SmileDirectClub Investor Presentation Deck slide image

SmileDirectClub Investor Presentation Deck

General & 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
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