Beauty and tech company Oddity, which runs the Il Makiage and Spoiled Child brands, filed for an IPO on Friday as the once-frozen IPO market heats up.
The Israel-based company plans to trade on the Nasdaq using the ODD ticker. The company did not immediately disclose the offer price in regulatory filings and declined to comment when asked when the figures would be released.
Launched in 2018 by brother and sister duo Oran Holtzman and Shiran Holtzman-Erel, Oddity uses data and AI to develop brands and make tailored product recommendations for customers.
In the three months ending March 31, the company had revenue of $165.65 million, up from $90.41 million a year ago. It reported net income of $19.59 million, or $5.34 per share, compared with $3.01 million, or 82 cents per share, a year earlier.
Figures revealed in its regulatory filing show the direct-to-consumer retailer has been profitable on an annual basis since at least 2020.
In fiscal 2022, Oddity had revenue of $324.52 million and net income of $21.73 million, or $5.94 per share. The previous year, the retailer posted revenue of $222.56 million and net income of $13.92 million, or $4.01 per share.
In 2020, it 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, Lindsay Drucker Mann, a former Goldman Sachs executive, told CNBC that Oddity is making money and growing, even in a macro environment. difficult that has proven to be increasingly risky for purely digital retailers.
At the time, Oddity was sharing its financial metrics with CNBC. Since its launch in the United States, it has achieved profitability and generated $395 million in gross revenue and $500 million in sales in 2022, he said.
On average, Oddity’s gross sales have doubled every year since 2018, the company said.
In Spoiled Child’s first year on the market, the new brand brought in $48 million in gross sales, which doesn’t include returns.
The company seeks to disrupt a market long dominated by traditional retailers by replacing the in-store experience with product recommendations powered by artificial intelligence and data.
At the heart of its business model is its proprietary technology – including technology developed by a former Israeli defense official – and the billions of data points it has collected from its millions of users.
Beyond developing new products and brands, Oddity is also trying to make beauty products more effective, the company said.
In late April, he announced he was investing more than $100 million to acquire biotech startup Revela and open a US-based lab.
The merger brought Oddity a team of scientists tasked with creating all-new molecules, using artificial intelligence, that can be used in its cosmetics brands and future lines.
In 2021, Oddity acquired Voyage81, a high-tech AI-based computational imaging startup founded in 2019 by Niv Price, the former head of research and development for one of the technology units of elite of the Israel Defense Forces, with Dr. Boaz Arad, Dr. Rafi Gidron and Omer Shwartz.
The technology is able to map and analyze skin and hair characteristics, detect facial blood flow, and create melanin and hemoglobin maps using a regular smartphone camera.
The filing comes after a year and a half of drought in the IPO market, which is just beginning to open up and show signs of green shoots.
Earlier this month, Mediterranean restaurant chain Cava went public and its shares soared as much as 117% on its market debut.
“[In 2022] investors didn’t want to go anywhere near IPOs but now that they’re making money again and issuers see they can achieve close to decent valuations I think that brings people back to the market,” said Matt Kennedy, a senior IPO market strategist for Renaissance Capital.
“The consumer sector lends itself to those times when investors can see a business model they understand, a company they may be familiar with, and also a generally profitable or nearly profitable business, preferably growing.”