Q4 total revenues of $995.2 million and
FY2024 total revenues of $4.0 billion
Q4 and FY2024 total revenues up 4.0%
year-over-year and up 3.5% year-over-year, respectively
Q4 Clear Aligner volumes up 1.9%
sequentially, and up 6.1% year-over-year
Q4 Systems and Services revenues up 5.2%
sequentially, and up 14.9% year-over-year
- 2024 total revenues of $4.0 billion, Clear Aligner revenues of
$3.2 billion and Systems and Services revenues of $768.9
million
- 2024 revenues were unfavorably impacted by foreign exchange of
approximately $38.5 million compared to 2023(1)
- 2024 operating margin of 15.2%, non-GAAP operating margin of
21.8%, and diluted net income per share of $5.62, non-GAAP diluted
net income per share of $9.33
- 2024 operating margin was unfavorably impacted by foreign
exchange of approximately 0.7 points compared to 2023(1)
- Repurchased $352.9 million of common stock in 2024
- Q4'24 total revenues of $995.2 million, and diluted net income
per share of $1.39, non-GAAP diluted net income per share of
$2.44
- Q4’24 diluted net income per share was unfavorably impacted by
a stronger U.S. dollar, which amounted to approximately $0.14 per
diluted share due to net foreign exchange losses related to the
revaluation of certain balance sheet accounts
- Q4'24 revenues were favorably impacted by foreign exchange of
approximately $0.8 million sequentially and unfavorably impacted by
approximately $0.9 million year-over-year(1)
- Q4'24 restructuring and other charges of $37.0 million,
primarily related to post-employment benefits
Align Technology, Inc. (Nasdaq: ALGN), a leading global medical
device company that designs, manufactures, and sells the
Invisalign® System of clear aligners, iTero™ intraoral scanners,
and exocad™ CAD/CAM software for digital orthodontics and
restorative dentistry, today reported financial results for the
fourth quarter ("Q4'24") and year ended December 31, 2024 ("2024").
Q4'24 total revenues were $995.2 million, up 1.8% sequentially and
up 4.0% year-over-year. Q4'24 total revenues were favorably
impacted by foreign exchange of approximately $0.8 million or 0.1%
sequentially and unfavorably impacted by approximately $0.9 million
or 0.1% year-over-year.(1) Q4'24 Clear Aligner revenues were $794.3
million, up 0.9% sequentially and up 1.6% year-over-year. Q4'24
Clear Aligner revenues were favorably impacted by foreign exchange
of approximately $0.7 million or 0.1% sequentially and unfavorably
impacted by approximately $0.7 million or 0.1% year-over-year.(1)
Q4'24 Clear Aligner volume was up 1.9% sequentially and up 6.1%
year-over-year. Q4'24 Imaging Systems and CAD/CAM Services revenues
were $200.9 million, up 5.2% sequentially and up 14.9%
year-over-year. Q4'24 Imaging Systems and CAD/CAM Services revenues
were favorably impacted by foreign exchange of approximately $0.1
million or flat sequentially and unfavorably impacted by
approximately $0.2 million or 0.1% year-over-year.(1) Q4'24
operating income was $144.1 million resulting in an operating
margin of 14.5%. Q4'24 operating margin was favorably impacted by
foreign exchange of approximately 0.1 points sequentially and
unfavorably impacted by approximately 0.2 points year-over-year.(1)
Q4'24 net income was $103.8 million, or $1.39 per diluted share.
Q4’24 diluted net income per share was unfavorably impacted by a
stronger U.S. dollar, which amounted to approximately $0.14 per
diluted share due to net foreign exchange losses related to the
revaluation of certain balance sheet accounts. On a non-GAAP basis,
Q4'24 net income was $181.6 million, or $2.44 per diluted share.
During Q4'24, we incurred a total of $37.0 million of restructuring
and other charges, primarily related to post-employment
benefits.
2024 total revenues of $4.0 billion were unfavorably impacted by
foreign exchange of approximately $38.5 million or 1.0% compared to
2023.(1) 2024 Clear Aligner revenues of $3.2 billion were
unfavorably impacted by foreign exchange of approximately $31.0
million or 1.0% compared to 2023.(1) 2024 Imaging Systems and
CAD/CAM Services revenues of $768.9 million were unfavorably
impacted by foreign exchange of approximately $7.5 million or 1.0%
compared to 2023.(1)
Commenting on Align's Q4'24 and 2024 results, Align Technology
President and CEO Joe Hogan said, “I am pleased to report that Q4
total revenues, Clear Aligner volumes, and Systems and Services
revenues were in line with our Q4 outlook and both GAAP and
non-GAAP operating margins were better than our Q4 outlook. Q4
Clear Aligner ASPs were lower than our Q4 outlook due primarily to
the impact from unfavorable foreign exchange from the strengthening
U.S. dollar against major currencies from late October through
December. On a year-over-year basis, fourth quarter revenues of
$995.2 million increased 4.0%, reflecting 14.9% growth from Systems
and Services revenues and 1.6% growth from Clear Aligner revenues.
On a year-over-year basis, Clear Aligner volumes grew 6.1%, driven
by increased shipments across all regions—with strength in the
EMEA, APAC, and LATAM regions, and stability in North America. From
a channel perspective, Clear Aligner volumes in the ortho and
general practitioner dentist (“GP”) channels were up on a
year-over-year basis with the number of submitters and utilization
amongst the highest in the past few years. On a sequential basis,
fourth quarter revenue growth of 1.8% reflects continued momentum
from sales of our iTero Lumina™ scanners and increased Invisalign®
Clear Aligner volumes in the EMEA region, especially from teens and
growing patients, as well as growth from the LATAM region - across
Orthodontists and GP Dentists, offset by Clear Aligner seasonality
in APAC, mostly in China, which had a strong teen quarter in Q3.
For Americas, Q4 Clear Aligner volumes reflect a seasonally soft
orthodontic channel, offset somewhat by strength in the GP channel
in the adult segment. For the full year fiscal 2024, total revenues
of $4.0 billion and Clear Aligner volumes of 2.5 million cases were
both up 3.5% year-over-year. As of Q4'24, we achieved several
cumulative milestones including 271.6 thousand active Invisalign®
trained practitioners, 19.5 million Invisalign patients—including
over 5.6 million teens and kids, and over 2 billion clear aligners
manufactured worldwide.”
Financial Summary - Fourth Quarter
Fiscal 2024
Q4'24
Q3'24
Q4'23
Q/Q Change
Y/Y Change
Clear Aligner Shipments*
628,730
617,220
592,635
+1.9%
+6.1%
GAAP
Net Revenues
$995.2M
$977.9M
$956.7M
+1.8%
+4.0%
Clear Aligner
$794.3M
$786.8M
$781.9M
+0.9%
+1.6%
Imaging Systems and CAD/CAM Services
$200.9M
$191.0M
$174.8M
+5.2%
+14.9%
Net Income
$103.8M
$116.0M
$124.0M
(10.5)%
(16.3)%
Diluted EPS
$1.39
$1.55
$1.64
$(0.16)
$(0.25)
Non-GAAP
Net Income
$181.6M
$175.6M
$183.5M
+3.4%
(1.0)%
Diluted EPS
$2.44
$2.35
$2.42
+$0.09
+$0.02
Financial Summary - Fiscal
2024
2024
2023
Y/Y Change
Clear Aligner Shipments*
2,493,735
2,408,520
+3.5%
GAAP
Net Revenues
$3,999.0M
$3,862.3M
+3.5%
Clear Aligner
$3,230.1M
$3,199.3M
+1.0%
Imaging Systems and CAD/CAM Services
$768.9M
$662.9M
+16.0%
Net Income
$421.4M
$445.1M
(5.3)%
Diluted EPS
$5.62
$5.81
$(0.19)
Non-GAAP
Net Income
$699.7M
$659.2M
+6.1%
Diluted EPS
$9.33
$8.61
+$0.72
Changes and percentages are based on
actual values. Certain tables may not sum or recalculate due to
rounding.
*Clear Aligner shipments include Doctor
Subscription Program Touch-Up cases.
As of December 31, 2024, we had $1,043.9 million in cash and
cash equivalents compared to over $1,041.9 million as of September
30, 2024. As of December 31, 2024, we had $300.0 million available
under a revolving line of credit.
During the quarter, we completed a $30.0 million equity
investment in Smile Doctors, the largest ortho-focused dental
support organization in the U.S.
Commenting on Align's fourth quarter and fiscal 2024 results,
Align Technology CFO and EVP Global Finance, John Morici said,
"Overall, I am pleased with our fourth quarter and fiscal 2024
results, particularly the year-over-year Clear Aligner volume
growth, the record number of submitters, the continued momentum
from our Systems and Services business, and our operating margin
improvement. After repurchasing $353 million of Align common stock
during 2024, we concluded the year with no debt and approximately
$1,044 million in cash, and cash equivalents. Our goal, as always,
is to deliver value to our shareholders."
Recent Highlights
- On January 21, 2025, Align was listed as one of the top 300
companies worldwide that were granted U.S. patents last year on the
2025 Patent 300® list, with Align ranked at #263 with 164 U.S.
patents granted in 2024. For reference, Align ranked #270 the year
before.
- On January 16, 2025, we announced that Patrick Mahomes,
quarterback for the National Football League’s Kansas City Chiefs,
joined the Invisalign Smile Squad as an ambassador for the brand.
As part of the multi-year agreement, Patrick will share his
Invisalign® treatment experience with fans in a multi-channel
campaign.
Q4'24 Highlights
- In December, the Invisalign® Palatal Expander System made the
cover of the Journal of Clinical Orthodontics. The featured
article, “Protocol for the Invisalign Palatal Expander” written by
Dr. Jonathan L. Nicozisis, DMD, MS., concluded that Align
Technology's Invisalign Palatal Expander System is an effective
treatment, with the potential to offer an improved patient
experience and better clinical outcomes.
- On November 20, we announced that Align received the CE Mark
under the Medical Device Regulation (MDR 2017/745) to market the
Invisalign® Palatal Expander System in most of Europe and also
completed registration with the Medicines and Healthcare products
Regulatory Agency for the United Kingdom and overseas
territories.
- On November 12, we shared highlights from the 2024 Invisalign
Ortho Summit, Align’s premier clinical education and peer-to-peer
networking experience designed to help doctors transform and grow
their practice with Invisalign® clear aligners, iTero scanners, and
the Align™ Digital Platform. More than 1,000 doctors and practice
team members from every region came together, alongside Align and
peer-to-peer speakers, to share treatment and workflow best
practices, hands-on experiences to sharpen clinical skills, and
practice growth and marketing strategies.
- On November 4, we announced the opening of Align's 2025 Annual
Research Award Program to support clinical and scientific dental
research in universities across the globe. This year, up to
$300,000 will be awarded to university faculty for scientific and
technological research initiatives to advance patient care in the
fields of orthodontics and dentistry. Align Technology’s Research
Award Program has funded approximately $3.75 million in research
since the program’s inception in 2010.
- On October 23, we announced Frank Quinn, formerly Align vice
president and general manager of the United States, rejoined the
company as executive vice president and managing director of the
Americas region.
- On October 23, we announced the release of the next innovation
of Invisalign Smile Architect™ software, now with Multiple
Treatment Plans allowing doctors to visually compare and modify
orthodontic only and ortho restorative treatment plans
side-by-side. The Multiple Treatment Plans are integrated into
ClinCheck® treatment planning software for doctors to visually
compare, review, and choose the best treatment option for each
patient.
- On October 23, we announced iTero intraoral scanner product
innovations that provide a versatile overall solution for general
practitioner (“GP”) dentists that enhance digital dentistry
workflows and integrated treatment options in oral health,
restorative, and ortho treatment in general dentistry
practices.
-
On October 14, we announced that Align's Invisalign® Palatal
Expander System has been listed on the Singapore Medical Device
Register as a class B medical device. The Invisalign Palatal
Expander System is now commercially available in Singapore and more
recently in Hong Kong for broad patient applicability, including
growing children, teens and adults (with surgery or other
techniques).
Q4'24 Stock Repurchases
- During Q4'24, we initiated a plan to repurchase $275.0 million
of our common stock through open market repurchases. As of December
31, 2024 we had purchased approximately 0.9 million shares at an
average price of $222.94 per share for an aggregate of $202.9
million. Purchase of the remaining $72.1 million of the $275.0
million was completed in January 2025.
- As of January 31, 2025, $225.0 million remains available for
repurchases of our common stock under our stock repurchase program
approved in January 2023.
Business Trends
Commentary
Align provides the following context around Clear Aligner
pricing and potential new tariffs:
Clear Aligner Pricing Commentary:
-
On March 1, 2025, we will raise the list price of Clear Aligners
by approximately 3% on average in the Americas and EMEA regions. At
the same time, we will remove the $10–$15 per order processing fee
for new Clear Aligner orders, Clear Aligner refinement orders, and
non-DSP Vivera™ cases ordered. We expect the net effect from these
two actions on ASPs to be zero for 2025.
Tariffs Commentary:
-
We currently manufacture clear aligners in Mexico and ship them
to the U.S. primarily for our U.S. customers with the remainder
eventually shipping to other international locations. The
U.S./Mexico tariff situation remains very fluid, and we are unable
to predict whether new tariffs will go into effect in the future.
We are monitoring events closely. Our clear aligner COGS include
material, labor, overhead, and freight costs. We expect an
incremental tariff, if implemented, to be applied to transfer
prices from Mexico. These transfer prices would not include
treatment planning costs, freight, other overhead, etc. Align’s
global operations have evolved significantly over the past several
years and we have greater flexibility to support our global
business. However, assuming a 25% tariff on goods originating in
Mexico, it is still more economical to ship clear aligners to the
U.S. from Mexico, due to a variety of factors including the
incremental additional freight costs incurred were we to ship from
our Polish facility. Regarding China, we currently manufacture our
products in China for the benefit of our customers in China.
Fiscal 2025 Business
Outlook
With this as a backdrop, assuming no circumstances occur beyond
our control, including foreign exchange and new tariffs, for Q1'25
and fiscal 2025 we provide the following outlook:
Q1’25:
- We expect Q1 worldwide revenues to be in the range of $965M to
$985M, down sequentially from Q4, primarily due to the impact from
unfavorable foreign exchange at current spot rates, and lower
capital equipment sales, reflecting historical Q1 seasonality.
- We expect Q1 Clear Aligner volume to be up slightly
sequentially and expect Q1 Clear Aligner ASPs to be down
sequentially, primarily due to unfavorable foreign exchange at
current spot rates, as well as continued product mix shift to
non-comprehensive clear aligners.
- In addition to seasonality, we expect Q1 Systems and Services
revenues to be down sequentially due to the timing of the
commercial availability of our iTero Lumina™ scanner with
restorative software, which is expected at the end of March.
- We expect our Q1’25 GAAP operating margin to be below Q1’24
GAAP operating margin by approximately 2 points, primarily due to
unfavorable foreign exchange at current spot rates.
- We expect our Q1’25 non-GAAP operating margin to be below Q1’24
non-GAAP operating margin by approximately 1 point, primarily due
to unfavorable foreign exchange at current spot rates.
For fiscal 2025:
- We expect 2025 year-over-year revenue growth to be low single
digits, which reflects approximately 2 points of unfavorable
foreign exchange at current spot rates.
- We expect 2025 Clear Aligner volume growth to be up
approximately mid-single digits year-over-year, compared to up 3.5%
year-over-year in 2024.
- We expect 2025 Clear Aligner ASPs to be down year-over-year due
to unfavorable foreign exchange at current spot rates and continued
product mix shift to non-comprehensive clear aligners.
- We expect 2025 Systems and Services year-over-year revenues to
grow faster than Clear Aligner revenues.
- We expect fiscal 2025 GAAP operating margin to be approximately
2 points above 2024 GAAP operating margin, and we expect 2025
non-GAAP operating margin to be approximately 22.5%, which both
reflect the impact of unfavorable foreign exchange at current spot
rates, partially offset by the benefits from restructuring actions
we took in Q4 to improve profitability and give us margin accretion
in 2025, even as we scale our next generation direct 3D printing
fabrication manufacturing.
- We expect our investments in capital expenditures for fiscal
2025 to be between $100M and $150M. Capital expenditures primarily
relate to building construction and improvements as well as
manufacturing capacity in support of our continued expansion.
Align Web Cast and Conference
Call
We will host a conference call today, February 5, 2025, at 4:30
p.m. EST, 2:30 p.m. MST, to review our fourth quarter and full year
2024 results, discuss future operating trends, and our business
outlook. The conference call will also be webcast live via the
Internet. To access the webcast, go to the "Events &
Presentations" section under Company Information on Align's
Investor Relations website at http://investor.aligntech.com. To
access the conference call, participants may register for the call
at https://edge.media-server.com/mmc/p/jkuu8qox/. Once registered,
participants will receive an email with dial-in number and unique
PIN number to access the live event. An archived audio webcast will
be available 2 hours after the call's conclusion and will remain
available for one month.
About Non-GAAP Financial
Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with generally accepted
accounting principles in the United States ("GAAP"), we may provide
investors with certain non-GAAP financial measures which may
include constant currency net revenues, constant currency gross
profit, constant currency gross margin, constant currency income
from operations, constant currency operating margin, non-GAAP gross
profit, non-GAAP gross margin, non-GAAP total operating expenses,
non-GAAP income from operations, non-GAAP operating margin,
non-GAAP net income before provision for income taxes, non-GAAP
provision for income taxes, non-GAAP effective tax rate, non-GAAP
net income and/or non-GAAP diluted net income per share, which
excludes certain items that may not be indicative of our
fundamental operating performance including, foreign currency
exchange rate impacts and discrete cash and non-cash charges or
gains that are included in the most directly comparable GAAP
measure. Unless otherwise indicated, when we refer to non-GAAP
financial measures they will exclude the effects of stock-based
compensation, amortization of certain acquired intangibles,
restructuring and other charges, acquisition-related costs and
associated tax impacts.
Our management believes that the use of certain non-GAAP
financial measures provides meaningful supplemental information
regarding our recurring core operating performance. We believe that
both management and investors benefit from referring to these
non-GAAP financial measures in assessing our performance and when
planning, forecasting, and analyzing future periods. We believe
these non-GAAP financial measures are useful to investors both
because (1) they allow for greater transparency with respect to key
metrics used by management in its financial and operational
decision-making and (2) they are used by our institutional
investors and the analyst community to help them analyze the
performance of our business.
There are limitations to using non-GAAP financial measures as
they are not prepared in accordance with GAAP and may be different
from non-GAAP financial measures used by other companies. The
non-GAAP financial measures are limited in value because they
exclude certain items that may have a material impact upon our
reported financial results. In addition, they are subject to
inherent limitations as they reflect the exercise of judgments by
management about which charges are excluded from the non-GAAP
financial measures. We compensate for these limitations by
analyzing current and future results on a GAAP as well as a
non-GAAP basis and also by providing GAAP measures in our public
disclosures. The presentation of non-GAAP financial information is
meant to be considered in addition to, not as a substitute for or
in isolation from, the directly comparable financial measures
prepared in accordance with GAAP. We urge investors to review the
reconciliation of our GAAP financial measures to the comparable
non-GAAP financial measures included herein and not to rely on any
single financial measure to evaluate our business. For more
information on these non-GAAP financial measures, please see the
tables captioned "Unaudited GAAP to Non-GAAP Reconciliation."
About Align Technology,
Inc.
Align Technology designs and manufactures the Invisalign®
System, the most advanced clear aligner system in the world, iTero™
intraoral scanners and services, and exocad™ CAD/CAM software.
These technology building blocks enable enhanced digital
orthodontic and restorative workflows to improve patient outcomes
and practice efficiencies for over 271.6 thousand doctor customers
and are key to accessing Align’s 600 million consumer market
opportunity worldwide. Over the past 27 years, Align has helped
doctors treat approximately 19.5 million patients with the
Invisalign System and is driving the evolution in digital dentistry
through the Align™ Digital Platform, our integrated suite of
unique, proprietary technologies and services delivered as a
seamless, end-to-end solution for patients and consumers,
orthodontists and GP dentists, and lab/partners. Visit
www.aligntech.com for more information.
For additional information about the Invisalign System or to
find an Invisalign doctor in your area, please visit
www.invisalign.com. For additional information about the iTero
digital scanning system, please visit www.itero.com. For additional
information about exocad dental CAD/CAM offerings and a list of
exocad reseller partners, please visit www.exocad.com.
Invisalign, iTero, exocad, Align, Align Digital Platform, and
iTero Lumina are trademarks of Align Technology, Inc.
Forward-Looking
Statements
This news release, including the tables below, contains
forward-looking statements, including statements of beliefs and
expectations regarding our ability to successfully control our
business and operations and pursue our strategic growth drivers,
our expectations of the impact of ASPs from pricing adjustments,
our expectations regarding possible tariffs, our expectations for
the commercial availability of our products, our expectations for
market opportunities, our expectations for worldwide revenues,
Clear Aligner volume, Clear Aligner ASP, Systems and Services
revenues and GAAP and non-GAAP operating margin, and 2025 capital
expenditures. Forward-looking statements contained in this press
release relating to expectations about future events or results are
based upon information available to Align as of the date hereof.
Readers are cautioned that these forward-looking statements reflect
our best judgments based on currently known facts and circumstances
and are subject to risks, uncertainties, and assumptions that are
difficult to predict. As a result, actual results may differ
materially and adversely from those expressed in any
forward-looking statement.
Factors that might cause such a difference include, but are not
limited to:
- macroeconomic conditions, including fluctuations in currency
exchange rates, inflation, higher interest rates, market
volatility, threats or actual imposition of tariffs, threats of or
actual economic slowdowns or recessions;
- customer and consumer purchasing behavior and changes in
consumer spending habits;
- the economic and geopolitical ramifications of the military
conflicts in the Middle East and Ukraine, including sanctions,
retaliatory sanctions, nationalism, supply chain disruptions and
other consequences, any of which may or will continue to adversely
impact our operations and assets and our research and development
activities;
- variations in our product mix, product adoption and selling
prices regionally and globally;
- competition from existing and new competitors;
- declines in, or the slowing of growth of, sales of our clear
aligners or intraoral scanners domestically and/or internationally
and the impact either would have on the adoption of Invisalign
products;
- the timing and availability and cost of raw materials,
components, products and other shipping and supply chain
constraints, disruptions or costs;
- unexpected or rapid changes in the growth or decline of our
domestic and/or international markets;
- rapidly evolving and groundbreaking advances that fundamentally
alter the dental industry or the way new and existing customers
market and provide products and services to consumers;
- the ability to protect and enforce our intellectual property
rights;
- continued compliance with regulatory requirements;
- the willingness and ability of our customers to maintain and/or
increase product utilization;
- the possibility that the development and release of new
products or enhancements to existing products do not proceed in
accordance with the anticipated timeline or may themselves contain
bugs, errors or defects in software or hardware requiring
remediation and that the market for the sale of these new or
enhanced products may not develop as expected;
- a tougher consumer demand environment in China generally,
especially for manufacturers and service providers whose
headquarters or primary operations are not based in China;
- the risks relating to our ability to sustain or increase
profitability or revenue growth in future periods (or minimize
declines) while controlling expenses;
- expansion of our business and products;
- the impact of excess or constrained capacity at our
manufacturing and treat operations facilities and pressure on our
internal systems and personnel;
- the compromise of our systems or networks, including any
customer and/or patient data contained therein, for any
reason;
- the timing of case submissions from our doctor customers within
a quarter as well as an increased manufacturing costs per
case;
- foreign operational, political, military and other risks
relating to our operations; and
- the loss of key personnel, labor shortages or work stoppages
for us or our suppliers.
The foregoing and other risks are detailed from time to time in
our periodic reports filed with the Securities and Exchange
Commission, including, but not limited to, our Annual Report on
Form 10-K for the year ended December 31, 2023, which was filed
with the Securities and Exchange Commission ("SEC") on February 28,
2024 and our latest Quarterly Report on Form 10-Q for the quarter
ended September 30, 2024, which was filed with the SEC on November
5, 2024. Align undertakes no obligation to revise or update
publicly any forward-looking statements for any reason.
ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Net revenues
$
995,219
$
956,726
$
3,999,012
$
3,862,260
Cost of net revenues
298,278
287,202
1,199,853
1,155,397
Gross profit
696,941
669,524
2,799,159
2,706,863
Operating expenses:
Selling, general and administrative
424,971
402,503
1,763,193
1,703,379
Research and development
94,878
82,160
364,202
346,830
Restructuring and other charges
33,168
13,316
33,168
13,316
Legal settlement loss
(225
)
—
30,968
—
Total operating expenses
552,792
497,979
2,191,531
2,063,525
Income from operations
144,149
171,545
607,628
643,338
Interest income and other income
(expense), net:
Interest income
8,522
4,978
20,218
17,258
Other income (expense), net
(11,894
)
(3,643
)
(18,887
)
(19,392
)
Total interest income and other income
(expense), net
(3,372
)
1,335
1,331
(2,134
)
Net income before provision for income
taxes
140,777
172,880
608,959
641,204
Provision for income taxes
36,970
48,866
187,597
196,151
Net income
$
103,807
$
124,014
$
421,362
$
445,053
Net income per share:
Basic
$
1.39
$
1.64
$
5.63
$
5.82
Diluted
$
1.39
$
1.64
$
5.62
$
5.81
Shares used in computing net income per
share:
Basic
74,419
75,703
74,877
76,426
Diluted
74,465
75,802
74,993
76,568
ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
December 31,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,043,887
$
937,438
Marketable securities, short-term
—
35,304
Accounts receivable, net
995,685
903,424
Inventories
254,287
296,902
Prepaid expenses and other current
assets
198,582
273,550
Total current assets
2,492,441
2,446,618
Marketable securities, long-term
—
8,022
Property, plant and equipment, net
1,271,134
1,290,863
Operating lease right-of-use assets,
net
113,376
117,999
Goodwill
442,630
419,530
Intangible assets, net
103,488
82,118
Deferred tax assets
1,557,372
1,590,045
Other assets
234,159
128,682
Total assets
$
6,214,600
$
6,083,877
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
108,693
$
113,125
Accrued liabilities
598,188
525,780
Deferred revenues
1,331,146
1,427,706
Total current liabilities
2,038,027
2,066,611
Income tax payable
96,466
116,744
Operating lease liabilities
88,214
96,968
Other long-term liabilities
139,908
173,065
Total liabilities
2,362,615
2,453,388
Total stockholders’ equity
3,851,985
3,630,489
Total liabilities and stockholders’
equity
$
6,214,600
$
6,083,877
ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended
December 31,
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES
Net cash provided by operating
activities
$
738,231
$
785,776
CASH FLOWS FROM INVESTING
ACTIVITIES
Net cash used in investing activities
(254,912
)
(195,943
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Net cash used in financing activities
(355,722
)
(598,340
)
Effect of foreign exchange rate changes on
cash, cash equivalents, and restricted cash
(21,153
)
4,671
Net (decrease) increase in cash, cash
equivalents, and restricted cash
106,444
(3,836
)
Cash, cash equivalents, and restricted
cash at beginning of the period
938,519
942,355
Cash, cash equivalents, and restricted
cash at end of the period
$
1,044,963
$
938,519
ALIGN TECHNOLOGY, INC.
INVISALIGN BUSINESS METRICS
Q1
Q2
Q3
Q4
Fiscal
Q1
Q2
Q3
Q4
Fiscal
2023
2023
2023
2023
2023
2024
2024
2024
2024
2024
Number of Invisalign Trained Doctors
Cases Were Shipped To
82,730
83,440
85,195
83,700
125,845
83,510
86,135
87,380
85,685
130,370
Invisalign Trained Doctor Utilization
Rates*
North America
9.5
9.8
9.6
9.1
27.6
9.5
9.9
9.7
9.3
28.0
North American Orthodontists
28.7
29.2
28.8
25.9
94.5
28.2
28.8
28.3
26.3
95.0
North American GP Dentists
4.9
5.2
4.9
5.0
14.0
4.9
5.3
5.0
5.1
14.3
International
6.2
6.6
6.1
6.5
16.3
6.3
6.7
6.2
6.8
16.2
Total Utilization Rates**
7.1
7.5
7.1
7.1
19.1
7.2
7.5
7.1
7.3
19.1
Clear Aligner Revenue Per Case
Shipment***
$
1,335
$
1,335
$
1,320
$
1,320
$
1,330
$
1,350
$
1,295
$
1,275
$
1,265
$
1,295
* # of cases shipped / # of doctors to
whom cases were shipped
** LATAM utilization rate is not
separately disclosed but included in the total utilization
rates
*** Clear Aligner revenues / Case
shipments
Note: During the third quarter of 2023, we
began including Touch Up cases revenues that were previously
included in
Non-Case revenues and have recast business
metrics for the periods presented above accordingly.
ALIGN TECHNOLOGY, INC.
STOCK-BASED COMPENSATION
(in thousands)
Q1
Q2
Q3
Q4
Fiscal
Q1
Q2
Q3
Q4
Fiscal
2023
2023
2023
2023
2023
2024
2024
2024
2024
2024
Stock-based Compensation (SBC):
SBC included in Gross Profit
$
1,807
$
1,901
$
1,974
$
1,780
$
7,462
$
2,064
$
2,582
$
3,070
$
(721
)
$
6,995
SBC included in Operating Expenses
35,928
35,959
37,628
37,049
146,564
36,724
44,446
45,969
39,569
166,708
Total SBC
$
37,735
$
37,860
$
39,602
$
38,829
$
154,026
$
38,788
$
47,028
$
49,039
$
38,848
$
173,703
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP
RECONCILIATION+
CONSTANT CURRENCY NET REVENUES
(in thousands, except percentages)
Sequential constant currency analysis:
Three Months Ended
December 31,
2024
September 30,
2024
Impact % of
Revenue
GAAP net revenues
$
995,219
$
977,872
Constant currency impact (1)
(783
)
(0.1
)%
Constant currency net revenues
(1)
$
994,436
GAAP Clear Aligner net revenues
$
794,289
$
786,844
Clear Aligner constant currency impact
(1)
(719
)
(0.1
)%
Clear Aligner constant currency net
revenues (1)
$
793,570
GAAP Imaging Systems and CAD/CAM
Services net revenues
$
200,930
$
191,028
Imaging Systems and CAD/CAM Services
constant currency impact (1)
(64
)
—
%
Imaging Systems and CAD/CAM Services
constant currency net revenues (1)
$
200,866
Year-over-year constant currency
analysis:
Three Months Ended
December 31,
2024
2023
Impact % of
Revenue
GAAP net revenues
$
995,219
$
956,726
Constant currency impact (1)
918
0.1
%
Constant currency net revenues
(1)
$
996,137
GAAP Clear Aligner net revenues
$
794,289
$
781,912
Clear Aligner constant currency impact
(1)
706
0.1
%
Clear Aligner constant currency net
revenues (1)
$
794,995
GAAP Imaging Systems and CAD/CAM
Services net revenues
$
200,930
$
174,814
Imaging Systems and CAD/CAM Services
constant currency impact (1)
212
0.1
%
Imaging Systems and CAD/CAM Services
constant currency net revenues (1)
$
201,142
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
CONTINUED+
CONSTANT CURRENCY NET REVENUES
CONTINUED
(in thousands, except percentages)
Current year versus prior year constant
currency analysis:
Year Ended December
31,
2024
2023
Impact % of Revenue
GAAP net revenues
$
3,999,012
$
3,862,260
Constant currency impact (1)
38,460
1.0
%
Constant currency net revenues
(1)
$
4,037,472
GAAP Clear Aligner net revenues
$
3,230,122
$
3,199,329
Clear Aligner constant currency impact
(1)
31,002
1.0
%
Clear Aligner constant currency net
revenues (1)
$
3,261,124
GAAP Imaging Systems and CAD/CAM
Services net revenues
$
768,890
$
662,931
Imaging Systems and CAD/CAM Services
constant currency impact (1)
7,458
1.0
%
Imaging Systems and CAD/CAM Services
constant currency net revenues (1)
$
776,348
Note:
(1)
We define constant currency net revenues
as total net revenues excluding the effect of foreign exchange rate
movements and use it to determine the percentage for the constant
currency impact on net revenues on a sequential, year-over-year and
current year versus prior year basis. Constant currency impact in
dollars is calculated by translating the current period GAAP net
revenues using the foreign currency exchange rates that were in
effect during the previous comparable period and subtracting it by
the current period GAAP net revenues. The percentage for the
constant currency impact on net revenues is calculated by dividing
the constant currency impact in dollars (numerator) by constant
currency net revenues in dollars (denominator).
(+)
Changes and percentages are based on
actual values. Certain tables may not sum or recalculate due to
rounding. Refer to "About Non-GAAP Financial Measures" section of
press release.
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
CONTINUED+
CONSTANT CURRENCY GROSS PROFIT AND GROSS
MARGIN
(in thousands, except percentages)
Sequential constant currency analysis:
Three Months Ended
December 31,
2024
September 30,
2024
GAAP gross profit
$
696,941
$
681,774
Constant currency impact on net
revenues
(783
)
Constant currency gross profit
$
696,158
Three Months Ended
December 31,
2024
September 30,
2024
GAAP gross margin
70.0
%
69.7
%
Gross margin constant currency impact
(1)
0.0
Constant currency gross margin
(1)
70.0
%
Year-over-year constant currency
analysis:
Three Months Ended
December 31,
2024
2023
GAAP gross profit
$
696,941
$
669,524
Constant currency impact on net
revenues
918
Constant currency gross profit
$
697,859
Three Months Ended
December 31,
2024
2023
GAAP gross margin
70.0
%
70.0
%
Gross margin constant currency impact
(1)
0.0
Constant currency gross margin
(1)
70.1
%
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
CONTINUED+
CONSTANT CURRENCY GROSS PROFIT AND GROSS
MARGIN
(in thousands, except percentages)
Current year versus prior year constant
currency analysis:
Year Ended December
31,
2024
2023
GAAP gross profit
$
2,799,159
$
2,706,863
Constant currency impact on net
revenues
38,466
Constant currency gross profit
$
2,837,625
Year Ended December
31,
2024
2023
GAAP gross margin
70.0
%
70.1
%
Constant currency impact on net
revenues(1)
0.3
Constant currency gross
margin(1)
70.3
%
Note:
(1)
We define constant currency gross margin
as constant currency gross profit as a percentage of constant
currency net revenues. Gross margin constant currency impact is the
increase or decrease in constant currency gross margin compared to
the GAAP gross margin.
(+)
Changes and percentages are based on
actual values. Certain tables may not sum or recalculate due to
rounding. Refer to "About Non-GAAP Financial Measures" section of
press release.
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
CONTINUED+
CONSTANT CURRENCY INCOME FROM OPERATIONS
AND OPERATING MARGIN
(in thousands, except percentages)
Sequential constant currency analysis:
Three Months Ended
December 31,
2024
September 30,
2024
GAAP income from operations
$
144,149
$
162,298
Income from operations constant currency
impact (1)
(778
)
Constant currency income from
operations (1)
$
143,371
Three Months Ended
December 31,
2024
September 30,
2024
GAAP operating margin
14.5
%
16.6
%
Operating margin constant currency impact
(2)
(0.1
)
Constant currency operating margin
(2)
14.4
%
Year-over-year constant currency
analysis:
Three Months Ended
December 31,
2024
2023
GAAP income from operations
$
144,149
$
171,545
Income from operations constant currency
impact (1)
1,680
Constant currency income from
operations (1)
$
145,829
Three Months Ended
December 31,
2024
2023
GAAP operating margin
14.5
%
17.9
%
Operating margin constant currency impact
(2)
0.2
Constant currency operating margin
(2)
14.6
%
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
CONTINUED+
CONSTANT CURRENCY INCOME FROM OPERATIONS
AND OPERATING MARGIN CONTINUED
(in thousands, except percentages)
Current year versus prior year constant
currency analysis:
Year Ended December
31,
2024
2023
GAAP income from operations
$
607,628
$
643,338
Income from operations constant currency
impact (1)
34,379
Constant currency income from
operations (1)
$
642,007
Year Ended December
31,
2024
2023
GAAP operating margin
15.2
%
16.7
%
Operating margin constant currency impact
(2)
0.7
Constant currency operating margin
(2)
15.9
%
Notes:
(1)
We define constant currency income from
operations as GAAP income from operations excluding the effect of
foreign exchange rate movements for GAAP net revenues and operating
expenses on a sequential, year-over-year and current year versus
prior year basis. Constant currency impact in dollars is calculated
by translating the current period GAAP net revenues and operating
expenses using the foreign currency exchange rates that were in
effect during the previous comparable period and subtracting it by
the current period GAAP net revenues and operating expenses.
(2)
We define constant currency operating
margin as constant currency income from operations as a percentage
of constant currency net revenues. Operating margin constant
currency impact is the increase or decrease in constant currency
operating margin compared to the GAAP operating margin.
(+)
Changes and percentages are based on
actual values. Certain tables may not sum or recalculate due to
rounding. Refer to "About Non-GAAP Financial Measures" section of
press release.
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
CONTINUED+
FINANCIAL MEASURES OTHER THAN CONSTANT
CURRENCY
(in thousands, except per share data)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
GAAP gross profit
$
696,941
$
669,524
$
2,799,159
$
2,706,863
Stock-based compensation
(721
)
1,780
6,995
7,462
Amortization of intangibles (1)
3,699
2,773
14,803
11,182
Restructuring charges (2)
3,823
673
3,823
673
Other Non-GAAP items (3)
1,410
—
1,410
—
Non-GAAP gross profit
$
705,152
$
674,750
$
2,826,190
$
2,726,180
GAAP gross margin
70.0
%
70.0
%
70.0
%
70.1
%
Non-GAAP gross margin
70.9
%
70.5
%
70.7
%
70.6
%
GAAP total operating expenses
$
552,792
$
497,979
$
2,191,531
$
2,063,525
Stock-based compensation
(39,569
)
(37,049
)
(166,708
)
(146,564
)
Amortization of intangibles (1)
(879
)
(866
)
(3,497
)
(3,497
)
Restructuring and other charges (2)
(33,168
)
(13,316
)
(32,722
)
(13,316
)
Legal settlement loss
225
—
(30,968
)
—
Other Non-GAAP items (3)
(4,676
)
—
(4,676
)
—
Non-GAAP total operating
expenses
$
474,725
$
446,748
$
1,952,960
$
1,900,148
GAAP income from operations
$
144,149
$
171,545
$
607,628
$
643,338
Stock-based compensation
38,848
38,829
173,703
154,026
Amortization of intangibles (1)
4,578
3,639
18,300
14,679
Restructuring and other charges (2)
36,991
13,989
36,545
13,989
Legal settlement loss
(225
)
—
30,968
—
Other Non-GAAP items (3)
6,086
—
6,086
—
Non-GAAP income from operations
$
230,427
$
228,002
$
873,230
$
826,032
GAAP operating margin
14.5
%
17.9
%
15.2
%
16.7
%
Non-GAAP operating margin
23.2
%
23.8
%
21.8
%
21.4
%
GAAP net income before provision for
income taxes
$
140,777
$
172,880
$
608,959
$
641,204
Stock-based compensation
38,848
38,829
173,703
154,026
Amortization of intangibles (1)
4,578
3,639
18,300
14,679
Restructuring and other charges (2)
36,991
13,989
36,545
13,989
Legal settlement loss
(225
)
—
30,968
—
Other Non-GAAP items (3)
6,086
—
6,086
—
Non-GAAP net income before provision
for income taxes
$
227,055
$
229,337
$
874,561
$
823,898
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
CONTINUED
FINANCIAL MEASURES OTHER THAN CONSTANT
CURRENCY CONTINUED
(in thousands, except per share data)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
GAAP provision for income taxes
$
36,970
$
48,866
$
187,597
$
196,151
Tax impact on non-GAAP adjustments
8,441
(2,998
)
(12,715
)
(31,415
)
Non-GAAP provision for income
taxes
$
45,411
$
45,868
$
174,882
$
164,736
GAAP effective tax rate
26.3
%
28.3
%
30.8
%
30.6
%
Non-GAAP effective tax rate
20.0
%
20.0
%
20.0
%
20.0
%
GAAP net income
$
103,807
$
124,014
$
421,362
$
445,053
Stock-based compensation
38,848
38,829
173,703
154,026
Amortization of intangibles (1)
4,578
3,639
18,300
14,679
Restructuring and other charges (2)
36,991
13,989
36,545
13,989
Legal settlement loss
(225
)
—
30,968
—
Other Non-GAAP items (3)
6,086
—
6,086
—
Tax impact on non-GAAP adjustments
(8,441
)
2,998
12,715
31,415
Non-GAAP net income
$
181,644
$
183,469
$
699,679
$
659,162
GAAP diluted net income per
share
$
1.39
$
1.64
$
5.62
$
5.81
Non-GAAP diluted net income per
share
$
2.44
$
2.42
$
9.33
$
8.61
Shares used in computing diluted net
income per share
74,465
75,802
74,993
76,568
Notes:
(1)
Amortization of intangible assets related
to certain acquisitions
(2)
During the fourth quarters of 2023 and
2024, we initiated restructuring plans to reduce headcount and
increase efficiencies across the organization and lower the overall
cost structure. Restructuring charges are primarily related to
severance and other post-employment one-time benefits.
(3)
Other Non-GAAP items from the fourth
quarter of 2024 primarily include settlements of various indirect
tax obligations related to prior years.
(+)
Changes and percentages are based on
actual values. Certain tables may not sum or recalculate due to
rounding. Refer to "About Non-GAAP Financial Measures" section of
press release.
ALIGN TECHNOLOGY, INC.
Q1 2025 OUTLOOK - GAAP TO NON-GAAP
RECONCILIATION
GAAP Operating Margin
Approximately 13.5%
Stock-based compensation
~4.5%
Amortization of intangibles (1)
~0.5%
Non-GAAP Operating Margin
Approximately 18.5%
ALIGN TECHNOLOGY, INC.
FISCAL 2025 OUTLOOK - GAAP TO NON-GAAP
RECONCILIATION
GAAP Operating Margin
Approximately 17.0%
Stock-based compensation
~5.0%
Amortization of intangibles (1)
~0.5%
Non-GAAP Operating Margin
Approximately 22.5%
(1)
Amortization of intangible assets related
to certain acquisitions
Refer to "About Non-GAAP Financial Measures" section of press
release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250204696984/en/
Align Technology Madelyn Valente
(909) 833-5839 mvalente@aligntech.com
Zeno Group Sarah Karlson (828)
551-4201 sarah.karlson@zenogroup.com
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