Oddity Il Maquillage
Courtesy: Weird
Oddity Tech announced preliminary third-quarter results on Monday, showing an expected revenue increase of 29% to 31% from repeat sales of its Ile Maquillage and Spoiled Child brands.
The start-up retailer, which began trading on the Nasdaq in July and leverages artificial intelligence in product development, previously expected sales to rise about 20.5% in the three months ending Sept. 30. .
The Tel Aviv-based company did not disclose exact sales figures for the quarter, but it posted revenue of $68.9 million in the same period last year, Finance Director Lindsey Drucker Mann told CNBC. Ta.
The company also expects its gross profit margin to be 68.5% for the current fiscal year, one percentage point higher than its previous forecast of 67.5%, and the company expects its gross profit margin to be at a record high level before interest, taxes, depreciation and amortization. I predict that it will. Previous range. Oddity now expects adjusted EBITDA margin to be in the range of 21% to 21.5%, compared to initial guidance of 20% to 21.5%.
Oddity said revenue has increased about 58% so far this year, with adjusted EBITDA of at least $89 million.
“We were strong overall, outperforming both Il Makiage and Spoiled Child. At the end of the day, our repeat revenue was stronger than expected, and importantly, those sales were of very high quality. “It’s a very strong result, with a lot of profitability associated with it,” Drucker Mann said in an interview.
“We deploy these machine learning models in almost every part of the user journey. These machine learning models drive high satisfaction rates, which translates into our excellent return rates and our high revenue.” We would never have been able to do it without these models.” Even if we could print these results, we would be just a profitless entity. will end up [direct-to-consumer] company. ”
Oddity is on a mission to disrupt the traditional beauty and wellness industry by using AI to not only select but also develop products for its customers. The company often boasts that it doesn’t hire from the traditional beauty industry, instead focusing on hiring technicians, many of whom come from the Israel Defense Forces’ top technical units.
In April, the company announced plans to acquire biotech startup Revela and open Boston-based Oddity Labs to make cosmetics to address long-standing problems like hair loss and wrinkles. This lab is tasked with creating entirely new molecules using AI. It is a commonly used tool in the pharmaceutical industry to create new drugs, but it is not widely used in the beauty and wellness industry.
CEO Oran Holzman said in a statement that Oddity Labs is expanding faster than expected and is “delivering game-changing ingredient innovation.”
The company expects Oddity Labs to be able to bring 10 products to market in 2024. Over the next five years, Drucker Mann said he expects Oddity Labs to drive more than 30% of his company’s overall revenue.
When Oddity first hit the public market in the summer, the stock opened with a 35% gain and closed at $47.53. Shortly after, the stock reached a high of $56 per share, but since then, Oddity stock has fallen about 50%, ending Monday’s price at $28.08.
Drucker Mann said Oddity’s stock price, like those of other recently listed companies, reflects “the natural ebb and flow of risk sentiment in the early stages of a market recovery.”
“Momentum sometimes drives the short term, but fundamentals drive the long term. Our fundamental story is very exciting, so we’re very confident.”
