SmileDirectClub Shares Tank As Company Reports Q4 Earnings Miss

Shares of SmileDirectClub Inc. SDC plunged in the after-hours session on Tuesday as the teledentistry company missed analyst expectations for the fourth quarter.

What Happened

SmileDirectClub reported a net loss of $97 million for the quarter that ended in December, even as the net revenue increased 53.1% year-on-year to $197 million compared to the $68 million posted in the similar quarter a year ago.

The Tennessee-based company reported a loss per share of 25 cents per share, almost three times higher than the 9 cents loss per share estimated by analysts polled by Refinitiv.

The net loss attributable to the company rose 0.8% YoY to $26.22 million.

SmileDirectClub said that the number of unique aligner shipments in the quarter was 115,042 compared to 76,372 in Q4 2018.

What's Next

The company's chief financial officer Kyle Wailes said that profitability would be a "big focus" for the financial year 2020. "We understand the levers we have to pull to achieve profitability," he added.

"2020 is a year of significant, albeit controlled growth for SmileDirectClub. Our number one priority is to improve our club member experience," Wailes said in a statement.

"We will also increase our focus on the international infrastructure we have already built to best position our business for long-term global growth."

SmileDirectClub gave revenue guidance of $1,000 million to $1,100 million, which would mean a 40% YoY growth to the $750 million posted for 2019.

Price Action

SmileDirectClub's shares traded 21% lower at $8.95 in the after-hours session on Tuesday. The stock closed the regular session 4% lower at $11.33 per share earlier.