SmileDirectClub Investor Presentation Deck slide image

SmileDirectClub Investor Presentation Deck

Cost 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 -$ Continued advancement in automation and streamlining of our manufacturing process. We are making good progress on automation with our 2nd Gen machines now live and producing approximately 60% of our aligners. We expect over 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, 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 in quarters to come. 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. 19
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