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, leveraging a direct-to-consumer model and technology investments.

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

• Continued expansion of product lines, international presence, and ODDITY LABS, with significant growth potential in new and existing markets.

• The company leverages Israeli technology and data-driven platforms to support its beauty and wellness brands.

• Direct-to-consumer model drove high engagement, market share gains, and robust cash flows.

Financial highlights

• Net revenue for the first nine months rose 27% year-over-year to $523M; LTM Q3 2024 net revenue reached $621M, up 30% year-over-year.

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

• Free cash flow for the nine months ended September 30, 2024, was $119M; LTM Q3 2024 free cash flow totaled $127M.

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

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

Outlook and guidance

• Raised FY2024 guidance: net revenue $642–$644M (26–27% growth), gross margin ~71.5%, adjusted EBITDA $147–$149M, and adjusted diluted EPS $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.