SmileDirectClub shares plunged 24 percent Feb. 27 as the teledentistry company reported a net loss of $97 million for the last quarter of 2019, according to Yahoo Finance.
Despite Nashville, Tenn.-based SmileDirectClub's increased net revenue — $197 million compared to the $68 million in the fourth quarter of 2018 — the company still missed analyst expectations for 2019's final quarter.
Profitability will be a "big focus" for fiscal year 2020, along with improving club member experience, Kyle Wailes, CFO of SmileDirectClub, said
"One important decision that I am making, given our club member experience and profitability in Q4, is to control our growth in order to provide the best consumer experience, and reduce our costs to be adjusted EBITDA profitable by Q4 of 2020," SmileDirectClub CEO David Katzman said Feb. 25.
Some believe the lower quarter results could be in light of a highly publicized NBC report that revealed hidden recordings of SmileDirectClub employees misguiding patients. SmileDirectClub refused to share whether the publication affected its business.