Oddity Tech (ODD) Morgan Stanley Global Consumer & Retail Conference summary

Business overview and growth strategy

• Operates the largest online direct-to-consumer beauty platform in the U.S., with two major brands: IL MAKIAGE and SpoiledChild, generating $500M and $150M in revenue respectively in 2024.

• Focuses on technology and data to personalize the online beauty shopping experience, replacing traditional in-store assistance with machine learning and video on demand.

• Targets a $600B global TAM, aiming for IL MAKIAGE and SpoiledChild to each become billion-dollar brands within four years.

• Plans to launch two new brands in the second half of next year, with additional brands in development.

• Diversifies growth through new product categories, international expansion, and leveraging a growing user base.

Technology and innovation

• Acquired biotech and vision software companies to accelerate ingredient innovation and enhance product matching capabilities.

• Uses proprietary molecules from ODDITY LABS for new and existing products, integrating consumer feedback directly into product development.

• Computer vision and machine learning tools improve shade matching and user experience, with further integration planned for 2025.

• AI and foundation models are used across the user journey, from product matching to molecule discovery.

Competitive advantage and customer strategy

• Maintains a user base of over 50 million, enabling high-probability product launches and strong repeat rates.

• Repeat customers drive more than half of revenue, supported by a 70% gross margin and increasing net revenue repeat rates.

• Focuses on acquiring users (not just customers), collecting extensive data to enable future conversions at high incremental margins.

• Technology and data-driven retargeting increase repeat purchases and customer satisfaction.