Core Viewpoint - Oddity Finance LLC, a subsidiary of ODDITY Tech Ltd, is pricing $525 million of 0% exchangeable senior notes due 2030, increasing from a previously announced offering size of $350 million [1][2] Group 1: Offering Details - The offering is expected to close on June 12, 2025, and will result in approximately $510.6 million in net proceeds after deducting initial purchasers' discounts [1] - The Issuer has granted initial purchasers an option to purchase an additional $75 million of notes within a 13-day period [1] - The notes will be senior, unsecured obligations and will not bear regular interest, maturing on June 15, 2030 [3] Group 2: Use of Proceeds - Net proceeds will be used for general corporate purposes, with no immediate plans for material acquisitions, but potential for strategic M&A in the future [2] - Approximately $55.3 million of the net proceeds will be allocated to capped call transactions [2] Group 3: Capped Call Transactions - Capped call transactions are designed to reduce potential dilution of ODDITY's Class A ordinary shares upon exchange of the notes [4] - The initial cap price for these transactions is set at $138.92 per share, representing a 100% premium over the last reported sale price [5] Group 4: Exchange and Redemption Terms - The notes are exchangeable at an initial rate of 10.8655 Class A ordinary shares per $1,000 principal amount, with an exchange price of approximately $92.03 per share, reflecting a 32.5% premium [9] - The Issuer may redeem the notes starting June 20, 2028, under specific conditions related to the stock price [10] Group 5: Company Overview - ODDITY is a consumer tech company focused on disrupting the beauty and wellness industries through digital-first brands, serving approximately 60 million users [16]

Core Viewpoint - Oddity Tech Ltd. has demonstrated significant stock performance, with a 51.9% increase over the past month, outperforming both the Zacks Computer and Technology sector and the Zacks Internet - Software industry [1] Financial Performance - In Q1 2025, Oddity Tech reported revenues of $268 million, a 27% year-over-year increase, exceeding the Zacks Consensus Estimate by 2.86% [2] - Earnings per share for the same quarter were 69 cents, reflecting a 13% increase from the previous year and surpassing expectations by 9.52% [2] Industry Trends - The ongoing structural transformation in the industry, particularly the shift to online channels, is benefiting Oddity Tech as consumer preferences lean towards digital-first experiences [3] Brand Performance - Oddity Tech's growth is supported by its strong portfolio of consumer brands, with IL Makiage and SpoiledChild both achieving double-digit revenue growth in Q1 [4] - IL Makiage is projected to reach a revenue target of $1 billion by 2028, with IL Makiage Skin expected to contribute nearly 40% of total revenues this year [5] - SpoiledChild is on track to exceed $200 million in revenues in 2025, demonstrating strong consumer adoption and healthy margins [6] Innovation and Expansion - Oddity Tech is expanding its product portfolio, with Brand 3 set for a soft launch in Q3 2025 and Brand 4 planned for 2026 [7] - The company's proprietary molecule discovery platform, ODDITY LABS, is enhancing its ability to deliver innovative products [7] - International expansion is gaining momentum, with double-digit growth reported in France, Italy, and Spain, indicating successful scaling efforts [8] Future Outlook - For Q2 2025, Oddity Tech anticipates revenues between $235 million and $239 million, representing a 22-24% year-over-year increase [9] - The company expects adjusted earnings per share to be between 85 cents and 89 cents, with a consensus estimate of 88 cents per share [10] - For fiscal 2025, projected revenues are between $790 million and $798 million, indicating a 22-23% year-over-year growth [10] - Adjusted earnings per share for fiscal 2025 are expected to be between $1.99 and $2.04, with a consensus estimate of $2.02 per share [11] Investment Opportunity - Oddity Tech is positioned as a compelling investment opportunity due to its strong revenue and earnings growth, robust innovation pipeline, and accelerating global expansion [12] - The company is recommended as a strong buy, reflecting its potential for long-term value creation in the beauty and wellness sector [13]

Core Viewpoint - Momentum investing strategies focus on stocks with price increases, aiming to identify targets for potential upside while considering various timeframes [1] Group 1: Oddity Tech - Oddity Tech Ltd. is a tech company in the beauty and wellness sector, recently achieving a share price of $64.02, with a 52-week range of $30.34 to $65.90 and a P/E ratio of 38.85 [2][3] - The company reported a 70% increase in share price over the last month and a 53% year-to-date increase, surpassing earnings expectations by six cents and achieving a 27% year-over-year revenue growth [3][4] - Oddity's IL MAKIAGE brand is a key driver, with a goal of reaching $1 billion in revenue by 2028, while expanding into European markets despite heavy exposure to the U.S. market [5] Group 2: NeoGenomics - NeoGenomics Inc., a cancer and cytogenetics testing service provider, has a current share price of $8.08, with a 52-week range of $6.08 to $19.12 and a price target suggesting over 85% upside potential [6][7] - The company experienced a 22% share price increase from April 30 to May 5, following a period of decline due to a disappointing earnings report [7][8] - NeoGenomics raised its full-year 2025 guidance and completed the acquisition of Pathline, which is expected to enhance its geographical reach and service portfolio [8] Group 3: Comfort Systems USA - Comfort Systems USA Inc. is a mechanical and electrical services provider with a current share price of $433.79, a 52-week range of $272.93 to $553.09, and a unanimous Buy rating from analysts [9][10] - The company has seen a 40% increase in share price over the last month, driven by a significant backlog growth of nearly $1 billion due to the CHIPS Act and data center investments [10][11] - Anticipated revenue growth for 2025 is expected to be in double digits, potentially benefiting from U.S. manufacturing restoration efforts [11]

Core Viewpoint - The U.S. stock market is experiencing volatility, with the S&P 500 declining 0.8% in April, marking its third consecutive monthly drop, while GDP shrank 0.3%, the first decline since early 2022. However, strong consumer spending and a stable job market indicate underlying confidence in the economy [1]. Group 1: Investment Strategy - In uncertain market conditions, a relative price strength strategy can help investors identify stocks that outperform their peers, thus staying aligned with market momentum [2]. - Stocks that show better performance than their industry or benchmark should be included in investment portfolios, as they are more likely to yield significant returns [4]. - It is essential to assess whether a stock has upside potential, particularly those that have outperformed the S&P 500 over the past 1 to 3 months and possess solid fundamentals [5]. Group 2: Screening Parameters - The screening criteria for identifying potential stocks include positive relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [7]. - Stocks must have a Zacks Rank of 1 (Strong Buy), a current price of at least $5, and an average 20-day trading volume of at least 50,000 to ensure adequate liquidity [8]. Group 3: Featured Stocks - **Kaiser Aluminum Corporation (KALU)**: Expected earnings growth of 66.1% for 2025, with a market cap of $1.1 billion. The Zacks Consensus Estimate for 2025 earnings has increased by 35.4% over the past 30 days, although shares have decreased by 29.3% in the past year [10][11]. - **Sprouts Farmers Market, Inc. (SFM)**: Anticipated earnings growth of 30.7% for 2025, with shares rising 131.9% in the past year. The company has consistently beaten earnings estimates, with a trailing four-quarter earnings surprise of approximately 16.5% [12][13]. - **BGC Group, Inc. (BGC)**: Projected EPS growth rate of 23.2% year-over-year for 2025, with a favorable expected growth rate of 24.7% over the next three to five years compared to the industry average of 13.8%. Shares have gained 7% in the past year [14][15]. - **ODDITY Tech Ltd. (ODD)**: Expected earnings growth of 3.1% for 2025, with shares increasing by 95.8% in the past year. The company has a trailing four-quarter earnings surprise of about 32.8% [16][17].

Oddity Tech (NASDAQ: ODD ) is an Israel-based beauty tech company. They are the parent company of two completely DTC beauty brands, IL MAKIAGE and Spoiled Child, and they are launching "brand 3" —a completely DTCRasoli research is an independently run organization which has been operating for 4 years as of now, founded by Milad Rasoli. I am a "value investor" seeking opportunities in high quality, fairly priced companies.Analyst’s Disclosure: I/we have a beneficial long position in the shares of ODD either ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue growth of 27% to $268 million, with adjusted EBITDA of $52 million, representing a 19.5% adjusted EBITDA margin and free cash flow of $87 million [4][22][23] - The company expects full-year revenue growth to be between 22% and 23%, or between $790 million and $798 million, raising its gross margin outlook to 71% for the full year [28][29] Business Line Data and Key Metrics Changes - The growth in net revenue was primarily driven by increased orders and a 4% year-over-year increase in average order value, influenced by a mix of higher-priced products [23][25] - The company continues to expect order growth to be the primary driver of revenue growth moving forward [24] Market Data and Key Metrics Changes - International markets contributed to growth, although they currently represent less than 20% of the business, with both U.S. and international markets growing in double digits in Q1 [34][60] - The company is focusing on scaling existing markets and testing new markets, with positive results from recent tests in large developing markets [61] Company Strategy and Development Direction - The company aims to build one of the largest beauty companies globally by focusing on online consumer shifts and high-efficacy products [5][6] - Strategic priorities include driving existing brands, accelerating international expansion, and investing in new brand launches and technology [9][10][18] Management's Comments on Operating Environment and Future Outlook - Management views the current environment as a significant opportunity, emphasizing the resilience of the beauty industry and the company's strong performance [20][21] - The company remains confident in its ability to exceed long-term growth targets of 20% revenue growth and 20% adjusted EBITDA margins despite potential tariff impacts [29] Other Important Information - The company has a strong balance sheet with $257 million in cash equivalents and investments, zero debt, and a new undrawn $200 million credit line [26][27] - The company is actively looking for acquisition opportunities that align with its strategic goals, particularly in technology and brands that complement its existing portfolio [62] Q&A Session Summary Question: Contribution of international markets to the quarter - Management confirmed that international markets are a core part of the growth strategy, with both U.S. and international markets growing double digits in Q1, although international is still less than 20% of the business [34][60] Question: Impact of the FTC's click-to-cancel rule - Management does not foresee significant impact from the regulation, as the company has already adapted its subscription and cancellation processes to be user-friendly and self-serve [36][37] Question: Factors driving gross margin increases - Management highlighted that gross margin improvements are due to cost efficiencies and product mix, with a focus on contribution margin rather than gross margin as a key performance indicator [42][45] Question: Updates on Brand three and telehealth infrastructure - Management expressed excitement about Brand three, emphasizing the extensive testing and infrastructure built to support its launch, which is expected to address significant consumer needs [51][73] Question: Strategic focus for acquisitions - Management indicated a focus on acquiring brands with strong products or capabilities that would take significant time to develop internally, particularly in biotech and AI [62]

Financial Data and Key Metrics Changes - In Q1 2025, revenue grew 27% to $268 million, with adjusted EBITDA of $52 million, representing a 19.5% adjusted EBITDA margin and free cash flow of $87 million [5][26][29] - The company expects full year revenue growth between 22% to 23%, or between $790 million and $798 million, raising gross margin outlook to 71% for the full year [31][32] Business Line Data and Key Metrics Changes - Il Makiage and Spoiled Child drove net revenue growth, with average order value increasing by 4% year over year [26][27] - Spoiled Child is on track to cross the $200 million revenue mark this year, maintaining healthy margins [14] Market Data and Key Metrics Changes - International markets contributed to growth, with both U.S. and international segments growing double digits in Q1, although international remains less than 20% of total business [38][66] - The company is focusing on scaling existing markets and testing new markets, with positive results from recent tests in France, Italy, and Spain [66] Company Strategy and Development Direction - The company aims to build one of the largest beauty companies globally by focusing on online sales and high-efficacy products [6][7] - Strategic priorities include driving existing brands, accelerating international expansion, and investing in new brands and technology [11][12][21] Management's Comments on Operating Environment and Future Outlook - Management views the current environment as a significant opportunity, with a resilient business model that allows for aggressive growth [23][24] - The company remains confident in achieving its long-term growth targets despite potential tariff impacts, which are expected to be manageable [32][60] Other Important Information - The company has zero debt and exited the quarter with $257 million in cash equivalents and investments, along with a $200 million undrawn credit line [29] - The company is actively looking for acquisition opportunities to enhance its platform and capabilities [30][66] Q&A Session Summary Question: Contribution of international markets to the quarter - Management confirmed that international markets are a core part of the growth strategy, with both U.S. and international segments growing double digits in Q1, although international is still less than 20% of total business [38][66] Question: Impact of the FTC's click-to-cancel rule - Management does not foresee significant impact from the regulation, as their subscription model is already designed to be user-friendly and self-service [40][41] Question: Factors driving gross margin increase - Management highlighted that gross margin is not a primary KPI, focusing instead on contribution margin, with cost efficiencies and product mix contributing to the increase [46][48] Question: Updates on Brand Three and tariffs - Management expressed excitement about Brand Three, emphasizing the extensive testing and technology development that has been completed [54][57] - Tariff impacts are expected to be between 50 to 100 basis points on gross margin, which management considers manageable [57][60] Question: Priorities for acquisitions - Management indicated a focus on acquiring brands with strong products or capabilities that would take significant time to develop internally, particularly in biotech and AI [66]

Oddity Tech (ODD) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Company Participants Maria Lycouris - Investor RelationsOran Holtzman - Co-Founder, CEO & DirectorLindsay Drucker Mann - CFOYoussef Squali - MD & Head of Internet and Digital Media Research GroupMark Mahaney - Senior Managing DirectorCory Carpenter - Internet Equity ResearchDara Mohsenian - Managing Director - US Beverage/Household Products SectorsAndrew Boone - Managing Director Operator Good morning, and welcome to Auditi's First Quarter t ...

As the retail industry braces for profits to take a hit from tariffs, Oddity Tech is bucking the trend and raising its outlook after another quarter of outsized growth, the company said Tuesday. The beauty and tech retailer behind Il Makiage and Spoiled Child hiked both its earnings and profit guidance for fiscal 2025 and said it isn't weighing price increases to weather the impact of new levies. "We have other mitigating initiatives, and we'll have to see ultimately where tariffs shake out. There's also di ...

Core Insights - ODDITY Tech Ltd. reported strong financial results for Q1 2025, exceeding expectations across all metrics and raising its full-year outlook [2][3][9] - The beauty industry is undergoing significant transformation, with a shift towards online shopping and high-performance products, which ODDITY is well-positioned to capitalize on [2][5] Financial Performance - Q1 2025 net revenue reached $268 million, a 27% increase year-over-year from $212 million in Q1 2024 [4][6] - Gross profit for Q1 2025 was $201 million, up 29% from $156 million in the same quarter last year, with a gross margin of 74.9% [4][6] - Adjusted EBITDA for Q1 2025 was $52 million, representing a 9% increase from $48 million in Q1 2024 [6][31] - Net income for Q1 2025 was $38 million, compared to $33 million in Q1 2024, with an adjusted net income of $42 million [4][6] Operational Highlights - ODDITY achieved double-digit revenue growth for its brands IL MAKIAGE and SpoiledChild [5] - The company is accelerating its international expansion and progressing towards the launch of Brand 3 in Q3 and Q4 of 2025 [5][9] - ODDITY generated $87 million in free cash flow and maintained a strong balance sheet with $257 million in cash and no outstanding debt as of March 31, 2025 [5][7] Financial Outlook - ODDITY raised its 2025 financial outlook, now expecting net revenue between $790 million and $798 million, reflecting a year-over-year growth of 22% to 23% [9][11] - The company anticipates a gross margin of approximately 71% and adjusted EBITDA between $157 million and $161 million for the full year [11][12] - For Q2 2025, ODDITY projects net revenue between $235 million and $239 million, with a gross margin of 70.5% [12]