Group 1 - Oddity Tech (ODD) has reached a significant support level and shows potential for investors from a technical perspective, having recently broken through the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average is a widely used trading tool that helps smooth out price fluctuations and provides more trend reversal signals than longer-term moving averages, with a price above this average indicating a positive trend [2] - ODD shares have increased by 12.4% over the past four weeks, and the company holds a Zacks Rank 3 (Hold), suggesting potential for continued gains [3] Group 2 - Positive earnings estimate revisions further strengthen the bullish outlook for ODD, with no earnings estimates lowered in the past two months and three raised estimates for the current fiscal year, leading to an increase in the consensus estimate [3] - The combination of favorable earnings estimate revisions and the stock hitting a key technical level suggests that investors should monitor ODD for potential gains in the near future [4]

VALBY, Denmark, March 10, 2025 /PRNewswire/ -- The Ministry of Health, Labor, and Welfare (MHLW) in Japan has granted Orphan Drug Designation (ODD) to Lundbeck's investigational drug, amlenetug, a potential new treatment option targeting Multiple System Atrophy (MSA).H. Lundbeck A/S (Lundbeck) announced that amlenetug has received Orphan Drug Designation (ODD) from the MHLW in Japan.The ODD in Japan adds to other important designations: the SAKIGAKE designation by Japan's MHLW in March 2023, the Orphan Drug ...

Oddity Tech (ODD -0.53%) reported its fourth-quarter and full-year 2024 earnings on February 26, 2025, highlighting strong growth and investments in future expansion. The company is seeing growth through repeat sales and its direct-to-consumer business, with new brands on the horizon in 2025 and 2026.Direct-to-Consumer Model Drives Superior PerformanceThe company's digital approach is delivering strong results amid broader industry headwinds. Oddity's direct connection with consumers enables precise invento ...

Financial Data and Key Metrics Changes - In 2024, the company achieved a revenue growth of 27% to $647 million and delivered adjusted EBITDA of $150 million at a margin of 23.3%, representing a 40% year-over-year increase in adjusted EBITDA [7][8] - The company generated $134 million of free cash flow, converting over 130% of net income into cash, and maintained strong momentum with revenue growth of 27% in Q4 [8][56] - The gross margin expanded to 72.7%, up 330 basis points year-over-year, exceeding guidance of 68% [53] Business Line Data and Key Metrics Changes - Both brands, Il Makiage and Spoiled Child, experienced double-digit revenue growth in 2024, with Il Makiage surpassing $500 million in revenue and Spoiled Child reaching $150 million [9][10] - The repeat sales metric increased significantly, with repeat revenue accounting for over 60% of total business revenue in 2024, up from less than 50% in previous years [12][82] Market Data and Key Metrics Changes - The company noted a shift towards online sales, which is expected to continue growing, with the belief that online penetration could double from current levels [14][77] - The company is strategically expanding its international presence, particularly in markets like the UK, Germany, and Australia, with positive early indications [25][26] Company Strategy and Development Direction - The company is focused on investing in growth areas such as Oddity Labs, new brands, and AI technologies to drive future growth [7][24] - The launch of brand three, a telehealth platform, is set for the second half of 2025, targeting medical-grade skin and body issues [28][100] - The company aims to leverage its direct-to-consumer model to maintain a competitive edge, avoiding excess inventory issues faced by wholesale brands [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to perform well despite macroeconomic challenges, citing strong repeat sales and a resilient business model [72][140] - The outlook for 2025 includes a commitment to achieving 20% revenue growth and a 20% adjusted EBITDA margin, despite planned investments in growth initiatives [59][60] Other Important Information - The company repurchased 3.6 million shares for approximately $147 million during 2024, with $103 million remaining on its buyback authorization [57][58] - The company exited 2024 with $169 million in cash equivalents and investments, maintaining a zero-debt position [58] Q&A Session Summary Question: Can you elaborate on your international strategy and why now? - Management indicated that the decision to accelerate international growth is strategic, focusing on smaller markets to spread growth effectively [71] Question: Are you seeing any weakness in consumer spending due to macro concerns? - Management noted that the shift to online sales is a significant factor, and they are not experiencing the same promotional pressures as competitors [75] Question: Can you provide insights on repeat purchases and growth from Il Makiage? - Management reported that repeat purchases account for over 60% of revenue, with a twelve-month net revenue repeat rate exceeding 100% [82] Question: What are the key milestones for brand three? - Management highlighted that brand three is set to launch with a focus on skin and body issues, with significant investments made to ensure a successful rollout [96][100] Question: How do you balance organic growth versus M&A for Oddity Labs? - Management stated that they are open to M&A opportunities to enhance capabilities, particularly in pharma, while also expanding their internal team [123]

Core Insights - Oddity Tech reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing an increase from $0.17 per share a year ago, resulting in an earnings surprise of 53.85% [1] - The company achieved revenues of $123.64 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.17% and increasing from $97.25 million year-over-year [2] - Oddity Tech has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Oddity Tech's stock will largely depend on management's commentary during the earnings call and the sustainability of the recent price movements [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.53 on revenues of $255.24 million, and for the current fiscal year, it is $1.74 on revenues of $772.64 million [7] Industry Context - The Internet - Software industry, to which Oddity Tech belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Oddity Tech's stock performance [5][6]

Business Risks - The company faces substantial risks including negative publicity affecting brand value, which could adversely impact business and financial condition [31]. - The inability to anticipate market trends and changes in consumer preferences may negatively affect the company's operations and financial results [36]. - Attracting new customers and retaining existing ones is critical; failure to do so could harm revenue growth and overall business performance [37]. - The company relies on single-source suppliers for certain materials, and any disruptions could adversely affect its supply chain and financial condition [47]. - Regulatory changes, such as the EU AI Act, could impose compliance costs and restrict the company's use of AI technologies, impacting operations [46]. - Negative customer feedback or publicity regarding products or services could diminish customer loyalty and engagement [43]. - The company is subject to risks from supply chain disruptions, including natural disasters and industrial accidents, which could adversely affect operations [48]. - Significant investments in marketing and brand promotion are necessary to attract new customers, but these may not yield expected results [37]. - The company’s growth may slow over time, and recent rapid growth may not be sustainable, impacting future performance [34]. - The majority of suppliers are located in the United States, Italy, China, and Taiwan, and any operational interruptions in these regions could hinder product demand fulfillment [50]. - The company maintains business interruption insurance, but coverage may not be sufficient for catastrophic events, potentially impacting financial condition and operations [51]. - Accurate forecasting of customer demand is critical; failure to do so may lead to excess inventory or shortages, adversely affecting gross margins and brand strength [54]. - Recent rapid growth may not be sustainable, and future revenue growth could slow due to various market factors, including competition and demand fluctuations [56]. - The company faces competition from larger multinational consumer product companies, which may respond more quickly to market changes due to their resources [57]. - Fluctuating raw material costs could increase the cost of goods sold, negatively impacting financial results [59]. - Illegal distribution and sale of counterfeit products could harm brand reputation and net revenue [60]. - Shipping disruptions, including port congestion and labor disputes, could significantly affect business operations and customer satisfaction [63]. - Economic downturns or disruptions in business conditions may lead to decreased consumer spending on discretionary items, impacting sales [67]. - Sudden global disruptions, such as pandemics or geopolitical conflicts, could adversely affect consumer confidence and sales profitability [68]. Financial Performance - The company achieved profitability in 2020 after starting U.S. operations in 2018 [84]. - Revenue is typically highest in the first quarter of the calendar year, with a decline expected in the third and fourth quarters [83]. - The company plans to continue expanding into additional international markets, which may expose it to new risks [86]. - The company may require additional financing in the future, which could be difficult to obtain on favorable terms, potentially leading to significant dilution of existing shareholders' ownership interests [111]. - The company anticipates that its available funds and cash flow from operations will be sufficient for the foreseeable future, but uncertainties remain regarding future financing needs [111]. - The company's tax obligations may change significantly due to business expansion into jurisdictions with unfavorable tax laws, potentially affecting after-tax profitability and financial results [130]. - The overall effective tax rate may be materially affected by changes in tax benefits and grants for research and development [224]. Regulatory Compliance - The company is subject to numerous laws and regulations globally, which could result in delays, increased costs, and limitations on product sales and marketing [113]. - Compliance with evolving regulations, particularly in the EU regarding cosmetic products, may impact the company's ability to market and sell products effectively [116]. - The introduction of new AI regulations could increase operational costs and restrict opportunities for product development and deployment [122]. - Changes in international tax legislation, such as the OECD's Pillar Two proposal, may increase the company's tax liabilities and affect international expansion plans [127]. - The company faces potential adverse effects from new e-commerce tax regulations, which could increase operational costs and decrease the attractiveness of online sales [128]. - Regulatory developments related to climate change may impose additional compliance costs and affect the company's financial condition [125]. - The company may face significant costs and reputational harm if it fails to comply with applicable laws and regulations, particularly in the areas of data privacy and cybersecurity [119]. - The company is subject to various federal and state laws regarding automatically renewing subscription services, and non-compliance could result in legal fees and reputational harm [138]. - The evolving regulatory environment may lead to increased enforcement actions against the company, potentially resulting in fines, penalties, and negative publicity [142]. - The company is subject to various international laws regarding data privacy, which could lead to reputational harm and significant penalties for noncompliance [152]. - The California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA) impose new obligations that may increase compliance costs and potential liabilities [160]. - The Virginia Consumer Data Protection Act (VCDPA) effective January 1, 2023, imposes additional compliance costs and requirements for data processing [161]. - The Colorado Privacy Act (CPA) effective July 1, 2023, requires compliance similar to VCDPA, increasing operational complexity [161]. - Compliance with Payment Card Industry Data Security Standard (PCI Standard) requires significant resources and ongoing attention, with risks of service disruptions from third-party processors [163]. - GDPR imposes fines of up to €20 million or 4% of annual global revenue for violations, affecting both third-party transactions and internal data transfers [169]. - UK GDPR creates parallel compliance requirements post-Brexit, increasing risk exposure due to potentially conflicting regulations [170]. - The new Data Privacy Framework (DPF) adopted on July 10, 2023, addresses cross-border data transfer concerns but may face challenges and increased scrutiny [167]. - Israeli Privacy Protection Law requires compliance with data processing and security regulations, with potential administrative fines and civil claims for non-compliance [172]. - ePrivacy Regulation may impose additional consent requirements, impacting sales and necessitating significant system changes [171]. - Changes in data transfer regulations may lead to increased operational costs and affect the company's ability to provide services across jurisdictions [168]. - The Personal Information Protection Law (PIPL) imposes penalties of up to CNY 50 million or 5% of annual revenue for non-compliance [174]. - Compliance with various data privacy laws may incur substantial operational costs and require changes in business practices [175]. - Evolving definitions of personal information may limit the company's ability to operate or expand its business [176]. - Increased regulation on consumer behavior data collection may lead to significant operational changes and potential fines [178]. Cybersecurity and Technology - The company relies heavily on information technology systems, and disruptions could adversely affect business operations and financial results [180]. - Cybersecurity incidents, including ransomware attacks, pose significant risks to the company's operations and reputation [183]. - The company maintains cybersecurity insurance, but coverage may not be adequate for all incidents [184]. - Unauthorized access or data breaches could result in legal claims, regulatory investigations, and significant penalties [185]. - The company has faced attempted cyberattacks in the past, which could lead to regulatory scrutiny and additional liability if not managed properly [188]. - The company may face significant costs and operational impacts due to potential cyberattacks and security breaches, which could adversely affect its financial condition and results of operations [189]. - The company relies on third-party payment processing services, which exposes it to risks related to compliance with payment card association rules and potential fines or higher transaction fees [191]. Intellectual Property - The company has invested in protecting its intellectual property, but there is no guarantee that its patents will be granted or that they will provide meaningful protection against competitors [194]. - The company has chosen not to register certain copyrights, which may limit its ability to seek remedies for unauthorized use of its software [195]. - The company may incur significant costs in monitoring and enforcing its intellectual property rights, and litigation could distract management and impair its business operations [197]. - The company’s trademarks and trade names may not be adequately protected, which could hinder its ability to build brand recognition and compete effectively [200]. - The company faces challenges in enforcing its intellectual property rights in foreign jurisdictions, which may not provide the same level of protection as in the United States [201]. - The company may be subject to claims of intellectual property infringement from third parties, which could result in substantial costs and impact its ability to market and sell its products [204]. - Any adverse outcomes from intellectual property disputes could require the company to cease using certain technologies or redesign its products, leading to additional costs [205]. - The company’s competitive position could be materially harmed if its trade secrets are independently developed or lawfully obtained by competitors [202]. Geopolitical Risks - The ongoing conflicts in Israel, including military actions and regional instability, could materially and adversely affect the company's business, financial condition, and results of operations [215]. - In September 2024, Moody's downgraded Israel's credit rating from A2 to Baa1, reflecting heightened geopolitical risks, which could disrupt the business environment and affect the company's ability to raise capital [216]. - The company may experience disruptions due to military reserve duty call-ups among its employees, which could impact its operations and financial performance [219]. - The company’s commercial insurance does not cover losses from events associated with war and terrorism, potentially exposing it to significant financial risks [217]. - The company’s operations could be negatively impacted by restrictions imposed by governmental agencies or companies that limit access to its products and services [211]. - The company is subject to risks related to the enforcement of U.S. judgments in Israel, which could complicate legal proceedings and affect its operations [220]. Operational Challenges - The company must maintain strong relationships with content creators to effectively promote its brands; failure to do so could hinder customer engagement [41]. - High-quality customer support is vital for revenue growth, and failures in this area could lead to decreased demand for products [109]. - The company must effectively manage its employee base and hiring needs to maintain business performance [75]. - The company faces intense competition for skilled personnel, particularly engineers, which could impact the company's growth strategy [73]. - The company must continue to expand and scale its information technology systems to support recent and expected future growth, which involves significant capital expenditures and operational risks [207]. - The company faces potential risks related to cybersecurity, system failures, and labor difficulties that could disrupt operations [98]. - Product returns are estimated based on historical trends, and any increase in actual returns could adversely affect financial results [99]. - Failure to successfully introduce new products or brands could lead to decreased revenue and excess inventory levels [82]. - The company anticipates the need to add additional distribution center capacity and lease new warehouse space to support business growth [97]. - The company faces risks associated with the use of open-source software, which could expose it to legal liabilities and technological risks if not managed properly [208]. - The company has implemented policies to mitigate risks associated with open-source software, but compliance cannot be guaranteed, which may lead to significant legal and operational challenges [209].

Exhibit 99.1 ODDITY TECH REPORTS RECORD 2024 FOURTH QUARTER AND FULL YEAR RESULTS NEW YORK, February 25, 2025 -- ODDITY Tech Ltd. (NASDAQ: ODD) today announced its financial results for the fourth quarter and full-year ended December 31, 2024. "2024 was a record-breaking year for ODDITY. We delivered outstanding results and exceeded our financial guidance every single quarter of the year, just as we have in the past 7 quarters since our IPO, while simultaneously making massive investments in our future," sa ...

Core Insights - ODDITY Tech Ltd. reported a record-breaking year in 2024, achieving net revenue growth of 27% and exceeding financial guidance every quarter since its IPO [2][4][5] - The company demonstrated strong performance in its direct-to-consumer model, contrasting with industry trends of weaker sales and excess inventory [2][5] - ODDITY's strategic focus includes investments in technology products and new brands to capture growth in the beauty and wellness sectors [2][5] Financial Performance - Full year net revenue reached $647 million, a 27% increase year-over-year [4][13] - Full year adjusted EBITDA was $150 million, reflecting a 40% year-over-year growth [4][13] - Fourth quarter net revenue was $124 million, also a 27% increase compared to the same quarter in 2023 [4][6] - The company achieved a gross margin of 72.4% for the full year, up from 70.4% in 2023 [13] - Net income for the full year was $101 million, compared to $59 million in 2023, with an adjusted net income of $121 million [4][13] Key Initiatives and Future Outlook - ODDITY plans to leverage its platform model for future growth through new brands and products [12][17] - The company is focused on developing Brand 3, a telehealth platform, and Brand 4 in the beauty and wellness market [12][17] - For 2025, ODDITY projects net revenue between $776 million and $785 million, with an adjusted EBITDA of $155 million to $158 million [14][17] Shareholder Returns and Financial Health - ODDITY repurchased 2.35 million shares for approximately $100 million in Q4 2024, totaling $147 million for the year [5][12] - As of December 31, 2024, the company had a strong balance sheet with $169 million in cash and no outstanding debt [5][12]

Company Overview - ODDITY Tech Ltd. is a consumer tech company focused on building and scaling digital-first brands to disrupt the offline-dominated beauty and wellness industries [3] - The company serves approximately 50 million users through its AI-driven online platform, utilizing data science to identify consumer needs and develop beauty and wellness products [3] - ODDITY owns brands such as IL MAKIAGE and SpoiledChild, with headquarters in New York City, an R&D center in Tel Aviv, Israel, and a biotechnology lab in Boston [3] Financial Results Announcement - ODDITY will release its fourth quarter and full year 2024 financial results after the market close on February 25, 2025 [1] - A conference call to discuss the financial results will take place on February 26, 2025, at 8:30 a.m. Eastern Time [1] Conference Call Details - To participate in the conference call, dial 1-877-407-9208 (US) or 1-201-493-6784 (international) and reference the call title: ODDITY Fourth Quarter and Full Year 2024 Earnings Call [2] - A webcast of the call will be available on the Investors section of ODDITY's website, with a recording accessible shortly after the call [2]

Core Insights - Oddity Tech (ODD) is positioned to continue its earnings-beat streak, having surpassed earnings estimates by an average of 33.92% in the last two quarters [1][3] Earnings Performance - For the most recent quarter, Oddity Tech reported earnings of $0.32 per share, exceeding the expected $0.22 per share, resulting in a surprise of 45.45% [2] - In the previous quarter, the company reported $0.82 per share against a consensus estimate of $0.67 per share, leading to a surprise of 22.39% [2] Earnings Estimates and Predictions - Estimates for Oddity Tech have been trending higher due to its history of earnings surprises, with a current Earnings ESP of +4%, indicating increased analyst optimism about its near-term earnings potential [3][6] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong likelihood of another earnings beat [6] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4] - The Earnings ESP metric is derived from comparing the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [5]