SmileDirectClub Results Presentation Deck
Gross margin.
Gross margin for the quarter was 70%, a 288-
basis point decline versus the prior year.
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These declines were largely driven by
costs incurred through the end of March,
even though we closed our facilities on
March 20th.
For example, we paid our team members
through the payroll on April 10th.
A great proxy to normalize this is February, as
it came in with a gross margin of 74%.
We would have expected similar margins in
March, had it not been for the COVID crisis.
Additionally, we continue to focus on
streamlining our manufacturing facilities, and
we are on track for the rollout of second-
generation automation machines by Q4 of this
year.
smile
DIRECT CLUB
Our long-term target of 85% of revenue
remains intact.
72%
Q1 2019
Gross margin %
TH
73%
74%
70%
Q1 2020
Jan-20
Feb-20
55%
Mar-20
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