Better than expected revenues and operating
margins reflect improving trends across regions
Q2’23 Clear Aligner cases for teenagers
increased 7% sequentially and 10% year over year, driven by
momentum in both Submitters and Utilization and continued growth
from Invisalign First™
- Q2'23 total revenues of $1.0 billion, increased 6.3%
sequentially and 3.4% year-over-year, and diluted net income per
share of $1.46, non-GAAP diluted net income per share of $2.22
- Q2'23 revenues were favorably impacted by foreign exchange of
approximately $1.3 million sequentially and unfavorably impacted by
approximately $19.4 million year-over-year(1)
- Q2'23 operating income of $171.9 million and operating margin
of 17.2%, non-GAAP operating margin of 21.3%
- Q2'23 GAAP operating margin was unfavorably impacted by foreign
exchange by approximately 1.1 points year-over-year(1)
- Q2'23 Clear Aligner revenues of $832.7 million, increased 5.4%
sequentially and 4.3% year-over-year, and Clear Aligner volume of
604.4 thousand cases, increased 5.0% sequentially and 0.9%
year-over-year
- Q2'23 Clear Aligner volume for teens increased 7.0%
sequentially and increased 9.7% year-over-year to 194.5 thousand
cases
- Q2'23 Imaging Systems and CAD/CAM Services revenues of $169.5
million, increased 10.5% sequentially
Align Technology, Inc. (Nasdaq: ALGN), a leading global medical
device company that designs, manufactures, and sells the
Invisalign® System of clear aligners, iTero™ intraoral scanners,
and exocad™ CAD/CAM software for digital orthodontics and
restorative dentistry, today reported financial results for the
second quarter ("Q2'23"). Q2'23 total revenues were $1,002.2
million, up 6.3% sequentially and up 3.4% year-over-year. Q2'23
Clear Aligner revenues were $832.7 million, up 5.4% sequentially
and up 4.3% year-over-year. Q2'23 Clear Aligner volume was up 5.0%
sequentially and up 0.9% year-over-year. Q2'23 Imaging Systems and
CAD/CAM Services revenues were $169.5 million, up 10.5%
sequentially and down 1.0% year-over-year. Q2’23 Clear Aligner
revenues were favorably impacted by foreign exchange of
approximately $1.2 million or 0.1% sequentially and unfavorably
impacted by approximately $16.3 million or 1.9% year-over-year.(1)
Q2'23 Imaging Systems and CAD/CAM Services revenues were favorably
impacted by foreign exchange of approximately $0.1 million or 0.1%
sequentially and unfavorably impacted by approximately $3.1 million
or 1.8% year-over-year.(1) Q2'23 operating income was $171.9
million resulting in an operating margin of 17.2%. Q2'23 operating
margin was unfavorably impacted by foreign exchange by
approximately 1.1 points year-over-year.(1) Q2'23 net income was
$111.8 million, or $1.46 per diluted share. On a non-GAAP basis,
Q2'23 net income was $170.4 million, or $2.22 per diluted
share.
(1) Non-GAAP measure
Commenting on Align's Q2'23 results, Align Technology President
and CEO Joe Hogan said, "Overall, I’m pleased to report another
better than expected quarter with Q2 revenues and operating margins
that exceeded our guidance. Q2 results reflect improving trends
across regions and strength in teen and younger patient volumes,
driven by momentum in both submitters and utilization as well as
continued growth from Invisalign First™. In the teen segment, which
represents the largest portion of the 21 million annual orthodontic
case starts, 195 thousand teens and kids started treatment with
Invisalign® clear aligners during the second quarter, an increase
of 7% sequentially and 10% year-over-year, reflecting the highest
annual growth rate in the teen segment since 2021."
Financial Summary - Second Quarter
Fiscal 2023
Q2'23
Q1'23
Q2'22
Q/Q Change
Y/Y Change
Clear Aligner Shipments
604,445
575,395
598,990
+5.0%
+0.9%
GAAP
Net Revenues
$1,002.2M
$943.1M
$969.6M
+6.3%
+3.4%
Clear Aligner
$832.7M
$789.8M
$798.4M
+5.4%
+4.3%
Imaging Systems and CAD/CAM Services
$169.5M
$153.3M
$171.2M
+10.5%
(1.0%)
Net Income
$111.8M
$87.8M
$112.8M
+27.4%
(0.9%)
Diluted EPS
$1.46
$1.14
$1.44
+$0.32
+$0.02
Non-GAAP
Net Income
$170.4M
$140.6M
$168.8M
+21.2%
+1.0%
Diluted EPS
$2.22
$1.82
$2.15
+$0.40
+$0.07
Changes and percentages are based on actual
values. Certain tables may not sum or recalculate due to
rounding.
As of June 30, 2023, we had over $1.0 billion in cash, cash
equivalents and short-term and long-term marketable securities
compared to over $921.4 million as of March 31, 2023. In Q2, we
completed a $75 million equity investment in Heartland Dental, a
multidisciplinary DSO with GP and Ortho practices across the US. As
of June 30, 2023, we had $300.0 million available under a revolving
line of credit. Currently $1.0 billion remains available for
repurchases under the 2023 $1.0 Billion Stock Repurchase
Program.
Q2'23 Announcement
Highlights
- On June 5, 2023, we announced that Align Technology awarded
eleven research grants totaling $275,000 to universities worldwide
for advancing orthodontic and dental research under Align's
thirteenth Annual Research Award Program. Align is committed to the
advancement of the orthodontic and dental fields and we are pleased
to continue to support university research around the world. All
award applications received were first reviewed and prioritized in
a blind evaluation by an independent academic committee. The final
recipients were then determined by Align Technology.
- On April 21, 2023, we announced that Align Technology was
honored as a “Technology Partner of the Year” by Junior Achievement
of Northern California at the Junior Achievement of Northern
California 2023 Business Hall of Fame celebration event held in San
Francisco. Julie Paulsen, Align Technology vice president,
Corporate Social Responsibility, was also nominated as a 2023
“Junior Achievement of Northern California Volunteer of the Year,”
chosen along with 11 other volunteers from among 1,000
volunteers.
Fiscal 2023 Business
Outlook
For 2023, Align provides the following business outlook:
- For Q3'23, we anticipate our WW Revenue to be in the range of
$990M to $1,010M, up approximately 12% year-over-year at the
midpoint.
- We expect our Q3’23 GAAP and Non-GAAP operating margin to be
slightly up from Q2'23, as we continue to strategically prioritize
our investments in R&D and go-to-market activities to drive
growth.
- For full year 2023, assuming no circumstances occur that are
beyond our control, we anticipate our 2023 WW Revenues to be in the
range of $3.970B to $3.990B.
- We also expect our full year 2023 GAAP operating margin to be
slightly above 17% and our 2023 Non-GAAP operating margin to be
slightly above 21%, a 1-point improvement from the guidance we
provided in April 2023.
- For 2023, we expect investments in capital expenditures to be
approximately $200M. Capital expenditures are expected to primarily
relate to building construction and improvements as well as
manufacturing capacity in support of our continued international
expansion.
Align Web Cast and Conference
Call
We will host a conference call today, July 26, 2023, at 4:30
p.m. ET, 1:30 p.m. PT, to review our second quarter 2023 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,
please dial 833-470-1428 with access code 741941. An archived audio
webcast will be available beginning approximately one hour after
the call's conclusion and will remain available for approximately
one month. Additionally, a telephonic replay of the call can be
accessed by dialing 929-458-6194 with access code 342791. For
international callers, please dial 44-204-525-0658 and use the same
access code referenced above. The telephonic replay will be
available through 5:30 p.m. ET, 2:30 p.m. PT, on August 9,
2023.
About Non-GAAP Financial
Measures
To supplement our condensed consolidated financial statements,
which are prepared and presented in accordance with generally
accepted accounting principles in the United States ("GAAP"), we
may provide investors with certain non-GAAP financial measures
which may include constant currency net revenues, constant currency
gross profit, constant currency gross margin, constant currency
income from operations, constant currency operating margin, gross
profit, gross margin, operating expenses, income from operations,
operating margin, interest income and other income (expense), net,
net income before provision for income taxes, provision for income
taxes, effective tax rate, net income and/or diluted net income per
share, which excludes certain items that may not be indicative of
our fundamental operating performance including, foreign currency
exchange rate impacts and discrete cash and non-cash charges or
gains that are included in the most directly comparable GAAP
measure. In Q4'22, we changed to a long-term non-GAAP effective 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. This new methodology became effective January 1, 2022 and we
recast prior periods in 2022. Unless otherwise indicated, when we
refer to non-GAAP financial measures they will exclude the effects
of stock-based compensation, amortization of certain acquired
intangibles, restructuring and other charges, acquisition-related
costs, and arbitration award gain, and associated tax impacts.
Our management believes that the use of certain non-GAAP
financial measures provides meaningful supplemental information
regarding our recurring core operating performance. We believe that
both management and investors benefit from referring to these
non-GAAP financial measures in assessing our performance and when
planning, forecasting, and analyzing future periods. We believe
these non-GAAP financial measures are useful to investors both
because (1) they allow for greater transparency with respect to key
metrics used by management in its financial and operational
decision-making and (2) they are used by our institutional
investors and the analyst community to help them analyze the
performance of our business.
There are limitations to using non-GAAP financial measures as
they are not prepared in accordance with GAAP and may be different
from non-GAAP financial measures used by other companies. The
non-GAAP financial measures are limited in value because they
exclude certain items that may have a material impact upon our
reported financial results. In addition, they are subject to
inherent limitations as they reflect the exercise of judgments by
management about which charges are excluded from the non-GAAP
financial measures. We compensate for these limitations by
analyzing current and future results on a GAAP as well as a
non-GAAP basis and 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 approximately 247 thousand doctor
customers and are key to accessing Align’s 500 million consumer
market opportunity worldwide. Over the past 26 years, Align has
helped doctors treat over 15.7 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, and Align Digital Platform 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 market opportunities, our ability to deliver
products and technologies, anticipated clear aligner volumes and
ASP, anticipated Systems and Services revenue, our expectations for
Q3'23 revenues and GAAP and Non-GAAP operating margin, and 2023
revenues and GAAP and Non-GAAP operating margin, as well as capital
expenditures. Forward-looking statements contained in this news
release relating to expectations about future events or results are
based upon information available to Align as of the date hereof.
Readers are cautioned that these forward-looking statements reflect
our best judgments based on currently known facts and circumstances
and are subject to risks, uncertainties, and assumptions that are
difficult to predict. As a result, actual results may differ
materially and adversely from those expressed in any
forward-looking statement.
Factors that might cause such a difference include, but are not
limited to:
- macroeconomic conditions, including inflation, fluctuations in
currency exchange rates, rising interest rates, market volatility,
weakness in general economic conditions and recessions and the
impact of efforts by central banks and federal, state and local
governments to combat inflation and recession;
- customer and consumer purchasing behavior and changes in
consumer spending habits as a result of, among other things,
prevailing macro-economic conditions, levels of employment,
salaries and wages, debt obligations, discretionary income,
inflationary pressure, declining consumer confidence, and the
military conflict in Ukraine;
- 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,
assets, and research and development activities inside and outside
of Russia;
- variations in our product mix, product adoption, and selling
prices regionally and globally;
- competition from existing and new competitors;
- the timing and availability and cost of raw materials,
components, products and other shipping and supply chain
constraints and disruptions;
- unexpected or rapid changes in the growth or decline of our
domestic and/or international markets;
- rapidly evolving and groundbreaking advances that fundamentally
alter the dental industry or the way new and existing customers
market and provide products and services to consumers;
- the ability to protect our intellectual property rights;
- continued compliance with regulatory requirements;
- 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 in China;
- the risks relating to our ability to sustain or increase
profitability or revenue growth in future periods (or minimize
declines) while controlling expenses;
- expansion of our business and products;
- the impact of excess or constrained capacity at our
manufacturing and treat operations facilities and pressure on our
internal systems and personnel;
- the compromise of our systems or networks, including any
customer and/or patient data contained therein, for any
reason;
- the timing of case submissions from our doctor customers within
a quarter as well as an increased manufacturing costs per
case;
- foreign operational, political, military and other risks
relating to our operations; and
- the loss of key personnel, labor shortages or work stoppages
for us or our suppliers.
The foregoing and other risks are detailed from time to time in
our periodic reports filed with the Securities and Exchange
Commission, including, but not limited to, our Annual Report on
Form 10-K for the year ended December 31, 2022, which was filed
with the Securities and Exchange Commission ("SEC") on February 27,
2023, and our latest Quarterly Report on Form 10-Q for the quarter
ended March 31, 2023, which was filed with the SEC on May 5, 2023.
Align undertakes no obligation to revise or update publicly any
forward-looking statements for any reason.
ALIGN TECHNOLOGY, INC. UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
Net revenues
$
1,002,173
$
969,553
$
1,945,320
$
1,942,772
Cost of net revenues
288,564
281,994
571,057
545,867
Gross profit
713,609
687,559
1,374,263
1,396,905
Operating expenses:
Selling, general and administrative
453,193
426,398
892,884
865,855
Research and development
88,485
72,965
175,932
144,772
Total operating expenses
541,678
499,363
1,068,816
1,010,627
Income from operations
171,931
188,196
305,447
386,278
Interest income and other income
(expense), net:
Interest income
4,421
245
6,758
922
Other income (expense), net
(4,763
)
(14,832
)
(5,992
)
(26,105
)
Total interest income and other income
(expense), net
(342
)
(14,587
)
766
(25,183
)
Net income before provision for income
taxes
171,589
173,609
306,213
361,095
Provision for income taxes
59,775
60,809
106,601
113,997
Net income
$
111,814
$
112,800
$
199,612
$
247,098
Net income per share:
Basic
$
1.46
$
1.44
$
2.60
$
3.15
Diluted
$
1.46
$
1.44
$
2.60
$
3.13
Shares used in computing net income per
share:
Basic
76,524
78,395
76,722
78,568
Diluted
76,689
78,545
76,897
78,840
ALIGN TECHNOLOGY, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS (in thousands)
June 30, 2023
December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents
$
951,956
$
942,050
Marketable securities, short-term
55,805
57,534
Accounts receivable, net
908,395
859,685
Inventories
312,736
338,752
Prepaid expenses and other current
assets
236,564
226,370
Total current assets
2,465,456
2,424,391
Marketable securities, long-term
26,023
41,978
Property, plant and equipment, net
1,279,042
1,231,855
Operating lease right-of-use assets,
net
125,881
118,880
Goodwill
414,765
407,551
Intangible assets, net
89,296
95,720
Deferred tax assets
1,605,926
1,571,746
Other assets
138,161
55,826
Total assets
$
6,144,550
$
5,947,947
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
110,155
$
127,870
Accrued liabilities
600,163
454,374
Deferred revenues
1,396,747
1,343,643
Total current liabilities
2,107,065
1,925,887
Income tax payable
113,309
124,393
Operating lease liabilities
104,650
100,334
Other long-term liabilities
181,225
195,975
Total liabilities
2,506,249
2,346,589
Total stockholders’ equity
3,638,301
3,601,358
Total liabilities and stockholders’
equity
$
6,144,550
$
5,947,947
ALIGN TECHNOLOGY, INC. UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands)
Six Months Ended June
30,
2023
2022
CASH FLOWS FROM OPERATING
ACTIVITIES
Net cash provided by operating
activities
$
451,672
$
157,543
CASH FLOWS FROM INVESTING
ACTIVITIES
Net cash used in investing activities
(178,314
)
(72,078
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Net cash used in financing activities
(259,892
)
(312,396
)
Effect of foreign exchange rate changes on
cash, cash equivalents, and restricted cash
(3,523
)
4,978
Net (decrease) increase in cash, cash
equivalents, and restricted cash
9,943
(221,953
)
Cash, cash equivalents, and restricted
cash at beginning of the period
942,355
1,100,139
Cash, cash equivalents, and restricted
cash at end of the period
$
952,298
$
878,186
ALIGN TECHNOLOGY, INC. INVISALIGN BUSINESS METRICS
Q1
Q2
Q3
Q4
Q1
Q2
2022
2022
2022
2022
2023
2023
Number of Invisalign Trained Doctors
Cases Were Shipped To
82,440
82,275
84,410
82,865
82,685
83,385
Invisalign Trained Doctor Utilization
Rates*:
North America
9.2
9.3
8.9
8.8
9.0
9.3
North American Orthodontists
26.8
26.8
25.9
24.8
26.2
26.3
North American GP Dentists
5.0
5.1
4.8
5.0
4.9
5.2
International
6.4
6.4
6.0
6.5
6.2
6.6
Total Utilization Rates**
7.3
7.3
6.8
7.0
7.0
7.2
Clear Aligner Revenue Per Case
Shipment***:
$
1,350
$
1,335
$
1,270
$
1,255
$
1,375
$
1,380
* # 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
ALIGN TECHNOLOGY, INC. STOCK-BASED COMPENSATION (in
thousands)
Q1
Q2
Q3
Q4
Fiscal
Q1
Q2
2022
2022
2022
2022
2022
2023
2023
Stock-based Compensation (SBC):
SBC included in Gross Profit
$
1,514
$
1,614
$
1,651
$
1,659
$
6,438
$
1,807
$
1,901
SBC included in Operating Expenses
30,107
32,526
31,267
33,029
126,929
35,928
35,959
Total SBC
$
31,621
$
34,140
$
32,918
$
34,688
$
133,367
$
37,735
$
37,860
ALIGN TECHNOLOGY, INC. UNAUDITED GAAP TO NON-GAAP RECONCILIATION
CONSTANT CURRENCY NET REVENUES (in thousands, except
percentages)
Sequential constant currency analysis:
Three Months Ended
June 30, 2023
March 31, 2023
Impact % of Revenue
GAAP net revenues
$
1,002,173
$
943,147
Constant currency impact (1)
(1,346
)
(0.1
)%
Constant currency net revenues
(1)
$
1,000,827
GAAP Clear Aligner net revenues
$
832,674
$
789,804
Clear Aligner constant currency impact
(1)
(1,213
)
(0.1
)%
Clear Aligner constant currency net
revenues (1)
$
831,461
GAAP Imaging Systems and CAD/CAM
Services net revenues
$
169,499
$
153,343
Imaging Systems and CAD/CAM Services
constant currency impact (1)
(133
)
(0.1
)%
Imaging Systems and CAD/CAM Services
constant currency net revenues (1)
$
169,366
Year-over-year constant currency analysis:
Three Months Ended
June 30,
2023
2022
Impact % of Revenue
GAAP net revenues
$
1,002,173
$
969,553
Constant currency impact (1)
19,381
1.9
%
Constant currency net revenues
(1)
$
1,021,554
GAAP Clear Aligner net revenues
$
832,674
$
798,398
Clear Aligner constant currency impact
(1)
16,325
1.9
%
Clear Aligner constant currency net
revenues (1)
$
848,999
GAAP Imaging Systems and CAD/CAM
Services net revenues
$
169,499
$
171,155
Imaging Systems and CAD/CAM Services
constant currency impact (1)
3,056
1.8
%
Imaging Systems and CAD/CAM Services
constant currency net revenues (1)
$
172,555
Note:
(1)
We define constant currency net revenues
as total net revenues excluding the effect of foreign exchange rate
movements and use it to determine the percentage for the constant
currency impact on net revenues on a sequential and year-over-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.
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
June 30, 2023
March 31, 2023
GAAP gross profit
$
713,609
$
660,654
Constant currency impact on net
revenues
(1,346
)
Constant currency gross profit
$
712,263
Three Months Ended
June 30, 2023
March 31, 2023
GAAP gross margin
71.2
%
70.0
%
Gross margin constant currency impact
(1)
—
Constant currency gross margin
(1)
71.2
%
Year-over-year constant currency analysis:
Three Months Ended
June 30,
2023
2022
GAAP gross profit
$
713,609
$
687,559
Constant currency impact on net
revenues
19,381
Constant currency gross profit
$
732,990
Three Months Ended
June 30,
2023
2022
GAAP gross margin
71.2
%
70.9
%
Gross margin constant currency impact
(1)
0.5
Constant currency gross margin
(1)
71.8
%
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.
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
June 30, 2023
March 31, 2023
GAAP income from operations
$
171,931
$
133,516
Income from operations constant currency
impact (1)
(483
)
Constant currency income from
operations (1)
$
171,448
Three Months Ended
June 30, 2023
March 31, 2023
GAAP operating margin
17.2
%
14.2
%
Operating margin constant currency impact
(2)
—
Constant currency operating margin
(2)
17.2
%
Year-over-year constant currency analysis:
Three Months Ended
June 30,
2023
2022
GAAP income from operations
$
171,931
$
188,196
Income from operations constant currency
impact (1)
14,835
Constant currency income from
operations (1)
$
186,766
Three Months Ended
June 30,
2023
2022
GAAP operating margin
17.2
%
19.4
%
Operating margin constant currency impact
(2)
1.1
Constant currency operating margin
(2)
18.3
%
Notes:
(1)
We define constant currency income from
operations as GAAP income from operations excluding the effect of
foreign exchange rate movements for GAAP net revenues and operating
expenses on a sequential and year-over-year basis. Constant
currency impact in dollars is calculated by translating the current
period GAAP net revenues and operating expenses using the foreign
currency exchange rates that were in effect during the previous
comparable period and subtracting it by the current period GAAP net
revenues and operating expenses.
(2)
We define constant currency operating
margin as constant currency income from operations as a percentage
of constant currency net revenues. Operating margin constant
currency impact is the increase or decrease in constant currency
operating margin compared to the GAAP operating margin.
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
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
GAAP gross profit
$
713,609
$
687,559
$
1,374,263
$
1,396,905
Stock-based compensation
1,901
1,614
3,708
3,128
Amortization of intangibles (1)
2,810
2,393
5,584
4,880
Restructuring charges (2)
—
—
(8
)
—
Non-GAAP gross profit
$
718,320
$
691,566
$
1,383,547
$
1,404,913
GAAP gross margin
71.2
%
70.9
%
70.6
%
71.9
%
Non-GAAP gross margin
71.7
%
71.3
%
71.1
%
72.3
%
GAAP total operating expenses
$
541,678
$
499,363
$
1,068,816
$
1,010,627
Stock-based compensation
(35,959
)
(32,526
)
(71,887
)
(62,633
)
Amortization of intangibles (1)
(879
)
(872
)
(1,746
)
(1,782
)
Restructuring and other charges (2)
123
—
300
—
Non-GAAP total operating
expenses
$
504,963
$
465,965
$
995,483
$
946,212
GAAP income from operations
$
171,931
$
188,196
$
305,447
$
386,278
Stock-based compensation
37,860
34,140
75,595
65,761
Amortization of intangibles (1)
3,689
3,265
7,330
6,662
Restructuring and other charges (2)
(123
)
—
(308
)
—
Non-GAAP income from operations
$
213,357
$
225,601
$
388,064
$
458,701
GAAP operating margin
17.2
%
19.4
%
15.7
%
19.9
%
Non-GAAP operating margin
21.3
%
23.3
%
19.9
%
23.6
%
GAAP total interest income and other
income (expense), net
$
(342
)
$
(14,587
)
$
766
$
(25,183
)
Arbitration award gain (5)
—
—
—
—
Non-GAAP total interest income and
other income (expense), net
$
(342
)
$
(14,587
)
$
766
$
(25,183
)
GAAP net income before provision for
income taxes
$
171,589
$
173,609
$
306,213
$
361,095
Stock-based compensation
37,860
34,140
75,595
65,761
Amortization of intangibles (1)
3,689
3,265
7,330
6,662
Restructuring and other charges (2)
(123
)
—
(308
)
—
Non-GAAP net income before provision
for income taxes
$
213,015
$
211,014
$
388,830
$
433,518
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
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
GAAP provision for income taxes
$
59,775
$
60,809
$
106,601
113,997
Tax impact on non-GAAP adjustments (3)
(17,209
)
(18,606
)
(28,835
)
(27,293
)
Non-GAAP provision for income taxes
(3)
$
42,566
$
42,203
$
77,766
$
86,704
GAAP effective tax rate
34.8
%
35.0
%
34.8
%
31.6
%
Non-GAAP effective tax rate (3)
20.0
%
20.0
%
20.0
%
20.0
%
GAAP net income
$
111,814
$
112,800
$
199,612
$
247,098
Stock-based compensation
37,860
34,140
75,595
65,761
Amortization of intangibles (1)
3,689
3,265
7,330
6,662
Restructuring and other charges (2)
(123
)
—
(308
)
—
Tax impact on non-GAAP adjustments (3)
17,209
18,606
28,835
27,293
Non-GAAP net income (3)
$
170,449
$
168,811
$
311,064
$
346,814
GAAP diluted net income per
share
$
1.46
$
1.44
$
2.60
$
3.13
Non-GAAP diluted net income per share
(3)
$
2.22
$
2.15
$
4.05
$
4.40
Shares used in computing diluted net
income per share
76,689
78,545
76,897
78,840
Notes:
(1)
Amortization of intangible assets related
to certain acquisitions.
(2)
Restructuring and other charges recorded
in Gross Profit and Operating expenses primarily relate to
severance costs, lease termination charges and asset
impairments.
(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 January 1, 2022, and recast previously reported quarterly
periods in 2022.
Refer to "About Non-GAAP Financial Measures" section of press
release.
ALIGN TECHNOLOGY, INC. Q3 2023 OUTLOOK - GAAP TO NON-GAAP
RECONCILIATION
Three Months Ended
September 30, 2023
GAAP operating margin
slightly above 17.2%
Stock-based compensation
~4%
Amortization of intangibles (1)
~0.4%
Non-GAAP operating margin
slightly above 21.3%
ALIGN TECHNOLOGY, INC. FISCAL 2023 OUTLOOK - GAAP TO NON-GAAP
RECONCILIATION
Year Ended
December 31, 2023
GAAP operating margin
slightly above 17%
Stock-based compensation
~4%
Amortization of intangibles (1)
~0.4%
Non-GAAP operating margin
slightly above 21%
(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/20230725457873/en/
Align Technology Madelyn Valente
(909) 833-5839 mvalente@aligntech.com
Zeno Group Sarah Johnson (828)
551-4201 sarah.johnson@zenogroup.com
Align Technology (NASDAQ:ALGN)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Align Technology (NASDAQ:ALGN)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024