Oddity Tech (ODD) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 results with 26% net revenue growth to $119M, driven by IL MAKIAGE and SpoiledChild brands, and supported by a direct-to-consumer model and high repeat rates.

• Net income for Q3 reached $18M, up 362% year-over-year; adjusted net income was $20M, up 53%.

• Continued investment in technology, science, and new brand development, including ODDITY LABS.

• Leveraged Israeli technology and data-driven platforms to support a portfolio of beauty and wellness brands.

Financial highlights

• Net revenue for the last twelve months (LTM) Q3 2024 reached $621M, up 30% year-over-year; nine-month revenue was $523M, up 27%.

• Q3 adjusted EBITDA was $25M with a 20.9% margin; adjusted diluted EPS was $0.32, up 52% year-over-year.

• Free cash flow for the nine months ended September 30, 2024, was $119M, converting nearly 90% of EBITDA to cash.

• Cash, cash equivalents, and investments totaled $248M with no outstanding debt as of September 30, 2024.

• Q3 gross margin was 69.9%, exceeding guidance but down 35 bps year-over-year; expected to normalize to 68% in Q4.

Outlook and guidance

• Raised FY 2024 guidance: net revenue expected at $642–$644M (26–27% growth), gross margin at 71.5%, adjusted EBITDA at $147–$149M, and adjusted EPS at $1.85–$1.87.

• Q4 2024 outlook: net revenue $118–$120M (22–24% growth), gross margin ~68%, adjusted EBITDA $12–$14M, and adjusted diluted EPS $0.11–$0.13.

• 2025 outlook: 20% net revenue growth and 20% adjusted EBITDA margin, with significant investments in new brands and labs.