Oddity Tech, a recent public retailer that uses artificial intelligence to develop beauty products, has reported preliminary third-quarter results showing expected revenue growth of 29% to 31%. This growth is attributed to repeat sales at its Il Makiage and Spoiled Child brands.
Oddity Tech, which began trading on the Nasdaq in July, initially expected sales to grow by about 20.5% in the third quarter. The company is also anticipating a gross margin of 68.5%, one percentage point higher than its previous guidance, and adjusted EBITDA margins at the high end of its previous range. Sales for the year so far have seen a jump of about 58%, with adjusted EBITDA of at least $89 million.
Oddity Tech aims to disrupt the beauty and wellness industry by using AI not only to select products for customers but also to develop them. The company, based in Tel Aviv, recently announced plans to acquire biotech startup Revela and open Oddity Labs in Boston, where it will use AI to create new molecules for cosmetics.
The company expects Oddity Labs to have 10 products ready for the market in 2024, contributing to 30% or more of the company’s overall revenue over the next five years. Despite experiencing a stock price decline of about 50% since its high of $56 per share, Oddity Tech remains confident in its long-term fundamentals.
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