Oddity Q2 results top expectations, raises FY25 guidance

Oddity Tech (NASDAQ:ODD) shares are on the defensive despite a beat on both the top- and bottom-line in the second quarter and raised full-year guidance, as the company’s solid results failed to impress Wall Street.

“We are pleased with our financial results for the second quarter, which beat our guidance on revenue, gross margin, adjusted EBITDA, and adjusted EPS. The third quarter is also off to a strong start,” said Lindsay Drucker Mann, ODDITY Global CFO. “The remainder of our year is driven mostly by a high visibility backlog of repeat orders. These factors altogether give us confidence to once again raise our full year outlook.”

The company earned an adjusted profit of $0.92 per share, up12% from the same quarter last year and 5 cents better than expected. And while adjusted EBITDA was also up 12%, adjusted EBITDA margin contracted by 350 basis points to 28.8%. Additionally, looking ahead to the current quarter, Oddity (NASDAQ:ODD) projects adjusted EBITDA to decline to a range between $26M to $28M versus $70M in Q2.

Led by double-digit sales growth in SpoiledChild and IL MAKIAGE, total sales were up 25% year-over-year to $241M.

For the current quarter, Oddity (NASDAQ:ODD) expects net revenue to be between $144M and $146M, up 21% to 23% from the same quarter last year, with a midpoint of $145M that is only slightly above estimates. Adjusted earnings are forecasted to be between $0.33 and $0.36, $0.34 at the midpoint versus $0.32 estimates.

For FY25, net revenue guidance was raised to a range of $799M to $804M from $790M to $798M, previously. This translates into a midpoint of $801.5M, which is above the $797.9M consensus estimate.

Profit guidance was raised to $2.06 to $2.09 per share from $1.99 to $2.04 per share, versus $2.04 estimates. Adjusted EBITDA was raised to $160M to $162M from prior range of $157M to $161M.