SmileDirectClub shares jump ~15% after hours on cost-cutting plans
Jan. 17, 2023 5:21 PM ETSmileDirectClub, Inc. (SDC)By: Anuron Mitra, SA News Editor1 Comment
- Class A shares of SmileDirectClub (NASDAQ:SDC) added more than 15% to $0.69 in postmarket trade on Tuesday, after the company announced that it would cut costs.
- SDC said it would realign its operating programs and global workforce to focus on its core business and portfolio.
- "By taking these steps to right-size the business, the Company expects to introduce an additional $120 to $140 million in savings in 2023 excluding transition costs and place SmileDirectClub on a path to positive cash flow in late 2023," SDC said in a statement.
- With these changes, the company expects to achieve positive adj. EBITDA by Q3 2023.
- SDC also provided preliminary guidance for 2023. The company anticipates total revenue to range from $400M to $450M for its core business. The consensus revenue estimate for FY 2023 is $479.49M.
- Furthermore, SDC provided preliminary guidance for Q4 2022, expecting total revenue of $86M to $88M. The consensus revenue estimate for Q4 is $98.88M.
- For FY 2022, SDC expects total revenue of $470M to $472M versus consensus estimate of $483.76M.