And then the other area that we have not done at all even a thoughtful job in the past is our shop is what we actually package, experience, we provide for people to buying Life Time branded clothings, LTH nutritional products, et cetera. All of that now has been bundled up under one superb executive of the company named Kimo and his team. We are working on that. Again, I wouldn’t go change the numbers, John, for the next quarter or the quarter after. But I expect us to deliver sort of an incremental revenue opportunities through our shops, through Miura, through cafe, through spa, we have enough tailwind this year to deliver the numbers we delivered, we just gave you. What we gave you in guidance for the year and for the quarter, that’s just a tailwinds of the things we have done.
It does not require the implementation of the things I just mentioned to you to get those numbers. But we want to get those things rolling, so we have enough momentum into them by the fourth quarter this year, so then we have set ourselves up properly for ’25 and going forward. That’s really the way. We have tons of opportunities yet left in our own execution, I emphasize. We do a lot of things great and we have a lot of opportunity to improve our execution, John.
John Heinbockel: Thank you.
Bahram Akradi: Thanks.
Operator: Thank you. Our next question comes from the line of John Baumgartner with Mizuho Securities. Please proceed with your question.
John Baumgartner: Good morning. Thanks for the question. Maybe, Bahram, I wanted to ask about the digital strategy. The digital on a whole has really bottomed out in 2023, it seems. And I’m curious how you’re thinking about digital as you’re gaining visibility into the post COVID world, post COVID activities. How are you thinking about digital engagement at this point? Are there tweaks to the strategy going forward? Is there a need to invest or manage differently in regards to digital? Thank you.
Bahram Akradi: That’s a great question. We are diligently working on our execution there. The goal is, if you look at the digital companies that everybody thought they’re the messiahs of the world, they are the game changer, you have to take a look and see where they are at today, and the reality is providing digital option to all of our customers is a must. And so therefore, we are 100% committed. There is massive initiatives in line. If you look at our app today, it basically provides everything from podcast, the best content, the best information, it has best on demand sort of exercises and a very, very robust streaming and everything else you would ever need. So what we haven’t done yet is we haven’t decided to kind of robustly market that and create the kind of, I would say the two options of the one that they pay a certain amount a month, $3 a month, or the premium option.
For Life Time, this is the byproduct of what we have to do for our access customer. So we have every option. So if we choose to take this thing to where we have millions and millions of incremental subscribers that they’re not paying anything, but they have access to our brand and some of the content, and then they can do other things, they can shop online with us, etcetera. That’s within our decision bandwidth, and I can — I’m not going to expand more on it. All I can tell you is, obviously, you should expect we’re thinking through all these things, and at the right time, we deploy the right strategy.
John Baumgartner: Thanks, Bahram.
Bahram Akradi: Thank you.
Operator: Thank you. And our last question comes from the line of Simeon Siegel with BMO Capital Markets. Please proceed with your question.
Simeon Siegel: Thanks. Good morning, guys. Nice job and I hope you’re all doing well.
Bahram Akradi: Thank you, Simeon.
Simeon Siegel: So, Bahram, really great seating, increased engagement stats and the retention was fantastic. Could you quantify that at all like, where are we now for retention versus pre-pandemic to your point? And then how does that play into general membership expectations for the coming year? Maybe what are you expecting for membership growth embedded in that full-year revenue guidance? Thank you.
Bahram Akradi: Yes, those are two again very astute questions, Simeon. First, the biggest indicator of the desirability we offer is that we — our customer wants to stay, right? So I had been surprised in the persistence of a higher attrition rates than 2019 in 2023 early half of the year. That was just the ’23 was way higher, despite the fact we don’t have sales, we don’t have promotions, the customer joins on their own merit. But then we saw that number just consistently come down. This is the attrition rate. And now from here going forward, we want to refer to this as retention, but just basically it’s the inverse of that number. So, in the fourth quarter of in the back half of 2023, we start seeing kind of beating 2019, very nicely beating 2022.
But now we are projecting potentially in the 90% range of 2019 and 80% of 80-ish percent of 2022 — 2023. So when we go this year, we can have attrition rates that could be almost 20% better than last year. So these trends are right now again, attrition rate, Simeon is a couple of months ahead. So right now, if you came in today and put your notice to drop your membership, you’re effectively in April attrition, right? So we can see that number forward and the trends are very, very solid. I expect us to the big number for me, the big BHAG is, we’ll end up the year with 29 something attrition rate, which would be the historically best attrition rate in the history of the company ever.
Simeon Siegel: That’s great.
Bahram Akradi: And what was your other question in membership?
Simeon Siegel: How are you thinking about — yes, exactly, so just within the quarter?
Bahram Akradi: I think the reshuffling of the business, I think we are within the last honestly last 10% of the re-ramp. And therefore, I think from here going forward, I don’t expect the membership — I don’t expect to give up memberships to get the dues, if you know what I’m saying few, so we expect to see a modest membership gain on a regular basis going forward for the year.
Simeon Siegel: That’s great. Thanks, Bahram. Best of luck for the rest of the year.
Bahram Akradi: Thank you so much, my friend.
Operator: Thank you. And we have reached the end of the question-and-answer session. I’ll now turn the call back over to CEO, Bahram Akradi for closing remarks.
Bahram Akradi: All right. I just want to thank all of you guys for your very, very diligent Q&A and care that you have for the company. I am grateful to all of our team, as I mentioned early in the call, for their passion and their commitment. And we’re looking forward for a great year. So hopefully, we’re looking forward to having you guys in just about 60 days again and continue our progress forward. Thank you so much.
Operator: And this concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.
