#1smile DIRECT CLUB Q1 2021 Investor Presentation#2Forward-Looking Statements This presentation contains forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Forward-looking statements generally relate to future events and include, without limitation, projections, forecasts and estimates about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans, and objectives. Some of these statements may include words such as "expects," "anticipates," "believes," "estimates," "targets," "plans," "potential," "intends," "projects," and "indicates." Although they reflect our current, good faith expectations, these forward-looking statements are not a guarantee of future performance, and involve a number of risks, uncertainties, estimates, and assumptions, which are difficult to predict. Some of the factors that may cause actual outcomes and results to differ materially from those expressed in, or implied by, the forward-looking statements include, but are not necessarily limited to: the ongoing assessment of the cyber incident, material legal, financial and reputational risks resulting from such incident and the related operational disruptions, the duration and magnitude of the COVID-19 pandemic and related containment measures; our ability to manage our growth; the execution of our business strategies, implementation of new initiatives, and improved efficiency; our sales and marketing efforts; our manufacturing capacity, performance, and cost; our ability to obtain future regulatory approvals; our financial estimates and needs for additional financing; consumer acceptance of and competition for our clear aligners; our relationships with retail partners and insurance carriers; our R&D, commercialization, and other activities and expenditures; the methodologies, models, assumptions, and estimates we use to prepare our financial statements, make business decisions, and manage risks; laws and regulations governing remote healthcare and the practice of dentistry; our relationships with vendors; the security of our operating systems and infrastructure; our risk management framework; our cash and capital needs; our intellectual property position; our exposure to claims and legal proceedings; and other factors described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2020 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. New risks and uncertainties arise over time, and it is not possible for us to predict all such factors or how they may affect us. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We are under no duty to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation. Market and Industry Data This presentation also contains estimates and other statistical data obtained from independent parties and by us relating to market size and growth and other data about our industry and ultimate consumers. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates and data. In addition, projections, assumptions, and estimates of our future performance and the future performance of the geographic and other markets in which we operate are necessarily subject to a high degree of uncertainty and risk. This presentation is a supplement to, and should be read in conjunction with, SmileDirectClub's earnings release for the quarter amde March 31, 2021. DIRECT Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures, including adjusted EBITDA ("Adjusted EBITDA"). These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We provide a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the appendix to this presentation and in our Current Report on Form 8-K announcing our quarterly earnings results, which can be found on the SEC's website at www.sec.gov and our website at investors.smiledirectclub.com. CLUB 2#3smile DIRECT CLUB 40 WHATWE STAND FOR Our mission is to democratize access to a smile each and every person loves by making it affordable and convenient for everyone. 3#4Why Our Club Members Choose SDC. Orthodontists have traditionally purchased invisible aligners from a wholesaler or manufacturer, marked up the cost by 3x, and then sold them to consumers for $5,000-$8,000. Our proprietary telehealth platform offers consumers the ability to get the same clinically safe and effective treatment, but without the 3x markup. Credibility Over 1mm members treated, with a brand at scale that our members love Our doctors have straightened over 1 million ● ● ● @ smiles, which makes us a leading player in the industry Brand at scale that our members love All doctors have 5+ years of aligner experience 100% of our aligners are made in our FDA registered and ISO certified 3D printing facility in Tennessee Treatment plan is tailored using our proprietary telehealth platform smile DIRECT CLUB 0004 Certainty Customers enjoy a new smile in as little as 4 months ● ● All smiles come with our lifetime smile guarantee Efficacy of teleorthodontic treatment with clear aligners validated by clinical research (see Slide 25 for study details) Customers can start seeing results in as little as 60 days, and they can be certain in their outcome because we have treated over 1 million members Better oral hygiene - customers can brush and floss without brackets in the way We deliver all aligners and retainers directly to the customer, upfront Comfort Our laser-cut aligners look and feel better than ever ● ● ● ComfortSense is our unique soft, medium, firm plastic approach, which provides for more gradual movements and a more comfortable fit Smooth edges and a custom-shaped aligner means less overlap and irritation of the gumline Matte finish gives aligners a natural look No buttons, attachments, or IPR Two ways to wear aligners: 22 hours a day, or 10 continuous hours only at night Convenience No in-office visits necessary and three ways to get started • Customers use our telehealth platform for face- to-face remote check-ins and can start treatment from home All aligners arrive up front - customers never wait on their next set Our experienced dental team is available 24/7 via text, video chat, email or phone Customers use our app to track and manage their entire treatment ● Our aligners cost as little as $3/ day, with no 3x markup ● ● -$ ● Cost Two ways for customers to pay: one single payment or monthly over 24 months 100% approval on financing, no credit check, no paperwork We are in network with most major health insurers Customers can use HSA, FSA, and CareCredit funds All aligner touch-ups are included Whitening is included 4#5We provide a global telehealth platform with unique value propositions. Access Convenience Affordability Members smile DIRECT CLUB I (1) As of May 2021 6 5 4 3 2 1 smile DIRECT CLUB Mission-driven brand with positive member experience. Omni-channel presence with SmileShops, impression kits, and GP footprint. Exclusive licensed doctor network across 13 countries¹, powered by our Telehealth platform SmileCheck. SmilePay captive financing increases accessibility and reduces purchasing friction. Vertical integration allows us to optimize every step of the member journey and continuously improve the process. Visionary, founder-led company with a history of disrupting incumbents. Control of our destiny Compelling unit economics Accelerating growth Business LO 5#6Club Member Satisfaction smile DIRECT CLUB 1 en for a time supply confidence. 41 smile 6#7SDC has built a brand at scale that our members love. We have made considerable progress on brand perception, and our member satisfaction scores consistently tracked higher than DTC peers Google Reviews & Member Sentiment Total # of Reviews 5.0 4.8 4.6 4.4 4.2 120,000 100,000 80,000 60,000 40,000 20,000 4.8 SDC 96% 96,907 SDC 2,779 DTC Competitors Total Reviews 96% 4.7 Customer Rating (2) DTC Competitors 87% 14,860 DSO -% Positive 4.4 DSO 98% 96% 94% 92% 90% 88% 86% 84% 82% smile Source: Internal company surveys, public information. Data as of Apr. 2021. DIRECT CLUB % Positive Sentiment "Has a network of dentists and orthodontists to provide the best possible care to its customers" 62% 63% 42% Perception on brand credibility Q4 19 SDC Q1 21 Q1 21 SDC Invisalign NPS 43(³) - one of the highest in spec. healthcare industry. BBB rating of A+ Note: DTC rating is an average of DTC competitors. DSO rating is average of two larger DSOS in the US. (1) Reflects most recent prior brand survey response.. (2) Google rating. (3) All time average rating. (4) Company website. "Is a brand / product I trust" 62% 66% 36% Q2 20 SDC Q1 21 SDC Q1 21 Invisalign Approx. 21% of members come from referrals. II Average rating 4.5/5.0 I with over 200K member reviews (4). 7#8Q1 Financial Results. smile DIRECT CLUB vight on ANETTES Sma 8#9● ● ● Q1 2021 results. Revenue for the quarter was $199.5 million, which represents a sequential increase of 8% over Q4 2020 Above the high end of our long-term target range Also represents a record quarter for revenue in the history of SDC Gross margin for the quarter was 76%, up 225 basis points from Q4 2020, and a 640-basis point improvement versus Q1 2020 Net loss for the quarter was ($95.6mm), which includes a $47.6mm loss on extinguishment of debt Q1 Adjusted EBITDA(¹) was $4.9mm for the quarter, down $2m from Q4 due to higher selling and marketing expenses, mostly associated with international ramp US/Canada Adjusted EBTIDA was $11.6mm, implying a 7% Adjusted EBITDA margin Rest of World Adjusted EBITDA was ($6.7mm) ● Our long-term financial targets remain intact: smile DIRECT CLUB Average revenue growth of 20-30% per year for the next 5 years. Adjusted EBITDA(1) margins of 25-30% as we scale during that time period. This is driven by an 85% gross margin, 40- 45% sales and marketing margin, and a 15% G&A margin. Net Revenue Gross Profit Gross Margin % Adjusted EBITDA(1) EPS, Diluted $197 9% $197 0% Q4 2019 Q1 2020 Q1 2021 Revenue ($ in millions) $107 -46% Q2 2020 199.5mm 151.5mm Revenue $ (1) Adjusted EBITDA is a non-GAAP financial measure. See appendix for definition of Adjusted EBITDA. 76% 4.9mm (0.25) 57% $169 Q3 2020 QOQ $185 10% Q4 2020 -QoQ Growth % 8% 11% 225bps (31%) NM $200 8% Q1 2021 9#10● Gross margin. Gross margin for the quarter was 76%, a 225bps increase sequentially and a 640-basis point improvement versus Q1 2020. Gross profit was up 11% sequentially. This was supported by the increase in aligners produced using our second-generation automated manufacturing ● ● On COGS, we are making good progress on manufacturing automation with our 2nd Gen machines We expect gross margin to continue to strengthen as volumes grow now producing approximately 70% of our aligners. We plan to increase that percentage significantly over the course of the year, and we expect approximately 90% by the end of Q2. ● As we have often stated, we believe streamlining our cost profile through operational efficiencies, will not only improve our margin profile, but more importantly, will provide a consistently superior customer experience that meets our expectations and upholds our brand promise. Our long-term gross margin target of 85% of revenue remains intact. smile DIRECT CLUB II.||| 70% 54% Q2 2020 Q3 2020 Q4 2020 Q1 2021 73% Q4 2019 70% Gross margin % Q1 2020 74% 76% 10#11Marketing & selling. Marketing and selling expenses came in at $97 million or 48.7% of net revenue in the quarter. ● ● Our efficient deployment of acquisition spend, continued advancements in aided awareness and referral rates, and access to highly efficient lead sources, have positioned us well to continue to perform well against our long-term targets. With 75% of the total market opportunity overseas, we also continue to invest heavily in brand building internationally. This is driving our near-term sales and marketing as a percent of revenue higher than our long-term targets as we scale our brand in these markets ● This is compared to 72% of net revenue in Q1 of 2020 On SmileShops, we had 126 permanent locations as of quarter end, and held 156 pop-up events over the course of the quarter, for a total of 282 location sites. These pop-up events are a critical component to supporting our demand, function in the same capacity as a permanent SmileShop, and enable us to fulfill demand that is coming through aided awareness, referrals, and marketing. Long-term target of 40-45% margin remains intact. smile DIRECT CLUB Quarter Referrals as a % of Aligner Orders 72% $141 Marketing & selling expenses ($ in millions) Q4 2019 72% Q1 Q2 Q3 Q4 2020 2020 2020 2020 $142 20% 21% 23% 22% 21% Q1 2020 32% $35 Q2 2020 Actual $ 40% Q1 2021 $67 Q3 2020 43% $79 Q4 2020 % of Net Revenue 49% $97 Q1 2021 11#12General & administrative. ● ● General and administrative expenses were $81 million in Q1, compared to $78 million in Q4 2020. ● ● ● ● G&A expenses were up $3 million sequentially due to higher one-time stock- based compensation The stability throughout the quarter was a direct result of the cost control initiatives we discussed on prior earnings calls. We plan to stay vigilant with cost control throughout the remainder of the year and beyond, as we focus on continuing to leverage this line item Adjusting for this, G&A expenses were down $6 million on a quarter over quarter basis. Excluding D&A, stock-based compensation, and one-time items, G&A expenses remain down $11 million, or 15%, versus Q1 of 2020. smile DIRECT CLUB Our long-term target of 15% of revenue remains intact. $2 $16 G&A expenses (¹) ($ in millions) $73 38% Q1 2020 $11 54% $58 ($0) Q2 2020 G&A $0.1 $11 $63 (1) Percentages represent G&A as a percent of revenue, excluding stock-based compensation and IPO and other one-time costs.. 38% $5 $7 $66 39% Q3 2020 Q4 2020 Stock-based Compensation One-time Costs G&A as a % of Net Revenue $15 $66 33% Q1 2021 One-time items: Q1/Q2'20 - One time severance (COVID). Q3 - International one-time severance (COVID). Q4 - $4.8mm legal settlement accrual. Remainder is international severance (COVID). 12#13Other expenses, Adjusted EBITDA & net income. Net income (Loss) ($ in millions) ● ● ● Interest Expense: ● Loss on extinguishment of debt: ● smile DIRECT CLUB Interest expense was $17.6 million in the first quarter, primarily associated with borrowings on indebtedness from our prior credit facility. This expense will decline significantly now that we have refinanced with our new convert. Store Closure Costs ● We had a $47.6mm loss on extinguishment of debt relating to the repayment of the prior credit facility. This expense includes the make whole amount paid in connection with the termination of the agreement, the remaining unamortized costs and unaccreted value of warrants. ● Other: We had expense of $1.1mm associated with optimizing our store footprint. Expense of $0.9mm primarily reflects unrealized foreign exchange loss Q1 Adjusted EBITDA(¹) was $4.9mm for the quarter US/Canada Adjusted EBTIDA was $11.6mm, implying a 7% margin Rest of World Adjusted EBITDA was ($6.7mm) ון ($107.4) (1) Adjusted EBITDA is a non-GAAP financial measure. See appendix for definition of Adjusted EBITDA. Q1 2020 ($66.9) Q1 2020 ($94.7) Q2 2020 ($20.3) ($43.5) Q2 2020 Q3 2020 Adj. EBITDA(¹) ($ in millions) $3.0 ($32.9) Q3 2020 Q4 2020 $7.2 Q4 2020 ($95.6) Q1 2021 $4.9 Q1 2021 13#14Balance sheet highlights. We ended Q1 with $434.5 million in cash and cash equivalents. ● ● ● Cash from operations for the first quarter was ($28.3) million. Cash spent on investing for the first quarter was $23.0 million, mainly associated with capitalized labor, capitalized software, and building our manufacturing automation. Free cash flow(1) was slightly lower versus Q4 2020, associated with timing of accounts payable payments, and growth in accounts receivable (1) Free Cash Flow is a non-GAAP financial measure. See appendix for definition of Free Cash Flow. smile DIRECT CLUB ($ in millions) Cash Debt Accounts Receivable, Net Cash Flow from Operations Cash Flow from Investing Free Cash Flow Q1 2020 $224.4 $221.4 Q2 2020 $389.0 $420.3 Q3 2020 Q4 2020 $373.0 $316.7 $415.7 $408.6 $345.3 $311.8 $302.0 $293.3 Q1 2021 $434.5 $745.7 $300.0 $(70.4) $(15.5) $17.2 ($14.9) ($28.3) ($28.1) ($19.7) ($20.9) ($28.4) ($23.0) ($98.5) ($35.2) ($3.7) ($43.3) ($51.3) On SmilePay, which drives our accounts receivable, in Q1 2021, SmilePay as a percentage of total aligners purchased was 61%, just above Q4 2020 (60%) and below FY 2020 (64%). Overall, SmilePay has continued to perform well, and our delinquency rates in Q1 were consistent with prior quarters. Because we keep a credit card on file, and have a low monthly payment, we expect SmilePay to continue to perform well. 14#15Convertible Debt Offering. Deal launched at a size of $350 million and was later upsized to $650 million due to strong institutional demand. In addition, the bookrunners exercised their full greenshoe option to purchase $97.5 million convertible notes, bringing the full offering size to $747.5 million. Notes were priced with a 0% coupon, and a 40% conversion premium. ● ● ● Notes mature February 2026 In conjunction, SDC entered into a capped call that will fully offset any potential equity dilution from conversion of the notes. This convertible debt financing strengthens our balance sheet, with minimal equity dilution, and fortifies us against a protracted COVID environment, while also enabling to us to comfortably execute our growth strategy over the coming years, while also investing in R&D, innovation, and other business development opportunities. smile DIRECT CLUB Convertible Debt Key Terms Base Deal Size Green Shoe (exercised) Coupon Conversion Premium/Price Settlement Date Maturity Capped Call Key Terms Capped Call Lower Strike Capped Call Upper Strike Net Premium Effective all-in Rate/Terms $650 million $97.5 million 0.00% 40.0% / $18.06 February 9, 2021 February 1, 2026 40.0% / $18.06 100.0% / $25.80 9.3% of proceeds ~2.0% Cost of Capital up 100% 15#16Q2 2021 & Long-Term Outlook smile DIRECT CLUB 1 en for a time supply confidence. 41 smile 16#17Cybersecurity Incident As disclosed in an 8K filed on May 3, 2021, the Company experienced a systems outage caused by a cybersecurity incident on April 14, 2021 ● ● We immediately mobilized our internal engineering security team and promptly implemented a series of containment and remediation measures to address the attack including temporarily isolating and shutting down affected systems and related manufacturing operations We have also engaged a leading forensic information technology firm to assist with our investigation into the incident. At this time, the Company is not aware of any data loss from, or other loss of assets as a result of, the Incident, including any exposure of customer or team member information. As a result of these efforts, we were able to successfully block the attack, no ransom was paid, and SDC's systems and operations are back online and performing normally. smile DIRECT CLUB 17#18Q2 guidance & long-term outlook. Our Long-Term plan remains intact. We are managing the business to drive towards our long-term financial targets, which include 20-30% revenue growth per year ● Without the cyber-attack, we expected revenue to be up 5-7% sequentially, and we also expected Adjusted EBITDA to come in slightly ahead of Q1 levels, as we continue to invest marketing dollars to build brand equity outside of the US and Canada. In light of the cyber-attack, and the associated business disruption, we are adjusting our revenue expectations for Q2 based on our best estimates of the possible impact. While it is still early to have complete certainty as to how the impacted leads will ultimately convert, as of today we expect for Q2: ● smile DIRECT CLUB ● Our long-term objectives have not changed: Revenue to be approximately $195 - $200mm Adjusted EBITDA(1) to be approximately breakeven, as we recover from the cyber-attack, and continue to lean into marketing spend in international markets As a reminder, marketing dollars we spend today, have a long tail. ● We remain laser focused on providing the best club member experience, and our mantra remains to drive controlled and profitable growth. We remain 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. We will continue to make strategic investments in the professional channel, international growth, and in penetrating new demographics to drive controlled growth, all wrapped around continued spend on innovation and R&D. We continue to see favorable industry dynamics with broader acceptance of telehealth and specifically tele-dentistry, minimal penetration against our total addressable market, and clear aligners gaining share in the overall industry. All of these position us well for long-term success. (1) Adjusted EBITDA is a non-GAAP financial measure. See appendix for definition of Adjusted EBITDA. 18#19Growth Initiatives. Continued momentum across our three key revenue growth drivers. New Acquisition Channels Teens smile DIRECT CLUB A International (1) As of April 2021 As we think about expanding our acquisition channels, we are focusing on accommodating new consumer on-ramps to our clear aligner therapy through the professional channel, corporate partnerships, and retail. On the professional channel: Our partnership network is now extended across more than 1,500 practices in the United States, and we have a deep sales pipeline both domestically and internationally. On corporate partnerships, we continue to see progress across all of our programs including those with Allianz, Anthem BCBS, Empire BCBS, MetLife, United, Aetna, and others. On the retail side: our oral care products are available at Walmart, Amazon, CVS, Walgreens, Sam's Club, and SDC.com. ● ● We have also recently added to our roster of retail partnerships with the rollout of our product portfolio in Walmart and Shoppers Drug Mart locations across Canada. SDC's award-winning oral care products are now available at more than 400 Walmart locations, and over 1,000 Shoppers Drug Mart locations in the region. These products continue to perform well and serve as a highly efficient lead source and brand building opportunity. Our oral care product footprint now stands at over 12,500 retail stores nationwide This was a major driver of outperformance in our Other Revenue category for the quarter. Teens are 75% of case starts annually, but approximately 10% of SDC members In 2020, we launched SmileDirectClub Teen. Designed just for teens, this offering includes a more affordable and accessible alternative to metal braces or other aligner options, giving teens and parents the convenience of our telehealth platform, with 24/7 access to dental professionals, while still priced 60% less than traditional orthodontic products. Massive global opportunity of ~500mm people. We have launched into 13 countries (¹) since January of 2019; including our recent launch into Mexico and plan to launch into additional locations in Europe, Latin America and Asia Pacific throughout 2021 and beyond. Our International business was 16.7% of our revenue in Q1 2021; but represents approximately 75% of the market opportunity. 19#20Cost Levers. Leveraging automation, sales and marketing efficiency, and cost discipline to drive towards profitability. Automation Leverage omnichannel approach Leveraging G&A Spend smile DIRECT CLUB -$ We are making good progress on automation with our 2nd Gen machines now producing approximately 70% of our aligners. We expect approximately 90% by the end of Q2. Streamlining our cost profile through operational efficiencies, will not only improve our margin profile, but more importantly, will provide a consistently superior customer experience that meets our expectations and upholds our brand promise. Our efficient deployment of acquisition spend, continued advancements in aided awareness and referral rates, and access to highly efficient lead sources have positioned us to continue to perform well against our long-term targets in the quarters to come We expect to continue to over-invest in international markets via brand awareness to drive long term growth Continued cost discipline across the business. Aligning spend with business priorities and long-term growth targets. Long Term% of Revenue Gross Margin: 85% Sales & Marketing: 40-45% G&A: 15% Long-term Adjusted EBITDA(1) margin of 25%-30% (1) Adjusted EBITDA is a non-GAAP financial measure. See appendix for definition of Adjusted EBITDA. 20#21Appendix. smile DIRECT CLUB 21#22Net Income to adjusted EBITDA. (In thousands) Net loss Depreciation and amortization Total interest expense Income tax expense Other store closure and restructuring costs Loss on extinguishment of debt Equity-based compensation Other non-operating general and administrative costs(1) Adjusted EBITDA smile DIRECT CLUB Three Months Ended March 31, 2021 Note: Adjusted EBITDA is a non-GAAP financial measure. (1) Includes a one-time legal expense settlement of $5.0mm, offset by currency gains recognized in the quarter of $3.1mm. $(95,645) 16,460 17,566 1,707 1,128 47,631 15,159 912 $4,918 2020 $(107,400) 11,442 4,022 1,974 16,396 6,584 $(66,982) 22#23Cash Flow From Operations to Free Cash Flow. (In thousands) Cash Flow From Operations Cash Flow From Investing Free Cash Flow smile DIRECT CLUB Note: Free Cash Flow is a non-GAAP financial measure. Three Months Ended March 31, 2021 $(28,338) (22,981) $(51,319) 2020 $(70,395) (28,123) $(98,518) 23#24Gross to net revenue bridge. ($ in millions; except for Aligners Shipped and ASP) Total Unique Aligner Orders Shipped (1) Average Aligner Gross Sales Price ("ASP") Aligner Gross Revenue Implicit Price Concession (2) Reserves and other adjustments(3) Aligner Revenue(4) Financing Revenue (5) Other Revenue and adjustments(6) Total Net Revenue Q1 2020 122,751 $1,770 Q2 2020 57,136 $1,817 $ 217.3 $ 103.8 $ (21.3) (25.1) 170.9 $ 12.7 13.0 16.5 196.7 $ 107.1 $ $ smile DIRECT CLUB $ Q3 2020 Q4 2020 93,301 101,794 $1,794 $1,820 167.4 $ 185.3 (13.4) (14.2) (12.8) (14.7) (16.1) (17.5) 139.3 $ 155.0 $167.5 12.0 12.0 17.2 17.6 168.5 $ 184.6 $199.5 Q1 2021 106,345 $1,860 $197.8 (9.3) (16.6) 77.9 $ 12.7 10.7 21.3 Note: All information in this file is publicly available from our SEC filings. (1) Each unique aligner order shipped represents a single contracted member. (2) Estimated based on historical write-off percentages and expected net collections. Excludes implicit price concessions associated with financing 'revenue starting in 2020 $2.035mm for Q120, $1.997 for Q220, $1.927 for Q320, $1.914 for Q420, and $1.748 for Q121. See footnote 5 below. (3) Includes impression kit revenue, refunds and sales tax. (4) As defined in quarterly and annual filings (Aligner Gross Revenue less IPC and Reserves and other adjustments). (5) Represents interest income earned on our SmilePay financing program, net of IPC starting in 2019, as noted in footnote 2 above. (6) Includes net revenue related to retainers, whitening, and other ancillary products. 24#25Journal of Dental Research and Reports: Clinical study confirms effectiveness of clear aligner teleorthodontic care "The aim of the study was threefold: to objectively assess the clinical effectiveness of teleorthodontic treatment with clear aligners on maxillary and mandibular incisor alignment utilizing the SmileDirectClub® teleorthodontic platform. ● to objectively measure differences in clinical effectiveness between treatment supervised by general practitioners versus orthodontic specialists to subjectively consider patient satisfaction after the teleorthodontic treatment with clear aligners and the relationship between satisfaction and whom the treatment was provided by." Conclusion: "Study data suggest that teleorthodontic treatment with clear aligners is clinically effective in the correction of maxillary and mandibular incisor alignment problems (crowding or spacing) less than 6 mm. There appears to be no difference in clinical effectiveness between teleorthodontic treatment with clear aligners supervised by general practitioners versus orthodontic specialists. Patient satisfaction after teleorthodontic treatment with clear aligners seems to be unrelated to who provided the treatment, general practitioner or orthodontic specialist." - Dr. Marc B. Ackerman, Journal of Dental Research and Reports, "Teleorthodontic treatment with clear aligners: An analysis of outcome in treatment supervised by general practitioners versus orthodontic specialists," Volume 2:1-4, May 16, 2019 smile DIRECT CLUB 25#26smile DIRECT CLUB