Oddity Il Makiage
Coutesy: Oddity
Oddity Tech released preliminary third-quarter results on Monday that show expected revenue growth of 29% to 31%, driven by repeat sales at its Il Makiage and Spoiled Child brands.
The newly public retailer, which started trading on the Nasdaq in July and uses artificial intelligence to develop products, had previously expected sales to grow by about 20.5% in the three months ended Sept. 30. The Tel Aviv company did not disclose its exact revenue for the third quarter. However, the company’s finance chief Lindsay Drucker Mann revealed to CNBC that it had $68.9m in revenue in the previous period. Oddity now expects an adjusted EBITDA of 21% to 21,5%, as opposed to its original guidance of 20% to 21,5%. Oddity reported that sales this year have increased by 58%, with an adjusted EBITDA at least $89 millions.
“It was a strong performance across the board. Spoiled Child and Il Makiage both saw a rise in sales.” In an interview, Drucker Mann stated that our repeat revenue was stronger than expected. Also, these sales were very high-quality, so they were accompanied by a very high profitability.
We use these machine-learning models in almost all parts of the user’s journey. They are responsible for our high customer satisfaction which drives our high repeat rates and profitability. We would not be able print these results without these models. We would be just another
unprofitable company.”
Oddity has a mission: to disrupt the beauty and wellness industries by using AI not only to select products for their customers, but also to develop those products. It boasts about not hiring from the traditional beauty industry, but instead, focuses on recruiting techies, including many from the Israeli Defense Forces best technology units. The lab’s task is to use AI to create new molecules. This is a tool that is commonly used in the pharmaceutical sector to develop new drugs but is not widely used by the beauty and wellness industries. In a statement issued by CEO Oran Holtzman, he said that Oddity Labs was expanding faster than anticipated and “delivering innovative ingredient technology”. “
The Company expects Oddity Labs will have 10 products ready to market by 2024. Drucker Mann expects Oddity Labs will drive 30% of the overall revenue in the company over the next five-year period. Oddity’s stock closed at $47.53 when it first appeared on the public market over the summer. It began trading with a 35 percent increase. Soon after, it reached a high of $56 per share but since then, Oddity’s stock has fallen by about 50%, with shares closing at $28.08 on Monday.[direct-to-consumer]Drucker Mann said Oddity’s share price, along with the share price of other companies that recently went public, reflects “the natural ebb and flow of risk sentiment in the early stages of a market recovery. “
Momentum is important in the short-term, but fundamentals are what drive long-term success. Our fundamental story is very exciting so we feel really confident,” said Drucker Mann.