Oddity Tech Ltd., a leading digital consumer technology platform in Israel’s beauty and wellness market, announced impressive earnings for the third quarter, surpassing expectations. The company’s performance has defied market challenges since its highly anticipated initial public offering in July.
- Net income for the quarter stood at $3.8 million, or 6 cents a share, compared to $2.8 million, or 5 cents a share, in the same period last year.
- Adjusted per-share earnings amounted to 21 cents, outperforming the 17-cent FactSet consensus.
- Revenue recorded a significant increase, reaching $94 million, compared to $69 million in the previous year, surpassing the $88.7 million FactSet consensus.
Positive Market Response
Following the earnings announcement, the company’s stock rose by 2%, reflecting investor confidence in its performance.
Upgraded Full-Year Guidance
Oddity Tech Ltd.’s Co-Founder and Chief Executive, Oran Holtzman, highlighted that the company’s achievements surpassed their own expectations, leading to an upgrade in full-year guidance.
- Full-year adjusted EPS is now projected to range between $1.21 and $1.23, up from the previous guidance of $1.11 to $1.17.
- Revenue expectations for the full year have also been revised upwards to range from $493 million to $497 million, compared to the initial projection of $475 million to $480 million.
Fourth Quarter Outlook
For the fourth quarter, the company anticipates adjusted EPS of 10 cents to 12 cents and revenue of $82 million to $85 million. The FactSet consensus predicts EPS of 13 cents and revenue of $80.4 million.
Innovation in Molecule Discovery
Oddity Tech Ltd. has made significant progress in its molecule discovery platform, Oddity Labs, located in Tel Aviv. This AI-driven platform has added fresh talent, including Ph.D. professionals, during the quarter. The company plans to launch ten new products based on molecules discovered at the lab in 2024.
Stability Amidst Regional Tensions
Despite the ongoing conflict between Israel and Hamas, Oddity Labs has experienced minimal disruptions. Chief Financial Officer Lindsay Drucker Mann affirmed that the company does not expect any significant changes in the lab’s operations during the fourth quarter. With only a small number of employees called up and remote work arrangements in place, the company remains committed to pursuing its product launch plans.
Oddity, a groundbreaking company in the personal beauty market, is revolutionizing the industry through the use of cutting-edge technology such as artificial intelligence (AI) and machine learning. In its quest to fully reinvent the beauty experience, Oddity has assembled a formidable team of experts from elite Israeli technology centers, including the prestigious Israeli Defense Forces’ Unit 81 and its Special Operations Division’s technology unit, as highlighted in its IPO filing.
One of Oddity’s key innovations is the implementation of AI to assist consumers in finding the perfect products, formulations, and shades for their unique skin type. By harnessing the power of AI, customers are no longer required to visit physical stores and test samples. With Oddity’s ingenious patented software, smartphone cameras are able to capture hyperspectral information, a feat that would typically require expensive equipment costing $20,000 or more.
The formation of Oddity Labs came about after the company acquired Revela, a biotech firm renowned for its breakthroughs in beauty and wellness. Drucker Mann, a key figure in Oddity, expressed their enthusiasm for the rapid progress and vast potential of this venture. “The build-out has surpassed our expectations, and the scope of our vision is even more exciting than we initially anticipated,” he stated.
Looking forward, Oddity has ambitious plans to introduce two new brands by 2025. One of these brands will focus specifically on medical skin products, an often overlooked category within the beauty and wellness industry. Despite numerous advancements in other areas, ingredient innovation for medical skin products has been nonexistent. As a result, consumers still find themselves relying on the same products that their parents’ generation used.
Underpinning these aspirations is Oddity’s determination to cultivate Il Makiage into a billion-dollar enterprise within the next five years. Furthermore, the company’s second brand, Spoiled Child, which specializes in wellness products, is on track to achieve sales of $100 million this year and has already demonstrated profitability.
“Our current trajectory indicates significant growth potential,” affirmed an executive from Oddity, underscoring the company’s optimism about its future prospects.
For further insights, please refer to: Il Makiage parent Oddity Tech is going public: 5 things to know about the Israeli digital beauty company