Oddity Tech's Q4 2024 Earnings Call: Unpacking Contradictions in International Expansion and Consumer Behavior

These are the key contradictions discussed in Oddity Tech Ltd.'s latest 2024Q4 earnings call, specifically including: International Expansion Strategy, and Consumer Environment and Behavior:



Strong Financial Performance:
- Oddity Tech Ltd. reported revenue growth of 27% to $647 million in 2024, with adjusted EBITDA of $150 million at a margin of 23.3%, and generated $134 million of free cash flow.
- The growth was driven by the strong performance of its brands, Il Makiage and SpoiledChild, and a focus on online sales and direct-to-consumer strategies.

Direct-to-Consumer Model and Repeat Sales:
- Oddity's direct-to-consumer model contributed to a high repeat sales rate, with repeat revenue reaching over 100%, indicating strong customer satisfaction and high-margin sales.
- The model allowed the company to maintain strong profitability and customer loyalty despite a challenging macroeconomic environment.

Product Innovation and Market Expansion:
- Il Makiage crossed $500 million in revenue in 2024, while SpoiledChild reached $150 million, driven by product innovations like skin care lines.
- The focus on high-performance products and market expansion, particularly in international markets, is expected to continue driving growth.

Investment in Innovation and Future Growth:
- Oddity Labs is investing in biotechnology to develop new molecules and delivery systems, with plans to launch new products in Brand 3 and Brand 4.
- These investments are aimed at disrupting the industry and driving future growth, with significant resources allocated to R&D and strategic acquisitions.