SmileDirectClub Results Presentation Deck
SmilePay Performance.
In Q1 2020, 66% of our members elected to
purchase using SmilePay, which is down from
68% in Q1 2019.
This percentage has also held steady in
April and May, and we have not seen
material increases in SmilePay as a
percent of total purchases to date.
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In Q1, we took a conservative approach to
Implicit price concessions, and increased our
reserves by ~$12mm given the uncertainty of
our economic outlook.
Our delinquency rates through April were flat
to March, which was consistent with the prior
12 months.
Because we keep a credit card on file, and it is
a low monthly payment, we expect SmilePay
to continue to perform well.
We've seen only 1.7% of customers
requesting a payment deferral, far below the
4-5% deferral requests you see other lenders
facing today.
smile
DIRECT CLUB
Indexed Daily
Credit Card Authorization Performance
105.0%
104.0%
103.0%
102.0%
101.0%
100.0%
99.0%
98.0%
97.0%
96.0%
95.0%
94.0%
●
1/5/2020
100%
100%
1/12/2020
99%
100%
98%
1/19/2020
1/26/2020
2/2/2020
100%
2/9/2020
100% 100%
2/16/2020
2/23/2020
100%
101%
3/1/2020
3/8/2020
101%
3/15/2020
100%
101%
3/22/2020
3/29/2020
4/5/2020
102%
101%
104%
103%
4/12/2020
4/19/2020
4/26/2020
5/3/2020
003%
The index graph above shows performance
relative to the start of January on a daily
basis.
As outlined, our success rates on credit
card attempts, which is a proxy for monthly
payments, has seen no degradation since
COVID started.
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