Oddity Tech (NASDAQ:ODD) reported its fourth-quarter and full-year 2024 earnings on February 26, 2025, highlighting strong growth and investments in future expansion. The company is seeing growth through repeat sales and its direct-to-consumer business, with new brands on the horizon in 2025 and 2026.
Direct-to-Consumer Model Drives Superior Performance
The company's digital approach is delivering strong results amid broader industry headwinds. Oddity's direct connection with consumers enables precise inventory management and rapid optimization. This has helped Oddity avoid building up excess inventory or relying on heavy discounting to move product.
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We have a direct dialogue with consumers without retail interference. We understand the performance of every product by platform, by ad, by geography, by funnel, every hour of the day. We double down on what is working and continuously optimize to make sure we never hit a wall.
-- Oran Holtzman, Co-Founder, CEO & Director
Innovation Pipeline Expanding Rapidly
Beyond its core IL MAKIAGE and SpoiledChild brands, Oddity is preparing to launch Brand 3, a telehealth platform for skin and body issues like acne, eczema and hyperpigmentation, in the second half of 2025. Brand 4 is targeted for a launch in 2026. The company is also advancing ODDITY LABS, a biotech lab with over 60 scientists working on discovering and developing new molecules.
Our scientists are actively developing both short- and long-term innovation in skin, color, hair and body with a singular goal of exceeding the efficacy of existing products in these spaces.
-- Oran Holtzman, Co-Founder, CEO & Director
Strong Financial Foundation Supports Growth
The company delivered revenue growth of 27% to $647 million in 2024 while investing in future growth initiatives. Fourth-quarter revenue grew 27% to $97 million. IL MAKIAGE hit $500 million in revenue for the year, with SpoiledChild crossing $150 million this month.
We generated $134 million of free cash flow in 2024, an increase from the $85 million we generated in 2023. In fact, our free cash as a percentage of revenue was 21% in 2024 and 17% in 2023, leading among other beauty companies.
-- Lindsay Drucker Mann, Global CFO
Looking Ahead
Management remains committed to delivering 20% revenue growth and 20% adjusted EBITDA margins for 2025 despite significant investments in Brand 3, Brand 4, and ODDITY LABS. The company sees substantial opportunity in the continued shift to online beauty sales, with CEO Holtzman noting, "Online penetration can double from where we are today. And that's what keeps us very bullish about the future."
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David Kretzmann has positions in Oddity Tech. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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