Oddity Tech (ODD) Q4 2024 earnings summary

Executive summary

• Achieved 27% revenue growth in 2024, reaching $647 million, with adjusted EBITDA up 40% year-over-year to $150 million at a 23.3% margin.

• Both Il Makiage and SpoiledChild brands delivered double-digit revenue growth; Il Makiage surpassed $500 million in revenue, SpoiledChild exceeded $150 million.

• Maintained strong momentum into Q1 2025, with continued growth across brands and categories and positioning for 20% annual revenue growth and 20% adjusted EBITDA margin.

• Outperformance attributed to online direct-to-consumer model, high repeat sales, and product innovation.

• Ended 2024 with $169 million in cash and investments, zero debt, and $134 million in free cash flow.

Financial highlights

• FY2024 net revenue: $647M (+27% YoY); Q4 2024 net revenue: up 27% YoY to $124M.

• FY2024 adjusted EBITDA: $150M (+40% YoY); Q4 2024 adjusted EBITDA: $15M (12.3% margin).

• FY2024 gross margin: 72.4% (+196 bps YoY); Q4 2024 gross margin: 72.7% (+330 bps YoY), exceeding guidance.

• FY2024 adjusted diluted EPS: $1.96 (+50% YoY); Q4 2024 adjusted diluted EPS: $0.20, above guidance.

• Free cash flow for 2024: $134M, up from $85M in 2023, representing 21% of revenue.

Outlook and guidance

• FY2025 guidance: net revenue $776M–$785M (+20–21% YoY), gross margin ~70%, adjusted EBITDA $155M–$158M, adjusted diluted EPS $1.94–$1.98 (tax rate ~20%).

• Q1 2025 net revenue expected to grow 22–24% YoY to $258M–$262M; gross margin ~72%; adjusted EBITDA $49M–$50M; adjusted diluted EPS $0.61–$0.63.

• Brand 3 (telehealth) to soft launch in Q3 and officially launch in Q4 2025; no material revenue contribution expected in 2025.

• Brand 4 launch moved to early 2026 to focus resources on Brand 3; prelaunch expenses to be incurred in 2025.

• Gross margin for 2025 expected around 70% as product mix normalizes and Brand 3 launches.