Categories Analysis, Health Care

SmileDirectClub (SDC) stock rebounds amid growth prospects concern

SmileDirectClub Inc. (NASDAQ: SDC) stock rebounded over 26% in the past month on bullish outlook after the launch of a suite of oral healthcare products exclusively at Walmart. The shares remained under tremendous pressure after a low of $7.72 on December 18, 2019. However, the traders were concerned about the company’s growth prospects.

Investors have regained confidence in the company as the venture into oral healthcare products could expand its horizon from the teledentistry platform to the healthcare platform. In early October 2019, the company’s growth prospects were a major concern for the investors due to the challenges in its business model.

dentist teeth jaw
Image for representation. Courtesy: Quang Tri NGUYEN on Unsplash

The company has, on average, about 5 million unique visitors to its website every month and continues to invest heavily in sales and marketing to increase the number of individuals visiting its website. Also, the company expects to invest heavily in proprietary technology platforms, operations, and other processes to improve member conversion from website visitors.

SmileDirectClub plans to continue investing in its business to support future growth by focusing on strategies that best address large market opportunities, both domestically and internationally. The company will continue to explore collaborations with retailers and other third-party partnerships as a component of its expansion strategy.

The company is expected to incur higher revenue driven by an increase in a number of website visitors and conversion thereof to aligner sales, along with an increase in sales and marketing spend. The increase in digital and media advertising and branding efforts, as well as the expansion of SmileShop locations, are likely to drive the growth for the balance of 2019.

Read: Will Rite Aid stock soar in 2020?

As of September 30, 2019, the company had an accumulated deficit of $88.3 million and had working capital of $572.8 million. The current liquidity, including net proceeds received in connection with the IPO, will be sufficient to meet projected operating, investing, and debt service requirements for at least the next twelve months.

For the third quarter, SmileDirectClub posted a wider loss due to higher costs and expenses despite a 51% jump in the top line. The unique aligner shipments grew by 47% and the average aligner gross sales price rose by 0.85%. For fiscal 2019, the company expects revenues in the range of $750-755 million and a negative adjusted EBITDA of $73-80 million.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results

Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a

AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates

Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top