SmileDirectClub Investor Presentation Deck
Gross margin.
Gross margin for the quarter was 71.6%, which
represents a (91 bps) decrease from prior year
and a (129 bps) decrease compared to Q1 2023.
Lower gross margin rate was driven by
the deleveraging of fixed expenses on
lower aligner volumes.
We continue to leverage our manufacturing
automation enhancements with our 2nd Gen
machines producing over 95% of our aligners
in the quarter.
The Q2 2023 decline in gross margin dollars
compared to prior year was driven by lower
aligner shipments as a result of the
challenging macroeconomic environment.
Sequential first quarter to second
quarter gross profit dollar decline
follows historical seasonal trends
smile
DIRECT CLUB
I
76%
74%
$152
71%
$128
$98
4%
MILI
72% 73%
70%
61%
Q1 2021 Q2 2021 Q3 2021 Q4 2021
Gross margin %(¹)
65%
Gross Profit
$82
Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023
$109
$92
$75
73% 72%
$53
$87
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
$73
Q2 2023
(1)
In Q4 2021, one-time costs related to the implementation of our internal treatment planning software, SmileOS and lower retail margin, primarily 25
due to higher expansion costs and excess inventory costs had an approximate 400 bps impact on margin.View entire presentation