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Dec 31, 2023

Align Q4 2023 Earnings Report

Align Technology reported better-than-expected revenues and earnings, driven by growth in clear aligner volume for adults and non-comprehensive cases, as well as increased revenues from systems and services.

Key Takeaways

Align Technology's Q4 2023 total revenues reached $956.7 million, a 6.1% increase year-over-year. Diluted net income per share was $1.64, and non-GAAP diluted net income per share was $2.42. The company launched the iTero Lumina intraoral scanner and saw growth in clear aligner volumes for teens and Invisalign DSP touch-up cases, as well as growth in the EMEA and APAC regions.

Q4 total revenues were $956.7 million, up 6.1% year-over-year.

Diluted net income per share was $1.64, and non-GAAP diluted net income per share was $2.42.

Clear Aligner revenues were $781.9 million, up 6.9% year-over-year.

Imaging Systems and CAD/CAM Services revenues were $174.8 million, up 2.9% year-over-year.

Total Revenue
$957M
Previous year: $902M
+6.1%
EPS
$2.42
Previous year: $1.73
+39.9%
Invisalign Cases Shipped
592.64K
Previous year: 583.66K
+1.5%
Gross Profit
$673M
Previous year: $618M
+8.9%
Cash and Equivalents
$973M
Previous year: $942M
+3.3%
Free Cash Flow
$13.5M
Previous year: $91.5M
-85.3%
Total Assets
$6.08B
Previous year: $5.95B
+2.3%

Align

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Align Revenue by Segment

Forward Guidance

Align Technology provided its outlook for Q1 and fiscal year 2024, assuming no circumstances occur beyond their control.

Positive Outlook

  • Worldwide revenues for Q1 2024 are expected to be in the range of $960M to $980M, up slightly from Q4 2023.
  • Clear aligner volume and ASPs are expected to be up slightly sequentially.
  • Systems and services revenue is expected to be down slightly sequentially, although less than the historical seasonal decline given the launch of the iTero Luminaâ„¢ for ortho workflows in Q1 2024.
  • GAAP operating margin and non-GAAP operating margin for Q1 2024 are expected to be slightly above Q1 2023.
  • Total revenues for 2024 are expected to be up mid-single digits over 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income