SmileDirectClub is a teledentistry company. The company was co-founded in 2014 by Jordan Katzman and Alex Fenkell. It is based in Nashville, Tennessee.
Products
SmileDirectClub produces 3D-printed clear aligners. SmileDirectClub aligners are a competitor of traditional braces and clear alignment companies like Invisalign. Communication with licensed orthodontic professionals and other SmileDirectClub staff takes place virtually. Impression kits are sent to customers, after which teeth molds are reviewed by dentists or orthodontists who oversee the treatment process. The company reportedly works with 225 licensed professionals. While most business and dentistry is conducted online, the company has 300 retail locations across the United States, Canada, Australia and the United Kingdom.
History
The company initially partnered with Align Technology as an exclusive third-party distributor for its aligners. After a dispute over violation of a non-compete clause claiming Align "misused confidential SmileDirectClub information and violated its fiduciary duties," Align was ordered by an arbitrator to close its retail locations. The American Association of Orthodontists has filed complaints with 36 state dental boards, alleging that SmileDirectClub violates regulatory standards. According to SmileDirectClub representatives, 12 of the cases have been closed and no adverse legal action has been taken against the company. The AAO has stated that only five states confirmed closed cases. In October 2018, SmileDirectClub raised $380 million in an investment round led by Clayton, Dubilier & Rice and Kleiner Perkins, for a $3.2 billion valuation according to Bloomberg. SmileDirectClub was initially funded by Camelot Venture Group. NBA player Draymond Green was an early investor in the company, investing in 2015, after personally using its products. The company expanded into Canada in November 2018, and expanded into the UK and Australia in 2019. During the 61st Annual Grammy Awards, SmileDirectClub announced a collaboration with singer Shawn Mendes on campaign to show "that confidence is gained with an amazing smile." In April 2019, CVS announced that the company would add SmileDirectClub locations to hundreds of CVS stores. In May 2019, HP and SmileDirectClub announced a partnership to produce over 20 million 3D-printed molds over the following year.
In August 2019, the company filed S-1 paperwork to go public. On September 12 2019, the company went public by offering initial shares at $23, above the expected price of $19-$22 per share. SDC's IPO opened at $20.55 and closed at $16.67 after the first day, a 28% loss from the initial shares offering. After the loss, the CFO of the company has stated that the focus of the company will remain the same despite market evaluations.
