Matt Meeker: Yes. I think you’re seeing it. And as we’re guiding to a loss of $3 million in this current quarter. But as I said in the call, the building blocks are there and you’re pointing it out, the gross margin leap forward to roughly 60%, the best we’ve posted as a public company to-date. And we still feel there’s a lot of room for growth in that or we know there is, we see it through a lot of those contracts that we’ve put in place with our vendors. And as Zahir said, we’re just working through the inventory that would be on old contracts. So we’ve got some visibility to ongoing improvement there in addition to the AOV improvement. That makes the gross margin go up, improvement on the shipping and fulfillment line and as you mentioned, the cost reduction.
It’s a long way of seeing we’re right there and we’re guiding to being right there. When it comes to the when we’re getting our arms wrapped around the full-year plan for fiscal €˜24 and here has been on board with us now for five weeks. So we’re getting our arms around it and I think we’ll have visibility to that very soon.
Corey Grady: Thank you.
Operator: Thank you for your question. The next question is from the line of Ryan Meyers with Lake Street Capital Markets. Your line is now open.
Ryan Meyers: Hey, guys. Thanks for taking my question. First one for me, just wondering if you can unpack the AOVs during the quarter a little bit more? And then kind of maybe what percentage of revenue came from cross selling?
Matt Meeker: Yes, this quarter $15 million of revenue came from cross-selling out of the total $134 million or $120 million of direct-to-consumer. So well over 10% of consolidated and certainly over 10% on the direct-to-consumer side. So that continues to be a core strength of ours. And as I mentioned, and I’ve talked about it for a lot in the past year that we had become very good at in our past couple of years was addressing a toy customer and selling them more toys. We became really great at that. What’s changed in the past quarter or two really since we updated the format and went to the breed-based format of food is we’ve really unlocked how to take a toy customer and turn them into a food customer. And that’s been the unlock we’ve been looking for.
So that’s the game changer for us, and what we’ve been going for. In this past quarter, if I go back to the question Cory just asked, we’ve done a couple of things. I mean, we’ve certainly expanded the gross margin overall in that 60% neighborhood. We’ve improved our shipping and fulfillment percent of revenue that we spend there. We have our cost reduction at exercise and before that we turn in a free cash flow positive quarter, and then you take all that forward. So one priority was to get profitable, another was to have real momentum in food. We’ve got that too. So we’re pretty happy with where all that is.
Ryan Meyers: Got it. And then kind of the integration of the one BARK brand, how is that progressing? And do you guys have any sort of timeline as to when that might be complete?
