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Align
🇺🇸 NASDAQ:ALGN
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Jun 30, 2023

Align Q2 2023 Earnings Report

Announced second quarter 2023 financial results, with revenues and operating margins exceeding expectations due to improving trends across regions.

Key Takeaways

Align Technology reported Q2 2023 total revenues of $1,002.2 million, a 3.4% increase year-over-year. The company's diluted net income per share was $1.46, and non-GAAP diluted net income per share was $2.22. Clear Aligner revenues reached $832.7 million, and Imaging Systems and CAD/CAM Services revenues were $169.5 million.

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

Q2'23 operating income of $171.9 million and operating margin of 17.2%, non-GAAP operating margin of 21.3%

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™

Total Revenue
$1B
Previous year: $970M
+3.3%
EPS
$2.22
Previous year: $2
+11.0%
Invisalign Cases Shipped
604.45K
Previous year: 598.99K
+0.9%
Gross Profit
$714M
Previous year: $688M
+3.8%
Cash and Equivalents
$952M
Previous year: $878M
+8.5%
Free Cash Flow
$193M
Previous year: $51M
+278.7%
Total Assets
$6.14B
Previous year: $5.81B
+5.8%

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Align Revenue by Segment

Forward Guidance

Align anticipates Q3'23 WW Revenue to be in the range of $990M to $1,010M, up approximately 12% year-over-year at the midpoint. They expect Q3’23 GAAP and Non-GAAP operating margin to be slightly up from Q2'23. For full year 2023, they anticipate WW Revenues to be in the range of $3.970B to $3.990B.

Positive Outlook

  • 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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