SmileDirectClub Investor Presentation Deck slide image

SmileDirectClub Investor Presentation Deck

Marketing & selling. Marketing and selling expenses were $64 million, or 74.1% of net revenue in the quarter compared to 78.6% of net revenue in Q4 2021. ā— Total spend was down $35mm as we continue to focus on marketing efficiency and rationalized store costs. Q4 higher spend as a % of revenue is due to the seasonal increase in preparation for higher volumes in Q1 associated with our "new year, new you" campaign. Regarding locations, we had 124 permanent SmileShop locations as of quarter end, compared to 117 locations at the end of Q3 2022 We also held 32 pop-up events over the course of the quarter, for a total of 156 location sites at the end of the quarter. Current Partner Network global locations are now 1,078 active or pending training which represents a net increase of 128 locations from Q3 2022 Increased Partner Network growth driven by new CarePlus rollout targeted for 1H 2023 Full year costs were lower year over year due to the focus on efficiency measures throughout the year. smile DIRECT CLUB Q1 2020 Q2 2020 72% $142 20% 21% 23% 22% 21% Referrals as a % of Aligner Orders Q4 2020 32% Q3 2020 $35 40% $67 Q1 2021 43% $323 $79 FY 2020 Q2 2021 21% Marketing & selling expenses ($ in millions) 55% Q3 2021 Actual $ 20% 20% 20% 70% Q4 2021 Q1 2022 79% 49% $97 $96 $96 $99 $97 $388 FY 2021 64% Q2 2022 21% 57% $71 Q3 2022 % of Net Revenue 21% Q1 2020 Q2 2020Q3 2020Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022Q3 2022 Q4 2022 Marketing & selling expenses ($ in millions) 55% FY 2022 $58 $64 $290 Q4 2022 20% 27 74%
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