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, Oddity Tech, utilized the power of artificial intelligence and shares that its revenue growth for the third quarter is expected to be between 29% and 31%. This increase is primarily due to the strong performance of its Il Makiage and Spoiled Child brands.
Oddity didn’t disclose the exact sales figure for the quarter, but according to CNBC, in the same period last year, it generated $68.9 million in revenue. The company expects to achieve a gross margin of 68.5% for the period, surpassing its previous guidance of 67.5%. Furthermore, it anticipates its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margins to be at the high end of the initial range, at 21% to 21.5%, compared to the initial guidance of 20% to 21.5%.
Oddity has experienced a significant increase in sales of 58% this year, with adjusted EBITDA reaching at least $89 million. Lindsay Drucker Mann, the finance chief of Oddity, expressed her satisfaction with the results and attributed the success to the repeat revenues and high-quality sales driven by the company’s machine learning models.
In its pursuit to revolutionize the beauty and wellness industry, Oddity Tech employs AI not only to select products for customers but also to develop new ones. This innovative approach sets Oddity apart from traditional players in the industry. In April, the company announced its plan to acquire biotech startup Revela and establish Oddity Labs in Boston. The goal is to use AI to address longstanding beauty concerns, such as hair loss and wrinkles, by developing brand-new molecules. CEO Oran Holtzman stated that Oddity Labs is exceeding expectations and delivering groundbreaking ingredient innovation.
Drucker Mann revealed that Oddity Labs is projected to contribute 30% or more of the company’s overall revenue within the next five years. The company expects to have 10 products from Oddity Labs ready for the market by 2024.
Despite its promising prospects, Oddity’s stock price has experienced fluctuations since its debut on the public markets. After an initial surge of 35%, the stock reached a high of $56 per share but has since declined by approximately 50%, closing at $28.08 on Monday. Drucker Mann attributes this volatility to market sentiment in the early stages of recovery but remains confident in the company’s strong fundamentals and long-term potential.
Oddity Tech, with its emphasis on AI-driven advancements and disruptive approach to the beauty and wellness industry, is making waves as a newly public retailer. Its innovative use of artificial intelligence in product development and selection, as well as its acquisition of Revela and the establishment of Oddity Labs, showcase the company’s commitment to revolutionizing the industry. Despite fluctuations in its stock price, Oddity remains confident in its fundamental story and is poised for long-term success.
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