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  "documentTitle": "FIGS, Inc. (FIGS)",
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      "text": "While we do not have visibility into the expense items FIGS originally excluded from its Customer Acquisition Cost (“CAC”) calculation, recalculating CAC using total reported Marketing expense suggests that CAC rose dramatically after its IPO and has further exploded in 2022.",
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      "text": "CAC Using All Reported Marketing Expense",
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      "text": "After May 2021 IPO, the last time FIGS disclosed its CAC.",
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      "text": "This suggests that the CAC decline FIGS saw in 2020 was likely transitory and driven by pandemic-fueled customer additions. FIGS has not reported its own CAC calculation since year-end 2020, but we suspect it has increased dramatically, even using the Company’s calculation. Moreover, we believe that calculating CAC using total reported marketing expense provides a more accurate picture for investors, both because it enhances transparency and because the practical reality is that all payroll and other expense in the marketing line item are ultimately meant to facilitate customer acquisition. Ignoring payroll prevents a normalization across companies with a different mix of customer acquisition activities.",
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      "text": "Source: FIGS 424B filed 5/28/21, FIGS 10-Q filed 8/12/21, FIGS 10-Q filed 11/10/21, FIGS 10-K filed 3/10/22, FIGS 10-Q filed 5/12/22, FIGS 10-Q filed 8/4/22",
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      "text": "Using Our Methodology, We Believe FIGS' CAC Has Increased Dramatically Since Its IPO",
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