SmileDirectClub Results Presentation Deck slide image

SmileDirectClub Results Presentation Deck

● ● Q2 2020 results. Revenue for the quarter was $107 million, which represents a decrease of 45% over the second quarter of 2019. ● ● This decrease was driven primarily by a 53% YOY decrease in aligner shipments which came in at 57,136. Gross margin for the quarter was 54%. In Q2 we saw our cancellations increase from 5.3% to 6.5% of gross aligner revenue. We do not believe this increase will be permanent; however, we want to be conservative given the uncertainty of our COVID operating environment. smile DIRECT CLUB Decline is described in more detail on the following page. Q2 Adjusted EBITDA(¹) was negative $20mm for the quarter. This is a sequential improvement of 70%. Q2 2020 $ 107.1mm 58.3mm $ Net Revenue Gross Profit Gross Margin % (20.3)mm Adjusted EBITDA(1) EPS, Diluted (2) $ (0.25) (1) Adjusted EBITDA is a non-GAAP financial measure. See appendix for definition of Adjusted EBITDA. YOY 54% -45% -64% -2,785bps NM ΝΑ (2) Includes one-time charges of approximately $(43) million related to lease abandonment, impairment of long-lived assets, other related charges, and loss on extinguishment of debt. Excluding such charges, second quarter net loss was $(52) million and second quarter diluted EPS was $(0.13). 13
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