On April 14th SmileDirectClub said in a regulatory filing that they had experienced a systems outage caused simply by a "cybersecurity incident". That seemingly dull and unimportant filing changed tones very quickly last Tuesday after the oral care company reported that the cyberattack last month could cost as much as $15 million in revenue.
This revenue dip is not a direct cause of the hackers though, SmileDirectClub says it was able "to successfully block the attack, no ransom was paid, and the Company’s systems and operations are back online and performing normally." However the company said the incident "may have a material impact on its business operations and financial results in the second quarter." The Nashville company's shares were down 14.3% to $9.11 at last check.
SmileDirectClub said it expects its second-quarter revenue to range from $195 million to $200 million and adjusted EBITDA to be about breakeven, reflecting a revenue loss of $10 million to $15 million from "the cyberattack and the associated downtime in treatment planning and manufacturing."