Page 1

smile DIRECT SmileDirectClub Reports Second Quarter 2021 Financial Results August 9 , 2021 NASHVILLE , Tenn . , Aug. 09 , 2021 ( GLOBE NEWSWIRE ) -- SmileDirectClub , Inc. ( Nasdaq : SDC ) , the next generation oral care company with the first medtech platform for teeth straightening , today announced its financial results for the second quarter ended June 30 , 2021 . Second Quarter 2021 Financial Highlights CLU • Total revenue of $ 174 million , an improvement of 62.7 % over the prior year period . • Net loss of $ ( 55 ) million , an improvement of 41.6 % over the prior year period . ● Adjusted EBITDA of $ ( 22 ) million , a decrease of $ 2 million over the prior year period . • Diluted EPS of $ ( 0.14 ) , a 44.0 % improvement over the prior year period . Key Operating Metrics • Unique aligner shipments of 90,006 . • Average aligner gross sales price ( " ASP " ) of $ 1,885 for the second quarter of 2021 , compared to $ 1,817 for the second quarter of 2020 . " We have a singular focus on maximizing our global opportunity and extending our leading telehealth platform for orthodontia through a persistent emphasis on customer experience , improving consumer perception around credibility , driving positive sentiment with our Challenger campaign , and investing in innovation , " said David Katzman , Chief Executive Officer and Chairman of SmileDirectClub . SmileDirectClub Chief Financial Officer Kyle Wailes added , " The short - term headwinds from residual impacts of the April cyber - attack , the lasting economic effects from COVID on our target demographic and the slower scaling of some of our new international markets due to COVID prevented us from achieving our anticipated second quarter results . Our planned overinvestment in marketing to relaunch in Germany and Spain later this year , combined with continued execution on expanding customer acquisition channels , in particular the professional channel , should help us drive controlled and profitable growth consistent with our long - term targets . " Business Outlook While there continue to be short - term headwinds associated with macroeconomic factors and impacts associated with the cyber - attack , SmileDirectClub's long - term revenue growth targets as well as the opportunity to leverage its vertically integrated platform and unique , difficult to - replicate assets remain unchanged . The focus continues to be to provide the best Club Member experience , and to drive controlled and profitable growth . Smile DirectClub remains the low - cost provider , with brand presence , no pricing pressure , and no real competitor that provides an end - to - end vertically integrated platform for the consumer . As consumers are considering straightening their teeth , they do three things as part of their research on which provider they should choose : one , they search online , two , they ask their dentist , and three , they ask a friend or family member . The Company continues to make significant investments across these three areas to organically become the leader in teeth straightening . Online , it is making significant investments in brand credibility , driven by the Challenger campaign , which drives home its compelling value proposition , and evidenced by its consumer sentiment and brand credibility , is working . With dentists , the partner network is off to a good start , and the Company will be making significant investments in the channel in the coming quarters . And lastly , on friends and family , our customer experience continues to improve , and we expect that to pay off in higher referrals in the coming quarters . In addition to these investments in influencing consumer decision making , the Company will continue to make strategic investments in international growth and in penetrating new demographics to drive controlled growth , while also executing against its profitability goals . Lastly , favorable industry dynamics continue to increase with broader acceptance of telehealth and specifically tele - dentistry , minimal penetration against the total addressable market , a number of recent regulatory wins that should help remove barriers to access to care , and clear aligners gaining share in the overall industry . Full Year 2021 Guidance For the year ended December 31 , 2021 , the Company expects total revenue to be in the range of $ 750 million to $ 800 million . While macroeconomic trends persisted into July 2021 from a demand perspective , the Company notes that its business can be highly variable on a month - to - month or quarter - to - quarter basis . For example , March 2021 was one of the best months Smile DirectClub has had for gross orders , which the Company believes was correlated with the timing of stimulus payments , along with other factors . The assumptions underlying the $ 750 million revenue estimate include :