Why SmileDirectClub’s Q4 Was Nothing to Smile About

When SmileDirectClub Inc. (NASDAQ: SDC) released its fourth-quarter financial results after the markets closed on Tuesday, the firm posted a net loss of $0.25 per share and $196.7 million in revenue. The consensus estimates had called for a net loss of $0.11 per share and $199.9 million in revenue. In the same period of last year, the teledentistry company said it had $128.5 million in revenue.

During the latest quarter, unique aligner shipments increased to 115,042, up from 76,372 in the fourth quarter of 2018.

The average aligner gross sales price decreased to $1,771 for both the fourth quarter and full-year 2019, compared to $1,797 and $1,764 in the same periods last year, respectively.

Looking ahead to the fiscal 2020 full year, the company expects to see revenues in the range of $1.00 billion to $1.10 billion and an adjusted EBITDA loss of $50 million to $75 million. Consensus estimates call for a net loss of $0.23 per share and $1.13 billion in revenue for the year.

Kyle Wailes, SmileDirectClub’s chief financial officer, commented:

As we have stated, 2020 is a year of significant, albeit controlled growth for SmileDirectClub. Our number one priority is to improve our club member experience. We will also increase our focus on the international infrastructure we have already built to best position our business for long-term global growth. Profitability will also be a big focus for us in 2020, and we understand the levers we have to pull to achieve profitability.

SmileDirectClub stock traded down over 26% at $8.32 a share on Wednesday, in a post-IPO range of $7.56 to $21.10. The consensus price target is $18.18.

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