Oddity Tech (ODD) Q3 2024 earnings summary

Executive summary

• Achieved record-breaking Q3 2024 results with 26% net revenue growth to $119 million and record adjusted EBITDA of $25 million, driven by IL MAKIAGE and SpoiledChild brands across multiple categories.

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

• Revenue for the first nine months rose 27% year-over-year to $523 million, with adjusted EBITDA of $135 million and $119 million in free cash flow.

• Strong performance attributed to the direct-to-consumer model, high repeat rates, robust technology investments, and international expansion.

• Continued investment in new brands (Brand 3 and Brand 4) and ODDITY LABS, with significant growth potential in both existing and new markets.

Financial highlights

• Q3 net revenue grew 26% year-over-year to $119 million, exceeding guidance; nine-month net revenue totaled $523 million, up 27% year-over-year.

• Adjusted EBITDA for Q3 was $25 million (20.9% margin), and $135 million year-to-date; LTM Q3 2024 adjusted EBITDA was $152 million (24% margin).

• Free cash flow year-to-date reached $119 million, with nearly 90% EBITDA-to-cash conversion; cash and equivalents at quarter-end totaled $248 million with zero debt.

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

• Adjusted diluted EPS for Q3 was $0.32, up 52% year-over-year.

Outlook and guidance

• Raised 2024 full-year guidance: net revenue of $642–$644 million (26–27% growth), gross margin of 71.5%, adjusted EBITDA of $147–$149 million, and adjusted EPS of $1.85–$1.87.

• Q4 net revenue growth expected at 22–24% year-over-year, with gross margin ~68% and adjusted EBITDA $12–$14 million.

• Q4 adjusted diluted EPS expected at $0.11–$0.13, assuming a 30% tax rate.

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