Smile Direct Club’s Q3 earnings release, stocks down 20% as a reaction 

sdc earnings
SmileDirectClub’s retail location near Washington, D.C.’s Dupont Circle. (Hannah Norman/Kaiser Health News)

Smile Direct Club (SDC), the teledentistry company, released its Q3 earnings today after the market closed.  The company missed the estimates on revenues, though the net loss has subsided compared to the previous year.

  • Revenue: $138 million
  • EPS: $0.23
  • Net Loss: $89 million 
Earning Highlights 
  • Third quarter unique aligner shipments of 69,906.
  • Third quarter average aligner gross sales price (“ASP”) of $1,900 for the third quarter of 2021, compared to $1,794 for the third quarter of 2020.
  • Total revenue of $138 million, a decrease of 18.3% over the prior year period.
  • Net loss of $(89) million, a decrease of 105.6% over the prior year period.
  • Adjusted EBITDA of $(54) million, a decrease of $57 million over the prior year period.
  • Diluted EPS of $(0.23), a decrease of 109.1% over the prior year period.
CEOs Statement 

“We are disappointed with our third quarter results driven by the macroeconomic headwinds that are influencing the spending of our core demographic,” said David Katzman, Chief Executive Officer and Chairman of SmileDirectClub. “While we could not have anticipated the rapidly evolving nature of this impact on our consumer, we have responded quickly to focus our marketing on helping support them during this time, while we also move upstream with higher income demographics through the Challenger Campaign and investments in our Dental Partner Network. We remain incredibly optimistic and believe that we are well positioned to continue to capture the global opportunity in the rapidly expanding market for clear aligners.”

Analysts Estimates 

Analysts had estimated the earnings per share to be -$0.13, while the Revenue was estimated to be $181.9 million.  

Earnings History 

In the last quarter, the earnings did not break the estimates as the actual EPS was -$0.14 while the analysts had estimated it to remain $-0.09. The loss was bigger owing to the Pandemic and the April cyberattack. 

Earnings Forecast 

Smile Direct Club (SDC) is expected to earn -$0.12 per share in the fourth and final quarter of the year. The Revenue has been estimated to be $201.75 million. 

The company’s stock traded negatively in the market today, before the earnings call, and went down steeply after the earnings were released.

Related Posts