that it understands the frustration, with the closure of many of its physical meeting locations. How does Weight Watchers plan to address this? And is this why the segment’s sub-metric is under so much pressure?
Sima Sistani: Thanks, Henry, for the question. So the workshop business has been under pressure for several years now, as we have transitioned to a more flexible model, and had to close out some of the businesses, and move to at locations. And yes, that’s impacted members, as you can imagine. And so, we are still really committed to IRL. I believe that being in community in-person is still the best way to be together. And some of the things that we outlined in that letter were ways that we were committed, to the workshop business, for instance, opening up specific coach group chats that allow them to stay connected, in case there at location is a further drive than their original location used to be, creating new affinity-based groups through virtual workshop meetings.
And giving them the opportunity to let us know if they have a location that they would like to suggest, for us to open a new app space. And so, that’s still something we’re extremely committed to doing and excited about some of the sentiment that we’re seeing from those members receiving those communications.
Unidentified Analyst: Thank you. And as a follow-up, I just want to ask, as the competitive landscape continues to get more and more intense, I think a large warehouse retailer just recently announced a partnership with a marketplace to offer GLP-1 memberships, and access to memberships. I guess, how does this intensifying competitive landscape play into your promotional strategy? And how is Weight Watchers going to – how is the ability to attract new members going to change when we move off of this promotional strategy?
Sima Sistani: Right. So, at the – I would say that our focus right now is – it’s not about acquisition. It’s really about retention with the clinic business. And you’ve probably seen us take a more cautious posture still, on that part of our business, given the supply constraints, we’re certainly still seeing. And so, we haven’t really dedicated a significant portion of marketing motion to that effort, because of the supply constraints. And it’s important to us. People are coming to us for a subscription. And that subscription is only as powerful as their ability to get a comprehensive care plan, which includes, insurance support for those medications. And so, if the medications are not there, that reflects poorly on us. And that means we’re going to grow this business thoughtfully and over time.
And so, honestly, I’m not that worried about the competitive landscape, rather than making sure that we are doing our best with regard to the member experience. And I’m really happy to see some of the supply coming back on market, and our ability to help members get insured. We’re still seeing about a 40% to 45% rate on the pre-ops, which is, we believe better than what’s out there for the insured population.
Unidentified Analyst: Thank you so much.
Sima Sistani: Thanks.
Operator: The next question comes from Alex Fuhrman with Craig-Hallum Capital Group. Please go ahead.
Alex Fuhrman: Hi, guys. Thanks very much for taking my question. Sima, you talked a little bit on the conference call about making Weight Watchers a covered benefit. I think some of your predecessors had talked about, trying to strike insurance and B2B partnerships over the years that, never really turned into anything too substantial. Can you just kind of tell us what makes things different this time, and when we might expect to see some progress on that front?
Sima Sistani: Thanks for the question, Alex. I think the main thing that is different is our understanding of Weight and weight health has considerably changed. And the recognition around it being a disease. And we’re seeing that these medications are lifesaving. And I believe in the same way that we saw a change over time, with cardiovascular health and then with mental health. You are going to see the same thing happen with weight health. And so, yes, we have new changes here within Weight Watchers, but this is a complete paradigm shift in our, in the space and in this category. And so that’s the main thing that has changed. Outside of that, I think, we’re spending a lot of time with payers and their employees are asking for this.
And it’s going to start with the private sector in my mind. It’s going to move to public policy. But the future of our business is as a covered benefit. And it’s just a matter of time that that starts rolling out. And we are already making progress in terms of the conversations and our ability to do this is really more of an operational lift, honestly. We started that with the registered dieticians consultations, which we mentioned on the call. Again, we’ll start rolling that in the next, that out in the next few months. Obviously, we do insurance support right now within the clinic business, and then claims billing will start to come over time. And we’re very encouraged by the conversations that we’re having with insurance companies.
Alex Fuhrman: Okay. That’s really helpful. Thanks, Sima.
Operator: The next question comes from Stephanie Davis with Barclays. Please go ahead.
