After SmileDirectClub Inc registered a larger-than-expected loss with greater spending to market its teeth aligners, the eCommerce dental firm said it is examining “controlled growth” this year. The company’s stock dropped 20 percent in extended trading to $9.05, Reuters reported.
The firm has teamed with larger healthcare firms, including CVS Health Corp, to bolster growth. It also rolled out an oral care product suite available only at Walmart.com and Walmart U.S. stores.
SmileDirectClub sells clear plastic aligners that doctors prescribe. Those doctors review digital pictures of consumers’ teeth and supervise treatment remotely. Consumers receive aligners that are custom-made and shipped directly to them.
The company’s marketing and sales expenses increased more than two times to reach $141.1 million over the quarter.
SmileDirectClub shipped 115,042 unique aligners over the fourth quarter in comparison to 76,372 a year prior. The company expects revenue to range from $1 billion to $1.10 billion for 2020. It foresees adjusted loss before interest, tax, depreciation and amortization in the range of $50 million to $75 million.
The news comes as SmileDirectClub has brought a line of premium dental accessories exclusively to Walmart. SmileDirectClub Founder Alex Fenkell said in an announcement, “Since its creation, SmileDirectClub has been committed to providing premium solutions at affordable prices. Now, with this expansion into oral care products, we’re continuing our mission to ensure everyone can get and keep a smile they love.”
Walmart’s rollout of SmileDirectClub items includes an advanced electric toothbrush with LED whitening system. The brand is also rolling out three new smile-enhancing tools with Walmart: a water flosser; toothpaste for whitening and for sensitive teeth; and the smile spa, an ultrasonic UV cleaner for toothbrush heads, aligners, retainers, dentures and more.