SmileDirectClub Q2 Earnings Rundown: Top And Bottom Line Miss, Revised Outlook, Investing In Innovation

SmileDirectClub Inc SDC reported its second-quarter financial results after the bell Monday. Here’s a rundown of the dental alignment company’s results.

What Happened: SmileDirectClub said second-quarter revenue decreased 17% year-over-year to $126 million. The company’s top-line results came in below average analyst estimates of $141.86 million, according to data from Benzinga Pro.

SmileDirectClub reported a quarterly net loss of 17 cents per share, which missed average analyst estimates for a loss of 14 cents per share.

Unique Aligner shipments totaled 62,705 in the second quarter, representing a decrease of 17.8% quarter-over-quarter. Average aligner prices reached $1,917 in the quarter, compared to $1,890 in the first quarter. 

“Despite top line challenges, our cost control actions taken in the first quarter reduced our expense base and minimized the impact to our bottom line, while delivering an improving cash flow result during the second quarter,” said David Katzman, chairman and CEO of SmileDirectClub.

What’s Next: SmileDirectClub revised its full-year 2022 outlook on the back of weaker consumer discretionary spending.

The company expects full-year revenue to be between $450 million and $500 million versus the estimate of $615.96 million. SmileDirectClub said it expects to end the year with between $120 million and $160 million in cash.

The company said it plans to focus on innovation moving forward, including the rollout of its mobile scanning app for 3D treatment planning. 

“This new go-to-market strategy transforms SmileDirectClub from a marketing-led approach to growth to a technology-led company, with a pipeline of new innovations that will be introduced into the market in future quarters,” Katzman said.

SDC Price Action: SmileDirectClub has a 52-week high of $3.10 and a 52-week low of 97 cents.

The stock was down 7.75% in after hours trading Monday at $1.19. 

Photo: courtesy of SmileDirectClub.



Image and article originally from www.benzinga.com. Read the original article here.