Oddity Tech Ltd., a leading Israeli digital consumer technology platform in the beauty and wellness market, exceeded expectations for the fourth quarter and provided a positive outlook for 2024. The company, which went public last July, is the parent company of popular brands such as Il Makiage beauty products and Spoiled Child wellness products.
Impressive Financial Performance
Reporting a net profit of $5.113 million, or 8 cents per share, for the quarter showcases a substantial improvement from the loss of $660,000, or 1 cent per share, in the same period the year before. Adjusted earnings per share stood at 17 cents, nearly doubling the 9-cent FactSet consensus. Revenue also saw a significant increase, climbing to $97.2 billion from $67.5 billion and surpassing the $85.9 million FactSet consensus.
User Growth Milestone
Chief Financial Officer Lindsay Drucker Mann highlighted a key achievement, revealing that the company reached over 50 million users during the quarter. She expressed confidence in the company’s performance, stating that the core business is excelling and anticipates substantial growth opportunities in new categories.
Leveraging Market Trends
Drucker Mann emphasized two key trends driving Oddity’s success in the market. The first trend involves the increasing consumer shift towards online platforms for makeup and beauty products. Oddity foresees over 50% of the market transitioning online in the future. Additionally, there is a growing demand for science-backed products that effectively address consumer needs.
Embracing Innovation
While discussing industry trends, Drucker Mann pointed out a notable contrast between traditional beauty and pharma sectors. While pharmaceuticals benefit from cutting-edge technologies like AI for molecule discovery, she described the beauty and wellness industry as still being in the “Dark Ages.” Oddity focuses on leveraging technology, including AI and machine learning, to revolutionize the market. The company’s Israeli team, comprising talent recruited from elite technology centers, is dedicated to driving research and development efforts forward.
Oddity Labs: Revolutionizing the Beauty Industry
In the U.S., Oddity Labs, a venture by the innovative beauty company, has been making waves. It all began with the acquisition of biotech Revela in Massachusetts, leading to the creation of Oddity Labs—a game-changer in the beauty industry.
The Power of AI in Beauty
At Oddity Labs, cutting-edge technology meets beauty with the use of artificial intelligence. This platform revolutionizes the way consumers find the perfect products for their skin type. By harnessing AI, consumers can say goodbye to the traditional method of going to physical stores to test samples. The patented software elevates the experience by utilizing smartphone cameras to provide hyperspectral information. This technology, which was once only accessible through expensive equipment costing $20,000 or more, is now at the fingertips of consumers.
Tailored Marketing Strategies
Marketing strategies at Oddity Labs are as unique as the products they offer. Leveraging platforms like TikTok and Instagram, women showcase how seamlessly products match their skin, attracting users to the site. Upon arrival, consumers delve into a personalized journey where the company gains insights into their skin concerns. By leveraging technology, Oddity Labs recommends products tailored to individual needs, enhancing conversion rates and overall user experience.
Future Innovations in 2025
Looking ahead to 2025, Oddity Labs is gearing up to launch two new brands. One of these brands will focus on delivering medical-grade skincare and body products. With a strong belief in surpassing current treatments for skin conditions such as acne and eczema, Oddity Labs is set to revolutionize the beauty industry yet again.
Financial Outlook for 2024
In terms of financial projections, Oddity Labs is anticipating revenue ranging from $620 million to $630 million in 2024. The adjusted earnings per share (EPS) are expected to fall between $1.49 and $1.54. Comparatively, the FactSet consensus forecasts revenue of $546.4 million and an EPS of $1.31.
Leadership and Success
Founded by Chief Executive Oran Holtzman and Chief Product Officer Shiran Holtzman-Erel, Oddity Labs has seen remarkable success in recent months. The stock has surged by 32% over the last three months, outperforming the S&P 500 SPX, which has only grown by 11%.