Q1'24 total revenues up 5.8%
year-over-year including revenue growth of 3.5% from Clear Aligners
and growth of 17.5% from Imaging Systems and CAD/CAM
Services
- Q1'24 total revenues of $997.4 million, increased 5.8%
year-over-year, and diluted net income per share of $1.39, non-GAAP
diluted net income per share of $2.14
- Q1'24 revenues were favorably impacted by foreign exchange of
approximately $10.0 million sequentially and unfavorably impacted
by approximately $4.8 million year-over-year(1)
- Q1'24 operating income of $154.1 million and operating margin
of 15.5%, non-GAAP operating margin of 19.8%
- Q1'24 GAAP operating margin was favorably impacted by foreign
exchange of approximately 0.1 points sequentially and unfavorably
impacted by approximately 0.7 points year-over-year(1)
- Q1'24 Clear Aligner revenues of $817.3 million, increased 3.5%
year-over-year, and Clear Aligner volume increased 2.4%
year-over-year to 605.1 thousand cases
- Q1'24 Clear Aligner volume for teens increased 5.8%
year-over-year to 199.2 thousand cases
- Q1'24 Imaging Systems and CAD/CAM Services revenues of $180.2
million, increased 17.5% year-over-year
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
first quarter ("Q1'24"). Q1'24 total revenues were $997.4 million,
up 4.3% sequentially and up 5.8% year-over-year. Q1'24 Clear
Aligner revenues were $817.3 million, up 4.5% sequentially and up
3.5% year-over-year. Q1'24 Clear Aligner volume was up 2.1%
sequentially and up 2.4% year-over-year. Q1'24 Imaging Systems and
CAD/CAM Services revenues were $180.2 million, up 3.1% sequentially
and up 17.5% year-over-year. Q1'24 Clear Aligner revenues were
favorably impacted by foreign exchange of approximately $8.4
million or 1.0% sequentially and unfavorably impacted by
approximately $3.9 million or 0.5% year-over-year.(1) Q1'24 Imaging
Systems and CAD/CAM Services revenues were favorably impacted by
foreign exchange of approximately $1.5 million or 0.9% sequentially
and unfavorably impacted by approximately $0.9 million or 0.5%
year-over-year.(1)
Q1'24 operating income was $154.1 million resulting in an
operating margin of 15.5%. Q1'24 operating margin was favorably
impacted by foreign exchange of approximately 0.1 points
sequentially and unfavorably impacted by approximately 0.7 points
year-over-year.(1) On a non-GAAP basis, Q1'24 operating income was
$197.5 million or operating margin of 19.8%. Q1'24 net income was
$105.0 million, or $1.39 per diluted share. On a non-GAAP basis,
Q1'24 net income was $161.4 million, or $2.14 per diluted
share.
Commenting on Align's Q1'24 results, Align Technology President
and CEO Joe Hogan said, “I’m pleased to report better than expected
revenue and earnings for the first quarter and a solid start to the
year. For Q1, total worldwide revenues were up 5.8% year-over-year,
reflecting 3.5% year-over-year growth from our Clear Aligner
segment and 17.5% year-over-year growth from Systems and Services.
On a year-over-year basis, Q1 revenue growth was up across all
regions and was driven by strong Clear Aligner volumes primarily in
the Asia Pacific region. Year-over-year growth also reflects
strength in the orthodontic channel, with total Invisalign® case
starts from teens and younger patients up 5.8% year-over-year —
driven by continued momentum across all regions from Invisalign
First™, as well as Invisalign DSP Touch-Up cases. On a sequential
basis, Q1 total revenues were up 4.3%, reflecting a sequential
increase in Clear Aligner revenues, especially from North America
orthodontists, as well as strong Systems and Services revenues
primarily driven by iTero Lumina™ wand upgrades in North
America.”
Continued Hogan, “During the quarter, we achieved several
significant milestones: We completed the acquisition of Cubicure
GmbH, a leader in direct 3D printing solutions which is the
foundation for our next generation aligner manufacturing; we
successfully launched the iTero Lumina™ intraoral scanner – our
next generation of digital scanning technology; we launched the
Invisalign® Palatal Expander system in the U.S. and Canada, and we
received regulatory approval for the Invisalign Palatal Expander in
Australia and New Zealand. The Invisalign® Palatal Expander System
is Align's first 3D-printed orthodontic device to address widening
the upper arch in growing patients. It is a revolutionary,
clinically effective approach to expansion that avoids the
challenges of traditional palatal expander appliances.”
Financial Summary - First Quarter Fiscal
2024
Q1'24
Q4'23
Q1'23
Q/Q Change
Y/Y Change
Clear Aligner Shipments*
605,060
592,635
590,940
+2.1%
+2.4%
GAAP
Net Revenues
$997.4M
$956.7M
$943.1M
+4.3%
+5.8%
Clear Aligner
$817.3M
$781.9M
$789.8M
+4.5%
+3.5%
Imaging Systems and CAD/CAM
Services
$180.2M
$174.8M
$153.3M
+3.1%
+17.5%
Net Income
$105.0M
$124.0M
$87.8M
(15.3)%
+19.6%
Diluted EPS
$1.39
$1.64
$1.14
($0.24)
+$0.26
Non-GAAP
Net Income
$161.4M
$183.5M
$140.6M
(12.0)%
+14.8%
Diluted EPS
$2.14
$2.42
$1.82
($0.28)
+$0.32
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 March 31, 2024, we had over $902.5 million in cash, cash
equivalents and short-term and long-term marketable securities
compared to over $980.8 million as of December 31, 2023. As of
March 31, 2024, we had $300.0 million available under a revolving
line of credit.
Q1'24 Announcement
Highlights
- On April 8, 2024, Align announced the “Better Way” new
advertising campaign for the Invisalign brand featuring the “Invis
is for Kids” tagline and hashtag. The campaign showcases how the
Invisalign® Palatal Expander System is a more positive patient
experience and is just as effective as traditional metal expanders,
but with less stress for kids and parents caused by having to
manually crank open the metal expander every day. The integrated
campaign includes targeted messages and materials for consumers and
for doctors to drive awareness of early orthodontic intervention
and that “Invis is for Kids.”
- On April 2, 2024, Align announced that the Invisalign® Palatal
Expander System was included in the Australian Register of
Therapeutic Goods and the New Zealand Web Assisted Notification of
Devices Database, and is now commercially available in both
Australia and New Zealand. It is expected to be available in other
APAC markets pending regulatory approvals starting in 2024.
- On February 22, 2024, Align announced that on Wednesday,
February 21, 2024, the U.S. District Court for the Northern
District of California granted summary judgment in favor of Align
Technology, Inc. in two U.S. antitrust class action lawsuits (Simon
& Simon, PC et al. v. Align Technology, Inc. and Snow et al. v.
Align Technology, Inc.), filed initially in 2020 and 2021,
respectively. These lawsuits challenged Align’s decision to end
scan acceptance in the U.S. from a third-party scanner that was
infringing Align’s intellectual property.
- On January 31, 2024, Align announced that for the first time,
Align Technology was included in the Intellectual Property Owners
Association annual report of the top 300 organizations granted U.S.
patents.
- On January 31, 2024, Align announced the launch of the iTero
Lumina™ intraoral scanner, the next generation of digital scanning
technology that pushes the boundaries of what intraoral scanners
can do and sets a new standard for practice performance.
- On January 2, 2024, Align completed the acquisition of
privately-held Cubicure GmbH, a pioneer in direct 3D printing
solutions for polymer additive manufacturing that develops,
produces, and distributes innovative materials, equipment, and
processes for novel 3D printing solutions.
Q1'24 Stock Repurchase
In January 2024, we received approximately 37 thousand shares of
our common stock upon final settlement of our Q4'23 $250.0 million
Accelerated Share Repurchase ("ASR") contract. In total, we
repurchased approximately 1.1 million shares at an average price
per share of $230.13 under the Q4'23 ASR contract.
There remains $650.0 million available for repurchase of our
common stock under our January 2023 Repurchase Program.
During Q2’24, we expect to repurchase up to $150.0 million of
our common stock through either a combination of open market
repurchases or an accelerated stock repurchase agreement.
Fiscal 2024 Business
Outlook
Turning to our outlook, assuming no circumstances occur beyond
our control, we provide the following framework for Q2 and fiscal
2024:
Second quarter 2024
outlook:
For Q2’24, we provide the following business outlook:
- We expect worldwide revenues to be in the range of $1,030M to
$1,050M
- We expect Clear Aligner volume to be up sequentially and Clear
Aligner ASP to be down slightly sequentially, primarily as a result
of unfavorable foreign exchange
- We expect Systems and Services revenue to be up sequentially as
we continue to ramp iTero Lumina™ in Q2’24
- We expect our Q2’24 GAAP operating margin and Non-GAAP
operating margin to be slightly above Q1’24 GAAP and Non-GAAP
operating margins respectively
Full year 2024 outlook:
- We expect fiscal 2024 total revenue growth to be up +6% to +8%
year-over-year, which is higher than our prior outlook of “up
mid-single digit growth compared to 2023”. The increase in our 2024
revenue outlook reflects our Q1 results, our Q2 outlook, and
continued execution of our growth strategies. We anticipate that
the incremental revenue reflected in our 2024 outlook will be
roughly split equally between our 2 operating segments
- We expect fiscal 2024 Clear Aligner ASP to be slightly up
year-over-year
- We expect fiscal 2024 GAAP operating margin and non-GAAP
operating margin to be slightly above the 2023 GAAP operating
margin and non-GAAP operating margin, respectively
- We expect our investments in capital expenditures for fiscal
2024 to be approximately $100M. 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, April 24, 2024, at 4:30
p.m. ET, 1:30 p.m. PT, to review our first quarter 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 by clicking here. 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 condensed 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, gross
profit, gross margin, operating expenses, income from operations,
operating margin, net income before provision for income taxes,
provision for income taxes, effective tax rate, net income and/or
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 261 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 over 17.6 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 regarding the availability, regulatory clearance,
effectiveness and customer desire for new products and
technologies, our expectations for our stock repurchase programs,
market opportunities, our expectations for Q2'24 worldwide
revenues, Clear Aligner volumes, Clear Aligner ASP, Systems and
Services revenues and GAAP and non-GAAP operating margin, and 2024
revenues, Clear Aligner ASP, and GAAP and non-GAAP operating
margin, as well as capital expenditures. Forward-looking statements
contained in this news 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 inflation, fluctuations in
currency exchange rates, rising interest rates, market volatility,
weakness in general economic conditions and recessions and the
impact of efforts by central banks and federal, state and local
governments to combat inflation and recession;
- customer and consumer purchasing behavior and changes in
consumer spending habits as a result of, among other things,
prevailing macro-economic conditions, levels of employment,
salaries and wages, debt obligations, discretionary income,
inflationary pressure, declining consumer confidence, and the
military conflict in Ukraine and in the Middle East;
- 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 the growth of, sales of our
clear aligners and intraoral scanners domestically and/or
internationally and the impact either would have on the adoption of
Invisalign products;
- the economic and geopolitical ramifications of the military
conflict 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 inside and outside of Russia;
- 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;
- the timing and availability and cost of raw materials,
components, products and other shipping and supply chain
constraints and disruptions;
- 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 our intellectual property rights;
- continued compliance with regulatory requirements;
- the willingness and ability of our customers to maintain and/or
increase product utilization in sufficient numbers;
- 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. 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
March 31,
2024
2023
Net revenues
$
997,431
$
943,147
Cost of net revenues
299,615
282,493
Gross profit
697,816
660,654
Operating expenses:
Selling, general and administrative
451,822
439,691
Research and development
91,859
87,447
Total operating expenses
543,681
527,138
Income from operations
154,135
133,516
Interest income and other income
(expense), net:
Interest income
4,392
2,337
Other income (expense), net
(141
)
(1,229
)
Total interest income and other income
(expense), net
4,251
1,108
Net income before provision for income
taxes
158,386
134,624
Provision for income taxes
53,358
46,826
Net income
$
105,028
$
87,798
Net income per share:
Basic
$
1.40
$
1.14
Diluted
$
1.39
$
1.14
Shares used in computing net income per
share:
Basic
75,175
76,921
Diluted
75,322
77,111
ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
March 31, 2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
865,805
$
937,438
Marketable securities, short-term
33,101
35,304
Accounts receivable, net
950,738
903,424
Inventories
280,076
296,902
Prepaid expenses and other current
assets
349,594
273,550
Total current assets
2,479,314
2,446,618
Marketable securities, long-term
3,619
8,022
Property, plant and equipment, net
1,281,709
1,290,863
Operating lease right-of-use assets,
net
118,996
117,999
Goodwill
458,235
419,530
Intangible assets, net
121,424
82,118
Deferred tax assets
1,570,626
1,590,045
Other assets
121,831
128,682
Total assets
$
6,155,754
$
6,083,877
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
117,238
$
113,125
Accrued liabilities
496,601
525,780
Deferred revenues
1,409,202
1,427,706
Total current liabilities
2,023,041
2,066,611
Income tax payable
121,314
116,744
Operating lease liabilities
95,092
96,968
Other long-term liabilities
156,447
173,065
Total liabilities
2,395,894
2,453,388
Total stockholders’ equity
3,759,860
3,630,489
Total liabilities and stockholders’
equity
$
6,155,754
$
6,083,877
ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
March 31,
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES
Net cash provided by operating
activities
$
28,664
$
199,895
CASH FLOWS FROM INVESTING
ACTIVITIES
Net cash used in investing activities
(79,584
)
(52,829
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Net cash used in financing activities
(11,716
)
(258,961
)
Effect of foreign exchange rate changes on
cash, cash equivalents, and restricted cash
(9,004
)
2,221
Net decrease in cash, cash equivalents,
and restricted cash
(71,640
)
(109,674
)
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
$
866,879
$
832,681
ALIGN TECHNOLOGY, INC.
INVISALIGN BUSINESS METRICS
Q1
Q2
Q3
Q4
Q1
2023
2023
2023
2023
2024
Number of Invisalign Trained Doctors
Cases Were Shipped To
82,730
83,440
85,195
83,700
83,510
Invisalign Trained Doctor Utilization
Rates*:
North America
9.5
9.8
9.6
9.1
9.5
North American Orthodontists
28.7
29.2
28.8
25.9
28.2
North American GP Dentists
4.9
5.2
4.9
5.0
4.9
International
6.2
6.6
6.1
6.5
6.3
Total Utilization Rates**
7.1
7.5
7.1
7.1
7.2
Clear Aligner Revenue Per Case
Shipment***:
$
1,335
$
1,335
$
1,320
$
1,320
$
1,350
* # 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 in Case 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
2023
2023
2023
2023
2023
2024
Stock-based Compensation (SBC):
SBC included in Gross Profit
$
1,807
$
1,901
$
1,974
$
1,780
$
7,462
$
2,064
SBC included in Operating Expenses
35,928
35,959
37,628
37,049
146,564
36,724
Total SBC
$
37,735
$
37,860
$
39,602
$
38,829
$
154,026
$
38,788
ALIGN TECHNOLOGY, INC. UNAUDITED GAAP TO
NON-GAAP RECONCILIATION+
CONSTANT CURRENCY NET REVENUES
(in thousands, except percentages)
Sequential constant currency analysis:
Three Months Ended
March 31, 2024
December 31,
2023
Impact % of Revenue
GAAP net revenues
$
997,431
$
956,726
Constant currency impact (1)
(9,950
)
(1.0
)%
Constant currency net revenues
(1)
$
987,481
GAAP Clear Aligner net revenues
$
817,251
$
781,912
Clear Aligner constant currency impact
(1)
(8,421
)
(1.0
)%
Clear Aligner constant currency net
revenues (1)
$
808,830
GAAP Imaging Systems and CAD/CAM
Services net revenues
$
180,180
$
174,814
Imaging Systems and CAD/CAM Services
constant currency impact (1)
(1,529
)
(0.9
)%
Imaging Systems and CAD/CAM Services
constant currency net revenues (1)
$
178,651
Year-over-year constant currency
analysis:
Three Months Ended
March 31,
2024
2023
Impact % of Revenue
GAAP net revenues
$
997,431
$
943,147
Constant currency impact (1)
4,823
0.5
%
Constant currency net revenues
(1)
$
1,002,254
GAAP Clear Aligner net revenues
$
817,251
$
789,804
Clear Aligner constant currency impact
(1)
3,899
0.5
%
Clear Aligner constant currency net
revenues (1)
$
821,150
GAAP Imaging Systems and CAD/CAM
Services net revenues
$
180,180
$
153,343
Imaging Systems and CAD/CAM Services
constant currency impact (1)
924
0.5
%
Imaging Systems and CAD/CAM Services
constant currency net revenues (1)
$
181,104
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 and yearoveryear
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 NonGAAP 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
March 31, 2024
December 31,
2023
GAAP gross profit
$
697,816
$
669,524
Constant currency impact on net
revenues
(9,950
)
Constant currency gross profit
$
687,866
Three Months Ended
March 31, 2024
December 31,
2023
GAAP gross margin
70.0
%
70.0
%
Gross margin constant currency impact
(1)
(0.3
)
Constant currency gross margin
(1)
69.7
%
Year-over-year constant currency
analysis:
Three Months Ended
March 31,
2024
2023
GAAP gross profit
$
697,816
$
660,654
Constant currency impact on net
revenues
4,823
Constant currency gross profit
$
702,639
Three Months Ended
March 31,
2024
2023
GAAP gross margin
70.0
%
70.0
%
Gross margin constant currency impact
(1)
0.1
Constant currency gross margin
(1)
70.1
%
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
March 31, 2024
December 31,
2023
GAAP income from operations
$
154,135
$
171,545
Income from operations constant currency
impact (1)
(3,015
)
Constant currency income from
operations (1)
$
151,120
Three Months Ended
March 31, 2024
December 31,
2023
GAAP operating margin
15.5
%
17.9
%
Operating margin constant currency impact
(2)
(0.1
)
Constant currency operating margin
(2)
15.3
%
Year-over-year constant currency
analysis:
Three Months Ended
March 31,
2024
2023
GAAP income from operations
$
154,135
$
133,516
Income from operations constant currency
impact (1)
7,802
Constant currency income from
operations (1)
$
161,937
Three Months Ended
March 31,
2024
2023
GAAP operating margin
15.5
%
14.2
%
Operating margin constant currency impact
(2)
0.7
Constant currency operating margin
(2)
16.2
%
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 and year-over-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
March 31,
2024
2023
GAAP gross profit
$
697,816
$
660,654
Stock-based compensation
2,064
1,807
Amortization of intangibles (1)
3,724
2,774
Restructuring charges (2)
—
(8
)
Non-GAAP gross profit
$
703,604
$
665,227
GAAP gross margin
70.0
%
70.0
%
Non-GAAP gross margin
70.5
%
70.5
%
GAAP total operating expenses
$
543,681
$
527,138
Stock-based compensation
(36,724
)
(35,928
)
Amortization of intangibles (1)
(863
)
(867
)
Restructuring and other charges (2)
—
177
Non-GAAP total operating
expenses
$
506,094
$
490,520
GAAP income from operations
$
154,135
$
133,516
Stock-based compensation
38,788
37,735
Amortization of intangibles (1)
4,587
3,641
Restructuring and other charges (2)
—
(185
)
Non-GAAP income from operations
$
197,510
$
174,707
GAAP operating margin
15.5
%
14.2
%
Non-GAAP operating margin
19.8
%
18.5
%
GAAP net income before provision for
income taxes
$
158,386
$
134,624
Stock-based compensation
38,788
37,735
Amortization of intangibles (1)
4,587
3,641
Restructuring and other charges (2)
—
(185
)
Non-GAAP net income before provision
for income taxes
$
201,761
$
175,815
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
March 31,
2024
2023
GAAP provision for income taxes
$
53,358
$
46,826
Tax impact on non-GAAP adjustments
(13,036
)
(11,626
)
Non-GAAP provision for income
taxes
$
40,322
$
35,200
GAAP effective tax rate
33.7
%
34.8
%
Non-GAAP effective tax rate
20.0
%
20.0
%
GAAP net income
$
105,028
$
87,798
Stock-based compensation
38,788
37,735
Amortization of intangibles (1)
4,587
3,641
Restructuring and other charges (2)
—
(185
)
Tax impact on non-GAAP adjustments
13,036
11,626
Non-GAAP net income
$
161,439
$
140,615
GAAP diluted net income per
share
$
1.39
$
1.14
Non-GAAP diluted net income per
share
$
2.14
$
1.82
Shares used in computing diluted net
income per share
75,322
77,111
Notes:
(1)
Amortization of intangible assets related
to certain acquisitions.
(2)
Restructuring and other charges recorded
in gross profit and operating expenses primarily relate to
severance costs.
(+)
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.
Q2 2024 OUTLOOK - GAAP TO NON-GAAP
RECONCILIATION
GAAP operating margin
slightly above 15.5%
Stock-based compensation
~4.0%
Amortization of intangibles (1)
~0.4%
Non-GAAP operating margin
slightly above 19.8%
ALIGN TECHNOLOGY, INC.
FISCAL 2024 OUTLOOK - GAAP TO NON-GAAP
RECONCILIATION
GAAP operating margin
slightly above 16.7%
Stock-based compensation
~4.4%
Amortization of intangibles (1)
~0.4%
Non-GAAP operating margin
slightly above 21.4%
(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/20240424082127/en/
Align Technology Madelyn Valente
(909) 833-5839 mvalente@aligntech.com
Zeno Group Sarah Johnson (828)
551-4201 sarah.johnson@zenogroup.com
Grafico Azioni Align Technology (NASDAQ:ALGN)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Align Technology (NASDAQ:ALGN)
Storico
Da Nov 2023 a Nov 2024
