Align Technology Announces Fourth Quarter and Fiscal 2024 Financial Results
Align Technology (ALGN) reported Q4 2024 total revenues of $995.2 million, up 4.0% year-over-year, with full-year 2024 revenues reaching $4.0 billion, up 3.5% from 2023. Q4 Clear Aligner volumes increased 6.1% year-over-year, while Systems and Services revenues grew 14.9%.
The company's Q4 operating margin was 14.5%, with diluted EPS of $1.39 (GAAP) and $2.44 (non-GAAP). Full-year 2024 operating margin was 15.2%, with diluted EPS of $5.62 (GAAP) and $9.33 (non-GAAP). Foreign exchange impacts negatively affected 2024 revenues by approximately $38.5 million.
Notable achievements include reaching 271,600 active Invisalign trained practitioners and treating 19.5 million patients globally. The company repurchased $352.9 million of common stock in 2024 and ended the year with $1,043.9 million in cash and cash equivalents.
Align Technology (ALGN) ha riportato ricavi totali del Q4 2024 pari a 995,2 milioni di dollari, con un aumento del 4,0% rispetto all'anno precedente, mentre i ricavi per l'intero anno 2024 hanno raggiunto 4,0 miliardi di dollari, in crescita del 3,5% rispetto al 2023. I volumi dei Clear Aligner nel Q4 sono aumentati del 6,1% rispetto all'anno precedente, mentre i ricavi da Sistemi e Servizi sono cresciuti del 14,9%.
Il margine operativo della società nel Q4 è stato del 14,5%, con un utile per azione diluito di 1,39 dollari (GAAP) e 2,44 dollari (non-GAAP). Il margine operativo per l'intero anno 2024 è stato del 15,2%, con un utile per azione diluito di 5,62 dollari (GAAP) e 9,33 dollari (non-GAAP). Gli impatti del cambiamento dei tassi di cambio hanno negativamente influenzato i ricavi del 2024 per circa 38,5 milioni di dollari.
Tra i risultati significativi si segnala il raggiungimento di 271.600 professionisti attivi formati su Invisalign e il trattamento di 19,5 milioni di pazienti a livello globale. L'azienda ha riacquistato azioni ordinarie per un valore di 352,9 milioni di dollari nel 2024 e ha concluso l'anno con 1.043,9 milioni di dollari in contante e equivalenti.
Align Technology (ALGN) reportó ingresos totales de $995.2 millones en el cuarto trimestre de 2024, un aumento del 4.0% interanual, con ingresos totales para el año 2024 alcanzando $4.0 mil millones, un incremento del 3.5% con respecto a 2023. Los volúmenes de Clear Aligner en el cuarto trimestre crecieron un 6.1% interanual, mientras que los ingresos por Sistemas y Servicios aumentaron un 14.9%.
El margen operativo de la empresa en el cuarto trimestre fue del 14.5%, con un EPS diluido de $1.39 (GAAP) y $2.44 (no-GAAP). El margen operativo del año completo 2024 fue del 15.2%, con un EPS diluido de $5.62 (GAAP) y $9.33 (no-GAAP). Los impactos del tipo de cambio afectaron negativamente los ingresos de 2024 en aproximadamente $38.5 millones.
Logros notables incluyen alcanzar 271,600 profesionales entrenados en Invisalign activos y tratar a 19.5 millones de pacientes en todo el mundo. La compañía recompró $352.9 millones en acciones comunes en 2024 y cerró el año con $1,043.9 millones en efectivo y equivalentes.
Align Technology (ALGN)는 2024년 4분기 총 수익이 9억 9천 520만 달러에 달하며, 작년 대비 4.0% 증가했다고 보고했습니다. 2024년 전체 연도 수익은 40억 달러에 이르며, 2023년 대비 3.5% 증가했습니다. 4분기 Clear Aligner의 물량은 작년 대비 6.1% 증가했으며, 시스템 및 서비스 수익은 14.9% 증가했습니다.
회사의 4분기 운영 마진은 14.5%였으며, 희석 주당순이익(EPS)은 $1.39 (GAAP) 및 $2.44 (비 GAAP)였습니다. 2024년 전체 연도 운영 마진은 15.2%로, 희석 EPS는 $5.62 (GAAP) 및 $9.33 (비 GAAP)였습니다. 환율 변동은 2024년 수익에 약 3천 850만 달러의 부정적인 영향을 미쳤습니다.
주목할 만한 성과로는 271,600명의 활성 Invisalign 훈련 전문의가 있으며, 전 세계적으로 1,950만 명의 환자를 치료했습니다. 이 회사는 2024년 동안 3억 5천 290만 달러의 보통주를 재매입했으며, 연말에 10억 4천 390만 달러의 현금 및 현금성 자산을 보유하고 있었습니다.
Align Technology (ALGN) a annoncé des revenus totaux pour le 4e trimestre 2024 s’élevant à 995,2 millions de dollars, soit une augmentation de 4,0 % par rapport à l’année précédente, avec des revenus annuels de 4,0 milliards de dollars pour 2024, en hausse de 3,5 % par rapport à 2023. Les volumes de Clear Aligner ont augmenté de 6,1 % d'une année sur l'autre, tandis que les revenus des systèmes et services ont augmenté de 14,9 %.
La marge opérationnelle de l'entreprise pour le 4e trimestre était de 14,5 %, avec un BPA dilué de 1,39 $ (GAAP) et 2,44 $ (non-GAAP). La marge opérationnelle pour l'année complète 2024 était de 15,2 %, avec un BPA dilué de 5,62 $ (GAAP) et 9,33 $ (non-GAAP). Les impacts des changements de taux de change ont eu un effet négatif sur les revenus de 2024 d'environ 38,5 millions de dollars.
Parmi les réalisations notables, on trouve l'atteinte de 271 600 praticiens formés à Invisalign actifs et le traitement de 19,5 millions de patients dans le monde. L'entreprise a racheté pour 352,9 millions de dollars d'actions ordinaires en 2024 et a terminé l'année avec 1 043,9 millions de dollars en espèces et équivalents.
Align Technology (ALGN) berichtete im 4. Quartal 2024 von Gesamterlösen in Höhe von 995,2 Millionen US-Dollar, was einem Anstieg von 4,0% im Vergleich zum Vorjahr entspricht. Die Gesamterlöse für das Jahr 2024 beliefen sich auf 4,0 Milliarden US-Dollar, was einem Anstieg von 3,5% gegenüber 2023 entspricht. Die Volumina der Clear Aligner stiegen im 4. Quartal um 6,1% im Jahresvergleich, während die Erlöse aus Systemen und Dienstleistungen um 14,9% zunahmen.
Die operative Marge des Unternehmens im 4. Quartal betrug 14,5%, mit einem verwässerten EPS von $1,39 (GAAP) und $2,44 (non-GAAP). Die operative Marge für das Gesamtjahr 2024 betrug 15,2%, mit einem verwässerten EPS von $5,62 (GAAP) und $9,33 (non-GAAP). Die Wechselkursveränderungen hatten negative Auswirkungen auf die Erlöse 2024 von etwa 38,5 Millionen US-Dollar.
Bemerkenswerte Erfolge umfassen das Erreichen von 271.600 aktiven Invisalign-ausgebildeten Praktikern und die Behandlung von 19,5 Millionen Patienten weltweit. Das Unternehmen hat 2024 Aktien im Wert von 352,9 Millionen US-Dollar zurückgekauft und das Jahr mit 1.043,9 Millionen US-Dollar an Bargeld und liquiden Mitteln abgeschlossen.
- Q4 revenues increased 4.0% year-over-year to $995.2 million
- Clear Aligner volumes grew 6.1% year-over-year in Q4
- Systems and Services revenue up 14.9% year-over-year in Q4
- Full-year revenue reached $4.0 billion, up 3.5% from 2023
- Non-GAAP net income increased 6.1% to $699.7 million in 2024
- Strong cash position of $1.04 billion with no debt
- Q4 GAAP net income decreased 16.3% year-over-year
- Full-year GAAP net income declined 5.3% to $421.4 million
- Foreign exchange negatively impacted 2024 revenues by $38.5 million
- Q4 Clear Aligner ASPs were lower than expected due to forex impact
Insights
Align Technology's Q4 2024 performance reveals a company executing well despite macro headwinds. The
Three key strategic developments merit attention:
- The
$37.0 million restructuring charge positions for margin expansion in 2025, targeting non-GAAP operating margin of22.5% - The
$30.0 million strategic investment in Smile Doctors strengthens market positioning in the critical orthodontic channel - The planned
3% price increase in Americas and EMEA regions, offset by fee eliminations, shows sophisticated pricing strategy
The 2025 outlook suggests cautious optimism with low single-digit revenue growth expected, impacted by
Q4 total revenues of
Q4 and FY2024 total revenues up
Q4 Clear Aligner volumes up
Q4 Systems and Services revenues up
-
2024 total revenues of
$4.0 billion $3.2 billion $768.9 million -
2024 revenues were unfavorably impacted by foreign exchange of approximately
$38.5 million -
2024 operating margin of
15.2% , non-GAAP operating margin of21.8% , and diluted net income per share of$5.62 $9.33 - 2024 operating margin was unfavorably impacted by foreign exchange of approximately 0.7 points compared to 2023(1)
-
Repurchased
$352.9 million -
Q4'24 total revenues of
$995.2 million $1.39 $2.44 -
Q4’24 diluted net income per share was unfavorably impacted by a stronger
U.S. dollar, which amounted to approximately$0.14 -
Q4'24 revenues were favorably impacted by foreign exchange of approximately
$0.8 million $0.9 million -
Q4'24 restructuring and other charges of
$37.0 million
2024 total revenues of
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
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 |
+ |
+ |
|||||
GAAP |
|
|
|
|
|
|||||
Net Revenues |
|
|
|
+ |
+ |
|||||
Clear Aligner |
|
|
|
+ |
+ |
|||||
Imaging Systems and CAD/CAM Services |
|
|
|
+ |
+ |
|||||
Net Income |
|
|
|
(10.5)% |
(16.3)% |
|||||
Diluted EPS |
|
|
|
|
|
|||||
Non-GAAP |
|
|
|
|
|
|||||
Net Income |
|
|
|
+ |
(1.0)% |
|||||
Diluted EPS |
|
|
|
|
|
|||||
Financial Summary - Fiscal 2024
|
2024 |
2023 |
Y/Y Change |
|||
Clear Aligner Shipments* |
2,493,735 |
2,408,520 |
+ |
|||
GAAP |
|
|
|
|||
Net Revenues |
|
|
+ |
|||
Clear Aligner |
|
|
+ |
|||
Imaging Systems and CAD/CAM Services |
|
|
+ |
|||
Net Income |
|
|
(5.3)% |
|||
Diluted EPS |
|
|
|
|||
Non-GAAP |
|
|
|
|||
Net Income |
|
|
+ |
|||
Diluted EPS |
|
|
|
|||
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
During the quarter, we completed a
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
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 theUnited 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 $3.75 million -
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 theAmericas 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 inHong 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 $222.94 $202.9 million $72.1 million $275.0 million -
As of January 31, 2025,
$225.0 million
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 theAmericas 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 theU.S. primarily for ourU.S. customers with the remainder eventually shipping to other international locations. TheU.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 fromMexico . 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 a25% tariff on goods originating inMexico , it is still more economical to ship clear aligners to theU.S. fromMexico , due to a variety of factors including the incremental additional freight costs incurred were we to ship from our Polish facility. RegardingChina , we currently manufacture our products inChina for the benefit of our customers inChina .
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 $985M - 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 $150M
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
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 andUkraine , 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 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 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. |
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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,
|
December 31,
|
||||
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* |
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
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,
|
||||||
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,
|
|||||||
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,
|
|||||||
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,
|
||||||||
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 |
|
Stock-based compensation |
~ |
|
Amortization of intangibles (1) |
~ |
|
Non-GAAP Operating Margin |
Approximately |
|
ALIGN TECHNOLOGY, INC. |
||
FISCAL 2025 OUTLOOK - GAAP TO NON-GAAP RECONCILIATION |
||
GAAP Operating Margin |
Approximately |
|
Stock-based compensation |
~ |
|
Amortization of intangibles (1) |
~ |
|
Non-GAAP Operating Margin |
Approximately |
|
(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
Source: Align Technology, Inc.
FAQ
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