e.l.f. Beauty, Inc. (NYSE:ELF) Q3 2023 Earnings Call Transcript

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Tarang Amin: So Sidney, absolutely, we’re definitely seeing early signs of resonance with Gen alpha. There is a lot of our marketing activities that frankly, appeal to Gen alpha just as much as they do to Gen Z, particularly if you look at the different platforms that we are on and the types of things that we’re doing. So more to come on that, but you’ll continue to see us be at the forefront on some of these new consumer demographics and there €“ and introducing them to the best of beauty and making it accessible.

Unidentified Analyst: Got it. And then just one last one, just to dig in a little bit more on that marketing ROI. It’s great to hear that, that keeps expanding, the more you invest. So I’m curious, are there any new channels or platforms that you’re seeing especially strong traction on?

Tarang Amin: That’s the great thing about our marketing ROIs. We see strength across vehicles and channels. So certainly, we tend to look at our paid media, our owned and then also our earned media. We’re seeing strength across all three of them. And then by vehicle, we see very strong ROIs on our digital advertising. We see strong ROIs and our influencer work on our PR is really off the charts. It’s really almost every one of those buckets. And I’d say, the other thing about us is, we’re not afraid to test and learn our new platforms. So we were one of the first beauty brands on TikTok. In the early days, it was hard to get attribution on TikTok. We now can see almost immediately when something goes viral on TikTok, the impact it has on our business and our ability to be able to attract that.

So you’ll continue to see that good balance between things that we have that are definitely proven and other things that we are testing for the future and we’ve got a great cadence going there.

Unidentified Analyst: That’s great. Thank you so much.

Operator: Our next question comes from Rupesh Parikh with Oppenheimer. Please go ahead.

Rupesh Parikh: Good afternoon. Thanks for taking my question and also congrats on a great quarter. So I guess I wanted to ask just on the trends. So anything you can share in terms of the cadence of trends during the quarter and then maybe as well provide some color into January?

Mandy Fields: Yes, so really strong trends throughout the quarter. I would say that we had a really strong Cyber Monday with our e-commerce business and we saw trends really strengthen as we got closer to the holiday period, it was great to see. Right now, what we’re seeing in track channels a continuation acceleration of that year-over-year growth. And I think from about end of December through mid-February, you will see those indices continue to be really strong, given that in the base, there is the omicron that we’re cycling in the base and so that suppressed some of our numbers last year and have really accelerated what you’re seeing in tracked channels right now. And now that doesn’t diminish our bullishness on our performance. I’ll take you back to our guidance of 46% on the top end for the quarter really demonstrates how strongly we believe our business can perform right now.

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