Align Technology, Inc.
CEO : Mr. Joseph M. Hogan
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | -12.6% YoY | -43.8% | -77.7% | 2023-02-01 |
John Morici says,
Restructuring and Other Charges
- $14.3 million of restructuring and other charges incurred during Q4 2022
- $8.7 million of severance-related costs and $5.6 million of certain lease terminations and asset impairments
Non-GAAP Tax Rate
- In Q4 2022, changed to a long-term projected tax rate for non-GAAP provision for income taxes
- Recast non-GAAP results for provision for income taxes, net income and diluted net income per share for each reporting period in 2022 to reflect this change
Total Revenues
- Total revenues for Q4 2022 were $901.5 million
- Up 1.3% from the prior quarter and down 12.6% from the corresponding quarter a year ago
Clear Aligners
- Q4 revenues of $731.7 million were flat sequentially, primarily from lower ASPs, mostly offset by higher volumes
- On a year-over-year basis, Q4 Clear Aligner revenues were down 10.3% and primarily due to lower volumes and lower ASPs
Systems and Services Revenues
- Q4 2022 Systems and Services revenues of $169.9 million were up 7.8% sequentially, primarily due to higher scanner volume, services and exocad revenues
- On a year-over-year basis, System and Services revenue were unfavorably impacted by foreign exchange of approximately $11.2 million or approximately 6.2%
Joseph Hogan says,
Q4 Revenues and Trends
- Q4 revenues of $901.5 million increased sequentially from Q3, reflecting growth in Systems and Services as well as a slight increase in Clear Aligner shipments.
- Although foreign exchange had an unfavorable impact on Q4 and full year 2022 results, trends in consumer interest for orthodontic treatment, patient traffic in doctors’ practices, and iTero scanner demos improved.
Systems and Services Segment
- Q4 Systems and Services revenue of $169.9 million were up 7.8% sequentially and down 21.3% year-over-year.
- In Q4, Systems and Services revenues increased sequentially, driven by growth in the Americas and EMEA regions, reflecting continued sales of intraoral scanners, especially the iTero 5D.
- To accelerate the adoption of digital orthodontics and restorative dentistry, Align announced a strategic collaboration with Desktop Metal to supply iTero Element Flex scanners to Desktop Labs, one of the largest lab networks in the U.S. serving general dentists.
Clear Aligner Segment
- Q4 total Clear Aligner revenues of $731.7 million were down slightly, 0.2% sequentially and down 10.3% year-over-year.
- For Q4, Clear Aligner volume from DSO customers continue to outpace non-DSO customers.
- In EMEA, Q4 Clear Aligner volume increased sequentially in all markets, especially recently launched Invisalign Moderate, iGO Plus and iGO Express.
- APAC volumes were lower sequentially due primarily to China, which continues to be impacted by COVID, while volumes outside of China increased sequentially led by Japan, Taiwan, India, and Southeast Asia markets.
Subscription-Based Programs
- Align is pleased with its subscription-based programs like DSP, which increased sequentially and year-over-year and expects to continue expanding DSP offerings in other regions.
Record Quarter for Teen Case Starts
- In EMEA, Q4 was a record quarter for teen case starts, and for the full year, Invisalign Clear aligner shipments for teens and young kids was approximately 733,000 cases.
- For Q4, total Clear Aligner teen cases were down sequentially due primarily to the impact of COVID in China as well as seasonally fewer team starts in North America as compared to Q3.
Q & A sessions,
Investment on R&D
- Align spends a significant amount on R&D to revolutionize digital orthodontics.
- R&D focuses on making treatment faster, predictable, simpler for doctors, and better for patients.
- Align’s technology reduces patient cases by 5 months and 35% fewer visits to a doctor compared to wires and brackets.
Innovations in technology
- Improvements in scanning technology every year.
- AI plays a vital role in anticipating movements and speeding up scans.
- Inventions like Invisalign Personal Plan reduce traffic and communication between doctors and Align in setting up treatment plans.
- 3D printed devices are critical to move teeth as they allow control over wall thickness.
Impact on clinical efficacy, efficiency, and patient experience
- Align sees a huge opportunity to increase clinical efficacy, efficiency, and patient experience through these innovations.
No bad stock 