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Sep 30, 2023
Align Q3 2023 Earnings Report
Announced third quarter results with revenue increase and strategic investments.
Key Takeaways
Align Technology reported a 7.8% year-over-year increase in total revenues, reaching $960.2 million. The company's diluted net income per share was $1.58, with a non-GAAP diluted net income per share of $2.14. Record clear aligner shipments to teenage patients drove growth.
Total revenues increased 7.8% year-over-year to $960.2 million.
Diluted net income per share was $1.58, and non-GAAP diluted net income per share was $2.14.
Clear Aligner revenues increased 8.5% year-over-year, totaling $794.9 million.
Imaging Systems and CAD/CAM Services revenues increased 4.9% year-over-year, reaching $165.3 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
For Q4 2023, Align anticipates worldwide revenue to be in the range of $920M to $940M, down sequentially from Q3 2023. GAAP operating margin is expected to be down sequentially, while Non-GAAP operating margin is anticipated to be up sequentially.
Positive Outlook
- Non-GAAP operating margin is anticipated to be up sequentially from Q3 2023.
- The company expects to repurchase up to $250.0 million of its common stock in Q4 2023.
- Continued innovation in digital treatment planning for orthodontics and restorative dentistry.
- New digital tools gaining adoption and helping doctors gain efficiencies.
- Planned launch of the Invisalign Palatal Expander (IPE) System in Canada this quarter.
Challenges Ahead
- Worldwide revenue is expected to be down sequentially from Q3 2023, in the range of $920M to $940M.
- Both Clear Aligner and Systems and Services Revenues are expected to be down sequentially.
- Clear aligner teen volume is expected to be seasonally lower in Q4 2023, with no anticipated improvement in adult volumes.
- Clear aligner ASPs are expected to be down sequentially due to the strengthening US dollar.
- Increasing headwinds from macro uncertainty and potential supply issues related to the war in the Middle East are anticipated for the Systems and Services business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income