Oddity Raises Outlook on Better-than-expected Q2 Results
Newly public Oddity Tech, the parent company of Il Makiage and SpoiledChild, has had another success.
After a better-than-expected public debut last month, the company just announced that it surpassed forecasts for the second quarter ended June 30, allowing it to raise its full-year outlook.
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Net revenue came in at $151.3 million, up from $97.7 million a year earlier and $11.8 million above estimates. Net income, meanwhile, was $30 million, compared with $16.6 million in the same period a year prior. On an adjusted basis, it was $32.3 million. Adjusted diluted earnings per share was 56 cents, up from 33 cents a year earlier.
“We delivered our strongest second quarter and year-to-date financial results ever, beating our plan on revenue and all key profit metrics, and allowing us to raise our full-year outlook,” said Oran Holtzman, Oddity cofounder and chief executive officer.
Holtzman and his sister Shiran Holtzman-Erel relaunched cosmetics brand Il Makiage in 2018 after receiving a $29 million investment from L Catterton. Oddity launched its second brand SpoiledChild in February 2022, with 17 refillable stock keeping units across hair care and skin care, priced from $45 to $95. It plans to launch brands three and four in 2025.
The company went public on July 19, trading on the Nasdaq Global Market under the ticker “ODD” with shares closing up 35 percent, or $12.53, to $47.54, valuing the business at about $2.7 billion.
Looking forward, net revenue is now forecast to come in at between $475 million and $480 million, above Oddity’s prior expectation for $453 million. Adjusted diluted EPS is projected between $1.11 and $1.17, topping estimates of $1.06.
The company’s global chief financial officer Lindsay Drucker Mann added: “We are additionally pleased that we were able to deliver the bulk of our full-year objectives in the first half alone, as we have done in previous years. We accomplished this by aggressively fueling profitable growth in the first and second quarters, which enables us to invest resources during the second half of the year on future initiatives to drive long-term growth.”
Most recently, Oddity acquired Boston-based biotechnology start-up Revela for $76 million. With the acquisition and an additional $25 million investment, the company plans to establish Oddity Labs in Boston. The move marked the company’s third acquisition since its inception in 2018. It also bought Voyage81, a hyper-spectral imaging software company, in 2021 for more than $40 million, and NeoWize, a data science start-up based in Israel, in 2019 for an undisclosed amount.
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