Good afternoon. I'm Jonathan Johnson, the Chairman of the Board of Overstock.com. At the request of our Founder and CEO, Patrick Byrne, and the Board of Directors, I'll be serving as Chair of today's meeting. On behalf of the Board and of Management of Overstock, I welcome you to the 2015 Annual Stockholders Meeting of Overstock.com, Inc. Thank you for your attendance today. For the benefit of those present, I note that we are webcasting today's meeting for those unable to attend in person. Now, a little bit after 1 o'clock on May 5th, 2015, and in accordance with the notice of the meeting, I call to order the Annual Meeting of the Stockholders and declare the polls open for matters to be voted on by the company's stockholders at today's meeting. As each stockholder entered the meeting today, we provided him or her with an agenda of the meeting.
We're going to conduct the meeting in accordance with that agenda. As noted on the agenda, we'll provide an opportunity for questions and discussion after the meeting has been formally adjourned. So I'd ask that you please reserve your questions until that time. Representatives of Overstock and of our independent accountants, KPMG LLP, are here with us today and will be available to answer your questions. If you're joining our meeting via WebEx, thank you. We appreciate that. You may submit your questions at any time, and they will be addressed after the end of the formal business of the meeting. To preserve the order of the meeting, please turn off or silence your cell phone or other electronic devices. Let me begin by introducing our Board of Directors and then the Corporate Officers of the company. As I call people's names, I ask that you stand. First, Patrick Byrne.
Patrick is Overstock's founder and the company's Chief Executive Officer. He's been a Director and our CEO since 1999. Patrick is standing for re-election to the Board today. Allison Abraham. Allison chairs the Audit Committee and is a member of the Compensation Committee and the Nominating and Corporate Governance Committee. Allison's been a Director since 2002, the year that we went public.
Mr. Chairman, may I have the remaining?
You may sit down after I've introduced you. Sorry, Patrick. Clay Corbus. Clay chairs the Compensation Committee and is also a member of the Audit Committee and the Nominating and Corporate Governance Committee. Clay's been a Director since 2007, and Clay is standing for re-election to the Board today. Thank you, Clay. Joe Tabacco. Joe chairs our Nominating and Corporate Governance Committee and is also a member of the Audit Committee and the Compensation Committee. Joe's also been a director since 2007. Sam Mitchell is a member of the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee. He's been a Director since 2010. Kirthi Kalyanam. Kirthi is our most recent addition to the Board, having joined us earlier this year. Kirthi brings a wealth of academic and practical expertise in retailing, internet and multi-channel marketing, and quantitative marketing. We're delighted that he's joined our Board.
Thank you, Kirthi. Stormy Simon. In addition to being a member of the Board, Stormy is our President and has been an employee at Overstock since 2001. Prior to her appointment as President, she managed our marketing and many other aspects of our business. She's been a Director since 2011. Thank you, Stormy. As I mentioned, I'm a member of the Board, and my name is Jonathan Johnson. I've been with Overstock since 2002, and it's been my privilege to hold many Senior Executive positions at the company. I'd also like to introduce briefly our officers and ask that each of them stand while I introduce them, and those will be quick, so if you could remain standing until we finish introducing all of the officers. First, Patrick Byrne, Founder and CEO. Stormy Simon, President. Rob Hughes, Senior Vice President, Finance and Risk Management.
Carter Lee, Senior Vice President of Technology. Seth Marks, Senior Vice President, Strategic Initiatives, Merchandising and Sourcing. Dave Nielsen, Senior Vice President of Business Development. Saum Noursalehi, Senior Vice President, Product Development. I don't think Sam is here today. Brian Popelka, Senior Vice President, Supplier, Customer, and People Care. Debbie Brown, Vice President of Transportation Care, Global Business and Project Office. Terry Jensen, Vice President of Training, Quality, and People Care. Ralph Monda, Vice President of Partner Care. Ralph's recently rejoined us after a hiatus. It's good to have you back, Ralph. Lani Murakami, Vice President of Merchandising. Seth Moore, Vice President of Marketing. Carroll Morrell, Vice President of Logistics and Supplier Oasis Fulfillment. Mike Schirru. I don't see Mike here. Vice President of Finance and Controller. Alec Wilkins, Vice President of Information Technology Development Corp. Megan Tuia, Acting Vice President of Facilities and Design.
It's been my pleasure to work with this Management Team for years. They're fantastic, and they're doing a great job. Also present today are Greg Randall and Kevin Johansen of KPMG LLP, the Company's Independent Auditors. If I could have two of you stand quickly. Thank you. If questions arise during the discussion period that are appropriate for our Auditors to address, we'll ask them to respond. Our Treasurer, Mark Harden. Where's Mark? Mark is also here today, and he's assisting us in the tabulation of proxies and ballots and is serving as the Inspector of Elections. Mr. Harden has taken the Oath of the Inspector of Elections prior to this meeting.
Our Assistant Corporate Secretary, Eddie Christensen, is serving as Secretary of this meeting, and he will now provide a caution about forward-looking statements that may be made during today's meeting and will then provide a report on the mailing of the Notice of this Meeting and the presence of the Quorum. Eddie?
We share information today to help you better understand our business. It's important to note that we may make statements in the course of this meeting that state our intentions, hopes, beliefs, expectations, or predictions of the future. These and all other statements, except for statements of historical fact, constitute forward-looking statements for the purposes of the Safe Harbor Provisions and the Private Securities Litigation Reform Act. Overstock.com's actual results could differ materially from those projected in any forward-looking statements that may be made. We disclaim any intention or obligation to revise any forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those contemplated by our forward-looking statements is contained in documents we file with the SEC, including but not limited to our most recent reports on Form 10-K, 10-Q, and 8-K.
In particular, please refer to the risk factors described in our Form 10-K for the year ended December 31st, 2014, which we filed March 12th, 2015, and in our Form 10-Q filing for the quarter ended March 31st, 2015, which we filed on April 29th, 2015. I'll now move on to discussing a bit about Notice of Meeting and the Quorum. We're holding this meeting today pursuant to the Notice of the Meeting dated March 12th, 2015, which was distributed to stockholders on or about March 16th, 2015. A copy of an Affidavit of Distribution will be included within the minutes of this meeting. All stockholders of record at the Close of Business on March 9th, 2015, are entitled to vote at this meeting.
A list of stockholders entitled to vote has been available at Overstock.com's headquarters for more than the past 10 days and is available at this meeting for examination by any stockholder. We will file all documents concerning the call and Notice of the Meeting with the records of this meeting. The count of shares present immediately prior to the commencement of the meeting indicated that 21,159,011 shares of the company's voting shares were present in person or by proxy. This is about 87.17% of the total outstanding voting shares of the company as of the record date, which exceeds the percentage required to establish a Quorum.
Thank you, Eddie. Patrick, I could feel you doing the math on the percentage of present there, and I hope we were close enough. I hereby declare a quorum present at this meeting and that this meeting is duly convened. The Board of Directors thanks all of our stockholders who returned their proxies. Stockholders who returned their proxies authorize the persons named in the Proxy Card to vote on all propositions coming before this meeting. Those of you that requested ballots so that you could vote individually received them when you entered the meeting today. Ballots are also available at the registration table outside. However, we encourage all stockholders to allow their proxies to stand. The first matter for stockholder action is the election of three Directors to serve until the 2018 Annual Meeting. I now recognize Joe Tabacco, Chairman of the Nominating and Corporate Governance Committee.
The Nominating and Corporate Governance Committee has nominated Patrick Byrne, Clay Corbus, and Jonathan Johnson for re-election as Director of Overstock.com to serve for the terms required on the date of the 2015 Annual Meeting of Overstock.com, all of whose successors are duly elected and qualified. The Board has endorsed the Committee's recommendation. I am pleased to present the nomination to move the re-election of these three nominees to the Board of Directors.
Thank you, Joe. You've heard the motion. Is there a second?
I second the motion.
Thank you, Sam. With no other nominations having been submitted in accordance with the Company's Bylaws, I declare the nominations closed. I suggest that those stockholders voting in person now mark their ballots and retain them. We'll collect and count the ballots after we've completed all matters on the agenda. The second matter to be submitted to the stockholders for action is the ratification of the appointment by the Audit Committee of the Board of Directors of KPMG LLP as the company's independent registered public accounting firm for the year ending December 31, 2015. I'd like to call on Allison Abraham, Chairwoman of the Audit Committee, for the recommendation of the Audit Committee and the Board of Directors in this regard.
The Audit Committee has the responsibility of selecting the auditors for the company. The Audit Committee has managed to recruit directors for KPMG LLP as the company's independent registered public accounting firm for 2015. I move the ratification of the appointment of KPMG LLP as the company's independent registered public accounting firm for 2015 as described in the Proxy Statement.
Thank you, Allison. You've heard the motion. Is there a second?
I second the motion.
Thank you, Joe. I suggest those stockholders voting in person now mark their ballots. That being the final action for the stockholders, we'll now collect and count the ballots. Please stand if you'd like to submit your ballot, and one of our ushers will collect it for you. Are there any that are voting in person? Okay. It appears that there are no ballots to be collected, and I will declare the polls closed. Now that the polls are closed, the Secretary of the Meeting will report the preliminary results of the voting. Eddie?
The Inspector of Elections has counted the ballots and proxies and confirms on a preliminary basis as follows. First, the holders of the plurality of the voting shares represented at this meeting have voted for the election of each of the directors named in the Proxy Statement, Patrick Byrne, Clay Corbus, and Jonathan Johnson, for terms expiring on the date of the Annual Meeting in 2018 or until their respective successors are duly elected and qualified. Second, the holders of a majority of the votes of shares of the company represented at this meeting and voting on the matter, which shares voting affirmatively also constitute at least a majority of the required quorum, have voted in favor of the ratification of the appointment of KPMG LLP as the company's independent registered public accounting firm for the fiscal year ending December 31st, 2015.
Thank you, Eddie. I hereby declare the stockholders of Overstock.com have duly elected the nominees for director named in the Proxy Statement: Patrick Byrne, Clay Corbus, and me, Jonathan Johnson. On behalf of the entire Board, I would like to thank the stockholders for their support. We represent the stockholders, and it is a privilege to do so. I'm also pleased to announce that the stockholders have duly ratified the appointment of KPMG LLP as the company's independent public accounting firm for the fiscal year ending December 31, 2015. We will provide final results of the vote in a Form 8-K, which we will file with the SEC within the next four business days. There being no other official business, this concludes the 2015 Annual Meeting of the stockholders, and I again thank our stockholders who attended the meeting in person.
The meeting is now adjourned, but don't leave yet. We have now come to the part of the agenda for questions and discussions. Before I turn to Patrick to answer questions, let me outline the procedures that we'd like to follow during this Question and Discussion Period. Anyone wishing to ask a question should stand and wait. When you're recognized and once you have the microphone, please state your name and indicate whether you are a stockholder, a proxy for a stockholder, a partner, or other person, and proceed with your question. We ask that you please try and keep your questions to two minutes so we allow as many people as possible to ask questions. Once you've asked your question, you may be seated.
You are reminded that we are webcasting this meeting, so for the benefit of those who are listening by webcast, we ask you refrain from asking your question until you have the microphone. If you're listening through the webcast, you may submit questions by typing the question into the "Ask a Question" tab on the website and clicking "Submit." So there we are, and what I'm going to do is Patrick has injured his leg. He's otherwise healthy as a horse, but we're going to let him sit and lead the Question and Discussion Period. So if there's anyone that has a question, now's your time to ask. Steve, we'll get a microphone to you.
Break the ice, I guess. I'm Steve Tryon, former executive with Overstock.com and a shareholder. Well, good job on another profitable quarter. So I'm really curious to ask about something you mentioned in the last earnings call, the last meeting about China. You said you were going to be selling in China in Q2, and I'm really hoping that that's still on track, and I'm looking forward to hearing an update on that.
Okay. I'm turning it over to Stormy and Debbie.
We have secured a facility in China, a warehouse, and we will be shipping there beginning May 15th, and I'm going to let Debbie Brown speak on that for more detail.
Thank you for the question. Very excited about China. We expect to have product received sometime later this week and be selling next week. So a lot of great effort there and—
Through what venues in China?
We're starting selling products on JD.com, which is a marketplace in China, with a quick follow on Tmall.
Thank you, Steve, for your role in building that platform, getting us. Thank you. I saw other questions. Raise your hand, g entlemen.
My name is David Cannon, Aegis Capital, and I'm a Shareholder. I'm also an Investment Advisor, so I manage accounts, and I have a fairly substantial position in the company. Part of this is really commentary and a message for the Board of Directors. Patrick, on one hand, I very much appreciate a company that takes a long-term view that doesn't succumb to the short-term whims. I appreciate the commentary about being a good steward of capital. Unfortunately, there's a complete disconnect between those comments and reality, and anyone that would deny that is basically an ostrich with their head in the ground.
There's almost like a cult-like behavior here where people are congratulating and, unfortunately, if I go back 10 years and I look at the stock, okay, and we're going to talk about long-term, you have shareholders that have lost an enormous amount of money over 10 years, okay? And on one hand, you've done a wonderful job of growing the company and growing gross profit dollars, okay? And I think the problem is easy to fix, but when you make comments like on the last call about Wall Street, okay, as if they don't get it when we've got 10 years of wealth destruction, okay, I think you need to look in the mirror. And really, the issue is an inconsistency of growing operating expenses at a faster rate than gross profit, okay? And there's no accountability. And this is a message for the Board, okay?
There has to be stated objectives whereby you say, "These are our targets," okay? There's no blank check, okay? In other words, we have a target within three years to have an operating margin of X, but none of this blank check stuff. After 10 years, how can you possibly make the comment of, "I'm building a company for the long term"?
Thank you for your comment. Thanks for the opportunity to respond. Our job isn't the stock price. You may have been in for 10 years, lost money. Other people come in a year ago, they've made 50%, this and that. That's not our job, and that's not what we pay attention to. We've built a company that's going to do $2 billion this year-ish, 1-ish% operating margin. We're up against people who— people are worried about Wayfair. Wayfair just got $500 million of funding, and Wayfair just spent 85% more on marketing to grow 35% on the top line. Someone else just got $600 million of funding. I think a reasonable strategy is to say, "We're going to build out the technology in the play." So I'll go back to our job is not the stock price and where you came in and how you lost money.
We don't pay. I'm sorry. I'm a steward of people's capital, not their stock price. We've gotten a couple hundred million dollars of capital— $250 million of capital that we've built something with. Currently, the market values it at $600-ish million, but that's not what we pay attention to. The right strategic and competitive thing for us to be doing is, unlike our opponents who are losing $100 million to $500 million to $1 billion a year, to say, "We're going to keep ourselves." We're in a race to build out a platform. We're in a race to build out technology, and both we and Amazon and I think Google and Wayfair and Jet and maybe Zulily and Walmart, we all understand we're in the same race. It's a race to build out a certain platform, and some of us are coming at it from different directions.
We could take the attitude of, "Gee, let's race to build that out," subject to, "Let's just race to build that out and lose $100 million a year like Wayfair," or we could take the position of, "No, we're going to build out. We're going to first say, 'What can our earnings grow each year?'" And then within that, that gives us our budget for how much we can use to build out. The truth is the right competitive thing to do is to build it all out as quickly as we can. And to me, the position of, "We're going to build it out as quickly as we can while keeping ourselves sort of 1-ish% profitable," that's the right strategy. And I'm sorry, I just do not pay attention to the Wall Street chatter that advises something else. And for some people, it means you're making money.
Some people lost money. Some people made a bunch of money in the last year. We don't let that affect. If you want to engage about that strategy, be happy to engage about it. I'm not interested in engaging about the stock price.
Do people like to commit to certain targets and objectives? When you refer to being a steward of capital, implicitly that means the stock price. You're a public company.
No, it doesn't.
I mean, you're a public company. Did not Mr. Johnson, okay, refer to the shareholders at the beginning of this meeting? Isn't that what it's about? Aren't those your partners? Are you telling me that you don't care about the stock price? Is that essentially what you're saying after 10 years?
That's not the word I used. That's not the word I used. If you want to use my words, I'll be happy to talk about my words, but not the words that you want to talk about.
I mean, when you make comments like you're not taking responsibility, you're blaming Wall Street, okay?
No, we're going to get in the imaginary world. Let's return to the real world. In the real world, there are budgets. There are decisions that I make with the Board and Budgets between me and the Board. Am I going to get in the position of announcing to Wall Street my objectives and how I'm hitting it? No.
Right. So my message for the board is to stop giving Patrick a blank check, okay, and to have accountability like we do over our own finances, like I have over my own business. There is no blank check. I have accountability, okay?
Now, there's no blank check.
I have to live within a certain budget, okay? So to have rough guidelines, and I'm not negating many of the good things you've done. I mean, gross profit has grown by $81 million over the past two years, but it's really the uncontrollable spending without any objective.
How do you have any idea whether it's controllable or uncontrollable? How do you know if it's controllable? How do you know that we didn't hit exactly our expense budget?
Then you should give more disclosure. Are you saying that you have the light under a black box where people don't know what's going on? Where are your partners? Where are the shareholders?
What makes you think that you're making assertions that these expenses are uncontrollable? How do you know that we haven't hit budgeted expenses to the dollar? How do you know that?
Because you've used, well, I can't say with 100% certainty because I'm not "under the hood" like you are. However, I can only go by the tidbits, the disclosure that you've given me. You used the words investments, okay? So when you make investments, which I'm all for and I'm all about the long- term, I have no problem holding the stock for the rest of my life so long as there's going to be wealth creation, okay? But you made the statement, you've consistently made the statement that you're making investments. Well, investments imply a certain discretionary nature, but I can't 100% challenge you and be certain that I'm correct on that. And in general, when you refer to Wayfair and Amazon, my response is, "Who cares?" Okay? Because 99% of the companies, what creates value is increasing cash flow and increasing earnings.
That is what's tried and true, and that works, okay? So to look at these anomalies like Wayfair and Amazon and to comp against them, I think it's disingenuous. It's not productive. At the end of the day, are you getting the win or are you getting the loss? And the truth is, after 10 years, you're getting the loss. Do you not care about your shareholders? It's immoral, okay? You need to make money for your shareholders. You need to be accountable. The Board needs to start challenging him and having strict objectives and parameters.
Is the question done, Mr. Tryon?
No, I'd just like to comment.
Okay. Go ahead.
Each year, management submits to the Board a budget for the year. It has goals, objectives, and parameters. The Board approves that budget, and we measure the management team every quarter on that budget when we meet in our quarterly meetings. If those are different than what Wall Street is expecting, that's okay because the Board looks at what our objectives are: to grow the top line and to keep the bottom line above a certain dollar amount. That's what we're doing. And so I appreciate the comment, and the Board will note it, but I want you to know that it's not discretionary spend. And when Patrick talks about investments, those are talked about in detail with the Board in our quarterly board meetings.
Stormy has something before I want to respond.
It is on. Thanks for coming with your comments. I semi-understand what you're saying. I appreciate you being an investor for 10 years, but there is no—w e're not a wild board that is—w e're part of a team here. Now, we don't control the stock price, and what we're building is of intrinsic value in a competitive environment. So it is fair for us to talk about Wayfair. That is a competitor that we are going up against. Now, how that affects the stock price, you got me. We've been profitable for 13 straight quarters, the only e-commerce platform to do so. We're not a marketplace.
We've managed this to profitability. Now, why the stock price doesn't reflect that, but it reflects it on companies that are losing billions of dollars, I can't answer that because my job is to build the business, and I think that's what we're doing.
I would close out saying that. Return to the real world for a second. 10 years ago, we had a $500 million business losing $20, $30, $40 million a year, one year $100 million. We now have a $1.5 billion business last year making, well, pre-tax operating income of $15-$16 million.
I'd be happy to meet with you so you feel more secure in your investment and make a decision.
That's not the issue. That's not the issue. No, the issue of, doesn't reality matter? My reality is 10 years ago, we had this, and now we have that. That's my reality. That's the only reality I'm going to ever focus on. Never going to release to Wall Street anything more about what it is. We discuss with the Board, your representatives, the expenses and the plan and such. We get it upfront. We manage to it. We hit it. Generally, hit it over and over with some. There are some hiccups there.
But to me, the reality is you owned a piece of a business doing $500 million, losing $100 million 10 years ago, and now you got a billion and a half, close to $2 billion business this year that we think makes $15-$20 million and is generating $80 million of operating cash flow that we can be putting into filling in for the long term. And I think it is important to note that we're up against that the competitive environment is one. We have people who they really do have blank checks, and they don't seem to know they're losing $100 million a year and with negative contribution margins. And I think we have to take that into account as we think about what our plan is. But no, I'm not going to get in the business anymore of, well, so I understand your concerns.
Sorry if you've been one of the shareholders who lost money based on when you came in, but we think that you own a piece of the business that is far more valuable than what you owned 10 years ago.
Okay. One final comment, just so that this isn't missed. The main problem is that you're not bringing those gross margin dollars to the bottom line, okay? So you've done a great job of growing the business and gross margin dollars. However—
I think we're losing $40 million to making $15 million then.
I'm sorry?
How did we go from losing $40 million 10 years ago to making $15 million?
Right. By growing the top line in gross margin dollars. However—
The expenses?
And in the last two years, okay, if I go back and I look at the last two years, okay, when two years ago the stock was significantly higher than it is now, you've added $81 million in gross profit, but you've grown the operating expenses at a faster rate. So if you continue to deny the reality that what creates value for shareholders is growth in earnings, okay, then the stock will continue to go nowhere. And what I'm saying is if you keep blaming it on Wall Street and making excuses, it never will go anywhere.
Return to the real world. I hear 10 years. I hear two years. You're making up words for me. This is an unproductive conversation. If we compare on 10 years now, Patrick, it looks like this, but if you only limit it to the last two years, why don't you pick your yardstick? I don't want to argue with somebody whose yardstick changes at every turn.
I mean, the yardstick is nobody, no matter how far back I go, shareholders haven't made money. So at the end of the day, it's a fine line.
From the fine line a year ago, it's up 50%. How do we use a year ago?
There's a fine line between winning and losing. And at the end of the day, over the long haul, which you say you're focused on and you're a good steward of capital, right now you have the L. There's no win. And I'm saying change that.
All right. Well, we've taken $250 million and turned it into something else.
So you don't care about shareholders. End of conversation.
Is this one of these conversations where we make things words for each other?
That's unfair for you to land on that. I'll determine if I'll speak for myself on whether or not I care for shareholders. The answer is yes, I do. And I'll also speak for the organization when I say where we make the investments because we're making them in a long-term intrinsic value in a competitive market. And so do we have to invest in G&A? And maybe things you might do differently, yes, we do. But we're making the right decisions. And I do stand behind that. And I appreciate your investment in us. And hopefully, we can make you happy.
Are there other questions? Do we have any questions coming in on WebEx? No. Okay. Well.
Does anyone have a question to end it?
Please, in the back row.
I'd just like to say I think we're talking about a land-grab opportunity here. Overstock.com is still a small business. I think we'd all like to see it be a bigger business, more profitable. So if that means investing in some disruptive fintech technology, then I'm willing to stick around for the long haul. I just like to get everyone's sort of perspective on that if we're looking for a bigger business, more profitable business.
That's what we want too.
That's what we want too.
That's what we're working for every day.
We'll move on to a different subject.
We'll determine if it is.
Can you tell me how much?
Could you identify yourself again? Sorry.
I'm sorry?
Could you identify yourself again?
Cannon.
David Cannon, Aegis Capital.
David Cannon.
So, how much from a year ago have you invested? How much has OpEx Services specifically, Oasis, and last quarter, how much revenue did it contribute?
We're not going to break down quarterly. We can say what we expected to do this year if you want.
I don't want to make any projections on it. Last quarter, what did it contribute? Financially, not enough to speak of, but the investment that we made is pretty heartily in what it will produce. We just finished our annual partner summit, and we have a lot of people interested in it, and we expect it to grow rapidly. The technology is being iterated on every week. It gets better every day, and we're ready to launch it to the masses. We invested in it.
Can you give any color year over year what the increase is in OpEx specifically?
I can give this, how about this? That we, if you take our total investment in it, I expect we'll make about a third of that back this year, but with a bullet. Is that about right? I mean, and growing rapidly from that. So I think we put about $3 in, and I hope to get about $1 in fee income this year, but with rapid growth after that.
Okay, and then you guys rely heavily on third-party transportation, and there's been talk about changes, and there's going to be an increase in cost. Can you talk about that a little bit? Is that something that we should be concerned about?
The DIM pricing? Isn't that going to affect in January?
Okay.
Do you want to talk about that? Is it something we should talk about, Ed?
I don't think we should.
We can't talk about it. Okay.
But we can say something.
Yeah. So.
Without any reference to special situations with us, just industry-wide.
Right. So industry-wide, this has taken place, this new DIM weight billing for Overstock specifically. We have great partners on the carrier side, and it's not in effect for us this year, partially.
Probably do this.
Think it is what it is.
Question?
Arturo Burnhamberg from AE Capital asks, "You have said you want to break 20% revenue growth. What initiatives would allow that to happen?
On the 20% revenue growth? To be honest, it's a combination of a whole bunch of things. It's a combination on the marketing side, and it's a combination of SEO and attracting partners to this platform. So it's kind of hard to pull out one initiative from other. We are getting better at CRM. We're, in some areas, in online marketing, as good as the game. In areas that we still have a ways to go, there's still a ways to go. But a lot of it is online marketing. Club O is being very successful and is growing at several multiples of our overall growth, and it's quite profitable.
Private label credit cards.
Private label credit card credit. So there's a couple dozen pieces that are the answer to that. The credit we're offering has been quite successful. We started offering last year. Okay. I'd like to thank everyone.
Oh, David.
We're good, David?
One more. One more question is about capital allocation. I know Patrick understands this. He used to work for Buffett. When you did, in the last 12 months, $67 million in operating cash flow. I mean, I don't know how to value it on EBITDA, but it seems like it's cheap. Why aren't you buying back stock now and taking advantage of that? Why isn't the board using all of the levers that they have at their disposal?
That's a fair and interesting question. And counsel, how should I answer that question?
That's your turn.
Tom. Mr. Chairman, how should?
I asked Tom to answer that question. A press release will be coming out shortly. They will answer that question. The board having just met. A press release will be coming out on that shortly. That concludes the informal part of our meeting. We thank all of our shareholders, those that are here, those that joined via WebEx, those who voted by proxy. We appreciate all the questions.
We do.
We appreciate all the questions. And we represent the shareholders, and so we like to hear the shareholders' voice when it's easy to be heard and when it's difficult to be heard. So I thank all of our shareholders for being here. We appreciate those who have confidence in us. We do our best to earn that confidence. And this will end our meeting, and we.