SDC - SmileDirectClub blames macroeconomic factors as Q3 earnings miss estimates

SmileDirectClub (NASDAQ:SDC) has lost ~20.7% in the post-market after the company lagged Street forecasts with its Q3 2021 financials. Contrasting the topline growth recorded in the previous two quarters, the revenue declined ~18% YoY to $138M while unique aligner shipments and average aligner gross sales price stood at ~96.6K and ~$1,900, respectively. “We are disappointed with our third quarter results driven by the macroeconomic headwinds that are influencing the spending of our core demographic,” CEO David Katzman noted. With a modest sequential improvement in gross profit margin, the net loss contracted by ~106% YoY to $89M, while cash dropped ~3% from 2020 year-end to ~$307.6M. For 2021, the company has lowered the projections for revenue and gross margin to $630M – $650M and ~70% from $750M – $800M and mid 70% estimated three months ago, respectively. Meanwhile, the consensus revenue estimates for SmileDirectClub (SDC) stands at $757.2M for 2021.

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SmileDirectClub blames macroeconomic factors as Q3 earnings miss estimates