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Jun 30, 2021
Align Q2 2021 Earnings Report
Announced record second quarter financial results and $1 billion in quarterly revenues for first time.
Key Takeaways
Align Technology reported a record second quarter with total revenues of $1.0 billion, up 186.9% year-over-year. Clear Aligner revenues were $841.0 million, up 181.9% year-over-year, and Imaging Systems and CAD/CAM Services revenues were $169.8 million, up 214.7% year-over-year. The company's diluted net income per share was $2.51, and non-GAAP diluted net income per share was $3.04.
Q2 total revenues up 13.0% sequentially and 186.9% year-over-year to a record $1.0 billion
Q2 diluted net income per share of $2.51; Q2 non-GAAP diluted net income per share of $3.04
Q2 operating margin of 26.6%, up 1.4 points sequentially and up 47.3 points year-over-year
Q2 Clear Aligner revenues up 11.6% sequentially and 181.9% year-over-year to a record $841.0 million
Align
Align
Align Revenue by Segment
Revenue by Segment
Clear Aligner Revenue
CapyFin.comImaging Systems and CAD/CAM Services Revenue
CapyFin.com Forward Guidance
Align is increasing its 2021 revenue guidance provided in April on the Q1’21 earnings call to a range of $3.85 billion to $3.95 billion. Additionally, they now expect their second half year-over-year revenue growth rate to be above the mid-point of their long-term operating model target of 20% to 30%. On a GAAP basis, they now anticipate their 2021 operation margin to be better than their prior guidance, in the range of 24.0% and 25.0%. On a Non-GAAP basis, they expect the 2021 operating margin to be approximately 3 points higher than their GAAP operating margin, after excluding stock-based compensation and intangible amortization.
Positive Outlook
- Net revenues in the range of $3.85 billion to $3.95 billion, up approximately 56% to 60% over full-year 2020.
- Expect 2H year-over-year revenue growth to be above the mid-point of our long-term operating model target of 20% to 30%
- GAAP operating margin in the range of 24.0% to 25.0%
- Non-GAAP operating margin to be approximately 3 points higher than GAAP operating margin
- During Q3'21 we expect to repurchase up to $75 million of our common stock through either or a combination of open market repurchases or an accelerated stock repurchase agreement
Challenges Ahead
- There continues to be uncertainty around the pandemic and increasing restrictions related to COVID-19 in certain geographies
- Anticipating more pronounced summer seasonality across all regions than we have experienced in recent years, as doctors, their staff, and patients take long overdue vacations.
- Difficulties predicting customer and consumer purchasing behavior and changes in consumer spending habits as a result of prevailing economic conditions
- Increasing competition from existing and new competitors
- Foreign operational, political and other risks relating to our international manufacturing operations
Revenue & Expenses
Visualization of income flow from segment revenue to net income