ODDITY (NASDAQ:ODD) is another IPO this year that impressed with its listing following the success of Cava (NYSE:CAVA). The ODD stock has climbed about 42% from its IPO price of $35 and is up about 1.23% in the after-hours. While ODD stock has trended higher, its focus on transformative technology like AI (Artificial Intelligence) to drive sales, profitable growth, and a high-margin addressable market could push its stock price higher.
But before we move ahead, let’s understand what ODDITY Tech does.
What is ODDITY Tech?
Israel-based ODDITY leverages technology to build digital-first brands with a focus on the global beauty and wellness industry. Its consumer tech company uses its proprietary technology, AI, data science, computer vision, and molecular discovery platforms to develop its beauty products.
The company launched two direct-to-consumer beauty brands, IL MAKIAGE, and SpoiledChild. Moreover, its platform has over 40 million users.
While ODDITY witnessed success with its two brand launches, let’s examine whether it will be able to disrupt the beauty and wellness market with its consumer tech platform.
ODDITY Stock – Opportunity Ahead
ODDITY offers strong growth ahead. The company turned profitable within 18 months of its launch, reflecting solid revenues and a double-digit EBITDA margin.
In 2022, ODDITY delivered revenues of $324.52 million of net revenue, compared to $222.56 million in 2021. Moreover, its operating income jumped to $27.67 million from $19.51 million in 2021. Thanks to its higher sales and operating income, ODDITY’s EPS jumped 50% year-over-year.
For the six months ended June 30, 2023, ODDITY expects to deliver revenue in the range of $300.2 million and $310.2 million, compared to $188.1 million in the prior-year period. While its revenues are projected to increase significantly, its bottom line is expected to more than double.
ODDITY expects to deliver net income in the range of $40.5 million and $44.5 million for the six months of 2023, compared to $19.6 million in the prior-year period.
While ODDITY’s top and bottom lines are growing rapidly, the company operates in a large and high-margin beauty and wellness market, which supports the upside in its stock price. The beauty and wellness industry is primarily dominated by offline brands and wholesale selling models, which ODDITY plans to disrupt with its direct-to-consumer digital-first brands and customized experience.
Overall, ODDITY is poised to deliver solid growth ahead, which could support the upside in its stock price.
