December 3, 2023

Oddity, the beauty and tech company that owns the Il Makiage and Spoiled Child brands, filed to go public on Friday as the once-frozen IPO market warmed up.

The Israel-based company plans to trade on Nasdaq under the symbol ODD. The company did not immediately disclose in a regulatory filing how it would price the offering, and declined to comment when asked when it would publish the figures.

Founded in 2018 by siblings Oran and Shiran Holtzman-Erel, Oddity uses data and artificial intelligence to develop brands and provide customers with tailored product recommendations.

The company’s revenue for the three months ended March 31 was $165.65 million, up from $90.41 million a year earlier. The company reported net income of $19.59 million, or $5.34 a share, compared with $3.01 million, or 82 cents a share, a year earlier.

The direct-to-consumer retailer has been profitable every year since at least 2020, according to data disclosed in its regulatory filings.

In fiscal 2022, Oddity will generate sales of $324.52 million and net income of $21.73 million, or $5.94 per share. Last year, the retailer posted a net income of $13.92 million, or $4.01 per share, on revenue of $222.56 million.

In 2020, the company had sales of $110.64 million and net income of $11.71 million, or $3.45 per share.

In an interview earlier this year, the company’s global chief financial officer, former Goldman Sachs executive Lindsay Drucker Mann, told CNBC that Oddity is making money and growing, even in dire times. This is increasingly risky for pure digital retailers in the macroeconomic environment.

At the time, Oddity shared its financial metrics with CNBC. Since launching in the U.S., the company has been profitable, with total revenue of $395 million and sales of $500 million in 2022, the company said.

Oddity’s average sales have doubled every year since 2018, the company said.

exist spoiled child first year In the marketplace, the new brand brought in $48 million in gross sales, excluding returns.

The company is looking to disrupt a market long dominated by traditional retailers by replacing the in-store experience with artificial intelligence and data-driven product recommendations.

At the heart of its business model are its proprietary technologies (including those developed by former Israeli defense officials) and the billions of data points it collects from millions of users.

In addition to developing new products and brands, Oddity is also trying to improve the efficacy of beauty products, the company said.

In late April, the company announced it would invest more than $100 million to acquire biotech startup Revela and open a U.S. lab.

The merger brought Oddity a team of scientists tasked with using artificial intelligence to create entirely new molecules that could be used in its cosmetics brand and future product lines.

2021, weird Acquisition of Voyage81is an artificial intelligence-based computational imaging startup for deep technology, founded in 2019 by Niv Price, a former R&D director at one of the elite technological units of the Israel Defense Forces, together with Dr. Boaz Arad, Dr. Rafi Gidron and Omer Shwartz.

The technology is capable of mapping and analyzing skin and hair features, detecting facial blood flow, and creating maps of melanin and hemoglobin using a common smartphone camera.

The filing comes after a year-and-a-half drought in the initial public offering market, which is just starting to open up and show signs of budding.

Earlier this month, Mediterranean restaurant chain Cava went public, with shares soaring 117% in its first day of trading.

“Investors don’t want to do an IPO (in 2022), but now that they’re making money again and issuers see that they can achieve close to decent valuations, I think that’s going to bring people back into the market.” Renaissance said Matt Kennedy, senior IPO market strategist at Capital.

“Consumer is really a good time for a time when investors can see a business model they understand, a business they’re probably familiar with, and it’s usually profitable or close to profitable, ideally with growth.”