ODD Stock Forecast & Price Target

ODDITY Tech Ltd demonstrated robust financial performance with online Direct-To-Consumer sales reaching $140.5 million, reflecting a year-over-year increase of 27.5%, and total revenue grew 24.3% to $147.9 million, exceeding consensus estimates. The company's gross margins also improved significantly to 71.6%, up by 2.4% year-over-year, surpassing previous estimates, while the guidance for FY25 gross margin was raised to approximately 72.5%. Additionally, management's revised adjusted diluted EPS forecast of $2.10 - $2.12 indicates positive earnings growth and is supported by increased revenue and adjusted EBITDA guidance for FY25, underscoring the company's strong operational momentum.

ODDITY Tech Ltd experienced a significant decline in total revenue, reporting a sequential drop of 38.7% to $147.9 million, which slightly exceeded consensus estimates but reflected underlying weaknesses. The company's adjusted EBITDA margin decreased year-over-year by 6.4% to 19.5%, indicating potential profitability pressures as competition intensifies and digital marketing effectiveness faces challenges from privacy initiatives. Additionally, projected growth appears cautious, with assumptions that higher marketing spend could further compress EBITDA margins, raising concerns regarding the sustainability of its financial performance amidst a highly competitive beauty market.