Align Technology Announces Fourth Quarter and Fiscal 2022 Financial Results
Align Technology reported Q4 2022 revenues of $901.5 million, reflecting a 1.3% sequential increase but a 12.6% decline year-over-year. Total revenues for 2022 reached $3.7 billion, with $3.1 billion in Clear Aligner revenues. The company faced significant foreign exchange impacts, losing approximately $67.6 million year-over-year in Q4. Net income for Q4 was $41.8 million or $0.54 per diluted share, down 42.5% from Q3. Align plans a new $1 billion stock repurchase program, succeeding the current one, demonstrating confidence in future growth despite macroeconomic challenges.
- Authorized a new $1 billion stock repurchase program.
- Sequential revenue growth of 1.3% in Q4.
- Over $1 billion in cash and no long-term debt.
- Q4 revenue down 12.6% year-over-year.
- Net income decreased by 78.1% compared to Q4 2021.
- Clear Aligner revenues fell by 10.3% year-over-year.
Q4 total revenues of
Board of Directors has authorized a new
-
2022 total revenues of
, Clear Aligner revenues of$3.7 billion and Systems and Services revenues of$3.1 billion $662.1 million -
2022 revenues were unfavorably impacted by foreign exchange of approximately
(1) compared to 2021$193.8 million -
2022 operating margin of
17.2% , non-GAAP operating margin of21.5% , and diluted net income per share of , non-GAAP diluted net income per share of$4.61 (3)$7.76 - 2022 operating margin was unfavorably impacted by foreign exchange of approximately 2.8 points compared to 2021(1)
-
Repurchased
of common stock in 2022(2) with plans to repurchase$475 million more starting in Q1 2023 and expect to entirely complete our 2021$250 million Stock Repurchase Program in Q2 2023$1 Billion -
Q4 total revenues of
, and diluted net income per share of$901.5 million , non-GAAP diluted net income per share of$0.54 (3)$1.73 -
Q4 revenues were unfavorably impacted by foreign exchange of approximately
sequentially and approximately$16.0 million year over year(1)$67.6 million
During Q4’22, we incurred a total of
2022 Clear Aligner revenues of
In Q4’22, we changed to a long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across reporting periods. Our previous methodology for calculating our non-GAAP effective tax rate included certain non-recurring and period-specific items, that produced fluctuating effective tax rates that management does not believe are reflective of the Company's long-term effective tax rate. We have recast all prior periods in 2022 to reflect this change. We did not make any changes to the results reported for 2021 as reflecting the change in methodology for the computation of the non-GAAP effective tax rate was immaterial to our 2021 results. Refer to the section titled "Recast of Financial Measures for Prior Periods in 2022 for Tax Rate Change" under Unaudited GAAP to Non-GAAP Reconciliation for further information.
Commenting on Align's Q4'22 and 2022 results,
(1) Non-GAAP measure
(2) The contract was open as of
(3) In Q4'22, we changed our methodology for the computation of the non-GAAP effective tax rate to a long-term projected tax rate and have given effect to the new methodology from
Financial Summary - Fourth Quarter Fiscal 2022
|
Q4'22 |
|
Q3'22 |
|
Q4'21 |
|
Q/Q Change |
|
Y/Y Change |
|||||||
Invisalign Case Shipments |
|
583,655 |
|
|
577,170 |
|
|
631,145 |
|
|
+1.1 |
% |
|
|
(7.5 |
)% |
GAAP |
|
|
|
|
|
|
|
|
|
|||||||
Net Revenues |
$ |
901.5M |
|
$ |
890.3M |
|
$ |
1,031.1M |
|
|
+1.3 |
% |
|
|
(12.6 |
)% |
Clear Aligner |
$ |
731.7M |
|
$ |
732.8M |
|
$ |
815.3M |
|
|
(0.2 |
)% |
|
|
(10.3 |
)% |
Imaging Systems and CAD/CAM Services |
$ |
169.9M |
|
$ |
157.5M |
|
$ |
215.8M |
|
|
+7.8 |
% |
|
|
(21.3 |
)% |
Net Income |
$ |
41.8M |
|
$ |
72.7M |
|
$ |
191.0M |
|
|
(42.5 |
)% |
|
|
(78.1 |
)% |
Diluted EPS |
$ |
0.54 |
|
$ |
0.93 |
|
$ |
2.40 |
|
($ |
0.39 |
) |
|
($ |
1.86 |
) |
Non-GAAP |
|
|
|
|
|
|
|
|
|
|||||||
Net Income(3) |
$ |
134.2M |
|
$ |
127.2M |
|
$ |
224.5M |
|
|
+5.5 |
% |
|
|
(40.2 |
)% |
Diluted EPS(3) |
$ |
1.73 |
|
$ |
1.63 |
|
$ |
2.83 |
|
|
|
|
|
($ |
1.10 |
) |
Financial Summary - Fiscal 2022
|
2022 |
|
2021 |
|
Y/Y Change |
||||
Invisalign Case Shipments |
|
2,358,645 |
|
|
2,547,685 |
|
|
(7.4 |
)% |
GAAP |
|
|
|
|
|
||||
Net Revenues |
$ |
3,734.6M |
|
$ |
3,952.6M |
|
|
(5.5 |
)% |
Clear Aligner |
$ |
3,072.6M |
|
$ |
3,247.1M |
|
|
(5.4 |
)% |
Imaging Systems and CAD/CAM Services |
$ |
662.1M |
|
$ |
705.5M |
|
|
(6.2 |
)% |
Net Income |
$ |
361.6M |
|
$ |
772.0M |
|
|
(53.2 |
)% |
Diluted EPS |
$ |
4.61 |
|
$ |
9.69 |
|
($ |
5.08 |
) |
Non-GAAP |
|
|
|
|
|
||||
Net Income(3) |
$ |
608.2M |
|
$ |
893.5M |
|
|
(31.9 |
)% |
Diluted EPS(3) |
$ |
7.76 |
|
$ |
11.22 |
|
($ |
3.46 |
) |
(3) In Q4'22, we changed our methodology for the computation of the non-GAAP effective tax rate to a long-term projected tax rate and have given effect to the new methodology from |
As of
Commenting on Align's 2022 results, Align Technology CFO and EVP Global Finance,
Q4'22 Announcement Highlights
-
On
October 3, 2022 , we announced the latest release of the iTero-exocad Connector™, which integrates iTero™ intraoral camera and Near-infrared imaging ("NIRI") images within exocad DentalCAD 3.1 Rijeka software. This new integration, introduced at the exocad Insights 2022 event in Mallorca,Spain , is designed to support the goal of a seamless, end-to-end workflow for doctors and lab technicians. It optimizes design and fabrication of highly esthetic restorations by providing the ability for dental professionals to visualize the internal and external structure of teeth. -
On
October 31, 2022 , we announced that we entered into a new accelerated stock repurchase agreement withGoldman Sachs & Co. LLC , to repurchase of our common stock under our$200 million May 13, 2021 , Stock Repurchase Program.$1.0 billion -
On
November 3, 2022 , we announced a strategic collaboration to supply iTero Element™ Flex intraoral scanners toDesktop Labs allowing it to connect general dentist locations with its growing network of premium full-service labs. We noted that the iTero Element Flex intraoral scanner will be the exclusive restorative scanner forDesktop Labs , one of the largest lab networks inthe United States . -
On
November 7, 2022 , we announced the opening of Align's 2023 Research Award Program to support clinical and scientific dental research in universities across the globe. In 2023, up to 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$300,000 in research since the program’s inception in 2010.$2.7 million
Fiscal 2023 Business Outlook
For 2023, Align provides the following business outlook:
-
We are pleased with our Q4 results and what appears to be a more stable operating environment in
North America , EMEA. We are cautiously optimistic for continued stability and improving trends as we move through the year. However, the macroeconomic environment remains fragile and given continued global challenges and uncertainty, we are not providing full year revenue guidance. We would like to see improvements in the operating environment and consumer demand signals, including stability inChina before revisiting our approach. - At the same time, we are confident in our large, untapped market opportunity for digital orthodontics and restorative dentistry and our ability to make progress toward our strategic initiatives. We intend to focus on the things we can control and influence which includes strategic investments in sales, marketing, technology and innovation.
-
For full year 2023, assuming no additional material disruptions or circumstances beyond our control, we anticipate 2023 GAAP operating margin to be slightly above
16% and expect our 2023 non-GAAP operating margin to be slightly above20% . -
With this backdrop, for Q1 2023, we anticipate clear aligner volumes to be down sequentially primarily due to weakness in
China from COVID, partially offset by some stability from ourAmericas and EMEA regions. We anticipate clear aligner ASPs to be up from Q4’22 primarily due to higher pricing and favorable foreign exchange rates. We anticipate iTero scanner and services revenue to be down sequentially as the business follows a more typical capital equipment cycle. -
Taken in total, we expect Q1’23 revenues to be about flat to Q4’22. We expect our Q1’23 GAAP operating margin to be up approximately
1% point from Q4’22 GAAP operating margin and expect our Q1’23 non-GAAP operating margin to be consistent with Q4’22 non-GAAP operating margin, as we continue to make investments in R&D and go-to-market activities. -
For 2023, we expect our investments in capital expenditures to exceed
. Capital expenditures primarily relate to building construction and improvements as well as additional manufacturing capacity to support our international expansion.$200 million
Align Web Cast and Conference Call
We will host a conference call today,
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
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
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, iTero Element and iTero-exocad Connector are trademarks of
Forward-Looking Statements
This news release, including the tables below, contains forward-looking statements, including statements of beliefs and expectations regarding anticipated capital expenditures, anticipated clear aligner volumes, clear aligner ASPs, iTero scanner and services revenue, total revenues and operating margin, customer and consumer demand trends and market opportunities, our ability to successfully control our business and operations and pursue our strategic growth drivers, our expectations regarding the timing and impact of new products and technologies, our beliefs for the impacts of our stock repurchase programs and our ability to generate cash flow, and our beliefs regarding the trajectory of our business. 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 ; - the impact of the COVID-19 pandemic and its variants on the health and safety of our employees, customers, patients, and our suppliers, as well as the physical and economic impacts of the various recommendations, orders, and protocols issued by local and national governmental agencies in light of continual evolution of the pandemic, including any periodic reimplementation of preventative measures in various global locations;
-
the economic and geopolitical ramifications of the military conflict in
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 research and development activities inside and outside ofRussia ; - variations in our product mix and selling prices regionally and globally;
- the timing and availability and cost of raw materials, components, products and other shipping and supply chain constraints;
- unexpected or rapid changes in the growth or decline of our domestic and/or international markets;
- competition from existing and new competitors;
- 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;
- 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 willingness and ability of our customers to maintain and/or increase product utilization in sufficient numbers;
- 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 inChina ; - 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
|
|||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(in thousands, except per share data) |
|||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
|||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||
Net revenues |
|
$ |
901,515 |
|
|
$ |
1,031,099 |
|
|
$ |
3,734,635 |
|
|
$ |
3,952,584 |
Cost of net revenues |
|
|
283,814 |
|
|
|
286,536 |
|
|
|
1,100,860 |
|
|
|
1,017,229 |
Gross profit |
|
|
617,701 |
|
|
|
744,563 |
|
|
|
2,633,775 |
|
|
|
2,935,355 |
Operating expenses: |
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative |
|
|
410,067 |
|
|
|
451,195 |
|
|
|
1,674,469 |
|
|
|
1,708,640 |
Research and development |
|
|
83,520 |
|
|
|
72,476 |
|
|
|
305,258 |
|
|
|
250,315 |
Restructuring and other charges |
|
|
11,453 |
|
|
|
— |
|
|
|
11,453 |
|
|
|
— |
Total operating expenses |
|
|
505,040 |
|
|
|
523,671 |
|
|
|
1,991,180 |
|
|
|
1,958,955 |
Income from operations |
|
|
112,661 |
|
|
|
220,892 |
|
|
|
642,595 |
|
|
|
976,400 |
Interest income and other income (expense), net: |
|
|
|
|
|
|
|
|
|||||||
Interest income |
|
|
2,760 |
|
|
|
676 |
|
|
|
5,367 |
|
|
|
3,103 |
Other income (expense), net |
|
|
(100 |
) |
|
|
(1,556 |
) |
|
|
(48,905 |
) |
|
|
32,920 |
Total interest income and other income (expense), net |
|
|
2,660 |
|
|
|
(880 |
) |
|
|
(43,538 |
) |
|
|
36,023 |
Net income before provision for income taxes |
|
|
115,321 |
|
|
|
220,012 |
|
|
|
599,057 |
|
|
|
1,012,423 |
Provision for income taxes |
|
|
73,546 |
|
|
|
29,051 |
|
|
|
237,484 |
|
|
|
240,403 |
Net income |
|
$ |
41,775 |
|
|
$ |
190,961 |
|
|
$ |
361,573 |
|
|
$ |
772,020 |
|
|
|
|
|
|
|
|
|
|||||||
Net income per share: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.54 |
|
|
$ |
2.42 |
|
|
$ |
4.62 |
|
|
$ |
9.78 |
Diluted |
|
$ |
0.54 |
|
|
$ |
2.40 |
|
|
$ |
4.61 |
|
|
$ |
9.69 |
Shares used in computing net income per share: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
77,541 |
|
|
|
78,759 |
|
|
|
78,190 |
|
|
|
78,917 |
Diluted |
|
|
77,683 |
|
|
|
79,431 |
|
|
|
78,420 |
|
|
|
79,670 |
|
||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(in thousands) |
||||||
|
|
|
|
|
||
ASSETS |
|
|
|
|
||
|
|
|
|
|
||
Current assets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
942,050 |
|
$ |
1,099,370 |
Marketable securities, short-term |
|
|
57,534 |
|
|
71,972 |
Accounts receivable, net |
|
|
859,685 |
|
|
897,198 |
Inventories |
|
|
338,752 |
|
|
230,230 |
Prepaid expenses and other current assets |
|
|
226,370 |
|
|
195,305 |
Total current assets |
|
|
2,424,391 |
|
|
2,494,075 |
|
|
|
|
|
||
Marketable securities, long-term |
|
|
41,978 |
|
|
125,320 |
Property, plant and equipment, net |
|
|
1,231,855 |
|
|
1,081,926 |
Operating lease right-of-use assets, net |
|
|
118,880 |
|
|
121,257 |
|
|
|
407,551 |
|
|
418,547 |
Intangible assets, net |
|
|
95,720 |
|
|
109,709 |
Deferred tax assets |
|
|
1,571,746 |
|
|
1,533,767 |
Other assets |
|
|
55,826 |
|
|
57,509 |
|
|
|
|
|
||
Total assets |
|
$ |
5,947,947 |
|
$ |
5,942,110 |
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
||
Accounts payable |
|
$ |
127,870 |
|
$ |
163,886 |
Accrued liabilities |
|
|
454,374 |
|
|
607,315 |
Deferred revenues |
|
|
1,343,643 |
|
|
1,152,870 |
Total current liabilities |
|
|
1,925,887 |
|
|
1,924,071 |
|
|
|
|
|
||
Income tax payable |
|
|
124,393 |
|
|
118,072 |
Operating lease liabilities |
|
|
100,334 |
|
|
102,656 |
Other long-term liabilities |
|
|
195,975 |
|
|
174,597 |
Total liabilities |
|
|
2,346,589 |
|
|
2,319,396 |
|
|
|
|
|
||
Total stockholders’ equity |
|
|
3,601,358 |
|
|
3,622,714 |
|
|
|
|
|
||
Total liabilities and stockholders’ equity |
|
$ |
5,947,947 |
|
$ |
5,942,110 |
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(in thousands) |
||||||||
|
|
Year Ended
|
||||||
|
|
2022 |
|
2021 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
568,732 |
|
|
$ |
1,172,544 |
|
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
||||
Net cash used in investing activities |
|
|
(213,316 |
) |
|
|
(563,430 |
) |
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
||||
Net cash used in financing activities |
|
|
(501,686 |
) |
|
|
(458,332 |
) |
|
|
|
|
|
||||
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
(11,514 |
) |
|
|
(12,117 |
) |
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
|
(157,784 |
) |
|
|
138,665 |
|
Cash, cash equivalents, and restricted cash at beginning of the period |
|
|
1,100,139 |
|
|
|
961,474 |
|
Cash, cash equivalents, and restricted cash at end of the period |
|
$ |
942,355 |
|
|
$ |
1,100,139 |
|
|
||||||||||||||||||||||||
INVISALIGN BUSINESS METRICS |
||||||||||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
||||||||
|
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
||||||||
Invisalign Average Selling Price (ASP) |
|
$ |
1,195 |
|
$ |
1,185 |
|
$ |
1,195 |
|
$ |
1,200 |
|
$ |
1,250 |
|
$ |
1,220 |
|
$ |
1,150 |
|
$ |
1,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Number of Invisalign Trained Doctors Cases Were Shipped To |
|
|
78,605 |
|
|
83,465 |
|
|
85,500 |
|
|
83,540 |
|
|
82,440 |
|
|
82,275 |
|
|
84,410 |
|
|
82,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Invisalign Trained Doctor Utilization Rates*: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
9.1 |
|
|
9.9 |
|
|
9.8 |
|
|
9.3 |
|
|
9.2 |
|
|
9.3 |
|
|
8.9 |
|
|
8.8 |
North American Orthodontists |
|
|
26.8 |
|
|
29.4 |
|
|
29.7 |
|
|
26.9 |
|
|
26.8 |
|
|
26.8 |
|
|
25.9 |
|
|
24.8 |
North American GP Dentists |
|
|
4.8 |
|
|
5.3 |
|
|
5.0 |
|
|
5.1 |
|
|
5.0 |
|
|
5.1 |
|
|
4.8 |
|
|
5.0 |
International |
|
|
6.8 |
|
|
7.1 |
|
|
6.5 |
|
|
6.8 |
|
|
6.4 |
|
|
6.4 |
|
|
6.0 |
|
|
6.5 |
Total Utilization Rates** |
|
|
7.6 |
|
|
8.0 |
|
|
7.7 |
|
|
7.6 |
|
|
7.3 |
|
|
7.3 |
|
|
6.8 |
|
|
7.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Clear Aligner Revenue Per Case Shipment***: |
|
$ |
1,265 |
|
$ |
1,265 |
|
$ |
1,280 |
|
$ |
1,290 |
|
$ |
1,350 |
|
$ |
1,335 |
|
$ |
1,270 |
|
|
1,255 |
* # 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 |
|
||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION |
||||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Fiscal |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Fiscal |
||||||||||
|
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
||||||||||
Stock-based Compensation (SBC): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SBC included in Gross Profit |
|
$ |
1,306 |
|
$ |
1,418 |
|
$ |
1,451 |
|
$ |
1,458 |
|
$ |
5,633 |
|
$ |
1,514 |
|
$ |
1,614 |
|
$ |
1,651 |
|
$ |
1,659 |
|
$ |
6,438 |
SBC included in Operating Expenses |
|
|
25,935 |
|
|
27,437 |
|
|
26,951 |
|
|
28,380 |
|
|
108,703 |
|
|
30,107 |
|
|
32,526 |
|
|
31,267 |
|
|
33,029 |
|
$ |
126,929 |
Total SBC |
|
$ |
27,241 |
|
$ |
28,855 |
|
$ |
28,402 |
|
$ |
29,838 |
|
$ |
114,336 |
|
$ |
31,621 |
|
$ |
34,140 |
|
$ |
32,918 |
|
$ |
34,688 |
|
$ |
133,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
UNAUDITED GAAP TO NON-GAAP RECONCILIATION |
|||||||||
CONSTANT CURRENCY NET REVENUES |
|||||||||
(in thousands, except percentages) |
|||||||||
Sequential constant currency analysis: |
|||||||||
|
|
Three Months Ended |
|
|
|||||
|
|
|
|
2022 |
|
Impact % of
|
|||
GAAP net revenues |
|
$ |
901,515 |
|
$ |
890,348 |
|
|
|
Constant currency impact (1) |
|
|
16,023 |
|
|
|
1.7 |
% |
|
Constant currency net revenues (1) |
|
$ |
917,538 |
|
|
|
|
||
|
|
|
|
|
|
|
|||
GAAP Clear Aligner net revenues |
|
$ |
731,654 |
|
$ |
732,837 |
|
|
|
Clear Aligner constant currency impact (1) |
|
|
13,362 |
|
|
|
1.8 |
% |
|
Clear Aligner constant currency net revenues (1) |
|
$ |
745,016 |
|
|
|
|
||
|
|
|
|
|
|
|
|||
GAAP Imaging Systems and CAD/CAM Services net revenues |
|
$ |
169,861 |
|
$ |
157,511 |
|
|
|
Imaging Systems and CAD/CAM Services constant currency impact (1) |
|
|
2,661 |
|
|
|
1.5 |
% |
|
Imaging Systems and CAD/CAM Services constant currency net revenues (1) |
|
$ |
172,522 |
|
|
|
|
Year-over-year constant currency analysis: |
|||||||||
|
|
Three Months Ended
|
|
|
|||||
|
|
2022 |
|
2021 |
|
Impact % of
|
|||
GAAP net revenues |
|
$ |
901,515 |
|
$ |
1,031,099 |
|
|
|
Constant currency impact (1) |
|
|
67,588 |
|
|
|
7.0 |
% |
|
Constant currency net revenues (1) |
|
$ |
969,103 |
|
|
|
|
||
|
|
|
|
|
|
|
|||
GAAP Clear Aligner net revenues |
|
$ |
731,654 |
|
$ |
815,259 |
|
|
|
Clear Aligner constant currency impact (1) |
|
|
56,387 |
|
|
|
7.2 |
% |
|
Clear Aligner constant currency net revenues (1) |
|
$ |
788,041 |
|
|
|
|
||
|
|
|
|
|
|
|
|||
GAAP Imaging Systems and CAD/CAM Services net revenues |
|
$ |
169,861 |
|
$ |
215,840 |
|
|
|
Imaging Systems and CAD/CAM Services constant currency impact (1) |
|
|
11,201 |
|
|
|
6.2 |
% |
|
Imaging Systems and CAD/CAM Services constant currency net revenues (1) |
|
$ |
181,062 |
|
|
|
|
|
|||||||||
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 |
|
|
|||||
|
|
2022 |
|
2021 |
|
Impact % of
|
|||
GAAP net revenues |
|
$ |
3,734,635 |
|
$ |
3,952,584 |
|
|
|
Constant currency impact (1) |
|
|
193,797 |
|
|
|
4.9 |
% |
|
Constant currency net revenues (1) |
|
$ |
3,928,432 |
|
|
|
|
||
|
|
|
|
|
|
|
|||
GAAP Clear Aligner net revenues |
|
$ |
3,072,585 |
|
$ |
3,247,080 |
|
|
|
Clear Aligner constant currency impact (1) |
|
|
160,804 |
|
|
|
5.0 |
% |
|
Clear Aligner constant currency net revenues (1) |
|
$ |
3,233,389 |
|
|
|
|
||
|
|
|
|
|
|
|
|||
GAAP Imaging Systems and CAD/CAM Services net revenues |
|
$ |
662,050 |
|
$ |
705,504 |
|
|
|
Imaging Systems and CAD/CAM Services constant currency impact (1) |
|
|
32,993 |
|
|
|
4.7 |
% |
|
Imaging Systems and CAD/CAM Services constant currency net revenues (1) |
|
$ |
695,043 |
|
|
|
|
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). Refer to "About Non-GAAP Financial Measures" section of press release. |
|
||||||
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 |
||||
|
|
|
|
|
||
GAAP gross profit |
|
$ |
617,701 |
|
$ |
619,169 |
Constant currency impact on net revenues |
|
|
16,023 |
|
|
|
Constant currency gross profit |
|
$ |
633,724 |
|
|
|
|
Three Months Ended |
||||
|
|
|
|
|
||
GAAP gross margin |
|
68.5 |
% |
|
69.5 |
% |
Gross margin constant currency impact (1) |
|
0.6 |
|
|
|
|
Constant currency gross margin (1) |
|
69.1 |
% |
|
|
Year-over-year constant currency analysis: |
||||||
|
|
Three Months Ended
|
||||
|
|
2022 |
|
2021 |
||
GAAP gross profit |
|
$ |
617,701 |
|
$ |
744,563 |
Constant currency impact on net revenues |
|
|
67,588 |
|
|
|
Constant currency gross profit |
|
$ |
685,289 |
|
|
|
|
Three Months Ended
|
||||
|
|
2022 |
|
2021 |
||
GAAP gross margin |
|
68.5 |
% |
|
72.2 |
% |
Gross margin constant currency impact (1) |
|
2.2 |
|
|
|
|
Constant currency gross margin (1) |
|
70.7 |
% |
|
|
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. |
|
Refer to "About Non-GAAP Financial Measures" section of press release. |
|
||||||
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 |
||||
|
|
|
|
|
||
GAAP income from operations |
|
$ |
112,661 |
|
$ |
143,656 |
Income from operations constant currency impact (1) |
|
|
10,698 |
|
|
|
Constant currency income from operations (1) |
|
$ |
123,359 |
|
|
|
|
Three Months Ended |
||||
|
|
|
|
|
||
GAAP operating margin |
|
12.5 |
% |
|
16.1 |
% |
Operating margin constant currency impact (2) |
|
0.9 |
|
|
|
|
Constant currency operating margin (2) |
|
13.4 |
% |
|
|
Year-over-year constant currency analysis: |
||||||
|
|
Three Months Ended
|
||||
|
|
2022 |
|
2021 |
||
GAAP income from operations |
|
$ |
112,661 |
|
$ |
220,892 |
Income from operations constant currency impact (1) |
|
|
49,320 |
|
|
|
Constant currency income from operations (1) |
|
$ |
161,981 |
|
|
|
|
Three Months Ended
|
||||
|
|
2022 |
|
2021 |
||
GAAP operating margin |
|
12.5 |
% |
|
21.4 |
% |
Operating margin constant currency impact (2) |
|
4.2 |
|
|
|
|
Constant currency operating margin (2) |
|
16.7 |
% |
|
|
|
||||||
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 |
||||
|
|
2022 |
|
2021 |
||
GAAP income from operations |
|
$ |
642,595 |
|
$ |
976,400 |
Income from operations constant currency impact (1) |
|
|
144,079 |
|
|
|
Constant currency income from operations (1) |
|
$ |
786,674 |
|
|
|
|
Year Ended |
||||
|
|
2022 |
|
2021 |
||
GAAP operating margin |
|
17.2 |
% |
|
24.7 |
% |
Operating margin constant currency impact (2) |
|
2.8 |
|
|
|
|
Constant currency operating margin (2) |
|
20.0 |
% |
|
|
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. |
|
|
||
Refer to "About Non-GAAP Financial Measures" section of press release. |
|
||||||||||||||||
UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED |
||||||||||||||||
FINANCIAL MEASURES OTHER THAN CONSTANT CURRENCY |
||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
GAAP gross profit |
|
$ |
617,701 |
|
|
$ |
744,563 |
|
|
$ |
2,633,775 |
|
|
$ |
2,935,355 |
|
Stock-based compensation |
|
|
1,659 |
|
|
|
1,458 |
|
|
|
6,438 |
|
|
|
5,633 |
|
Amortization of intangibles (1) |
|
|
2,610 |
|
|
|
2,798 |
|
|
|
10,134 |
|
|
|
9,502 |
|
Restructuring charges (2) |
|
|
2,866 |
|
|
|
— |
|
|
|
2,866 |
|
|
|
— |
|
Non-GAAP gross profit |
|
$ |
624,836 |
|
|
$ |
748,819 |
|
|
$ |
2,653,213 |
|
|
$ |
2,950,490 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP gross margin |
|
|
68.5 |
% |
|
|
72.2 |
% |
|
|
70.5 |
% |
|
|
74.3 |
% |
Non-GAAP gross margin |
|
|
69.3 |
% |
|
|
72.6 |
% |
|
|
71.0 |
% |
|
|
74.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
GAAP total operating expenses |
|
$ |
505,040 |
|
|
$ |
523,671 |
|
|
$ |
1,991,180 |
|
|
$ |
1,958,955 |
|
Stock-based compensation |
|
|
(33,029 |
) |
|
|
(28,380 |
) |
|
|
(126,929 |
) |
|
|
(108,703 |
) |
Amortization of intangibles (1) |
|
|
(810 |
) |
|
|
(933 |
) |
|
|
(3,417 |
) |
|
|
(3,668 |
) |
Restructuring and other charges (3) |
|
|
(11,453 |
) |
|
|
— |
|
|
|
(11,453 |
) |
|
|
— |
|
Acquisition-related costs (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(104 |
) |
Non-GAAP total operating expenses |
|
$ |
459,748 |
|
|
$ |
494,358 |
|
|
$ |
1,849,381 |
|
|
$ |
1,846,480 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP income from operations |
|
$ |
112,661 |
|
|
$ |
220,892 |
|
|
$ |
642,595 |
|
|
$ |
976,400 |
|
Stock-based compensation |
|
|
34,688 |
|
|
|
29,838 |
|
|
|
133,367 |
|
|
|
114,336 |
|
Amortization of intangibles (1) |
|
|
3,420 |
|
|
|
3,731 |
|
|
|
13,551 |
|
|
|
13,170 |
|
Restructuring and other charges (2),(3) |
|
|
14,319 |
|
|
|
— |
|
|
|
14,319 |
|
|
|
— |
|
Acquisition-related costs (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
Non-GAAP income from operations |
|
$ |
165,088 |
|
|
$ |
254,461 |
|
|
$ |
803,832 |
|
|
$ |
1,104,010 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP operating margin |
|
|
12.5 |
% |
|
|
21.4 |
% |
|
|
17.2 |
% |
|
|
24.7 |
% |
Non-GAAP operating margin |
|
|
18.3 |
% |
|
|
24.7 |
% |
|
|
21.5 |
% |
|
|
27.9 |
% |
|
|
|
|
|
|
|
|
|
||||||||
GAAP total interest income and other income (expense), net |
|
$ |
2,660 |
|
|
$ |
(880 |
) |
|
$ |
(43,538 |
) |
|
$ |
36,023 |
|
Arbitration award gain (5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(43,403 |
) |
Non-GAAP total interest income and other income (expense), net |
|
$ |
2,660 |
|
|
$ |
(880 |
) |
|
$ |
(43,538 |
) |
|
$ |
(7,380 |
) |
|
|
|
|
|
|
|
|
|
||||||||
GAAP net income before provision for income taxes |
|
$ |
115,321 |
|
|
$ |
220,012 |
|
|
$ |
599,057 |
|
|
$ |
1,012,423 |
|
Stock-based compensation |
|
|
34,688 |
|
|
|
29,838 |
|
|
|
133,367 |
|
|
|
114,336 |
|
Amortization of intangibles (1) |
|
|
3,420 |
|
|
|
3,731 |
|
|
|
13,551 |
|
|
|
13,170 |
|
Restructuring and other charges (2),(3) |
|
|
14,319 |
|
|
|
— |
|
|
|
14,319 |
|
|
|
— |
|
Acquisition-related costs (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
Arbitration award gain (5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(43,403 |
) |
Non-GAAP net income before provision for income taxes |
|
$ |
167,748 |
|
|
$ |
253,581 |
|
|
$ |
760,294 |
|
|
$ |
1,096,630 |
|
|
||||||||||||||||
UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED |
||||||||||||||||
FINANCIAL MEASURES OTHER THAN CONSTANT CURRENCY CONTINUED |
||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
GAAP provision for income taxes |
|
$ |
73,546 |
|
|
$ |
29,051 |
|
|
$ |
237,484 |
|
|
$ |
240,403 |
|
Tax impact on non-GAAP adjustments (6) |
|
|
(39,997 |
) |
|
|
49 |
|
|
|
(85,426 |
) |
|
|
(37,312 |
) |
Non-GAAP provision for income taxes (6) |
|
$ |
33,549 |
|
|
$ |
29,100 |
|
|
$ |
152,058 |
|
|
$ |
203,091 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP effective tax rate |
|
|
63.8 |
% |
|
|
13.2 |
% |
|
|
39.6 |
% |
|
|
23.7 |
% |
Non-GAAP effective tax rate (6) |
|
|
20.0 |
% |
|
|
11.5 |
% |
|
|
20.0 |
% |
|
|
18.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
GAAP net income |
|
$ |
41,775 |
|
|
$ |
190,961 |
|
|
$ |
361,573 |
|
|
$ |
772,020 |
|
Stock-based compensation |
|
|
34,688 |
|
|
|
29,838 |
|
|
|
133,367 |
|
|
|
114,336 |
|
Amortization of intangibles (1) |
|
|
3,420 |
|
|
|
3,731 |
|
|
|
13,551 |
|
|
|
13,170 |
|
Restructuring and other charges (2),(3) |
|
|
14,319 |
|
|
|
— |
|
|
|
14,319 |
|
|
|
— |
|
Acquisition-related costs (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
Arbitration award gain (5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(43,403 |
) |
Tax impact on non-GAAP adjustments (6) |
|
|
39,997 |
|
|
|
(49 |
) |
|
|
85,426 |
|
|
|
37,312 |
|
Non-GAAP net income (6) |
|
$ |
134,199 |
|
|
$ |
224,481 |
|
|
$ |
608,236 |
|
|
$ |
893,539 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP diluted net income per share |
|
$ |
0.54 |
|
|
$ |
2.40 |
|
|
$ |
4.61 |
|
|
$ |
9.69 |
|
Non-GAAP diluted net income per share (6) |
|
$ |
1.73 |
|
|
$ |
2.83 |
|
|
$ |
7.76 |
|
|
$ |
11.22 |
|
|
|
|
|
|
|
|
|
|
||||||||
Shares used in computing diluted net income per share |
|
|
77,683 |
|
|
|
79,431 |
|
|
|
78,420 |
|
|
|
79,670 |
|
Notes: |
||
(1) |
Amortization of intangible assets related to certain acquisitions |
|
(2) |
During the fourth quarter of 2022, we initiated a restructuring plan to increase efficiencies across the organization and lower the overall cost structure. Restructuring charges recorded to Cost of net revenues relate primarily to severance costs and impairment charges. |
|
(3) |
Restructuring and other charges recorded to Operating expenses primarily relate to severance costs, lease termination charges and asset impairments. |
|
(4) |
Acquisition-related costs for professional fees related to our 2020 exocad acquisition |
|
(5) |
Gain from the SDC arbitration award regarding the value of Align's capital account balance |
|
(6) |
In Q4'22, we changed our methodology for the computation of the non-GAAP effective tax rate to a long-term projected tax rate and have given effect to the new methodology from |
Refer to "About Non-GAAP Financial Measures" section of press release.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED
RECAST OF FINANCIAL MEASURES FOR PRIOR PERIODS IN 2022 FOR TAX RATE CHANGE
(in thousands, except per share data)
In Q4'22, we changed our methodology for the computation of the non-GAAP effective tax rate to a long-term projected tax rate as our management believes shifting to a long-term projected tax rate provides better consistency across reporting periods. Our previous methodology for calculating non-GAAP effective tax rate included certain non-recurring and period-specific items that produced, between periods, results management does not believe are reflective of the Company's long-term effective tax rate. We have given effect to the new methodology effective
For the convenience of the reader, we have presented the relevant sections of the GAAP to non-GAAP reconciliation, for all the quarterly periods in 2022, both before and after the non-GAAP effective tax rate methodology change described above.
|
||||||||||||||||||||||||||||
UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED |
||||||||||||||||||||||||||||
RECAST OF FINANCIAL MEASURES FOR PRIOR PERIODS IN 2022 FOR TAX RATE CHANGE CONTINUED |
||||||||||||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||||||||||
Table below shows the information before the tax rate change: |
||||||||||||||||||||||||||||
|
|
Three
|
|
Three
|
|
Six
|
|
Three
|
|
Nine
|
|
Three
|
|
Year
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
GAAP provision for income taxes |
|
$ |
53,188 |
|
|
$ |
60,809 |
|
|
$ |
113,997 |
|
|
$ |
49,941 |
|
|
$ |
163,938 |
|
|
$ |
73,546 |
|
|
$ |
237,484 |
|
Tax impact on non-GAAP adjustments |
|
|
10,788 |
|
|
|
4,317 |
|
|
|
15,105 |
|
|
|
3,300 |
|
|
|
18,405 |
|
|
|
22,531 |
|
|
|
40,936 |
|
Tax related non-GAAP items |
|
|
(10,169 |
) |
|
|
(11,065 |
) |
|
|
(21,234 |
) |
|
|
(682 |
) |
|
|
(21,916 |
) |
|
|
(18,568 |
) |
|
|
(40,484 |
) |
Non-GAAP provision for income taxes |
|
$ |
53,807 |
|
|
$ |
54,061 |
|
|
$ |
107,868 |
|
|
$ |
52,559 |
|
|
$ |
160,427 |
|
|
$ |
77,509 |
|
|
$ |
237,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP effective tax rate |
|
|
28.4 |
% |
|
|
35.0 |
% |
|
|
31.6 |
% |
|
|
40.7 |
% |
|
|
33.9 |
% |
|
|
63.8 |
% |
|
|
39.6 |
% |
Non-GAAP effective tax rate |
|
|
24.2 |
% |
|
|
25.6 |
% |
|
|
24.9 |
% |
|
|
33.1 |
% |
|
|
27.1 |
% |
|
|
46.2 |
% |
|
|
31.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP net income |
|
$ |
134,298 |
|
|
$ |
112,800 |
|
|
$ |
247,098 |
|
|
$ |
72,700 |
|
|
$ |
319,798 |
|
|
$ |
41,775 |
|
|
$ |
361,573 |
|
Stock-based compensation |
|
|
31,621 |
|
|
|
34,140 |
|
|
|
65,761 |
|
|
|
32,918 |
|
|
|
98,679 |
|
|
|
34,688 |
|
|
|
133,367 |
|
Amortization of intangibles |
|
|
3,397 |
|
|
|
3,265 |
|
|
|
6,662 |
|
|
|
3,469 |
|
|
|
10,131 |
|
|
|
3,420 |
|
|
|
13,551 |
|
Restructuring and other charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,319 |
|
|
|
14,319 |
|
Tax impact on non-GAAP adjustments |
|
|
(10,788 |
) |
|
|
(4,317 |
) |
|
|
(15,105 |
) |
|
|
(3,300 |
) |
|
|
(18,405 |
) |
|
|
(22,531 |
) |
|
|
(40,936 |
) |
Tax related non-GAAP items |
|
|
10,169 |
|
|
|
11,065 |
|
|
|
21,234 |
|
|
|
682 |
|
|
|
21,916 |
|
|
|
18,568 |
|
|
|
40,484 |
|
Non-GAAP net income |
|
$ |
168,697 |
|
|
$ |
156,953 |
|
|
$ |
325,650 |
|
|
$ |
106,469 |
|
|
$ |
432,119 |
|
|
$ |
90,239 |
|
|
$ |
522,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP diluted net income per share |
|
$ |
1.70 |
|
|
$ |
1.44 |
|
|
$ |
3.13 |
|
|
$ |
0.93 |
|
|
$ |
4.07 |
|
|
$ |
0.54 |
|
|
$ |
4.61 |
|
Non-GAAP diluted net income per share |
|
$ |
2.13 |
|
|
$ |
2.00 |
|
|
$ |
4.13 |
|
|
$ |
1.36 |
|
|
$ |
5.49 |
|
|
$ |
1.16 |
|
|
$ |
6.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Shares used in computing diluted net income per share |
|
|
79,193 |
|
|
|
78,545 |
|
|
|
78,840 |
|
|
|
78,237 |
|
|
|
78,652 |
|
|
|
77,683 |
|
|
|
78,420 |
|
Refer to "About Non-GAAP Financial Measures" section of press release.
|
||||||||||||||||||||||||||||
UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED |
||||||||||||||||||||||||||||
RECAST OF FINANCIAL MEASURES FOR PRIOR PERIODS IN 2022 FOR TAX RATE CHANGE CONTINUED |
||||||||||||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||||||||||
Table below shows the information after the tax rate change: |
||||||||||||||||||||||||||||
|
|
Three
|
|
Three
|
|
Six
|
|
Three
|
|
Nine
|
|
Three
|
|
Year
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
GAAP provision for income taxes |
|
$ |
53,188 |
|
|
$ |
60,809 |
|
|
$ |
113,997 |
|
|
$ |
49,941 |
|
|
$ |
163,938 |
|
|
$ |
73,546 |
|
|
|
237,484 |
|
Tax impact on non-GAAP adjustments |
|
|
(8,687 |
) |
|
|
(18,606 |
) |
|
|
(27,293 |
) |
|
|
(18,136 |
) |
|
|
(45,429 |
) |
|
|
(39,997 |
) |
|
|
(85,426 |
) |
Non-GAAP provision for income taxes |
|
$ |
44,501 |
|
|
$ |
42,203 |
|
|
$ |
86,704 |
|
|
$ |
31,805 |
|
|
$ |
118,509 |
|
|
$ |
33,549 |
|
|
$ |
152,058 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP effective tax rate |
|
|
28.4 |
% |
|
|
35.0 |
% |
|
|
31.6 |
% |
|
|
40.7 |
% |
|
|
33.9 |
% |
|
|
63.8 |
% |
|
|
39.6 |
% |
Non-GAAP effective tax rate |
|
|
20.0 |
% |
|
|
20.0 |
% |
|
|
20.0 |
% |
|
|
20.0 |
% |
|
|
20.0 |
% |
|
|
20.0 |
% |
|
|
20.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP net income |
|
$ |
134,298 |
|
|
$ |
112,800 |
|
|
$ |
247,098 |
|
|
$ |
72,700 |
|
|
$ |
319,798 |
|
|
$ |
41,775 |
|
|
$ |
361,573 |
|
Stock-based compensation |
|
|
31,621 |
|
|
|
34,140 |
|
|
|
65,761 |
|
|
|
32,918 |
|
|
|
98,679 |
|
|
|
34,688 |
|
|
|
133,367 |
|
Amortization of intangibles |
|
|
3,397 |
|
|
|
3,265 |
|
|
|
6,662 |
|
|
|
3,469 |
|
|
|
10,131 |
|
|
|
3,420 |
|
|
|
13,551 |
|
Restructuring and other charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,319 |
|
|
|
14,319 |
|
Tax impact on non-GAAP adjustments |
|
|
8,687 |
|
|
|
18,606 |
|
|
|
27,293 |
|
|
|
18,136 |
|
|
|
45,429 |
|
|
|
39,997 |
|
|
|
85,426 |
|
Non-GAAP net income |
|
$ |
178,003 |
|
|
$ |
168,811 |
|
|
$ |
346,814 |
|
|
$ |
127,223 |
|
|
$ |
474,037 |
|
|
$ |
134,199 |
|
|
$ |
608,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP diluted net income per share |
|
$ |
1.70 |
|
|
$ |
1.44 |
|
|
$ |
3.13 |
|
|
$ |
0.93 |
|
|
$ |
4.07 |
|
|
$ |
0.54 |
|
|
$ |
4.61 |
|
Non-GAAP diluted net income per share |
|
$ |
2.25 |
|
|
$ |
2.15 |
|
|
$ |
4.40 |
|
|
$ |
1.63 |
|
|
$ |
6.03 |
|
|
$ |
1.73 |
|
|
$ |
7.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Shares used in computing diluted net income per share |
|
|
79,193 |
|
|
|
78,545 |
|
|
|
78,840 |
|
|
|
78,237 |
|
|
|
78,652 |
|
|
|
77,683 |
|
|
|
78,420 |
|
Refer to "About Non-GAAP Financial Measures" section of press release.
Q1 2023 - GAAP TO NON-GAAP RECONCILIATION |
||||
|
|
Three Months Ended |
|
Year Ended |
|
|
|
|
|
GAAP Operating Margin |
|
~ |
|
slightly above |
Stock-based compensation |
|
~ |
|
~ |
Amortization of intangibles (1) |
|
~ |
|
~ |
Non-GAAP Operating Margin |
|
~ |
|
slightly above |
(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/20230201005433/en/
(909) 833-5839
mvalente@aligntech.com
(828) 551-4201
sarah.johnson@zenogroup.com
Source:
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