Good morning and welcome to ODDITY's Second Quarter 2025 Earnings Conference Call. Today's call is being recorded, and we have allocated time for prepared remarks and Q&A. At this time, I'd like to turn the conference over to Maria Lycouris, Head of Investor Relations for ODDITY. Thank you. You may begin. Thank you, operator. I'm joined by Oran Holtzman, ODDITY 's Co-Founder and CEO, and Lindsay Drucker Mann, ODDITY 's Global CFO. Niv Price, ODDITY 's CTO, will also be available for the question and answer session. As a reminder, management's remarks on this call that do not concern past events are forward-looking statements. These may include predictions, expectations, or estimates, including statements about ODDITY 's business strategy, market opportunity, future financial performance, and potential long-term success. Forward-looking statements involve risks and uncertainties, and actual results could differ materially due to a variety of factors. These factors are described under forward-looking statements in our earnings press release issued yesterday and in our most recent annual report on Form 20-F filed with the Securities and Exchange Commission on February 25th, 2025. We do not undertake any obligation to update forward-looking statements, which speak only as of today. Finally, during this call, we will discuss certain non-GAAP financial measures, which we believe are useful supplemental measures for understanding our business. Additional information about these non-GAAP financial measures, including their definitions, is included in our earnings press release, which we issued yesterday. I'll now hand the call over to Oran. Thanks, everyone, for joining us today. ODDITY's momentum in 2025 continues, with another strong result this quarter and great progress on our long-term growth initiatives. Our financial performance year to date is another proof point of our success. For the first half of 2025, we grew revenue 26% to $509 million, generated adjusted EBITDA of $122 million, and free cash flow of $99 million. This is more EBITDA and more free cash flow in the first half of the year than we delivered for the entire full year of 2023, the year of our IPO. In Q2, we once again beat our financial targets on revenue, profit, and earnings per share, as we have every quarter for the ninth quarter since our IPO. We have ambitions at ODDITY to become one of the biggest beauty companies in the world to lead this huge, profitable, and underserved market. We are moving at high speed towards this goal. In just seven years since launching our first beauty brand in the U.S., ODDITY has transformed into a platform of soon-to-be three brands, spanning four categories and six closed markets. We have gone from pure makeup to then skin and hair, and now offering medical-grade prescriptions and OTC products with our upcoming launch of Brand 3. Just as we unlocked beauty online, we are now turning our sights to healthcare, another huge market where the consumer is unhappy and the opportunity is massive. I will share more on our plans for Brand 3 in a moment. Every year, we push our teams to innovate, to expand our capabilities, and grow the reach of our business. You can see, based on the results, that we are doing a good job so far. It starts with the fact that we operate in a healthy, attractive market, huge in size, where technology can drive big improvements for consumers and where the unit economics are strong. It continues to our deliberate focus on the most attractive and durable vectors of growth. First, the expansion of online, which we expect will grow to be the largest channel in our industry. The investments we made years ago in data and technology allow us to be a leading direct-to-consumer company in beauty today. We continue to invest in technology to strengthen our future. Second, consumer demand for high-efficacy products. On that front, we are making big investments in pharma-grade technology at ODDITY Labs to discover breakthrough molecules and delivery systems. Beyond the sheer magnitude of our growth this year is the quality of that growth. It comes alongside strong profitability and cash flow. It's fueled by each of our growth pillars. This includes double-digit online growth in both IL MAKIAGE and SpoiledChild, generating growth both in the U.S. and international, and scaling our skin portfolio, which remains on track to approach 40% of IL MAKIAGE revenue this year. These drivers, taken all together, allow us to sustain market share gains and outperform our competitors. The excellent first-half financial performance we delivered this year sets the stage for a strong finish to 2025. As we have discussed, the second half of the year is highly driven by our large backlog of repeats, where we have good visibility. Therefore, it is customary for us at this time of the year, our teams have pivoted their focus into 2026, where once again preparing, testing, and iterating our incremental growth drivers for another strong year. While many of our teams walk out of 2026, the biggest focus for me and my sister are long-term initiatives that will allow us to continue compounding for the decades to come. This includes investments in technology, new brands, and ODDITY Labs. Let's dive deeper into our multi-year growth drivers. The first is growing our existing brands. IL MAKIAGE remains on track to reach $1 billion revenue in 2028. International continues to be a highlight for us as we put increased focus on scaling this big opportunity, even as we continue to grow in the U.S. International represented 15% of ODDITY business in 2024, driven by IL MAKIAGE, but for our competitors, it is closer to 70% of their business. In addition, we continue to win with IL MAKIAGE skin, which, as I mentioned, is expected to approach 40% of IL MAKIAGE revenue this year, with more growth ahead. SpoiledChild is also having a great year so far in 2025, with more runway ahead. The brand remains on track to cross $200 million of revenue this year after launching only three years ago in 2022. Our second key growth driver is new brand launches, and we are on schedule to launch Brand 3 this year and Brand 4 next year. Brand 3 will mark our first entrance into the medical-grade dermatology space, starting in dermatology and giving our users access to OTC and prescription products. This unlocks an entirely new market for ODDITY. The third growth driver is ODDITY Labs, where we are working to create the world's highest efficacy products by bringing real science at high scale to our industry and discover game-changing molecules, ingredients, and delivery systems. We continue to make progress building the team, the processes, and the partnerships to achieve our goals. We have some proprietary molecules in development for Brand 3 and Brand 4 for near-term rollout, while we are developing molecules and delivery systems for the long term with big potential. Turning now to more details on Brand 3, where we remain on track for our formal launch in Q4 of this year. Just as we use technology and direct-to-consumer models to transform beauty, we are turning our sights with Brand 3 on healthcare. Our goal is to help users solve their medical problems with minimal hassle and treatment iterations. Diagnosis, treatment matching, and tracking all online without going to a doctor's office and pharmacy. We are starting with dermatology and planning new expansion categories for the future. Dermatology is an attractive starting point for us. First, it's large with huge reach. Around 50 million Americans are impacted by acne, around 30 million from eczema. These consumers are unhappy and underserved with attractive potential LTVs. Many of these consumers are already in our user base, which makes it a natural place for us to start. Around 50% of our 60 million-plus users report suffering from skin issues like acne, eczema, and dark spots. Second, dermatology is an area with market failure that we believe our technology can fix. Our data shows that consumers are unhappy with current solutions. Drugstores offer generalized low-efficacy products that don't solve their issues. Dermatologists are tough to access, high friction experience. It costs $300 for a dermatologist visit before even paying for the treatment itself. The entire process is inconvenient. Going to dermatologists takes two hours of a person's time on average. Over two-thirds of Americans' counties don't have a practicing dermatologist at all. Online is a huge opportunity, yet no one has done it in the right way in our view. We are taking on the category with an online model and an entirely new playbook. When determining our strategy, we always start from the first principles on how to win the category rather than copying others. Our direct relationship with consumers gives us better understanding into the problems they face and an edge in finding solutions. As one example, we are investing in personalization to make it a big differentiator between us and our competitors. I will walk you through how it comes together in the acne category. It starts with the product offering itself. Each consumer has unique problems and preferences. Some have mild acne, others struggle with inflammatory papules and pustules, deep cystic acne, hormonal breakouts, or persistent truncal acne on their chest or back. Many of our competitors get this wrong and offer most customers the same treatment. By contrast, we have 20-plus user cohorts with unique treatment recommendations. This customized offering shows a 50% improvement in the amount of satisfied testers compared to tretinoin alone based on internal work we've done. Next is our online experience, where we pair advanced computer vision technology with doctor-developed protocols to deliver highly efficacious tailored treatments. Finally, in coaching to ensure high compliance through our mobile progress tracking app, users stay consistently supported and on track with personalized guidance, photo-based progress monitoring, and dynamic treatment adjustments tailored to their evolving needs. Overall, we are introducing innovation and access that we believe dermatology hasn't seen in decades. It is a huge benefit to consumers, and we believe it will transform the category. We will have more to report on Brand 3 after we officially launch later this year. Before handing over to Lindsay, I want to take a moment to reflect on our three-year anniversary as a public company. We are proud of our long-term partnerships we have made with investors since our IPO. They are built on the trust that comes with consistently executing our plans no matter the market backdrop. As the Founder, CEO, and the largest shareholder of the company, the single most important thing for me is delivering on our promises to our shareholders. With that, I will turn it over to Lindsay. Thanks, Oran. Let's turn to our second quarter results, which I'll refer to on an adjusted basis. You can find the full reconciliation to GAAP in our press release. Q2 was another strong quarter for us, capping off a great first half of the year, which is our most critical moment for user acquisition. These results set us up for another record-breaking year in 2025. We grew net revenue by 25% in the second quarter to $241 million. This exceeded our guidance for revenue growth of between 22% and 24%. The strength was driven by double-digit online growth at both IL MAKIAGE and SpoiledChild. Net revenue growth was driven by an increase in orders, while average order value was down around 1%. Average order value was impacted by mix, including faster growth in international markets and an increase in the mix of repeat sales, both of which carry lower AOV. A bit more color on international. As Oran mentioned, our sales outside the U.S. represented around 15% of ODDITY Tech Ltd.'s 2024 net revenue. This is driven by IL MAKIAGE, where we have operations in the UK, Germany, Canada, Australia, and Israel. We also conduct tests in prospective new countries, and the revenue from these test markets flows through our P&L. On our Q4 2024 call, we discussed our plans to increase focus on IL MAKIAGE International. This has meant greater prioritization from our teams as well as increased acquisition spend. The strategic rationale for our increased focus is straightforward. International is a meaningful revenue opportunity for us with great unit economics and a key driver in building IL MAKIAGE into a billion-dollar revenue brand. The demand drivers for beauty online are similar overseas to what we see in the U.S. market today. Our technology platform works well in these countries. In fact, for markets like the UK and Australia, where we're already operating, we believe IL MAKIAGE is already the number one or number two largest online beauty brand. We can see from incumbents that there is a huge potential for us. As Oran mentioned, they generate around 70% of revenue internationally versus our 15%. Results from our international push have been very strong, both in existing markets and prospective markets like France. More from us in international to come. Back in the U.S., IL MAKIAGE remains strong, continues to grow, and we expect more growth in the future. Moving down the P&L, gross margin of 72.3% expanded 10 basis points year over year and exceeded our guidance of 70.5%. The delta versus our outlook was driven in part by better mix. We did see some initial flow-through of tariffs this quarter, which, as expected, were small. Based on the information we have today, we continue to expect that tariffs will be less than 100 basis point headwind to our gross margin this year and will be a similarly manageable headwind in 2026. We delivered an adjusted EBITDA of $70 million in the quarter, above our guidance of $65 million- $68 million. Adjusted EBITDA margin of 28.8% compressed by around 350 basis points, driven by planned growth investments. We remain focused on reinvesting in our business to support our long-term growth initiatives, including Brand 3, Brand 4, ODDITY Labs, and our technology innovation. We delivered adjusted diluted earnings per share of $0.92 compared to our guidance of between $0.85 and $0.89. Our adjusted EBITDA and EPS exclude approximately $10 million of share-based compensation. We continue to deliver very strong free cash flow and free cash conversion, a clear reflection of the strength and quality of our business model. We generated $99 million of free cash flow in the first six months of 2025, converting more than 80% of our adjusted EBITDA into free cash. During the quarter, we issued our first-ever convert as an exchangeable note through a U.S. subsidiary. The transaction was upsized on strong demand to $600 million, inclusive of the green shoe. The note is zero coupon with a five-year maturity, and we purchased a cap call at a cost of 10.5% of the offering size that limits dilution until the stock price approximately doubles. This offering allowed us to significantly increase our cash position, and we finished the quarter with $815 million of cash, cash equivalents, and investments on our balance sheet, with an additional $200 million available on our undrawn credit facilities. Our capital allocation strategy continues to be patient and opportunistic. As a reminder, our capital priorities are number one, reinvesting in the business, number two, M&A, and number three, opportunistic buybacks. On that front, we have $103 million remaining on our buyback authorization with no share repurchases year to date. Turning to our outlook for 2025, with our strong first half behind us and the high visibility we have to our backlog of repeat sales for the rest of 2025, we are on track for another outstanding year, better than our long-term algorithm of 20% revenue growth with 20% adjusted EBITDA margin. We now expect full-year 2025 net revenue will be between $799 million and $804 million, representing around 23% to 24% year-over-year growth. We expect gross margin will be 71%, which includes the full impact of tariffs expected in 2025 based on the information we have today. Adjusted EBITDA is expected to be between $160 million and $162 million, and we expect adjusted diluted EPS of between $2.06 and $2.09, assuming no share buybacks in 2025. For Brand 3, we're focused on a successful launch and are on track to hit our Q4 official timing. As a reminder, there is no revenue contribution from Brand 3 baked into our 2025 outlook, and we are not reliant on the brand to achieve our revenue objectives this year or next year for that matter. Turning to 2026, it's too early to issue formal guidance at this stage. Based on what we know today, we expect 2026 financial performance will be in line with our long-term earnings algorithm of 20% revenue growth with a 20% adjusted EBITDA margin. A note for your models, we plan to front-load our investments in the first half of 2026, which could equate to a 700 basis point drag on first-half EBITDA margin next year, with most of the impact weighted to the first quarter. This planned spending should be offset by a margin benefit from lower relative spending in the second half of the year. All of this results in neutral impact to adjusted EBITDA margin in 2026, which again is expected to land at 20%, consistent with our long-term algorithm. Turning to the third quarter outlook, we're off to a good start with momentum following through from the second quarter. We expect year-over-year net revenue growth in the quarter to be between 21% and 23%. You can find more details on our Q3 outlook in our press release. With that, I'll turn the call back to the operator for questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the number one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the number two. If you are using a speaker phone, please lift the handset before pressing any keys. Please note that each person is only limited to one question and one follow-up. One moment, please, for our first question. Our first question comes from Youssef Houssaini Squali of Truist Securities. Please go ahead. Great. Thank you, guys, and congrats on that solid quarter. Maybe just at a high level, on the gross margin for Q3, Lindsay, we came in slightly below consensus expectations. Can you maybe unpack that a little bit? What's driving the sequential compression there? Is it volume, mix, investment associated with Brand 3, et cetera? Just to clarify, in your prepared remarks, I think you said something to the effect that the 20% you believe you can grow 20% next year even without any contribution from Brand 3. Can you just confirm that? Thank you so much. Yeah. Thanks for the question, Youssef. So on gross margin, as you know, this is not a metric that our teams manage to. They manage to DC margin, which is contribution margin. It's gross margin after media spend. We have a pretty decent range of gross margin profiles across products that the teams are selling, which they're not managing to. They're only managing the contribution. As a result, when we issue guidance, we do it in such a way that we give the teams a lot of flexibility to go after whatever it is that makes the right sense from an LTV perspective. We've also, as you know, since you've been covering us since our IPO, over-delivered on that metric consistently every quarter as a result of wanting to embed enough conservatism to give the teams flexibility and not be in a position to disappoint the street. That being said, we do have a little bit of seasonality in our gross margin in the back half of the year. We're much more of a repeat business, as you know, that tends to have a bit lower gross margin profile. Also, because the revenue dollars themselves are smaller in Q3 and Q4, we don't get as much leverage on the fixed part of our COGs. Sequentially, you do see a little bit of that in the back half. There's nothing else to make of it. From a business perspective, in Q2, gross margin behavior was flattish year over year. We had some puts and takes. We had some higher supply chain expenses that were offset by lower supply chain expenses to end up with a pretty flattish outcome that we were happy with as it exceeded our guidance for the quarter. The next question was on Brand 3 contribution. That's correct. We don't need Brand 3 for our 2025 outlook, and we don't need it for our 2026 outlook. We're obviously doing everything in our control to make sure Brand 3 is an unbelievable success, and we believe that it will be. We have plenty of growth remaining in both IL MAKIAGE and SpoiledChild. IL MAKIAGE is still on track to achieve $1 billion of revenue in 2028, as Oran mentioned in his remarks. SpoiledChild is having an unbelievable year as well. That'll cross $200 million of revenue this year. We don't need our new brands because we have a lot of growth left in our existing brands. Anything that we deliver is incremental. That being said, our commitment is 20% revenue growth and 20% adjusted EBITDA margin. If we got more from Brand 3, we wouldn't be changing our guidance. Got it. Okay, thank you. That's helpful. Thank you so much. Next comes from Lauren Rae Lieberman of Barclays Bank PLC. Please go ahead. Good morning. Two questions. One was just to follow up, Lindsay, on the end of your answer to that last question that you wouldn't up your guidance or commitment that Brand 3 comes through strongly and will be incremental. Should we take that as to mean that you'll kind of pull back and constrain the growth on IL MAKIAGE and SpoiledChild to try to manage the business in 2026 and beyond to something as close to that 20% as possible? Because I know that's, you know, to some extent, the way Oran has talked about the business is, you know, we want long-term, predictable, very strong growth. Some of that is about managing the pace of growth. I just wanted to understand how to think about that for 2026 and beyond as Brand 3 comes in as incremental. The other thing, which is a shorter term, I think previously you talked about a soft launch for Brand 3 in the third quarter, and now it's just, you know, full committed launch in Q4. Is there any soft launch activity in Q3? If that's a shift in the launch plan, how come? Thanks. Yeah. I'll take it, Lindsay, and then if you have something to do. First of all, regarding Brand 3, the reason that we say it's not baked in, it's already baked in 2026 is that even if Brand 3 is as successful as SpoiledChild, by the way, it was the biggest, the best launch of all time based on our knowledge to see $25 million, and it's not material. Therefore, we didn't take it into account when building our next-year algorithm. It doesn't mean that we are not bullish. We are very bullish on Brand 3. We are working with it for the past almost four years. As for a soft launch, soft launch for us, it's a lot of trial runs at smaller scale. Smaller acquisition spend to drive some traffic for testing. It's a way for us to identify issues that need to be solved and do a lot of expectations. Therefore, we will start doing some tests in Q3. Official launch is where we begin spending real dollars both on brand and user acquisition. We are planning to make a big push in Q4 and in Q1 next year. It means more investments, and this is part of the reason that Lindsay was referring to in H1 next year around margin. Hey, Lauren. Just to follow up on the final part of one of your questions, which was about, will you constrain? The answer is that, yes, we constrain all the time. We have the ability to grow faster than the actual numbers that we deliver. Our approach is to make sure that every single year we can compound at 20% revenue growth with 20% adjusted EBITDA margins for many, many years to come, as opposed to pulling any of that growth forward when we don't need it. The right way to think about your models as you build in the out year is that we will have many, many levers of growth. We'll consistently deliver on that algorithm and you can feel confident in our ability to sustain that growth and compound in the future. Great. Thanks so much. Thank you. Our next question comes from Anna Jeanne Lizzul of BofA Securities. Please go ahead. Hi. Good morning, and thank you so much for the question. I was wondering if you could just elaborate a bit more on your investment in the business here with the launch of Brand 3 later this year and Brand 4 next year. When do you expect we'll start seeing some returns here on just the investments with those launches? Thank you. Sure. Lindsay, I'll start. We continue to invest a lot of our margin dollars in the future. Going back to the previous question, there is no reason in my view to deliver higher margin than 20%, especially when we believe those investments could be massive unlocks for the business performance and product growth in the future. When we think about investments, there are mainly three pillars. Number one is new brands, Brand 3, Brand 4. Each has its own team. Many years already spending a lot of money and a lot of time on building those brands. Number two is ODDITY Labs, which we continue to build. We have around 70 scientists there in Boston. We continue to invest a lot in infrastructure and building this machine. Lastly, it's technology. Continue to be the largest team in the company. We acquired a small company this year. We expand the team, and we believe this is the right thing to do. As for what about the future? In my point of view, we invested $25 million or $20 million in SpoiledChild, and today, three years later, it's $200 million of revenue and very, very healthy margins. I hope that we'll continue to invest in this space, and we will see the margins and the growth coming. Great. Thanks so much. Thank you so much. Our next question comes from Andrew M. Boone of Citizens JMP Securities. Please go ahead. Thanks so much for taking the questions. I wanted to ask about international and just the drivers of growth going forward there. Can you guys just talk about whether that includes new markets, deeper penetration, or anything else we should be thinking about as we think through the international opportunity? Lindsay, I want to go back to just a recurring theme of just repeat rates. Is there anything you guys can share either on cohorts or repeat rates to help us better understand how kind of the existing customers are progressing on the platform? Thanks so much. Sure. I'll take the international piece. International is an area we're super excited about. This is part of the business we've been, as you guys know, laying the foundation for for years now, really preparing the markets and getting them ready. You know, as we talked to you guys on the Q4 call, we were taking a step forward to move this even further down the field in terms of executing on those markets. Very happy with our first-half performance. This is a business that could easily be as large as our U.S. business. As you know, for our competitors, it's something like 70% of their business comes from international markets. Everything that we see is that the markets behave very similarly outside the U.S. to what we have already accomplished in the U.S. Just to give you a little bit of numbers around it, in the first half, sales outside the U.S. grew over 40%. That's to around $85 million. Of that $85 million, $75 million were markets that we're already established in, so for example, UK, Australia. We have around $10 million from these new kind of testing markets where we see a lot of potential. I say all this just to illustrate how much runway there is. For emerging markets for us, or I should say prospective markets for us like France, Italy, Spain, where the metrics are really positive, it's nice. The teams have been in preparation mode to finally actually be executing on it. We're still very early stages. There's still a lot of runway, but it's been fun to see that take shape this year. As we look into 2026, we have even more going on. In terms of what that's involved, of course, it's been more spend, more actual user acquisition activity in those markets, ad sets, creative, all that kind of stuff. It's also been a lot of focus on the teams, physical products. Because we don't have users there, and we still don't have repeat. Therefore, it's more costly for us at the beginning. Yeah. Focus from the teams, availability of products, technology products, funnels, all those things. Putting those in place, generating a really nice return on them, and executing on that market. Your next question was on repeat. Repeat remains very strong for us. Repeat continues to increase as a percentage of the business year over year. As we look at our 12-month repeat cohorts, those remain very strong, over 100%, and performing well for both brands. Thank you. Thank you so much. Our next question comes from Mark Stephen F. Mahaney of Evercore ISI. Please go ahead. Okay. Thanks. I just wanted to ask about the Brand 3 go-to-market strategy. I think given the type of offering, it's probably going to require a different go-to-market strategy than what you've had with the first two brands. Could you just talk about your ability to execute well against that, how different the planning is, how do you mitigate some of the operational risk involved? Thank you very much. Sure. I'll start. Look, in terms of it's still B2C. It's still using our user base, still using our technology. In addition to that, we have our vision technology that we built for the past, I want to say, two and a half years. There is nothing that different except the infrastructure itself for the pharmacy and the third party we work with. One thing that I would say about Brand 3 and our distinctive approach there mostly is around personalization. Our team spent almost two years developing the critical personalized treatments and developed almost 25 customer cohorts with unique treatment combinations based on our testing. It shows material, material improvement in satisfaction. Some numbers are above 50% compared to what exists in the market. I think that the combination here is something that most other companies cannot do. It's both like building the product, but also building the tech products. The combination, that's what brings us to those numbers. We are very bullish. In terms of go-to-market, it's pretty much the same. Thank you very much. Thank you. Our next question comes from Maria Lycouris of Morgan Stanley. Please go ahead. Hey, good morning. Just on Brand 3, can you just take a step back and give us an update on exactly what the brand sort of entails longer term from a consumer standpoint? Obviously, there's the product itself. You also mentioned monitoring. How does a professional recommendation fit in also potentially? Just basically, how we think about revenue from Brand 3. Is it essentially mostly the product itself, or are you thinking there's substantial opportunity around charging for monitoring or other revenue streams? Just given commercialization potential in the derm area, goes well beyond the product potentially, unlike traditional beauty products. What's your approach there, and how do you think about the long-term revenue streams? Sure. As I mentioned on the call before, Brand 3 is a telehealth platform with medical-grade products. We are starting with dermatology, but we already have plans for the next categories because we already have the infrastructure of shipping OTC and prescription products for the first time. This is a huge opportunity for ODDITY Tech Ltd., and in my view, we are addressing it differently than anyone else. We developed, as I mentioned before, ODDITY's most customized and comparative line that we did so far. In addition to that, it's the first time that we are doing something that deep in a new area of OTC and prescription, all to be sold online under our own brand. Most products are formulated with existing ingredients, but for the first time, we are going to launch products coming from ODDITY Labs, new molecules. This is another area where we are very excited. What else did we do here that is different? We were building a mobile app to ensure that compliance is high based on our study and our research. One of the main problems in this category is compliance. We need someone there to coach her and to make sure that she is on track for cure. If it means that we need to change her regimen, we will do it automatically, everything with computer vision technology and doctor setup. Number three is leveraging our 50 million users. As Lindsay Drucker Mann mentioned on her part, a huge part of our user base is already suffering from those problems. Therefore, we are planning to leverage it and to offer them the product. Don't forget, we use them as design partners to build this line. We are pretty confident that this is something that is going to be exciting also for them. Great. That's helpful. You mentioned some of the metrics which have you excited in your testing for Brand 3. Just take us back versus where you were three months ago, and what have you learned in the last three months in that testing? Has that changed how you're thinking about the commercial process going forward or excitement? Three months is a short cycle. It takes us like three months to get a read. Fair enough. Okay. I can tell you that, yeah, compared to two years ago, compared to a year ago, we are in a better position substantially. I think that the key here was to unlock both, first of all, the diagnosis, and in addition to that, to make sure that we are shipping the right customized product. Even if we had the right product or the right molecule a year ago or two years ago, if we send it to the wrong tester, therefore, the satisfaction was low. I think that we made a big progress in matching the right patient with the right treatment. Great. Thanks. That's helpful. Thank you so much. Our next question comes from Scott Anthony Schoenhaus of KeyBanc Capital Markets Inc. Please go ahead. Hey, team. Thanks for taking my question. Oran, as a healthcare technology analyst, I think this branching launch is a really exciting expansion opportunity. Everyone knows in healthcare, dermatology providers are supply constrained, and waiting for an appointment can take months to a year. It seems like the launch is centered initially around acne and offering topical treatments and prescriptions that are showing better efficacy than tretinoin currently. I guess maybe talk about the opportunities with more acute conditions. I think you mentioned eczema. This could be an entirely different platform, bringing in a whole new customer set and people coming to your platform with really severe skin conditions. Just walk me through the trajectory of how you view Brand 3 and the opportunities there as you emerge as a healthcare technology company. Sure. Thank you for that. I'm happy that you agree with us, and that's the reason why we launched it, to be honest, because it's such a headache and with very low satisfaction. We thought the main focus for the beginning of the launch will be around acne and hyperpigmentation. Those are two areas that we believe that we have a very strong breakthrough around both the technology and the offering itself. We are ready also with eczema. I think that we're going to have great products out there, but it's a smaller prevalence, and therefore, the main push will be around acne and hyperpigmentation at the beginning. We are going to launch also other body products in Q1 next year. In addition to that, we are working on additional categories. As for your question, yes, new users, it's something that we are happy about because it's going to diversify our user base. You may be surprised, but many of our user base today is suffering from those problems. This is why we started with solving it. We saw at least 20%- 25% in each problem that we are about to launch. We said that, and we started to ask questions, "Listen, what is wrong there?" They answered us. In this way, we built this line. I think that that's a very good start for launching the brand. Thank you. Thank you so much. There are no further questions at this time. I would now like to turn the call back over to Oran Holtzman for his closing remarks. Oran, thank you. Guys, thank you very much. See you next quarter. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.