Leonard Fluxman: Hey Greg. No, we actually haven’t seen any drop or any change or any levels of concern or any gaps across any of the different demographics. High end and mass and contemporary are all performing well. So, we’ve seen a sign of guest demand for our services and our ability to bring them into the spa.
Gregory Miller: Excellent to hear. As for my second question, I was about to ask you about the global minimum tax. Could you provide your current perspective on any anticipated impact to your company, if any?
Stephen Lazarus: Yes, Greg. I think everybody is obviously very aware of The Organization for Economic Co-operation and Development or OECD issued a model for implementing a 15% global minimum tax. The application of the rules relating to these taxes continues to evolve, and there are countries that are still in the process of issuing rules and regulations as it will relate to those taxes. The Bahamas included has not finalized anything in that regard. So, I believe there will be any impact to one forward until at least 2026. We will obviously, continue to monitor the Serena and implement the taking actions as feasible to minimize any potential future impact. At this point in time, that is where we stand.
Gregory Miller: Okay. I appreciate. That’s all for me. Thank you.
Operator: The next question comes from Max Rakhlenko with TD Cowen. Please go ahead.
Max Rakhlenko: Hey guys. Thanks a lot and congrats on really nice results. So first, can you remind us, did you incorporate hallmark pricing or any sort of pricing actions over the holiday period? If so, how successful was it? Did you see any elasticity or anything worth calling out? And then just, if you could remind us, are you incorporating any pricing actions into your 2024 outlook?
Leonard Fluxman: So Max, hallmark pricing obviously goes in every time we go through the Christmas newer period, and it continued as we did in 2022 across most of the banners and in fact, still stays in place on some banners. We’ve seen no resistance to the hallmark pricing. And clearly, where we do, we’re able to discount, but we’ve seen less discounting than we’ve ever seen before that we might have seen in 2019 and prior to that. So, the simple answer is, it’s working. Hallmark pricing has some stickiness and where it does across different services as we in place for as long as we can. With respect to the second question, we just — can you just repeat the second question that you had there in the back half of your question, Max? Sorry.
Max Rakhlenko: Yes, certainly. So, just curious if you’re incorporating pricing actions into your 2024 outlook?
Leonard Fluxman: No. No, we haven’t incorporated any pricing leverage or pricing or targeted pricing increases in the guidance. However, we do have places where we believe pricing leverage can be taken, but we have not decided when to move on that. We’re just going to continue as we have post year-end. And we’ll kind of see how the year filters out. But given the good start that we’ve had I don’t expect that we’ll have a problem in certain areas to move it up where we can and where the demand is strong.
Max Rakhlenko: Got it. Okay. And then switching gears. Where do you think your prebooking revenue mix can go in 2024? I think you previously gave a range with 30% potentially at the high end. So just curious what’s feasible over the next both years as well as over the medium term?
Leonard Fluxman: We’ve kind of set a target long-term of where we’d like it to be which is going to take a few years. But as one of the questions was fielded earlier on in the session here. I think given that the cruise lines are so hyperfocused on moving more and more people to the prebook platform we will continue to see collaboration and continued effort to improve and get attachment into prebook. We’re making certain refinements working with them showing best-in-class what’s working what’s not working and where they can improve their sites. So our targeted number ultimately is in the low 30s. When we’ll get there I’m not sure but I certainly believe given the focus and support we’re getting we’ll continue to move positively toward that number.
Max Rakhlenko : Okay. And then just last quick one for me. But unless I missed it can you walk through sort of what drove the pressure in your adjusted service gross margin? It was a little bit outsized this quarter. So is there anything that we should be cognizant of whether it was one-time or if something should continue into 2024?
Stephen Lazarus : No, we don’t believe Max if there’s anything that should continue. It’s just seasonality in the [indiscernible]. As we always say our focus is on driving total absolute dollars and it makes absolutely no sense for us to have therapists on board that don’t work at the time that they have the payment they have user application. So as appropriate and necessary there are many tools that managers use on board including discounting — to increase utilization which drives absolute dollars. And so we’ll always focus on the absolute dollars but nothing that sticks out per se in the quarter.
Max Rakhlenko : Okay. Great. Thanks a lot guys. Best of luck and we’ll speak to you soon.
Stephen Lazarus : Thanks.
Operator: The next question comes from Laura Champine with Loop Capital. Please go ahead.
Laura Champine: Thanks. Just a little housekeeping. With the warrant set to expire mark, do you expect any change in your share count that we should know about?
