In This Article:
-
Revenue: Grew 27% to $268 million.
-
Adjusted EBITDA: $52 million, representing a 19.5% adjusted EBITDA margin.
-
Free Cash Flow: $87 million.
-
Gross Margin: 74.9%, expanded 116 basis points year over year.
-
Adjusted Diluted Earnings Per Share (EPS): $0.69.
-
Cash and Cash Equivalents: $257 million with zero debt.
-
Full Year Revenue Growth Outlook: Expected between 22% and 23%, or between $790 and $798 million.
-
Full Year Gross Margin Outlook: Raised to 71%.
-
Adjusted EBITDA Outlook: $157 to $161 million.
-
Adjusted EPS Outlook: $1.99 to $2.04.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
ODDITY Tech Ltd (NASDAQ:ODD) reported a 27% revenue growth in Q1 2025, reaching $268 million, exceeding expectations.
-
The company achieved an adjusted EBITDA of $52 million, representing a 19.5% margin, and generated $87 million in free cash flow.
-
ODDITY Tech Ltd (NASDAQ:ODD) continues to benefit from the consumer shift to online shopping, positioning itself as a dominant B2C platform.
-
The company is on track to meet its $1 billion revenue goal for Il Makiage by 2028 and is seeing strong growth in its Spoiled Child brand.
-
ODDITY Tech Ltd (NASDAQ:ODD) is expanding internationally, with promising results from markets like France, Italy, and Spain, and plans to continue scaling globally.
Negative Points
-
Despite strong performance, ODDITY Tech Ltd (NASDAQ:ODD) faces potential challenges from tariffs, which could impact gross margins by 50 to 100 basis points.
-
The company is heavily reliant on the US market, with 80% of its business currently based there, which could pose risks if domestic demand weakens.
-
ODDITY Tech Ltd (NASDAQ:ODD) is investing heavily in new brand launches and Oddity Labs, which may not contribute to revenue in the short term.
-
The company acknowledges that its gross margin of 71% may not be sustainable long-term, with expectations to stabilize in the high 60s.
-
ODDITY Tech Ltd (NASDAQ:ODD) faces competition in the beauty industry, particularly in the telehealth and biotech sectors, where it is investing to gain a competitive edge.
Q & A Highlights
Q: How significant was the international contribution to the quarter, and what impact might the FTC's click-to-cancel rule have on the business? A: International growth was a strategic focus for 2025, contributing to double-digit growth in both the US and international markets. The click-to-cancel rule is not expected to significantly impact the business, as Oddity's subscription model is opt-in and cancellation is straightforward.