Oddity Lifts Guidance as It Posts Solid Profit in First Report Since IPO

Rather than selling through stores, Oddity Tech offers its makeup online, using sophisticated quizzes to figure out what products might suit customers. Oddity’s technology platform, which includes artificial intelligence, has helped the company to boost revenue and profits, Chief Financial Officer Lindsay Drucker Mann told Barron’s on Wednesday.

Based on the second-quarter performance, Oddity also lifted its forecasts for revenue, margins, and earnings for the full year. Management now expects net revenue between $475 million and $480 million, compared with an earlier forecast of $453 million. Adjusted earnings per share are expected to land between $1.11 and $1.17, higher than the prior $1.06.

“As excited as we are about our financial performance in the second quarter and our full year outlook, we’re even more excited about all of the engines we are stacking for growth, in 2024 and beyond,” Mann said.

Oddity currently has two online brands, IL Makiage and SpoiledChild, launched in 2018 and 2022, respectively. In April, the company acquired Revela, a biotechnology company dedicated to developing molecules for beauty and wellness, and set up an operation called Oddity Labs based around that business. And up next? New products will launch in 2024, and a third and fourth brand are planned for 2025.

The initial public offering of Oddity was priced at $35 a share and the stock made its trading debut on July 19. It opened that day at $49.10 and finished the session at $47.53, up 36% from the IPO price.

Shares of Oddity were rising 2.1% to $51.56 in premarket trading Thursday.

Write to Emily Dattilo at [email protected]