Rommel Dionisio: I wonder if you could talk about — I know you don’t necessarily break out the geographic distribution revenues, but I know you’re making a big push in Europe. And I just wonder if you could sort of characterize how much of the growth you saw in the quarter came from in the core U.S. business as opposed to some of the 4 markets, particularly Europe?
Larry Wu: Maybe I can take that one. I think European market as of today is an important market for us. We’ve seen some pretty good acceleration growth for the quarter. Unfortunately, I won’t be able to break it down to, that’s not really something that we track, but we see a lot of good acceleration growth in the quarter coming out from Europe.
Rommel Dionisio: Okay. Fair enough. And just a follow-up, if I could. During the call, you talked about. I know you mentioned this before, a focus on some furniture retailers. And I wonder if you could just — in terms of expansion of your customer base, I wonder if you could just talk about the difference in your marketing platform, what it will take to really continue to — you’ve already seen solid penetration there, but to continue to see the growth in that segment. Are you going to have to shift gears from a marketing perspective, bringing additional hires, maybe change your marketing platform? Or are you just kind of continuing with your current trend, which seems to be working very well?
Dr. Iman Schrock: Rommel, so — as we alluded to earlier, brick-and-mortar expansion is a big part of our future growth plans. And absolutely, we are going to be actively involved in recruiting and advertising. And there’s a lot of white space available, especially right now. I think with furniture brick-and-mortar retailers, a lot of challenges that we can tackle on with the concept of the marketplace, suppliers will build retailing and all the little things that we do so so well. So that is going to be a huge area of focus for us going forward.
Rommel Dionisio: Congratulations on the quarter.
Operator: Our next question comes from the line of Sophie Wang with CMBI.
Sophie Wang: Okay. Congratulations on strong quarter. 2 questions here. First, we noticed that you announced repurchase program. And we’re just wondering you have repurchased insurance after that? And the second question is about the Q3 on look — we noted that you had to consult the quarters of probability and you’re guiding higher Q3 revenue. So do you want to share us more color on what the outlook for Q3 and beyond?
David Lau: Sorry, I was on mute. Perhaps I’ll take your question with respect to outlook for the rest of the year. I think if you look closely to our 2022 Q3 earnings, you’ll notice actually our net income was a little under $1 million. And if you actually look closely, and that was because of a one-off stock-based charges and that was a result of a successful completion of our IPO at that time. So — and I alluded earlier in my speech, we expect our SBC charges to be more spread out going forward, and we will continue to record SBC charges to our various stakeholders in the company. So if you’re putting all the pieces together, that’s probably the extent I can share in terms of profitability or for the second half of the year.
And then your earlier questions around repurchase. So Iman actually alluded, we didn’t repurchase any shares in the open market in our second quarter. What I can share is we executed a repurchase agreement with a broker by the end of Q2 to help the company to execute open market purchases, and we will share to the extent possible when we can to the market.
Operator: And our next question comes from the line of [Lynn Brecken with BCA].
Unidentified Analyst: Yes. Nice to talk to you. I had two questions. Some of this was broadly addressed, but I’m going to ask it anyway. I’m just wondering the efforts in regards to growth inorganically versus organically? And specifically, are there any geographic or product verticals beyond the furniture, for example, that you’re looking at going into 2024 to continue the top line growth? And the second question is relating to volatility introduced by shipping rates and what the company is doing to mitigate the variability on the gross margin line in respect to that?
Dr. Iman Schrock: So I can perhaps take the first question. So as a company, we’re accelerating our spend in sales and marketing aimed at brick-and-mortar retailers. Because as of right now, we’re seeing a huge, huge issue in the industry as a whole with large inventory needs, and that represents a lot of opportunity for us to basically penetrate and capture market share. Digital-only retailers also continue to gain momentum and large — but at the end of the day, the large majority of future cells are happening at the physical location, so gaining market share would require us to remain focused on the brick and mortar. And as far as your question about the opportunity, I believe that would also continue to remain with the brick-and-mortar side of things going forward.
Unidentified Analyst: Just a follow-up there, so where do you think your penetration rate is into that segment if you think it’s so underpenetrated?
Dr. Iman Schrock: So I can give you an idea about the total addressable market within that category. And by the way, the big and bulky is very, very fragmented. It includes for us, furniture is obviously the biggest, but there’s also home fitness, there is gardening, there’s even auto parts, there are so many categories that would qualify as big and bulky and super fragmented in every single one of those. Furniture being the biggest, the total addressable market in the U.S., one of our markets, the biggest market, is about $60 billion a year in wholesale volume.