Smile Direct shares as losses decrease and revenue increases

Smile Direct Club, (SDC) – Get Class A report from SmileDirectClub Inc the Nashville-based provider of teeth-straightening devices through teledentistry and through professional dentist and orthodontist offices, reduced its net loss in the third quarter with a 6.5% decline in revenue.

The results, reflecting factors such as cost control, were stronger than Wall Street analysts had expected.

The third-quarter loss narrowed to 11 cents per share from 89 cents in the prior quarter. Revenues increased from $180.2 million to $168.5 million.

A survey of analysts by FactSet produced a consensus estimate of a GAAP net loss of 17 cents per share on revenue of $145.7 million.

Smile Direct Club shares at last check were up 3.9% at $10.35. They ended the regular session on Monday up 5.8% at $9.96.

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The stock has nearly tripled its 52-week low of $3.64, set in early April, and is 36% behind its 52-week high of $15.54, set in mid-February.

Managing Director David Katzman said in a statement that the results provide continued validation of Smile Direct Club’s business model and reflect “our continued focus on controlled growth with profitability.”

The company shipped more than 93,000 aligners in the third quarter. The average gross selling price of Smile Direct aligners edged up 0.3% to $1,794 from $1,788.

During the quarter, the company cut marketing and sales spending nearly in half, to $66.7 million. And general and administrative expenses fell 81% to $74.1 million.

Smile Direct Club’s statement did not specify an outlook, other than to say that “favorable industry momentum” has led Smile Direct Club to expect “higher customer acquisition costs.” effective”.

Previous Smile Direct club reports on Thursday. Here's a closer look.
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