Artificial Intelligence Enhances Shopping Experience
Oddity Tech, a beauty-products company, exceeded sales expectations with the help of returning customers. The company utilizes artificial intelligence to assist shoppers in finding the best beauty and wellness products to meet their needs. It owns online brands such as IL Makiage and Spoiled Child and recently made its debut on the Nasdaq Global Market in July.
Financial Performance Highlights
Following the closing of markets on Tuesday, Oddity reported fourth-quarter earnings of 8 cents per share, with net revenue reaching $97 million. This marks a significant improvement from a year ago when the company reported a per-share loss of 1 cent on sales of $67 million. On an adjusted basis, the company reported per-share earnings of 17 cents.
Analysts had predicted earnings of 9 cents per share from sales of $85.9 million, according to FactSet. Chief Financial Officer Lindsay Drucker Mann attributed much of the revenue growth to returning customers, noting that acquiring a customer involves higher marketing expenses compared to serving existing customers.
Future Projections and Strategic Vision
Oddity predicts net revenues between $620 million and $630 million for 2024, with adjusted per-share earnings ranging from $1.49 to $1.54. In 2023, the company recorded revenue of $509 million and earnings of $1.31 per share. For the current quarter ending March 31, management forecasts net revenue between $204 million and $207 million, with adjusted per-share earnings projected at 47 to 50 cents.
CEO Oran Holtzman is optimistic about Oddity’s position in the changing beauty market. He highlighted two key areas where the company aims to lead: the consumer shift online and the focus on science-backed, high-performance products. Holtzman emphasized that Oddity is fully committed to building a platform for innovative molecule discovery.
Future Expansion and Initiatives
Looking ahead, Oddity plans to introduce two new brands, including a medical-grade skin and body-care line, by 2025. Despite a slight dip in shares before market close on Tuesday, Oddity remains upbeat about its future prospects, especially in light of the evolving beauty industry landscape.
