3 IPOs With a Lot to Prove Next Week

Earnings season isn’t over yet. There are still plenty of publicly traded companies that have yet to come out with their quarterly financial updates, and that list includes several of the more controversial names to go public in 2019…

SmileDirectClub (NASDAQ:SDC)The RealReal (NASDAQ:REAL), and Revolve Group (NYSE:RVLV) are three interesting companies serving up fresh financials next week. They all went public over the past year, so investors still don’t have a good feel for how they will fare relative to expectations.

Let’s take a closer look at each debutante ahead of their stock-moving reports.


Recent IPO SmileDirectClub has had its teeth kicked in. The provider of clear dental aligners at a discount to traditional outlets for teeth-straightening solutions has had a rocky road since going public at $23 in September. It was one of last year’s biggest losers among the 2019 IPO class — closing out the year in the single-digits — but it’s trading 38% higher so far in 2020.

The platform’s popularity is growing, judging by the 51% surge in revenue in its first quarter as a public company. It will get another chance to impress the market when it offers up its second financial report as a public company on Tuesday afternoon.

There’s a lot going on at SmileDirectClub these days. Some of the things that have been pushing the shares higher in 2020 include the end of its exclusive supplier agreement that will allow it to widen its target market and a distribution deal to sell some of its dental products in the country’s largest retail chain. However, an NBC News investigative report earlier this month profiles some customers who have had unsavory experiences with the corrective aligners. SmileDirectClub fired back, defending the quality of its products and its teledentistry model. It should be a lively earnings call with all of the headwinds and tailwinds coming together.

The RealReal

The leading online consignment platform for verified luxury goods will also be announcing financial results shortly after Tuesday’s market close. The play on the circular economy trend hasn’t had a problem drawing a crowd for its discounted second-hand goods. It had 542,987 active accounts at the end of September, a hearty 53% surge from where it was a year earlier.

The RealReal also has some negative televised publicity to tackle. Late last year, a CNBC report detailed the hundreds of fake products that were returned by buyers. Counterfeit goods will always be a problem in the resale market, but it’s a big hit for The RealReal because the model emphasizes that all goods sold through its marketplace are verified to be authentic. Right now, TheRealReal is…

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