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  "documentTitle": "SmileDirectClub | Results Presentation Deck | 23 slides",
  "authorId": "smiledirectclub",
  "authorName": "SmileDirectClub",
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  "presentationDate": "2020-08-01 00:00:00",
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  "notes": "The slide uses a waterfall-like logic to explain the 15% sequential decline in gross margin.",
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      "text": "Gross margin %",
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      "text": "A decrease in unique aligner orders shipped quarter over quarter, while mid-course correction (MCC) and refinement shipments were equal to the average of the prior four quarters. MCC/Refinement shipments are based off demand from 4-6 months ago, when volumes were higher, and have no revenue associated with them. This had an 800-basis point impact on gross margin in Q2. Impression kits represented a higher percentage of the business compared to previous quarters, which had a 700-basis point impact on gross margin. Lastly, retail represented a higher percentage of the gross margin, given the lower initial aligner shipments, which had a 200-basis point impact on gross margin.",
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      "text": "Initial aligners were 61% of aligners shipped in Q2, compared to an average of 77% in the prior three quarters. This is because there is a 4-6 month lag from initial shipment to MCC/refinement shipments, and we had higher volume in January and February. Our long-term gross margin target of 85% of revenue remains intact.",
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      "text": "We continue to focus on streamlining our manufacturing, and we remain on track for the rollout of second-generation automation by Q4.",
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