SmileDirectClub Investor Presentation Deck slide image

SmileDirectClub Investor Presentation Deck

Marketing & selling. Marketing and selling expenses came in at $97 million or 48.7% of net revenue in the quarter. ● ● Our efficient deployment of acquisition spend, continued advancements in aided awareness and referral rates, and access to highly efficient lead sources, have positioned us well to continue to perform well against our long-term targets. With 75% of the total market opportunity overseas, we also continue to invest heavily in brand building internationally. This is driving our near-term sales and marketing as a percent of revenue higher than our long-term targets as we scale our brand in these markets ● This is compared to 72% of net revenue in Q1 of 2020 On SmileShops, we had 126 permanent locations as of quarter end, and held 156 pop-up events over the course of the quarter, for a total of 282 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 fulfill demand that is coming through aided awareness, referrals, and marketing. Long-term target of 40-45% margin remains intact. smile DIRECT CLUB Quarter Referrals as a % of Aligner Orders 72% $141 Marketing & selling expenses ($ in millions) Q4 2019 72% Q1 Q2 Q3 Q4 2020 2020 2020 2020 $142 20% 21% 23% 22% 21% Q1 2020 32% $35 Q2 2020 Actual $ 40% Q1 2021 $67 Q3 2020 43% $79 Q4 2020 % of Net Revenue 49% $97 Q1 2021 11
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