Oddity Tech shares
And
The company, which weaves technology into the beauty industry, jumped in its first trade on Wednesday.
Exotic shares on the last pick were trading at $48.60, up 39% after opening at $49.10.
Shares of Oddity, which trades under the ticker symbol “ODD” on the Nasdaq World Market, were priced at $35 a share on Tuesday, which is above the marketed range of $32 to $34.
“We’re going to build something really huge,” said Oddity CFO Lindsay Drucker Mann. Barron Wednesday.
Oddity is led by Oran Holtzman, co-founder and chief executive officer — who will have about 76.9% of the voting power of the outstanding equity — and his sister, Shiran Holtzman-Erel, co-founder and chief operating officer.
Announcement – scroll to continue
The company has a research and development center in Tel Aviv, and business headquarters in New York. Its online brands, IL Makiage and SpoiledChild, launched in 2018 and 2022, respectively, and in April, the company created Oddity Labs. Along with its acquisition of Revelaa biotechnology company dedicated to developing new molecules for beauty and wellness.
“they [longstanding players in the beauty industry] He would say the lack of penetration online is because the consumer wants to be in stores, they want to experience it,” said Mann. “And our vision was that it’s not that she wants to be there, that she needs to be there, that she needs help. She doesn’t know what to choose.”
Enter technology, the main focus of the company. Oddity aims to transform the $600 billion global beauty and wellness market. Dedicating dollars to data science, machine learning, and computer vision, it has built a platform with more than 40 million users and generated more than 1 billion unique data points about users’ beauty preferences. These beauty preferences can be learned through online quizzes, as shown in this TikTok video here.
Announcement – scroll to continue
“That’s opening the door for us, how we’ve used technology, in many ways, and in many cases, to give an experience that’s way beyond what you get in the store,” said Mann.
Instead of relying on celebrity endorsements, Mann explained, the company is “going directly to the consumer through digital channels.” The advantage of that direct-to-consumer strategy? “Don’t depend on a retailer and who they bring along those lines,” said the company’s chief financial officer.
Oddity is profitable, unlike many loss-making companies that have gone public over the past several years. In the three months ended March 31, net income was $19.6 million, up from $3 million a year ago, while net revenue rose to $165.7 million from $90.4 million.
Announcement – scroll to continue
In a securities filing, Oran Holtzman said Oddity will continue to add new brands to its platform. “We’re going after the most attractive demand groups – huge markets dominated by legacy brands, and where our technology can solve a real problem for the consumer.”
Write to Emily Dattilo at emily.dattilo@dowjones.com
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”