Well, good afternoon, everyone. Thank you very much for joining us. This is day three of our 24th Annual Oppenheimer Consumer Growth and E-commerce Conference. I am Brian Nagle. I'm a senior equity research analyst here at Oppenheimer, covering the consumer growth and e-commerce space. Again, thank you all for joining us. I'm very pleased to have with us our next presenting company, FIGS, and the company's founder and CEO, Trina Spear. Trina, thank you for joining us.
Thanks, Brian, for having me. It's great to be here.
So Trina and I will structure this as a informal fireside chat. I'll ask Trina questions, and she'll respond with answers. To the extent there are questions in the audience, just send them through the chat, and I'll be happy to work them into our conversation. But again, thank you everyone for joining us. So Trina, a couple maybe bigger topics I want to start with before we talk more specifically about the operations of FIGS. But, you know, I'm starting most of these conversations I've been hosting over the last few days with just, you know, given the focus on the consumer, you know, given the uncertainty of the consumer out there, thought maybe from your unique perspective, you can just opine upon what you're seeing as far as the consumer environment.
Sure. So, you know, I think from a macro perspective, you know, healthcare is the place to be, right? It's a really incredibly large industry, and it's the healthcare jobs are the fastest-growing job segment over the next 10 years. And so, it's great to kind of be where we sit in terms of serving this community, right? And, two-thirds of our customer base make less than $100,000, so definitely impacted by what's happening post-COVID in terms of interest rates and inflation, but at the same time, we're seeing, you know, we're seeing kind of people kind of getting back to work, really serving all of us as laypeople. They're the backbone of our society.
And there's a lot of pockets that are really growing and growing fast, and, you know, what we're seeing in concierge medicine and in wellness, healthcare is becoming more consumerized, it's becoming more personalized. And that's been really great to see. Very much aligns with our TEAMS business, which we can get to, but, you know, very stable, mandated industry, replenishment-driven, and the fastest-growing job segment over the next 10 years. So although there's kind of these, post-COVID, kind of this, a little bit of an overhang, right? People stocked up, and inflation is definitely a factor, over the long run, we really do see this as, incredibly attractive going forward.
That's a very helpful and great way to start. So I do wanna just jump right into the, you know, sales trends. So on your, on your most recent report, which I guess was a few weeks ago or so now, you know, you and your team did talk about a, I'd say, let me use the word solidify. Solidify, maybe potentially strengthen, a sales trend within the business. So maybe you can just elaborate a bit upon that more and talk about kind of what's helping to drive that. There's obviously been a lot of initiatives on the product innovation and marketing side of FIGS, but could you talk about what we're seeing in sales, given those recent comments?
Sure. So, you know, we always say, "Though don't use the macro to cover your sins and control what you can control." And so I think, you know, we've done a lot over the last 18 months to really, you know, reinvigorate from an innovation standpoint, shifted our supply chain, bringing product-based, solutions-based product innovation to our community, and coupling that with impactful storytelling, which we've talked about. And so that's been a really important thing, and we've seen that drive our repeat frequency. And we've talked about repeat frequency, and kind of where it was prior to COVID was right around here. It kind of increased in a huge way and accelerated during COVID, and now we're in this really low point.
And so seeing that normalize a bit, and as we look to head back to more normalized repeat frequency is a great thing to see. And we're driving that through great product innovation and through impactful storytelling. We talked about a number of new innovation launches in the first quarter, seeing those play out in a big way. We also recently announced, I don't know if you know this, Brian, but we are now the outfitter for Team USA's medical team for the Olympics in Paris in 2024, which is incredibly exciting. And that, you know, we weren't able to announce it on our last call, but we could announce it now, in terms of that driving that incremental spend from a marketing perspective.
And so really leaning into being opportunistic around this partnership, around serving this community in this really awesome way, and we're really excited about that.
So talk more about that, Trina. So, I, 'cause I think that, I think that would be new to a lot of people on this, on this event. But so maybe kind of what led to, what, what led to that partnership, and then, you know, how should we expect, as investors, how should we expect the, you know, the, the benefits to, to the, the FIGS brand roll out over time?
Sure. So, you know, I think if you even take a step back about a year ago, we were in a very different inventory position, right? And so, over the past year, we've gotten to a much healthier position, really not even impacting much on from a gross margin perspective. Brought our inventory balance down from $190 million to $119 million. Started this year in a really healthy position, and we're saying: "Okay, we have all of this incredible innovation coming. We're gonna be telling top-of-the-funnel type of marketing stories around our products and our people." And so really did that, and I don't know if you saw our Indestructible launch with Dr. Chloe. She's a veterinarian in South Africa. She serves the, our most endangered species, specifically with rhinos and other animals, but really incredible campaign. And we also did our Dr.
Lou campaign, who's the doctor behind Formula One, and now we're really focused on the Olympics, in serving the medical teams, which no one's spotlighted, by the way. No one has ever outfitted these teams, ever, in any product, right? So you have had Nike, and you have Ralph Lauren, and now you have FIGS, that we are now supporting the medical teams for Team USA, which is super, super cool, and never been done before. And so, you know, what are these moments from a strategic perspective where we're partnering with other organizations like Team USA, like the medical teams behind Team USA, and saying, "What does that look like?" Right? How are we putting a spotlight on this community doing this work? And by the way, like, you know, if you think about it, everyone talks about that athlete, right?
You see that commercial, oftentimes an athletic company saying, "Oh, it took grit, and it took perseverance, and passion, and practice all these years." It's also that, that medical team, right, that is making sure that your every single part of your body is working right, so that you can go break that record, win that medal, get on that podium. And so putting that spotlight on this community is super important for a whole host of ways. And, you know, we have low brand awareness. We have a 20%-ish brand awareness, and so having this, you know, this is a 360 campaign across top-of-funnel, out-of-home TV, all digital channels. Putting that spotlight on them, obviously on FIGS, as we're the company supporting them, is a huge moment. We're really excited about it.
And to your point around what does this do, we find top-of-the-funnel marketing drives LTV, right? We've, like I said, last year we were much more conversion-focused. I'm not mad about it. We worked through that inventory balance, but that is not the best way to acquire customers. The best way to acquire customers is that top-of-the-funnel, bringing them from awareness to mid-funnel consideration to bottom-of-the-funnel conversion. We find that those are the healthiest customers, having the highest LTV over the long run. That's always how we've built this business, and really getting back to that this year is really exciting.
So as consumers here in the United States, FIGS consumers here in the United States, will they see that, you know, the, in the advertising you do, will they see that partnership with the Olympics?
They will, and, I mean, really globally, right? So, we are now a global brand. We're in 33 countries. Our international business is really strong, and so, you know, we're gonna be in Paris, right? We're outfitting the opening ceremony, you're gonna see the healthcare professionals in FIGS, right? So this isn't just a U.S.A. play. This is an international global play. But, you know, it's a little bit like, you know, you see companies all the time supporting different teams. You're not like, "Oh, well, I don't like them because they're just that team." This is really exciting for all healthcare professionals around the world.
So, talk, like, your product innovation, I mean, look, I mean, FIGS is based on product innovation. I mean, you've-
Yeah
... you've innovated very successfully what was a stale, kind of tired category, if you will. So as we think about the product innovation that, you know, we've seen recently, you know, maybe that's what's helping to drive the better sales lately. And as you think going forward, now that you're in a better inventory position, can... Where is that product innovation really taking hold? And maybe talk about both on the core scrub side, as well as some of these non-scrub products.
Sure. So I do think, you know, we've really... In COVID, it was, we were in a very different environment, right? 120 days on the water, our supply chain was, all supply chains, right, were a bit upside down. And what we've done over the last couple of years is really set ourselves up to be working with the best partners around the world. We've broadened our supply base, we've broadened our, we've diversified by geography, we've diversified by category. And so this has been a really exciting thing, and you've started to see it in 2024 with our launch of our Six-Pocket Scrub Legging , with the launch of our Sherpa Bomber, with the launch of our Indestructible fabric, with, you know, our Cargo Scrub overall, right?
These are brand-new categories that have never really existed for our industry. They're working. I think for a long time, because of what was happening with the supply chain, and also because of what was working during COVID, you saw us dropping color, right? Dropping color in that core styles, and that was really, really wonderful. But when you do that, that's actually a pretty broad SKU base because it's all the core styles. What you've seen from us now is really dropping completely new, innovative products, right? We bring them in a few colors, but that's actually driving SKU productivity as well, right? Because we're doing similar levels of sales as, call it a color drop, right?
Just with one product in a few colors, which is an incredible thing to do to shift to innovation, shift to really solutions-based product innovation while maintaining SKUs while maintaining revenue and really driving SKU productivity. So, I'm really excited about the future of the business. I think SKU-innovation is what's most sustainable with the most iconic brands in the world. We've always been known for it, for, to your point, and now taking it to the next level, given we have this incredible supply chain now to be able to do that. You're seeing non-scrub wear grow as well.
To your point, over 20% of our business now is non-scrubs, and we're seeing high attachment rates between our customers that are coming in to call it buy that core scrub set, then coming back, buying an under scrub or buying an outerwear piece, then coming back to replenish their scrubs, then coming back again for a non-scrub wear piece. So that journey is really robust. And so, over time, we'll continue to kind of build out our non-scrubs, but at the same time, really focused on seeing that repeat frequency dynamic within scrubs. That's where the replenishment comes from.
And then having the lifestyle piece and coupling that with lifestyle is how you see this flywheel work, and so we're excited to already see this paying off, and we're doubling down on all the things that we talked about in the quarter of around what's working.
So how important is color now? Is it... I mean, I guess, let me answer the question better. Or ask, I'm sorry, ask the question better.
Yeah.
Is color still a key driver here?
Color will always be a driver. Everyone loves our FIGS colors, and it's awesome, right? Color, and I would say variance, and people talk about, like, franchises of your best-selling styles, right? Nike, Lululemon, others have done an incredible job around franchises, right? And we've done an incredible job around that. Bringing new colors in our best-selling or your favorite Catarina Top , in your favorite Zamora Pant, that's always gonna be a driver, right? Because you want that new color. But at the same time, what is that thing that's gonna completely help you perform better in your job? That's also really important. So these things aren't, this goes away, and this comes in. These are all really important, but how do we continue to diversify our levers, right?
Five years ago, we were a scrubs company mainly, with one channel mainly, e-commerce, with, you know, a couple partners, and, you know, that's great, but now we are a broadly diversified global iconic brand with a broad assortment across category, with a broad geography base across the supply chain and across who we're serving. We're now in 33 countries. And so it's just, you know, being a broadly diversified company, doing all of these different things across channels, right? We have our TEAMS business, too. We're opening our Community Hubs . We have one in Century City. We're opening in Philly this summer. Like, all of this gives us, you know. We have the authority from our community to be, and we are the leader in the space, to do all of these different things, and that's really exciting.
So we'll talk in a bit here just about the, you know, the financial algorithm, if you will, of FIGS.
Right.
But the question I want to ask here is on this topic. So, you know, look, we talked about Q1, you talked about sales, you know, sales growth picking up a bit here, but still the sales growth for FIGS is still well off of what I would consider a normalized algorithm, what it's done historically. So as you think about, you know, this coming together now, your inventories are in better shape. You have, you talked about this new innovation resonating well with your consumers. I mean, how much better, given the momentum here, could we see sales growth get for the company, even if the macro environment stays challenging?
Sure. So I think, you know, what we have to do is zoom out a little bit. So if you go back to 2019, we did $110 million in sales. Last year, we did $545 million in sales, right? And so if you look at that trajectory, and if you were to look at my 2019 model, it probably would be around that number for 2023 and around where we are in terms of 2024, let's say. But we- that acceleration, right, in 2020-2020, 2021, 2022, kind of have skewed the model a bit. And so if you actually look at that CAGR, it's about a 58% CAGR over the last five years, and if I had done 58, 58, 58, we would all be psyched.
But we are where we are today, and so if we look over the next five years, we are gonna. I think that is the thing here, everyone saying, "Hey, FIGS, we would love to see a long-term algorithm. We would love to see what that looks like from top line, from bottom line." And we just brought on, we announced today Sarah Oughtred from Lululemon is joining us as our CFO, which is incredibly exciting. We are gonna do that, right? We are going to go out and and give people more color around our long-term plans, now that we have our CFO in place. But I do think, like, you know, take that trajectory, I think there's gonna be a re-acceleration obviously. That's what we're talking about, right?
Take out the transitory costs around our fulfillment this year, you see a really healthy margin from a bottom line perspective. So, we are building an iconic global brand for the next 100 years built on discipline around growth and profitability. That is our story. It's always been our story. It's gonna continue to be our story. We'll give people more color around actually what those numbers will be over the long run. But we feel like we've never been in a better position. We have $259 million of cash. We have no debt. We have all the pieces in place from a supply chain perspective to really deliver on innovation. We have all the pieces in place from a marketing perspective. We brought on Bené Eaton earlier this year from Converse as our new CMO.
We're really telling impactful stories around our people and our product. We're executing from an infrastructure standpoint, building out our distribution center in Phoenix. That's a huge win as we look to build our global distribution network, and so really feel good about where we are today and where we're going.
So let's talk about the hire you announced this morning. You just mentioned with Sarah. So I woke up this morning, saw the news. I was very excited because, you know, as you mentioned... So here's a new CFO coming to FIGS shortly, you know, after a long time at Lululemon, which is an extraordinarily well-respected, you know, brand and financial organization. So I guess maybe you can elaborate further on this hire. You know, what does Sarah bring to FIGS? What's the kind of mandate she's coming in with?
Sure. So I think, you know, Sarah is incredible talent. She's been at 17 years at Lululemon. Amazing, you know, amount of experience, right? She joined when they were doing about $250 million in revenue. I think Lululemon's doing, I don't know, over $10 billion this year. That's quite a trajectory, and so we look to have a similar trajectory over the coming years. And so, someone who's seen that level of success was super important to us as we were looking for a CFO. The second piece of it is that, direct to consumer. What Lululemon has done is built a really incredible business model, direct to consumer, both online and offline, very similar to what we're doing at FIGS, and so owning the channel is really important. You're able to own that data.
You're able to know exactly who your customers are, what they do, where they live, what they need, and so that's an important piece of something that, you know, Sarah owned, right? She owned the data analytics at Lululemon. And so, and then third, right, culture. Strategic thought partner to me and the rest of the team, really aligned with, you know, mission-driven company, values-based company. We think the best companies are mission-driven, and Lululemon is mission-driven, I think. And our mission is big, right? We're serving those who serve others. We serve this community that goes out every day to save all of us. That's a big mission, and so, having that same lens is really important. Finally, what else? I mean, inventory, right? Understanding inventory. We're an apparel company, understanding all the dynamics there.
And, you know, and obviously working with everyone from a street perspective, you know, really deep understanding of the street, the analyst community, the investment community, and so that's really all the things we're looking for, and Sarah brings it in spades.
Perfect. So talk a bit about the TEAMS business. You know, this is something we've been talking more lately about, you know, and a big opportunity for FIGS to, you know, penetrate better. You know, it had been a kind of, I'd say, an underserved cohort for the brand.
... Sure. So I think, TEAMS is an incredible, incredible opportunity. TEAMS, you know, concierge medicine is on track to double to $15 billion by 2032. Concierge medicine is pretty much any part of medicine that's becoming personalized and consumerized. We all want our healthcare on our phone at this point, right? We want to go around the corner, we want to get all of our blood work, we want to think about the One Medicals of the world. We want to also get our Botox, think about the aesthetics. We also want to take our dog around the corner when there's an issue, think about the veterinary emergency medicine space. And, you know, that's wellness, right? Wellness is taking off.
Healthcare concierge medicine is taking off, and our Teams business is right at that, you know, awesome space to be able to serve this, this part of the community. So, we are partnering with healthcare institutions across the country and across the globe to outfit and help them standardize and brand, and really outfit all of their employees. We're helping them get their logo, their names. We're also doing cross-marketing with them, and concierge-level support. And there's no company and brand at our scale that's able to really support at this level, so it's an amazing opportunity. We're building out our outbound sales force right now. We're building out our digital marketing efforts around this, as we look to really seize the opportunity, as the tailwinds are there.
How big is TEAMS now? And as you think about the ongoing evolution of the FIGS brand, I mean, how big maybe as a percentage of sales could it ultimately be?
Yeah, I mean, today we're about mid-single-ish digits. I think we've announced that, as a percent of total. I think in the future, you know, it's gonna be obviously bigger than that. We haven't announced exactly. That's back to this long-term algorithm, breaking out each part of our business so people can understand, and I get that. And so we're gonna do that work. But I do think, the Teams business, from an industry perspective, that part of the industry is growing faster than other parts. And so, I do think as it relates to, the direct-to-consumer part versus, call it, the B2B or Teams part, given what's happening within concierge medicine, this is a very exciting piece, to look at, and, it's gonna be, a growth lever in the future.
And so what type... I think you may have just mentioned this, but what, what type of infrastructure build-out does, has to take place in order to support the TEAMS business?
So I mean, I think that's the other piece about it, is that it's really scalable. You know, this is, from a growth margin perspective, we're a little bit less because you get a discount if you're buying that much in bulk, but we get an incredible amount of leverage from a selling perspective 'cause we're shipping in bulk. But today there's no marketing expense, so it's all inbound. And, you know, you could say, "Oh, well, you should allocate some of your marketing from e-com to that part of the business, because that's how people are hearing about you." That's fair, but even if you do, like, a corporate allocation from a marketing and G&A perspective, the financial profile of the Teams business is absolutely incredible.
And so yes, we need to build out an outbound sales force, but it's not, you know, 50 people, right? We're talking about a handful, a bit more, as we continue to build. But like I said, you know, these are potentially multimillion-dollar contracts. I mean, this is incredibly valuable as you think about what's required to serve them. We have that in place. We built out the technology to really be able to scale as well. So right now, you can go on our TEAMS app. You could order for thousands of people, right? And so it's and without ever talking to anybody. And so by having that tech in place as well, it enables us to serve this part of the market in a really awesome way.
So shifting a bit to international, I mean, we mentioned here, you know, a few moments ago that, you know, FIGS is very much a global brand at this point. I mean, it's still primarily focused in the United States, but with operations really across the globe. So maybe discuss international. I mean, how do you think about international markets and growth in the international markets versus what you're seeing in the United States? What other investments are needed to sort of drive that growth outside the U.S.?
So, I mean, international is really exciting because it's not like the dynamics are that different than the U.S., right? So healthcare professionals, whether you lived in Paris or Mumbai or Kentucky, are all... It was all awful. It was all ill-fitting, baggy, boxy scrubs, and it was all kind of having to have a not a great experience in terms of buying your scrubs. And so, you know, we really feel, and we've already seen it, right, in Canada, U.K., Australia, we're now in 33 markets, that healthcare professionals deserve better. And they, you know, we like to say, "The worst customer experience is no customer experience." We're they're asking for FIGS, we need to be there, we need to be able to give them obviously an incredible product, but also an amazing experience.
I would say right now, having our distribution network, where we're opening... Obviously, we have our Phoenix facility that's helping us set us up for global distribution. Opening up in Canada, another facility early next year, really sets us up to make that experience better, right? 'Cause you shouldn't have to wait a week-plus for your package, right? You should be able to get that immediately so you can go to work and do your job. And so, seeing incredible growth, a big part of that is localization, localizing your language. You should be able to go to the site and it be in your language. Currency, being able to see the products that are most aligned, with who you are, where you work, what you do.
That goes back to truly localizing the product offering, localizing the message, aligning to your holidays, aligning to where you are, where you live. That is all a big part of our plan, to make that our international experience just as good and on par, if not better, in some ways as our U.S. experience.
Now, we've talked a little bit here about this, the DC transition. I know this, you know, this has been a big focus for FIGS.
Yeah.
Well, so this year, 2024, you know, when you've articulated, you and your team have articulated this very well, that, you know, it will be, to, to a certain extent, drive profitability. But so I guess I want to... The question I want to ask is, as you think about this transition, you know, moving to the facility in Phoenix, and you just mentioned, you know, a potential forthcoming facility in Canada, I mean, how, how are these, how are these new facilities gonna help drive a more efficient FIGS?
... Yeah, I mean, it's all about, you know, customer reliability, right? Making sure that experience is flawless. And, you know, nothing's ever perfect, but we try to, we try to get as close as possible. And so having this facility, first off, scale, right? Between this facility and our facility in Canada, we're gonna be able to—that will take us to at least $2 billion in sales. So really having that scale and that ability to continue to grow the business, and having a partner and partners that are, you know, growing with us. So that's number one. Number two, you know, really a lot of it, we've really built a lot of automation, and so over time, we're gonna get a lot of leverage from this facility in terms of robots, automation. It's incredibly tech-enabled, it's beautiful, state-of-the-art.
you know, back to reliability, customer experience, you get your package, you get what you need, and you get it fast. Helping us deliver on our brand promise and get our customers what they need to do their jobs as quickly as possible, that is the goal.
So from a consumer standpoint, then, it's... You know, I mean, how... I guess maybe I'll just make the question really simple. If I'm a consumer of FIGS, you know, with this new facility in place, how much quicker will I be getting my order?
I mean, it depends on where you live, right? But I think we, the East Coast, it was taking quite some time, and we've already sped that up by a number of days, and we're gonna continue to work to get it even faster. And so, you know, a few months ago, even, and we've already are up and running, by the way, in our new facility. And, you know, we're actually operating out of both right now. It was taking kind of upwards of, like, a week to go from our facility out of L.A. to New York, and now we're, our goal is really two to three days. We're almost there. So this is really exciting, and I think that drives repeat frequency, it drives engagement, it drives loyalty.
It drives, you know, just that kind of intangible quality of when you, when you get something fast, you go, "Wow, I love this company." And so that's a great thing, especially with Amazon these days, right? It's the expectation, right? And happiness is the difference between expectation and reality. And so how can we align those two together so that our healthcare professionals are as happy as possible?
So, you mentioned $2 billion in sales, $2 billion in sales. Would there be a need or even advantage to opening another distribution center within the United States, not just to fill out of one?
I don't think so. I mean, based on how we're setting everything up, we're gonna have a lot of efficiency from the East Coast with our Canadian facility, 'cause it's gonna be on the East Coast. So we'll be able to serve essentially the whole country with these two. I think in the future, though, there's a lot of opportunity within Europe and then eventually Asia. We're only in the Philippines right now, but Asia obviously is fastest growing. China, and Japan and all parts of Asia are really growing fast. And so obviously, getting there, building that market, and then you know, our facilities are overseas as well. And so there's a lot of opportunity, even from a bottom-line perspective, and a savings perspective in terms of building that out eventually.
So, supply chain.
Um.
You know, we talked a bit about inventory. Inventory's getting back, you know, inventory's now been in great shape. I mean, from a supply chain perspective, are we now completely through the pandemic disruptions and the supply chain's functioning perfectly?
Nothing's ever perfect, but-
I probably shouldn't have used the word perfect, right? So that's what we're-
Yes. Yes, we're in a much, much better place, right? We talked about this, right? We, we brought it down from $190 million inventory at our peak. You know, days on the water was upwards of 120 days. We're back to kind of, you know, between Vietnam and L.A. Port, 30-ish days, and so a lot of that disruption's gone. I think the... And like I said, over the last few years, we've really taken that opportunity to build out our base, our supplier base, diversify by partner, by country, and feel really good about where we are today, and feel really good about our inventory position. We're in a really healthy place, which is why we're able to bring such incredible newness and innovation to our community.
So one of the questions I get a lot, and I, so I just wanna throw it out to you, is, you know, competition. You know, clearly, as we've been discussing here, you know, FIGS is a unique company with a unique value proposition and a great product. But so from your, from your vantage point, though, do you, who do you view as your competition? I mean, is there really competition out there that, that, that is in kind of direct competition for FIGS?
Yeah, I mean, I think that the large players, so there's two parts to the competitive landscape. The large, old-school players that, you know, we say that they were anti-moat, stuck in the strip mall. The largest player on that part of the, part of the market went bankrupt recently. So that was SPI, Careismatic, they owned Dickies and Cherokee and all these other licenses. And so that company, I think, you know, has really struggled. And so I think that's who we've taken the most share from, and we're gonna continue to take share from. There's other companies that are called the new world, that have kind of come up, after us and tried to replicate what we do, which is, I think, proven to be very hard.
Because it's really hard to build an authentic brand, right, that serves a community, and that's what we've done over the last 10 years. That's what we plan to do over the next 100 years, right? But those companies are all doing $50-ish million or less, and really haven't seen much in terms of, you know, anything really original. Actually, it's something I've also talked about, you know, we talked about Lululemon. You know, they had a lot more competition than we have at our stage and our scale. So we really do feel good about our position in the industry, being the leader, building an authentic brand that people love, building products that people love. You know, it's really hard to... At this stage, scale matters, right?
Having a marketing budget to the extent that we to the level that we have it at, matters. Connecting with a global community matters. And we have $259 million of cash on our balance sheet, we have no debt. It's ours to execute on, and that's what we're gonna go do.
No, that's a perfect... I know our time's gonna start to wind down here quickly, but that's a perfect segue into my final question, just the balance sheet. I mean, I view the... the balance sheet of FIGS, the cash position, and frankly, the low capital intensity of the business model is a huge positive. So maybe you can just elaborate on that. I mean, you know, how, how-
Yeah.
How do you look at your balance sheet now? I mean, what would there be the potential uses or how could you use the excess capital that sits on the balance sheet?
Yeah, so like I said, $250 million of cash, we have no debt, and we're a highly cash flow generative business. We generated over $85 million of cash last year, right? So, you know, I think we have a incredibly structurally advantaged financial profile that, between, you know, how we can. You know, it's awesome. I think first and foremost, we're investing in our business, right? We're investing in, obviously, product. We're investing in marketing. We're investing in our growth levers, international teams, Community Hubs. Community Hubs, you know, requires more CapEx. You know, we've been a digital business, and so that is an area that we're building out, and that is gonna require cash. But we think the return on that is gonna be far, far outweighing the investment.
And so, you know, and then I think, you know, because people say, "Well, you have all this cash, and you're generating cash, would you do, you know, from a capital structure perspective, a buyback or something of that nature?" And I think we're looking at that. We just announced our new CFO. We're evaluating a number of different options. We're being strategic and thoughtful around cash allocation, capital allocation, how we're investing in certain parts of the business, as well as ensuring that our shareholders, you know, also see that we're doing the right thing by them.
Well, Trina, is there anything we did not talk about that we should have talked about in the last minute here or so?
No, I think you covered it. This has been awesome. Thank you so much, Brian. Really-
Well, thank you.
... really great conversation.
Congrats on the ongoing success here and, you know, this improving dynamic within your business.
Thank you so much.
Thank you.
Thanks. Talk to you soon.