SmileDirectClub Investor Presentation Deck
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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
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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.
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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
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70%
54%
Q2 2020 Q3 2020 Q4 2020 Q1 2021
73%
Q4 2019
70%
Gross margin %
Q1 2020
74%
76%
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