SmileDirectClub (SDCCQ) 8 Nov 222022 Q3 Earnings call transcript

Greetings and welcome to the SmileDirectClub's Third Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded. I would now like to turn the call over to Jonathan Fleetwood, Director of Investor Relations. begin. may you you, Thank

Thank you, Good morning. operator.

we call includes let remind me conference this that you forward-looking Before begin statements.

described For additional filings factors SEC to the information on SmileDirectClub, including please the refer company's therein. risk

Act statements. earnings our of I'll this forward-looking should this events. call, undertake Information forward-looking respect information our of refer We flow. on and adjusted call are financial you non-GAAP that statements In beliefs rely certain for law. call XXXX applicable You included make this to on a measures as our obtained statements and to website. have All EBITDA will required except discussion on to not by by the such non-GAAP presentation including with we based obligation predictions financial presentation description update is conference of as as forward-looking for slides Exchange measures future which we Regulation cash also in a on assumptions be no of G free QX can certain the today. of such required

to and presentation and Financial We the you I'm Officer, today Crawford. on non-GAAP Executive appropriate GAAP this to Katzman; refer for measures. joined certain reconciliation call Chief by financial Chairman, also David measures Officer of the Troy Chief

over Let David. me turn the to now call

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reflect results a more profitability is topline positioned achieve leverage better much to our these modest in organization the growth. model, efficient With operating that with

new seeing how take straighten order AI aligners images immediately featuring engine an track a smile our the in innovative teeth. the to future combines will to test device to to This treatment scanning long our functionality I'm that technology. will SmileMaker and This mobile their on our and many made exciting pleased During has the XD quarter including initiatives are we launch of our to submit to significant team solution their our both digitally mobile customers capture plan. automated enhanced their draft after market quarter, growth developments also on announce our technology with progress patented develop allow for and it platform, fourth buy

incremental As we basis basis and only in with learnings million model to the elevated now or an minutes into officially drive our from our our SmileDirectClub buying revenue the point launch historical weeks SDC+ could discussed website in $XXX a offering, is platform as from which SmileMaker site service customers XX rate days up shorten developments points our Many increase conversions branded call have to of will small we provide XX million that and EBITDA. and change factor Care+. cycle sales this great last in experience. A in initial our $XXX from conversion will

our now successful targeted markets leverage learnings team's and QX platform for in SmileMaker a launch launch focus Our four Care+ XXXX. early is our to into test current on are that

SmileMaker We are of our developments Care+ from platform professionals in and an in we've The successful stronger the pilot Care+ extremely in quarter seen year. the excited foundation builds solutions. quarter for just our of quarter first breadth to the increased interest launch not the and a next limited for is even this this

can our both Retainer Gen headcount. technology out retainer that same as rolled X we With also comfort cost improves twice produce Retainer retainers X many and the manufacturing now approximately drives Manufacturing and We Gen Manufacturing efficiencies. with

in As aligner of manufacturing approximately Gen X. Gen twice with produces X our as one-third aligners the head refresher, that was count a many needed

both convenience new consumer's share customers flosser, Smile We offers another Our countertop. countertop retail leading our for store greater of are bathroom premium retail offerings locations our released available and from solution nationwide. online also gaining the which

with National influential the dental credibility expand and solidify minds brands. organizations continue recognize expect our in and that customers dental affiliations our within to As This Association builds is to trade the community. we DSO. customer the their our Association aligners, win within the were our efforts level also to imperative memberships, from for care to partnerships their it dental community, and support membership Academy of come our and of alliance. And the reach, want the hearts of including the upon through Dental service as continuously I such the and we to the dental American they've American existing during quarter, Dental Boards, of further relentless we our provide industry team work the women able to

As we contact quarter overcome to which first our have able some levels reflected XXXX, team our the get updated center discussed industry-leading temporary our service to in and was quarter back scores. are previous of challenges quickly calls, in NPS third in

delivering score aligner NPS XX third-party in the towards increased points of evidence third customer a progress further to choice providing superior Our four that are experience. becoming quarter, making we brand and our

wealth where Finally, expanding marketing he I'm innovation initiatives, roles his product to Vice and in as to bring experience to the reach brings our focused market. Lyft, Ali is incubation Logitech instrumental the which be led strategic Azmat transformative strategies HP, from will President pleased Azmat our role and Azmat of portfolio Product. team to a innovations. our of direction to us of welcome executing innovative to through of at our critical solutions

the across While value we leveraged be have the more and to our at truly initially recognize expanding our the serve business strategic DTC can looking industry, platform fully requires the tailored unlocking reach built have needs globally. the we of the We of customers to built was that channel. assets how

solutions have with We manufacturing and for innovative have utilizing our additive dental us we'll who these discuss recognize robust the market, manufacturer for We're assets technology-driven to growing is approached potential in a share treatment of USA in of We for based largest XD of to and available in outside our and additional to technologies. with and fleets the along believe built these more with our partnerships credibility North position current our have assets. America. months. And the the largest capacity strong aligner to the next-generation be places innovative parties, with great label further on of products. future wholesale proud Combining production unlocking here a this headquarters in infrastructure, partnership monetize potential business value Tennessee, We coming and/or us on in planning aligner the one printing building focus opportunities collection white our the options progress orthodontia.

have broader terms the on teens higher to our to our us market SmileMaker our to continued in the addition the income addressable effectively allows pilot, progress of expanding make Care+ of in and In platform, of solutions, which demographics. introduction reach both compete we patented

an provides Care+ the offered virtual Nashville, access doctor recently doctors. the partner more share event access our our and from orthodontic customer's, traditional network the Our income solution, Care+ ADL strong economics partner to added overwhelming value The platform. time feedback practice. parents offering to teams added growing with solution interest the compelling additional their in-person our robust We'll meet in partner influential higher held $X,XXX often of professionals some and in-person on for in the to positive We addition to standard journey. received treatment and households leverage that service provides $X,XXX demands additional desire in dental for our that level facilities professionals of in dental including network and incremental proposition our by the

economics to supplement customer's In no for addition requires expressed their telehealth solution to base. minimal appreciate unique platform at teeth From adding also across solution, incremental dental have equipment leaders the for orthodontics, as solution, nature and a Care+ service the product turnkey enthusiasm of also the which the of training overall liability. an our the and a perspective, experience, customer aligner the a while competitive zero operations doctors price, clear ability straightening investment treatment

is pilot is continued be receive on launch primary for the through we're Care+ the our QX. able network to making earlier, our mentioned Care+ investment channel partner offering. is customers I program, this track As our in Alongside which of the currently which will early

will meaningful to with and XXX a ended quarter scale and the a offering footprint. both optimize We to active increase which locations, XXX partner of our continue we terms available network quarter broader be of demographics. from is locations second Care+ program As audience our the geographies in

our strong and team of solution increase Care+ our existing is on partner our in force partners, network. focused illustrates our our this within of interest has seasoning generated in sales that productivity While the locations announcement

practitioners addressable that and breath market. We have will continue we offering pipeline growth expended from Care+ of growing drive and across increase to of our anticipate

technologies to customers bring last channels market. healthy a has over have smile from that their Allowing team worked to hard Our through evolved model. begin the our journey to historical years the multiple direct-to-consumer eight to our innovative

through our start location, the with own to handheld next with Our in-person SmileMaker platform. to their I retail from device an journey allowing step want Smile begin their SmileShops with customers customers resonate

In provides leverage are All have wish quality to channels platform to dental that begin can supported of high partner network and and our access to in-person ensuring access telehealth by an results through Care+ access to our addition maintaining offering care. XX/X customers these locations. doctor professional,

value for searching teeth an consumers We business straightening of pure-play have in the that chain market areas in integrated all of solutions. growing aligner clear participates built the

year that customers globally million are and We need the to our have of our capitalize product market section committed you million $X love, fully puts Investor product this website our saving our are we that made members a to the them QX our a provides strategic now, information additional potential. regarding innovations opportunity and we've more detail The than over been us for video on few billion. entire reach to website SDC market. portfolio to And opportunity. brand our just call its provide team driving over portfolio, will on presented seeing how they new With invested Troy tremendous on regarding turn to help innovation bringing X-minute solutions, by more able over great materials investments outlook. To-date, incredible position company We smile including results our review recently innovation that we strong the and aligner in a build a develop while to financial that forward. I'll our strategy and added we can full X.X our to who grow more full Troy? awareness afford are and business. pillars $XXX and I get large Relations to encourage have clear on these our our details an

which a to I posted Revenue to right an particularly approximately $XXX everything for shipped has inflation, the $X,XXX. be will on for David. primarily quarter. investor was XX% which you jump XX% website, additional the We a a decrease review cover. by customer. Please the details on of been the of is million, increasing provides to third our supplemental core XX% I This sure our will for the aligners materials of quarter Thank in macroeconomic quarter, was initial and and driven basis. at worsening conditions down sequentially difficult XX,XXX which sequentially our year-over-year ASP results

activity in by driven over rates was some and primarily Our quarter. third ASP the the decrease second of FX quarter $XX promotional conversion

implicit Providing line Our concessions over in last seen months. year-over-year have gross reflective revenue items, were some revenue results of second the what the economy the other details of with XX on are out we aligner in largely the XX% play revenue quarter. price

see to in in in by of portfolio. overall the the the no the IPC of percentage continue our We as quarterly of quality receivables level the period, deterioration Any well significant as recorded reserves. revenue impacted is rebalancing fluctuation

we in cancellations. As quarters, analyze IPC prior maintained information. regularly we have rebalance and based mentioned We and reserves reserves separate those on current for

difficult despite January While our whitening impacted impression in revenue, with cash structure in program like second our in million revenue ancillary related $X $X include driving our restructuring meaningful affecting year-over-year tax of flow. kit which third due continued implemented and results, cash million, we headwinds by is EBITDA from Much we revenue X% which total improvements very aligner revenue, and from compared the million which down is SmilePay XX% quarter came $XX of $X retainers, came free a financial our other gross associated to the face in QX third revenue interest flow cash rigor in sales products a million. by was the macro at by and year-over-year at million XX% net adjustments XXXX, lower put of customers, show million $XX adjustments, other decline cost plan and decrease and and in the our approximately a came revenue free the and free flow that is have EBITDA in since $XX of in improved revenue QX receivable approximately of at place the quarter balance. Reserves discipline environment. the quarter beginning third of in Financing the we in and to includes in year $XX revenue. improvements These accounts Other or million, which quarter. improved our and macroeconomic saw to refunds

Now SmilePay. at in QX, turning through line historical came purchases share approximately which levels. our XX%, the In financed program to initial of in SmilePay is with aligner

perform base. low file is to in will affordability our continued prior important rates Our consistent and card The have to with perform drive that keep fact SmilePay with the our confidence overall to well we program payment component quarters. a has QX well. gives an the And program continue on monthly a with SmilePay customer delinquency credit us that

we cost point side showcases XX%, was margin the from margin to our cost was for our related our leverage $X.X rate enhancements yields other the inventory the XX% of in Gross The along the onetime Normalizing despite retail the significant continued on quarter. with in gross control item margin from in of results strength business of margin aligner million the an lower for The impacted shipments this have initiatives. to decline our built Turning decrease a productivity second business. quarter which was a business. rate by basis quarter. XXX write-down the

such to to of the as the Our efficiencies retainer expenses revenue a Gen across we'll compared came by on the decrease to efficiency across margins and from teams second XX% platforms. sequential million $XX as on Marketing XX% quarter operating growth improvement percent net get result to of net drive quarter. returns at benefit a solid driving The top the through significant programs revenue a focus focus in is increased of line leverage. in X revenue added our primarily line see and in and or marketing the of as continued continues and selling controls cost team the we business

to by in selling typical include quarter fourth uptick first season in our holiday the As the and demand in sales promotions during Year costs seasonal capture marketing and New an a driven support reminder, trends quarter. the

of anticipate find spend. focus in in is for but on we marketing percent maintaining key efficiency during remaining we sequential selling efficiency a XXXX So increase A to focused and our do a year-over-year a QX, on basis. as seeking revenue are continued improvements

always-on to our which for more the market high fluid TV, with right as leads, pulping had location leads have experimenting important our been of versus the of quarter. the On quarter of of approximate channels highly us assessment keep dark such of quality XX% SmileShops, to allows balance from calibrate weeks we as period top spend our continuing and funnel We strategy a markings pop-up we having and aided in end decrease to quarter expand. targeted the are and advantage a with take in optimize continuously It digital bottom a process a one spent With platform on awareness of analysis, permanent is are efficiency throughout course to held discipline that of XXX requires net optimize with and XXX that aligner targeted daily location mind reallocation. total focus over XXX funnel the base, across funnel events of and achieve spend shop sites locations diversified sales. second an

solutions customer through of quarters. we partner and of both platform, reduction the to increase hosted network we As channel our the of a scaling in number future access anticipate upcoming launch SmileMaker pop-up our in events the our

pending without to continue network will to our locations existing XXX XXX from have incremental training, partner QX. that are over expand from that reach strategies supports channels. North We footprint America cannibalizing by demand now We sales our increasing practices active monitor our or

CarePlus launch offering. has our providers our momentum existing in of the optimizing second our practices, positive the While for the upcoming announcement been focused of interested existing seasoning team solution productivity seeing sales network from and also with preparing team on partner from quarter interest CarePlus we're and our to due

offering not current were in compared a in trajectory, by the to market one-time channel our Our million serve submission for key begin General and offering will QX, network CarePlus XXXX. higher sequential but also legal premium partner the as to quarter our when administrative primarily second growing service was $XX quarter. we costs. scale second increase our only million The driven expenses operations footprint in consulting the $XX from and will

expense with issued our expenses costs Excluding of January. issued costs, million, and million G&A expense April stock-based savings related $XX back interest is compensation defer a depreciation prior which convert amortization compared of secured the initiatives the cost $X.X we result $X.X decreased and Other and in facility to as associated to in taken debt the million, is $X year, million include to of related new in XXXX. loan

lease one-time as costs was and Additionally, and and facility costs our costs to of related January million, related other to associated restructuring retention to our well store as primarily costs abandonment, international with and severance operations. impairment closure consisting store including restructuring costs actions $X.X related

the We incurred also primarily of a foreign $XX million currency expenses, in third adjustments. in related unrealized revenue. produced the $X.X above over third despite the to adjusted quarter, impact improvement of a in other decrease which All million EBITDA of $XX translation quarter million the $XX million is negative XXXX

$XX US net the of adjusted adjusted quarter net to Breaking Canada world and $X of EBITDA was regionally compared million XXXX at out EBITDA loss million. third loss million $XX negative negative $XX Our rest QX million. was came and in

two the updated raising million with results negative tightening was $XX quarter cash guidance which quarter and sheet. operations million second improvement million and negative months QX quarter ended to was net the with third in $X new our Free third facility a with quarter cash improvement receivable cash With remaining investing the the $XXX midpoint full year million, quarter for from and million. some quarter flow and only million the cash million XXXX. while was as from of our until drawn of debt million of in for Moving negative for our the cash equivalents, our defined balance are cash XXXX operations on spent over the line the HPS. range. $XX $XX is investing with over less year-end, Cash we guidance QX on We third XXXX accounts million in cases $XXX $XX $XX third from and in $XXX

results. from revenue also impact through our as seeing We are the traction increasing of that we on solid the that quarter. We're the we performance QX the fourth positive and bottom pushing range we some EBITDA the initiatives based end our cost of drove have customers seen progress continued our savings with are in QX

CapEx million same For the $XXX to we adjusted now year to between negative million $XXX between our January between million gross and million, XXXX, $XX $XX XX.X% million $XX reorganization costs and expect one-time in action EBITDA XX.X,; $XXX million, our $XX from negative between and revenue deliver and margin million full remains million. between and $XXX

the which million HPS Our $XXX coming for $XX includes balance existing of year-end cash $XXX from estimated of facility. $XX million financing, an to to utilization the million, range million primarily of

We cost efforts by continue environment. to plans on Those impact additional efficiency to are of and offset maintain our to the results. year-over-year line our macroeconomic to flow improved structure results drive executing the this focus bottom EBITDA on challenging and cash evidenced driving meaningful

company with robust about platform and are excited from the future SmileMaker of These of to come innovation our are the what's the innovations solutions. SmileDirectClub just CarePlus portfolio. launches stem and of our from beginning our new pending We

in the in to the are built We on that have call for made number Thanks that, have to proprietary we With many industry category aligner increasing some of channels business well-positioned are turn leveraging and our fronts. model to future. like investments clear end-to-end David integration, to closing ultimately back growth I we the the we drive lead over an participate vertical would in the remarks. across the to

of release I'm CarePlus with and this our XXXX. SmileMaker results pleased quarter in upcoming delivered our the that our fourth in quarter early to forward and Troy. look the platform Thanks launch of offering we financial the

market key our innovations other continue of and additional milestones. with these insights the will update regarding along of to achievements exciting initiatives with We any

along to company the I'll Thank Nashville over we insights Investor With targeting everyone from will facilities for our Finally, tours for joining with facility. leaders in XXXX, late back March lab we turn Q&A. that, business today. provide an which to are operator the to call you in our in host manufacturing regarding of Smile our Day comprehensive our

Thank you.

come We will Our [Operator questions. from now Marcus proceed with Please Instructions] line Robbie questions the of be conducting first with a JPMorgan. question-and-answer session. your

Maybe a but is so new little lot taking early, Thanks Robbie. obviously actually pieces and the updates this much it of I Lily I Hi, all there's bit start on you for planned. know product of a be for in might terms macro these question. have moving

are So affect next bottom how thoughts share on you year? XXXX early dynamics? there about and terms these any thinking of you're in growth can should And how top that line

guidance our seeing we're seeing core done team quarter, a marketing take SmileMaker I Yes, the one, that and from market range. initiatives efficiencies call analytics really what is, that and We're we're the SDC give from marketplace increasing the bottom did on XXXX. platform to team in yet, really job, And CarePlus. has this and going both the team. even business, some revise our our two can for guidance Lilia. last We The the not aren't big nice

and saw our through figure is team, And lot in is modeling good very to fourth guidance. data The a from time, discretionary to scientists of but of still it demand We've and as and this right what you challenging how data And consumer in at out able of finally down. is this in competitors. target inflation work, the any that's And quarter far modeling are have in high seen what some some spending. kind analytics we to we took the that's we've challenged in it As we targeting environment. buying this it. seeing environment, period. why the data the our do market. We've revised this seen right who in of breakthroughs we're customer that's look it now But been

guidance very So it. very We're going plan to next our are call. of as can quarterly you far the favorable. on year. these at of give and excited I through as some end initiatives new that, about the how that we doing XXXX affect But It's

to versus on how you And that. -- affected the by it. these a Can about bit growth talk we follow-up macro little Got thinking should you a And think you US trends how competition? to just for geography how moving be in about have internationally? macro? it take forward? what get would be back the So it Thanks. previous in you it international improvements Is strategy helpful. any of more And does color expansion? there Is aggressive that

Yes.

countries. the seen country, high in We're unique in much marketing overall, six now, been this one period. It's Good inflationary same right in countries this it's our we're out it So, quarter the news is better. it's all universal. worse, in to initiatives we've It's not what targeting seeing same countries. through not pretty effect amongst spread that, has not is, all

it's unique marketing this not we efficiency. countries. found in it to US that So all the seeing We're

far a then are Plus. the platform once the we the market, It into and those the from two as get because SDC want growth, macros ability work good be get need anything on But as these start to at initiatives right again the there. in SmileMaker to the to countries. that's marketing you So can make Troy, want focused some work international kit should We've baked we've now. the six We market, international funnel fully and got as both as news, a little our far with bit launched look if of a on dollars we're shortened and growth. harder. easier international how growth or efficiencies But the SmileShop. I all not bugs add to know our And with and don't and at SmileMaker,

easier marketplace look these should into little a we on and outer the new it be that's back at the been to as countries as less bit initiatives years expansion. those I -- all of So think get costly back and once international get we

just international overall split, with in that a perspective, still would just say, XX%-XX% US we're being XX%. international I about running from versus

year the XXXX. of once throughout made consistent we pretty out coming changes been that’s So the

That’s it. Thank helpful. you. Got

Thank you.

of Our Bank with of next come line proceed questions. from Michael the your questions Ryskin with America. Please

Thanks. Hi.

primarily driven just Can be burn on discuss You Any for from spent have for mentioned, the quarter? just any of helpful. implied the there step-up that. that you just kind to confirm you marketing fourth color Mike would wanted that Peter in here. Is

talking You're the quarter-over-quarter? about

Yes, yes.

slightly just just the was It it's individual Yes. month. results up I the think and of

Our and on other but that a bit legal we to was increase up offset cost cost, expense nature. the things that little G&A most of were savings of able of by

kind QXk, like. the you So, for burn cash full I into can what in what if see year, is looks that back guidance our think, you of

Year. we of be New year, getting One spend little about QX, a expect to was that QX. ready obviously things talked up volume go the that, QX up in marketing bit In the kind for New we in from will of

So QX which in burn. we the marketing in a this of I both and drives at EBITDA bit see free decline little little in despite the last think, you But when flow improvement cash cash can sales. our bit of year, related versus year a to significant spend look

then sort Okay. And be here Thank from framework color thinking you can should next or initiatives any we year? helpful. provide of plus just, of the you. That contribution how on was about some

And in there So, a improvement international just have We to US, haven't based late new is a because result the won't in would and the say. for be things be probably to probably nature. conversion our and We've related expect XXXX launch in therefore guidance that mid of of lot impact the on an platform, anything launch well. benefit baked the as rate driving that that on will overall we I it of QX a really big to for smaller country. QX really not as initiatives we QX, it's got SmileMaker

Okay. Great. Thanks.

proceed line with next of come Block Stifel. with from Our questions. questions John Please the your

then, but maybe calls prior positive confident a 'XX 'XX? in I plan the know is those If I I LRP on generating on intact? maybe in the you the or are targets for on apologies I This do on as the start Tom I Hi the still saw to in color still that targets? And tack were on that, and just long-term targets, can John. but free those flow Thanks this, any think, positive EBITDA for in cash if missed long-term and there feel guys. questions. if don't slides. the

answer of in long revised We is how your to it's first I'd it's QX. range part long-range plan listed. the address our guidance didn't exactly in just say, question. I'll the

come definitely off will definitely we'll impact for 'XX, going goes. the as be dependent on go. how I 'XX as point these what guide that's XXXX, we as will and be think guidance to So, out very jumping do of 'XX and initiatives far

help SmileMaker 'XX. launch the impact of the as the SDC think those in place in control And impactful will as be well. those So, very things platform have in launch results. well, then will Plus both And QX, be pipeline of in so More for as we'll initiatives cost also well, I will innovation QX.

on leverage fits So we'll cost I for think what structure you certainly that, can look sales, guiding up that that end think and the guidance structure. and model is for 'XX have a 'XX we about however, the operating revenue in

Got Okay. it.

So just of it on like? some TBD positive sounds those EBITDA targets

if think they mean, those high have about I bottom right. to things, the That's you line. very flow-through

launch initiatives idea to get some long-range of give before we our to we those guidance. really how So want adjustments

I a a then, helpful. Got then, price guys. and if next the competitors, competition, on I are just of recently player that, market. one guys what maybe some took Thanks, out love this as other had you pricing it. can around strategies? exited guess, key you DTC in Would year. promotional XXXX? the you seeing DTC somewhat like there. there Can That's patent from that to your thoughts And things lever some tack be year And

take can I one. that Yeah,

fully have GP this the Canada DTC only We're far very go-to-market platform. the vertically and unique we is starting They them. don't really to we going that's really what recently. like lot to integrated plans but earnings They're don't finance. innovations We built, we've sure Byte lot we're competitors, their shops. said now the on I'm local technology see acquired on powerful. are software. lot A we new from of have a where captive manufacture. market. offering. of not service Dentsply they're We've combination of a planning the They them, don't office. DTC They our we and are. that a kit since vertically seen integrated bolting exited can upcoming one them They As as just like really two very really And competitor they treatment have think call. not hear we telehealth customers sure known haven't don't the really I no have company, got offering a I'm are And a by

As far as the We'll see XXXX. where price table. increase that is goes on the the macro in

will we month. we the two $XX at And XX added to do the went customers $XX price here to up We monthly the still months model with. on SmilePay X.X%. months. market about we're low that rate. increase we at at with our the keeping leader price If to go a were if same extra thing effective same $XXX the Another we get for $XX.XX us We can just wanted go

So aligner market. conversion really it million the all want And is a to margins on through. and SmileMaker into said flows to before improvement, it you're be platform the as driver most possibility. XX% looking the we've on biggest XX product is We -- the of basis gets way $XXX that a the see going plus at

So very EBITDA. flow effective cash

on get we're so price possibly the you're to need on, in cash a the these here by of or of that based can flow know with sooner lot get increase, hold a can market on we initiatives? take depending And to to we SmileMaker? we going even we with the how conversion in does looking conversions will some that XXXX XXXX? curves and positive for that And answer then shortly EBITDA Can questions see do we or the the price

Thanks, helpful. David. Very

with questions Capital line proceed your come next Our Laura the of Champine questions. Instructions] Markets. with from Loop [Operator you. Thank Please

that I it percentage total driving revenue Hi. sequentially that noted to math? Thanks XX% taking increased Is looks XX%. as what's like has for a from other question. And of my the right that?

certainly spike quarters that retail retail of business. in We a couple the ago. had a of Part is

that's there Retainer we've our and of revenue has a as I increased. in But as little nice it. think majority well overall that base through seen customer flowed really bit. is the flow-through on retainers, just

on there. think yeah, I track you're the So right

Got it.

the to care So line mostly working. that's you. Thank oral

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