Thank you for standing by and welcome to the Marley Spoon Q4 FY 2021 results investor conference call. All participants are in a listen only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Fabian Siegel, CEO. Please go ahead. Yeah, thank you. Good afternoon and thanks for joining our investor call. So my name is Fabian Siegel, founder and CEO of Marley Spoon. I have with me here today, Jennifer Bernstein, our CFO. Now earlier today, we released our fourth quarter results as well as our unaudited financial results for our financial and calendar year 2021, and we are looking forward to presenting those results to you today, as well as providing you with an update on the business. We also published a Q4 results presentation, which I will be referring to on this call. At the end, as usual, we will open the call to your questions. Now, if you turn to page three in the investor presentation, you will be able to review some of the operational highlights achieved during the fourth quarter in 2021. We finished the year with a quarter of accelerating growth. Net revenue in the quarter grew 24% year-over-year, and overall full year 2021 revenue grew 27% to EUR 322 million. In addition to this expansion of our top line, we also expanded our contribution margin to 31% at the end of the year, which is the highest margin recorded globally for Marley Spoon. Now, this margin was achieved in an operating environment of volatile supply chains and inflation. Thanks to improvements in our execution function, our margin performance was also aided by successful price increases, which demonstrates the pricing power our brands enjoy. Overall, the full year revenue growth and contribution margin landed within guidance. During the fourth quarter, we continued our disciplined investment into marketing to grow our subscriber base at attractive unit economics. As you will hear later on the call, we are pleased with our ability to acquire customers at attractive acquisition costs in line with prior years despite an inflationary CPM environment and while operating at much larger scale. Now moving on to page four in the results deck, I would like to share our rationale for the acquisition of Chefgood, which closed in early January and will be consolidated into our 2022 financial results going forward. Marley Spoon's strategy is to resolve recurring everyday problems by offering personalized and sustainable direct to consumer solutions. All the brands we operate need to meet our internal unit economic thresholds, and our strategy to grow is on the one hand, via attracting new subscribers, and on the other hand, by increasing the share of wallet and hence increasing ARPU for our existing subscriber base. We have been offering ready to heat meals to our Marley Spoon customers in Australia and United States for some time now, which taught us that meal subscribers value such an offering. We have observed customers selecting ready to heat meals to replace a meal they otherwise would have cooked. More importantly, we see many customers adding an incremental meal to their weekly Marley Spoon box, leading to an increase in ARPU across our subscriber base. We have also learned over the past years that some consumer groups prefer an even more convenient and healthy way to eat, which does not require any cooking at all. In the past, we were not able to offer those customers a comprehensive solution, but we did gather those potential customer touch points over the years as part of our general marketing activities. Chefgood is an Australian direct to consumer ready meal business that provides a weekly rotating menu of 30 mains, eight breakfasts and seven snacks. Their meals are highly rated by a growing customer base, and they operate out of their own manufacturing facility. The business has been growing rapidly to a AUD 26 million net revenue run rate while generating positive EBITDA and net cash flow. The combination with Chefgood will allow us to increase customer choice, which we believe will lead to an increased engagement and support our strategy of increasing ARPU for our meal kit brands. Furthermore, we see an opportunity to cross-sell to our lead pools and hence increase our marketing efficiency across all brands as we now can offer the right solution, meal kit or ready-to-heat subscription to our target audience. Finally, by moving our ready to heat meal options that we are currently sourcing externally in-house and by combining our sourcing activities, we have identified synergies which we expect to benefit from. The upfront purchase price of up to AUD 21 million, which is being paid in two tranches in 2022, implies a revenue multiple of up to 0.8x on the revenue run rate. Furthermore, performance-based earn outs are payable in tranches throughout 2024 of up to AUD 5.6 million. The transaction was funded by a combination of debt and equity placement of in total AUD 90 million. Now, I'm excited about welcoming founder Michelle and her team to join the Marley Spoon team as we see great strategic fit while also having agreed on an attractive financial deal structure. Moving on to page five in the deck, which provides a summary of the overall financial performance for the fourth quarter and the full year 2021. The earlier mentioned contribution margin expansion and the disciplined investment in marketing led to an improvement in operating EBITDA compared to the prior quarters, landing at -EUR 4.8 million. Full year 2021 EBITDA landed at -EUR 32 million. This loss was driven by growth investments into marketing and infrastructure in order to prepare the company for increased scale going forward. Operating cash was approximately -EUR 15 million, which is roughly half of our operating EBITDA loss. This demonstrates the attractive cash cycle of our subscription business. With a year-end cash balance of around EUR 39 million, we are sufficiently funded to execute our future growth strategy. Now, I would like to thank our teams for going the extra mile in a challenging year that was impacted by historic weather disruptions, supply chain challenges, labor shortages, inflationary pressure, as well as the continued COVID-19 pandemic. Despite these headwinds, we ended the year with accelerated growth in our highest contribution margin globally. With this, I would like to hand over to Jennifer. Thanks, Fabian. As you can see on page seven of the presentation, active subscribers in the fourth quarter grew 18% versus the prior corresponding period and also accelerated quarter-over-quarter. The quarterly subscriber growth was led by Australia with a 45% increase versus the PCP. On a two-year CAGR basis, however, all regions grew subscribers materially and at similar levels. In addition to increasing our subscriber base, we also expanded average revenue per user during the quarter by 5% versus the PCP. Initiatives like ready-to-heat and festive items during the holiday season in the U.S. contributed to the ARPU expansion and helped offset a seasonal reduction in orders per subscriber. Combined, our subscriber and ARPU growth led to the net revenue result in the fourth quarter, a 24% increase versus the PCP and a continued acceleration versus the two previous quarters. This delivery was also achieved with an improved level of marketing efficiency that was realized in 2021, as you can see on page eight. For the full year, we spent approximately EUR 66 per acquisition, a level that is consistent with the two previous pre-pandemic years, with the key difference being that we are acquiring at much greater scale and in a highly inflationary CPM environment. This helps translate to greater marketing leverage with marketing as a percent of sales coming down to 22% in 2021 versus 26% in 2019 pre-pandemic. On a quarterly basis, our marketing as a percent of net revenue also came down significantly relative to Q3, more in line with the first half of the year. On page nine, you see that we also realized greater leverage through our expanding margins, both in contribution margin, which is net of marketing vouchers, and operating contribution margin, which excludes the impact of marketing vouchers and fixed costs such as expenses relating to site leases. In both instances, we saw successive improvement across the last three quarters of the year and finished 2021 with a Q4 contribution margin of 31%, which is two points better than the prior corresponding period. All regions contributed to the improving trend over the course of the year, overcoming the various external operating headwinds that we experienced throughout 2021. Looking more specifically by region, starting on page nine, the U.S. realized 3% growth in active subscribers versus a heavily COVID-19 impacted PCP during which consumers did not travel. Conversely, in Q4 2021, consumers were exhibiting significant holiday and vacation behavior. Looking over a two-year horizon, however, the U.S. subscriber base increased at a CAGR of 46%. The region delivered 15% net revenue growth in Q4 versus the PCP, aided by ARPU increases and the impact of pricing actions taken during Q3. Margins expanded nearly four points in the quarter, demonstrating the region's greater ability to offset labor and inflationary challenges. Looking at Australia on page 10, you can see an increase in the active subscriber base of 45% in the quarter versus the PCP, aided by the launch of Marley Spoon in Western Australia. Revenue also grew significantly at approximately 53% for the quarter. Margins held steady versus the PCP in the face of supply chain disruptions and additional costs incurred related to COVID. Australia returned to profitability this quarter, delivering EUR 2.5 million of operating EBITDA. In addition, as Fabian mentioned, we closed the Chefgood transaction and are looking forward to adding their ready-to-eat offerings to our portfolio. Finally, on page 11, Europe continued to grow active subscribers, delivering 18% growth in Q4 versus the PCP and 42% on a two-year CAGR basis. Net revenue growth did remain flat for the period, driven by both a higher tendency of customers to skip and vacation in the quarter as well as Dinnerly representing a higher part of the sales mix than in previous quarters. Our Q4 2021 financial position is summarized on page three, page 13. We delivered strong net revenue in the quarter, accelerating versus Q3 and growing 24% versus the PCP. Thanks to pricing actions and operational improvements, we were able to also accelerate contribution margin, hitting 31% in Q4. G&A stayed relatively stable over the course of the year, landing at 21% of net revenue in the quarter and just below 20% for the full year. This is owing to increased investments in our operations and infrastructure during the year. We improved operating EBITDA in Q4 relative to the year's previous quarters, delivering -EUR 4.8 million stemming from our marketing and fixed cost investments. Finally, you can see our full year 2021 cash landing and current liquidity position on page 14. We ended the year with approximately EUR 39 million in cash, which includes a EUR 7 million extension of our Runway debt facility to partially fund the Chefgood transaction. Our full year 2021 cash from operations was - EUR 15 million, better than half our full year operating EBITDA losses, driven largely by our working capital dynamics. Our overall liquidity is currently EUR 55 million. This considers the January payout of tranche one of the Chefgood purchase price. This month's EUR 5 million equity raise available to us for future Chefgood purchase price payouts, and tranche two of our debt facility with Runway Growth Capital available to us starting from April 2022. We believe this overall liquidity is sufficient for our current growth plans. With this, I would like to turn it back over to Fabian. Yeah, thank you, Jennifer. Now let's move on to page 16. As we summarize, 2021 was a year of growth, operational improvements, expanded product offerings, and we're ending the year with a simplified balance sheet. We surpassed EUR 300 million in sales and delivered nearly 60 million meals to our subscribers. We've improved our systems and strengthened our teams, which allowed us to achieve an attractive and stable contribution margin in a volatile operating environment. We increased our offering to our subscribers, which led to an increase in order value and ARPU. With the conversion of all outstanding convertible bonds in 2021, we also finished the year with a simpler balance sheet and adequate funding and liquidity to support our growth strategy. This leads me to our 2022 priorities, which we shared on page 17 of the results deck. Now, our 2022 strategy is guided by our continued focus on improving the experience of our customers by continuing to build a strong multi-local culture, by continued growth within our balance sheet capacity, as well as by maintaining our attractive contribution margins and focusing on cost discipline. Our priorities will be first to continue to grow our business. We aim to achieve this by increasing our subscriber base at attractive acquisition cost. The related investment to marketing will be weighted towards the first half of the year. Furthermore, we plan to increase choice and personalization for our customers to further drive ARPU. Finally, we will continue to invest into our end-to-end customer experience, which already in 2021 was recognized as industry leading as we won customer service industry awards in Germany and the United States. As we continue to grow, our second priority will be to maintain our contribution margin and manage costs by continuously assessing the way we operate and aspiring to find new and more agile and efficient ways to get things done. Furthermore, we will continue to invest in automation, while at the same time decreasing our overall CapEx level compared to 2021. The third priority will be to integrate Chefgood, and we expect to benefit from initial synergies such as purchasing and marketing to be realized first, while an integration of operations will yield additional synergies in the longer term. With regards to the outlook of 2022, we expect continuous volatile customer behavior, supply chain disruptions and inflation. We provided guidance on page 18 of the results deck, which does not yet factor in the impact of our Chefgood acquisition. This year, we expect organic revenue growth of mid- to high-10s plus the full year contribution from Chefgood. We expect contribution margin in 2022 to be in line with 2021, and we expect operating EBITDA to improve year-over-year to better than -EUR 50 million. Thank you for taking the time this afternoon, and with that, I would now like to open the call to questions. The first question comes from Owen Humphries from Canaccord. Please go ahead. Thanks, guys, and thanks for taking my question. I might just maybe just touch on the outlook statement there. Just wondering just with the marketing spend being weighted to the first half. Just talk me through the CAC or the marketing environment that you're seeing today and what you're expecting through FY 2022. Yeah, I think we provided visibility in 2021, and this is our CAC was actually in line with prior years despite the much larger scale that we operate in and also an environment where indeed CPMs are inflated. We are doing, as you can see in the results, we're able to offset this by just operating better, smarter, having better acquisition channel control, applying more technology into certain ways to predict LTVs, for example, that allows us to bid better and then in the end get the same efficiency. Our expectation is that we should be able to continue to do that. The year started well, and so far we do not expect our marketing efficiency to decline year-over-year. Quite the opposite. We think that we can continue to offset potential environmental CPM inflation by this better way and higher efficiencies that we have in our marketing activities. Okay. Good one. Just Does that answer the question? No, it does. Yeah. Thanks, Fabian. Maybe just a question: Have you changed your CapEx plan in the last quarter? Obviously, you're saying the CapEx to reduce versus FY 2021. Have you deferred any CapEx plans this year into FY 2022-2023? Maybe a question for Jen: Given the plan around the guidance, where do you expect liquidity to end in FY 2022? Jennifer, do you want to take both of those? Yeah, yeah, I got it. We had a CapEx of about $20 million in full year 2021. As you know, we opened two new fulfillment centers in Sydney and California. With those now both fully operational, we do see a reduction in our CapEx plans for 2022. I wouldn't call it a postponement per se versus you know we did the big investments already in the capacity expansion as well as introducing the new technology that we have in each of the fulfillment centers in the U.S. The focus in 2022 is gonna be more about automation, warehouse management systems, those kinds of things, selected investments as opposed to the big you know the big expansion projects that we saw last year. With respect to liquidity for the full year, we're not guiding to that. We guide to operating EBITDA as we've just done. I think, you know, you see the slide in the investor presentation. We feel that, at least in terms of, you know, how you wanna think about modeling it, you know, we've got the second runway tranche available to us after the first quarter. We've guided to lower CapEx. We're guiding to improved operating EBITDA versus 2021. We'll leave it at that for now. Just to add also one other thing to point out, I mean, I think there is a historical. Historically we have delivered cash from operating activities that is better than operating EBITDA. I think that's just another way you can think about your modeling. Good one. Thanks, Jen. Thanks, guys. Yep. Thanks, everyone. Thank you. Your next question comes from Elijah Mayr from CLSA. Please go ahead. Hi, guys. Thanks for the question. Just a couple from me. Maybe just firstly touching on the changes or the impacts on labor and what you're seeing in food inflation, I guess, during the quarter and how that sort of transitioned into January and I guess how that sort of goes into your guidance and expectations for 2022. Jennifer, you wanna take that margin? Yeah. Yeah, I can take that. I mean, I would actually say the inflation, as you're all probably reading about it, is actually not even isolated to food, in fact. We're seeing fuel inflation, of course food, some packaging materials. We saw it hit already at the end of last year, so that was partly why we took the price increases in principally the U.S., although we had price increases as well in Australia and E.U. at the end of Q3. That helped to offset the food inflation that we were seeing. We are still definitely seeing it in 2022, which is why our current margin guidance is essentially to be in line with 2021. That's really driven by two things. It's not only the inflation that we're seeing across the board, again, globally, in addition to the supply chain challenges, not necessarily getting the products that we want, needing to make substitutions, the challenges our carriers are having in terms of finding labor, our own labor challenges. You know, all of these things are factored into our plans, so we've definitely considered them. There's also a degree of wanting to invest back into the customer, despite the inflation that we're experiencing, so hence the margin guidance. I would say the food inflation is uniform around the globe. We're just, you know, doing what we can to be more agile in terms of negotiating with our vendors, joining buying groups in the U.S., for example, where it makes sense to try to get more efficient pricing. If that answers your question. Yeah. Yeah. No, no, that's good. I guess, I mean, if you continue to see inflation going into 2022, how much scope is there for you guys to increase prices? Or will you guys hold off on that given you've recently, I guess, increased them, particularly in the U.S.? We increased prices in all regions. Oh, sorry, go ahead. We increased pricing in all regions last year. What was interesting is we normally model the reaction of customers to those price increases because when you first announce them, you tend to see higher churn rates for a certain period of time. You see certain skip rates for a certain period of time. Especially in the U.S. where we took the biggest price increases, we saw actually customers very much understanding and accepting those price increases, which kind of demonstrates the pricing power that our brands enjoy. We saw lower skip and churn than what we had expected based on data we had seen in earlier price increases we've done historically. We see that other brands in the space experience the same situation and consumers experience prices in supermarkets going up. What we've seen is that overall, we and also others have been offsetting some of those inflation that we've experienced, and customers are supporting that. When we look into our positioning, the way we position our brands, we never position our brands in the various price bands we operate in. As you know, we have Dinnerly, Marley Spoon that try to focus on different audiences. We never position our brands as the cheapest player. Our value proposition is more around convenience and choice and experience in Marley Spoon, and around simplicity and enabling people's lives in the Dinnerly space. We've seen by now that other competitors also have leveled pricing so that we are basically in a similar position before we took our first price actions last year, which puts us potentially in the situation that when necessary, we feel we can in a measured way take pricing as we see inflation and consumer experience inflation in the supermarket. I think I wouldn't rule it out. I think we certainly have the capability to maintain our margins that way. However, there's many other things that we also can do to support margins in the operational side that we are confident that our margins should remain strong as we have multiple avenues to offset potential inflationary impacts, as Jennifer has mentioned earlier, that we've planned them and considered them in. Excellent. Thanks. I'll park it there. Thanks, Elijah Mayr. Thank you. Your next question comes from [Nishant Pereira] from Magnolia Capital. Please go ahead. Hi, guys. Hi. Thanks for taking the call. Can you talk a little bit about the U.S. market and, you know, where you think it's headed for 2022, given that we would have liked to see those numbers go up a little bit, comparing to some of your competitors? I think they've had about, you know, 35 or 40, nearly 40% active customer growth. Can you know, describe on what would be the plan for the U.S. market to get that growth moving? Yeah, absolutely. I mean, we are guiding to growth for next year. That growth will be supported by all the regions. We always say we are not guiding to individual regions growth as we are agnostic in terms of where we acquire our customers. We have a global lens, acquiring customers at the right unit economics, where we find them, and this can be different quarter over quarter in the various regions. Especially the last two years as we have had quite a different timing impact on various COVID-19 related customer behavior changes. This has been different in the various regions quarter over quarter, so it didn't happen uniformly across our regions. Having said that, we do believe the U.S. growth probably will be led by the U.S. We see the U.S. as continuing to be one of the large growth opportunities for our business where we can grow attractively. Again, I think growth will come from all the regions next year, and U.S. will probably be leading that, as the acquisition environment remains attractive. The market is huge, and the market is very well developed, and we see good success with our brands that we've positioned there. It's definitely part of our growth story and growth focus will continue to be the United States. Thanks, Fabian. Just one other question from me. Regarding Australia, so we've had really good numbers and as you know, the lockdowns got, you know, ended towards the end of last year. How do you see the growth coming in Australia after both New South Wales and Victoria ending the lockdown? Yeah. The reason why we provided subscriber growth two-year CAGR numbers this time around, because we wanted to help to see through indeed this different phasing. We saw a bigger impact on COVID related lockdowns in Q4 in Australia and inversely in the U.S. it was the other way around. Despite Omicron also being present there, customer behavior was not really impacted at all. Quite the opposite. The Christmas holiday travel season was one of the busiest in recent history, despite Omicron. We've seen the impact in different quarters in the different regions. If you really look through and look at the overall continued growth, you see actually similar subscriber growth across all the regions. While there might be quarter-over-quarter impacts on how countries lock down and open up again, it doesn't change, we believe, that the overall growth is uniform throughout the regions as we see a customer behavior that is once they switch from offline to online shopping and realize the benefits of and convenience of shopping and cooking with a meal kit compared to the supermarket, this actually persists and provides continuous growth. There might be quarter-over-quarter changes in baseline customer behavior, which has a big impact on revenue growth. We provided in the appendix an updated slide where we show how our subscriber base is distributed across our revenue. The majority of our sales are from existing customers, not from new customers. As you've got this big base of recurring revenue, it tends to be impacted a lot by change in behavior and frequency that we've seen over the past two years. We would say, let's look through the quarter-over-quarter impact and look more at the long-term growth trends. There we see actually strong growth in Australia and the U.S. and Europe, quite uniform on subscriber base. I would say, quarter-over-quarter, you might see a higher variance on frequency as customer behavior is quite fluctuating. It only masks, it doesn't change the overall growth that is quite strong uniformly across all the regions over the past two years. We expect more growth also in 2022. Thanks for that. Last one from me, I guess. What do you guys think needs to be done to get the investor confidence back in the company? I think our plan is to consistently operate on acquiring customers at the right acquisition cost, but also manage the overall balance sheet and manage overall cost that we can operate within our financial means and balance sheets strength. I think that's one part where last year there was a bigger variance compared to the prior year in terms of profitability. I think this year or the coming year will see an improvement over the past year. I think we listened to the market and adjusted accordingly our strategy to be disciplined around bottom line while also continue to grow. It's about delivering on those expectations, and our ambition for this year will be, now that we've set these expectations, to deliver on those expectations. As we deliver on those expectations, we think that the equity value should be catching up to the business we believe that we're building here. Thank you, guys. Thanks for the question. Thank you. Your next question comes from James Ferrier from Wilsons. Please go ahead. Hi, Fabian and Jennifer. Thank you for your time. First question is just around a comment from your prepared remarks there earlier, Fabian, suggesting or you're saying that the business has started the new year well. I know in the third quarter of last year, Marley Spoon and your peers experienced a sort of slower ramp up in customer acquisition success around customers taking sort of longer holidays, if you like, taking longer to reengage after holidays. Are you seeing anything similar, as customers come back after the recent holiday break? Yeah. What we saw in the third quarter is we had modeled the third quarter 2021 based on 2019's holiday behavior. It turned out people were catching up on holidays, and therefore we saw lower base frequency but also was much harder to acquire new customers, as when people are on holiday, you just can't, it's harder to acquire them to sign up for a new kit subscription. Now, the holiday back then, the summer holiday is different kind of holiday than the winter holiday around Christmas and New Year's, which is very much within the fourth quarter. We have seen. Therefore, this extended holiday behavior was really around those concentrated two weeks. Q1 started well. We see our Q1 is always a good quarter for us to acquire new subscribers. We see a similar attraction as we see in prior years. At this point in time, we are actually quite confident how the year has started. That will aid not only growth but also marketing efficiency. Yeah. Thank you. Looking at your guidance there, your sales guidance for calendar 2022, mid- to high-10s. I know last year was somewhat unique in that the way you would normally model customer activity, probably, you know, the reality deviated from that at times during the year. I'm just looking at your guidance here for sales growth in calendar 2022 and then trying to connect that to your medium-term revenue goals or targets for the business and what that implied CAGR would mean. You just, you know, what you're thinking about next year relative to those medium-term goals. I mean, what we have done is we've learned from last year's volatility and customer behavior. We've basically applied therefore an approach where we factor that in also for 2022. As mentioned earlier, our ambition is to give guidance, stable and solid guidance, as much as you can in an environment that's quite volatile. Factoring in that over the next quarters, your customers might still behave differently than what we expect, we're coming up with the guidance that we've presented to the market. It doesn't change the midterm outlook that we think we are building a business of much larger scale, and it's all about hitting a specific number in a specific year, but also just giving the overall view on groceries, which is a massive vertical that compared to other verticals, has not really switched dramatically from offline to online shopping. We see the opportunity to build a much larger business in the midterm. It's not about one individual year. I think the year 2022 is less about maximizing top line growth, but more about managing bottom line expectations. Therefore I think the priorities for this year is to be disciplined in the growth, to manage the bottom line performance, while at the same time still delivering, we think, quite solid growth for the overall business. Okay. That's very helpful. Again, looking at this calendar 2022 year, what are your thoughts around the G&A expense line? We've seen that pick up sort of progressively through calendar 2021. You've probably got a pretty good line of sight on, you know, where you've enhanced capability across the business. Do you expect that cost line to increase further in 2022? Perhaps talking in as a percentage of sales might be an easier reference point for you. I'll leave that one with you. I think 2021, we had to invest into processes and people. We had to basically catch up with the businesses that doubled in 2020. You saw as we did those investments, you saw that the G&A cost increased throughout the year. Some of the costs, of course, given the annualization effect, the data did not have full impact in 2021. But at the same time, when you then expand, at some point in time, you can then sit back and look at and reassess and understand what is actually adding value, what's impacting the customer, and maybe where are areas where, it's not the most agile way to operate. I think we are in this phase that last year, where we expanded capabilities, this year we're refining and understanding what works really, really well and we wanna double down on, and what maybe is not as important and necessary to have a better refined cost structure. Maybe Jennifer, if you can give a little bit more pronounced view in terms of how that might then pan out for the numbers for 2022 to the ability we can give it. I mean, we actually haven't guided, James, to G&A, but as Fabian said, we are taking the time this year to, you know, let's say, refine the cost structure, look a little bit more carefully about how we can do things a bit differently. Centralized cost, for example, as you know, we announced Rolf as our new COO, so that, of course, creates an opportunity to centralize certain activities for greater efficiency. You asked the question, I think, you know, would we see, you know, any further investment or a step up in cost? I wouldn't say that. We ended the year in 2021, as I mentioned, just shy of 20%. So I don't see us exceeding that number. At this point, we're not guiding on G&A. Oh, okay. That's fine, and thanks very much for the color. Thanks, James. Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. The next question comes from [Umesh Kantpal] from Magnolia Capital. Please go ahead. Thank you. Hey, Fabian. Quick question on. I'm not gonna focus on U.S. and Europe because I understand you've been doing all the right initiatives to bring those business on track and improve the margins. I'm more curious to know about Australia, where you have turned the number on their head. Also with the acquisition of Chefgood, what's the plan going ahead? My first question is Chefgood your existing supplier or not? And second, how do you see the change in the business model when you integrate Chefgood into your Australian business? What will be the impact on your margins given, are you gonna operate them on a standalone basis, or there will be any synergies that you foresee in 2022? Yeah. Good questions. I mean, first of all, currently our ready-to-heat meals are not from Chefgood. Just the opportunity to move onto Chefgood ready-to-heat meals for our Marley Spoon and Dinnerly range. There are some synergies and cost improvement stemming from that. There is some opportunities, some low-hanging fruit you could argue right there. Now I think what's exciting is twofold. On the one hand side, there are synergies on the sourcing side. We are a much larger purchaser of items than Chefgood, and so there's the opportunity to improve the margin profile, which already today is in line with our margin profile. The acquisition is not dilutive to our margin profile. There are synergies that we might be able to generate for the Chefgood business by, for example, leveraging the scale of items that we are purchasing. There's another interesting synergy, that's on the marketing efficiency. We currently, Chefgood is acquiring a very attractive unit economic standalone unit economics that are in line and very competitive to the unit economics that we operate in Australia with our two brands. Now we have over the past years touched a lot of customers. Many of those customers were interested in subscription and interested in getting their meal problem solved. Maybe the meal kit where they had to cook wasn't for them. I think there's opportunity to leverage the lead pools, and see whether we can now offer to those customers a product that really fits their needs, which is a ready-to-heat only or ready-to-heat subscription like Chefgood. I think that these are exciting synergies. They are not part of the plan, so to say. They're upsides to the plan. As we now start to operate together, it will be interesting to see how they can actually aid the business over the coming year and the following years. Right. Okay. Is the business gonna remain as a subscription model similar to Marley Spoon? Yes. I mean, our core strategy is we believe that there is an opportunity to solve recurring everyday problems in personalized and sustainable ways. A subscription basically is what continuously solves a specific problem. Marley Spoon, Dinnerly, and also Chefgood solve the problem, what are we eating tonight. The notion of subscription, I think, is very important, because as compared to a retail business, say Amazon, which solves primarily non-recurring things that you need here and there, so the retail model that's not personalized because you just buy an SKU that is on stock. The opportunity to solve a recurring problem through a subscription allows you to personalize the solution towards the customer. I think that's been driving the Marley Spoon's success compared to traditional e-commerce. People just get one problem solved. They don't have to think about it anymore. They just use the app, select the recipes that they like, that's customized to their preference based on the behavior that is observed, and that provides a much better, a much more convenient experience. The same applies for people that don't wanna cook. That's why there was such a good strategic fit as Chefgood primarily is a direct-to-consumer subscription business, and it fit very well our strategy that we're currently executing. Yeah. Okay. Sorry, I'll try to be more specific. In terms of the business operations, so let's say if I'm a customer placing an order on Marley Spoon for a mix of products, which includes your existing Marley Spoon product and your Chefgood products. Are they gonna be fulfilled from one place, or are they gonna remain independent? Will there be any revenue cannibalization for Marley Spoon existing customer business? Yeah, it's a good question. I mean, today already we offer ready-to-heat as part of our range. If you say you cook 3x a week and then you say, well, there's a lunch option where I don't wanna cook, then later today you can use ready-to-heat option. It's called the Marley Spoon ready-to-heat option, and you just add it into your meal kit. Currently, we use a third-party supplier, and switching that to an in-house Chefgood team will of course allow us to increase our margin profile on that use case. And that doesn't cannibalize with, we believe, customers that don't cook at all. They happen to be different demographics. Our Marley Spoon demographic tends to be roughly 30- 65-year-old, living in a committed relationship, having a very regular life where cooking is already part of their established routine. But there's other audiences, younger audience, for example, people with more unsteady lives that maybe have not made cooking a part of their routines. And those audiences currently, we can't really offer them a product. We have a small group of customers that indeed order only ready-to-heat meals from Marley Spoon, but it's a very, very small group as our brand isn't really focused on this audience. And therefore, while you might see cross-selling between a Chefgood brand and a Marley Spoon brand, we see overall we rather increasing the reach, and that we can target with solution. We don't think it will dramatically cannibalize, but rather increase the relevant pool of consumers that we can serve with the three brands rather than the two brands we have been serving so far. Okay. Thank you. All right. Thank you. Your next question comes from Owen Humphries from Canaccord. Please go ahead. Hey, guys. Just a quick one. Just the fact that you've enhanced your fulfillment infrastructure in the majority of your sites in the last 12 months. We just talked about obviously ready-to-heats, festive products or meals, increased choice. I mean, you guys haven't talked much about the value-added side of it. Is there a plan to kind of increase the choice through individual grocery items as well? This year the strategy is to increase choice and personalization, which should aid to drive ARPU. That's like the overall growth. We have two areas. We will continue to acquire economical customers. We also see the opportunity to continue to drive ARPU, so basically selling more to existing customers. As part of that, we're also considering offering individual items. Now, we're sending to you a box anyway, and as we send to you a box, why not offer you an opportunity to drop something into that box? That's one element of our ambition for this year to drive ARPU. You will see over the course of the year these options be offered to the customer. Good one. Okay. Thanks, Fabian. Just double-checking. Thanks, Owen. Thank you. There are no further questions at this time. I'll now hand back to Mr. Siegel for closing remarks. Yeah. Thanks, everybody, for dialing in today. As we recapped before, I think there was a lot of growth last year. I think the team generated strong margin performance despite numerous headwinds. We did not deliver the bottom-line performance that we had hoped at the beginning of the year. I think that is something we've planned for this year to significantly improve on. This will be achieved by continuing to grow, but also by continuing to uphold strong margin, but also to be very conscious of refining the right investments and refining the cost structure to ensure that we deliver a bottom-line performance that for the first time we've guided to this year. We have a roadshow coming up for the next couple of days, and we're looking forward to reconnect one-on-one and also as part of the various broker calls with many of you. Thanks so much for dialing in, and looking forward to the conversation later this week. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.