SmileDirectClub’s disappointing third-quarter financial results were attributed to economic headwinds and Apple privacy changes.
SmileDirectClub announced its financial results for the third quarter of 2021, reporting a decrease in revenue over the prior-year period.
SmileDirectClub attributed the results to unforeseen economic changes to its core demographic and Apple privacy changes that presented a challenge to digitally native brands.
“We are disappointed with our third-quarter results driven by the macroeconomic headwinds that are influencing the spending of our core demographic,” said David Katzman, chief executive officer and chairman of SmileDirectClub. “While we could not have anticipated the rapidly evolving nature of this impact on our consumer, we have responded quickly to focus our marketing on helping support them during this time, while we also move upstream with higher income demographics through the Challenger Campaign and investments in our Dental Partner Network.”
SDC reported total revenue of $138 million, a decrease of 18.3% over the prior year. It saw a net loss of $89 million for the quarter, a 105.6% decrease over the prior-year period.
Year to date, SDC reported total revenue of $511 million, an increase of 8.3% compared to the same period of 2020. The company also saw a net loss of $240 million year to date, an improvement of 2.1% over the prior-year period.
The company made 69,906 aligner shipments in the third quarter with an average aligner gross sales price of $1,900, compared to $1,794 for the third quarter of 2020.
“We have a product and service offering that is highly competitive with the incumbent in our space at a significantly lower cost and is a true differentiator compared with teledentistry competitors,” said Kyle Wailes, SDC chief financial officer. “The liquidity in our balance sheet and the strengthening of our brand will allow us to execute on our lead strategy and change the composition of our marketing spend to more efficiently and effectively drive long-term growth.”