Oddity 2023 revenues top $500 million as tech investments pay off

By Alessandro Carrara | Published: 11-Mar-2024

Oddity co-founder Oran Holtzman said the investments have created a rare combination of ‘scale, growth and profitability’

Oddity, the owner of Il Makiage and Spoiled Child, saw revenues top US$500m in 2023.

Revenue for the year was up by 57% to $509m, with income having also leapt by 169% to $59m.

The Israel-based beauty company attributed the growth to its large scale investments into technology and product development over the past five years.

This includes a $76m acquisition of biotechnology start-up brand Revela in 2023.

It also acquired Voyage81 in 2021, the business behind a Hyperspectral Imaging Systems technology that allows smartphone cameras to see 31 wavelengths of light.

Oran Holtzman, Oddity co-founder and CEO, said the investments have created a rare combination of “scale, growth and profitability”.

These have been yielding “significant returns”, he added.

“I truly believe there is no limit to what we can build at Oddity,” Holtzman continued.

“We are playing in a huge Total Addressable Market (TAM) that is being transformed.”

The full-year results were also bolstered by a strong fourth quarter in 2023.

Revenue increased by 44% to $97m for the final three months of trading, up from $67m in 2022.

Gross profit was reported at $67m, a 53% year-over-year increase, with net income also up 5% to $5.1m from the loss of $700k recorded last year.

Oddity expects to maintain this momentum in 2024, and has set its full-year guidance to be between $620m and $630m.

This represents estimated revenue growth between 22% and 24%.

Following Oddity’s acquisition of Revela in 2023, the business also invested an additional $25m to create Oddity Labs.

The dedicated research facility, which is based in Boston, US, has been working on new drug discovery technologies for the beauty and wellness industry.

Oddity will continue to accelerate its investment into Oddity Labs in 2024, with the aim of expanding the team and the scope of projects in development.

The business is also working on an unnamed, medical-grade skin and body care brand, which it plans to launch in 2025.

“We continue to aggressively invest in future growth initiatives, including Oddity Labs and future brand launches, where we expect to continue investing in 2024,” said Lindsay Drucker Mann, Oddity Global CFO.

“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.”

Oddity was founded in 2018 and is best known for Il Makiage’s shade matching tool, which launched in the UK in 2020.

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