SmileDirectClub Investor Presentation Deck
Gross margin.
Gross margin for the quarter was 70%, which
represents a 288 bps decrease compared to Q2
2022.
On COGS, we continue to leverage our
manufacturing automation enhancements with
our 2nd Gen machines producing over 90% of
our aligners in the quarter.
Normalizing for a one-time inventory
impairment of $1.1 million in the quarter
yields a 71% gross margin for Q3 2022
Q3 2022 gross margin driven by reduced
revenue.
smile
DIRECT
CLUB
Gross margin %(¹)
H
70%
70%
54%
Q1 2020 Q2 2020Q3 2020Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022Q3 2022
$137
74%
76%
74%
Gross Profit
$151
$136
$119
Lilli
$58
71%
$128
$98
4%
65%
$82
72%
$109
73%
$92
70%
$75
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 202 2
(1)
In Q4 2021, one-time costs related to the implementation of our internal treatment planning software, SmileOS and lower retail margin, primarily 26
due to higher expansion costs and excess inventory costs had an approximate 400 bps impact on margin.View entire presentation