Oddity Plunges 36% After Ad Glitch, Projects 30% Q1 Sales Decline
Oddity shares plunged 36% after an advertising malfunction caused customer acquisition costs to surge abnormally, squeezing margins. The company now projects a 30% drop in Q1 sales due to the inflated CAC and paused user acquisition activities.
1. Advertising Glitch and CAC Surge
In early February, an ad delivery error caused programmatic spend to target non-core audiences, driving customer acquisition costs up sharply and reducing marketing efficiency. The abnormal CAC surge strained operating budgets and halted new campaign launches until systems were corrected.
2. Revised Q1 Sales Outlook
As a result of the inflated acquisition costs and paused marketing efforts, Oddity lowered its Q1 revenue guidance by roughly 30% year-over-year, signaling a material slowdown in user growth and in-app purchase volume.
3. Stock Price Reaction
Following the guidance cut announcement, Oddity's shares fell 36% in a single session, reflecting investor concerns over the company’s digital marketing resilience and near-term growth prospects.