https://assets.capyfin.com/instruments/678fdc13234e27009c5d5a8e.png avatar
Align
🇺🇸 NASDAQ:ALGN
View Company
OverviewEarningsDividends
•
Dec 31, 2022

Align Q4 2022 Earnings Report

Align's Q4 2022 financial results reflected a more stable environment with sequential growth in systems and services, as well as a slight increase in clear aligner shipments. However, revenues and margins were significantly impacted by unfavorable foreign exchange.

Key Takeaways

Align Technology's Q4 2022 total revenues reached $901.5 million, a 1.3% sequential increase but a 12.6% year-over-year decrease. Diluted net income per share was $0.54, while non-GAAP diluted net income per share was $1.73. The Board of Directors authorized a new $1 billion stock repurchase program.

Q4 total revenues were $901.5 million, down 12.6% year-over-year.

Q4 Clear Aligner revenues were $731.7 million, down 10.3% year-over-year.

Q4 Imaging Systems and CAD/CAM Services revenues were $169.9 million, down 21.3% year-over-year.

The Board of Directors authorized a new $1 billion stock repurchase program.

Total Revenue
$902M
Previous year: $1.03B
-12.6%
EPS
$1.73
Previous year: $2.83
-38.9%
Invisalign Cases Shipped
583.66K
Previous year: 631.15K
-7.5%
Gross Profit
$618M
Previous year: $745M
-17.0%
Cash and Equivalents
$942M
Previous year: $1.3B
-27.5%
Free Cash Flow
$91.5M
Previous year: $164M
-44.1%
Total Assets
$5.95B
Previous year: $5.94B
+0.1%

Align

Align

Align Revenue by Segment

Forward Guidance

Align anticipates clear aligner volumes to be down sequentially in Q1 2023 primarily due to weakness in China from COVID, partially offset by some stability from our Americas and EMEA regions. They expect Q1'23 revenues to be about flat to Q4'22.

Positive Outlook

  • Cautiously optimistic for continued stability and improving trends as we move through the year.
  • Confident in our large, untapped market opportunity for digital orthodontics and restorative dentistry.
  • Focus on strategic investments in sales, marketing, technology and innovation.
  • Anticipate clear aligner ASPs to be up from Q4’22 primarily due to higher pricing and favorable foreign exchange rates.
  • Expect our Q1’23 GAAP operating margin to be up approximately 1% point from Q4’22 GAAP operating margin

Challenges Ahead

  • The macroeconomic environment remains fragile.
  • Continued global challenges and uncertainty, we are not providing full year revenue guidance.
  • Would like to see improvements in the operating environment and consumer demand signals, including stability in China before revisiting our approach.
  • Anticipate clear aligner volumes to be down sequentially primarily due to weakness in China from COVID.
  • Anticipate iTero scanner and services revenue to be down sequentially as the business follows a more typical capital equipment cycle.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Align