Okay, let's try again. Can you all hear me okay? Yes? Okay, excellent. Thank you. Oh, now I can hear it. There we go. Good morning, and welcome to another session of our Goldman Sachs Global Retailing conference. My name is Brooke Roach, and I cover the apparel brands and softlines sector here at Goldman, and I'm thrilled to introduce our next session with FIGS. Here joining me today is Trina Spear, the Co-founder and CEO of FIGS, Inc. Welcome, Trina. Thank you so much, Brooke. Thanks for having me. Trina, would you like to kick it off with a few opening remarks? Sure. Well, first off, it's great to see a lot of familiar faces. We just saw that On Running had a presentation here, and it looks like, you know, we're gonna outdo them today. So thank you for having me, and it's great to be here. I think, when we think about what's happening in the world, the economy is shifting, the landscape is evolving. We have AI, technology progressing, but the thing that never changes are the brands that you trust. And we look to be a global iconic brand over the long run, just like Goldman Sachs, actually. Goldman Sachs, to be the brand that Goldman is, it takes thinking big, taking risks, doing things differently, and that's what FIGS is all about. Really focused on the healthcare community, and that's what we look to do. So thank you so much for having me, Brooke. Great. Let's dive into a couple of current trends, given that there is a lot of focus on the crosscurrents in the macro today. Historically, the healthcare apparel sector has been very resilient. You've got structural drivers, tailwinds in employment, but the last few years have been fairly volatile. Can you talk about the trends that you're seeing in the category today, and are there any emerging trends that provide indicators on the health of the consumer as you navigate through the fall season? Sure. So I think it's a really interesting industry, right? Healthcare apparel. It's a $12 billion industry in the United States. It's about $80 billion globally, and it is resilient, and it's non-discretionary, right? Healthcare professionals need their uniform to go to work and do their job. It's seasonless, right? All year round, working in healthcare institutions, saving lives and helping patients and curing diseases. Those are the people that we serve, and what we saw is that, you know, healthcare professionals, they're, you know, prior to COVID, they were buying about 4-6 sets of scrubs per year. That number increased during COVID, right, to about 8-10 sets, and over the past few years, to your point, Brooke, we've been in a bit of a COVID overhang, right? Where people are buying more like, you know, one to three sets a year. And so we still feel like that, you know, that overhang is here, and we're well below that, call it, average four to six sets a year, and, we look to normalize, over time. I think some of the trends that we're seeing recently are good, positive indicators of, you know, whether it's repeat frequency, it's, some of, you know, open rate search volume. An interesting stat that I, mentioned recently was, you know, there's similar searches for FIGS, as there are for scrubs. So, you know, owning the category a little bit like Kleenex or Jacuzzi, right? The brand is the category. So super excited, and I think, you know, we are still in a challenging environment, right? Election year, a lot of uncertainty in the world, but we focus on what we can control, which starts with product and product innovation, coupled with incredible top-of-the-funnel marketing. That's really great color. Before we dive into some of those strategic initiatives that you have, let's quickly go through two questions that we're asking all companies at our conference this year. First, what are your expectations for the consumer environment in the second half of 2024 relative to your recent results? Do you expect things to be same, better, or worse? I gotta back out. You know, I think it's. We are being, you know, it's been incredible to see and encouraging to see the recent results, but I think at the same time, we're being cognizant of the environment, right? And we're being cautious around what's happening in the world, what's happening with consumers, in an election year, given the macro. And so, you know, that to say, like, I think once again, we are really encouraged by the strategy around product innovation, launching pinnacle products that really drive engagement, and coupling that with storytelling to bring our customers back over and over again, regardless of the environment. And kind of, you know, I know people are talking about Tale of Two Cities, right? Like, the best brands really are able to differentiate and continue to set themselves apart. We aim to be that brand, while others find it difficult to do so. The other question that we're asking all companies at our conference today is on value-seeking behavior, which is a trend that we've seen emerge with the consumer in a bigger way this year. Do you believe that the consumer behavior of looking for value is a cyclical or a secular trend? Do you think it's a function of macro, or is this permanent? You know, I think we're in a little bit of a different industry. Like, we serve healthcare professionals, right? They're RNs, PAs, dentists, dermatologists, gynecologists, students, and they make a variety of different incomes. Two-thirds of our customers make less than a hundred grand a year, and so our goal isn't about kind of trying to have a crystal ball and know exactly what the environment is. Our goal is to have affordable, accessible products at all times to serve our community. We have a wide assortment of products across our layering system. Our layering system is everything healthcare professionals are wearing to work, at work, from work, on shift, off shift, head to toe. It includes our scrubwear, our underscrubs, our outerwear, our compression socks. We have a footwear partnership with New Balance. All of those products, it's actually a pretty wide variety of products and price points, and so, you know, pinnacle products, limited edition products are a bit more expensive, but our core products, you know, it's $38 for a top, $48 for a pair of pants. Super affordable, super accessible, so that as a healthcare professional, you can go to work and do your job well. Let's talk a little bit about your market share, and it's something that you've gained notoriety as the brand of choice among healthcare professionals. How do you think about FIGS' current penetration in the U.S. market? Where do you see the biggest opportunity for incremental gains in the U.S. from here? Sure. So we started the company in 2013, so we're about eleven years old. We're a little baby. Most of the companies here are, like, twenty, thirty, forty years old, and so we're just getting started. You know, we have about a 5% market share within the U.S. We have less than 1% internationally, and so we're, you know, we're very early days on, and a long road ahead of us. There's about 140 million healthcare professionals around the world. We have 2.6 million active customers. And so, you know, our goal is to continue to bring more healthcare professionals into the FIGS family, engage them with our incredible products, and have them come back. We have a really replenishment-driven model. About 70% of our revenue is from repeat customers, which is a great dynamic. Obviously, it'll pay for people to come back. And so, you know, that's where we're focused. Are there any specific geographies or markets in the U.S. where you see bigger or greater opportunity for incremental customer count share? I mean, it's really everywhere. Like, even our most penetrated market, which is Los Angeles, it's where we started, it's where we're based, we have about 25, 20-25% penetration, right? And so even in our most penetrated market, there's just still so much runway. And then there's, you know, there's areas like the whole middle of the country, where healthcare professionals may not yet know about FIGS. Our last brand study, we had about a 22% unaided awareness, closer to 50-ish% aided awareness. So, you know, a lot of people don't yet know about us. We got to get there. And, you know, prior to FIGS, whether you were living in New York City, Mumbai, Kentucky, Paris, you had a pretty awful experience, right? We changed the game, right? Bringing comfort, technical fabrication, design, functionality, pocketing, all really important as a healthcare professional to go to work and do your job well. As we think about some of the constraints for gaining new customers, some of that has historically been fit, and you launched a plus-size product a couple of years ago, but fit has been on the agenda for this year as well. Can you talk us through what your plans are for your fit initiative this year and what that opportunity means for FIGS? Sure. I think, you know, for us, it's actually. We also, you know, as part of making a great product, fit was always really important, and we have the best fit in the industry. I think it's just a really exciting opportunity to ensure that we're always improving, we're always upgrading our fit, and we're keep making sure it's consistent. The consistency is key, right? Because unlike other fashion companies, and we don't even think of ourselves as a fashion company, we're more of a functional company. But when you think of it, right, you have new seasons and kind of out with the old season, in with the new. For us, because of the replenishment-driven nature of the product, it is your uniform. What you bought three months ago must be exactly what you buy today, must be exactly what you buy three months from now. So really standardizing our core blocks across the assortment, ensuring that people can get exactly what they need, and their exact fit is super important, whether you're an extra, extra small or a 6 XL. We do have that broad. That entire range, extra, extra small to 6 XL for women, tall lengths, regular length, petite. And so it's just about every body is different, and we are aimed to serve, and ensure that everybody - that FIGS is for everybody. As you roll that out, how are you managing inventory as you move through this transition? Yeah, I mean, I think, we have a plan for this, and we have plans around, you know, what we'll be moving through in terms of the old fit in different regions, and also ensuring that, you know, we have our donation program. So Threads for Threads, we donate scrubs around the world, and so, we'll continue to manage it. As you've seen, we've really been able to bring down our inventory balance over the last few years. We're really proud of our ability to do that in a very disciplined and thoughtful way. The inventory balance will continue to come down through the rest of this year, and we'll be in a much healthier position earlier next year, and so, we're going to just be, incredibly disciplined around it. As you know, Brooke, we have a really low SKU count, high volume business. We have this core portfolio of about 17 styles that make up the majority of our business, so we're able to be very strategic as it relates to inventory planning. One of the other growth opportunities that you have is your Teams business. Mm. Can you talk about how big that business is today, how large the market is, and the opportunity for growth, and how quickly you think that you can grow that business? Sure. We're really excited about the Teams business. I mean, this really kind of plays into what's happening in healthcare broadly, right? Concierge medicine is a huge growth driver, personalized medicine. Everyone is gonna have their medical records, if you don't already, on your phone, personalized care across profession and across the landscape, really, whether it's aesthetics, fertility, the veterinarian part of the world, urgent care, and the list goes on. And so concierge medicine overall is expected to double to about $15 billion by 2032. And our Teams business is kind of perfectly positioned to capitalize on that tailwind, as more and more institutions are looking to standardize and brand their Teams, and they're all kind of coming to FIGS to do that. That business is about mid-single digits of the total today. It grew 50%-ish last year, and so really excited to continue to build this business, especially given what's happening already within healthcare. On margins of that, what investments are needed, if any, to scale the Teams business, and how should we think about the margin profile of Teams? Yeah, the Teams business is more profitable than our e-commerce business. The Teams business, you know, on the gross margin front, it's a little bit lower because you get a bit of a discount because you're ordering hundreds, thousands of sets of scrubs, right, for your institution. On the selling line, we get a lot of benefit because shipping, you know, that volume is a lot less expensive than shipping, you know, call it two sets of scrubs. And then on the marketing front, it's all inbound today. And so we get a lot of benefit there. So, you know, the profitability profile is incredible. I think going forward, we were really looking to invest in building an outbound sales force. We've already started this process. It's an exciting opportunity. We want to invest behind the growth we're seeing, and look to bring on more multimillion-dollar accounts as the healthcare industry continues to evolve. One other area of new distribution opportunity is in Community Hubs and your stores, and you now have a store open in LA. There's one coming in Pennsylvania. No, we opened it. We opened Philly. Oh, Philly's open? Yes, Philly's open. Oh, I'm sorry, guys. Philly's open. I have not personally been to the Philly store just yet. Yes. We were just talking about that this morning. Can you talk about your expectations for those stores and the pace at which you think that you can open them over time? Sure. So we have our Century City store Community Hub in LA. We have our one in Rittenhouse Square in Philly, and what we've seen is incredibly encouraging. So 40% of our customers are new. You know, 80% of apparel sales are offline. So, you know, omni-channel is real. You have to be both online and offline. Having that experience where people can come in, feel and touch and experience the product, try it on, is really important, and we're really excited about what we see. In the Century Community Hub, we're doing about $1,800 a sq ft, and that's better than the best brands in the world. And so, you know, we're continuing to build out our strategy. We're gonna be very disciplined. We're gonna be really thoughtful and strategic about where we go, really finding markets where it has a high density of healthcare professionals like Philly, where we are underpenetrated, and that ratio is really important as we figure out where to go next. And, you know, it's exciting, though. I mean, I think we're up until the point we opened Century City, we were the largest digital-only brand in the world. So, you know, having a multi-channel, being where your customers are, is really important, and we're excited about the future of what Community Hub strategy will be. Now that we've spoken about the channels and the areas of new customer acquisition, let's talk about the product. Sure. Innovation has been a big focus for you this year, and you've spoken about some of the innovation that you're seeing, and the momentum in new product categories. Can you elaborate on the sales trend that you're seeing in core versus newness today? Sure. I mean, I think it's been exciting to see that our innovation engine is actually working faster than we thought, you know, and that's happening not just within scrubwear, but also in our non-scrubwear. Non-scrubwear now is about 20% of our business. And, you know, a few years ago, it was only as of a few years ago, where it was. We were a scrubwear business, and we were really one fabric, which was our FIONx proprietary fabric. And so it's been exciting to see how we've built out our scrubwear portfolio and built out all of these other categories to really serve our community and ensure that we are meeting the needs of our customer base. You know, our philosophy around this was that pinnacle and newness and innovation drives the core. We're starting to see that happen. And so, you know, these different areas of the business all kind of are synergistic and ladder up to fulfilling needs and ensuring that we are delivering what our customers want, when they want it. And because we are a uniform business, and we really view the entire portfolio as your uniform, you just can come to FIGS, get your under scrubs, your scrubs, your outerwear, so that you can go to work. And I think, we've been very, I think, intentional about diversifying our product portfolio and really ensuring that the innovation is not only getting people excited and people are kind of coming for that, they're also coming back more to replenish their core, which is the other important piece there. You spoke a little bit about new category expansion, and non-scrubs is now 20% plus of your business. Yeah. What are the most successful non-scrub categories for your business today, and how does that inform your view of future opportunity for category expansion? Sure, so you know, outerwear is probably the biggest within there, and it is the biggest within there. I think, you know, before FIGS, everyone was wearing Patagonia, which is a great company. They're private, so they're not here. You know, that's made to go hiking and rock climbing. That's not made to be worn indoors as a healthcare professional. They don't have pockets for your stethoscope and your alcohol swabs and your flushes and your keys and your money, and all the things that you need on a 12-hour, 16-hour shift as a healthcare professional. And so seeing the outerwear business, which was nothing a few years ago, grow in the way it's grown, has been really incredible to see. It's become part of that whole uniform layering system, right? Where you need. It's freezing in hospitals. You need your fleece, you need your sweater knit, you need your vest. On shift, these are on shift products. Second is under scrubs. So, you know, you kind of were wearing maybe a Gap cotton shirt, right? That's not technical, it's not antimicrobial, it's not liquid repellent, it's not functional and technical the way that our products are. So now you're wearing a FIGS Salta, that's what it's called, they're the best, underneath your scrub top, and it's, you know, that's probably the second biggest. We have a footwear partnership with New Balance, and so footwear is the other piece there. And so these are all. Even just take outerwear and under scrubs for a second. You know, these categories are growing in a way with very limited assortment. Very limited. And so that's what gets me excited, right? There's so much to build in terms of weight, in terms of different environments, different climates. Where are you working outside? You're outside on shift. We just did a campaign about Dr. Chloe, a veterinarian in South Africa, working with rhinos. The most badass woman ever. You gotta look up the campaign, it's great. We just did a huge campaign with Team USA. We outfitted Team USA's medical team for Olympics in Paris in 2024. No brand, no company in any country has ever done that, ever, right? Products for the medical team supporting the Olympians, next level. And so that was across. To your point about category, that was across category, right? All the outerwear pieces, scrub wear, under scrubs, compression socks, footwear, you know, scrub caps, and the list goes on. So it's exciting because it's still so early in how we're building these categories, even from a product architecture standpoint. You know, we categorize impact level. What are you doing on shift? What are you doing in your job? Low impact, medium impact, to high impact. If you were to take every category across that framework, I mean, you would. Less than 10% of the page would be filled out in terms of all the needs that healthcare professionals have, and how we can serve them in more ways. Would you ever consider expanding to non-healthcare apparel? Or maybe said another way, are there any limiting or gatekeeping factors that you consider before extending your business to a new category? I mean, there's a lot of gatekeeping factors, right? It has to serve a need. But I do think there's a lot of off shift that we've done incredibly well with. So how are you recovering after that 12-hour shift, right? How are you now getting geared up to get up at 7:00 A.M. the next morning, get to work, and do your job well? So that's early days, but there's a lot on the off shift front that we're working on, even within, you know, sweatshirts, sweatpants, and the list goes on. But I think, you know, there's... Like I said, these are people. Sometimes people think, "Oh, healthcare professionals have need this whole other world." They're people, they're working around the clock. They are just like me and you. They're watching reality TV, they're shopping at different stores. They want an experience just like what everyone else has in the world, and that's what FIGS is giving them. We're the only company that saw them as real people. We call them awesome humans. They're real people doing incredible work. And yes, it's about the product, but it's also about the brand, putting them on billboards, putting them in commercials, celebrating them the way that athletes and celebrities are celebrated. That's what this brand is about. And so that product has to level up, and the experience has to be there. Let's wrap up the conversation on innovation and some of the newness. Yeah ... with a discussion on margins, because sometimes the newness can come at a margin that is lower than your core. Sure. Can you talk a little bit about how big the gap is today, and your path to potential timing and cadencing of narrowing that gap as you scale those new product categories? Yeah, I mean, I think what we are excited about is that the pinnacle product, right, this newness that is at a bit of a lower margin, it drives the core, right? So as that continues to drive core, core is at a higher margin, and there's even more leverage as that core continues to grow, to have that margin over time, you know, improve. So that's point one. Second point is that, you know, just like we saw within FIONx scrubwear, we saw incredible margin curve over time as that volume increased, and back to us having really high volume, low SKU count, even in these non-scrubwear categories. As these newer categories build, we'll be able to see margin benefit over time. And so, you know, I do think we had, we have best-in-class growth margins, right? They were 74%, now they're 68%. Like, I think at the end of the day, like, we have strategically, structurally advantaged growth margins, right? And they are best in class. And our goal is to keep them that way. But at the same time, as we build the business and we have a more broadly diversified, healthy business across category, across channel, you know, that brings higher LTV, that has higher loyalty, that has lower CAC, all of these things accrue to a better bottom line, which is actually our goal. Our goal is to be the most profitable company ever over time, not necessarily just focused on gross margins. You've mentioned marketing a couple of times, and some of the new campaigns that you've embarked on this year, whether that is the Indestructibles or the Olympics. Yeah. How should we be thinking about the learnings from some of these new campaigns, and how that informs your view of marketing going forward? And how should we be thinking about the right run rate marketing spend as a% of sales for your business? Sure, so I think it's. You know, we've always talked about how every FIGS customer is a walking billboard, acquiring that next customer for us. 60% of our traffic is direct. People learn about the brand from a colleague, from someone they were in densely populated institutions, right? Everyone's like: "Oh, what did FIGS just launch? Oh, this is so great. What are you wearing? That looks awesome." And they come directly to us to purchase their scrubs. And as we hit tipping points within these healthcare institutions, we're able to really see CAC gains, right? And when I talk about CAC, I'm really talking about digital CAC. We're able to take those gains and put them into new markets. We're able to take those gains and invest in top of funnel. When I talk about top of funnel, I'm talking about TV, out of home. For those of you who saw our Head, Shoulders, Knees and Toes. Anybody? Head, Shoulders... Oh, okay, great. We got a few. Okay, that's our TV commercial as it's tied to Team USA. But, you know, doing that is a luxury, right? Doing that gives us the ability to really connect with a customer at the point of awareness, bring them through the journey to consideration, finally, to conversion. That journey is super valuable. Those are the highest LTV customers. They have the... They are the most loyal to the brand, and so that is why we are so passionate about pinnacle product with top-of-funnel marketing. Those two things coming together, that is the strategy. We are doubling down on it. You know, to your question around marketing as a% of sales, we've talked about this 15%-ish. We actually think, you know, that will be less than that over time. It because the CAC gains will outweigh the investment in top of funnel. But that's kind of how we see the world playing out. That's really helpful color. Let's speak about international, because that's an emerging growth story for FIGS, and you have a presence in over 30 countries today. Yeah. How should we be thinking about the markets that you're most focused in scaling? Is that Canada, UK, Australia, or somewhere else? And then how do we think about the localization that is necessary in your investments there to grow the brand sustainably over time? Yeah. So Canada, UK, Australia, those three markets have been... Those are the earliest ones we've launched. We've localized those markets. We've invested in digital and the brand awareness piece. I think the brand building and scaling, to your point, is the next piece there. Europe, more generally, has a big opportunity as it relates to the Teams business, because more, a higher percent of that market is actually B2B, right? Where people are buying on behalf of their institution or their private practice or their clinic, and so that really is overlaying kind of with our Teams business, which is exciting as we've built out that technology and made it easier for institutions to purchase FIGS. And then newer markets like Mexico, Philippines, they're performing incredibly well. And the beauty of what we do is that every market is profitable. You know, we are a digital company, and so we're able to kind of really see that demand, build the market in a really strategic way without making a ton of investment. And then, as we continue to build that market and localize currency, payment solutions, marketing, even some of our products, how we merchandise that on the site, as we do that, we can invest more as we see that working. That's a very different way to build a brand internationally than was true 10, 15 years ago, right? And so seeing that. We could even go take the whole world, where the traffic is coming from, and decide to launch based on the trends that we're seeing. That's a huge advantage, given the presence of the brand that we already have. One of the unlocks for your international business is the new distribution center, and you've been making some big investments in supply chain over the course of the last year or so. Can you elaborate on those investments? What is changing in your supply chain, and what does that enable for your business? Sure. I actually have a video on my phone I've been showing everyone, so if anyone wants to see our distribution center after, I'll play it for everyone. But, it's been really exciting, right? We've invested in our supply chain. We've invested in our distribution automation, ensuring that, you know, you don't have... There's no people, right? There's no people in our distribution center. It's all automated. It's all robotic. It enables us to be, you know, have a more reliable experience for our customers. That's what it's all about. How do we get our uniforms to our community faster, more reliably, and with a better experience? From a supply chain, from the production angle, it's been, you know, a huge as we diversify categories, we've also diversified our supply chain. Our goal is to work with the best manufacturers for the thing, for the product that we're making, and so really investing behind that and ensuring that we are working with the best partners. I think it's a real testament. You know, bringing our inventory balance, we were at $190 million a couple of years ago. Bringing that down to where it's at now in a pretty healthy position, we'll be in a very healthy position early next year, is a testament to the decade-long relationships we've had with our suppliers. As we continue to build that, you know, we're focused on continuing to have the best relationships with our manufacturers, continuing to also build out another distribution center in Canada next year. So we'll give more color about that, but all with the goal of making our experience the best it can be. As we cycle through some of these larger investments in your supply chain and distribution centers, how should investors think about the right selling expense rate as a% of sales on a medium or long-term basis? Yeah, I mean, when you look at this, the selling expense this year, that 200-250-ish basis points increase was really due to the transitory expenses associated with building our new distribution center in Phoenix. And so that will fall off. I think on some areas, you know, that investment as we scale, will continue to get leverage from that. But if you were to just kind of take last year's selling, we'll be around that next year. Excellent. Very helpful. On gross margins earlier, you talked about the strength and the structural benefits that you have as a branded DTC business- Yeah ... with your high gross margin. There has been a little bit of mixed shift pressure this year, and as recently, it's been as high as 72%. Is a low 70s margin achievable in the near to medium term? I mean, the 78% gross margin, I think, you know, we've talked about that. I think that was very much still a function of when we were a scrubs, scrub majority, vast majority, I mean, like 90% plus scrubwear, 90% plus FIONx company. Not to say that we can't get back there, but our goal isn't to just focus on that. Our goal, as I said earlier, is actually to build the bottom line. And so as we have great product, we bring customers back more. We're not paying to acquire customers. We're not paying to reengage our customers. And it's a healthier business, right? It's a healthier business to have a broadly diversified by category, a broadly diversified by channel business, and so that's really where we're focused. There is opportunity within our costing and within our pricing. I mentioned this on the last call. Like, you know, a lot of that, we are focused on this innovation, right? Getting it right, new fabrications, new categories, building them out. We haven't spent a ton of time on the opportunity side as it relates to costing and pricing. I'm very happy our new CFO is here, Sarah Oughtred. So she's excited to dig in here, too, but it's all opportunity. On costing and pricing, the other side of that is promotions, and there's been a lot of focus on promotions in the industry. We're asking all companies at our conference today whether or not you expect your company to be more or less promotional this holiday season versus last year, and how does that compare to your expectation for the industry? Sure. I mean, our promotional cadence in twenty twenty-four is similar to twenty twenty-three. We expect that to stay true through the rest of this year. I think, you know, we are still working through that inventory, and so having... You know, we believe our promotions isn't really about promotions. We use them to really celebrate our community. Brooke, you know about Nurses Week. It's our biggest week. It's our Super Bowl. It's really about celebrating nurses and yes, you can get a little bit of a discount. We have kept our discount promotional rate relatively stable. It's, you know, I would say, best in the industry. It's one of the best in the industry, and so, you know, really look to keep being disciplined around our promotional rate, being strategic and thoughtful around when we engage our community in that way, and yeah. So putting all of this together, you've got momentum on the top line, you've got new innovation, you've got marketing, you've got some opportunity in selling expense. As we think about the adjusted EBITDA margin profitability rate of your company- Mm-hmm. How should we be thinking about bridging from the about 10% margin this year back to the high teens level that you've outlined? Sure. I mean, I think at the end of the day, like, we are focused on the long run, right? We have $270 million of cash in the bank. We have no debt. We just announced a $50 million buyback. We believe we are cash flow generative enough, plus the cash balance we have, to not only do the buyback but invest in our future, invest in our growth levers, invest in the business. And so, you know, we do believe 2023 EBITDA margin is a trough. But we also are focused on building the business in the right way, the hard way, for the long run. Our next closest competitor is a fraction of our size. This is our game to execute, and we will continue to execute and continue to deliver, and invest behind what we see as working, and that is our goal, to take big risks, to think as big as we can, and continue to change the industry. Great. And with that, I'm afraid we are out of time. Thank you, Trina, and thank you for all, everyone in the audience for joining us today. Thank you, Brooke.