Earlier this month, consumer technology company Oddity Tech Ltd. announced following strong Q2 2023 net revenue growth, the organization is now projecting higher net revenue that exceeds its original forecast.
The company behind popular DTC cosmetic brand Il Makiage and PBC brand SpoiledChild, Oddity Tech Ltd. focuses on utilizing data science to analyze consumer needs to determine and develop consumer product solutions in the beauty and wellness industry spaces and has reportedly more than doubled its Q2 2023 net revenue over the Q2 2022 period, demonstrating a 55% year-over-year (YOY) increase of $151.3 million from $97.7 million.
Driving factors behind momentum
About the increased projections, Oran Holtzman, Oddity co-founder and CEO shared that “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.” In part, this growth can be attributed to the company’s acquisition of Boston-based AI-driven molecule discovery firm Revela for $76 million earlier this year, which positioned Oddity Tech to establish biotechnology research and development center Oddity Labs in Boston for an additional $25 million investment.
Growth can also be attributed to a strong IPO which debuted on Nasdaq last month. According to CNBC, during its first day of trading, “Oddity Tech closed at $47.53 per share, giving it an approximate market valuation of $2.7 billion.” Further, “Oddity and its shareholders, which include L Catterton, raised about $424 million in the offering.”
“We completed the acquisition of Revela and launched Oddity Labs to revolutionize our industry using artificial intelligence-based molecule discovery, and with the successful completion of our initial public offering, we recruited top-tier investors to partner with us in the next stage of our journey,” added Holtzman about the company’s recent successes.
Updated growth projections
Strengthened by the recent acquisitions and strong stock performance, Oddity now projects a net revenue increase of between six and eight percent to 46-48% from its original 40% forecast. Further, the company is reporting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) with an increase between $5 million and $10 million from its initial $91 million estimate.
Said Oddity Tech Ltd.’s global CFO Lindsay Drucker Mann, “we are pleased with our outstanding second quarter performance and the continued strength of our business in the third quarter-to-date,” and because of “this momentum, we are raising our outlook for 2023 revenue and earnings to reflect better than expected top- and bottom-line results relative to our internal plan.”
Oddity Tech Ltd. has reported that between Q2 2022 and Q2 2023 gross profit has increased 60% from $66.6 million to $106.8 million. Additionally, the company’s gross margin has increased from 68.2% to 70.6% in the same period, and its net income nearly doubled from $16.6 million to $30 million.
Moving forward, Drucker Mann added that the company is “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,” which “enables us to invest resources during the second half of the year on future initiatives to drive long-term growth” in further support of the increased sales projections for the remaining months of 2023.