SmileDirectClub Investor Presentation Deck
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Gross margin.
Gross margin for the quarter was 61%, which
represents 388 bps decrease from prior year
and a 904 bps decrease compared to Q3 2022.
When compared to Q3 2022 and Q4
2021, approximately 400 bps relates to
deleveraging of fixed costs due to lower
Q4 2022 sales.
Remaining Q3 2022 variance to Q4
2022 relates to lower retail margins,
higher holiday shipping costs and
higher impression kit volume which has
a higher cost relative to sales.
Full year 2022 margin was 70% compared to
72% in FY 2021. The decrease was primarily
due to the deleveraging of fixed costs due to
lower FY 2022 sales.
We continue to leverage our manufacturing
automation enhancements with our 2nd Gen
machines producing over 90% of our aligners
in the quarter.
The Q4 2022 and FY 2022 decline in gross
margin dollars driven by reduced revenue.
70%
54%
70%
$450
74%
FY 2020
Gross margin %(¹)
76%
74%
71%
4%
HAI
73%
72%
65%
Q1 2020 Q2 2020Q3 2020Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022Q3 2022Q4 2022
Gross Profit
$460
FY 2021
70%
$328
FY 2022
61%
smile (1) In Q4 2021, one-time costs related to the implementation of our internal treatment planning software, SmileOS and lower retail margin, primarily
DIRECT CLUB
due to higher expansion costs and excess inventory costs had an approximate 400 bps impact on margin.
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