SmileDirectClub Investor Presentation Deck slide image

SmileDirectClub Investor Presentation Deck

Marketing & selling. Marketing and selling expenses came in at $79 million or 43% of net revenue in the quarter, compared to 72% of net revenue in Q4 of 2019. ā— Our efficient deployment of acquisition spend, continued advancements in aided awareness and referral rates, access to highly efficient lead sources, and our highly curated fulfillment network of SmileShops have positioned us well to continue to perform well against our long-term targets. On SmileShops, we had 114 permanent locations as of quarter end, and held 104 pop-up events over the course of the quarter, for a total of 218 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 fully leverage our SmileShop resources to fulfill demand that is coming through aided awareness, referrals, and marketing. Our long-term target of 40-45% margin remains intact. smile DIRECT CLUB Referrals as a % of Aligner Orders Quarter 73% $131 Marketing & selling expenses ($ in millions) Q3 2019 72% $141 Q4 2019 Q4 2019 Q1 Q2 Q3 Q4 2020 2020 2020 2020 20% 20% 21% 23% 22% 72% $142 Q1 2020 Actual $ 32% $35 Q2 2020 40% $67 Q3 2020 % of Net Revenue 43% $79 Q4 2020 11
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