Smile Direct Club Up as Loss Shrinks and Revenue Rises

Smile Direct Club, the Nashville provider of teeth-straightening appliances, narrowed its third-quarter net loss on 6.5% lower revenue.
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Smile Direct Club,  (SDC) - Get Report the Nashville provider of teeth-straightening appliances through teledentistry and via professional dentist and orthodontist offices, narrowed its third-quarter net loss on 6.5% lower revenue.

The results, reflecting factors including cost controls, were stronger than Wall Street analysts expected.

The third-quarter loss shrank to 11 cents a share from 89 cents in the year-earlier quarter. Revenue slipped to $168.5 million from $180.2 million.

A survey of analysts by FactSet produced a consensus estimate of a GAAP net loss of 17 cents a share on revenue of $145.7 million.

Smile Direct Club shares at last check were up 3.9% at $10.35. They finished the regular session Monday up 5.8% at $9.96. 

The stock has nearly tripled off its 52-week low of $3.64, set in early April, and it lags its 52-week high $15.54, set in mid-February, by 36%.

Chief Executive David Katzman said in a statement that the results provided continued validation of Smile Direct Club's business model and reflected "our continued focus on controlled growth with profitability."

The company shipped more than 93,000 aligners in the third quarter. The average gross selling price for Smile Direct aligners edged up 0.3% to $1,794 from $1,788.

In the quarter the company cut marketing and selling expenses almost in half, to $66.7 million. And general and administrative expense fell 81% to $74.1 million.

The Smile Direct Club statement did not specify an outlook, except to say that "favorable industry dynamics" prompted Smile Direct Club to expect "more efficient customer acquisition costs."