Services

SmileDirectClub's Q2 Is Nothing to Smile About

When SmileDirectClub Inc. (NASDAQ: SDC) released its second-quarter financial results after the markets closed on Wednesday, the firm posted a net loss of $0.25 per share and $107 million in revenue. The consensus estimates had called for a net loss of $0.11 per share and $83 million in revenue.

During this quarter, unique aligner shipments decreased to 57,136, from the 122,751 in the first quarter of the year. The firm did not offer a year-over-year number in the release.

The average aligner gross sales price increased to $1,817 for the second quarter, compared to $1,761 in the same period from last year.

Perhaps one of the biggest highlights from the report was that the sales and marketing expense came in at $35 million for the second quarter, or 35% of revenue. It was 72% of revenue in the first quarter of the year.

On the books, cash and cash equivalents totaled $388.97 million at the end of the quarter, up from $318.46 million at the end of the previous fiscal year.

Management noted that the performance in the quarter reflects the strength of the firm’s teledentistry platform, along with the flexibility and agility of its business model; both in the context of its COVID-19 recovery efforts, and the traction towards long-term growth and margin targets.

The company did not issue guidance for the third quarter. However, consensus estimates call for a net loss of $0.13 per share and $136.84 million in revenue for the coming quarter.

SmileDirectClub stock traded down about 13% early Thursday to $8.22, in a post-IPO range of $3.64 to $21.10. The consensus price target is $9.36.