Oddity has raised its 2023 full year outlook after reporting its “best third quarter ever”.
The parent company of Il Makiage and SpoiledChild generated US$94m in net revenue for Q3 versus $69m last year.
The 37% increase has been attributed to “profitable growth” across regions and product categories for both beauty brands, as well as “strong” repeat sales.
Gross profit for the quarter also came in at $66m, which is a 41% year over year boost.
The company’s adjusted EBITDA is $21m, soaring 227% in this period.
“Our third quarter is our best third quarter ever, exceeding our guidance,” said Oran Holtzman, Oddity’s co-founder and CEO.
“We continue to deliver excellent growth and profitability for Il Makiage and SpoiledChild.
“While building powerful engines to scale our business and expand our lead in 2024 and beyond.
“Our business continues to fire on all cylinders and is the strongest it has ever been.”
Oddity reported a 60% net revenue growth for the nine months ended September 30 2023.
It has since increased its full year net revenue expectation to $493m to $497m, up from $475m to $480m, to reflect a forecast of higher sales, profit margins and earnings.
This represents a growth of between 52% to 53%, in comparison to its previously expected 46% to 48%.
Lindsay Drucker Mann, Oddity’s Global CFO, said the results reflect the “strength” of the company’s model, “and our significant runway for profitable growth ahead”.
She added: “We reinvested a portion of this revenue upside against future growth initiatives, including new brands and markets.
“Which is consistent with our commitment to long term reinvestment.”
Holtzman said the company’s “large investments” in technology and data capabilities over the past five years is also enabling it to grow at a fast rate.
“Without damaging our high margins and strong profitability,” he added.
Oddity’s stock rose 9% in after-hours trading after releasing its results.
This news comes hot on the heels of a record sales boost for the company in Q2 2023.
It reported a 55% year on year revenue increase – a strong performance which was supported by its acquisition of Revela.
Oddity has also provided guidance for Q4 2023.
Ending December 31 2023, Oddity is expecting net revenue to come in between $82m to $85m.
This will represent year over year growth of between 22% to 26%.
It also estimates its gross margin to be approximately 66%, with an adjusted EBITDA of between $13m to $14m.
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