SmileDirectClub Halts International Expansion to Focus on Profitable Strategies

SmileDirectClub made a series of strategic business decisions to focus on near-term profitability and cost-reduction.

SmileDirectClub announced a series of strategic actions to position the company for improved business performance and future growth.

Expansion into new international markets will be paused while the global economy recovers from the pandemic and macroeconomic pressures.

The company has suspended operations in Mexico, Spain, Germany, Netherlands, Austria, Hong Kong, Singapore, and New Zealand.

It will continue to operate in and scale its presence in the United States, Canada, United Kingdom, Ireland, France, and Australia.

With these changes, SmileDirectClub will reduce its workforce to tailor its operating structure to the countries where it will continue to operate and focus.

“These steps reflect our commitment to optimizing our investments in those initiatives that are expected to bring sustainable long-term revenue growth, driving improved profitability to our business model and right-sizing the organization to support these programs,” said David Katzman, SmileDirectClub chief executive officer. “We believe these initiatives are the right strategy for the future of SmileDirectClub by stabilizing the balance sheet and having sufficient cash to operate and invest in the business.”

Other strategic actions include right-sizing its cost structure to support core growth initiatives and allocating capital to countries with the highest potential for near-term profitability.

The company plans to expand its professional channel, the SmileDirectClub Partner Network, and improve its aligner products to allow the company to capture a more significant market share of the teen and higher-household income demographics.

SmileDirectClub plans to expand its oral care product business and focus on SmileShop growth in markets with strong consumer demand.