Shares of Elf Beauty ( ELF 3.60% ) were soaring more than 20% this week, according to data from S&P Global Market Intelligence . The upstart beauty and cosmetics brand reported stellar growth in the first calendar quarter of 2024, leading investors to bid up the stock.
It has become one of the largest beauty brands in the world, with its stock up over 1,000% in the last five years alone. Here's why Elf Beauty shares were rising this week. High growth, growing market share For the three months ending in March 2024, Elf Beauty reported 71% revenue growth to $321 million.
This was its fifth straight quarter of revenue growth above 70%. The brand is gaining tons of market share in the beauty category around the globe with its disruptive low-price but high-quality offerings. International revenue outside of the United States is growing by over 100% year over year.
What is driving this growth? Innovative marketing. Through various channels like TikTok and even a Super Bowl commercial, Elf Beauty has become one of the best brand marketers in the world. It has upped its marketing as a % of revenue to 25% compared to under 10% a few years ago.
This has greatly grown its brand awareness and driven this revenue-growth acceleration. Elf Beauty is profitable, generating $127 million in net income over the last 12 months but still reinvesting a ton for growth. It should be praised for putting up phenomenal revenue growth while still posting positive bottom-line profits.
Few companies can a.
