Oddity Tech Ltd. (ODD) Earnings Call Transcript & Summary

Okay. We're going to get started. We've got Lindsay Drucker Mann, ODDITY's Chief Financial Officer, with us today. So Lindsay, thanks for joining us. Thanks for having [indiscernible].

So ODDITY is a unique company that prides itself on doing things differently. Since some of our audience may not be as familiar with the company, could you just give us an overview of ODDITY and what makes it different than traditional DT or tech companies?

Yes. Thanks for having me. So I think there's so many things that make ODDITY different. But the first thing I would call out is truly culture of innovation, moving fast, failing fast, taking big swings, winning. And it's this idea of challenging all conventions. There's no single sacred convention that we don't want to challenge or disrupt, creating a new playbook and running from first principles. That's really the basis for our culture, and it's one of the most important things for us to preserve, especially as we continue to grow and scale. Maybe taking a step back on what is ODDITY. So we believe we're the largest direct-to-consumer business in beauty globally. The majority of the business, 95% plus is our -- comes from our technology platform, which is fully online, fully direct-to-consumer, no sales to third-party marketplaces, retailers or wholesalers. And we have 2 brands now, going on to 3 on our platform. The first is IL MAKIAGE. That's the first business that we launched in the U.S. in 2018. Last year, crossed $500 million of revenue. It's one of the largest beauty brands in the United States and growing quickly globally. Both beauty products and skin now, which is, this year, around 40% of the business for IL MAKIAGE will be in skin. Our second brand is SpoiledChild, which we launched 3 years ago. That's a holistic wellness brand. This year, it will cross $200 million of revenue. And brand 3 -- our third brand is actually in soft launch mode now. We'll formally launch in Q4, fully on our plan. That's our first foray into telehealth. Starting in dermatology, focusing on areas like acne and hyperpigmentation, eczema, but then expanding into new medical domains over time. Very bullish about the opportunity there, and I know we'll talk probably a bit more about brand 3. So that platform model itself and our direct-to-consumer online model is very different from industry status quo. In addition, 2 years ago, we moved into biotech with the acquisition of Revela and the launch of ODDITY LABS as a way to truly discover new molecules, new ingredients, new delivery systems to drive and catalyze a level of product innovation in beauty and wellness that we don't think the industry has truly ever seen. And all of that together just makes us a pretty unique model.

Okay. Great. Somewhat related to my first question, we've heard a lot from companies this week because you and I were just talking about the weak consumer environment, particularly in the U.S. Majority of sales in the U.S., but it seems like you guys are immune. And again, we were just talking about it, but it's been clear on your calls and in your results. Is there something about your demographic base, your price points? Have you seen any change in purchasing patterns? What is it that's making ODDITY not seem to be exposed to the broader weakness in the consumer environment?

Yes. We haven't seen any consumer weakness. We obviously hear about it from our competitors and other industry participants. This is -- we just reported our second quarter. It's our ninth quarter as a public company. Every single quarter since we've gone public, as you know, we've exceeded on our targets and been able to raise our full year results, even as for a number of others in the beauty space, they've had some fits and starts in terms of their business performance. So you're right, the model has been very strong. I wouldn't even say resilient, I would say, very strong. And as we talked about on our 2Q call into Q3, business continues to be strong. We're feeling great about Q3 and balance of year performance and really have our sights set on 2026, where we have an unbelievable slate of growth innovation in our back pocket ready to deploy, the most in the company's history, like I know we'll talk a bit more about it, but 2 new brands that will be in the market, new geographies, new improvements in our technology products, our physical innovation product lineup, just like a tremendous amount of growth drivers ready to go that leaves us very bullish about 2026. And there's nothing in the consumer macro environment that we see that leaves us concerned. Our repeat rates continue to be very strong. Cohorts continue to perform very well. As far as to why that's the case for us as distinct from other businesses, it's probably a number of factors. Number one, we are still a very small market share in a very big category. And our business is focused on what we believe are the 2 most powerful and disruptive growth drivers within the category. That's number one, the move online. Today, online is roughly 25% of our category. We think it will double to around 50%. And so we're still in early to middle innings of that big transformation. Number two, the consumer focus on high-efficacy products that really solve their pain points. And that's been from the beginning. We're an organization that really believes in products, and we only put products out there that are very high performers that beat top performers in our other categories. So we are positioned correctly, small idiosyncratic growing in a big market. Also, maybe to what you were asking before, from a demographic perspective, we are very broad. We span age ranges. Even if you look at the population of the United States, like we're split in a way that matches even almost on a state-by-state level, the population of the United States. That was very much by design. We didn't want to target specific populations. We've built the business to be very, very broad. We have 60 million -- over 60 million users on our platform today. So you're just talking about very, very large numbers. The other thing I would highlight is that the model is very agile naturally. And it allows us because, for example, with our acquisition, using algorithms and large pools to find acquisition, we fish with a fish or biting. It's not like we have a retail store and you can say, well, the A malls are performing, but the C malls aren't with stranded inventory. Like for us, we are very, very close to the consumer, really as close as you can be. And as a result, we can pivot very easily to where the pockets of demand are and we can find them and go after them. And then the final thing I'd say is notwithstanding some of the challenges that we heard earlier from some beauty companies, which seem to be improving for them, but the category has historically been very resilient. We're just in a great category, lots of areas of demand, very resilient economically, high loyalty customers, lots of replenishment, lots of repeat, great unit economics. So I think all those things together have created a really strong backdrop for us.

Okay. Great. And you talked about multiple growth pillars, namely scaling 2 brands, the 2 new brands coming you just mentioned, multiple categories, now multiple geographies. Can we talk a little bit about resource allocation, how decisions are made on where to push hardest to achieve that 20% annual sales growth goal?

Yes. So we do have -- just to set the stage, our commitment to our long-term earnings algorithm is sustained 20% revenue growth and 20% adjusted EBITDA margins. And we set the business up to be able to consistently deliver on those objectives. We have very purposely paced our growth, right? We could be growing much faster than the 20%, and we've purposely dialed back our growth levers so that we -- you and I can sit on the stage next year, and I can talk to you about our high conviction in achieving 20% margin. So this is a purposeful decision, and it allows us to grow in a higher quality way. Meanwhile, we're growing significantly faster than our competitors, and we're gaining share. And we're also carving out the ability to reinvest in our business so that we can find and unlock new growth drivers for the future. The way that we -- so we're always going into any year or any -- thinking about '26 and '27 and even in '28 and beyond, trying to stack as many high-quality growth drivers as we can, not using them all at once, keeping many in the drawer. I know we'll talk a bit more about international, but that's a great example of something we had at our disclosure to you that we waited until we wanted to shift our strategic focus on it. But stacking many drivers that we can use, not using them all at once, but putting ourselves in a position where we know we can sustain our growth rate. The decision to -- on how we allocate resources is based on, number one, top down what's strategically important. And so, for example, international, we talked about -- we made the decision in 2024 that '25 would be a year where we took it to the next level. We had been building infrastructure in international and doing a lot more of what I would call like early-stage foundation building and testing, now taking it to the next level and scaling more in the existing markets where we are while adding bigger tests in other new markets where we believe we can ultimately launch and scale. So that was a strategic decision. But we also are looking bottoms up at where we're generating strongest returns on our spend. And it's a combination of those inputs that drive the allocation. I just want to say one more thing, which is it's something where we get a lot of questions from investors because it's so unusual to be so agile. But remember, we don't have stores. We don't have stranded inventory to move around. Our acquisition engine is something that can be turned on and off, so to speak, depending on how we're pulsing our marketing spend. The demand drivers from consumers in, for example, global markets or the U.S. are similar. So it allows us to be very fungible with inventory, very fungible with resources and spend. And as opposed to being a wholesaler where if you have a product stock on the shelf of Sephora, but you would like to remove those this year and bring them back next year, like that's a disastrous type of decision. We have a lot more flexibility with what we -- we have a lot of flexibility with how we run the model, and we use that to our advantage.

Okay. The decision process in some of this resource allocation, does that happen in the -- I guess you just that it's flexible and fungible. But is it something that happens sort of in the beginning of the year and then second half is mostly because we talk about this repeat business?

Yes.

But again, on that like sort of strategic decision on resource allocation or is there a lot more dynamic describing?

I mean, so right now, for example, we are past our big acquisition season, right? The second half of the year, as you mentioned, is the big majority of the business is repeat. And so what we're focused on today is 2026 and beyond, but the teams are -- effectively 2025 is in the rearview and now we've pivoted our focus to 2026. And many of those strategic decisions are happening now. Just as I mentioned for international, that was -- 2024 was when we took the decision to put more focus on it, and that allowed for our execution in 2025. Now we're focusing on 2026. A lot of those decisions are being made. And then we have the benefit of when we're in market in Q1 and Q2 that we can pivot to dig into areas that we believe in. And once we've turned the business back on and we're learning, we can always pivot our focus depending on what we're seeing in the market.

Okay. As repeat business comes in much stronger than expected -- like in theory, couldn't growth be above 20% in any given quarter, like separate from your decision to dial back, right, can you talk about it. But if repeat is stronger, right, then couldn't sales come in higher than 20%? That's one piece I kind of...

We really haven't seen that because repeat is very predictable. So because we have -- and now you're talking about millions and millions of orders where we've been able to map cohorts, and we understand the behavior. And you already have early repeat business that happens in Q1 and Q2 and you see how it's -- you can model how it's going to map into Q3, Q4. So we have a lot of control and a lot of visibility. So it has not really been an issue for us.

Okay. Okay. Let's switch more pointedly to international. So a year ago, the language used was slow playing it because there was just so much opportunity. So can you just walk us through the decision to go -- to really go after international in '25? Why was this the time and particularly when you have so many other things going on with brands 3 and 4 -- well, I guess, 3 this year, but -- and the U.S. is still so strong. So why was 2025 the time?

I can tell you, international has always been an enormous opportunity that we've built infrastructure and capability around with the plan to go after it full force. As you know, in '24, international was 15% of our business, and it's around 70% for our competitors. So we know it's just such a huge opportunity. Our first real international push was, we launched the U.K. in 2020. And since then, we have been building capabilities, not going after the full monetization opportunity, but building capabilities in advance of going after the full monetization opportunity. We've always talked about -- again, international being a huge priority for us on our road map and in fact, to deliver IL MAKIAGE, the $1 billion target we see for 2028. International is always a big part of that story. So there was this time like the business was ready. It was the right time to put the strategic focus. That was the decision that was made from the top down. And because we have set up a model that is, again, so agile we can turn on these markets in a way that is not asset intensive, that doesn't require a big investment. We don't have to have boots on the ground and an office set up in Europe to grow a really big European business. It's about resource allocation internally. And that means, for example, putting more focus on things like funnels and [indiscernible] putting inventory in position and having teams actually spend time to focus, and it also means the actual acquisition dollars to be pivoted there to acquire that new user in an international market. And so we put those things in place. I think that for 2025, what was great to see, and as you know, international markets have been a very -- we're super pleased with the level of growth. And we talked about taking it to the next level. It's an important milestone for us to see that not only did we believe it would work and that our test showed us that it would be a good outcome, but to actually deliver on it is just sort of another level of proving to ourselves like this really is the big opportunity that we believe. And in addition to all of the infrastructure building over the years, there's a dozen-plus markets where we've conducted full-scale tests thousands of orders, local website, local content, like local distribution and seeing that the consumer responds similarly to what we know in our home market. We know that the backdrop is there. At a consumer staples conference, like I don't have to tell you that there are some consumer categories that travel well globally and some that don't, and beauty is among one of the best, right? We know these are global brands. So everything we saw leading up to this gave us a lot of conviction. This year proved to point out even more so, and it will continue to be a nice driver for us.

Okay. Great. And when you launch into new markets, you mentioned full monetization. Do you start with a full product lineup or, for example, IL MAKIAGE, is it like emphasize color and then layer and skin over time?

Yes. I think, listen, it's a market-by-market decision. But in general, when we start, we have a more streamlined -- a simpler, more streamlined approach so that we can understand better how the consumer end markets work with a lot of -- without extra noise, just get good at the things that are important, and then we can layer products on top of that. U.S. for us has been and as far as I can tell, will be for the foreseeable future, the market where we launch our new product and innovation into first and then expand into additional markets from there, and that continues to be the case.

Okay. Let's switch to Brands 3 and 4. So lots to talk about, right? You're, I guess, weeks away from now a formal launch of Brand 3. So let's discuss a little more about what that's all about.

Yes.

And maybe -- and I can just layer on it and make it a 2-parter. Just how much of the product offering is OTC versus prescription because I think that's something that maybe I could use a little bit of paragon and how much of the -- or the degree which the ingredients are [indiscernible].

Yes. Okay. Great. So Brand 3 is our first entrance into medical-grade products, prescription product, telehealth as broadly defined. It's really taking that same insight of how the consumer has changed and how satisfaction with the status quo is so low that we understood in beauty and now pointing that same muscle and capability at medical grade area. It's the same -- we know it's a similar consumer like we talk about how around half of our users suffer from one or some combination of acne, eczema or hyperpigmentation. There are enormous groups. And a lot of people come to IL MAKIAGE because they have acne or hyperpigmentation they want to cover up. Up to this point, we have only offered them solutions to manage the surface issue. And now we're offering solutions to actually address the problem itself. Very powerful. We're very uniquely positioned to do it. The beginning of Brand 3 will focus on dermatology, as I mentioned, but that's just the beginning. There are other medical domains, now that we have the infrastructure, the ability to ship a prescription. Now that we have that ability in place, we can expand into other areas, and we think there's lots of other areas for -- that we're spending time on, areas to expand and grow dermatology is obviously a natural place for us to start at, but it's just the beginning. The type of innovation we are bringing to dermatology is something I don't think the industry has seen in years. If you think about when you were growing up, your parents were growing up, how you would address acne, like not much has changed, right? Even the product set and topical retinols and that kind of thing to address it, the frustrating user experience, all of the friction, all of the pain to go through -- acne is a tough category. Often the problem gets worse before it gets better. People get frustrated and they churn. And so our approach has really, again, been very first principle. So first of all, we've built an entirely new set of vision tools to serve as an assessment of your ace grading, your degree of inflammation, scoring what your lesions are like and really helping the user understand what their condition is and then supporting our providers in determining the right course of action. So that's entirely new. We've set up a post-purchase coaching and tracking app, which we believe will solve some of the challenges in churn and frustration and level of handholding that consumers need to get all the way through to clarity. And that's obviously very important for satisfaction. It's important for LTV, those things are very new. But even the product line itself, like I'm just so excited for the -- all of you guys and especially our customers to see the type of product innovation we're bringing in these areas. It's just a category that has not been innovated well. And so we think that -- and as we've done our focus groups and testing, like our products are really amazing. So I think that's really important as well. And this is a category -- it fits really well into the type of areas that we focus on in terms of being a very big TAM and you have something like 50 million Americans suffer from acne. And when I say suffer, I mean it like really affects their self-confidence. Similarly, hyperpigmentation, these are very big categories. And we know from consumers that their satisfaction here is very, very low and that our technology can solve the problem. So a great starting point for us.

Okay. Maybe we can talk a little about ODDITY LABS -- sort of what's...

I mean, I can see it as a prescription type of question -- sorry. So the customers will have access to both prescription and over-the-counter nonprescription products. Most of the business we expect will be not prescription, but prescription will play an important role. And as far as ODDITY LABS goes, we will have a couple of novel molecules that we'll be introducing within the brand through portfolio. Most of our products will be with existing ingredients, but you'll see some ODDITY LABS molecules in there, too, which we're really excited about.

Okay. And then also, you definitely tease out going beyond dermatology. So -- also then beyond beauty or beauty adjacent, right? So think of dermatology as beauty adjacent.

Yes, other medical domain.

Medical domain. Okay.

Yes. Still would satisfy wellness concerns. I mean these are all integrated. It's just -- our system is set up this way where if you have -- you can go to a drug store or you can go to a doctor for certain solutions, right? You going to a drugstore for acne is a great example. But oftentimes -- we believe we can create a platform that actually will be better to both options.

Okay. Sticking with ODDITY LABS, just a little bit maybe on how this is different from just being internal R&D, right? What is it that is ODDITY LABS. I guess, you've changed leadership there also. So if you could talk a bit about the change in leadership. I think it's been about a year now-ish. And so have you seen the pace of change? Has it accelerated? And Iran sometimes speaks to -- we don't have to -- like we don't have to move faster, money, but at the same time, he says it's a race. How do I put those 2 together?

Yes. So, ODDITY LABS is looking to address a real problem in our industry, which is major underinvestment in molecule discovery and ingredient innovation. Again, going back, like the most commonly used ingredients today, whether it's like retinol or Rogaine, like those are things my parents used when they were young. And it's the exact opposite. If you look in other areas of drug discovery and therapeutics, like we're in the golden age of biology. We can engineer solutions that were never possible before. And pharma is running after that in their world. But the thing that's different about pharma is the customer is really not you and me, the customer is the insurance payer. For our category, insurance is not interested in my stretch marks. You know what I mean, and so they're not putting any money at it. It's not acute, it's not going to kill me. And so pharma has not -- like to be contrary, pharma has actually been shedding their consumer assets. We've seen that with Kenvue and Haleon and others. It's not a focus for them. And for better or worse, within our industry, incumbents have actually not been focused on the type of R&D we think that the markets really warrant and much of that R&D has been outsourced to other areas. So today, people are all kind of using the same ingredients. And our goal with ODDITY LABS, what we believe is truly possible is taking this amazing science, the same things that have been using -- that are being used to develop unbelievable solutions in pharma and point that muscle at beauty and wellness to create solutions for, again, enormous TAMs in ways that were never done before and not just molecules and ingredients, but also delivery systems to just create much, much better products and catalyze a wave of innovation and products that, again, we don't think the industry has ever seen. So that's our focus. We believe we're really singular in what we're trying to do. But we believe it's the future, it's a race. We think others will ultimately come to understand that this is important. Their ability to execute, I think, is questionable just because it's so challenging and requires a different kind of mindset, but we are way ahead of where we see others are and give us a big advantage. In terms of where the team is, when we acquired Revela 2 years ago, we brought an unbelievable entrance into Boston biotech, understanding the science. The team there has built a great, what I would describe as more of an academic research lab. And what we wanted to pivot to was a super commercial output engine, which requires building the teams and creating processes and infrastructure that -- so you don't wake up in 2 years and the molecule doesn't work. And actually, a lot of the best practices -- operating best practices that we use in our tech team, we've applied now in ODDITY LABS. We're in a much stronger position today than we were a year ago, and we think that will continue.

Okay. Let's also talk a bit about competitive edge from a technology standpoint. So other companies are now making big investments in AI and machine learning. We've heard about it in every single presentation, flavored by who's talking. Do you see anyone out there that's trying to replicate or build something similar to the ODDITY model? Like how difficult would it be -- at this point, with you guys out there now public just like a template, how difficult would it be for someone to replicate the approach that you guys are taking?

We don't. And in fact, we see the opposite. We see instead of -- I think the everybody knows today that online is a very important and rapidly growing channel. Rather than moving to DTC, you see more companies in our world relying on Amazon to achieve that objective. It's really the opposite. And I think that while you have a lot of talk about AI, actual execution and implementation and track record of success in tech is pretty spotty at best among this group. AI is going to be everywhere. There will be an explosion. We're going to see it. But I think -- you might think about it a bit like online. There's not a single company at this conference that doesn't have a website, but how much of a commercial engine they can really use depends on their data and their tech. And as a wholesale business, without that true customer data, very difficult to commercialize. And the way that we are able to commercialize it, we've got, again, 60 million-plus users on our platform to acquire all of those users today will be at an enormous cost, not to mention the lack of know-how, how to do it. So I think we don't see anyone very difficult to do. And I think the problem that you're seeing with incumbents in adapting to this kind of new world and where the consumer is going will -- and the conflict between sort of retailers having all the data and having the control versus their position probably only gets more challenging.

Okay. So no one out there who you're actually impressed by that you're seeing -- even small companies that you're seeing doing cool stuff?

Small companies can build a $50 million, $100 million, maybe $200 million business with a Shopify site and then it's very difficult for them to continue to profitably scale. But there are many of them. And that sort of -- I think that's sort of eating at the sort of bigger incumbents, but one of the challenges perhaps they're facing, but to actually scale the way we have, we haven't seen anything.

Okay. Let's talk about capital allocation because you are the CFO. So you've built up a lot of cash on your balance sheet. So maybe if you could just remind me of priorities of uses for cash?

Number one is reinvesting in the business, a great use of cash for us because we generate excellent returns on capital. And all you have to do is look at an example like SpoiledChild, less than $30 million upfront for us to launch it. And now it's -- we'll cross $200 million of revenue this year with nice profitability. So great IRR on the way that we invest internally. And there's lots of areas for us to invest. Second priority would be M&A. I'm sure you have a lot of questions about how we think about that. But we have been successful historically at M&A, in particular, building -- bringing capabilities in-house. So Voyage81 was an acquisition we did to build our vision capabilities. Revela, an acquisition for us to acquire biotech capabilities. We had an -- acquired earlier this year with Fionic1. There continued to be opportunities like that, that we're looking for. Those are -- I wouldn't describe those as transformational M&A, but really capability building. And then the opportunity to bring a brand and plug into our platform, that's something we would love to do. That being said, we don't see anything out there right now that makes sense for us. We have a lot of discipline around what we would bring in-house, but primary focus is product, like we have to have outstanding product that would be something that drives a lot of LTE and satisfaction. And in general, the criteria is something that would either meaningfully accelerate our time line, it would be very difficult for us to build in-house. So again, we'd love to do it, but there's nothing that we see right now. And there's no urgency. We did a convert, as we mentioned earlier this year, super efficient capital for us, zero coupon and not dilutive until at the time the stock price doubles, that's $140-ish per share. And so we're effectively getting paid to sit and wait. So we're very, very patient. It's not burning a hole in our pocket, but we have it at our disposal to use if we want to. And then I'd say the third priority is cash return to shareholders. We have bought back stock in the past. We have $100 million remaining on our buyback authorization. It's opportunistic rather than programmatic, but we have it to use.

Okay. And I realized we didn't even talk about Brand 4, right? I was looking at my list of questions, I thought I would ask about 5 and 6, but I didn't ask you about 4 yet.

Yes. So Brand 4 on track for next year. Very exciting for us, big opportunity for us. We'll tell you more as we get there.

Okay. That's a 2026.

Yes.

Okay. Are you working on 5 and 6? Or do you...

Yes, future brands are in the pipeline in development and exciting opportunities.

Okay. And when you think about acquiring potentially a brand, it was interesting because you brought up product. And so one thing that -- questions we've had in conversations that's so different about ODDITY is you don't talk a lot about brands. You don't talk about brand marketing, brand advertising because it's product and it's acquisitions through the tech engine. So is one of the things that may be different about the way you look about M&A to what a more traditional beauty company would do is, the brand is almost not important. It's the technology and the product because you believe you can generate the demand with your engine, the brand doesn't have to have a story?

Yes. I mean, I would -- I might say it a bit differently. We care a lot about brands. And as you can see in our portfolio, our brands have very distinctive voice and strong point of view. SpoiledChild, IL MAKIAGE, very clear brand proposition, and we believe that a brand should stand for something. Otherwise, it doesn't stand for anything. That being said, the conventional approach to brand building, we think, is an old playbook. And our approach to brand building is, first of all, we're meeting customers and users where they are, where -- there's not a beauty company or retailer you would speak to that wouldn't tell you that the beauty customer starts their journey online. But historically, they thought they finished it in store. For us, if you are online, we're capturing you where you're focused on it, and we're actually driving the purchase and repeat and that's all happening there, you never have to leave. So I think that, number one, where we're meeting the customer; and, number two, the way we drive brand love is through delivering a product and experience that is an unbelievable surprise and delight. And as a result, when you look at satisfaction -- we study satisfaction religiously. In fact, I know one of the things we're talking about is how do you know that Brand 3 is working and what you look for? One of the first things is satisfaction and the second will be unit economics, but satisfaction is unbelievably important. We deliver satisfaction in a way that allows us to build brand.

Okay. I have like 7 more pages of questions, sorry. And I have a minute. So I'm just going to wrap up by turning it to you actually and asking what do you think is most misunderstood by the investment community today. I mean we've had a big move in the stock finally, great, but when we're sitting here, hopefully, a year from now together, kind of what do you think investors will care most about and what will have changed?

I think one of the things we confronted post IPO was a lot of like pattern matching and muscle memory around investors who've seen a lot of consumer companies, companies that talk about tech that doesn't mean anything. And you've never seen a company like ours. And any time you're doing something different, you're naturally going to be met with a bit of this inertia and skepticism. One of the common refrains we heard in the beginning, and we still hear to some degree is, well, a brand -- beauty brands normally give $200 million, $300 million, $500 million, that's where you cap, right? And then every single year, we push those boundaries. I think people like might -- are not motivated to do the work in some regard and understand like it's not the right parallel because our distribution channel is totally different. We are unique as a direct scale direct-to-consumer business in the most important channel in the category in our view. So that has actually improved a lot, as you mentioned, in the last 2 years, as people have gotten to know us have seen our very consistent performance and delivery where that skepticism is fading, and there's a lot more people who are starting to understand. And I see it even just at this conference and the kinds of investors we're speaking to, the fact that the folks who came in our IPO, I would describe that as an A+ shareholder list. Those guys have increased their investment in us in general, and we are seeing new investors come in and become shareholders, start positions and more people doing work. So it's great to see that that's improving. As I think about what we would talk about next year, I suspect it will be a lot of the same. But in general, that investors are more focused and more confident on their 5-year models and how unique ODDITY is in your ability to underwrite 20% compounded growth over the next 5 years, very strong cash generation, returns on capital and very strong profitability relative to others.

Okay. Great. We have to end there. But, thank you so much. Thanks for being here, Lindsay. Please join me in thanking Lindsay for being on stage.

Thanks.