Oddity Tech Ltd. Exceeds Q4 Estimates, Provides Positive 2024 Outlook
Oddity Tech Ltd., the Israeli digital consumer technology platform for the beauty and wellness market, surpassed fourth-quarter estimates and shared a promising outlook for 2024. As the parent company of Il Makiage beauty products and Spoiled Child wellness products, Oddity went public last July and has witnessed substantial growth.
In Q4, Oddity reported a net profit of $5.113 million, or 8 cents per share, a significant improvement from the loss of $660,000, or 1 cent per share, in the same period the previous year. Adjusted earnings per share were 17 cents, notably higher than the consensus estimate of 9 cents. Revenue rose to $97.2 billion from $67.5 billion, outperforming the $85.9 million consensus.
However, the company’s stock declined 13% after hours. CFO Lindsay Drucker Mann highlighted the surpassing of the 50 million-user mark in the quarter and emphasized the company’s growth potential from new categories.
Oddity is leveraging two major trends: the increasing online shift for makeup and beauty products by consumers, and the rising demand for science-backed products that effectively address consumer needs. The company utilizes AI and machine learning, with R&D teams in Israel and the U.S., particularly for its Oddity Labs venture.
The platform employs AI to assist consumers in finding suitable products and shades for their skin type, eliminating the necessity for physical store visits. Its marketing approach includes content on platforms like TikTok and Instagram to drive traffic to their site, where technology recommends products.
For 2024, Oddity foresees revenue between $620 million and $630 million, with adjusted earnings per share expected to range from $1.49 to $1.54, surpassing the consensus estimates for both revenue and EPS. The company predicts gross margins to slightly increase to 70.5%.
Founded by CEO Oran Holtzman and CPO Shiran Holtzman-Erel, Oddity’s stock has surged 32% in the last three months, outperforming the S&P 500.
Analyst comment
Positive news: Oddity Tech Ltd. exceeded fourth-quarter estimates, reported net profit of $5.113 million, and provided a positive outlook for 2024. The company’s growth potential and innovative AI technology position it well for the consumer shift online and demand for science-backed products. However, despite strong results, the stock fell 13% after hours.
As an analyst, I predict that the market will respond positively to Oddity’s strong financial performance and positive outlook for 2024. The company’s innovative technology and growth potential in the beauty and wellness market are likely to attract investors and drive further market growth in the coming months.
