Oddity Tech, the Israeli cosmetics platform utilizing artificial intelligence to develop products, recently revealed its first-quarter results, which exceeded expectations. The company reported earnings per share of 61 cents adjusted, surpassing the anticipated 49 cents. Additionally, revenue reached $211.63 million, outperforming the $205 million that Wall Street analysts had projected.
For the three-month period ending on March 31, Oddity Tech reported net income of $32.98 million, showing significant growth from the previous year. Sales also saw a notable increase, reaching $212 million, a 28% rise from the previous year’s $166 million. Due to this strong performance, the company raised its full-year revenue guidance to between $626 million and $635 million, up from the previous forecast of $620 million to $630 million.
Analysts had predicted full-year revenue to be around $627 million, slightly higher than Oddity Tech’s updated guidance. Similarly, adjusted earnings per share are now expected to be between $1.57 and $1.62, an increase from the prior range of $1.49 to $1.54. Both metrics surpassed analyst expectations, with projections coming in at $1.51 per share.
Looking ahead, Oddity Tech anticipates sales in the current quarter to be in the range of $185 million to $189 million. Adjusted earnings per share are expected to be between 61 cents and 64 cents. These figures also exceed analyst forecasts, with revenue projected at $186.5 million and earnings per share at 56 cents.
Following the release of these impressive results, shares of Oddity Tech surged nearly 10% in extended trading. Since its debut on the Nasdaq in July, the company has been focused on leveraging AI technology to disrupt the beauty and wellness industry. By developing innovative products and personalized recommendations, Oddity Tech aims to redefine how consumers interact with beauty brands.
Contrary to Ulta Beauty’s recent warning of a slowdown in the beauty category, Oddity Tech’s CFO, Lindsay Drucker Mann, remains optimistic about the company’s trajectory. She emphasized that there is no slowdown for Oddity Tech, citing strong demand from both new and existing users. Drucker Mann highlighted the industry’s shift towards online platforms and high-efficacy products as key drivers of growth, positioning Oddity Tech as a leader in this evolving landscape.
Oddity Tech’s exceptional performance in the first quarter of the year demonstrates its resilience and ability to defy market trends. By focusing on innovation and meeting consumer needs in a changing industry, the company continues to establish itself as a prominent player in the beauty and wellness sector.