Good afternoon, and welcome to Oddity Second Quarter 2023 Earnings Conference Call. At this time, I'd like to turn the conference over to Maria Lycouris, Investor Relations for Oddity. Thank you. You may begin.

Thank you, operator. I'm joined by Oran Holtzman, Oddity Co-Founder and CEO; and Lindsay Drucker Mann, Oddity's global CFO. As a reminder, due to the timing of this earnings call, which is within the 25-day quiet period following the company's IPO, we will not be taking questions on today's call. Management's remarks on this call that do not concern past events are forward-looking statements. These may 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 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. Finally, during this call, we will discuss certain non-GAAP financial measures, which we believe are useful supplemental measures for understanding our business. Definitions and reconciliations of these non-GAAP financial measures to their most comparable GAAP measures are included in our earnings press release we issued today. I will now hand the call over to Oran.

Thank you, everyone, for joining us today. We are very excited to show our second quarter results and our first earnings call as a public company. And it's only fitting that we kick off our life as a public company with an outstanding quarter of financial performance that position us to raise our 2023 outlook for revenue and profit above our plan. We generated $151 million of net revenue, a 55% increase from last year and $42 million of adjusted EBITDA in the second quarter, representing 27.6% of adjusted EBITDA margin. These results are above the estimates we issued in our IPO across every metric, including sales, adjusted EBITDA and net income. We are making very strong progress in our mission to transform the global beauty and wellness market with technology and entrepreneurial DNA, and we are here to build something huge. Our technology-powered platform is unlocking online for massive and super attractive TAM by leveraging data science, artificial intelligence, computer vision and now biotech to deliver superior products and experiences to our more than 40 million users. Our model has rapidly scaled to what we believe is the largest and most profitable online direct-to-consumer platform in the industry, with our existing powerhouse brands IL MAKIAGE and SpoiledChild today and brands 3 and 4 in development to launch in the future. In order to perform successfully online only, we're investing heavily in data science and technology early on and built our tech team to be the largest team in the company. Technology continues to be the primary investment priority for us today, although we believe we are already way ahead of our competitors. We achieved many important milestones during the second quarter that we believe set us up for a long runway of top and bottom line growth. First, we…

Thanks Oran. We are pleased with our very strong financial performance in the second quarter, which supports our improved outlook for the third quarter and full year and allows us to raise our fiscal 2023 outlook above plan. We're also pleased that similar to previous years, we were able to deliver the bulk of our full year objectives in the first half alone by aggressively fueling profitable growth in the first and second quarters and thereby enabling us to invest resources in future initiatives in the second half of the year. Our business continues to deliver the rare combination of scale, growth and profitability and the second quarter delivered on all fronts. Net revenue increased 55% for the quarter to $151.3 million. This result is 8% above the midpoint of the $135 million to $145 million preliminary estimate we communicated in connection with our IPO. Revenue growth in the period was in very high quality, driven by growth across brands, categories and markets. Our revenue continues to be driven largely by increased orders with nice incremental contribution year-over-year from SpoiledChild, which is rapidly scaled since its launch in the first quarter of last year. For the first half of the year, we increased net revenue by 69% to $317 million. Gross profit increased 60% to $106.8 million in the quarter and gross margin improved to 70.6% from 68.2% in the prior year. The 244 basis point improvement was driven by gross margin improvement across brands, offset by negative mix shift from higher contribution of SpoiledChild's sales. Year-to-date, we generated 70.8% gross margin, a 328 basis point improvement from the prior year. Reported net income was $30 million compared to $16.6 million in the prior year and net income margin was 19.8%. Adjusted EBITDA increased 76% to $41.8 million in the…

Thanks, Lindsay, and thanks, everyone, for joining us today. Our strong second quarter results demonstrate the power of our model and our growth engine leaves us well positioned to deliver strong financial performance in the future. Our business is firing in all cylinders, and I have never been more bullish about the future. We are here to change a huge industry, which is operating in the same model for a century. I'll now hand it back to the operator.

Thank you for your participation today. As a reminder, due to the timing of this earnings call, which is within the 25-day quiet period following the company's IPO, we will not be taking questions on today's call. And with that, this concludes today's teleconference. You may now disconnect your lines at this time.