By coinnews 
00:00 Speaker A
Shares of Oddity Tech soaring in the after hours, the consumer tech firm boosts its net revenue guidance for the full year and announces a beat on the top and bottom lines. For more on the numbers, let’s welcome in now Lindsey Druckerman, Oddity Global CFO, as well as Yahoo Finance’s Julie Hyman. Of course, it is good to see you here on set. So you report your stock is ripping in the after hours. You’re up more than 21% right now. Walk us through the report. What are you seeing in the business?
00:39 Lindsey Druckerman
Listen, I think in a moment like today where there’s a lot of uncertainty in the environment, you look at Oddity and our results have been very consistent. This is two years since we went public. We’ve reported eight times. Every single time we’ve reported results, we’ve beat on the quarter and we’ve raised our full year outlook. And the reason we’re able to do that with so much consistency is because what’s affecting our business is so much more powerful than disruption and volatility in consumer spending. And it’s pretty straightforward. Number one, we compete in a very large and attractive global TAM. Beauty is $600 billion in size. It’s dominated by offline incumbents and ripe for disruption in our view. Number two, there’s two very powerful shifts happening in the category. The first is the consumers shifting online, and the second is that the consumers shifting towards high efficacy science-backed products, and those are two areas where we’re leading. And the third is that we’ve proven to be a brand scaling machine. So our first brand Il Makiage crossed $500 million of revenue last year. It’s one of the largest beauty brands in the country. Our second brand Spoiled Child, we think we’ll get to $200 million of revenue this year. We only launched it three years ago. We have a third brand that we affectionately call Brand 3 right now, which will launch later this year. It’s a telehealth platform for people with medical grade skin and body issues to start with, but we’re expanding into other medical domains after. We have a fourth brand that’s on tap for 2026. So our business is performing very, very well. We are incredibly bullish about the future right now. It’s a time where we see a lot of companies playing defense. We’re in the very fortunate position where we can continue to play offense. Our goal is to become one of the biggest beauty companies in the world and these are our objectives.
03:46 Julie Hyman
So to take a step back and look at the numbers again, and you guys saw impressive growth of 27% in revenue, you also raised your outlook, which is not something we’re hearing from a lot of companies right now. And in the statement, talk about tariffs being manageable. Where are you guys sourcing from and what are you seeing in terms of that tariff change?
04:25 Lindsey Druckerman
Yeah, so we have told the market that our objective is to deliver sustained 20% revenue growth every year at a 20% adjusted EBITDA margin. And of course, this quarter, we delivered significantly ahead of that, and it’s really a function of demand is very strong online for our products, not just for people first making their first purchase with us, but also our repeat is excellent. So part of how we run our brands is to develop very high quality brands with great products that she wants to keep coming back to over and over again. So repeat has been a really strong driver for us and that’s a very consistent part of our business. As it relates to tariffs, we’re really in the fortunate position, and we say this in our release, that it’s going to be a manageable headwind for us. First of all, because we have high gross margins, we’re a 70% ish gross margin business. We’re guiding to 71% for the full year. We actually raised our gross margin guidance from 70% to 71%. So starting with we have a favorable cost structure, but also we just don’t have that much exposure to the most challenged areas. Most of our costs come out of Europe. Uh and so we also are doing a lot of things to mitigate the impact to our P&L. We have other cost efficiency programs happening internally. But all in, it’s a very, again, manageable headwind for us this year, will be a manageable headwind for us again next year.
06:43 Julie Hyman
Do you expect to be raising prices?
06:46 Lindsey Druckerman
We’re not planning on it. We don’t think we need to and we don’t plan to.
06:50 Julie Hyman
So you’ll take it from the cost part of it.
06:53 Lindsey Druckerman
Yeah, again, it’s it’s not a enormous, it’s not a very material headwind for us and we have a lot of offsetting factors, so we don’t think we’ll need to. Yeah.
07:07 Speaker A
Lindsey, thanks so much for your time today, appreciate it.
07:10 Lindsey Druckerman
Great, thanks guys.