Oddity Tech Reports Record Third Quarter Results, Raises Outlook
Oddity Tech reported strong Q3 2024 results with record net revenue of $119 million, up 26% year-over-year. The company achieved record Q3 adjusted EBITDA of $25 million and net income of $18 million, up 362% year-over-year. Nine-month performance showed net revenue of $523 million, up 27% year-over-year, with adjusted EBITDA of $135 million. The company raised its full-year 2024 outlook, projecting net revenue between $642-644 million and adjusted EBITDA between $147-149 million. With zero debt and $248 million in cash and equivalents, Oddity maintains a strong financial position.
Oddity Tech ha riportato risultati solidi per il terzo trimestre del 2024 con un fatturato netto record di 119 milioni di dollari, in aumento del 26% rispetto all'anno precedente. L'azienda ha raggiunto un EBITDA rettificato record per il terzo trimestre di 25 milioni di dollari e un utile netto di 18 milioni di dollari, in aumento del 362% su base annua. Le performance nei nove mesi hanno mostrato un fatturato netto di 523 milioni di dollari, in crescita del 27% rispetto all'anno precedente, con un EBITDA rettificato di 135 milioni di dollari. L'azienda ha rivisto al rialzo le previsioni per l'intero anno 2024, prevedendo un fatturato netto compreso tra 642 e 644 milioni di dollari e un EBITDA rettificato tra 147 e 149 milioni di dollari. Con zero debiti e 248 milioni di dollari in contante e equivalenti, Oddity mantiene una posizione finanziaria solida.
Oddity Tech reportó resultados sólidos en el tercer trimestre de 2024 con un ingreso neto récord de 119 millones de dólares, un aumento del 26% en comparación con el año anterior. La compañía alcanzó un EBITDA ajustado récord para el tercer trimestre de 25 millones de dólares y un ingreso neto de 18 millones de dólares, un incremento del 362% interanual. El desempeño en los nueve meses mostró un ingreso neto de 523 millones de dólares, un aumento del 27% respecto al año anterior, con un EBITDA ajustado de 135 millones de dólares. La empresa elevó su pronóstico para todo el año 2024, proyectando un ingreso neto entre 642 y 644 millones de dólares y un EBITDA ajustado entre 147 y 149 millones de dólares. Sin deudas y con 248 millones de dólares en efectivo y equivalentes, Oddity mantiene una posición financiera sólida.
Oddity Tech는 2024년 3분기에 기록적인 순수익 1억 1,900만 달러를 보고하며, 작년 대비 26% 증가했습니다. 이 회사는 3분기 조정 EBITDA 2,500만 달러와 순이익 1,800만 달러를 기록하며, 이는 작년 대비 362% 증가한 수치입니다. 아홉 달간의 실적은 순수익 5억 2,300만 달러로, 작년 대비 27% 증가했으며, 조정 EBITDA는 1억 3,500만 달러입니다. 이 회사는 2024년 전체 연간 전망을 상향 조정하여 순수익 6억 4,200만에서 6억 4,400만 달러와 조정 EBITDA 1억 4,700만에서 1억 4,900만 달러를 예상하고 있습니다. 0의 부채와 2억 4,800만 달러의 현금 및 현금환 equivalents으로 Oddity는 강력한 재정상태를 유지하고 있습니다.
Oddity Tech a annoncé des résultats solides pour le troisième trimestre 2024 avec un chiffre d'affaires net record de 119 millions de dollars, en hausse de 26 % par rapport à l'année précédente. L'entreprise a atteint un EBITDA ajusté record de 25 millions de dollars pour le troisième trimestre et un bénéfice net de 18 millions de dollars, en hausse de 362 % par rapport à l'année précédente. La performance sur neuf mois a révélé un chiffre d'affaires net de 523 millions de dollars, en hausse de 27 % sur l'année, avec un EBITDA ajusté de 135 millions de dollars. L'entreprise a relevé ses prévisions pour l'ensemble de l'année 2024, projetant un chiffre d'affaires net entre 642 et 644 millions de dollars et un EBITDA ajusté entre 147 et 149 millions de dollars. Avec zéro dette et 248 millions de dollars en liquidités et équivalents, Oddity maintient une solide position financière.
Oddity Tech meldete starke Ergebnisse für das dritte Quartal 2024 mit einem Rekordnettoerlös von 119 Millionen Dollar, was einem Anstieg von 26 % im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte einen Rekord-EBITDA von 25 Millionen Dollar für das dritte Quartal und einen Nettogewinn von 18 Millionen Dollar, was einem Anstieg von 362 % im Jahresvergleich entspricht. Die Leistung im Neun-Monats-Zeitraum zeigte einen Nettoerlös von 523 Millionen Dollar, was einem Anstieg von 27 % im Vergleich zum Vorjahr entspricht, mit einem angepassten EBITDA von 135 Millionen Dollar. Das Unternehmen hob seine Prognose für das gesamte Jahr 2024 an und erwartet einen Nettoerlös zwischen 642 und 644 Millionen Dollar und ein angepasstes EBITDA zwischen 147 und 149 Millionen Dollar. Mit null Schulden und 248 Millionen Dollar in liquiden Mitteln und Äquivalenten hält Oddity eine starke Finanzposition aufrecht.
- Record Q3 revenue of $119M, up 26% YoY
- Net income surge of 362% YoY to $18M
- Strong cash position of $248M with zero debt
- Free cash flow of $119M in first nine months
- Raised full-year guidance across all metrics
- High repeat customer rates maintaining growth
- Gross margin declined 35 bps YoY to 69.9%
- Adjusted EBITDA margin decreased 112 bps YoY to 20.9%
- Q4 guidance shows lower expected margins
- Record third quarter net revenue of $119 million, up 26% year-over-year
- Record third quarter adjusted EBITDA of $25 million
- Record third quarter net income of $18 million, up 362% year-over-year, and record third quarter adjusted net income of $20 million, up 53% year-over-year
- Record nine-month net revenue of
$523 million , up27% year-over-year - Record nine-month adjusted EBITDA of $135 million
- Record nine-month net operating cash flow of $122 million and free cash flow of $119 million
NEW YORK, Nov. 06, 2024 (GLOBE NEWSWIRE) -- ODDITY Tech Ltd. (NASDAQ: ODD) today announced its financial results for the third quarter ended September 30, 2024.
“The beauty industry is transforming, and we believe ODDITY is leading this transformation,” said Oran Holtzman, ODDITY co-founder and CEO. “Our outstanding third quarter results demonstrate once again how our investments in the two most important vectors of industry growth – consumer demand for online and for high performance products – are driving outsized, profitable growth, market share gains, and powerful cash flows.”
“The strength and resilience of our direct-to-consumer model is on full display in this market backdrop, where some of our competitors are experiencing slowing sales, weaker foot traffic, and excess inventory conditions. In contrast, we are consistently delivering strong, profitable growth across brands, products, and categories in every environment,” Holtzman continued. “We have massive engagement with our users on a daily basis, directly, with no intermediaries. We have the data to predict which consumers are in the market to buy and which products they are likely seeking. That direct interaction drives high consumer satisfaction and enables us to have greater predictability in our business. Accordingly, we exceeded our revenue and EBITDA objectives again this quarter, just as we have done in the past six quarters since we took the company public, and I remain very bullish on our business.”
ODDITY achieved key objectives during the third quarter and the first nine months of the year:
- Exceeding financial guidance for the third quarter ended September 30, 2024 across every metric and raising the full year 2024 outlook.
- High, profitable growth at both IL MAKIAGE and SpoiledChild brands across markets and products.
- Great progress in developing brands 3 and 4 to disrupt additional large beauty and wellness categories.
- Continued development and expansion of the ODDITY LABS molecule discovery platform.
- Delivering
$96 million of net income and$135 million of adjusted EBITDA in the first nine months of 2024. - Generating
$119 million of free cash flow in the first nine months of 2024. - A strong balance sheet position including
$248 million of cash, cash equivalents, and investments, with zero outstanding debt, as of September 30, 2024. - Repurchasing 1 million shares for
$37 million during the third quarter, with a total buyback of$47 million in the first nine months of 2024.$103 million remains on the$150 million buyback authorization.
“We are pleased with our financial results for the third quarter, which beat our guidance across revenue, gross margin, adjusted EBITDA, and adjusted diluted EPS,” said Lindsay Drucker Mann, ODDITY Global CFO. “Our excellent Q324 and year-to-date results, combined with a strong start to Q4 and our sustained high repeat rates allow us to once again raise our full year 2024 financial outlook across all metrics.”
Third Quarter Fiscal 2024 Financial Highlights1:
Results for the third quarter ended September 30, 2024 are presented below in comparison to the same period in the prior year:
- Net revenue was
$119 million compared to$94 million in the third quarter of 2023, representing a26% year-over-year increase. - Gross profit was
$83 million compared to$66 million in the third quarter of 2023, representing a25% year-over-year increase. Gross margin was69.9% decreasing by 35 bps compared to gross margin of70.3% in the third quarter of 2023. - Net income was
$18 million compared to$3.8 million in the third quarter of 2023. Net income margin was14.9% compared to4.1% in the third quarter of 2023. - Adjusted net income was
$20 million compared to$13 million in the third quarter of 2023, representing a53% year-over-year increase. Adjusted net income margin was16.7% compared to13.8% in the third quarter of 2023. - Adjusted EBITDA was
$25 million compared to$21 million in the third quarter of 2023, representing a20% increase. Adjusted EBITDA margin was20.9% , decreasing by 112 bps compared to adjusted EBITDA margin of22.0% in the third quarter of 2023. - Diluted EPS were
$0.29 for the third quarter of 2024 compared to$0.06 in the third quarter of 2023. Adjusted diluted EPS were$0.32 for the third quarter of 2024 compared to$0.21 in the third quarter of 2023. - Cash and cash equivalents, restricted cash, short-term deposits and marketable securities were
$248 million , with no outstanding debt as of September 30, 2024.
The table below sets forth our actual results for the three months ended September 30, 2024 and the low and high end of our guidance range regarding our results for the third quarter of 2024 as issued on August 7, 2024.
| Three months ended September 30, 2024 | |||
| Actual Results | Guidance Low End | Guidance High End | |
| Net Revenue | |||
| Gross Margin | |||
| Adjusted EBITDA | |||
| Adjusted Diluted EPS | |||
Financial Outlook
ODDITY expects to deliver 2024 financials ahead of its long-term growth algorithm of
ODDITY is raising guidance for the full year ending December 31, 2024:
- Net revenue between
$642 million and$644 million , representing year-over-year growth between26% and27% . - Gross margin of approximately
71.5% . - Adjusted EBITDA between
$147 million and$149 million . - Adjusted diluted EPS between
$1.85 and$1.87 . This assumes an effective tax rate of approximately21.5% and average fully diluted shares of approximately 63 million.
| Current FY2024 Outlook | Prior FY2024 Outlook | |
| Net Revenue | | |
| Gross Margin | ||
| Adjusted EBITDA | ||
| Adjusted Diluted EPS |
ODDITY is providing the following guidance for the fourth quarter ending December 31, 2024:
- Net revenue between
$118 million and$120 million , representing year-over-year growth between22% and24% . - Gross margin of approximately
68.0% . - Adjusted EBITDA between
$12 million and$14 million . - Adjusted diluted EPS between
$0.11 and$0.13 . This assumes an effective tax rate of approximately30.0% and average fully diluted shares of approximately 64.0 million.
| Q4 2024 Outlook | |
| Net Revenue | |
| Gross Margin | |
| Adjusted EBITDA | |
| Adjusted Diluted EPS |
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted net income margin, Adjusted diluted EPS and Free cash flow are non-GAAP financial measures. Please see the sections titled “Non GAAP Financial Measures” and “Reconciliations of GAAP to Non-GAAP Measures” below for more information regarding ODDITY’s use of non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. ODDITY has not provided a quantitative reconciliation of its Adjusted EBITDA and Adjusted diluted EPS outlook to the corresponding net income and diluted EPS GAAP measures, because the quantification of certain items included in the calculation of GAAP net income and GAAP diluted EPS cannot be calculated or predicted at this time without unreasonable efforts. ODDITY is unable to address the probable significance of the unavailable reconciling items, which could have a potentially unpredictable, and potentially significant, impact on its future GAAP financial results.
The financial outlook figures presented above are forward-looking statements that are subject to a variety of assumptions and estimates. Actual results may differ materially from ODDITY’s financial outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.
Conference Call Details:
A conference call to discuss ODDITY’s Q3 2024 financial and business results and outlook is scheduled for tomorrow, November 7, 2024, at 8:30 a.m. ET. To participate, please dial 1-800-717-1738 (US) or 1-646-307-1865 (international) and the conference ID is 24334. A webcast of the call will be accessible on the Investors section of ODDITY’s website at https://investors.oddity.com. A recording will be available shortly after the conclusion of the call. To access the replay, please dial 1-844-512-2921 or 1-412-317-6671 (international). An archive of the webcast will be available on the Investors section of ODDITY’s website.
Non-GAAP Financial Measures:
In addition to the GAAP financial measures set forth in this press release, ODDITY has included the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted net income margin, Adjusted diluted EPS and Free cash flow. ODDITY believes these non-GAAP financial measures provide useful supplemental information to management and investors to help evaluate ODDITY’s business, measure its performance, identify trends, prepare financial projections and make business decisions.
ODDITY defines “Adjusted EBITDA” as net income before financial expenses (income), net, taxes on income, and depreciation and amortization as further adjusted to exclude share-based compensation expense and non-recurring items. “Adjusted EBITDA margin” is defined as Adjusted EBITDA divided by net revenue. ODDITY believes Adjusted EBITDA and Adjusted EBITDA margin are useful for financial and operational decision-making and as a means to evaluate period-to-period comparisons. By excluding certain items that may not be indicative of its recurring core operating results, ODDITY believes that Adjusted EBITDA and Adjusted EBITDA margin provide meaningful supplemental information regarding its performance. In addition, Adjusted EBITDA and Adjusted EBITDA margin are widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as depreciation and amortization, interest expense, and interest income, which can vary substantially from company to company depending on their financing and capital structures and the method by which their assets were acquired.
ODDITY defines “Adjusted net income” as net income adjusted for the impact of share-based compensation, non-recurring items and the tax effect of non-GAAP adjustments and “Adjusted net income margin” as Adjusted net income divided by net revenue. In addition, ODDITY defines “Adjusted diluted earnings per share” as Adjusted net income divided by diluted shares outstanding. ODDITY believes the presentations of Adjusted net income, Adjusted net income margin, and Adjusted diluted earnings per share are useful because they are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, ODDITY believes these measures are helpful in highlighting trends in our operating results, because they exclude the impact of items that are outside the control of management or not reflective of our ongoing operations and performance.
ODDITY defines “Free cash flow” as net cash provided by operating activities less purchase of property, plant and equipment.
ODDITY’s non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, its financial results prepared in accordance with U.S. GAAP. Other companies, including companies in our industry, may calculate these measures differently or not at all, which reduces their usefulness as comparative measures.
Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included with the financial tables at the end of this release under the heading “Reconciliations of GAAP to Non-GAAP Measures.”
Forward-Looking Statements:
Certain statements in this press release may constitute “forward-looking” statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 that relate to our current expectations and views of future events. In some cases, these forward-looking statements can be identified by words or phrases such as “aim,” “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “project,” “shall,” “should,” “target,” “will,” “seek,” or similar words. The absence of these words does not mean that a statement is not forward-looking. These forward-looking statements address various matters, including ODDITY’s business strategy, market opportunity, ability to deliver superior products and experiences, potential long-term success and ODDITY’s outlook for the fourth quarter 2024 and the full year ending December 31, 2024.These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the following: our ability to maintain the value of our brands; our ability to anticipate and respond to market trends and changes in consumer preferences; our ability to attract new customers, retain existing customers and maintain or increase sales to those customers; our ability to maintain a strong base of engaged customers and content creators; the loss of suppliers or shortages or disruptions in the supply of raw materials or finished products; our ability to accurately forecast customer demand, manage our inventory, and plan for future expenses; our future rate of growth; competition; the fluctuating cost of raw materials; the illegal distribution and sale by third parties of counterfeit versions of our products or the unauthorized diversion by third parties of our products; changes in, or disruptions to, our shipping arrangements; our ability to manage our growth effectively; a general economic downturn or sudden disruption in business conditions; our ability to successfully introduce and effectively market new brands, or develop and introduce new, innovative, and updated products; foreign currency fluctuations; product returns; our ability to execute on our business strategy; our ability to maintain a high level of customer satisfaction; our ability to comply with and adapt to changes in laws and regulatory requirements applicable to our business, including with respect to regulation of the internet and e-commerce, evolving AI-technology related laws, tax laws, the anti-corruption, trade compliance, anti-money laundering, and terror finance and economic sanctions laws and regulations, consumer protection laws, and data privacy and security laws; failure of our products to comply with quality standards and risks related to product liability claims; trade restrictions; existing and potential tariffs; any data breach or other security incident of our information technology systems, or those of our third-party service providers or cyberattacks; risks related to online transactions and payment methods; any failure to obtain, maintain, protect, defend, or enforce our intellectual property rights; conditions in Israel and the Middle East generally, including as a result of geopolitical conflict; the concentration of our voting power as a result of our dual class structure; our status as a foreign private issuer; and other risk factors set forth in the section titled “Risk Factors” in our Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 6, 2024, and other documents filed with or furnished to the SEC. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements.
About ODDITY:
ODDITY is a consumer tech company that builds and scales digital-first brands to disrupt the offline-dominated beauty and wellness industries. The company serves approximately 50 million users with its AI-driven online platform, deploying data science to identify consumer needs, and developing solutions in the form of beauty and wellness products. ODDITY owns IL MAKIAGE and SpoiledChild. The company operates with business headquarters in New York City, an R&D center in Tel Aviv, Israel, and a biotechnology lab in Boston.
Contacts:
Press:
Michael Braun
michaelb@oddity.com
Investor:
| ODDITY TECH LTD. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| U.S. dollar in thousands (except per share data) | ||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Unaudited | ||||||||||||||||
| Net revenue | $ | 118,998 | $ | 94,474 | $ | 523,400 | $ | 411,439 | ||||||||
| Cost of revenue | 35,766 | 28,060 | 144,965 | 120,695 | ||||||||||||
| Gross profit | 83,232 | 66,414 | 378,435 | 290,744 | ||||||||||||
| Selling, general and administrative | 63,698 | 60,102 | 266,878 | 222,878 | ||||||||||||
| Operating income | 19,534 | 6,312 | 111,557 | 67,866 | ||||||||||||
| Financial income, net | (3,052 | ) | (2,146 | ) | (9,677 | ) | (2,883 | ) | ||||||||
| Income before taxes on income | 22,586 | 8,458 | 121,234 | 70,749 | ||||||||||||
| Taxes on income | 4,867 | 4,624 | 25,041 | 17,328 | ||||||||||||
| Net income | $ | 17,719 | $ | 3,834 | $ | 96,193 | $ | 53,421 | ||||||||
| Weighted-average number of shares - basic | 57,683 | 56,446 | 57,647 | 54,918 | ||||||||||||
| Weighted-average number of shares - diluted | 61,751 | 61,397 | 62,138 | 58,278 | ||||||||||||
| Basic earnings per share | $ | 0.31 | $ | 0.07 | $ | 1.67 | $ | 0.97 | ||||||||
| Diluted earnings per share | $ | 0.29 | $ | 0.06 | $ | 1.55 | $ | 0.92 | ||||||||
| ODDITY TECH LTD. | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| U.S. dollar in thousands | ||||||
| September 30, | December 31, | |||||
| 2024 | 2023 | |||||
| ASSETS | (Unaudited) | (Audited) | ||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 85,949 | $ | 36,538 | ||
| Short-term deposits | 57,189 | 78,000 | ||||
| Marketable securities | 4,499 | 1,108 | ||||
| Trade receivables | 10,847 | 9,916 | ||||
| Inventories | 89,513 | 84,106 | ||||
| Prepaid expenses and other current assets | 12,059 | 14,144 | ||||
| Total current assets | 260,056 | 223,812 | ||||
| LONG-TERM ASSETS: | ||||||
| Marketable securities | 100,462 | 50,507 | ||||
| Property, plant and equipment, net | 9,670 | 9,245 | ||||
| Deferred tax asset, net | 7,586 | 3,924 | ||||
| Intangible assets, net | 35,681 | 36,001 | ||||
| Goodwill | 64,904 | 64,904 | ||||
| Operating lease right-of-use assets | 24,390 | 13,557 | ||||
| Other assets | 3,040 | 2,956 | ||||
| Total long-term assets | 245,733 | 181,094 | ||||
| Total assets | $ | 505,789 | $ | 404,906 | ||
| ODDITY TECH LTD. | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| U.S. dollar in thousands | ||||||
| September 30, | December 31, | |||||
| 2024 | 2023 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | (Unaudited) | (Audited) | ||||
| CURRENT LIABILITIES: | ||||||
| Trade payables | $ | 62,177 | $ | 56,185 | ||
| Other accounts payable and accrued expenses | 56,527 | 49,325 | ||||
| Operating lease liabilities, current | 6,728 | 3,802 | ||||
| Total current liabilities | 125,432 | 109,312 | ||||
| LONG-TERM LIABILITIES: | ||||||
| Operating lease liabilities, non-current | 16,481 | 8,712 | ||||
| Other long-term liabilities | 3,832 | 3,775 | ||||
| Total liabilities | 145,745 | 121,799 | ||||
| SHAREHOLDERS' EQUITY: | ||||||
| Class A Ordinary shares | 15 | 14 | ||||
| Class B Ordinary shares | 3 | 3 | ||||
| Additional paid-in capital | 158,889 | 178,910 | ||||
| Accumulated other comprehensive income | 3,166 | 2,402 | ||||
| Retained earnings | 197,971 | 101,778 | ||||
| Total shareholders' equity | 360,044 | 283,107 | ||||
| Total liabilities and shareholders' equity | $ | 505,789 | $ | 404,906 | ||
| ODDITY TECH LTD. | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| U.S. dollars in thousands | ||||||||
| Nine months ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | (Unaudited) | |||||||
| Net income | $ | 96,193 | $ | 53,421 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 7,164 | 6,234 | ||||||
| Share-based compensation | 16,562 | 16,604 | ||||||
| Accretion of discount of marketable securities | (3,683 | ) | - | |||||
| Deferred income taxes | (3,293 | ) | (58 | ) | ||||
| Increase in trade receivables | (931 | ) | (395 | ) | ||||
| Decrease (increase) in prepaid expenses and other receivables | 461 | (3,024 | ) | |||||
| (Increase) decrease in inventories | (5,407 | ) | 254 | |||||
| Increase (decrease) in trade payables | 6,039 | (3,048 | ) | |||||
| Increase in other accounts payable and accrued expenses | 8,468 | 9,616 | ||||||
| Change in operating lease right-of-use assets | 3,962 | 3,470 | ||||||
| Change in operating lease liability | (4,100 | ) | (3,861 | ) | ||||
| Other | 164 | 337 | ||||||
| Net cash provided by operating activities | 121,599 | 79,550 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchase of property, plant and equipment | (2,398 | ) | (1,582 | ) | ||||
| Capitalization of software development costs | (3,417 | ) | (2,440 | ) | ||||
| Investment in marketable securities | (49,472 | ) | - | |||||
| Maturities of (investments in) short-term deposits | 20,811 | (80,000 | ) | |||||
| Cash paid in conjunction with acquisition, net of cash acquired | - | (23,173 | ) | |||||
| Other investing activities | (590 | ) | (1,879 | ) | ||||
| Net cash used in investing activities | (35,066 | ) | (109,074 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from initial public offering, net of issuance costs | - | 55,410 | ||||||
| Repurchase of Class A Ordinary shares | (47,283 | ) | - | |||||
| Proceeds from exercise of options | 9,641 | 1,671 | ||||||
| Repayment of loans and borrowings | - | (4,313 | ) | |||||
| Other financing activities | (1,629 | ) | - | |||||
| Net cash (used in) provided by financing activities | (39,271 | ) | 52,768 | |||||
| Effect of exchange rate fluctuations on cash and cash equivalents | 55 | (259 | ) | |||||
| Net increase in cash, cash equivalents and restricted cash | 47,317 | 22,985 | ||||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 38,766 | 43,114 | ||||||
| Cash, cash equivalents and restricted cash at the end of the period | $ | 86,083 | $ | 66,099 | ||||
| ODDITY TECH LTD. | |||||||||||||||
| RECONCILLIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION | |||||||||||||||
| U.S. dollars in thousands | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| Reconciliation of Net Income and Adjusted EBITDA |
|
|
| ||||||||||||
| Net Income | $ | 17,719 | $ | 3,834 | $ | 96,193 | $ | 53,421 | |||||||
| Financial income, net | (3,052 | ) | (2,146 | ) | (9,677 | ) | (2,883 | ) | |||||||
| Taxes on Income | 4,867 | 4,624 | 25,041 | 17,328 | |||||||||||
| Depreciation and amortization | 2,566 | 2,234 | 7,164 | 6,234 | |||||||||||
| Share-based compensation | 2,741 | 12,234 | 16,562 | 16,604 | |||||||||||
| Non-recurring adjustments | - | - | - | 300 | |||||||||||
| Adjusted EBITDA | $ | 24,841 | $ | 20,780 | $ | 135,283 | $ | 91,004 | |||||||
|
Reconciliation of Net Income and Adjusted Net Income | |||||||||||||||
| Net Income | $ | 17,719 | $ | 3,834 | $ | 96,193 | $ | 53,421 | |||||||
| Share-based compensation | 2,741 | 12,234 | 16,562 | 16,604 | |||||||||||
| Non-recurring adjustments | - | - | - | 300 | |||||||||||
| Tax impact | (595 | ) | (3,058 | ) | (3,421 | ) | (4,012 | ) | |||||||
| Adjusted Net Income | $ | 19,865 | $ | 13,010 | $ | 109,334 | $ | 66,313 | |||||||
| Diluted earnings per share | $ | 0.29 | | $ | 0.06 | | $ | 1.55 | | $ | 0.92 | | |||
| Adjusted diluted earnings per share | $ | 0.32 | | $ | 0.21 | | $ | 1.76 | | $ | 1.14 | | |||
| ODDITY TECH LTD. | |||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | |||||||
| U.S. dollars in thousands | |||||||
| Reconciliation of net cash provided by operating activities to free cash flow | |||||||
| Nine Months Ended September 30, | |||||||
| 2024 | 2023 | ||||||
| (Unaudited) | (Unaudited) | ||||||
| Net operating cash flow | $ | 121,599 | $ | 79,550 | |||
| Purchase of property and equipment | (2,398 | ) | (1,582 | ) | |||
| Free cash flow | $ | 119,201 | $ | 77,968 | |||
Cash, Cash equivalents, and Investments | |||||||
| September 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| (Unaudited) | (Audited) | ||||||
| Cash and Cash equivalents | $ | 85,949 | $ | 36,538 | |||
| Short-term deposits and restricted cash | 57,323 | 80,228 | |||||
| Marketable securities | 104,961 | 51,615 | |||||
| Total Cash and Investments | $ | 248,233 | $ | 168,381 | |||
Net revenue by sales channel | |||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||
| Online direct-to-consumer | $ | 110,186 | $ | 87,439 | $ | 495,236 | $ | 387,253 | |||||||||||
| Percent of net revenue | 93 | % | 93 | % | 95 | % | 94 | % | |||||||||||
| Other (Israel retail, marketing affiliates) | $ | 8,812 | $ | 7,035 | $ | 28,164 | $ | 24,186 | |||||||||||
| Percent of net revenue | 7 | % | 7 | % | 5 | % | 6 | % | |||||||||||
| Net Revenue | $ | 118,998 | $ | 94,474 | $ | 523,400 | $ | 411,439 | |||||||||||
Note: ODDITY does not sell to resellers or distributors. Online direct-to-consumer revenues are generated directly by ODDITY through its online platform only (i.e. ILMAKIAGE.com and SpoiledChild.com).All revenue in Israel, including revenue generated in stores, online, and from beauty academies, is included in Other.
______________________
1 Throughout this press release results greater than
FAQ
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How much did Oddity Tech (ODD) earn in net income for Q3 2024?
What is Oddity Tech's (ODD) revised revenue guidance for full-year 2024?
How much cash does Oddity Tech (ODD) have as of Q3 2024?
