At last check, in the current trading session SmileDirectClub Inc. (SDC) stock slumped by -16.09% to $8.92. SDC stock previously closed the session at $10.63. The stock volume traded today at 5.81 million shares, while the average 3 months trade volume has been 5.14M. In the past year, up-to-date SDC stock surged by 52.95% but in the past week, the shares slumped by-3.89%. In the past three and six months, the stock had shed-24.45% but added 14.42% respectively. Furthermore, SmileDirectClub Inc. is currently valued in the market at $4.28 billion and has 114.04 million outstanding shares.
The operational background of SmileDirectClub
SmileDirectClub, Inc. is a teledentistry company that specifically focuses on its platform for provision to its clients with a customized clear aligner therapy treatment in the United States and internationally. SmileDirectClub was founded in 2014. The SDC headquarter exists in Nashville, Tennessee.
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What more you need to know abou SDC business model and product offerings
The company also provides with the end-to-end process, and these E2E processes include marketing, aligner manufacturing, fillings, the appointment of treatment through a doctor, and tracking the completion of the process. All of these services are proprietary with a network of orthodontists licensed from the data and equal to around 250 of them along with general dentists. The platform itself is what connects the patients with the orthodontists and general dentists and known as SmileCheck. The platform allows you to avail yourself services like aligners, whitening gels for teeth, impression kits, and retainers.
SDC faced a cyberattack in April which may impact it throughout the second quarter
The SDC stock had announced that it had faced a cybersecurity breach and incident which caused the stock to be plunged by 7% in the after-hours on Monday. The company filed the necessary filing with SEC. On 14th April 2021, the company was attacked by its cybersecurity platform with malicious intent however SmileDirectClub has not disclosed specifically was the nature of the cyber-attack.
Cyber-attacks can range from Smurf attack, DDOS attack, Malware attack, Drive-by, SQL injection, and other types of malicious attacks. However, one detail undisclosed by the company might narrow down the list of attacks which is that the SDS stock mentioned “No ransom was paid” which leads to suggest that it was a ransomware attack.
A ransomeware attack is a form of malware that blocks out the data on your computer with encryption rendering it inaccessible. The attackers then demand ransom from the victim in order to restore the data. The payment is usually made through Bitcoin.
No ransom but the attack still financially caused millions of dollars in losses
SmileDirectClub announced that it is not aware of any form of damage or loss to any of its data which includes exposure of customer services and team member information. The company states that it expects a loss of $10 to $15 million of revenue. The incidence has and potentially in the future cause delays in the operations of the company and throughout its network on the platform.
Furthermore, the company has reduced $195 to $200 million expected in the second-quarter sales due to the impact of the attack. The financial and monetary loss to the company depicts the intensity of the attack which must have deeply affected the SDC stock’s platform.