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 -$ We are making good progress on automation with our 2nd Gen machines now producing approximately 70% of our aligners. We expect approximately 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, and access to highly efficient lead sources have positioned us to continue to perform well against our long-term targets in the quarters to come We expect to continue to over-invest in international markets via brand awareness to drive long term growth 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. 20
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