ODDITY Tech Surges With Impressive Q1 Performance And Strategic Brand Expansion

$ODD

ODDITY Tech Ltd. (NASDAQ:ODD), the New York-based consumer tech company reported a first-quarter net revenue of $268 million, marking a 27% increase from the $212 million recorded in the same period last year. This growth is attributed to the company’s effective brand scaling strategies and its focus on digital-first approaches which resonate well with modern consumer preferences.

With a gross margin increase to 74.9% from 73.8% year-over-year and a net income boost to $38 million from $33 million. The adjusted net income also saw a healthy rise, reaching $42 million up from $38 million, demonstrating a solid gain in profitability

“Our Q125 results exceeded our expectations across all metrics and allow us to raise our full year outlook. We delivered an outstanding result for our biggest quarter of the year, setting us up to overdeliver on our financial algorithm in 2025,” said Oran Holtzman, ODDITY co-founder and CEO.

The company’s operational success can be largely credited to its flagship brands, IL MAKIAGE and SpoiledChild, which have shown double-digit revenue growth. IL MAKIAGE notably crossed the $500 million revenue mark last year, positioning it as one of the largest beauty brands in the country. SpoiledChild is expected to reach $200 million in revenue this year, a significant achievement considering its launch just three years ago.

ODDITY is gearing up to launch a third brand, currently referred to as Brand 3, which is a telehealth platform initially focusing on medical-grade skin and body care. This expansion into telehealth signifies ODDITY’s commitment to innovation and its foresight in tapping into emerging market trends. The company’s strategic foresight is further evident in its management of operational costs and efficiencies.

The company has raised its full-year outlook for 2025, now anticipating net revenue between $790 million and $798 million, which represents a growth rate of 22% to 23%. It also expects to maintain a gross margin of approximately 71% and projects adjusted EBITDA to be between $157 million and $161 million.

With a balance sheet featuring $257 million in cash and no outstanding debt, the company is well-positioned to continue its growth trajectory and maintain its competitive edge in the industry. It continues to evolve and adapt to consumer needs and market conditions, its strategic initiatives are expected to drive further success and solidify its position as a leader in the digital-first consumer brand space.

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