Both TikTok virality and dermatologists both helped boost Waldencast’s growth in the second quarter of 2024.
For its second-quarter earnings results for the three months ending on Jun. 30 reported today, the parent company of Milk Makeup announced 25.7 percent net revenue comparable growth, up from 21 percent in the first quarter. While Milk Makeup saw 20 percent year-over-year net revenue growth for the quarter thanks to its viral Cooling Water Jelly Tints, dermatological skincare brand Obagi Medical accelerated to 30.9 percent net revenue comparable growth. Total net revenue for the first half of the year reached $131.6 million with a 20.3 percent growth rate. Adjusted EBITDA for the first half of 2024 was $17.7 million, with a margin that increased to 13.4 percent, up from 12.7 percent in the same period last year.
Milk Makeup’s six-month-old Cooling Water Jelly Tint has sold out twice after going viral on TikTok. The brand’s growth was slightly lower than its first-quarter rate of 21.5 percent after the blush went out of stock.
“Out of stocks were a factor on our results in Q2,” said Michel Brousset, the founder and CEO of Waldencast. “We created quite a bit of product being ready to go for the launch. But it stripped all of our expectations.”
Obagi Medical’s comparable net revenue growth, meanwhile, was up from 20.6 percent last quarter thanks to increased focus on brand awareness among both dermatologists and customers, said Brousset. The brand’s Daily Hydro-Drops Rejuvenating Eye Gel Cream was cited as a growth driver, and also faced an out-of-stock period after it sold out in less than 72 hours.
Milk Makeup surpassed the $100 million threshold in net revenue for 2023, and reached $63.2 million in net revenue for the first half of 2024. Obagi Medical had $68.4 million during the same time period.
“The consumer, especially in beauty, is super strong and thriving in the US and most of the places where we operate,” said Brousset.
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