Operator: Thank you for standing by, and welcome to the Leaf Group’s Fourth Quarter 2020 Earnings Call. On the call with me today are Sean Moriarty, CEO; Brian Gephart, CFO; and Shawn Milne, Investor Relations. Mr. Milne, you may begin your conference.
Shawn Milne: Good afternoon, everyone. On behalf of the Leaf Group, welcome to our conference call. I’m pleased to have Sean Moriarty, our Chief Executive Officer; and Brian Gephart, our Chief Financial Officer, on the call with me today. Following our Safe Harbor statement, Sean will update you on our business and Brian will provide more details on our quarterly financial performance. Any metrics discussed on the call without reference to a specific third-party source are based on our internal data. After the prepared remarks, we will open up the lines for Q&A. You will find a related release along with supplemental materials posted on the Investor Relations section of our corporate website located at ir.leafgroup.com. Before we get started, we need to make the following Safe Harbor statement. We would like to remind everyone that during today’s conference call, management will make certain forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from our current expectations discussed in such forward-looking statements. In particular, comments about our anticipated future revenue, earnings, operating expenses, operating metrics, and growth rates as well as statements regarding our business strategy and objectives, plans, intentions, operating outlook, planned investments, and the impact of recent acquisitions are considered forward-looking statements. Factors that could cause actual results to differ materially from anticipated results are detailed in our press release furnished to the SEC. I would like to point out that during the call, we will discuss certain non-GAAP financial measures while talking about the company’s financial and operating performance, including adjusted EBITDA and free cash flow. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures can be found in the financial tables included at the end of our press release. Lastly, I would like to remind everyone that today’s conference call is being recorded and that it is also available via webcast through the Investor Relations section of our corporate website. A replay will also be available on our website. With that, I’ll now turn the call over to our CEO, Sean Moriarty.
Sean Moriarty: Thank you, Shawn. Good afternoon and welcome to our Q4 2020 earnings call. Leaf Group delivered another excellent quarter of financial results, during which we furthered our mission of building online brands that consumers love and trust by connecting people to their passions and providing essential information to help them live richer and fuller lives. Before we jump into the Q4 highlights, I want to take a moment to thank our Leaf Group team for their tireless work this past year. This has been a challenging year for all of us and it is through their commitment, determination, and sacrifice that we continue to deliver strong performance despite the unprecedented volatility of 2020. Along with discussing our Q4 results, we will share some of the operating highlights and key initiatives that are fueling strong growth across Society6 Group and Saatchi Art Group as well as a strong operating contribution for our Media Group brands. Q4 revenue increased 44% year-over-year to $65 million, marking the highest quarterly revenue in seven years and continuing the strong momentum from the prior two quarters. Q4 revenue growth was driven by strong performance from Society6 Group and Saatchi Art Group. Both brands also delivered another record quarter of new customers in Q4. Society6 Group revenue increased 95% year-over-year, setting another revenue record for the brand. Saatchi Art Group revenue increased 48% year-over-year, driven by strong online growth and strengthened hospitality, which more than offset the cancellation and postponement of the other art fairs and live events in Q4. Q4 Media Group revenue decreased 17%, partially due to election-related softness and the overall impact of a volatile macro news cycle on our lifestyle brands. Media Group segment contribution margin remained strong at 44%, underscoring the resilience of our media portfolio. Q4 adjusted EBITDA was $1.7 million, a $1.9 million improvement year-over-year. Over the past four years, we have dramatically transformed the company from a primarily content light high-volume digital publisher to a diverse portfolio of high-quality brands in key lifestyle categories. Since 2016, we nearly doubled revenue from $113 million to $212 million in 2020, all while significantly improving the bottom line, from an adjusted EBITDA loss of $15 million in 2016 to positive adjusted EBITDA of $1 million in 2020. Over the past four years, Society6 Group has delivered significant growth, increasing revenue from roughly $60 million in 2016 to $138 million in 2020. Our strategy of deepening the brand’s catalog of home decor products differentiated it from many of its competitors, while positioning Society6 as an emerging marketplace leader in online home decor. Society6 has grown its product assortment from 12 products at the time of acquisition to more than 75 premium products in 2020. Recent improvements in the user experience, combined with the brand’s high-quality made-to-order products featuring original unique designs have resonated with consumers. Society6 has significantly expanded its global community of independent artists, nearly doubling from 218,000 artists in 2016 to more than 400,000 artists at the end of 2020. With the acquisition of Deny Designs in 2017, the Society6 brand has quickly grown its B2B channel, developing deep relationships with retailers such as Nordstrom, Wayfair, Target and Walmart, and hospitality brands such as SpringHill Suites by Marriott. Saatchi Art was founded on a vision of democratizing the art world for both artists and art buyers alike by providing transparency around pricing and an online platform where emerging artists can showcase their work. Saatchi Art Group has delivered impressive growth, expanding from 74,000 artists in 2016 to more than 115,000 artists in 2020, and growing revenue from $6.3 million in 2016 to $17.1 million in 2020. Saatchi Art Group delivered $39 million in GTV in 2020. In 2016, we acquired The Other Art Fair, merging a real world’s fair business with Saatchi Art’s global online marketplace. Now with the art world experiencing significant disruption following the closure of brick-and-mortar galleries and an accelerated shift online, we are well positioned to capitalize on this increased demand for online art sales. In 2018, Saatchi Art launched its hospitality trade business, creating a new and fast-growing sales channel that has quickly established relationships with some of the world’s most recognized hospitality brands, including the Four Seasons and the Dream Hotels. Our digital media business has undergone a similar transformation over the course of the past four years. Our efforts have focused on acquiring and growing brands in key high passion categories, and we’ve worked tirelessly to expand and raise the profile of each of our premium media properties. In 2017, we launched Hunker to fill a void in online home design that at the time mainly focused on ultra affluent or low-budget DIY. Hunker’s fresh and approachable perspective on interior design quickly connected with audiences and is now visited by millions of consumers every month. In 2018, we acquired Well+Good, significantly deepening our position in the fitness and wellness category, while also expanding our direct sales capabilities. This past month, Well+Good launched dedicated e-commerce shop where consumers can purchase the beauty and wellness products loved by our editors, creating a new revenue stream for the brand. We have long believed in the significant opportunity presented by the marriage of content and commerce, and we are excited by this new Well+Good venture. In February 2019, we acquired OnlyInYourState and have quickly scaled the business, further demonstrating the leverage and scalability of our proprietary media technology platform. Alongside organically growing and acquiring new brands to expand the portfolio, we have also strategically divested non-core assets, including the $39 million sale of Cracked in 2016 and the sale of a content library to publishing partner Hearst for $9.5 million this past spring. On top of the strong financial results we delivered in Q4, our teams made significant platform improvements, introduced new products and established exciting new partnerships to expand our brand awareness throughout 2020. Within our home art and design category, Society6 launched 12 new products in 2020, including a refresh of our tech suite. Society6 made significant improvements to the platform, including enhancements to checkout mobile optimization, which helped fuel improvements in conversion rates alongside robust consumer demand. Saatchi Art celebrated its 10th anniversary in 2020. Remaining true to the brand’s roots as a market innovator, Saatchi Art launched a new augmented reality tool across mobile web and focused on multi-layered marketing campaigns to drive brand awareness. Despite the challenging year for digital publishers, Hunker delivered stable revenue in 2020 and expanded its relationship with blue-chip advertisers such as Walmart. Within our fitness and wellness category, Well+Good is focused on growing audience and diversifying traffic and revenue in 2020 and expanding its commerce offerings. In Q4, livestrong.com largely completed its multiyear editorial transformation, trimming the site from 94,000 articles in 2018 to 34,000 high-quality articles with a deeper focus on fitness. OnlyInYourState increased traffic by over 20% year-over-year in 2020 despite a disruptive year for travel and tourism. By December 2020, OnlyInYourState reached approximately 9.5 million unique monthly visitors, ranking as the third largest travel and information site according to comScore. As the world emerges from the pandemic, the online home goods category is a clear winner. We operate in a $50 billion online market and have room for significant growth in the coming years. Society6 Group GTV increased 103%, driven by 124% growth in U.S. direct-to-consumer year-over-year. Q4 was another record quarter for new customers. B2B delivered another strong quarter with 44% year-over-year growth in GTV on the back of an especially strong drop ship retail channel, highlighted by a new partnership with subscription box service FabFitFun and record orders with existing partners Target and Wayfair. Society6 executed at a high level in Q4 as the team was prepared for an early start to the 2020 holiday shopping season. We could not be more pleased with our team’s customer service and the ability of our vendor partners to scale and deliver against the doubling of order volume in the quarter. In addition, the team introduced several new products in the quarter, including water bottles, new calendars and planners as well as the refreshed tech suite. We see significant room for product expansion in the coming quarters and years as our made-to-order platform is perfectly positioned to introduce high-quality affordable products to our loyal customer base. In Q4, Society6 launched new partnerships that further extend our brand reach, including programs with Stitch Fix and Showtime. In Q4, we also launched a partnership with Disney and Star Wars to celebrate the season two premiere of The Mandalorian. This is the first of a number of collaborations with Disney planned for 2021. We believe the Society6 model is disruptive, transformative, and uniquely positioned to prosper in this rapidly changing retail landscape. Here are the key tenets of the Society6 model: personalized design first shopping, made-to-order premium products, a two-sided marketplace with a community of over 400,000 artists in a global customer base, no inventory risk, the global fulfillment network, asset-light, and negative working capital. After the investments we made in 2019 and early 2020, and on the heels of a record breaking year, the overall Society6 flywheel is spinning faster, setting the brand up for strong sustainable growth over the next several years. In Q4, our global artist community continued to grow. These artists have created over 8 million unique designs available across the marketplace, and we see an average of 6,000 new designs uploaded every day. Society6 delivered record new customer growth in Q4, up 14% from the record in Q3. This large cohort of new customers in 2020, together with early signs of strong repeat purchase rates, we believe sets the stage for sustainable growth in coming quarters. The repeat purchase rate for the Q2 2020 new customer cohort was up 30%-plus year-over-year in Q4. Our customer satisfaction rates are high and our average order value increased 7% year-over-year to $72 in 2020 for our D2C customers. Saatchi Art Group delivered strong 48% revenue growth, driven by 50% growth in online marketplace GTV and strong growth in hospitality, including a deal with the Four Seasons Hotel in New Orleans. The online art market is seeing profound changes in consumer behavior as people are increasingly focused on the home. Additionally, the closing of local galleries worldwide is fueling accelerated online spending in the category. In the second half of 2020, the team launched augmented reality capability for collectors using their mobile phone. Early signs show that this feature is driving consumer confidence as conversion rates for these customers are 4 times higher. The Other Art Fair’s online studios continues to deliver strong results. Since its launch in April, online studios delivered roughly $3 million in GTV by the end of Q4. Online studios has paved the way for a significant new digital event strategy for 2021, pairing virtual reality and offline programming for a global audience. Q4 Media Group revenue decreased 17% year-over-year. Despite the decline, we are poised for recovery in 2021 and we are in the right categories to drive long-term growth in media. We are focused on revenue diversification for our digital media brands, including the recently launched Well+Good shop. Media Group segment operating contribution was strong as the media portfolio continues to generate significant cash. In Q4, we raised $32 million in capital to further fund our growth plans. We expect part of that growth to come through M&A to add new brands to our portfolio that advance our strategy. We look for founder-led bootstrap businesses that may be too small for private equity and not growing fast enough for venture capital, but are well positioned for many years of double-digit growth on our platform. Employing a thoughtful and disciplined approach to M&A, we have established a track record of acquiring and integrating high-quality businesses at reasonable prices, which are both strategic and accretive. Examples include Well+Good, which along with Livestrong deepened our authority in the fitness and wellness space; Deny Designs, which significantly accelerated Society6’s B2B channel; and The Other Art Fair, which is a perfect omnichannel complement to the Saatchi Art platform. In 2019, we acquired OnlyInYourState and quickly scaled its revenue on our media platform. At the end of Q4, OnlyInYourState was the third largest travel information site according to comScore. We’ve delivered another quarter of strong revenue growth, capping a year of significant growth, driving improved operating margin and cash flow. We have a highly profitable balanced media portfolio, which generates a significant amount of cash. Saatchi Art is well on its way to brand leadership as it scales in a $60 billion plus art market that is rapidly transforming as consumers and collectors move online. Society6 is an emerging winner in a permanently changed retail landscape with accelerating e-commerce penetration and strong positioning in the home category. We couldn’t be more excited about our current businesses and opportunity to drive growth, profitability, and shareholder value as we build brands consumers love and trust. With that, I will turn it over to Brian Gephart for a deeper review of the financials.
Brian Gephart: Thanks, Sean. Before we get into Q4 results, as a reminder, starting in Q3 we separated our historical marketplaces segment into two segments, Society6 Group and Saatchi Art Group, and aligned our reportable segments to reflect this change resulting in three reportable segments: Society6 Group, Saatchi Art Group, and Media Group. Taking a closer look at Q4 2020 financial results. Q4 revenue increased 44% year-over-year from $45.1 million to $65 million, driven by a 95% increase in Society6 Group revenue and a 48% increase in Saatchi Art Group revenue, partially offset by a 17% decrease in Media Group revenue. Society6 Group revenue increased 95% year-over-year to $43.7 million. Society6 Group GTV increased 103% year-over-year, driven by 124% growth in U.S. direct-to-consumer GTV and 50% in international. Society6 B2B GTV increased 44% year-over-year. As Sean previously mentioned, we acquired record new customers in Q4 with new D2C customer growth of 14% from the previous record in Q3 2020, partially driven by reinvestments in customer acquisition and retention during the 2020 holiday season. Saatchi Art Group revenue increased 48% year-over-year to $5.7 million, driven by 123% growth in Saatchi Art online revenue, including an increase of $1.1 million year-over-year for the hospitality channel, offset by the cancellation or postponement of all The Other Art Fair live fairs scheduled in Q4 due to the pandemic, which negatively impacted revenue by $1.3 million. Saatchi Art online GTV, including the recently launched The Other Art Fair online studios, increased 50% year-over-year, driven by a 62% increase in the number of transactions, partially offset by an 8% decrease in average order value. In Q4, Media Group revenue decreased 17% year-over-year to $15.6 million and increased 4% from Q3 2020. As a reminder, as of April 25, 2020, we are no longer including visits to the sites migrated to Hearst as part of the Hearst transaction, which was announced on April 28, 2020. In Q4, on a pro forma basis, after giving effect to the Hearst transaction, visits decreased by 23% to 410 million from 530 million in the same period in 2019 as traffic to our Media Group lifestyle brands were adversely affected by election-related softness and the overall impact of a volatile macro news cycle. In Q4, RPV on a pro forma basis increased by 7% to $38.02 from $35.55 in the same period in 2019, driven by a higher mix of revenue from premium sites such as Hunker and Well+Good. In Q4 2020, strategic shared services and corporate overhead was $6.2 million, which includes $0.4 million in activist-related expenses, including fees of legal and other advisers, representing 9.5% of revenue, down from 17% of revenue in Q4 2019. For the full year, strategic shared services and corporate overhead was $27.1 million, which includes $2.0 million in activist and strategic review related expenses, including fees of legal, financial, and other advisers, representing 12.8% of revenue, down from 19.4% of revenue in 2019. Our strategic shared services and corporate overhead categories are primarily fixed and we expect them to continue to decrease as a percentage of revenue. Q4 2020 segment operating contribution for Society6 Group improved $0.5 million from Q4 2019 to $0.9 million or 2% of Society6 Group revenue versus $0.4 million in the prior year period due to strong transaction growth, partially offset by approximately $2 million in incremental reinvestments in customer acquisition and retention in Q4, including promotions, free shipping, and paid marketing spend through an early and extended holiday shopping season. We are seeing these investments pay off already in Q1 2021 with strong repeat customer growth and a return of gross margin to historical levels. In 2020, Society6 Group delivered incremental segment operating margins of 12.2% versus our annual target range of 15% to 20% due to the previously mentioned investment in new customer acquisition and retention in Q4, which we believe will provide for stronger growth heading into 2021. As we indicated in our recent January GTV release, Society6 momentum continued with 125% GTV growth in January, driven by strong, new, and repeat customer growth. Saatchi Art Group segment operating contribution in Q4 2020 improved $1 million to $0.2 million from negative $0.8 million in the prior year period due to strong online transaction growth, partially offset by operating losses at The Other Art Fair. Media Group segment operating contribution for Q4 2020 decreased 12% year-over-year to $6.9 million or 44.1% of Media Group revenue, driven by the decline in revenue. This strong contribution margin demonstrates our media business’ resilience in light of the headwinds generated by election-related softness and the impact of a volatile macro news cycle. Q4 2020 adjusted EBITDA was $1.7 million, reflecting an improvement of $1.9 million year-over-year. For the full year, adjusted EBITDA was $1.0 million, an $8.5 million improvement year-over-year, resulting in an overall 15% incremental flow-through rate. In Q4 2020, we incurred cost related to the activist campaign of $0.4 million, including fees of legal and other advisers, and costs related to the activist and strategic review of $2 million on a full year basis. Q4 2020 cash flows provided by operations was $4.4 million compared to $4.5 million in the prior year period. Q4 2020 free cash flow was $2.3 million compared to free cash flow of $2.6 million in Q4 2019. For the full year, operating cash flow improved $15.6 million and free cash flow improved $15 million on a year-over-year basis. As Sean described earlier, we have delivered on our mission of building high-performing digital-first brands over the last four years. In that time, we increased our revenue close to $100 million, almost doubling the business and delivered incremental flow-throughs of $16 million or 16% of incremental revenue. We finished the year with a strong balance sheet with $67.1 million in cash and a debt balance of $11.4 million with $4 million drawn on a revolving credit facility and a $7.1 million Paycheck Protection Program loan. We continue to execute on our mission of building digital-first brands in high passion categories and have delivered three consecutive quarters of strong operating results. Based on the combination of growth catalysts across our portfolio and attractive unit economics, we are confident in our ability to drive continued strong performance. With respect to our 2022 targets, we are pacing ahead of our $250 million revenue target. While we are confident we will exceed our revenue target, our lack of near-term visibility as we begin to emerge from the pandemic limits our ability to provide more specific detail at this time. We are also confident that our business has the ability to generate $20 million in 2022 adjusted EBITDA. Although given how much our world has changed and how much opportunity we see to accelerate growth by investing further in our business, we may elect to reinvest more aggressively in the business as our near-term visibility improves. 7 weeks into Q1 2021, our business continues to perform well overall. In February to date, Society6 Group has continued on a similar growth trajectory, as indicated in our January Society6 GTV press release. Saatchi Art Group continues to deliver strong year-over-year growth. We are seeing signs of improvement in our media business so far in Q1 and we expect media to return to year-over-year growth in 2021. With that summary, we are now ready to take your questions. Operator, please open the line.
Operator: Certainly. Your first question comes from the line of Maria Ripps with Canaccord. Your line is open.
Maria Ripps: Hello, everyone. Congrats on strong results, and thanks for the questions. So you mentioned the possibility of reinvestment back in the business. Sort of as you’re coming off a strong 2020, what are some areas where you see the need for more investment, whether it’s customer acquisition, brand, UI fulfillment? And sort of now with the higher revenue run rate, how are you thinking about the balance between investing and profitability here in the near-term?
Sean Moriarty: Hello, Maria, it’s Sean. Thanks for the question. Great to hear your voice. We see significant opportunity to continue to invest in our businesses. I’ll hit the high points really for each segment. On the Society6 side, a lot more opportunity to invest in acquisition and retention. We also see opportunity to continue to expand our physical product selection. And then from a platform perspective, for both artists and consumers, there’s significant work we can do to improve that experience and really drive leverage through the business. And the artist side improved tools so that they can manage their business as they create art and they can become even much stronger marketers of the art that they create. And on the consumer side, a lot of mobile web and mobile app work, which we believe is a significant opportunity for us to continue to drive growth for the business. On the Saatchi Art side, really scaling out those virtual fairs with more immersive, richer technology as that really becomes both in real-life and in the virtual world a really, really strong offering for us, some more investment there. And then on the media side, the feel is that as the media segment recovers, doing more work on commerce-related initiatives like the Well+Good shop that we launched earlier this year. From the standpoint of balancing growth and profitability, where we have waited, we think about it is, even with these opportunities for investment, a very disciplined approach where we look at that, the target annual incremental flow-through in that 15% range is how we’re going to evaluate the level of investment. And so again, looking at it on an annual basis, delivering that consistent incremental flow-through to what we’ve achieved from 2016 to 2020 and also from 2019 to 2020 to help guide us as we go.
Maria Ripps: That’s very helpful, Sean. And maybe related to that, now that you shared standalone financials with us for Society6 and Saatchi Art for a couple of quarters, can you maybe talk about what kind of margins do you expect to achieve for both brands sort of longer-term? And which one do you think can be more profitable sort of given different revenue models? And any color on what kind of revenue run rate is needed in order to sort of start generating meaningful operating leverage for those two brands?
Sean Moriarty: Yes. Great question, Maria. As you know, the margin structures of the businesses are fundamentally different, principally because the Saatchi Art business is a pure marketplace not burdened at all by vendor products costs. And at the same time though, the Society6 business is very capital-efficient and enjoys, particularly as a home decor retailer, very, very healthy margins. And so we expect good solid flow-throughs for both of those businesses as they continue to scale. And so we don’t really compare them to one another as much as we think about their own independent opportunities. We’re still in investment mode with Saatchi Art. You can kind of see the incremental flow-through in that business over years as it approaches profitability. And I would say that from the historic flow-throughs we’ve seen for each of the respective businesses, you can expect to continue in the future on an annualized basis. And with further scale, there’s probably a real opportunity to improve those margins for each business as we go.
Maria Ripps: Great. Thanks so much, Sean.
Sean Moriarty: Thank you.
Operator: Your next question comes from the line of Jason Kreyer with Craig-Hallum. Your line is open.
Jason Kreyer: All right. Thanks, guys. Just wanted to talk a little bit about the leverage in the model. And I know you called out the potential for making some growth investments. If we look at this quarter, we kind of come up with a run rate of about $260 million in revenue and $7 million of EBITDA and absent some of those investments, I just wanted to see if you can give a little bit more detail on where you expect to see the leverage in the model. If we push that out a couple of years, how you kind of bridge the gap from a $7 million run rate today to the $20 million a couple of years out?
Brian Gephart: Yes. I think we’ve demonstrated in our track record, Jason. We’ve clearly delivered 15% incremental flow-throughs from 2016 to 2020 and from 2019 to 2020. And we feel very comfortable in our ability to continue to deliver those. And also keep in mind, our media business had a challenging 2020. And if that business continues to recover in 2021 and delivers meaningful cash flow to our business, this is really important to us.
Jason Kreyer: Got it. A couple of questions and I think these kind of go hand-in-hand. But wanted to get a little bit more detail on some of the product margin pressure you saw in the quarter. And then also wanted to ask about the investments that you made in customer acquisition and whatnot. And I think perhaps those two go together a little bit, but maybe you can unpack both of those, if you can, Brian.
Brian Gephart: Yes. So certainly, so as we called out in the prepared remarks, we made $2 million in incremental reinvestment in the quarter in customer acquisition and retention, and that really is covered in three areas, both promoter – I should say, in each respectively through promotions, free shipping, and marketing spend. And those are dialogues that we monitor very closely and have channels and customers who respond favorably to each of those categories. And so as we move through the quarter and we see opportunities to acquire customers profitably, we will turn those dials to invest in the business. And so – and we will continue to do so.
Jason Kreyer: Those marketing investments, are those – from an expense recognition standpoint, are those hitting cost of revenue? Or does any of that stuff flow into OpEx?
Brian Gephart: The marketing spend is in OpEx.
Jason Kreyer: It is. Okay, okay. Thank you. And then following these investments that you’ve made, right, I mean this is all in the name of customer retention and stuff like that. So maybe you can kind of compare and contrast the retention trends that you’ve seen over the last several months as growth has been accelerating, maybe compare that to the steady state retention trends that we saw across 2018 and 2019. Just trying to get a feel for how much that’s changed in these last few months.
Brian Gephart: Well, that we’ve disclosed. So in both Q3 and Q4, we saw the Q2 cohort perform a 30% improvement year-over-year in their retention behavior for that Q2 cohort. And we’ve seen those retention efforts and trends continue into Q1 2021 as we’ve talked about. And so we’re seeing a significant improvement in that retention behavior throughout this year and into 2021.
Jason Kreyer: Okay. I wanted to squeeze on in on media and then, again, you’re referencing kind of your confidence in returning that to growth. And obviously the trends that we’ve seen in RPV in the last couple of quarters are going to continue to help that. But maybe you can just unpack that confidence a little bit. I don’t know if there’s any color you can give on like a property-by-property basis. That helps us understand where we’ve gone through across 2020 and the confidence that those come back in 2021.
Sean Moriarty: Sure. So, Jason, I think the first thing I’d point out is how kind of headline news dominant the year was. And so lifestyle publishers and lifestyle audiences definitely felt the impact of that. And if you look at our brands, they’re fashion brands. And in a cycle, which was dominated by incredibly newsworthy stuff in our world, highly contentious presidential election, social justice, social protest, and pandemic, you’re just not going to get the mind share of which you would get, I would say, in more temperate times. And so at the same time, the categories we’re in are absolutely huge categories where consumers increasingly are seeking information online, and we expect that that attention is going to come back. And then if you look at, I think, individual properties in a world locked down by pandemic, a property like OnlyInYourState, which has a fantastic future ahead of it, isn’t going to do too well in a world where people are locked down and not traveling, but we certainly expect to return to, I guess, new normalcy is the best way to say it. The other thing that gives us real comfort in the recovery of the business is we continue to do work with great high-quality advertisers in Q4, for example, Walmart, Scarborough, really, really strong brands. And so we just feel very good about where our media business is based on the caliber of leaders and managers we have within it, the categories that we’re in and the success we’re having in the branded sales side, and we know they are categories or categories growth.
Jason Kreyer: Sorry to keep throwing more last questions at you. But on that last comment, over the last few quarters, we’ve talked about longer duration commitments on the media side with the new brands and whatnot. Is there any way to handicap where your media businesses sit today versus a year or two ago in terms of how much of this is more like a, I’d call, a spot market versus how much you have already committed?
Sean Moriarty: Yes. I think we will continue to do, Jason, to get a sense for these brands, particularly a brand like Hunker that didn’t even exist three years ago. The more work we do with advertisers and the more we talk about the return of those marquee advertisers probably gives you the best indicator on the brand strength and how well we deliver as a publisher for those brands that we serve. So probably look for more going forward as we give color on those advertisers that have come back and the nature of the work that we’re doing with them. But we’re certainly heartened by the progress. For example, if you look at an advertiser like Walmart with Hunker, we feel like we’re clearly going in the right direction, doing an awful lot of good work for them and that they’re very happy with it.
Jason Kreyer: Got it, all right. I’ll stop there. Thanks for the response guys. Appreciate it.
Sean Moriarty: Thanks so much. Great to hear your voice.
Operator: This concludes the Q&A session and the Leaf Group’s fourth quarter 2020 earnings call. We thank you all for your participation. You may now disconnect.