Oddity Tech Ltd (ODD) 2023 Q3 法說會逐字稿

Good day, and welcome to the ODDITY Tech earnings call. Today's call is being recorded. (Operator Instructions)

美好的一天，歡迎參加 ODDITY Tech 財報電話會議。今天的通話正在錄音。 （操作員說明）

At this time, I'd like to turn the conference over to Maria Lycouris, Investor Relations for ODDITY. Thank you. You may begin.

這次，我想將會議交給 ODDITY 投資者關係部的 Maria Lycouris。謝謝。你可以開始了。

Thank you, operator. I'm joined by Oran Holtzman, ODDITY Co-founder and CEO; and Lindsay Drucker Mann, ODDITY's Global CFO.

謝謝你，接線生。 Oran Holtzman 也加入了我的行列，他是 ODDITY 聯合創辦人兼執行長；和 ODDITY 全球財務長 Lindsay Drucker Mann。

As a reminder, management's remarks on this call that do not concern past events are forward-looking statements. These include predictions, expectations or estimates, including statements about ODDITY's business strategy, market opportunity, future financial performance and potential long-term success. Forward-looking statements involve risks and uncertainties, and actual results could differ materially due to a variety of factors. These factors are described under forward-looking statements in our earnings press release issued yesterday and in our prospectus filed with the Securities and Exchange Commission on July 18, 2023. We do not undertake any obligation to update forward-looking statements, which speak only as of today.

提醒一下，管理階層在本次電話會議上發表的與過去事件無關的言論均為前瞻性陳述。其中包括預測、預期或估計，包括有關 ODDITY 業務策略、市場機會、未來財務表現和潛在長期成功的陳述。前瞻性陳述涉及風險和不確定性，實際結果可能因多種因素而有重大差異。這些因素在我們昨天發布的收益新聞稿和2023 年7 月18 日向美國證券交易委員會提交的招股說明書中的前瞻性陳述中進行了描述。我們不承擔任何更新前瞻性陳述的義務，這些陳述僅代表以下情況：今天的。

Finally, during this call, we will discuss certain non-GAAP financial measures, which we believe are useful supplemental measures for understanding our business. Additional information about these non-GAAP financial measures, including their definitions, are included in our earnings press release, which we issued yesterday. I will now hand the call over to Oran.

最後，在本次電話會議中，我們將討論某些非公認會計準則財務指標，我們認為這些指標對於了解我們的業務是有用的補充指標。有關這些非公認會計準則財務指標的更多資訊（包括其定義）包含在我們昨天發布的收益新聞稿中。我現在將電話轉交給奧蘭。

Thank you, everyone, for joining us today. We are glad to report our third quarter results today, which beat our guidance issued back in August on every metric and also exceeded the preliminary results we recently communicated in October. Revenue is growing faster. Gross margins are higher, and adjusted EBITDA is better than we expected. This is despite our real effort to pace our growth and slowdown as we historically have done in H2.

謝謝大家今天加入我們。我們很高興今天報告我們的第三季業績，該業績在每項指標上都超過了我們 8 月發布的指導，也超過了我們最近在 10 月公佈的初步業績。收入增長較快。毛利率較高，調整後 EBITDA 好於我們的預期。儘管我們確實像下半年那樣努力調整成長和放緩的速度，但情況仍然如此。

With this record-breaking quarter, we will deliver net revenue growth of 60% and adjusted EBITDA of $91 million for the first 9 months of this year. We are scaling at a speed that beats legacy incumbents but also the majority of Internet consumer companies and with profit margins and cash flows that are rare in other growth companies. This outstanding financial performance reflects the strength of our platform, the health of all brands, our strong disciplined teams and the massive runway we have in front of us.

在這個破紀錄的季度中，我們今年前 9 個月的淨收入將成長 60%，調整後的 EBITDA 將達到 9,100 萬美元。我們的擴張速度不僅超過了傳統企業，也超過了大多數網路消費公司，其利潤率和現金流在其他成長型公司中是罕見的。這一出色的財務表現反映了我們平台的實力、所有品牌的健康狀況、我們強大的紀律團隊以及我們面前的廣闊跑道。

Our large investment in technology and data capabilities over the past 5 years are enabling us to continue to grow fast without damaging our high margins and profitability. Our tech team is still the largest team in the company, represents approximately 40% of total head count.

過去 5 年我們對技術和數據能力的大量投資使我們能夠繼續快速成長，而不會損害我們的高利潤和獲利能力。我們的技術團隊仍然是公司最大的團隊，約佔總人數的 40%。

At the center of our success is our powerful financial model which, from the beginning, we designed to deliver a real combination of scale, growth and profitability. On scale, we expect to break new records again in 2023, growing revenue more than 50% and with over 50% coming from repeat customers, which is very rare in our industry. We believe we are already the largest D2C platform in our industry and have a massive user base with over 40 million users, who are our design partners for future products, categories and brand launches.

我們成功的核心是我們強大的財務模式，從一開始，我們就旨在實現規模、成長和獲利能力的真正結合。從規模來看，我們預計2023年將再次打破新紀錄，營收成長超過50%，其中超過50%來自回頭客，這在我們這個行業是非常罕見的。我們相信我們已經是業界最大的D2C平台，擁有超過4000萬用戶的龐大用戶群，他們是我們未來產品、品類和品牌發布的設計合作夥伴。

On growth, we expect to deliver more than 50% growth this year after having delivered around 50% last year and 100% the year before that. But although our high growth, we could have done way more. We believe we have massive runway ahead and have built so many engines to allow us to continue to grow. We believe both IL MAKIAGE and SpoiledChild will be $1 billion-plus brands, and we are building our future brands to have meaningful addition to our company.

在成長方面，我們預計今年將實現 50% 以上的成長，去年的成長約為 50%，前年為 100%。儘管我們的成長速度很快，但我們本可以做得更多。我們相信，我們前面有廣闊的跑道，並且已經製造瞭如此多的引擎，使我們能夠繼續發展。我們相信 IL MAKIAGE 和 SpoiledChild 都將成為價值超過 10 億美元的品牌，我們正在建立未來的品牌，為我們公司帶來有意義的補充。

On profitability, we continue to deliver margins and cash flows well ahead of other growth businesses. We expect to deliver over $100 million of adjusted EBITDA this year alone, which is a 21% margin.

在獲利能力方面，我們的利潤率和現金流量繼續遠遠領先其他增長型業務。我們預計光是今年就將實現超過 1 億美元的調整後 EBITDA，即 21% 的利潤率。

Before diving into the quarter, I want to discuss our industry and why I'm so bullish about the opportunity ahead of us. First, we operate in what we believe is one of the most lucrative times in the world. The global beauty and wellness market is over $600 billion in size and dominated by offline legacy incumbents. There are a huge number of beauty and wellness subcategories for us to go after, which are large in size and are waiting for a proper online access.

在深入了解本季之前，我想討論一下我們的行業以及為什麼我如此看好我們面前的機會。首先，我們認為現在是世界上最賺錢的時代之一。全球美容和健康市場規模超過 6,000 億美元，由線下傳統企業主導。有大量的美容和健康子類別可供我們關注，這些子類別規模很大，正在等待適當的線上訪問。

Second, consumers are shifting online, and this is our strength. Today, online is around 25% of the industry sales, and we believe it will reach 50% in the next years. But in order to win online, you need to deliver experience that is even better than a store, and therefore, data and technology capabilities are critical. With all due respect to my competitors, we are simply playing different games. And as it relates to technology, to data, not to mention talent and operating structure, we believe we are simply years ahead, but still running like a start-up to ensure we preserve our lead.

其次，消費者正在轉向線上，這是我們的優勢。如今，線上銷售額約佔產業銷售額的 25%，我們相信未來幾年將達到 50%。但為了在線上獲勝，您需要提供比商店更好的體驗，因此數據和技術能力至關重要。恕我直言，我們只是在玩不同的遊戲。由於它涉及技術、數據，更不用說人才和營運結構，我們相信我們只是領先了幾年，但仍然像新創公司一樣運行，以確保我們保持領先地位。

Third, we build amazing brands and amazing products, and we have proved that ODDITY is a brand-scaling machine. Our track record speaks for itself. IL MAKIAGE is the largest online beauty brand in the U.S. and either #1 or #2 in almost every international market it has launched. SpoiledChild is expected to achieve $100 million of net revenue this year after only just launching in 2022 multiple categories, hair and skin, and success across a very wide demographic, all of this with very high customer satisfaction, best-in-class repeat rates and consistent and healthy growing cohorts.

第三，我們打造了令人驚嘆的品牌和令人驚嘆的產品，我們已經證明 ODDITY 是一台品牌擴張機。我們的業績記錄不言而喻。 IL MAKIAGE 是美國最大的線上美容品牌，在其推出的幾乎每個國際市場中都排名第一或第二。 SpoiledChild 在2022 年剛推出多個類別、頭髮和皮膚，並在非常廣泛的人群中取得成功，預計今年將實現1 億美元的淨收入，所有這些都具有非常高的客戶滿意度、一流的重複率和持續健康成長的族群。

Brand 3 and Brand 4 are already in the making with dozens of talented folks dedicated to develop it. Both brands will be launched in 2025 and are responsible for at least 40% of my time and focus as CEO.

品牌 3 和品牌 4 已經在醞釀中，有數十名才華橫溢的人員致力於開發。這兩個品牌都將於 2025 年推出，並且佔用了我作為執行長至少 40% 的時間和精力。

The next stage of our evolution is with ODDITY Labs and unleashing biotech for our industry to create the next generation of high-efficacy products. Consumers today are smarter than ever. They start to demand real high-efficacy science-backed products to solve their pain points.

我們發展的下一階段是與 ODDITY Labs 合作，為我們的產業釋放生物技術，創造下一代高效產品。今天的消費者比以往任何時候都更聰明。他們開始需要真正有效率、有科學支援的產品來解決他們的痛點。

High-performing products are not new to us. They are already central to our model and a huge part of why we are so profitable. No quality means no repeat. No repeat means no profitability. And based on my knowledge, we have the best repeat rates in the industry. We operate a world-class of in-house product development engine that I believe beats most of the brands in the industry. That's because we launch products based on data. We are not like other brands that launch based on what head stylist says or based on what Sephora or supplier says. Data drives us, no exceptions, no compromises.

高性能產品對我們來說並不新鮮。它們已經成為我們模式的核心，也是我們如此獲利的重要原因。沒有品質就意味著沒有重複。沒有重複就意味著沒有獲利。據我所知，我們擁有業內最好的重複率。我們擁有世界一流的內部產品開發引擎，我相信它擊敗了業內的大多數品牌。那是因為我們推出基於數據的產品。我們不像其他品牌那樣根據首席造型師的說法或絲芙蘭或供應商的說法推出產品。數據驅動我們，沒有例外，沒有妥協。

But as entrepreneurs who luckily found themselves in beauty, we never stop and we're never satisfied. ODDITY LABS take us to the next level in terms of physical products and innovation. It was always my dream to use technology to develop high-efficacy products with strong and new ingredients. I was hunting for this opportunity for years, and with Revela, we found the perfect match. Since closing the acquisition in May, we have made so much progress in building ODDITY LABS to be the AI-based ingredient development platform of our industry, attracting amazing talent and moving fast across a huge road map.

但作為幸運地發現自己處於美麗之中的企業家，我們永遠不會停止，我們永遠不會滿足。 ODDITY LABS 將我們的實體產品和創新提升到了一個新的水平。利用科技開發新成分、高效能的產品一直是我的夢想。多年來我一直在尋找這個機會，而與 Revela 一起，我們找到了完美的搭配。自從五月完成收購以來，我們在將 ODDITY LABS 打造成業界基於人工智慧的成分開發平台方面取得了很大進展，吸引了優秀的人才，並在巨大的路線圖上快速前進。

ODDITY LABS will be one of our main growth engines for all brands. We are truly building something that was never done before. You don't see its contribution in our current earnings today, just expenses, but I'm more bullish than ever. It is the same feeling that I had when we started to build our R&D center in Tel Aviv.

ODDITY LABS 將成為我們所有品牌的主要成長引擎之一。我們正在真正建立一些以前從未做過的東西。你看不到它對我們今天當前收益的貢獻，只是支出，但我比以往任何時候都更樂觀。這和我們開始在特拉維夫建立研發中心時的感受是一樣的。

Before I hand the call over to Lindsay, let me touch on Israel, where we have our R&D center but most importantly, where my heart and toes are in those sad days. First, the unwavering support I get daily from teammates, entrepreneurs, CEOs and friends is unbelievable, and I deeply appreciate it. Since so many people stand with Israel and [we try] to defend itself makes it a bit more bearable in this insane situation. We at ODDITY are doing everything we can to support our people and the country at this time. This is our duty and we'll continue to do so.

在我把電話交給 Lindsay 之前，讓我先談談以色列，我們在那裡有我們的研發中心，但最重要的是，在那些悲傷的日子裡，我的心和腳趾都在那裡。首先，我每天從隊友、企業家、執行長和朋友那裡得到的堅定支持令人難以置信，我對此深表感謝。由於有這麼多人與以色列站在一起，並且[我們試圖]保衛自己，這使得在這種瘋狂的情況下變得更容易忍受。此時此刻，我們 ODDITY 正在竭盡全力支持我們的人民和國家。這是我們的職責，我們將繼續這樣做。

As for the business, there have been no meaningful disruption. Of course, we are monitoring the situation very closely, and we don't expect any material impact on Q4 or on 2024 results. Our teams in Tel Aviv are operating remotely since the beginning of the war, and we have had a limited number of employees call for [resource]. And now I'll hand over to Lindsay.

至於業務，沒有發生任何有意義的中斷。當然，我們正在密切關注事態發展，預計不會對第四季或 2024 年業績產生任何重大影響。自戰爭開始以來，我們在特拉維夫的團隊一直在遠端操作，我們只有數量有限的員工需要[資源]。現在我將把任務交給 Lindsay。

Thanks, Oran. We're pleased with our third quarter financial results and the momentum that continued into the fourth quarter. Our business is firing on all cylinders, and we're in excellent shape for 2024. Our teams achieved a number of unlocks through hard work, planning, testing and iterating that are now in our arsenal for execution next year, starting with the successful first quarter. We will issue 2024 guidance when we report Q4 results next year, and we're confident in our ability to continue to deliver strong growth across brands and product categories at attractive margins and with healthy user cohorts that fortify our overall model.

謝謝，奧蘭。我們對第三季的財務業績以及持續到第四季的勢頭感到滿意。 Our business is firing on all cylinders, and we're in excellent shape for 2024. Our teams achieved a number of unlocks through hard work, planning, testing and iterating that are now in our arsenal for execution next year, starting with the successful first四分之一.我們將在明年報告第四季業績時發布 2024 年指引，我們相信我們有能力繼續以有吸引力的利潤率實現跨品牌和產品類別的強勁增長，並擁有鞏固我們整體模式的健康用戶群。

Turning to the quarter. Net revenue grew 37% year-over-year to $94.5 million, above the 18% to 23% guidance we communicated in August. Drivers of growth in the quarter are consistent with what we discussed on our October call. Both IL MAKIAGE and SpoiledChild brands exceeded our expectations. Repeat growth was stronger than we had originally modeled, which drove the upside versus our original guidance.

轉向季度。淨收入年增 37% 至 9,450 萬美元，高於我們 8 月公佈的 18% 至 23% 指導值。本季的成長驅動因素與我們在 10 月電話會議上討論的內容一致。 IL MAKIAGE 和 SpoiledChild 品牌都超出了我們的預期。重複成長比我們最初建模的要強，這推動了與我們最初指導相比的上行。

Importantly, our revenue growth was of high quality and profitability and generated across a range of products and categories. The successful expansion of new products and categories, including in skin and hair, are seeds that we planted less than 2 years ago and have grown today into powerful foundation, off of which we're building large and dominant franchises. These are incremental to our existing products. They expand our overall TAM and create deeper relationships with our users.

重要的是，我們的收入成長具有高品質和盈利能力，並且來自一系列產品和類別。新產品和新類別（包括皮膚和頭髮）的成功擴展是我們在不到兩年前播下的種子，如今已發展成為強大的基礎，我們正在以此為基礎建立大型且占主導地位的特許經營權。這些是我們現有產品的增量。他們擴展了我們的整體 TAM，並與我們的用戶建立了更深的關係。

Moving down the P&L. We generated gross profit of $66.4 million, a 41% increase versus the prior year. This represents a 70.3% gross margin in the quarter, which is 280 basis points better than the 67.5% guidance we issued.

損益表向下移動。我們的毛利為 6,640 萬美元，比上年增長 41%。這意味著本季毛利率為 70.3%，比我們發布的 67.5% 指導值高出 280 個基點。

Gross margin expanded 217 basis points year-over-year. The increase was driven by cost efficiencies at both brands, which have benefited from specific cost optimization efforts relative to the prior year. While SpoiledChild has continued to make good progress in narrowing the gross margin gap to IL MAKIAGE, it still operates at a lower gross margin and will drive some negative gross margin mix shift as it becomes a larger portion of overall sales.

毛利率年增 217 個基點。這一成長是由兩個品牌的成本效率所推動的，這得益於相對於上一年的具體成本優化工作。儘管SpoiledChild 在縮小與IL MAKIAGE 的毛利率差距方面繼續取得良好進展，但其毛利率仍然較低，並且隨著其在整體銷售額中所佔的比例越來越大，將推動一些負毛利率組合的轉變。

Adjusted EBITDA increased 227% to $20.8 million in the quarter. This represents a 22% adjusted EBITDA margin above the 20% to 21.5% initial guidance we delivered back in August. Adjusted EBITDA margin in the quarter expanded 1,280 basis points versus the prior year driven by our gross margin expansion as well as improved OpEx efficiency, including improved efficiency on our marketing spend as we throttled back new user acquisition costs and generated the majority of our revenues from repeat customers.

本季調整後 EBITDA 成長 227%，達到 2,080 萬美元。這意味著調整後的 EBITDA 利潤率比我們 8 月發布的 20% 至 21.5% 的初始指導高出了 22%。本季度調整後的EBITDA 利潤率比上年同期增長了1,280 個基點，這得益於我們的毛利率擴張以及運營支出效率的提高，其中包括由於我們降低了新用戶獲取成本並通過提高營銷支出的效率而提高了我們大部分的收入回頭客。

We reinvested a portion of these EBITDA tailwinds into future growth, including investment in future brands and products as well as ODDITY LABS. It's also worth noting that we delivered this robust EBITDA margin expansion despite higher revenue contribution from SpoiledChild, which today carries lower EBITDA margins than IL MAKIAGE.

我們將這些 EBITDA 的一部分再投資於未來的成長，包括對未來品牌和產品以及 ODDITY LABS 的投資。另外值得注意的是，儘管 SpoiledChild 的營收貢獻較高，但我們仍實現了強勁的 EBITDA 利潤率擴張，而 SpoiledChild 目前的 EBITDA 利潤率低於 IL MAKIAGE。

Adjusted pretax income increased 304% to $20.7 million driven by the adjusted EBITDA growth. Our adjusted tax rate was 37.1% in the quarter, a bit more favorable than the 43.5% rate we guided to. This elevated tax rate was driven by nondeductible expenses associated with our IPO. We delivered adjusted net income of $13 million and adjusted diluted EPS of $0.21. Diluted average shares were $61.4 million. Reported net income was $3.8 million, and reported diluted earnings per share were $0.06 in the quarter.

受調整後 EBITDA 成長的推動，調整後稅前收入成長 304%，達到 2,070 萬美元。我們本季調整後的稅率為 37.1%，比我們指導的 43.5% 的稅率要優惠一些。稅率上升是由與我們的首次公開發行相關的不可扣除費用所推動的。我們的調整後淨利潤為 1300 萬美元，調整後稀釋每股收益為 0.21 美元。稀釋後平均股本為 6,140 萬美元。該季度報告的淨利潤為 380 萬美元，稀釋後每股收益為 0.06 美元。

Adjustments to GAAP this quarter include $12.2 million of stock-based compensation expense. As we mentioned on our 2Q call, our 3Q stock-based comp was elevated this quarter due to accelerated vesting related to our IPO. We continue to expect a step down in stock-based comp expense in the fourth quarter to $8 million.

本季 GAAP 調整包括 1,220 萬美元的股票薪酬費用。正如我們在第二季電話會議中所提到的，由於與我們的 IPO 相關的加速兌現，我們的第三季基於股票的比較在本季度有所提高。我們繼續預期第四季基於股票的補償費用將下降至 800 萬美元。

We exited the quarter with $164 million of cash, short-term deposits and restricted cash on our balance sheet and 0 debt. Our balance sheet strength is a function of our robust profitability and excellent returns on capital, which yield attractive cash flows at high cash conversion. Year-to-date, we generated $78 million of free cash flow driven by roughly $79.5 million of cash from operations and $1.5 million of CapEx.

本季結束時，我們的資產負債表上有 1.64 億美元的現金、短期存款和限制性現金，債務為零。我們的資產負債表實力取決於我們強勁的獲利能力和出色的資本回報率，這在高現金轉換率下產生了有吸引力的現金流。今年迄今為止，我們產生了 7,800 萬美元的自由現金流，這主要得益於約 7,950 萬美元的營運現金和 150 萬美元的資本支出。

Before I turn to our outlook, I want to touch on 3 big-picture drivers. First, as it relates to the consumer broadly, there is no change to what we discussed in early October. We have not seen signs of macro softening in our business. Again, we do believe our model is relatively insulated based on our idiosyncratic growth drivers and our model's inherent agility and also because of the beauty category's resilience and our broad demographic appeal, although we are, of course, watching closely.

在展望我們的前景之前，我想先談談三個主要驅動因素。首先，由於它與消費者廣泛相關，因此我們在 10 月初討論的內容沒有變化。我們的業務尚未看到宏觀疲軟的跡象。同樣，我們確實相信，基於我們獨特的成長動力和我們模型固有的敏捷性，以及美容品類的彈性和我們廣泛的人口吸引力，我們的模型相對隔離，儘管我們當然正在密切關注。

Second, as Oran mentioned, our business continues to be very strong, and we see significant near-term and long-term runway for growth and profitability. Third, we continue to find attractive high-return reinvestment opportunities to support the expansion of new brands and product categories across our platform, and our discipline and success in building a high-margin, cash-generative business today puts us in a position of strength to make these investments. We will continue to reinvest for the future while maintaining revenue growth of at least 20% and EBITDA margins of at least 20% over the long term.

其次，正如奧蘭所提到的，我們的業務仍然非常強勁，我們看到了近期和長期的成長和獲利能力。第三，我們繼續尋找有吸引力的高回報再投資機會，以支持在我們平台上擴展新品牌和產品類別，而我們今天在建立高利潤、創收現金業務方面的紀律和成功使我們處於優勢地位進行這些投資。我們將繼續為未來進行再投資，同時長期維持至少 20% 的營收成長和至少 20% 的 EBITDA 利潤率。

Now turning to our outlook. For the full year 2023, we expect net revenue growth between 52% and 53%, representing net revenue dollars between $493 million and $497 million. Our revenue growth outlook is an increase from our previous expectation of revenue growth between 46% and 48%. We expect gross margins of approximately 70%, an increase from our prior expectation of 69.5%. We expect adjusted EBITDA will be between $104 million and $105 million, and we expect adjusted EBITDA margin of 21%, which is at the high end of our prior expectation for adjusted EBITDA margin in a range of 20% to 21%.

現在轉向我們的展望。對於 2023 年全年，我們預計淨收入成長在 52% 至 53% 之間，即淨收入在 4.93 億美元至 4.97 億美元之間。我們的營收成長預期較先前的營收成長預期提高了 46% 至 48%。我們預計毛利率約為 70%，高於我們先前預期的 69.5%。我們預計調整後 EBITDA 將在 1.04 億美元至 1.05 億美元之間，調整後 EBITDA 利潤率預計為 21%，這是我們先前預期調整後 EBITDA 利潤率 20% 至 21% 的上限。

We expect adjusted diluted EPS between $1.21 and $1.23, an increase from our prior expectation of $1.11 to $1.17. This assumes a tax rate of approximately 25.5% and average fully diluted shares of approximately 60 million. We also issued a detailed outlook for the fourth quarter, and you can find that in our press release. With that, I'll hand the call back to Oran.

我們預計調整後攤薄每股收益在 1.21 美元至 1.23 美元之間，高於我們先前預期的 1.11 美元至 1.17 美元。假設稅率約為 25.5%，平均完全稀釋股份約為 6,000 萬股。我們也發布了第四季度的詳細展望，您可以在我們的新聞稿中找到。這樣，我會將電話轉回奧蘭。

Operator, we are now ready to take your questions.

接線員，我們現在準備好回答您的問題。

(Operator Instructions). The first question comes from Dara Mohsenian with Morgan Stanley.

（操作員說明）。第一個問題來自摩根士丹利的 Dara Mohsenian。

First, our thoughts are with you guys with the situation in Israel, so best of luck. And secondly, maybe if we could just focus on the molecule side of things and discovery there over time. Can you just give us an update on your plans, if they've changed at all, and sort of the commercialization of that molecule discovery with ODDITY LABS and how you think about the pace of potential revenue payoff from that over the next couple of years here?

首先，我們對以色列的局勢表示同情，祝你們好運。其次，也許我們可以專注於事物的分子方面並隨著時間的推移進行發現。您能否向我們介紹一下您的計劃的最新情況（如果它們有任何改變），以及與 ODDITY LABS 合作發現的分子的商業化情況，以及您如何看待未來幾年潛在收入回報的速度這裡？

And then second, just in terms of the higher repeat rates in the quarter and that driving upside. As you look beyond this year and the higher revenue base, how does that impact maybe the way you think about the underlying growth of this business beyond this year?

其次，就本季較高的重複率和推動上漲而言。當您展望今年之後以及更高的收入基礎時，這對您對今年之後該業務的潛在成長的看法有何影響？

Thank you for that. I'll start with ODDITY LABS and then we'll touch repeat rate. Look, as I mentioned before, it was my dream to use technology to develop better ingredients. Our industry still look the same as when I started the company, same ingredients, same manufacturers serving same companies. And with ODDITY LABS, we are doing something different and we are about to change it. Revela and ODDITY LABS use the same technology being developed in pharma to develop higher-efficacy molecules. This opportunity is endless. And this is why I spend so much time -- of my time as the CEO around this topic.

謝謝你。我將從 ODDITY LABS 開始，然後我們將觸及重複率。瞧，正如我之前提到的，我的夢想是利用科技開發更好的原料。我們的行業看起來仍然和我創辦公司時一樣，相同的成分，相同的製造商為相同的公司提供服務。透過 ODDITY LABS，我們正在做一些不同的事情，並且我們即將改變它。 Revela 和 ODDITY LABS 使用製藥領域正在開發的相同技術來開發更高功效的分子。這個機會是無限的。這就是為什麼我作為執行長花了這麼多時間圍繞這個主題。

As I mentioned in the call, we see a way smarter consumer today. We see how much time she spend a lot on our product pages and how many questions she asks, which leads us to believe that we are going to see a trend towards science-backed products regardless of brand itself, call it, product love versus just brand love in beauty.

正如我在電話中提到的，我們今天看到了更聰明的消費者。我們看到她在我們的產品頁面上花了多少時間以及她提出了多少問題，這使我們相信我們將看到一種趨勢，即無論品牌本身如何，我們都會看到科學支持的產品的趨勢，稱之為產品熱愛而非僅僅追求產品。品牌對美的熱愛。

In terms of how we market it, it's -- that's the magic because we are D2C model. We use our user base to build segmentations and profile, then we build the product, then we are going back to the consumer and to the user and offering that new molecule or new product, if you want.

就我們的行銷方式而言，這就是神奇之處，因為我們採用 D2C 模式。我們利用我們的用戶群來建立細分和概況，然後我們建立產品，然後我們將回到消費者和用戶那裡，如果您願意的話，可以提供新分子或新產品。

But also, when it comes to ODDITY LABS, there is no change to the criteria of how we think about market opportunities. Has to be a huge TAM where we see real demand opportunity, where the unit economics work for online and where we believe we can truly solve the consumer pain point, which loves it, makes our life easier just because if in the past, I just had the users and I need to develop product based on their need. Now I have a huge engine for product development with science-backed products.

而且，當談到 ODDITY LABS 時，我們看待市場機會的標準並沒有改變。必須是一個巨大的TAM，在那裡我們看到真正的需求機會，單位經濟學在網上發揮作用，我們相信我們可以真正解決消費者的痛點，這讓我們喜歡它，讓我們的生活更輕鬆，因為如果在過去，我只是有用戶，我需要根據他們的需求開發產品。現在我擁有了一個巨大的產品開發引擎，可以提供有科學支援的產品。

Just like when meeting the teams and see the talent and the amount of PRGs that we have now in Boston, it's something that is unrelated to the industry because so far, we saw those talents simply just in pharma. It's the first time that I see a team, thank God it's our team, that is working around beauty and building something better.

就像在與團隊見面並看到我們現在在波士頓擁有的人才和 PRG 數量一樣，這與行業無關，因為到目前為止，我們只在製藥行業看到了這些人才。這是我第一次看到一個團隊，感謝上帝，這是我們的團隊，正在圍繞著美工作並創造更好的東西。

So as for the future, next year, we are launching 10 products coming from ODDITY LABS, but this is nothing like -- the runway and the pipeline that we have with ODDITY LABS is huge. Therefore, we continue to hire and therefore, I continue to spend a huge portion of my time around ODDITY LABS.

就未來而言，明年我們將推出來自 ODDITY LABS 的 10 款產品，但這完全不同——我們與 ODDITY LABS 的跑道和產品線是巨大的。因此，我們繼續招聘，因此，我繼續將大部分時間花在 ODDITY LABS 上。

Again, today, you see 2 brands. Brand 3 and Brand 4 are in the making. Brand 3 is going to use the services -- ODDITY LABS because part of -- a significant part of the product range are going to come from there. But it's also great for SpoiledChild and IL MAKIAGE. For the first time, both product development teams are working with ODDITY LABS for different products, something that we didn't believe that can be done in the industry because like that's what we were told by manufacturers. But now like a new world is open to us. And again, it's very early and -- but like I believe this is the future of the company.

今天，您再次看到兩個品牌。品牌 3 和品牌 4 正在製作中。品牌 3 將使用 ODDITY LABS 的服務，因為產品系列的很大一部分將來自那裡。但它對於 SpoiledChild 和 IL MAKIAGE 來說也很棒。這是兩個產品開發團隊第一次與 ODDITY LABS 合作開發不同的產品，我們認為這在業界是不可能做到的，因為就像製造商告訴我們的那樣。但現在就像一個新世界向我們敞開了。再說一次，現在還很早——但我相信這就是公司的未來。

As for repeat rate, again, repeat, like, is going -- when people ask me about our bid to predict the business, obviously, it's easier because we are not relying on any third party. It's a D2C model, very easy to understand the cohort in the business. And it's my decision where I want to turn on or off or cut back spend for new user acquisition.

至於重複率，再次重複，就像，當人們問我我們預測業務的出價時，顯然，這更容易，因為我們不依賴任何第三方。這是一種D2C模式，非常容易了解業務中的群體。我決定開啟或關閉或削減新用戶獲取的支出。

But one thing I cannot see is with new products or new brands, like the repeat rate. And what we missed here on -- again, it's not miss, we beat, it's like the repeat rate coming from SpoiledChild exceed my expectations, and that's why the revenue came stronger this quarter.

但我看不到的一件事是新產品或新品牌，例如重複率。我們在這裡錯過了什麼——再說一次，這不是錯過，我們擊敗了，就像 SpoiledChild 的重複率超出了我的預期，這就是為什麼本季收入變得更強的原因。

And I don't see any ceiling, like every cohort is getting better and better. And it's both because we are using our data better, but also because we are -- because we just put the right product in the right hands. So we expect the repeat rate continue to grow and to continue to see the vast majority of our revenue coming from repeat customers, which is very healthy, and that's why we are able to generate cash every month, every quarter.

我看不到任何上限，就像每個群體都在變得越來越好。這既是因為我們更好地利用了我們的數據，也是因為我們只是將正確的產品交給了正確的人。因此，我們預期回頭客率將繼續成長，並繼續看到我們的絕大多數收入來自回頭客，這是非常健康的，這就是為什麼我們每個月、每季都能產生現金。

Dara, I'll just add quickly to what Oran said. On your first question, as it relates to ODDITY LABS, there is no change based on labs to our long-term algorithm of 20% plus revenue, 20% plus EBITDA margins. And the way that we're driving that business is still in a very asset-efficient way, cost-efficient way with high profitability and high cash flow. So despite the fact that, that piece of the business is coming together even better and stronger than what we had anticipated, there's no change to how it affects us financially.

達拉，我將快速補充奧蘭所說的內容。關於你的第一個問題，因為它與 ODDITY LABS 有關，所以基於實驗室，我們的長期演算法（20% 加收入、20% 加 EBITDA 利潤率）沒有變化。我們推動該業務的方式仍然是一種非常資產高效、成本高效的方式，具有高盈利能力和高現金流。因此，儘管事實上，這部分業務的整合比我們預期的更好、更強大，但它對我們財務的影響並沒有改變。

The next question comes from Scott Schoenhaus with KeyBanc.

下一個問題來自 KeyBanc 的 Scott Schoenhaus。

I actually wanted to follow up on ODDITY LABS as well. So just wanted to confirm, I think last time you commented that there were 10 products coming out of the labs in next year. And as a follow-up question, can you talk about how ODDITY LABS and the combination of your vision tech will be deployed for diagnostics for your upcoming brands?

其實我也想跟進 ODDITY LABS。所以我想確認一下，我想你上次評論說明年會有 10 個產品從實驗室出來。作為後續問題，您能否談談如何部署 ODDITY LABS 和您的視覺技術組合來為您即將推出的品牌進行診斷？

Sure. Yes. So as I mentioned, 10 products are going to hit the market next year coming from ODDITY LABS. To the second question, like, the way that we do it in -- within the company, we have 2 types of labs: one is the tech side and the other one is [science] in Boston, one in Tel Aviv, one in Boston.

當然。是的。正如我所提到的，ODDITY LABS 明年將有 10 種產品推出市場。對於第二個問題，我們的做法是－在公司內部，我們有兩種類型的實驗室：一種是技術方面的，另一種是在波士頓的[科學]，一個在特拉維夫，一個在特拉維夫。波士頓。

So the diagnosis of Brand 3 is going to be done with our -- by our computer vision technology from the team in Tel Aviv, and the products in development from ODDITY LABS. So both R&D centers are working to develop something better for Brand 3, which is a medical-grade skin and body brand, which rely heavily on diagnosis, which is coming from computer vision.

因此，品牌 3 的診斷將透過我們特拉維夫團隊的電腦視覺技術以及 ODDITY LABS 正在開發的產品來完成。因此，兩個研發中心都在努力為 Brand 3 開發更好的產品，這是一個醫療級皮膚和身體品牌，嚴重依賴來自電腦視覺的診斷。

Great. Can I ask just one more follow-up? Given the growth that you're seeing or the unexpected pace of advancement on the ODDITY LABS, can you talk about how Evan and his team are hiring? I know Lindsay just mentioned that the margin profile and the cost controls will be in place to maintain your long-term objective. But just talk to me about -- obviously, you're hitting your targets there faster than expected. What are the -- what's Evan and his team doing to have the labor behind that?

偉大的。我可以再問一個後續問題嗎？鑑於您所看到的成長或 ODDITY LABS 意想不到的進步速度，您能談談 Evan 和他的團隊是如何招募的嗎？我知道林賽剛剛提到，利潤狀況和成本控制將到位，以維持您的長期目標。但只要和我談談——顯然，你實現目標的速度比預期的還要快。埃文和他的團隊正在做什麼來為此付出努力？

Yes. Sure. So when we started, we gave them like a small amount of tasks that we ask for both IL MAKIAGE and SpoiledChild. And when we saw that it's truly like -- that they can do way more, we added more projects. And again, all projects came from true needs coming from users as we see it in our platform. And then I asked Evan, like, let's try to see if we can add more, like, to increase the manpower and to have like -- to continue to have the same level of talent, but let's grow the team. And surprisingly, we saw that we were able to do it. We grew the team 3x in just a few months. People are excited to work on something different than just pharma using the same technology.

是的。當然。因此，當我們開始時，我們給了他們一些 IL MAKIAGE 和 SpoiledChild 要求的少量任務。當我們看到他們確實可以做得更多時，我們添加了更多項目。再說一遍，所有項目都來自用戶的真實需求，正如我們在平台上看到的那樣。然後我問埃文，讓我們試著看看是否可以增加更多，例如，增加人力，並繼續擁有相同水平的人才，但讓我們發展團隊。令人驚訝的是，我們發現我們能夠做到這一點。我們的團隊在短短幾個月內就擴大了三倍。人們很高興能夠使用相同的技術從事與製藥不同的事情。

And again, talent attracted talent. And when you see -- if you -- one day, I would like to visit them. Or if you are in Boston, you'll see the talent there. You will understand why it's easier for us to recruit.

再一次，人才吸引人才。當你看到──如果你──有一天，我想去拜訪他們。或者，如果您在波士頓，您會看到那裡的人才。您會明白為什麼我們更容易招募。

In addition, the biotech, it's not an easy industry today. So we are leveraging the fact that we are profitable and we are -- we don't need external capital to continue to grow, which makes it very attractive for this talent who wants stability. So we continue to grow the team. And since our margin is a bit stronger than what we envisioned, it allow me to continue to invest, and that's why we didn't come this quarter with 25% margin. We invest in lab and we invest in building teams, so Brand 3 and Brand 4.

此外，生物技術今天也不是一個容易的行業。因此，我們正在利用這樣一個事實：我們是盈利的，而且我們不需要外部資本來繼續成長，這對於那些想要穩定的人才來說非常有吸引力。所以我們不斷壯大團隊。由於我們的利潤率比我們預期的要高一些，這讓我能夠繼續投資，這就是為什麼我們本季的利潤率沒有達到 25%。我們投資實驗室，投資建立團隊，因此品牌 3 和品牌 4。

The next question comes from Youssef Squali with Truist.

下一個問題來自 Youssef Squali 和 Truist。

Congrats on a solid quarter. So a couple of questions. Maybe starting with the 10 products, Oran, that you talked about for next year. How meaningful are kind of these products? Obviously, they're not brands. They're extensions of the 2 existing brands. Can you just share some color there as to how potentially meaningful they could be just for us to kind of get a sense of ultimately how impactful they could be to the revenue?

恭喜季度業績穩健。有幾個問題。奧蘭，也許可以從您談到明年的 10 種產品開始。這些產品有多大意義？顯然，它們不是品牌。它們是兩個現有品牌的延伸。您能否分享一些關於它們可能具有多大的潛在意義，以便我們了解它們最終對收入的影響有多大？

And then Lindsay, with such a high repeat rate, your market efficiency must be going through the roof. So can you maybe talk a little bit about that and whether that's like a step-up in your thinking about longer-term margins? Because if that repeat rate stays high, then obviously, your margins are going to be higher and your marketing efficiency is going to be that much higher. So just -- or is it just too early for us to get to that -- to conclude that at this point?

然後Lindsay，重複率這麼高，你的市場效率一定會爆棚。那麼您能否談談這一點，以及這是否是您對長期利潤的思考的一個進步？因為如果重複率保持在較高水平，那麼顯然，您的利潤將會更高，您的行銷效率也會更高。那麼，現在就得出這樣的結論──或者對我們來說現在還為時過早嗎？

Sure. I would start with the first question. I will start with the first one. The 10 product, we can beat. Like, the way that we operate, we never count on one thing. We can beat that. We always run with multiple levers to deliver our growth that we want to see next year. We don't need those 10 products to beat our plan. It's an addition, but I want to say -- like in SpoiledChild, I could have done this just -- the plan just with IL MAKIAGE, but they pushed more SpoiledChild because they want to see diversity and I want to see more like revenue coming from different sources. So I will do the same with the new product coming from ODDITY LABS just for the sake of building this engine, but I don't need it to grow or I don't need it for -- to justify my plan for next year.

當然。我將從第一個問題開始。我將從第一個開始。這10個產品，我們可以擊敗。就像我們的運作方式一樣，我們從不依賴一件事。我們可以打敗它。我們始終利用多種槓桿來實現我們希望明年看到的成長。我們不需要這 10 種產品來完成我們的計畫。這是一個補充，但我想說- 就像在SpoiledChild 中一樣，我本來可以這樣做- 與IL MAKIAGE 的計劃，但他們推動了更多SpoiledChild 因為他們希望看到多樣性，我希望看到更多的收入來自不同的來源。因此，我將對 ODDITY LABS 的新產品做同樣的事情，只是為了建造這個引擎，但我不需要它成長，或者我不需要它來證明我明年的計劃是合理的。

The second question, I will hand it to Lindsay. I would just say that regarding long-term margin, like, in my school, you don't need more than 20% EBITDA margin, and I want to continue to invest in the business. We could have done, like, more than 25% this quarter, and I intentionally decided to hire more people in Brand 3 and Brand 4 to be -- to make sure that we are better positioning ODDITY LABS and to make sure that, again, also on the tech side, that we continue to have the best people and to develop more products and to invest in our future. But I will hand it to Lindsay.

第二個問題，我將交給Lindsay。我只想說，關於長期利潤率，例如在我的學校，你不需要超過 20% 的 EBITDA 利潤率，我想繼續投資這項業務。我們本可以在本季度完成超過 25% 的工作，我有意決定在品牌 3 和品牌 4 中僱用更多人員，以確保我們更好地定位 ODDITY LABS，並再次確保，同樣在技術方面，我們繼續擁有最優秀的人才，開發更多產品並投資我們的未來。但我會把它交給林賽。

Yes. Thanks. So as we think about our repeat rates, as Oran mentioned, it was a key driver of the upside relative to our expectations in the quarter. We're thrilled to see the very strong repeat rates at both brands. IL MAKIAGE and SpoiledChild, for each of those brands, repeat revenue will be more than half of our revenue for this year, which is remarkable when you consider how young each of those brands is, IL MAKIAGE only having launched 5 years ago in the U.S. and SpoiledChild, which is less than 2 years old and growing as much as it is, and as Oran mentioned, around $100 million in net revenue this year and profitable. To be able to deliver that kind of repeat is something we believe is unprecedented across not just beauty, but any vertical in D2C.

是的。謝謝。因此，正如奧蘭所提到的，當我們考慮我們的重複率時，相對於我們本季的預期而言，這是上漲的關鍵驅動因素。我們很高興看到這兩個品牌的重複率非常高。 IL MAKIAGE 和 SpoiledChild 對於這些品牌來說，重複收入將占我們今年收入的一半以上，當你考慮到這些品牌是多麼年輕時，這是非常了不起的，IL MAKIAGE 僅在 5 年前在美國推出。SpoiledChild成立不到2 年，但仍在不斷成長，正如Oran 所提到的，今年的淨收入約為1 億美元，並且實現盈利。我們相信，能夠提供這種重複服務不僅在美容領域，而且在 D2C 的任何垂直領域都是前所未有的。

We love the repeat for a number of reasons. First of all, it reflects the strong customer satisfaction, the fact that our customers love the product, they come back and we're truly filling a need for them that's not being filled outside. Number two, of course, repeat is very profitable for us. Because we don't have to -- as you sort of pointed to before, we don't need to deploy any material OpEx or marketing spend in order to generate it relative to our first purchases.

我們喜歡重複的原因有很多。首先，它反映了強烈的客戶滿意度，事實上我們的客戶喜歡我們的產品，他們回來了，我們真正滿足了他們在外部無法滿足的需求。第二，當然，重複對我們來說是非常有利可圖的。因為我們不需要——正如您之前指出的那樣，我們不需要部署任何實質的營運支出或行銷支出來產生與我們的首次購買相關的費用。

The fact that our repeat rates are so high reflect those things, but they also reflect the fact that we have significantly underinvested in our potential for new customers this year as we purposely pace the business and try to slow it down. So the fact that you've got a brand that's less than 2 years old with more than 50% repeat and nicely profitable in SpoiledChild means you could have grown a lot faster if you wanted to, as Oran said.

我們的重複率如此之高的事實反映了這些事情，但它們也反映了這樣一個事實：我們今年對新客戶潛力的投資嚴重不足，因為我們故意調整業務節奏並試圖放慢速度。因此，事實上，你在 SpoiledChild 中擁有一個不到 2 年歷史、重複率超過 50%、盈利豐厚的品牌，這意味著如果你願意，你可以成長得更快，正如奧蘭所說。

But based on the size of the opportunity ahead of us, we are operating in a massive $600 billion global TAM in beauty and wellness. It's dominated by offline incumbents who we believe have significantly underinvested in technology. We think the category moves to 50% online before you know it. And we are, we believe, way ahead of others in our ability to capture this. Our focus is very much on reinvesting that profitability in order to deliver against those goals.

但根據我們面臨的機會規模，我們在美容和健康領域的全球 TAM 規模高達 6,000 億美元。它由線下現有企業主導，我們認為他們對科技的投資嚴重不足。我們認為，在您不知不覺中，該類別的線上佔比已達到 50%。我們相信，我們在捕捉這一點的能力方面遠遠領先於其他人。我們的重點是對獲利能力進行再投資，以實現這些目標。

Our underlying business wants to be much more profitable than we're letting it, but we're disciplined about talking to that 20% EBITDA margin, which, by the way, is still incredibly profitable relative to anything in our peer set. So we think that's a strong return. It allows us to generate a lot of cash to invest in the future, but doesn't change our overall thinking in terms of the algorithm -- profitability or growth algorithm.

我們的基礎業務希望獲得比我們允許的更多的利潤，但我們在談論 20% 的 EBITDA 利潤時很自律，順便說一句，相對於我們的同行，這仍然是令人難以置信的利潤。所以我們認為這是一個強勁的回報。它使我們能夠產生大量現金來投資未來，但不會改變我們在演算法方面的整體思維——獲利能力或成長演算法。

Okay. No, that's understood and impressive. Maybe just one more before I let you go. Lindsay, can you just remind us please of the seasonality in the business? This is not similar to other kind of D2C retail. Just so that we kind of understand how kind of the linearity throughout the year happens.

好的。不，這是可以理解的並且令人印象深刻。在我放你走之前也許還需要再做一次。 Lindsay，您能提醒我們一下業務的季節性嗎？這與其他類型的 D2C 零售不同。只是為了讓我們了解全年的線性如何發生。

Yes. So as you allude to, Youssef, our first and second quarters of the year are much larger than the second half of the year. And that is unusual for lots of consumer companies, beauty companies, D2C companies where typically, holiday and the fourth quarter is the biggest time of year.

是的。正如你所提到的，優素福，我們今年第一季和第二季的規模比下半年大得多。這對許多消費品公司、美容公司、D2C 公司來說是不尋常的，在這些公司中，假期和第四季通常是一年中最忙碌的時間。

I think seasonality is a misnomer. It's really more about cadence and how we choose to pulse our business. Obviously, if you look industry-wide in those categories, holiday is naturally very, very large. There's nothing that's naturally very, very large in our industry about the first or second quarter. So this is really about when we go full power and take advantage of our opportunity to really dominate the market and candidly, to, with very high visibility, get the full year done.

我認為季節性是一個用詞不當。這實際上更多的是節奏以及我們選擇如何推動我們的業務。顯然，如果你從整個行業的這些類別來看，假期自然是非常非常大的。在我們的行業中，第一季或第二季自然沒有什麼特別大的事情。因此，這實際上是關於我們何時全力以赴並利用我們的機會真正主導市場並坦率地以非常高的知名度完成全年工作。

And I know that's unusual relative to what you typically see for other businesses that are going kind of as hard as they can all year long to sort of match the pace of spending of the consumer. For us, it's been really important for us to pace our growth. So we'll do more than 50% revenue growth this year. That's on top of approaching 50% last year and 100% the year before.

我知道，與您通常看到的其他企業相比，這是不尋常的，這些企業全年都在竭盡全力以適應消費者的支出節奏。對我們來說，加快成長速度非常重要。所以今年我們的營收成長將超過 50%。去年接近 50%，前年接近 100%。

We've been growing at a very, very rapid pace, but we want to make sure that the way that we're growing allows us to deliver, over the long term, compounding, durable, sustainable and super high-quality growth for many, many years to come. That's been our decision to restrain growth in the back half when we were able to overdeliver on our budget so early in the year.

我們一直在以非常非常快的速度增長，但我們希望確保我們的增長方式能夠讓我們在長期內為許多人提供複合、持久、可持續和超高質量的增長。 ，未來很多年。當我們在今年年初就能夠超額交付預算時，我們就決定限制下半年的成長。

I think another thing that's important to point out is we don't participate in the holiday promotional fray. You won't see us discounting. You won't see us fighting in a low-quality way like that. We are full-priced businesses and full-priced brand, which is also why...

我認為另一件需要指出的重要事情是我們不參與假日促銷活動。你不會看到我們打折。你不會看到我們以這樣低品質的方式戰鬥。我們是全價企業、全價品牌，這也是為什麼...

While the majority of the industry is 50% off. So that's why it doesn't make sense for me, like, to compete in Q4.

而大多數行業的折扣都是 50%。所以這就是為什麼我參加第四季的比賽沒有意義。

Yes. Correct. So again, this is really more about our decision on the timing of when we power the business versus any natural seasonality.

是的。正確的。再說一次，這實際上更多的是我們對業務供電時間與任何自然季節性的決定。

The next question comes from Andrew Boone with JMP Securities.

下一個問題來自 JMP 證券公司的安德魯‧布恩 (Andrew Boone)。

Can you help us understand how top of funnel is trending? How has conversion trended last quarter? And is there any update on the 40 million users that you guys have?

您能幫助我們了解漏斗頂部的趨勢嗎？上個季度的轉換趨勢如何？你們擁有的 4000 萬用戶有什麼更新嗎？

Yes. I would just say that when I slow down, people tell me that it's because of the market -- because it's very -- because of the softness in marketing. But I can tell you that just in IL MAKIAGE, the user acquisition in Q3 was the lowest that we had in the past 14 quarters since Q1 2020. And despite the fact that new user acquisition efficiency in IL MAKIAGE was unbelievable strong growth, was 70% higher than Q3 of last year, and still, I spent 40% less in Q3 of last year. Like, we don't see any softness in the upper funnel. We see very strong demand, and we decide when to take it or not.

是的。我只想說，當我放慢腳步時，人們告訴我這是因為市場——因為行銷的疲軟。但我可以告訴你，僅在IL MAKIAGE，第三季度的用戶獲取量是自2020 年第一季以來過去14 個季度中最低的。儘管IL MAKIAGE 的新用戶獲取效率實現了令人難以置信的強勁成長，但仍為70比去年第三季高 %，儘管如此，我去年第三季的支出還是減少了 40%。就像，我們在上漏斗中沒有看到任何柔軟之處。我們看到非常強勁的需求，然後我們決定何時接受或不接受。

That makes sense. And then as we think about -- really, as a follow-on to Youssef's question, we're 2 months away now from January. Can you guys just talk about any features or new geographies that you guys may be launching as we think about 1Q '24 that gives you the confidence to be able to really pull that growth forward in the first half of next year?

這就說得通了。然後，當我們思考時——實際上，作為 Youssef 問題的後續，我們距離一月還有兩個月的時間。你們能談談你們可能會在 24 年第一季推出的任何功能或新的地區嗎？這讓你們有信心在明年上半年真正推動成長？

Yes. I'll start by saying that we are in a very strong position entering 2024, and the plan is to execute well every quarter. We are not providing now guidance for '24 and also Q1, and you already know our algorithm. But I will try to touch it more generally. Thanks to the huge TAM of our industry, we have so many ways to grow. And my job as a CEO is to make sure we are spending time and resources going after the right targets and balancing between opportunity size and chances we can get it done.

是的。首先我要說的是，進入 2024 年我們處於非常有利的地位，並且計劃每個季度都會很好地執行。我們現在不提供 '24 以及第一季的指導，並且您已經了解我們的演算法。但我會嘗試更廣泛地接觸它。感謝我們產業龐大的 TAM，我們有很多成長的方式。作為首席執行官，我的工作是確保我們投入時間和資源來追求正確的目標，並在機會大小和完成目標的機會之間取得平衡。

And it's true to all we do, new products, new brands, new categories, new tech products, new innovative molecules. We are always working on all 5 but with massive pipelines. And this strategy allow me to grow the business consistently, $110 million in 2020, $220 million in 2021, $325 million in '22 and approaching $500 million this year with more than $100 million of EBITDA.

我們所做的一切都是如此，新產品、新品牌、新類別、新科技產品、新創新分子。我們一直致力於所有 5 個方面的工作，但有大量的管道。這項策略使我能夠持續發展業務，2020 年成長 1.1 億美元，2021 年成長 2.2 億美元，22 年成長 3.25 億美元，今年接近 5 億美元，EBITDA 超過 1 億美元。

But when we try to understand, like, how we break it down. First is our existing brands, IL MAKIAGE and SpoiledChild, which are still like small in the market share and not even close to hitting the limits with the categories we are already in. This brand's pipeline comprise of new products and new categories for both brands as well as new geographies, as you mentioned. The teams are already in market testing new product launches. And based on those early rates alone, we have a very good feeling about 2024.

但當我們試圖理解，例如，我們如何分解它。首先是我們現有的品牌 IL MAKIAGE 和 SpoiledChild，它們的市佔率仍然很小，甚至還沒有達到我們現有類別的極限。該品牌的管道包括兩個品牌的新產品和新類別：正如您所提到的，還有新的地理區域。這些團隊已經在市場上測試新產品的發布。僅根據這些早期利率，我們對 2024 年就有非常好的感覺。

IL MAKIAGE, we have a number of exciting products in skin to expand our strong foundation there. And in addition, IL MAKIAGE leadership is ready with new market to launch in where our tests have come back very strong in terms of unit economics and customer satisfaction. And we have slow played these market expansions to ensure our users are happy in our current market, but we have those new markets ready to go, and it's multiple markets.

IL MAKIAGE，我們擁有許多令人興奮的皮膚產品，以擴大我們在那裡的堅實基礎。此外，IL MAKIAGE 領導層已準備好推出新市場，我們的測試在單位經濟效益和客戶滿意度方面表現非常強勁。我們緩慢地進行這些市場擴張，以確保我們的用戶對當前市場感到滿意，但我們已經準備好這些新市場，而且是多個市場。

And SpoiledChild, we have a pipeline of new products in both hair and skin to drive those 2 categories and to continue the hypergrowth of the brand. And so I'm not concerned at all that meaningful growth will come both brands.

和 SpoiledChild 一樣，我們在頭髮和皮膚方面都有一系列新產品，以推動這兩個類別並繼續品牌的快速成長。因此，我並不擔心這兩個品牌會出現有意義的成長。

The next question comes from Lorraine Hutchinson with Bank of America.

下一個問題來自美國銀行的洛林‧哈欽森 (Lorraine Hutchinson)。

This is [Melanie] on for Lorraine. I just wanted to touch on something you actually just said in your response about entering new markets. So do you have any update on your international expansion strategy for both brands? If so, what are some of those new markets that you look at? And is that embedded into any of your plans going forward?

這是洛林的[梅蘭妮]。我只是想談談您剛才在回應中提到的有關進入新市場的內容。那麼您對這兩個品牌的國際擴張策略有什麼更新嗎？如果是這樣，您關注的新市場有哪些？這是否已納入您未來的計劃中？

Yes. Thanks. New markets outside the U.S. are a huge opportunity for us today and over the long term. Around 1/4 of IL MAKIAGE is outside the U.S. SpoiledChild has not endeavored outside the U.S. yet. And as you know, from our competitors, call it, 2/3, maybe 70% of their business is outside the U.S. So we know this is a significant opportunity for us.

是的。謝謝。美國以外的新市場對我們今天和長遠來說都是一個巨大的機會。約 1/4 的 IL MAKIAGE 位於美國境外。SpoiledChild 尚未在美國境外開展業務。如你所知，我們的競爭對手，2/3，也許 70% 的業務都在美國境外。所以我們知道這對我們來說是一個重要的機會。

As part of our -- what I mentioned before in terms of pacing our growth, we have been -- really slow played this opportunity in terms of actually unleashing it. That being said, we've set out -- set up significant infrastructure and capabilities in order to unleash it when we're ready, and that includes conducting many, many tests in different markets, laying the groundwork and getting the wheels in motion, getting a read from the customer.

作為我們之前提到的成長步伐的一部分，我們在實際釋放這個機會方面非常緩慢。話雖這麼說，我們已經著手建立重要的基礎設施和能力，以便在我們準備好時釋放它，這包括在不同的市場進行很多很多的測試，奠定基礎並開始運轉，從客戶那裡獲取信息。

What we see is basically all the markets that we're testing, you're seeing very, very good customer satisfaction, cohort data, the foundational things that give us confidence that the unit economics will work and that we can scale across a number of different markets that we're not in already.

我們所看到的基本上是我們正在測試的所有市場，您會看到非常非常好的客戶滿意度、隊列數據以及使我們相信單位經濟效益將發揮作用以及我們可以在多個領域進行擴展的基礎知識。我們尚未進入的不同市場。

For SpoiledChild, international is really not on the table in the near term. The teams have asked and want to expand more aggressively overseas, but we've made sure that we're still focusing on the U.S., but we do see significant opportunity when we're ready to start building that overseas as well. And it's easy for us, based on the infrastructure we've already built for IL MAKIAGE, to leverage that. It's part of as we think about the build to $1 billion for IL MAKIAGE and for SpoiledChild, international plays an important role.

對 SpoiledChild 來說，短期內確實不會考慮國際化。這些團隊已經要求並希望在海外更積極地擴張，但我們已經確保我們仍然專注於美國，但當我們準備好開始在海外建立時，我們確實看到了重大機會。基於我們已經為 IL MAKIAGE 建造的基礎設施，我們很容易利用它。當我們考慮為 IL MAKIAGE 和 SpoiledChild 打造 10 億美元目標時，國際化發揮著重要作用。

The next question comes from Lauren Lieberman with Barclays.

下一個問題來自巴克萊銀行的勞倫·利伯曼。

Covered a lot of ground, but 2 things I wanted to follow up on. First was on the repeat rates. I was just curious to the degree which you have visibility -- we have visibility into everything. But to the degree you can comment on, these repeat rates being existing consumers replenishing products they've already bought in the past and are coming back at a higher rate than you had forecast. Or is it a basket size thing, right, that they are now buying more things from Spoiled or IL MAKIAGE, but were existing consumers of other products within the portfolio. So that's kind of number one.

涵蓋了很多內容，但有兩件事我想跟進。首先是重複率。我只是好奇你們的可見性有多大——我們對一切都有可見性。但就你可以評論的程度而言，這些重複率是現有消費者補充他們過去已經購買過的產品，並且回來的速度比你預測的要高。或者這是一個籃子大小的事情，對吧，他們現在從 Spoiled 或 IL MAKIAGE 購買更多的東西，但他們是該產品組合中其他產品的現有消費者。所以這是第一。

And then number two was on the 10 new product launches with tech from ODDITY LABS. I didn't know how that compares to a normal year of new product activity. Is 10 products a lot, a little? Just some sort of benchmark for thinking about what 10 means in the context of a typical year?

其次是採用 ODDITY LABS 技術推出的 10 款新產品。我不知道這與正常年份的新產品活動相比如何。 10種產品是多還是少？只是某種衡量 10 在典型年份中意味著什麼的基準嗎？

Sure. I'll start by talking about replenishment. It's both. Both AOV and both new products and also both replenishment. But like, the less visibility that we have is mainly around new products or new brands or new categories that we launch, and we don't have enough history to predict the repeat rate. And that's why we thought that we will be in x and we are coming back way higher. But you could see it across the board in IL MAKIAGE and SpoiledChild. Both -- all cohorts are growing, and the percentage of revenue coming from -- although we grew massively in the past 2 years, the majority of the revenue is coming from repeat. So it just show the strength.

當然。我首先要談談補給。兩者都是。既是AOV，又是新品，也是補貨。但是，我們的知名度較低，主要是圍繞我們推出的新產品、新品牌或新類別，而且我們沒有足夠的歷史記錄來預測重複率。這就是為什麼我們認為我們會進入x並且我們會以更高的水平回歸。但你可以在《IL MAKIAGE》和《SpoiledChild》中全面看到這一點。兩者——所有群體都在增長，收入的百分比——儘管我們在過去兩年大幅增長，但大部分收入來自重複。所以它只是顯示實力。

As to the second question, 10 products, I don't know comparing to who, comparing to us, it's not a lot because we launch way more, and we are not always successful. So we have way more than 10 products. We test them. And then if we see that everything works, both satisfaction and unit economics, then we continue to push. So we have more than 10 products, but we are very bullish about those products because they came from labs.

至於第二個問題，10個產品，我不知道與誰相比，與我們相比，這不是很多，因為我們推出的產品多得多，而且我們並不總是成功。所以我們有超過 10 種產品。我們測試它們。然後，如果我們看到一切正常，無論是滿意度還是單位經濟效益，那麼我們就會繼續推動。所以我們有超過10種產品，但我們非常看好這些產品，因為它們來自實驗室。

I'll just add on your first question. As you know, our net revenue repeat rates have continuously improved since -- the first time we spoke to you was, I think, December of 2021. We talked about net revenue repeat rates in the kind of low to mid-40s. Those net revenue repeat rates, as you'll see in our F-1 for IPO were, I want to say, around 80% on a 12-month basis. Today, are closer to 100%. We don't see a ceiling. That has been an ongoing story for us, the continuous improvement in repeat rate. And it is so many factors, but I have to call out our technology and how, for example, our machine models that support us in retargeting and how we market and making sure we're maximizing things like bundles and upsells and adding basket size, in getting people to engage again with the products. We just continue to get better and better and better as we get more data and optimize for our model. So that's been a really important driver for us.

我就補充一下你的第一個問題。如你所知，自從我們第一次與您交談以來，我們的淨收入重複率一直在不斷提高，我想是在 2021 年 12 月。我們談到了 40 多歲左右的淨收入重複率。我想說，正如您在我們的 IPO F-1 中看到的那樣，這些淨收入重複率在 12 個月的基礎上約為 80%。今天，已經接近 100%。我們看不到天花板。對我們來說，重複率的不斷提高一直是一個持續的故事。因素很多，但我必須指出我們的技術，以及如何支援我們重新定位的機器模型，以及我們如何進行行銷並確保我們最大化捆綁和追加銷售以及增加購物籃尺寸等內容，讓人們再次參與產品。隨著我們獲得更多數據並優化我們的模型，我們會不斷變得越來越好。所以這對我們來說是一個非常重要的驅動力。

And of course, now that we've layered SpoiledChild on top of IL MAKIAGE and we're building the platform, we're able to extract more from the same wallet. And that's part of the really strong financial profile of our business, which makes us more like what you would see in a software land-and-expand type of model where we know who the user is, we understand their profile, we understand so much about the products that we need, and then we're building those products specifically for them. That allows us to extract more from the same wallet and drive repeat. That's a lever for us that we only just started realizing really with SpoiledChild and to some degree with the launch of IL MAKIAGE skin, we're extracting more from that same user. But that will just continue to compound over time as we add more products and more brands to the platform.

當然，既然我們已經將 SpoiledChild 置於 IL MAKIAGE 之上並且我們正在建立平台，我們就能夠從同一個錢包中提取更多內容。這是我們業務真正強大的財務狀況的一部分，這使我們更像您在軟體土地和擴展類型的模型中看到的那樣，我們知道用戶是誰，我們了解他們的個人資料，我們了解很多了解我們需要的產品，然後我們專門為他們建造這些產品。這使我們能夠從同一個錢包中提取更多內容並推動重複。這對我們來說是一個槓桿，我們剛開始透過 SpoiledChild 真正意識到這一點，並且在某種程度上，隨著 IL MAKIAGE 皮膚的推出，我們正在從同一用戶那裡獲取更多。但隨著時間的推移，隨著我們為平台添加更多產品和更多品牌，這種情況將繼續加劇。

And then I guess, one clarification. The 10 products are purely ODDITY LABS. That's not the full scope of products that we will introduce for IL MAKIAGE and SpoiledChild in total next year.

然後我想，需要澄清一下。這10款產品純粹是ODDITY LABS的。這並不是我們明年將為 IL MAKIAGE 和 SpoiledChild 推出的全部產品。

The next question comes from Jason English with Goldman Sachs.

下一個問題來自高盛的 Jason English。

Interesting statistic you shared on the acquisition expense behind IL MAKIAGE being down 40% year-on-year. When we look at SG&A ex the stock comp, it was still up substantially this quarter, up like 36% versus up 38% last quarter. And it sounds like you're making a lot of capability and people investments. But maybe you can unpack that a little bit more for us. How much did -- I suppose, the aggregate acquisition expense change year-on-year in the quarter? And for the remaining growth, how much is going against people in ODDITY LABS versus other capability building?

您分享的有趣的統計數據顯示，IL MAKIAGE 背後的收購費用比去年同期下降了 40%。當我們查看除股票比較外的 SG&A 時，本季仍然大幅上漲，上漲了 36%，而上季上漲了 38%。聽起來您正在進行大量的能力和人員投資。但也許你可以為我們進一步解釋。我想，本季的總收購費用比去年同期變化了多少？對於剩餘的成長，與其他能力建設相比，ODDITY LABS 的人員有多少是不利的？

Yes. Thanks for the question, Jason. So you can see in our financial profile that we leveraged our adjusted EBITDA in a very significant way versus the prior year. Part of that, a smaller part of it was gross margin expansion, but the bigger piece of it was SG&A leverage. And a big part of that was our ability to leverage marketing spend and in particular, user acquisition as we throttled back on our new user acquisition and delivered the majority of our revenue from repeat customers.

是的。謝謝你的提問，傑森。因此，您可以在我們的財務狀況中看到，與前一年相比，我們以非常顯著的方式利用了調整後的 EBITDA。其中一部分，一小部分是毛利率擴張，但更大的一部分是SG&A槓桿。其中很大一部分是我們利用行銷支出的能力，特別是用戶獲取的能力，因為我們減少了新用戶的獲取，並從回頭客那裡獲得了大部分收入。

We are making other OpEx investments in support of building the business out for the long term, new brands, new product categories, et cetera. And Oran touched on that a little bit earlier in terms of the buckets that we're spending in.

我們正在進行其他營運支出投資，以支援長期業務建設、新品牌、新產品類別等。奧蘭早些時候就我們的支出領域談到了這一點。

I would just add one more thing that media as a percentage of revenue was lower in Q3 '23 compared to '22. So we didn't spend the money against marketing.

我想補充一點，與 22 年相比，23 年第三季媒體佔營收的百分比較低。所以我們沒有把錢花在行銷上。

That's helpful and impressive. Congrats by the way. It sounds like you're continuing to make great progress on Brand 3 and Brand 4. I think you talked last quarter about even having [kind of] brought the brand together and have some clarity on what the brand name is going to be. In light of the progress you're making, is there any chance that you'll be able to bring it to market in 2024? And if not, what is -- what are the gating factors that are extending the launch all the way out to 2025?

這很有幫助並且令人印象深刻。順便恭喜你。聽起來您在品牌 3 和品牌 4 上繼續取得巨大進展。我想您上個季度談到將品牌整合在一起，並對品牌名稱的名稱有一定的了解。鑑於您所取得的進展，您是否有可能在 2024 年將其推向市場？如果不是，那麼將發射一直推遲到 2025 年的限制因素是什麼？

Yes. So our plan continues to be for 2025. I don't expect that to change. We've committed to, as we say, call it, launching a new company every 18 months to 2 years, and we call it a new company because these are truly stand-alone businesses, stand-alone operating teams that we plug into our platform with shared technology, shared data, et cetera. So no change to that.

是的。所以我們的計劃仍然是 2025 年。我預計這一點不會改變。正如我們所說，我們致力於每 18 個月到 2 年推出一家新公司，我們稱之為新公司，因為這些是真正獨立的業務、獨立的營運團隊，我們將其融入我們的團隊中。具有共享技術、共享資料等的平台。所以沒有改變。

Okay. And last question for me. Oran, when I talk with investors, there's a lot of enthusiasm for the potential for your company. And obviously, it's validated by the results you posted last evening. Where there's lingering questions are on your ability to get the sequential acceleration that's implied in consensus from 4Q to 1Q, which, of course, is the cadence that Lindsay was talking about earlier. Remind us, as you plan to drive that stepped-up acquisition into next year, what are the tactical steps you take that give you -- that are going to catalyze that ramp into the first quarter?

好的。還有我的最後一個問題。奧蘭，當我與投資者交談時，他們對貴公司的潛力充滿熱情。顯然，您昨晚發布的結果驗證了這一點。揮之不去的問題是你能否獲得從第四季度到第一季一致暗示的連續加速，當然，這就是林賽之前談到的節奏。請提醒我們，當您計劃在明年推動加速收購時，您採取了哪些戰術步驟來促進第一季的成長？

So first of all, we are not discussing now Q1. I can just say that like every other year, we have very strong visibility in Q4 into Q1, and we are doing lots of preparations in that quarter to ensure that we hit our goals in Q1 and in Q2. We didn't have any problem to deliver in the past, I want to say, 3, 4 years, and we intend to continue to do so.

首先，我們現在不討論 Q1。我只能說，就像往年一樣，我們在第四季度到第一季的可見度非常高，我們在該季度做了很多準備工作，以確保我們實現第一季和第二季的目標。我們過去沒有任何問題要交付，我想說，三、四年，我們打算繼續這樣做。

The only reason that -- before being a public company, I had a private equity investor. They care about yearly budget, and we decided every year to go with full power in the first half of the year to ensure that we have time to build engine for the next year. So that's how we started.

唯一的原因是──在成為上市公司之前，我有一位私募股權投資者。他們關心每年的預算，我們決定每年上半年全力以赴，確保明年有時間製造引擎。我們就是這樣開始的。

But again, we are not spending money on new user acquisition unless we see very strong efficiency. So even in Q1 and in Q2 in previous years, we had like a few weeks that we cut back. And we run the business with full visibility, and we decide in real time, any second what we want to do with the budget. So it's our control. That's the best part of D2C.

但同樣，除非我們看到非常強大的效率，否則我們不會在新用戶獲取上花錢。因此，即使在前幾年的第一季和第二季度，我們也有幾週的時間被削減。我們以完全可見性的方式經營業務，並且隨時即時決定我們想要如何處理預算。所以這是我們的控制。這是 D2C 最好的部分。

This concludes our question-and-answer session. I would like to turn the conference back over to Oran Holtzman for any closing remarks. Over to you.

我們的問答環節到此結束。我想將會議轉回給奧蘭·霍爾茨曼（Oran Holtzman）發表閉幕詞。交給你了。

Thanks for joining us, and we will speak to you when we report the fourth quarter. Have a great day, guys. Bye-bye.

感謝您加入我們，我們將在報告第四季度時與您交談。祝你們有美好的一天。再見。

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝。會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。