08.10.23
With its IPO complete, Oddity Tech Ltd. is on a roll.
For the second quarter ended June 30, 2023, net revenues were $151.3 million compared to $97.7 million in the second quarter of 2022, representing a 55% year-over-year increase. Net revenue exceeded the midpoint of the preliminary estimates by $11.8 million, or 8%, according to the tech-driven beauty company.
“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. We believe our year-to-date financial performance, with net revenue growth of 69% year-over-year, $50 million of net income, and $70 million of adjusted EBITDA, reflects the power of our business model as we work to transform the global beauty and wellness market through technology and entrepreneurial DNA,” said Oran Holtzman, Oddity co-founder and CEO. “We are unlocking online for this massive, global TAM by leveraging data science, artificial intelligence and computer vision to deliver superior products and experiences to our over 40 million users.”
Holtzman continued, “We achieved key objectives during the quarter that set us up for long-term success. Our business is firing on all cylinders, he said.
According to Holtzman, Oddity delivered outstanding financial results, rapidly growing topline and driving strong profitability.
The company completed the acquisition of Revela and launched Oddity Labs to “revolutionize its industry using artificial intelligence-based molecule discovery,” the CEO added.
“We are pleased with our outstanding second quarter performance and the continued strength of our business in the third quarter-to-date,” added Lindsay Drucker Mann, Oddity Global CFO, “As a result 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.
According to Mann, Oddity is now expecting “full year net revenue to increase between 46-48%, compared with our prior expectation of a 40% increase.”
Full year adjusted EBITDA is expected between $96 million and $101 million, compared with its prior expectation of $91 million.
The company said it plans to reinvest a portion of the revenue and profit upside generated in the second quarter back into the business during the second half of 2023 to support long-term growth.
For full year ending December 31, 2023, Oddity expects net revenue between $475 million and $480 million, above its prior expectation for $453 million, representing year-over-year growth between 46% and 48% as compared to 40% prior. It expects gross margins of approximately 69.5%, above the prior expectation of 67.9%. And edjusted EBITDA is expcted between $96 million and $101 million, above its prior expectation of $91 million, and representing aAdjusted EBITDA margins between 20.0% and 21.0%.
For the second quarter ended June 30, 2023, net revenues were $151.3 million compared to $97.7 million in the second quarter of 2022, representing a 55% year-over-year increase. Net revenue exceeded the midpoint of the preliminary estimates by $11.8 million, or 8%, according to the tech-driven beauty company.
“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. We believe our year-to-date financial performance, with net revenue growth of 69% year-over-year, $50 million of net income, and $70 million of adjusted EBITDA, reflects the power of our business model as we work to transform the global beauty and wellness market through technology and entrepreneurial DNA,” said Oran Holtzman, Oddity co-founder and CEO. “We are unlocking online for this massive, global TAM by leveraging data science, artificial intelligence and computer vision to deliver superior products and experiences to our over 40 million users.”
Holtzman continued, “We achieved key objectives during the quarter that set us up for long-term success. Our business is firing on all cylinders, he said.
According to Holtzman, Oddity delivered outstanding financial results, rapidly growing topline and driving strong profitability.
The company completed the acquisition of Revela and launched Oddity Labs to “revolutionize its industry using artificial intelligence-based molecule discovery,” the CEO added.
“We are pleased with our outstanding second quarter performance and the continued strength of our business in the third quarter-to-date,” added Lindsay Drucker Mann, Oddity Global CFO, “As a result 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.
According to Mann, Oddity is now expecting “full year net revenue to increase between 46-48%, compared with our prior expectation of a 40% increase.”
Full year adjusted EBITDA is expected between $96 million and $101 million, compared with its prior expectation of $91 million.
Second Quarter Fiscal 2023
For second quarter cross profit was $106.8 million compared to $66.6 million in the second quarter of 2022, representing a 60% year-over-year increase. Gross margin was 70.6%, expanding 244 bps versus gross margin of 68.2% in the second quarter of 2022. Net income was $30.0 million compared to $16.6 million in the second quarter of 2022. This net income exceeded the midpoint of the preliminary estimates by $7.1 million, or 31%. Net income margin was 19.8%. Adjusted net income was $32.3 million compared to $18.3 million in the second quarter of 2022, representing a 76% year-over-year increase. Adjusted net income margin was 21.3%.Financial Outlook
Based on the strong second quarter results, Oddity is raising its plan for 2023 to reflect higher revenue, profit margins, and earnings than previously expected.The company said it plans to reinvest a portion of the revenue and profit upside generated in the second quarter back into the business during the second half of 2023 to support long-term growth.
For full year ending December 31, 2023, Oddity expects net revenue between $475 million and $480 million, above its prior expectation for $453 million, representing year-over-year growth between 46% and 48% as compared to 40% prior. It expects gross margins of approximately 69.5%, above the prior expectation of 67.9%. And edjusted EBITDA is expcted between $96 million and $101 million, above its prior expectation of $91 million, and representing aAdjusted EBITDA margins between 20.0% and 21.0%.