SmileDirectClub Inc (NASDAQ:SDC) reported a wider-than-expected loss for its first quarter.
The Nashville-based company reported its unique aligner shipments rose 12% to 122,751 during the quarter.
First-quarter total revenue increased 11%, over the first quarter of 2019, to $197 million.Net loss was $107 million.
Adjusted EBITDA proved a loss of $67 million. First-quarter diluted EPS reported a loss of $0.28.
Said CEO David Katzman, "Despite these challenging times and a unique and complex operating environment, the SmileDirectClub team has navigated through the initial obstacles of the global pandemic by implementing changes to how we operate our business.
"We leveraged our teledentistry platform, along with our completely remote kit business, to continue to serve our Club Members during these challenging times. Our performance in the quarter, and more important, since then, validates the strength, durability and flexibility of our business model."
Since Q1, SmileDirect has seen robust performance in its impression kit business, despite a significant reduction in marketing spend. This demonstrates that investments in brand building and marketing efficiency have begun to pay dividends.
Specifically, although marketing spend was reduced by approximately 90% over the past 60 days, kit and scan volume was down by only approximately 40%.
Additionally, because the Company has very few fixed costs and the vast majority of its SmileShops around the world operate on month-to-month leases, it has been able to take decisive action, including the temporary closure of all SmileShops other than those in Hong Kong
Shares subtracted 98 cents, or 12.7%, to $6.74.
