Align Q4 2019 Earnings Report
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.
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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