Why ODDITY Tech Shares Are Diving Today

ODDITY Tech ODD shares are trading lower after the company reported fourth-quarter FY23 results and issued FY24 EPS guidance below estimates.

Net revenue rose 44% Y/Y to $97.2 million, beating the consensus of $86.4 million. Gross profit rose 53% Y/Y to $67 million, with a margin expansion of 400 bps Y/Y to 69.4%.

Adjusted EBITDA jumped to $16.3 million from $2.6 million the prior year, with a margin of 16.8% vs. 3.9% a year ago. Adjusted EPS of $0.17 beat the street view of $0.12.

As of December 31, 2023, cash and cash equivalents, restricted cash, short-term deposits and marketable securities were $168 million, with no outstanding debt.

Lindsay Drucker Mann, ODDITY Global CFO, said, “We continue to aggressively invest in future growth initiatives, including ODDITY LABS and future brand launches, where we expect to continue investing in 2024. Q124 is off to a very strong start, and because of our high repeat rates, we have high confidence and visibility into achieving our full year 2024 objectives.”

Outlook: ODDITY Tech expects first-quarter adjusted EPS of $0.47-$0.50 vs. an estimate of $0.47 and revenue of $204 million-$207 million vs $199.46 million estimate. 

Also, the company projects FY24 adjusted EPS of $1.49-$1.54 (vs street view of $1.57) and revenue of $620 million-$630 million (vs. consensus of $591.61 million).

Price Action: ODD shares are down 7.38% at $42.51 on the last check Wednesday.