Asit Sharma: Sure. If something, it raised extra questions. Effectively, let’s transfer on to financials and simply make a number of massive image observations. Interactive {hardware} income is the lion’s share of this firm’s topline. It is 87 % of whole income, 54 % is generated from retail companions, assume Amazon, Finest Purchase, Dick’s, Costco, and so forth. They have a great direct-to-consumer part that is 44 % of the enterprise. This interactive {hardware} piece has grown 108 % year-over-year. Earlier than COVID, it was rising at a charge of 16 % year-over-year. Nevertheless it’s solely bought a gross margin of 35 %, whereas that is up from 26 % in 2019. For anybody who’s been listening for the previous yr or so, I’ve a thumbnail that I’ll level you to for any form of manufacturing after which you’ll be able to easy it there primarily based on the sector or trade. However begin with a 50 % plus gross margin. If you happen to’re manufacturing any form of widget, you might be normally doing, OK when you think about your mounted bills. That is a little bit of a slim margin. Subscription income from iFit makes up the remaining 13 % of income. As you may anticipate, that subscription income is rising in a short time and it is extremely worthwhile. The subscription income grew 85 % year-over-year in the newest yr. It was additionally rising fairly briskly. Vis-a-vis that interactive {hardware} earlier than COVID grew 65 % year-over-year on the yr earlier than COVID. Gross margin on this enterprise is about 87 %, which I actually preferred. Emily, what are your observations about these margins?
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