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Dec 31, 2019

Align Q4 2019 Earnings Report

Announced strong financial results with record revenues and volumes.

Key Takeaways

Align Technology reported a 21.7% increase in total revenues for Q4 2019, reaching $649.8 million. Clear aligner revenues increased by 22.0% to $543.6 million, and scanner and services revenues increased by 20.2% to $106.2 million. Invisalign case volume reached 413.7 thousand, up 23.9% year-over-year.

Total revenues were $649.8 million, up 21.7% year-over-year.

Clear aligner revenues were $543.6 million, up 22.0% year-over-year.

Scanner and services revenues were $106.2 million, up 20.2% year-over-year.

Invisalign volume was 413.7 thousand cases, up 23.9% year-over-year.

Total Revenue
$650M
Previous year: $534M
+21.7%
EPS
$1.53
Previous year: $1.2
+27.5%
Invisalign Cases Shipped
413.7K
Invisalign Cases (Teen)
116K
Gross Profit
$472M
Previous year: $383M
+23.2%
Cash and Equivalents
$869M
Previous year: $637M
+36.4%
Free Cash Flow
$176M
Previous year: $187M
-6.1%
Total Assets
$2.5B
Previous year: $2.05B
+21.8%

Align

Align

Align Revenue by Segment

Forward Guidance

For Q1 2020, Align expects a reduction in Invisalign case shipments and revenues due to the novel coronavirus outbreak in China.

Positive Outlook

  • Strong growth in other regions.
  • Strong momentum in the Americas.
  • Strong momentum across EMEA.
  • Strong momentum in all other countries in APAC especially Japan.
  • Strong momentum in Australia/New Zealand, Southeast Asia, Taiwan and Korea.

Challenges Ahead

  • Approximately 20,000 to 25,000 fewer Invisalign case shipments.
  • Approximately $30.0 million to $35.0 million less revenues for Invisalign and iTero products sold in China.
  • Absorbing $3.0 million to $4.0 million in idle China plant capacity costs.
  • Approximately a 0.5% gross margin impact.
  • Increased uncertainty and disruption to employees, customers/doctors’ practices, their patients and consumers in China.

Revenue & Expenses

Visualization of income flow from segment revenue to net income