Dive Brief:
- Beauty company Oddity Tech expects net revenue growth between 29% and 31% for the three months ended Saturday, according to a company press release. The preliminary results are above the company’s previous guidance, which had a mid-point of 20.5%.
- The Il Makiage and SpoiledChild parent company anticipates a gross margin of 68.5% for the period, up slightly from the previously expected 67.5%. Oddity has achieved net revenue growth of at least 58% during the first nine months of the year, according to a statement from co-founder and CEO Oran Holtzman.
- Oddity has two new brands it plans to launch in 2025, one of which is a “medical grade” skin and body care brand that will include both over-the-counter and prescription products, Holtzman said on a call with analysts Tuesday.
Dive Insight:
Oddity’s positive preliminary results come as the company hopes to rein in excessive growth.
“These strong financial results reflect the power of our platform, built to transform the global beauty and wellness market through technology and data usage,” Holtzman said in a statement. “We continue to consistently deliver high growth and outstanding profitability with both IL MAKIAGE and SpoiledChild brands and are building massive engines to further scale in 2024 and beyond. ODDITY LABS, powered by the Revela biotech integration, is expanding its molecule discovery platform faster than expected, and is delivering game changing ingredient innovation to support continued high growth for IL MAKIAGE, SpoiledChild, and our new brands in development.”
The executive said on Tuesday’s call that the direct-to-consumer company’s new brand that will focus on OTC and prescription products will use skin diagnostic technology with a user experience that is superior to “what is possible in a doctor's office or any physical store environment.”
Chief Financial Officer Lindsay Drucker Mann noted that the company has focused on not growing too fast, in pursuit of a more sustainable business.
“Not only are we actively holding back on the top line, but we're also restraining profitability,” the executive said. “We believe these investments in new brands, products and capabilities create a virtuous cycle of profitable growth.”
Oddity in June filed to go public under the ticker symbol ODD, with its F-1 filing showing that it generated a net income for the years ended December 31, 2020, 2021 and 2022. The company started trading at a higher price point than it initially estimated after it revised its share price multiple times, with its closing price on July 19 reaching $47.53. Oddity’s closing price on Monday was $28.08.
The preliminary third-quarter results follow news in August that Oddity named Gil Efrati as CEO of SpoiledChild. The executive was previously the chief marketing officer for DTC company Resident and worked at Google for about seven years.
