ODDITY Q2 Revenue Plunges 25%, But Q3 Guidance Shows Sharp Sequential Improvement
ODD sits 54% above its 52-week low of $9.25.
Summary
ODDITY reported Q2 net revenue of $181M, down 25% year-over-year, driven by the IL MAKIAGE advertising algorithm dislocation. Adjusted EBITDA of $13M beat the high end of guidance ($10M), but net income fell to $13M from $49M a year ago. Management guided Q3 revenue to decline only ~5% YoY, a meaningful sequential improvement, and full-year revenue to decline ~19%. The company repurchased $80M of shares in Q2 and retired $50M of exchangeable notes at a discount. The stock is likely to react to the sharp revenue decline and the credibility of the Q3 recovery narrative.
At the time of this announcement, ODD was trading at $14.25 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $600.8M. The 52-week trading range was $9.25 to $64.23. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.