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• Revenue: Grew 27% to $647 million in 2024.

• Adjusted EBITDA: $150 million at a 23.3% margin, growing 40% year over year.

• Free Cash Flow: Generated $134 million, converting over 130% of net income into cash.

• Q4 Revenue: Increased 27% to $97 million.

• Gross Margin: 72.7% in Q4, expanded 330 basis points year over year.

• Adjusted EBITDA Margin: 12.3% in Q4.

• Adjusted Diluted EPS: $0.20 in Q4.

• Average Order Value: Increased 12% year over year.

• Cash and Equivalents: $169 million with zero debt at year-end.

• Share Buybacks: Repurchased 3.6 million shares for approximately $147 million in 2024.

• 2025 Revenue Growth Target: 20% with an adjusted EBITDA margin of 20%.

• Warning! GuruFocus has detected 4 Warning Signs with COMM.

Release Date: February 26, 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 2024, reaching $647 million, with an adjusted EBITDA of $150 million, marking a 40% year-over-year increase.

• The company achieved a strong free cash flow of $134 million, converting over 130% of net income into cash.

• ODDITY Tech Ltd (NASDAQ:ODD) has consistently beaten earnings guidance for seven consecutive quarters since going public.

• Both brands, Il Makiage and Spoiled Child, experienced double-digit revenue growth, with Il Makiage surpassing $500 million in revenue.

• The company is expanding its international presence, with promising growth in markets like the UK, Germany, and Australia, and plans for further expansion.

Negative Points

• ODDITY Tech Ltd (NASDAQ:ODD) faces increased media costs, which could impact customer acquisition expenses.

• The company anticipates lower gross margins for Brand 3 due to higher costs associated with prescription products and doctor networks.

• There is a potential risk if TikTok, a platform used for customer acquisition, ceases operations in the US, although the company claims minimal impact.

• ODDITY Tech Ltd (NASDAQ:ODD) is making significant investments in new brands and Oddity Labs, which may not contribute materially to 2025 revenue.

• The company is operating in a competitive market with challenges from traditional beauty companies and macroeconomic concerns affecting consumer confidence.

Q & A Highlights

Q: Can you elaborate on your international strategy and why you're focusing on it now? A: Oran Holtzman, Co-founder and CEO: We have been working on accelerating our international growth for years. In 2025, we decided to increase our presence in markets like the UK, Germany, and Australia, as well as test new markets. This decision was not due to any softness in the US market but rather a strategic choice to leverage the massive opportunity international markets present. Our competitors have a significant portion of their business internationally, and we aim to build localized experiences for each market to ensure strong performance from day one.