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    Oddity Tech (ODD)

    ODD Q2 2024: Repeat Customers Drive Record 32% EBITDA Margin

    Reported on Jul 24, 2025 (After Market Close)
    Pre-Earnings Price$38.60Last close (Aug 8, 2024)
    Post-Earnings Price$38.95Open (Aug 9, 2024)
    Price Change
    $0.35(+0.91%)
    • High repeat customer growth and robust revenue performance: Management highlighted that most revenue growth is driven by increased orders and a rising proportion of repeat sales, which underpin higher profitability and margin expansion.
    • Efficient media spend driving strong platform performance: Despite doubling media spend in recent periods, the company maintained excellent ROAS and achieved record EBITDA margins, demonstrating effective and scalable customer acquisition with a long-term view.
    • Broad geographical strength and resilient consumer demand: Executives pointed to strong performance across various regions with no signs of consumer spending softness, underscoring the company's diversified market appeal and consistent demand.
    • Delay in Near-Term Revenue Growth: The leadership acknowledged that investments in ODDITY LABS and new brands (Brand 3 and Brand 4) are primarily long-term plays and are not expected to materially contribute to revenue in the near term.
    • High Upfront Spending Risks Margin Pressure: The company plans to front-load investments, including significant SG&A and media spend increases, which could pressure adjusted EBITDA margins if revenue growth does not materialize as expected.
    • Execution and Launch Timing Uncertainty: The launch of new brands is dependent on product readiness and multiple build-out factors (e.g., telehealth platform and vision technology), posing risks that delays or execution missteps could hinder growth.
    1. Brand Launch
      Q: What drives Brand 3/4 timing and regional strength?
      A: Management emphasized that thorough product development and readiness—especially for Brand 3 with its app, tech, and vision components—dictate a H2 2025 launch, while broad U.S. strength shows no regional weakness or consumer softness.

    2. Media Efficiency
      Q: How is media spending affecting margins?
      A: They noted that despite nearly doubling media spend from H1 2022 to H1 2024, maintaining strong ROAS helped preserve a 32% adjusted EBITDA margin, demonstrating efficient capital use.

    3. Revenue Drivers
      Q: What fueled Q2 revenue upside?
      A: Management attributed growth to rising orders and a 6% increase in AOV, with both IL MAKIAGE and SpoiledChild posting double-digit gains driven by high repeat sales that underpin profitability.

    4. Investment Strategy
      Q: How do Brand 3/4 investments compare to LABS spend?
      A: They explained that while ODDITY LABS is a long-term platform build with evolving outputs, investments in Brand 3/4 follow a proven model similar to past successes, with leadership enhancements aimed at speeding up progress.

    5. Product Innovation
      Q: Will LABS deliver new product molecules soon?
      A: Management indicated that initial LABS outputs will begin to integrate into existing brands within the next 6–12 months, but key molecules for Brand 3/4 remain in development as part of a longer-term innovation plan.

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