Oddity Tech, a beauty products company that recently went public in July, has shown significant growth in its first earnings report. The company posted second-quarter adjusted earnings of 56 cents per share, surpassing the 33 cents recorded in the same quarter last year. Net revenue also saw a substantial increase, reaching $151.3 million compared to the $97.7 million from the previous year.
Unlike traditional brick-and-mortar stores, Oddity Tech exclusively sells its makeup online. They employ sophisticated quizzes that utilize artificial intelligence to determine the most suitable products for their customers. These technological advancements have played a crucial role in boosting the company’s revenue and profitability, according to Chief Financial Officer Lindsay Drucker Mann.
Based on their outstanding performance in the second quarter, Oddity has raised its forecasts for revenue, margins, and earnings for the full year. Management now anticipates net revenue to be between $475 million and $480 million, a significant increase from the previous projection of $453 million. Adjusted earnings per share are also expected to land between $1.11 and $1.17, surpassing the previous estimate of $1.06.
Mann expressed her enthusiasm for the company’s financial performance while highlighting plans for future growth beyond 2024. Oddity currently operates two online brands, IL Makiage and SpoiledChild, which were launched in 2018 and 2022, respectively. In addition to these brands, the company acquired Revela in April, a biotechnology firm focused on developing beauty and wellness molecules. As part of their expansion strategy, Oddity is planning to introduce new products in 2024 and aims to launch a third and fourth brand in 2025.
During its initial public offering (IPO), Oddity’s shares were priced at $35 each. The stock made its trading debut on July 19, opening at $49.10 and closing the session at $47.53, representing a significant 36% increase from the IPO price.
Despite a slight decline of 0.6%, with shares closing at $50.50 on Wednesday, Oddity Tech’s growth prospects remain promising.
