SmileDirectClub Inc. (NASDAQ: SDC) stock declined by 1.9% at last close while the SDC stock-price plunge by 12.545 in the after-hours trading after the company released its second-quarter financial results and missed the estimates.
SmileDirectClub is an oral care company and creator of the first medtech platform for teeth straightening.
SDC stock, Financial Highlights
SmileDirectClub announced its second quarter 2021 financial results. Given below is the summary:
- The net revenue generated for the second quarter 2021 was $174 million which is a rise of 62.7% compared to the second quarter 2020.
- The total loss calculated at the end of second quarter 2021 was $55 million which is an increase of 41.6% compared to Q2 2020.
- Adjusted EBTIDA for the second quarter 2021 was $22 million. This is a decrease of $2 million from the same time period in 2020.
- And lastly the Diluted EPS was $0.14, a surge of 44.0% over the prior year period.
SDC Stock Official Statements
- David Katzman, CEO and Chairman of SmileDirectClub stated that they are focused on realizing their worldwide opportunity and expanding their leading telemedicine platform for orthodontia by focusing on the customer experience, increasing consumer perceptions of credibility, creating positive attitude through the Challenger campaign, and investing in new technologies.
- SmileDirectClub Chief Financial Officer Kyle Wailes further added, they were unable to achieve their expected second quarter results given the short challenges from the April cyber-attack, the long-term economic implications of COVID on their intended demographic, and the slower scaling of certain of their new overseas markets because of COVID.
When people are thinking about getting their teeth straightened, they do three things to find out who they should go with: one, they go online, secondly they ask their dentist, and lastly, they consult a friend or family member. The company is continuing to spend heavily in these three areas in order to become the market leader in teeth straightening organically. It is investing heavily on brand trust online, owing to the Challenger campaign, which emphasizes the company’s appealing value proposition and, as proven by customer sentiment and brand credibility, is working.