Dive Brief:
- Oddity, the owner of Il Makiage and SpoiledChild, on Tuesday reported fourth-quarter revenue grew 44% year over year to $97 million. The company also moved into the black, reporting an operating income of $6.5 million, from a loss of $142,000 last year, and a net profit of $5.1 million, from a loss of $660,000.
- For the full year, net revenue was up 57% year over year to $509 million, according to a company press release. Operating income increased 168.6% to about $74 million and net income grew about 170% to $58.5 million.
- The company is still planning to launch two brands next year, one of which will be focused on targeting acne, eczema and other skin concerns.
Dive Insight:
Oddity closed out 2023 on a high note as it swung to a profit and reported strong revenue growth in the fourth quarter.
“Our fourth quarter delivered an outstanding finish to a record breaking year. We continued to deliver as promised,” Oddity co-founder and CEO Oran Holtzman said in a statement. “Our large investments in technology and product over the past 5 years are yielding significant returns and allow the rare combination of scale, growth, and profitability.”
The brand, which made its public trading debut last summer, highlighted a number of achievements it hit this past year, including exceeding $500 million in net revenue, surpassing 50 million platform users and beating its Q4 and full-year guidance.
The company last year also established Oddity Labs — powered through its acquisition of Revela — which it describes as a molecule discovery platform.
“The Revela acquisition and establishment of Oddity Labs is a game-changer for the industry. We are all in in building the biggest and most advanced platform for new molecule discovery. I believe it will be a huge growth engine for all our brands,” Holtzman said in prepared remarks regarding the company’s fourth-quarter performance.
Oddity also remains focused on launching its next two brands set to debut in 2025. The first brand, which targets skin concerns like acne and eczema, includes a mobile platform that uses data, artificial intelligence and computer vision to form a diagnosis, treatment plan and additional assistance. The brand will leverage Oddity Labs to develop its products. The category for the other brand has yet to be announced. Both brands will have their own leadership teams “to ensure they win without distracting the existing brands runway,” Holtzman said.
Looking ahead, Oddity projects full-year revenue of $620 million to $630 million, representing a year-over-year increase of 22% to 24%. The company also expects gross margin of 70.5%, up from 70.4% in 2023 and adjusted EBITDA between $136 million and $140 million.
