Q3 2024 Oddity Tech Ltd Earnings Call Transcript
Key Points
- ODDITY Tech Ltd (ODD) reported a 27% increase in revenue for the first nine months of 2024, reaching $523 million.
- The company achieved an adjusted EBITDA of $135 million and generated $119 million in free cash flow, converting nearly 90% of EBITDA to cash.
- ODDITY's direct-to-consumer model continues to outperform competitors, with a strong online presence and high consumer engagement.
- The company is expanding its product line and leveraging technology to enhance personalization and customer satisfaction.
- ODDITY has a robust financial position with $248 million in cash and zero debt, allowing for strategic investments and share repurchases.
- Gross margin compressed by 35 basis points to 69.9% and is expected to normalize further in the fourth quarter.
- The company anticipates gross margin compression in 2025 due to investments in new brands and ODDITY LABS.
- Despite strong growth, the company faces potential challenges from increased competition and market saturation.
- ODDITY's international expansion is progressing slowly, with a focus primarily on the US market.
- The company does not expect material revenue contributions from new brands in 2025, despite significant upfront investments.
Good morning and welcome to the ODDITY's third-quarter 2024 earnings conference call. Today's call is being recorded and we have allocated time for prepared remarks and Q&A. At this time, I'd like to turn the conference over to Maria Lycouris, Investor Relations for ODDITY. Thank you. You may begin.
Thank you, operator. I'm joined by Oran Holtzman, ODDITY's Co-Founder and CEO, and Lindsay Drucker Mann, ODDITY's Global CFO. As a reminder, management's remarks on this call that do not concern past events are forward-looking statements.
These may include predictions, expectations, or estimates, including statements about ODDITY's business strategy, market opportunity, future financial performance, and potential long-term success. Forward-looking statements involve risks and uncertainties, and actual results could differ materially due to a variety of factors.
These factors are described under forward-looking statements in our earnings press release issued yesterday and in our Annual Report
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
