SmileDirectClub Inc SDC shares were trading higher in Tuesday's after-hours session after the company announced new plans to drive profitability.
What Happened: SmileDirectClub said it was planning a realignment of its operating programs and global workforce to further narrow its focus on its core business and technology-enabled innovation portfolio.
SmileDirectClub was expected to introduce an additional $120 to $140 million in savings in 2023 excluding transition costs. The company believed the realignment would put it on a path to positive cash flow in late 2023.
"These actions are the natural next steps in the changes we introduced in 2022 to realign our operations in order to execute against our growth opportunity with efficiency and financial discipline," said David Katzman, CEO of SmileDirectClub.
SmileDirectClub also reported preliminary results. The company expected fourth-quarter revenue to be between $86 million and $88 million versus average estimates of $99.18 million. Full-year revenue was expected to be between $470 million and $472 million versus estimates of $483.94 million.
The company also issued preliminary guidance for full-year 2023 of $400 million to $450 million versus estimates of $489.34 million.
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SDC Price Action: SmileDirectClub shares are up 14.29% in after-hours at 68 cents per share, according to Benzinga Pro.
Photo: usushiorei from Pixabay.
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