Oddity's business model is based on its proprietary technology, which uses AI to evaluate the effectiveness of beauty products and develop new ones. The company recently invested $100 million to acquire biotech startup Revela and establish a lab in the US. The lab uses AI to create new molecules for addressing issues like hair loss and wrinkles. Oddity also acquired Voyage81, a deep-tech startup specializing in AI-based computational imaging. The company expects Oddity Labs to contribute 30% or more to the company’s total revenue over the next five years.
Key takeaways:
- Oddity Tech reported third-quarter results showing revenue growth of 29% to 31%, attributing this to repeat sales in its Il Makiage and Spoiled Child brands.
- The company uses artificial intelligence for product development and expects a higher gross margin of 68.5% and an adjusted EBITDA margin between 21% and 21.5%.
- Oddity made a $100 million investment to acquire Revela, a biotech startup, and establish a laboratory in the United States to address problems like hair loss and wrinkles using AI.
- In 2021, Oddity finalized the acquisition of Voyage81, a deep-tech startup specializing in AI-based computational imaging, and anticipates that Oddity Labs will have 10 products prepared for the market by 2024.