And I think Yelp comes into this with a unique perspective, both I think an incredible consumer experience, but then also the horizontal nature of Yelp. If we can introduce someone to Yelp during a services request, I think there’s also a good opportunity for us to educate that person about using Yelp in the future and coming back for that second, third or fourth request. So, we’re really excited about opening up the SCM opportunity. Obviously, we’ve got some incremental spend going into Q1 and the early signs are positive, so we’ll keep you posted on that.
Eric Sheridan: Thank you.
Operator: Your next question comes from Jason Kreyer with Craig-Hallum. Please go ahead.
Jason Kreyer: Yes, thank you, guys. Just on the RR&O weakness you called out kind of in December, January. Just curious if you can give any transparency on why that’s unique to the RR&O side, and then what are your expectations as far as recovery there? What did you embedded guidance or what do you think happens over the next couple of months on that front?
Jed Nachman: Hi, Jason, I can take the first, this is Jed, obviously as Jeremy mentioned, overall the business – we were pleased with the performance in the business in the fourth quarter, particularly in home services. And while that remained resilient, we did see some weakness in our RR&O categories in December, particularly in late December, and that trend has continued into January. I think we have a situation in, which input costs continue to be very high for restaurants, and we believe that’s driving some conservativism on marketing spend. I think also there’s an inflationary effect on consumers in terms of the frequency of dining. So particularly in restaurants, we’re seeing that. That being said, restaurants continue, to be a really important part of what we’re doing going forward.
Obviously, we’re making a lot of investments on the services side, but all the stuff that we’re doing on the consumer side, is also impacting restaurants as well. When I think about the growth drivers for RR&O, it’s really about continuing that focus on trusted content, and improving that customer experience. We have just released the new homepage feed and we’re using LLMs, to improve that customer experience. For what it’s worth, we don’t believe this macro pressure is in a permanent state, but we do see some conservativism in terms of how marketers, are looking at that spend. And we have a lot of investments in store for the future across consumer, and we talked about ad tech before – across consumer. As well as ad tech and multi-location Yelp audiences off-Yelp, we believe there’s an opportunity as well.
So you know, for RR&O in general, we are very bullish on over the long-term and are facing just some weakness coming into January.
David Schwarzbach: Jason, it’s David, sorry Jason. I was just going to say, you know in terms of our outlook obviously, it’s very early in the year and we have flowed through the expected performance here in Q1 through for the full year. As we go through the year, we’ll obviously have more information and better clarity. There are some components here would certainly seem transitory, and then there are some things just a broader backdrop in terms of inflationary pressures, as Jed mentioned on restaurants. So at the moment, again, the full year guidance reflects our current sense for the risks and uncertainties and what we’re seeing here in Q1.
Jason Kreyer: David, maybe a follow-up for you just on the stock-based compensation changes as we get into ’24, I’m assuming that’s pretty linear throughout the year, but as we get into ’25, and obviously you’re not going to guide. But I just want to make sure for modeling purposes we get that right, so I want to make sure maybe you can level set, how we should think about stock-based compensation and cash expenses, as we go from ’24 into ’25?
David Schwarzbach: Thanks for the question. So there are two components that are important to keep in mind, perhaps three. The first component is obviously grants that we’ve issued in the past on a four-year vest, and so those have to – those will vest quarterly and roll off, that’s the first piece. So, that’s very linear in terms of timing for those grants. The second piece is the reduction in employee grants that we made as part of the 2024 compensation cycle. The great majority of grants come at the beginning of the year, so that just from a timing perspective will be reflected as you play that out. And the third is, I don’t want to lose sight of the fact that, we did have to shift compensation from equity to cash in the near term.
So from an overall GAAP EBITDA perspective, we still have expense in respect of the stock-based comp. But for the stock based comp modeling itself, you should expect it to be relatively linear as you go through the year. There’s a little bit of up and down because of the timing of grants in prior years, but certainly maybe to just extend this as time goes by, having reduced the grants here in ’24 by about 65% is our expectation. Obviously that’s going to also be the case in ’25, ’26, ’27. So, I think you can model out steep reduction in employee stock vesting over the next several years.
Jason Kreyer: Thank you.
Operator: Your next question comes from Shweta Khajuria with Evercore ISI. Please go ahead.
Shweta Khajuria: Why don’t you talk about scaling SCM efforts across home services over the following quarters. Are you able to help us quantify that spend in any way?
Jed Nachman: We did miss the beginning of the question. Can you just repeat it?
Shweta Khajuria: Sorry. Yes, just in terms of scaling SCM efforts in the home services subcategories, can you help us quantify that spend for 2024?
