Oddity Tech, a groundbreaking beauty and wellness company that leverages artificial intelligence (AI) to develop cosmetics, made a sensational debut in the IPO market, with its stock soaring by 35% on Wednesday. The company’s direct-to-consumer platform, responsible for brands like Il Makiage and Spoiled Child, closed at $47.53 per share, surpassing its initial pricing of $35 per share. This placed Oddity’s market valuation at around $2.7 billion after selling 12.1 million shares and raising approximately $424 million in the process. The stock is traded on the Nasdaq under the ticker symbol “ODD.”
Co-founder and CEO Oran Holtzman expressed his excitement about the company’s public listing, emphasizing that the goal is to build something monumental. He shared his happiness and gratitude for investors who understand Oddity’s vision after years of hard work. Launched in 2018 by Holtzman and his sister Shiran Holtzman-Erel, Oddity disrupts the traditional beauty market by utilizing data, AI, and tailored product recommendations to revolutionize the in-store experience.
At the core of its business model lies Oddity’s proprietary technology, including tools developed by a former Israeli defense official, as well as the vast amount of data collected from millions of users. What sets Oddity apart from other direct-to-consumer retailers that went public in 2021 is its remarkable growth and profitability.
Lindsay Drucker Mann, Oddity’s global CFO and a former executive at Goldman Sachs, highlighted the company’s ability to tap into a highly attractive and lucrative total addressable market online. She underscored that Oddity’s financial success is made possible by its unique model, placing technology and data at the center of its operations.
In terms of financial performance, Oddity stands out as a rare direct-to-consumer brand that has achieved both significant growth and profitability. This has been a driving force behind investor interest, especially as the IPO market rebounds from a period of decline. Investors now prioritize earnings and profitability over hyper growth, which was previously sufficient to attract investment.
Michael Farello, a managing partner at L Catterton’s growth fund, praised Oddity’s exceptional ability to simultaneously achieve growth and profitability. He emphasized that the company’s remarkable growth rates, particularly online, coupled with early-stage profitability, resonated positively with investors.
Oddity’s revenue for the three months ended March 31 amounted to $165.7 million, showcasing substantial growth from $90.4 million in the previous year. Net income rose to $19.6 million, or 35 cents a share, compared to approximately $3 million, or 5 cents a share, in the prior year. In fiscal 2022, the company reported sales of $324.5 million, with net income reaching $21.7 million, or 39 cents a share.
Furthermore, Oddity’s gross margins for the three months ending March 31 increased to 71%, up from 67% in the previous year. On average, the company’s gross sales have doubled each year since its inception in 2018.
Oddity takes pride in its workforce, with 40% of its global head count composed of technologists recruited from the top technology units of the Israeli Defense Forces. The company also recently announced a significant investment of over $100 million to acquire biotech startup Revela and establish a U.S.-based lab for creating innovative molecules through AI, which will be incorporated into its cosmetics brands and future product lines.
Looking ahead, Oddity plans to launch additional brands and prioritize investments in data, technology, and scientifically backed products using the proceeds from its IPO.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
