SmileDirectClub Investor Presentation Deck slide image

SmileDirectClub Investor Presentation Deck

● ● Q1 2023 results. Revenue for the quarter was $119.8 million, which is down (21.0%) year-over-year due to macroeconomic conditions but up meaningfully by 38.4% from Q4 2022, following seasonal trends of sequential growth. Gross margin for the quarter was 72.5%, which represents a 94 bps increase year-over-year, and a 1,155 bps improvement compared to Q4 2022. Q1 Adjusted EBITDA) was $(26.5mm) for the quarter, an $8.0mm year-over-year improvement compared to Q1 2022, despite a ($31.9mm) decrease in revenue driven primarily by cost control actions and increased marketing efficiencies. Net loss for the quarter was ($65.7mm) an improvement of $7.5mm vs prior year. Q1 Free Cash Flow improved $35.8 million compared to Q1 2022, showing progress in our FCF improvement goals. smile DIRECT CLUB Net Revenue Gross Profit Gross Margin % Adjusted EBITDA (1) EPS, Diluted Free Cash Flow(1) $152 $109 ($34) Q1 2022 $ Revenue $ $ Q1 2023 119.8mm 86.9mm QoQ (21.0%) (20.0%) 94 bps $ 8.0mm (0.16) $ 0.02 $ 0.03 $ 35.8mm 72.5% Year-Over-Year Financial Results ($ in millions) ($76) 38.4% 1,155 bps (26.5mm) $20.9mm 64.6% (40.6mm) $ 22.7mm $120 YOY $87 ($27) ($41) Q1 2023 Gross Profit ■Adjusted EBITDA FCF Q1 2023 revenue decreased $32 million compared to Q1 2022 while Adjusted EBITDA increased $8 million and Free Cash Flow improved $36 million (1) Adjusted EBITDA and Free Cash Flow are non-GAAP financial measure. See appendix for definition of Adjusted EBITDA and Free Cash Flow. 24 Prior period reconciliations are available in historical SEC filings at https://investors.smiledirectclub.com/financial-filings/sec-filings.
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