It is operated by beauty and technology company Oddity. Irumakiage and a spoiled child The brand applied to list on Friday as Once Frozen IPO Market It warms up.
The Israel-based company plans to trade on the Nasdaq using the ticker ODD. The company did not immediately disclose how the product would be priced in its regulatory filings, and declined to comment when asked when the figures would be released.
“The number of shares to be offered and the price range for the proposed offering have not yet been determined. “We cannot guarantee the actual size or terms of the offering,” Odditi said in a press release.
Founded in 2018 by brother-sister duo Oran Holtzman and Shiran Holtzman-Erel, Oddity leverages data and AI to develop brands and make personalized product recommendations.
By replacing the in-store experience with AI and data-powered product recommendations, the company is disrupting a market long dominated by traditional retailers. The company’s business Central to his model is proprietary technology, including one developed by a former Israeli defense official, and billions of data points collected from millions of users.
In the three months ended March 31, the company had sales of $165.65 million, up from $90.41 million in the same period last year. Net income was $19.59 million, or $5.34 per share, compared with $3.01 million, or 82 cents per share, in the same period last year.
The direct-to-consumer retailer has been profitable on an annual basis since at least 2020, according to figures revealed in regulatory filings.
In 2022, Oddity had sales of $324.52 million and net income of $21.73 million, or $5.94 per share. Last year, the retailer had sales of $222.56 million and net income of $13.92 million, or $4.01 per share.
In 2020, the company had sales of $110.64 million and net income of $11.71 million ($3.45 per share).
In comparison, elf beauty filed to go public in August 2016, but had lower profits and sales than Oddity. His ELF, a multi-brand beauty company, had his $144.94 million in sales in 2014 with a net loss of $2.88 million. The following year, sales were $191.41 million and net income was $4.36 million.
In 2016, the company had sales of $229.57 million and net income of $5.31 million.
Since going public, ELF’s sales and profits have increased. For the most recent fiscal year ended March 31, the company had sales of $578.84 million and net income of $61.53 million.
As a direct-to-consumer retailer, Oddity sees high returns with this strategy. Gross margin for the three months ended March 31 was 71%, up 4 percentage points from 67% in the same period last year. Since 2020, the annual profit margin has been declining every year as the company has made acquisitions and investments to grow its business.
In 2020, Oddity’s annual gross margin was 70%, but in 2021 it is down one percentage point to 69%. The retailer’s annual gross margin is 67% in 2022, down two percentage points from the same period last year.
As of March 31, the company has over 4 million active customers, which the company defines as unique customer accounts that have made at least one purchase in the last 12 months.
“We direct visitors to our website, turn them into users by asking questions and learning about them, and leverage the data we hold across our platform to turn them into paying customers.” stated in regulatory filings.
Oddity operates internationally and sales from these markets accounted for approximately 26% and 27% of net revenues in 2022 and 2021, respectively. As of Friday, Oddity is available in the US, Canada, UK, Continental Europe and Australia. The company said it plans to continue expanding its scale.
The company plans to use the proceeds from the IPO to develop and launch new brands. The funds will also be used for working capital, other general corporate purposes and potentially for acquisitions and other investments.
In an interview earlier this year, the company’s global chief financial officer (and former Goldman Sachs executive) Lindsay Drucker Mann told CNBC that Oddity is profitable and growing despite a challenging macroeconomic environment. He said he does. Going purely digital raises risks Retail company.
According to the company, Oddity’s total sales have averaged a doubling every year since 2018.
of 1st year of spoiled child On the market, the new brand brought in $48 million in total sales, excluding returns.
The company’s CEO and co-founder, Holzmann, said in a regulatory filing that the company recruits from the Israeli Defense Force’s top technical force. Technicians make up over 40% of his global workforce.
“As an industry outsider, we found the status quo approach to be flawed in many ways. As a result, there has been a significant delay in online adoption,” Holzmann wrote in the founder’s letter enclosed with the securities. filing.
“Despite consumers’ natural tendency to shop online, they are underinvesting in technology, spending more time on social media in search of beauty content, and spending money rapidly on other categories. have been moved online, the category has been left behind by digitization lags.”
Oddity not only develops new products and brands, but also strives to make beauty products more effective, the company said.
In late April, the company announced it would invest more than $100 million in acquisitions. Biotech Startup Revela And we will open a laboratory based in the United States.
The merger has created a team of scientists at Oddity tasked with creating entirely new molecules powered by artificial intelligence that can be used in cosmetic brands and future product lines.
2021, Oddity Get Voyage81Deep Tech AI founded in 2019 by Niv Price, former head of research and development in one of the Israeli Defense Forces’ elite technical units, and Dr. Boaz Arad, Dr. Rafi Guidron, and Omar Schwartz. Based Computational Imaging Startup Company.
The technology can use a regular smartphone camera to map and analyze skin and hair features, detect facial blood flow, and create maps of melanin and hemoglobin.
The filing comes after a year and a half of IPO market drought. starting to open up And show signs of green sprouts.
Earlier this month, Mediterranean restaurant chain Cava went public and sold its shares to Soared by 117% in the market debut.
“[In 2022] Investors didn’t want to go near the IPO, but now it’s profitable again, and issuers see it as close to a decent valuation, so people are coming back to the market. I think,” said Matt Kennedy. Senior IPO Market Strategist at Renaissance Capital.
“The consumer sector is where investors can look at business models that investors understand, businesses that are familiar, and businesses that are typically profitable or close to profitable, and hopefully have growth potential. It’s perfect for this time of year when you can.”
