Going to get started. We've got Lindsay Drucker Mann, ODDITY's Chief Financial Officer, with us today. So, Lindsay, thanks for joining us.
Thank you.
Our first time on stage, so that's awesome. 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 beauty or tech companies?
Yeah. 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, of 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 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, comes from our technology platform, which is fully online, fully direct-to-consumer, no sales to third-party marketplaces, retailers, wholesalers.
We have two brands now going on three on our platform. The first is Il Makiage. That's the first business that we launched in the U.S. in 2018. Last year, it crossed $500 million in 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 from Il Makiage will be skin. Our second brand is SpoiledChild, which we launched three years ago. That's a holistic wellness brand. This year, it'll cross $200 million in 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. That platform model itself and our direct-to-consumer online model is very different from industry status quo. In addition, two 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. 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, as you and I were just talking about it, 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? But what is it that's making ODDITY not seem to be exposed to the broader weakness in the consumer environment?
Yeah. We haven't seen any consumer weakness. We obviously hear about it from our competitors and other industry participants. 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 in our Q2 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. I know we'll talk a bit more about it, but two new brands that'll be in the market, new geographies, new improvements in our technology product, 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 two most powerful and disruptive growth drivers within the categories. That's number one, the move online. Today, online is roughly 25% of our category. We think it'll 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 product, and we only put products out there that are very high performers, that beat top performers in their 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, 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 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 where the fish are 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.
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, 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 talk about multiple growth pillars, namely scaling two brands, the two 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?
Yeah. 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 purposefully paced our growth. We could be growing much faster than the 20%, and we've purposely dialed back our growth levers so that you and I can sit on the stage next year and I can talk to you about our high conviction in achieving 20% margins. 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.
So we're always going into any year thinking about 2026 and 2027 and even in 2028 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 disposal to use 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 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 2025 would be a year when we took it to the next level. We had been building infrastructure in international and doing a lot more, what I would call 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.
Okay. I just want to say one more thing.
Of course, of course.
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 stocked on the shelf in Sephora, but you would like to remove those this year and bring them back next year, that's a disastrous type of decision.
We have a lot more flexibility with how we run the model, and we use that to our advantage.
Okay.
The decision process for some of those resource allocations, does that happen, well, I guess you just said 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 it's repeat business?
Yeah.
But again, on that sort of strategic decision on resource allocation, or is it a lot more dynamic than I'm describing?
Yeah. I mean, so right now, for example, we are past our big acquisition season. 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.
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, in theory, couldn't growth be above 20% in any given quarter? Separate from your decision to dial back, we'll talk about. But if repeat's stronger, 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 going. 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. A year ago, the language used was we're slow playing it because there was just so much opportunity. Can you just walk us through the decision to really go after international in 2025? Why was this the time, and particularly when you had so many other things going on with Brand 3 and Brand 4, well, I guess Brand 3 this year, and the U.S. still so strong? 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 at full force. As you know, in 2024, 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 roadmap, 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, it was just time. Like, the business was ready. It was the right time to put the strategic focus. It was a 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 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 product, 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. 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 tests 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 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 seen that the consumer responds similarly to what we know in our home market. We know that the backdrop is there.
I'm at a consumer staples conference. 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. We know these are global brands. So, everything we saw leading up to this gave us a lot of conviction. This year proved the point out even more so, and it'll continue to be a nice driver for us.
Okay. Great. And when you launch into a new market, you mentioned full monetization. Do you start with a full product lineup or, for example, with Il Makiage? Is it emphasize color and then layer in skin over time?
Yeah. 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 and markets work 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 products 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 three and four. So, lots to talk about. You're, I guess, weeks away from now a formal launch of brand three. So, let's discuss a little more about what that's all about.
Yep. Oh, okay.
Yeah, yeah, yeah, and I can just lay it out and make it a two-parter. Just how much the product offering is OTC versus prescription? Because I think that's something that maybe I could use a little bit of clarity on, and how much the degree with the ingredients are ODDITY Labs?
Yeah. 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. We talk about how around half of our users suffer from one or some combination of acne, eczema, hyperpigmentation. These 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 prescription, now that we have that ability in place, we can expand into other areas, and we think there's lots of other areas that we're spending time on, areas to expand and grow. Dermatology is obviously the 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, not much has changed.
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 principles, so first of all, we've built an entirely new set of vision tools to serve as an assessment of your acne 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, in frustration, and level of hand-holding 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, I'm just so excited for 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, 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.
I knew that something like 50 million Americans suffer from acne. And when I say suffer, I mean it really affects their self-confidence. Similarly, hyperpigmentation, eczema, 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, great starting point for us.
Okay. Maybe we can talk a little bit about ODDITY Labs. Sort of, what's different?
I didn't hear your prescription question. Sorry.
Thank you.
So, the customers will have access to both prescription and over-the-counter non-prescription 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 we'll be introducing within the Brand 3 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 teased out going beyond dermatology. So, also then that means beyond beauty or beauty-adjacent, right? Because I think of dermatology as beauty-adjacent.
Yeah. Other medical domains.
Other medical domains.
Yeah. Still would satisfy wellness concerns. I mean, these are all integrated. It's just our system is set up this way where if you can go to a drugstore, you can go to a doctor for certain solutions. You go to a drugstore for acne is a great example. But oftentimes, we believe we can create a platform that actually will be better than both options.
Okay. Sticking with ODDITY Labs, just a little bit maybe on how this is different from just being internal R&D. What is it that is ODDITY Labs? I guess you've changed leadership there also. You can 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 Oran sometimes speaks to, we don't have to move faster, we've got plenty, but at the same time, he says it's a race. How do I put those two together?
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, the most commonly used ingredients today, whether it's retinol or Rogaine, 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, 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.
Pharma has not, to the 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. 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. Today, people are all kind of using the same ingredients.
Our goal with ODDITY Labs and what we believe is truly possible is taking this amazing science, the same things 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 in products that, again, we don't think the industry has ever seen. 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 gives us a big advantage. In terms of where the team is, when we acquired Revela two years ago, we bought an unbelievable entrance into Boston biotech, understanding the science. The team there had 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 so you don't wake up in two 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'll continue.
Okay. Let's also talk a bit about competitive engine from a technology standpoint. So, other companies are now making big investments in AI, machine learning. We've heard about it every single presentation, the flavors by who's talking. Do you see anyone out there that's trying to replicate or build something similar to the ODDITY model? How difficult would it be at this point with you guys out there now public as 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 everybody knows today that online is a very important and rapidly growing channel. Rather than moving to DTC, we 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'll 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.
As a wholesale business, without that true customer data, very difficult to commercialize. In 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, we'd 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 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? Here 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 very difficult for them to continue profitably to scale, but there are many of them, and that sort of eats, I think that's sort of eating at the sort of bigger incumbents. One of the challenges perhaps that they're facing, but to actually scale the way that we have, we haven't seen anything.
Okay. Let's talk about capital allocation. Because you are the CFO.
Yeah.
So, you've built up a lot of cash on your balance sheet. So, maybe you could just remind me of priorities of uses for cash?
Number one is reinvesting in the business. 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 Spoiled Child, less than $30 million upfront for us to launch it. And now 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, 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 acquihire earlier this year with Phionic. There continue to be opportunities like that that we're looking for.
I wouldn't describe those as transformational M&A, but really capability building. 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. Our primary focus is product. We have to have outstanding product that would be something that drives a lot of LTV and satisfaction. In general, the criteria is something that would either meaningfully accelerate our timeline would be very difficult for us to build in-house. Again, we'd love to do it, but there's nothing that we see right now. There's no urgency.
We did a convertible, as you mentioned earlier this year, super efficient capital for us, zero coupon, and not diluted until at the time the stock price doubled. 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 realize we didn't even talk about brand four, right? So, I was looking at my list of questions. I was going to ask you about five and six, but I didn't ask you about four yet.
Yeah. 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.
Yeah.
Okay. Are you working on five and six, or do you?
We have. Yes. Future brands are in the pipeline, in development, and exciting opportunities.
Okay. And when you think about acquiring potentially a brand, that was interesting because you brought up product. And so, one thing, the 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 acquisition through the tech engine. So, it was one of the things that's maybe different about the way you look at 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.
Yeah. I mean, 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, and we study satisfaction religiously, in fact, I know one of the things we were talking about is how do you know that Brand 3 is working? What do 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 seven more pages of questions.
Sorry.
I have a minute. 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, frankly. 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 pattern matching and muscle memory around investors who've seen a lot of consumer companies, companies that talk about tech but it doesn't mean anything, and never seen a company like ours. And anytime 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'd still hear to some degree, is, well, a beauty brand is normally $200 million, $300 million, $500, that's where you cap. And then every single year we push those boundaries. I think people might are not motivated to do the work in some regard and understand it's not the right parallel because our distribution channel is totally different.
We are unique as a 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 two 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. When 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-plus 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 five-year models and how unique ODDITY is in your ability to underwrite 20% compounded growth over the next five 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.