ODD Stock Forecast & Price Target

ODDITY Tech Ltd reported a robust performance with Online Direct-To-Consumer sales reaching $140.5 million, reflecting a 27.5% year-over-year growth, while total revenue increased by 24.3% year-over-year to $147.9 million, exceeding consensus estimates. The company achieved impressive gross margins of 71.6%, up 2.4% year-over-year and well above prior estimates, and it raised its FY25 gross margin guidance to approximately 72.5%. Additionally, management increased their adjusted diluted EPS guidance to a range of $2.10 - $2.12, alongside raised FY25 revenue and adjusted EBITDA expectations, highlighting positive financial momentum.

ODDITY Tech Ltd reported a significant sequential decline in total revenue, dropping 38.7% to $147.9 million, which fell short of market expectations, indicating a challenging operating environment. The adjusted EBITDA margin decreased year-over-year by 6.4% to 19.5%, suggesting diminished profitability even as it slightly exceeded internal projections. Furthermore, intense competition in the beauty sector, potential limitations from focusing on higher-priced products, and delays in product launches pose substantial risks to the company's growth trajectory and overall market position.