ODDITY Tech Ltd (ODD) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

GuruFocus.com11-09

Revenue: Increased 26% in Q3 to $119 million. Adjusted EBITDA: $25 million in Q3 with a margin of 20.9%. Gross Margin: 69.9%, exceeding guidance of 68%. Free Cash Flow: $119 million year-to-date. Cash...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nODDITY Tech Ltd (ODD) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-09 13:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/oddity-tech-ltd-odd-q3-050029643.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: Increased 26% in Q3 to $119 million.\nAdjusted EBITDA: $25 million in Q3 with a margin of 20.9%.\nGross Margin: 69.9%, exceeding guidance of 68%.\nFree Cash Flow: $119 million year-to-date.\nCash...</p>\n\n<a href=\"https://finance.yahoo.com/news/oddity-tech-ltd-odd-q3-050029643.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ODD","symbol_name":"ODDITY Tech Ltd.","start_time":0,"source_url":"https://finance.yahoo.com/news/oddity-tech-ltd-odd-q3-050029643.html","article_id":"2482497690","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482497690","pubTimestamp":1731128429,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: Increased 26% in Q3 to $119 million.Adjusted EBITDA: $25 million in Q3 with a margin of 20.9%.Cash and Equivalents: $248 million on the balance sheet with zero debt.Full Year Revenue Guidance: Raised to $642 million to $644 million, representing 26% to 27% growth.Full Year Gross Margin Guidance: Expected at 71.5%.Full Year Adjusted EBITDA Guidance: Between $147 million and $149 million.Share Repurchase: Approximately 1 million shares repurchased for $37 million in Q3.GuruFocus has detected 2 Warning Signs with ODD.A: AOV growth is driven by larger order sizes and a positive mix shift towards higher-priced products. Generative AI, particularly from Meta and Google, enhances our personalization and customization capabilities, especially for Brand 3's treatment offerings. - Lindsay Mann, G","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ODD":"ODDITY Tech Ltd."},"translate_title":"ODDITY Tech Ltd(ODD)2024年第三季度收益看涨期权亮点：强劲的收入增长和战略……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ODD":1},"content_text":"Revenue: Increased 26% in Q3 to $119 million.\nAdjusted EBITDA: $25 million in Q3 with a margin of 20.9%.\nGross Margin: 69.9%, exceeding guidance of 68%.\nFree Cash Flow: $119 million year-to-date.\nCash and Equivalents: $248 million on the balance sheet with zero debt.\nAdjusted Diluted EPS: $0.32 for Q3.\nFull Year Revenue Guidance: Raised to $642 million to $644 million, representing 26% to 27% growth.\nFull Year Gross Margin Guidance: Expected at 71.5%.\nFull Year Adjusted EBITDA Guidance: Between $147 million and $149 million.\nShare Repurchase: Approximately 1 million shares repurchased for $37 million in Q3.\n\n\nWarning! GuruFocus has detected 2 Warning Signs with ODD.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nODDITY Tech Ltd (NASDAQ:ODD) reported a 27% increase in revenue for the first nine months of 2024, reaching $523 million.\nThe company achieved an adjusted EBITDA of $135 million and generated $119 million in free cash flow, converting nearly 90% of EBITDA to cash.\nODDITY's direct-to-consumer model continues to outperform competitors, with a strong online presence and high consumer engagement.\nThe company is expanding its product line and leveraging technology to enhance personalization and customer satisfaction.\nODDITY has a robust financial position with $248 million in cash and zero debt, allowing for strategic investments and share repurchases.\n\n Negative Points \n\nGross margin compressed by 35 basis points to 69.9% and is expected to normalize further in the fourth quarter.\nThe company anticipates gross margin compression in 2025 due to investments in new brands and ODDITY LABS.\nDespite strong growth, the company faces potential challenges from increased competition and market saturation.\nODDITY's international expansion is progressing slowly, with a focus primarily on the US market.\nThe company does not expect material revenue contributions from new brands in 2025, despite significant upfront investments.\n\n Q & A Highlights \nQ: Can you provide more details on the strong start in Q4 and the progress of Brands 3 and 4? A: Q4 started strong, continuing the momentum from Q3, with high repeat rates and increased average order value (AOV). Brand 3 and Brand 4 are progressing as planned, with launches expected in the second half of next year. Brand 3 involves a telehealth platform with significant tech investments, while Brand 4 details remain limited. We do not expect material revenue contributions from these brands in 2025. - Lindsay Mann, Global CFO and Oran Holtzman, CEO\nQ: Can you explain the 9% increase in AOV and the role of generative AI in your operations? A: AOV growth is driven by larger order sizes and a positive mix shift towards higher-priced products. Generative AI, particularly from Meta and Google, enhances our personalization and customization capabilities, especially for Brand 3's treatment offerings. - Lindsay Mann, Global CFO and Oran Holtzman, CEO\nQ: What is the potential for international expansion, and are there plans to offer GLP drugs with Brand 3? A: International expansion is a significant opportunity, potentially comprising 50% of our business. We are successful in markets like Canada, UK, Germany, and Australia. For Brand 3, we focus on skin and body issues, not GLP drugs. - Oran Holtzman, CEO and Lindsay Mann, Global CFO\nQ: How do you view the impact of repeat business on your growth strategy? A: Repeat business is crucial, now making up the majority of our sales. Despite lower AOV from repeat orders, overall AOV is increasing due to larger order sizes and higher-priced product mixes. This repeat business supports our growth strategy and financial targets. - Lindsay Mann, Global CFO\nQ: What are the expectations for revenue growth and margin compression in 2025? A: We anticipate 20% revenue growth in 2025, with adjusted EBITDA margin around 20%. This includes significant investments in new brands and ODDITY LABS, which will impact margins but not materially contribute to revenue next year. - Lindsay Mann, Global CFO\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482497690"}