SDC - Earnings call transcript Q4 2019

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Operator

Greetings, welcome to the SmileDirectClub Fourth Quarter 2019 and a Year-End Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instruction]. Please note, this conference is being recorded.

the Investor to Relations. turn Sternberg, host, now President Vice will conference your over Alison I Ms. Sternberg, may you begin.

Alison Sternberg

Thank you, operator. Good afternoon.

Before that this me remind includes let statements. we forward-looking conference begin, call you

to information the risk SmileDirectClub, described in. there additional For please factors Company's filings, including on SEC the refer

presentation, obligation events, which or on beliefs not as our this our refer based assumptions be and future such call to explained forward-looking of should website of you looking applicable today. slide except our statements as can description predictions forward-looking are You statements. forward on statements that as two law. I rely of on all we make information, by required We to certain of undertake no update on

also financial slides the certain will such free respect be obtained discussion In non-GAAP G on EBITDA by and with measures call, have measures, in call, flow adjusted the is this website. non-GAAP presentation information required which of to our can for financial cash this Regulation we of including Act a Exchange conference included

reconciliation We a this you certain non-GAAP the to GAAP presentation for measures measures. also appropriate financial refer to of

joined today Chief Officer, Financial and Katzman; call our Chairman Executive Chief in Officer, and am our Wailes. the David Kyle by I

to now turn the Let me call David. over

David Katzman

SmileDirectClub, made Allison, has time. Thanks, and team for on course a I and of the extremely progress joining milestone the you our for major am everyone. Thank of call year good us afternoon was today. XXXX over the that proud

details our EBITDA year. quarter associated beyond, early past and to XXXX I massive thoughts, opportunity I'd the before, highlights the said before with and by innings the through we adjusted the of into on from I walking are some a in start our and very key As in like shortfall go untapped associated

basis successfully shipped We $X,XXX, total point Kong, ASP we entered XXX including Zealand, $XXX.X XX% us which at the in XX% saw Asia. roughly Hong We revenue of and year-over-year. countries America laid and we orders the Europe XX.X%. new New of Ireland which five which gross global in line expansion across United in and XXX,XXX margin, of Kingdom, year-over-year, a strategically positions XXXX, came outside and unique expansion for improvement achieved year-over-year In North an platform million for Australia,

We insurance such coverage. continue Aetna orthodontia with UnitedHealthcare, in-network Developed very retailers cultivate to such strategic a relationships partnerships with and Walgreens providers major the as as customer we for launched CVS, oral locations, product innovative and channel nighttime-only increases X,XXX value clear of our members. approximately club acquisition launched in aligners, life line a adds care an time new Walmart which and

the And that ignore our another even any goals offering. lastly, completed call. negative we these inefficient a a was incredible expense. by due higher this it in process Despite later shortfall elaborate in which and resulting quarter This XXX.X administrative and office our a expected negative a in In came year. our general in back accomplishments, we XX million, than year. operations up We'll fell to inefficiencies standards, isolation driving million most factors, combination we short manufacturing, public initial full notably for on in justice, the cannot of

it X,XXX short years. plans to We it's in with few it. perspective. in XX a across keep said, company I in just to team we a in understand only place $XXX said, we grew we to these countries That we goals million important That things seven approximately have quarter, in SmilesShops. results, our we missed had Revenue being X address think XXXX, the and and own was members, million why profitability

elevated support care to position a Kyle continue our profitability miss. our the years, QX negative international which Substantial in the of will I'll against oral specifically highlight few to contribute in investments to next few the a in protect areas to address anti-competitive infrastructure and EBITDA as to lobbying legal continued growth our innovator our the expenses space. behavior disruptive and over mission and defend expansion a

by manufacturing hiring caused plans facilities and processes administrative in delay manufacturing operations, our future back of aggressive driving than planning our expected a treatment automation to inefficient growth, in expenses. general higher and Inefficiencies office support

causes takes that Additionally, as occur as the points, still which to broad in shipping team for we dropped of NPS in well. in their also saw experience in fourth receive few This our time noted we shipping website LA and quarter overall on that score the quarter, impacts for which delays it's experience care delays experienced downstream impact a XX. XXXX, customer customer liners our a as above the our fourth impacts impacts had it member November but

As And profitable important in is decision, costs order they XXXX. of but reduce of to provide EBITDA to Kyle growth am this every consumer QX faced our adjusted CEO experience later, given with numerous business, QX one control club the our experience profitability as decisions be and by in I members best upon our elaborate will very difficult to day. making are

customer is in to this the our order cannot cornerstone we Our maintain and historical growth experience of our business rates. sacrifice

the this on us Now, club accomplish member these us opportunity. savings, do positioning achieve our are we and also are critical on a objective capitalize global best to To for it this experience to the to following. is ensure while focused time to providing we every

business our rates, continued focus the future our discipline dollars already in stay planning scaled advancement Continued to of and long-term network, allow treatment SmileShop a been on to demand, automating can marketing existing to down discipline to demand manufacturing including rightsizing anticipation selling which and and flex ahead demand consumer to deployment more rigorous overall up us of has and business. and teams, in cost which operations around growth our production streamlining our pushing and priorities conform of the across

that awareness dividends accomplished as globally one as we largest These XX% of with pays With and the the past in clear to huge dominate years, positions therapy aligner own base over future. providers overinvested we us have three this the expand we North America. of and investments the membership a of the have category in space, will the and

I stated a our and strong business, up, growth to the growth for as margin opportunity of expansion see SmileDiretClub position As fortify us and controlled is our revenue year year this foundation XXXX overtime. we

We have pricing the gross tremendous leader. no in with over margins XX% category and economics pressure as

we XXXX, year following. full For expect the

and XXXX. representing between including fiscal positive EBITDA XX Revenue XX% turning to to for between midpoint negative million billion, at to year-over-year the of X X.X range year EBITDA negative the is of adjusted be billion expected million the XX adjusted by QX growth

are five now will actions to us we years. of Beyond next position year Average five XX% following growth over achieve margins or the for and year this XXXX, the XX taking next XX% fourth we the of ramping per the the believe years, driven each year, of end adjusted adjusted time to by up period, quarter that by XXXX achieving XX% thereafter. EBITDA by the EBITDA positive revenue

these rates do we and our Kyle Our based to customer leadership and the value business, to while us walk of on current proposition estimates detail on call. through above. in further the the believe opportunity faster can in we the which in our noted our more this; provides the however later focus an experience enhance maintaining we maturity will growth grow than decision strategic our infrastructure, continued making market are

make growth drivers Turning will we achieve these enable it growth a it and profitable a about are no be the will results, us to company a more continue company future, mistake that controlled, to in albeit growth to at pace.

we've grow opportunity course continue to execute platform. to XXXX, beyond the smile significant got love against a to we millionth they Over plus customer, members using soon our as will of approximately XXX,XXX the our hit

industry leveraging aided and wholesale. particular, on our case expanding all today, funnel. continue at every age our experience two new awareness remain especially We're club acquisition who our focused Walmart by approximately is thirds to with which In member we and starts. the X% of club entrance our improve members focused also business partnership will point We demographics and our on our teens, touch across into of at members acquiring represent channels, acquisition total conversion across

the increasing quickly. is we expansion lifetime of accommodate for to driver us our the growth our right the are a into as International In to business time for members. expand club of both for the rack lens and the now and cases, clinicians, key case value expanding also Walmart continue both consumers different to of us

alluded to to approximately of outside XX% market we've before, on focus footprint. the is continue international opportunity of we As U.S. our and expanding the

XXXX continue. and in middle countries, entered pace this two Hong and Kong we to now we five already expect added of Since with the XXXX, have new Germany,

and execution need unique launch our new unmet early refine year. across is an plans international robust a geographies effective new value We've additional with have team, proposition globe. We meeting demonstrates to roadmap into extremely our international improve strong in uptake and significant to a launch successfully further regions the market throughout strategies, this and continued these with started

XXXX was year and we for on will product a development. focused great remain innovation

whitening As launched bright nighttime in come. whitening flosser, there's enables to to of on Style sensitive while an premium toothbrush, our their liner suite December, late clear launched straighten which more mentioned In they our club care products we sleep product, Smile water innovative oral members expanded July, toothpaste. we patent pending only and our including teeth and and very

replicate our outcomes most enhancing selectively relationship anyone model, towards incredibly and to research We our significant continue is with better lengthening deploy around competitive and better while revenue members difficult individually our moats business development improve and which our resources make about have it I stream are spoken clinical continuing importantly, the to our also efforts built. our of over for we recurring what of to support our with approach.

here, our with approach, with customer our issued completely in pending delivering and our true end omnichannel vertically plane brand med our tech manufacturing affiliated platform, positive six a patents exclusive our and to doctor to experience frequent end cap consumer integrated customer dozens Calling few network, a driven a a experience, operation. SmilePay financing, mission

as as smile access important everyone. provide they and to by every it most levers continue stay many for our profitably to grow execute and our to to as convenient allow we loves us especially and matures, affordable mission making each person These business nimble for against to us and democratize

is take a topic Before I very important conclude, moment I me. to do to want to a that address

and clinical is business, to moment given and address healthcare than about the outcomes, of it to I our was misinformation efficacy nothing product a product. a important take our felt And this. As important the safety more

SmileDirectClub, and aligner therapy clear safe Our is efficacious.

coworkers, itself. speaks other safe lives members, our members thereby countless club including and personal XXX,XXX great providing for my transforming their friends nephews better. nieces, The data mine, is the for over for of relatives, outcomes club model effective, our and With and

XX,XXX for reviews normal star over XXX,XXX reviews and approximately sdc.com have rating X.X rating. on star X.X Google We and a the

find patients offices. XXX,XXX experienced and care same of in the and orthodontists network to over their Our dentists do brick-and-mortar they standard skilled of treat that

As patient best medical a there any do or with there the that not in are risks to But plans result go case our the practice, contraindications. is factors. any brick-and-mortar procedure, compliance is other our of as individual as completely sometimes as correct traditional are doctors procedures the

refine line, of Correction our aligners industry club clinical instances ratings of better and industry of are X% norms vast concerns in are Mid-Course some in sort better the Approximately nature. Our members not are satisfaction our not refund if and norms. majority than than for ask

is the consumer brands NPS the Our among world. healthcare best in

of network focused the club orthodontists, time pain points. clinical dentists of safe fight product the the for in consumer product we products, on our address collectively, continue misinformation our about is remain effective. all by innovation, affiliated to all for technology, our demonstrates the laser platform, investments experience That it will members improving care and our this at that and and clearly said, same provided Looking and at

office. XX% and a and their SmileDirectClub, defend U.S. to smile care to represents, to weren't in have fact many members our of would us Consumers even up mission convenient If over confidence deserve threatened by the in provide. to able the who the those their club our that the improve affordable, an the prices relies marketplace, counties don't access through not of we access it option. Our be orthodontic care and high what for standing and are upon company to safe,

of Lastly, to Board the be building I announce Directors. will you clinical around orthodontists report would an advisory globe like board, and that independent directly to dentists made of of some our that best the may up

among quality this teledentistry advisory help quality for industry measures, and board strategies expect improvement We ensuring data with quality for advise to help standards things. set continuous other

the of support and against fight and thank this entrepreneurs on be continued without would your backdrop disruptors, the club and you None As the of members support. to engage in of possible for information, of big this we backlash every attempts behavior. part members, industry dental day our anti-competitive and team we investors,

I Kyle, walk will of detailed outlook. provide financial turn our results who through Now, more the call a over our to and review you will QX

Kyle Wailes

David. you, Thank

we decisions impacting the As our ensuing past fourth accomplishments while course the quarter David beyond. a deliberate year, over mentioned, provoked our of strategic have are results pleased the our and with year plans for set of

can To by growth, ensure the controlling selecting long-term provide short the very making and investments. this need experience footprint, in strategically and be growth, we international term our global managing best to customer profitability, accomplished targeted

Before and walk beyond, through some for our quarter XXXX result additional would I to provide the address outlook for our like context. and I

aligner at down end ASP come a to came at XXX,XXX. primarily in XX% was we which able the actually highlight in have revenue which the at for fourth that quarter and the of year-over-year year-over-year. shipments, This increase with an was by XXXX. in our we've revenue driven to which pace statement, Turning X,XXX, been high to the quarter. in million X.X% would in of the increase important income XXX.X was quarter the XX.X% orders keep of came range represents increase It's of

certain to fully of with automating demand. our we capabilities, were the of manufacturing a pace volume the challenges enable us doing But associated fulfill

facilities a treatment address will automating top manufacturing plan their of I in fully reduce costs. improve experience is and XXXX moment, the and As to member in more one our priorities our

which was XXX driven was and in versus basis XXX% for margin Turning was prior by Sequentially, This manufacturing. margins, XX%, margin gross the in-house expenses year. the to down by improvement point gross in a quarter on the points, contributed due mid XXXX. David quarter-over-quarter was quarter that basis certain and efficiencies adjusted largely fourth XXX to This earlier. of to manufacturing decrease of alluded our EBITDA half

on to mean what want manufacturing we by and I elaborate efficiencies.

today. are automated facilities personally manufacturing Our

rework to Oftentimes, causes output what XXXX. thermoforming scrap production same fourth like an operations. higher in labor automated, per as for the thereby trimming still moves saw is aligner. production there's of This heavy and components there's component down involved, While the which arcs aligner are and quarter the labor line, and spend lower cost you

Part in we're to and which it. and quarter understand it actively Out this addressing are problem of IT, operations is EBITDA this positive fourth problem we quality teams of fix the achieving with revenue at incorporated XXXX. addressing XX% how in half XXXX or adjusted our the Marketing and of QX revenue XX% XXXX. and million back selling into the expenses of quarter net for net the expectation in line in XXX of of have

improved Sequentially, marketing revenue and by selling percentage points. a XXX as a basis of

behavior During continue the our significant investments their already make of on strategic in anti-competitive brand quarter, the markets strong model. recognition and building we international against phase business launching to in

prior expenses administrative XX.X XX.X and were year period. in million QX the in General or million

pivot for adjusted rationalize increase to in the onetime at part EBITDA our beyond. over were based G&A sequentially. quarter-over-quarter million compensation missing stock in XXXX the of quarter half reason and of as costs and Excluding costs expenses This XX the is our

we quarter-over-quarter maintain access and continue to expect and before, supportive XX% you legal spend our see our as Our elevated and defend sequentially, lobbying care. we expenses stated proactive mission as to legal increased consumer can

Looking at for it's structure to higher earlier that note to conceived G&A revenue to our an on based was outlook plans important overall, designed G&A XXXX. conform aggressive

and coverage, categories, D&O than higher following Additionally, across spend we insurance international technology, consulting, legal the saw expected expansion.

we stocks associated nature compliance XXXX were All that implementing the other Some and D&O cost for of items one-time and be these need standards. broader expense beyond. such the IPO in will in as with accounting insurance, lease controls are

to team few our approximately had for That's of by our Accordingly, demonstrated course years. countries of issues occurring considerations of as as growth members a XXXX to comes XXX As infrastructure beyond. also our the given controlled rapid has in challenges over seven with we set increased fourth enacted across maturity a we've their we David support right revenue the grown mentioned just growth to with outpaced customer growth X,XXX in and plan of plan business a the million earlier, we've quarter. the size already the and teams experience are operations production in have

QX adjusted G&A that was inefficiencies million influenced compared loss there came on QX were negative in million net In in operations; our our at two, and EBITDA the for quarter-over-quarter manufacturing XXXX. expenses loss to factors XX a increased One, quarter. net summary, XX.X two basis. EBITDA Adjusted million. non-labor XX in

adjusted EBITDA XX%. Our margin was negative

software XXX mainly the operations the fourth the the equivalents. to and capitalized but on cash million Moving the million associated defined in from of quarter cash and as cash associated cash from Free ended investment Cash less fourth million, sheet, XX balance automation. quarter cash with the with for approximately XXX our payments leasehold XXX negative quarter fourth was was quarter for improvements, from onetime million building fourth was for XX we operations million, with negative IPO. manufacturing flow spent includes cash investing

to in XXXX an QX using turning trended revenue SmilePay, concessions QX a elected Implicit revenue which QX of is purchase SmilePay, down revenue Quickly XX% as down of XX% to from down delinquency XX% QX XXXX. of XXXX, associated also gross which aligner XXXX. of gross of from members in has of total with of rate line price is in X% percentage

controlled to a growth beyond, stated, we XXXX year of as have XXXX SmileDirectClub. and for turning significant Now is albeit

Our number one is club to experience. improve our priority member

big to global also and understand have we profitability. have achieve for will build a term focus we XXXX for growth. the Profitability in levers the business on built position to will us we international pull our infrastructure already We be long and

revenue from following come will areas. growth Our

into penetrating two farther thirds case our core X% expand we as American teens. our business. industry into also penetration North approximately yet of ones such of while to represent starts new Continued our core Teens market, intend demographics

acquisition and on to new focus also such We as channels retail. intend wholesale

Our markets our growth for expansion come progress from meaningful continued already throughout will where architected have strategic a also existing we overseas have international roadmap in beyond. and markets and made XXXX

see North recall we of You'll outside of the XX% total America. that opportunity market

to us advancing quarter production business around referenced a and consumer as to we cost term our manufacturing on in streamlining the Network, already continued long scaled growth our our designed have and demand put us our On future XXXX scrap, to team certain and and conform for rightsizing earlier, pace targets, side, has automating existing more planning fourth on pushing of focus enacted initiatives selling with including of and keep including David priorities track marketing for profitability discipline operations our been dollars, demand. allow reduce to deployment to continued of demand, to already which the in SmileShop the anticipation

And efficiencies will and profile only all meets business, of and turn margin will operational believe profile, customer our demanding beyond. to cost discipline to improve in I'd like cost With rigorous mind, with we for across improve through more the this our the but experience provide outlook streamlining importantly that consistent expectations. our not XXXX

For year a range, billion the between billion member X.X growing midpoint representing and at the and X factor the XXXX, XX% fiscal this profitability. growth experience limiting Revenue of over year club year controlling growth our is of we following. our expect on

mostly year in maintain year positive first profile and this in QX. one operations for our XX quarterly XX as intro the future to that new EBITDA is provide our do XXXX We given cost for to the the to and our the I'd some scaling quarter at forward for given losses plan and point be adjusted between envision guidance EBITDA year revolve. like million, quarterly specifically continue in we to Adjusted not business, rapidly of negative highlight in of fiscal expected half markets. do associated size guidance our providing as investments right with dynamics the we now, negative

for long-term for club Our XXXX are or over plan to our growth. member optimize experience designed positioning us

XXXX, long-term XX%. we growth to XX% XX% expect to and Beyond of top XX% annual margins line EBITDA

international aligner per in international XX% top which from clear is year market. growth America, markets, top our from markets XX% targets from North Our A line growth annual these not to a XX% in with in expansion existing approximately do are new long-term revenue include annual and to line channel. derived the million forecasts the material $XXX wholesale line XX%

appropriate our We that penetrate in update as our begin of the to stages time We're launch. we forecast the will still also early at market.

We very are opportunity. about excited this

by best growth best and global experience the clear important a be necessary This drive me the and along will category. that oral in disciplined position that the steps Company taking Let saying global along the believe leader product to with with we approach customer margin we're care expansion. as innovation

turn back the over that, With Q&A. for the to I'll operator call

Operator

will be conducting we Robbie your time, with a Instruction] is [Operator this proceed Morgan. from question-and-answer first At question. Please JP Our session. Marcus, question

Unidentified Analyst

actually Hi. taking This question. the Robbie. Thanks is for Lilly for

you've So, is? the second, for primary a the with U.S. versus thinking XXXX, questions new few And think that What New you seen negative how attractor came launching markets to little published York about on few in the last one. our into range guidance The can rolled below particularly NBC do adoption, weeks? of bit you that and a trends here Street. all comment the falling Starting one that in? the segments be were the the in trends non-U.S. we should more, any in

Kyle Wailes

the first and will then Kyle, Yes, I'll part last take is take David so part. this the

about it's member on So start. the club in a the you really about that's to well an effort we by in at the today, it's we best about talked if growth as, great instance, think XXXX, that about ensure look doing to strategically our support positioning call, really controlling for as around we've global head got growth, our to long-term XXXX world if you the ourselves that U.S. members growth of provide and believe so

the in believe continue to future. in We've investments of and made we the share and market to the years off awareness even market and are payoff referrals pay that we've expansion three to over gain terms margin going overall that invested past over in and

brand and the put the If presence pressures. low have have the U.S. we no you we today, at cost that provider, we pricing we've are look

to right given position all the think that, ourselves we it's time right of footprint. global So the for now,

investing also the wholesale, demographics And that we've making in and product it's investments talked as at innovation, all of new key the well strategic time market as to same this like about And in quarter and long-term sustainable for fourth is on in us a XXXX the but focus obviously profitable of not for position last us. growth. that about We profitability. very talked least big being again,

David Katzman

so been Yes, been question your model. been negative NBC for coming. you the disruptive part York I Time going third knew years. has mentioned last every It's since we specifically. the on really on the in This of question the is think New started in it been It's I've in the business was XX We business.

It's I last to of be since the and time the attention a to and call, as we attacks In turn, stated on shifting going been a put it, proactive. more a heightened public. being we're lot been think on it. highlighted from strategically more reactionary Company there's more lot I it's to

we're to it model, working takes effective care, hope is, how with teledentistry our really for legislation going announcement on using their few with dental just now. shortly. in but agreement teledentistry boards patients the working that the It's right to platform and protects model, weeks in exposing a there what true what's those put with truly type but we're platform behavior and and and by next anti-competitive following And we're cause the for we in have out there of to same sharing access country state out calling out months the that's teledentistry across see to come years safe Really have platform. been is some going now we're place

troubling and of people a to truth trade safe see. higher and What's millions expose cost couldn't high fair legislatures, the about who protect is better various will only that the forward prices competition hurting getting model this, by access educating, It's look various outright we the of to of effective you'll it the lies smile afford our and care to and otherwise organizations the is. that we and getting how

Robbie Marcus

quick one. And you. more one Great. Thank

With push feel of do in raise few how have the profitability, you next won't EBITDA that out capital confident you additional the years? to

Kyle Wailes

about if cash today, year so position look Yes, a at million XXX you we've our got end.

also additional today the and I with of does overall. will growth international that have have. have JP those international our not we fund are options ABS in at particular both say, really supporting will the million growth that facility to a we that facility because $XXX better growth support look We we together

If at range, obviously, you great proxy the XX.X look is midpoint as about XXXX a know got million EBITDA. of it That cash. at to the we've you of for negative overall

We million change and and in then what what in XXXX XXXX, similar well. saw you to in expect revenue XXX as about capital you a CapEx saw percentage working similar in trending also to

feel our So putting test. all good that together and we about

Operator

with Stifel. question next from proceed your Jon Our with Block Please is question.

Jon Block

contribution And to, versus you Or it details a what of from other Thanks. can terms from follow-up. then And words, I've is markets? kind U.S. launch you alluded then more buffer got you international standpoint? the bunch also some in the usual? business Maybe from AB XXXX are that a assumptions break anything a of as down sort in In in XXXX, so of regulatory just of low in guidance, is there guidance, XXXX did standpoint? some there an as revenue

Kyle Wailes

Yes.

more So regulatory, business maybe on as business operating our we it's as XXXX, impact California. past for in we've as an normally talked haven't and seen in the usual on about

at versus international level of If detail that Jon yet. you not the look U.S. the providing in we're so breakdown,

point we're that out to level year breaking this at crosses how look some start be I up trending, it'll as now not we'll at likely we're you think break it the that of but later if detail. for XX% barrier,

we're because look XXXX particular in The overall at guidance. down what breaks it and giving not quarterly

revenue first in XX% the revenue and our quarter. and would third in particular, the the the again in in a fourth. of little think helpful what We XX that second about I it of we saw about our XX quarter. to third saw more XX% XXXX get the We XX looks in details saw around go in -- be in like, just quarter

a as percentages online quarter, result be of throughout higher the this comparison XXXX. to expect XXXX saw than in year. that the international had in in QX of coming particular throughout we to QX split what XX expansion those evenly course fairly So bit you countries I little in would in XXXX a in and approximately comparison the

Jon Block

helpful bit might it was all our In wholesale anymore but couple ago long, one in words a a initiative. of very the color the Okay, more times, other next due tepid. mentioned of couple little diligence on and due weeks a you bit respect from a but little

the and how be? What are couple of the braces? And your call is need on are guys. David does a point take right to follow-up, on complex that know, a customer usually more the sort initiative why default also cases, mentioned teens you times, teledentistry a you those time of price up experience the [indiscernible] ramping as standpoint? So from cases your the for Thanks by teen improve are if to

David Katzman

teens. start not I'll do going to on your the now. cases with We're on teens we question handle. take can't We that

sure aligners. going but to from only for not that was to compliance last tight. launched actively inbound make had strapped We down product. year, parents who to $X,XXX, a those of nighttime We I'm and spend said, teens. going ironic and I'm we It would have go gone clear requests But when if marketed nice I the lot they're

risk clear because don't And that wrestle parents that while it so, want don't to pain teens versus says, want one issue teeth aligners that of with the for is compliance. I compliance straighten

category. is a So, to mild teens out the perfect, moderate. of lot it's still There's product there, big nighttime

a so office that XX% spend more, lot had requests. marketing their more into wholesale, we're a we what and because well, to wouldn't of orthodontists said but some doctors, Rica, go inbound of in a to come. brand, and that down and coming our dentists complex, have, into I in patients marketing our got requests. lot do can the of who these have patients on the So, the so brand out SmileDirectClub We're planning dentition. the of and going we of we dentists saying, of treatment was We do both our say there and mixed that working and and lot awareness strength inbound we for it's of wholesale really derived after Costa moving With of

that We the we what convert and a That's don't. currently CapEx to It's, as and It's into of really a those far model. offer designed low touch for call because as dentists line developed of are collaborative something testing it's that the very in website XXX,XXX which IT for products we're it's our explained that. these not us first do programs, currently. clear

to take that little into like out more eventually development for other that do you so to we That's straight wholesale we'll XXXX. And launch and market but wholesale a going go know anticipate us time products there. then in

Operator

Our next is Please question from proceed question. Guggenheim. with Santangelo, your Glen

Glen Santangelo

to Thanks the on to controlled point follow sort the up just experience. of customer improve David for this questions. taking making you're growth

is of some your delays, highlighted as issues a it growth but on put as growth on operational to as regulatory the follow-up to brakes marketing controlling by How the going it? slow raised particularly landscape, about to You expansion, go you shipping related you such are your issues to if or the do the How that less ultimately that. kind relative spend members, thought? the and point international all controlling clinical the to relates

Kyle Wailes

I the our relatives, wife improving is somehow my what clinical nieces, a the nephews, growth daughter's Kyle's, you related outcomes of in guess control Counsel, are in in her and it. we it. really our saw was law, It was Legal I've the outcomes, of the sister Susan, Chief clinical had some fourth time, difficulties reflection operational in manufacturing. The not all quarter to

our has second QX. part? second And part that in the of our what at down do to So question, the the become positive with nothing slowing growth was to

Glenn Santangelo

mean, you expect you I expansion, on international the less growth? was slowly spend how do how do question marketing? brakes Or The put on to you it? slow do the

Kyle Wailes

Yes, said, as long correlates over say always a overall, marketing that there's I that between time, and would can how period to good a one. correlation and sales especially take revenue. our I we've of spend

growth through U.S. particular the well. you further as there's what experience on the can we lever, within there But the for that the so club obviously members the a limiting have push as is channel. side look factor international at that doing optimizing And we

self talked our long-term the market that We that about call time the globally around I earlier the all believe, to the U.S. the given world, position in is right optimize now growth. will that dynamics around which

within of around that well. and span regard world marketing positioning combination as and controlling sales ourselves span. has correlation it's high the So the spending that regions U.S. also a our regions We're a certain in within appropriately those

Glenn Santangelo

clearly and seeing suggesting? marketing all? know a marketing hop acquisition pretty of customer of and able And and bigger. correlation around gets Kyle on it questions lot your I'll volumes, is Are between customer you my dollars questions as the off? at Or you we still as leverage the members to cost that to spend follow-up you being those base your that you're be moving was get that

Kyle Wailes

Yes, of XXX talk do quarter-over-quarter, so our spend about overall. costs sales SmileShop different break and don't I'll improvement basis ways. out point we We about marketing a sequentially, our see span, a couple from obviously but acquisition within in our

marketing over that the year, of things at look members. I But this are you we're think, the when give you example, look channels value and our at doing if to for new reduce and increase acquisition opportunities at if also acquisition club our you some side have time. wholesale of Walmart, us costs opportunity the the to lifetime both look

demand have And right network We leveraged or ramp marketing, of If one is looking SmileShop you more leverage past we're look that beyond. at building in operations and portion things that we associated putting the we've the big that years network we've a and several more and believe the opportunity more XXXX with we demand. we that had to that over or advance is push And built for from big that. the XXXX have in get to future demands through sales that that or start at in push that footprint an out. the existing of

by from are to network. get front that of of leverage quarter profitable expecting XXXX, the SmileShop our attorney, the we So fourth more EBITDA

Operator

Alex Craig-Hallum is question next Nowak, question. Our from Group. Please proceed with your

Alex Nowak

just to be using? more the teams be going parent-focused there you want David, everyone. perspective actual What of the this actually afternoon, do just on another instead on follow a to needs to up because is on from marketing question Good patients team.

David Katzman

which right will that marketing see product, about both actually the team's what and We're beginning plans the well I'm asking media, launching that after teams season. going in now as working difficult is doing I social you'll the it sort have teams want products, the think time It's so products ads task. TV parents that media, May, are of social the in a that we're to of team our of with the be really and ads components we speak life our don't a it's producing the

to seeing the was just, that something we it we just my demand, hesitant again parents in was and all aligners wanted when and out life I and on that launched has hadn't that past focused for came it. these We looking do it's think the time our clear team with to what once it product, that

So it. excited about we're very

Alex Nowak

working licenses mean with of pulling recent Because dental I pulling is director within negative Okay. a is SmileDirect. potentially how the there's the what now those Understood. boards who going the months? around recruitment personnel going from been are with lot And commentary or dentist

base within of a recruit is the are So and you any install dentist's dentists this? concern finding of hard hearing it I'm just curious, because it's your team

David Katzman

Not at in boards. from And when you lot and dry, of we is coming it of dental of there's the it you was know, shifted the listen, a kind the some that when things all. in said inquiries launched room study been the

have never negative their any have reaction. case or any we've lost of lose had license We our of any adverse kind never network

and single We dentist and network that in them publicity of not investigation media all any of have this XXX lost to attention.

that, from It out want it are I've matter that's we more more all, heard to of noticeable seen talk So, makes what with providing and opinion. be some fact, for our desks, what talking that let's at how I'm it's about more them them stronger. access makes that to don't them see let's recently we've Pushback agree shows but not we hear. I on care go, of fight fight sure where so than come they you got

Alex Nowak

switch to the growth? then gave lower Okay. the controlled here only did And when end of No, to decision you more that's guide to good to in QX. got hear. You back that the

did So decision controlled the growth, span and to in in QX of I'm that on a kind slower growth growth XXXX this focused profitability? more to pivot slow curious, and

Kyle Wailes

experience high important drove the to quarter, the that you're of we the it think to did fourth I ship customer had do mentioned I to of end because our have weren't the remember manufacturing we it's issues and just out, we point the issues able range Yes, out. of as on to that hit the demand some poor call, so in

evolved to as So our the it MCC particular course back of at get in got up quarter within definitely where shipments backed over the continue and we shipments there. well more we refinements, up

over shipping a the online that. we've the That's course seen February result within the January been change times improved normal sentiment back and as we're of and of

commitment is do making to so So it. that's every why it's doing same and sure all a that growth we believe to of issue, make function thing to us single experience the our XXX,XXX a it's million, customers be right the demand a not board, our the across control where we're we customer get

David Katzman

These are David. we internally. it's had Hey, our discussions

you you fight, and grab share Home a give share a sometimes Officemax, are profitability let's Depot, investors there's Lyft, market say dog to Uber, in break got a and that and worry gain know, If profit you about Lowe's, market you later. reason will

tech to consumer us, there. in are it's For don't space. experience pioneers There those it. We We other med customer no own about direct out we threats. this platforms the were competitive have

we it, profitability. and media about better of a social to heart complaints fast you the see down and we're on nicotine, my know, consumer as result a very took focused the there that XX% get realized tried you customers ourselves we that getting and the thinks quickly, the rate consumer aligners need don't as pretty are but of can this So that that slipped go the experience. it's ourselves about maintain really hurting in we're to for plus time, only of you tolerance we lot very, as out larger, to we not said, we and growth And sentiment

barriers about It's And in think I to a platform to company, years everybody entry. it's been we and good and it has a win all so, you know, it's five moats for feel this a extreme testament now.

haven't We we us competitive in future. in space the no foreseeable see real one is anybody any had the don't and like There threat.

a that good let's provide pace and at can grow So we experience. a customer that makes sense

Operator

question. with your is next Our Jefferies. proceed Please Couillard, question from Brandon

Brandon Couillard

elaborate Thanks. maybe by kind third a sort market mass if kind quarter, you whether coming for and case? digit was even going U.S. out what's confirm a our sequentially, in curious afternoon. of that Good Maybe only you suggests mean of depressed the single of up of could US question it the just that's fact you the Kyle, in I on can

Kyle Wailes

Yes.

versus we said the America. earlier, So to domestic versus you like know, don't down North international I want break

in more think granular particular. I think details business, I year particular. a to then we start point this later at of around as individual our international portion provide to look you markets can get your But a becomes bigger we'll in QX the

for You we're you see the put of the this know, growth in range, the providing but we can Obviously see the midpoint business. strong fourth over we've year year, out not that at quarter. very up quarterly XX% we still there XX% year guidance across were

Brandon Couillard

me far of is as outlook comp openings? maybe if as concerned, you Okay. of the planned CapEx the couple back numbers can help love SmileShop well 'XX as would the Maybe year? the excuse also with you a the as as for you. us the stock number Thank as can far number OpEx add

Kyle Wailes

I push by profitable There's on and shop IPO said outer we portion to what XX at on years of of that the the about existing start look openings to that, be footprint. our part quarter. you if our comp approximately think a start. comp would XXXX. that to strategy stock-based a for I I can the the million still is IVH demand through estimate in normalized fourth so from that's about focus be XXXX, think half to Yes, in based expected stock more XX running overall the basis XXXX. really I And for million are through are side On

the in we've growth beyond. a future over several years to So, and built the XXXX support network past

I now, XXXX. So as material in expect would openings of not

locations with geographies so better DMA to Now Tesco. booking test locations if those that and optimized we tests. ultimately or working those or started also rates certain Well, improve are and can are we tests said, the have thereby at things to rates Buxton we in and looking like conversion

middle those We expect to year. be done by of the

numbers that the back some in countries international You year. this U.S. locations we're the but adds material see the hundred in entering see additional if half you those could the would goes adds On across here for basis we've not XXXX well, for modeled I expect a into approximately

Brandon Couillard

expenses Anything as operating sales and far goes as just G&A year? the marketing, for the

Kyle Wailes

are in is, what of quarter ended leverage. fourth Yes, I say I'm we We and would within at XX% you not sales giving marketing an sales overall the but and particular, know, revenue. marketing exact number on expecting

picking You quarter. of overall strategy the up, it know, profitability that we're by important our given achieve fourth demand to an is that component the

about over as you XXX course If the first improve on year continue goods point execute of have second at those of cost in would our sold the a expect to problems. half improvement look our the to of of we automation manufacturing we year I basis as the half particular, the year, in the over

generation moving to about There about talked is additional past in upside manufacturing. it to that of so second we the a

year a haven't basis G&A achieve the revenue that the ended XX% to IPO you XXX numbers that distorted because side, of additional improvement over QX. here. up are the at We upside the in obviously, little bit of half QX for full the that we point on to in year. in at of could XX% of the look those And if And factored the the expecting the the incremental and improvements it's revenue be 'XX, overall, then course XXXX second we of profitability we have into numbers year

Operator

question. William Blair. next John Kreger, Our from is Please with your proceed question

John Kreger

losses bridge, year. profitable quarter you you think by maybe take it be hear improvement? say of the EBITDA with million are us a points of $XX like you questions. Did next to may higher there? that keys? the same just of sticking -- we you one sounds fourth a that? If basis bit margin in Kyle Or guys does being Can about how firmly line just I give this get and us think need be of the XXX than committed Is gross of you it to about quarter, that

Kyle Wailes

that the the the year. of we keys back of the to No, versus execute the that's year right. half have That's half of one first over

good and I as correlation to revenue in but think overall. a at before sales long look and time, we've you sales you with With can we're at our the this and competent bridge we good XXXX marketing of projection, have fairly overall period a example. spend the over revenue look marketing said if

example, add ability that breaks because the that week is that can if the manufacturing. within to you mean look demand a period period we correlation an Where at as demand, down XX have even over four in it doesn't necessarily fulfill QX we where the to

going But So, That's if bit little short-term late of have QX loss QX have obviously, mostly look side. costs an bridge in headcount to you the the we out over a impact at the costs. period. through there on on a the itself, a coming QX for correlation there

And to happen we're on expect which more markets. for pushing execute automation also to here, QX SmileShop about the from it's continue talking we to network, the international got new to QX. the then implementing We've that demand

on look before on be XXXX in this a to to across weighted dispersed continue was you here. international basis we the have little year. evenly that the quarterly markets ramp-up I year the more gated XX% to fairly to expect revenue been back-end if call, XX% want at at of already As talked about I a as

John Kreger

relationships more any the about Can do doing? little the to X? United payers how a uptake you add And other are you list get Did to 'XX? you expect talk January Aetna bit on in

Kyle Wailes

near when expect be we other more payers. and and well those we future to we add to and now payers do. do sign announcing negotiations We're many So right expect will in discussions with in the they

uptake, the a of term much for growth it's strategy terms us. longer In

we'll the that employer self the about a that they're we insured we in future. here self be partnered future in But you actually a have now insured have much ortho recent So here with ortho United large win and term adult out coverage talking coming release having the near numbers a in not longer where where insured, a do have for adopting material sell near one that but it's near a we adult for that's see. coverage opportunity here employers, It's from to the impact term place self XXXX.

John Kreger

last just And issues second one at bring manufacturing have on And a this production Can Great, thing. thank altered point? you resolved facility? plans clarify, largely are the you your to you.

Kyle Wailes

the on labor the Yes, from side, resolution yes.

that outlined that So, we to able to demand team for here we XXXX. right that size need we've the fulfill be

those. do to a about, know -- of which have you scrap overnight. to see If you as the margin. overall We come evolution. we several know iterate we within exactly course it look you That'll the we QX address that's at and we implement processes, improvement not the happens and within why over rework that the happen see what the inefficiencies that that not talked comes those improve immediately that's a and months But is the over that as and gross year continual that we online fix online

Kyle Wailes

Right.

capital decided the the all not as savings, bring online. of built fully invested out that the bourbon, needed part we while we had have invested, to and we So, that

dental in next of the in possibly are the where on is far see As should of QX now plans we'll in the be the which works, as whole exploring prototype as that it so. here Nashville automation, or month floor goes the

So until XXXX. not being of second facility is potential savings online that that

Operator

comes your from Credit with Suisse. Erin question next Our Please Wright, question. proceed

Erin Wright

how terms you break in experience incremental perspective? Can your out XXXX how is XXXX? expense a guidance much relative in legal to expense your in in embedded is of Or much from legal Thanks.

Kyle Wailes

about and We number were in the legal third talked expect are QX we continue over also given about quarter, we an legal XX% would as our from had where from quarter doubled haven't trend so the the second today. our we up directly lobbying, and obviously costs lobbying from QX in to exact sequentially we well. expenses Yes,

model. much As historically, to stated regulatory more become been on about we proactive so the compared where side built the earlier, talking we've into

Erin Wright

here you outside UK? can Okay, other in news update the regulatory countries the the recent I dynamics give today great. on Thanks. U.S. us with out of then an And in guess

David Katzman

Legal of news. is I'm Okay, not who here the Susan we aware Are Officer. have Chief you? our is

Susan Greenspon Rammelt

concern you came expressed in so sorts Hi, in model. our just lot efficacy GDC guidance. the here is as the the similar safety we of know, news what that that out the more in handling to States. UK the is we being have the and The A are by these questions difference to seen of far as United experienced of

and question that the making to of made GDC by sure our and already terms not clinical they're by just a network dentist orthodontist We've but we're something of in in as them of aware been them it's communication SmileDirectClub really and the decisions with all concerned in not being about. educating educating and

Operator

Please Our Nathan with next your question proceed Sachs. from question. is Goldman Rich,

Nathan Rich

XX%. revenue start outlook longer to to wanted just XX% with for I the term

but the longer initial was curious kind to of changed get kind outlook on the view little lower of bit expectations understand term just what relative think challenges, those it of expectations term near your the what to that initial been? I what's you some than know maybe a be I on might've would are

David Katzman

goes we said that outlook we member seen about to you've provide it we club as that growth able believe have growth sit what best achieve exactly we can and And controlling like experience. feel I had that. is we back the before. our today, The to to really do rates here here the here Yes, be

for to If so possible. our term that issues to pride we've it line that had the is strategically you fourth market. was manufacturing growth But XX%, that's to look the particular we felt experience we the in in long we XX% growth our ourselves rationale within that won that U.S. position with several the next the two, the the we optimize around outlined behind world everyone want the at we given really control quarter, so important and years best

under penetration that of been assumes You've of additional kind to XX well demographics. no new XX

our today assumed particular. factored XX into year basis that, of that business and assumes hundred teen They in we've call, the penetration. well. excuse markets same would is teens our about markets XX on international XX or XX% annual the the The X% to range, me, into So on and older. an high Also about XX%, U.S. international UK, more is in penetration current about XX% market mentioned today that I would grow from XX and million to It we're the a as like end per XX% as of from assume at new to Australia. XX in

Nathan Rich

for Okay, ASP a follow-up great, you like XXXX it's the Kyle, from just the on looks down guidance. a then and pretty ended guidance significant where revenue The step quarter. fourth

of us the So you. think I dynamic was wondering what's Thank help there? just kind if through you could

Kyle Wailes

Yes.

we lower as and is, push it's So more international. it

Canada. book It's thing. We then well. lower typically expect of definitely about price raised will Australia, We to point the typically as the or we over we launch as did that UK of so. our bring plan. six United raise expand months kind we our price a price States. XXXX in happens And here up a opportunity out launched, of period in prices And expectation we an So in bring international, same just it do the that's is with There's we what equation. to for then

last five We the five increases that had question in over asked call. We've price years. got

plans no break barrier. XXXX have We to the

so wise, away the is from ways competitor shows though would XXXX. even that in be that research not long next Our

getting roadmap, there's premium also on XXXX know, premium the product price between of there's mindset, a our in from somewhere consumer's point for Just time and price a you night in a a a possibility only possibly product.

model So that's that's built the well. increased on Not price. something today, for but the into as roadmap opportunities

Operator

The next is Bank America. your question Please Michael from question. of Ryskin, with proceed

Michael Ryskin

and putting comments I more the the about want of network. on, existing some talk shops small you to guys. your the, know, Thanks into

lot have was the shops small you to of lot I wondering of is sort currently the a being shops staff including you XX% new or was that more a utilized. the average shops if see of only So the stable that you for international. that your have

update sort why terms in know, Just number and you could that's you given trended time isn't of, an demand how the that massive us give higher seeing on over you're of shipments?

Kyle Wailes

that's across an shops. average so all Yes,

have have but across that some that are average We some we an that's all. are lower, higher,

to had strategic know, shops over demand. add plan a time of in advance future we've You those

example, that, shops down was high XXXX or And XX% where back, to we so utilization we've fewer above if some know, shops the as those had you an and in you've go in today, had as utilization seen shops. as and done were go you significantly of to as we

back get we assumed more haven't those We throughout incremental have utilization we and them But modeled the in demands push improvements XXXX. footprint. levels as to to

for We either are Buxton. other not utilization with getting doing smarter health footprint world XX% where having on smart with we modeling. it. we're customers DSOs, And table we the you're did leaving and professional who now it time. is get retail and work internal companies get because hired we've They can't They're renowned modeling,

X wants if PM, Everybody utilized, Saturdays, is access XXX% shower. we're not in the fill to That's fringes, the so the to Everyone to got be open X:XX one You're up. you're never you've going if level. wants on you going of to up there capacity XX% too find optimal hours. and much we be right to number the so there's believe from trying

that need, Buxton over site, go some as someone demand to will some I think the to us drive shots working be they see rates. should think right don't really be booking if the to percentage need doing months that the the how available, the you give placed, I they the they of when the where show but that don't comes down something open convenient there that's many we with or hours, two hours next will exactly we're testing answers

professional more the something get thinking a it, think it's So we answers. on to right approach I we'll to

Michael Ryskin

follow some sort both and up some And to and the you've thanks. more I you longer conservative you questions slightly the the customer view the just way right the the with established correct itself experience and term in XXXX the of and outlook letting if grow marketing XXXX the the had, size footprint G&A, me into see like right, could results All on you reconcile, just prior is deals points. have sales some I'm some XXXX The the it Company SmileShops. things manufacturing wrong, of to as on of issues with of of follow-up

Because you if by growth that five implies XX% average, XXXXs below example, XX% if that that's turning overall issues those is of longer work you're, why rates if you you're year, years, North you're XX% year then then America the the sort well over in down for the through course in said, in end of the correct much So that year and you've got sort more the end to do term profit below? of as you even your the into average. of out do

get bridge and growth you're me just reaccelerate firm profitable, to once an you So us why, help period rate? you're not turning back can the improved you through XXXX able to

David Katzman

range, near end to an experience. Again, and to the lower expect be at XX% but by at the that the continue it's customer to of in over that end, all time period. mature that as average of the years, XX% higher driven Obviously we'd Yes. we

business infrastructure that the provide So put we and annual the from the issue the net we into here as new get an the still growth will. not have to believe in what and limiting is we've QX than really business XXXX best. we basis then can It's the absorb and it's on beyond. grow for XXXX causing that's if we to market XXXX, And capability a quicker certainly this,

Kyle Wailes

the We area. NPS There's in one, the to economics years flow good of be our having number not And bad all faster. experience competition, could in customer is thing. maintain foothold within be we the no It's it. for not XX% investment. new This getting And believe two need company, don't don't XX% -- be positive reason XX%. to the That'd We cash trillion growth score a this, would I have markets a we -- approach. growth unique but is there's we've five growing right it's this see, laid to experience timeframes think customer Customer such experience a change, out. dollar plans that a company. grow driver do being the that or a number profitability to no the no great entering with

Michael Ryskin

clear be that to on last just point. And

to manufacturing with the back a February, that correct? You start January customer you did Is year. that did some scores some higher NPS and work and following say in trend those the you the seeing of are experience of

David Katzman

as social Absolutely, media. We on Facebook. now. XXX,XXX media take a customers, those in majority it happens right? social social media. of a on We're experience. great can power What you that yes, the overwhelmingly see media Doesn't Instagram live many loud social the company, And have getting and of that's start

It was And so real. real. it was really

MCC We refinements. getting daughter My own a eight to got on time. get had out peoples weeks she that We MCC were wasn't behind.

so not We turning thanking are. And and didn't things us our around. we're seeing from already -- we sentiment for who social that customers listen own media and we to that's need do better

we the very out. So, taking excited we're about approach are

Operator

UBS. with from is question. proceed Kevin question next Our Caliendo, your Please

Kevin Caliendo

back cash and just around Kyle, the burn. through want the to statement go the I cash

the to comment a likely be You that made working capital the is same.

a like or working million. capital any in any why there there working think you improvements negative the reason is I AR? make you cap? any can was be chance would it and Or Is know, XXXX better DSOs $XXX

David Katzman

those be the working expect percentages to Yes, the so that's you you've just revenue, to is historically. capital comment seen in to as clarify, that percentage similar would change what in change

the we're we that there's As turning to grow we programming prior the year that we in the this we've control this have than But of do and continue small we a does associated see two before. itself. to in we about said as business And then that occur before, bigger growth is If do the prior in with because current the years talked years expect XXXX. cash burden base positive. quicker ourselves two it combined, still share receivables year, as than of flow growing

Kevin Caliendo

there still of there Is change in terms Is the [indiscernible]? in SmilePay a range? XX% in percent quarter any there a fourth as the

David Katzman

right. That's

well, purchased, was prior XX% gross about revenue as from down continue members concessions, Implicit So XX% we've to price X% XX% of aligner prior year. down to year. the of from seen who that the down trend

seen So, good we've seen you've well. there as progress

Kevin Caliendo

be are I in been so the guess because have that spiked could this about they even of All up up, DSOs right, third confused the have in then but the issue the what forward? DSOs level be of the we come the there quarter revenue opportunity we I'm quarter and thinking quarter, on anything a couple going about that there about the up this or normal days side? that again? receivable there are should Is sequentially should is Is new an thinking

David Katzman

DSOs we've look, in we it Yes, the model as the metric necessarily managing about right think how we talked to don't, past, is to AR. don't a metric be

XX% we've months, you by curve members which comes of period at a think basis the it price or offset that over a talked implicit in of the is cash on got X% how I of revenue and to XX that about. concessions our really for the look

there XXXX other on definitely improvement the and months continued continue financing So improvements, there our so in for continued we and past seen even the opportunity progress we've know, that and optimize we've there for we've to is roadmap make companies consumer several you processes that's beyond. to hired and

Operator

the and reached We have conclude end session that of today's conference. question-and-answer

participation. a You time. may disconnect Thank this your your lines for And day. have at great you

SmileDirectClub (SDCCQ) 25 Feb 202019 Q4 Earnings call transcript