NASDAQ$ALGN

Align Technology Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Align's Q1 2024 results were announced, revealing better-than-expected revenue and earnings, driven by growth in both Clear Aligner and Systems and Services segments.

Align Technology reported a 5.8% year-over-year increase in total revenues, reaching $997.4 million for Q1 2024. Clear Aligner revenue grew by 3.5%, while Imaging Systems and CAD/CAM Services revenue increased by 17.5%. The company's diluted net income per share was $1.39, and non-GAAP diluted net income per share was $2.14.

  • Total revenues increased by 5.8% year-over-year, reaching $997.4 million.
  • Clear Aligner revenues grew by 3.5% year-over-year, totaling $817.3 million with a volume increase of 2.4% to 605.1 thousand cases.
  • Imaging Systems and CAD/CAM Services revenues increased by 17.5% year-over-year, amounting to $180.2 million.
  • Diluted net income per share was $1.39, while non-GAAP diluted net income per share reached $2.14.

Headline financials

Total Revenue

$997M

Previous: $943M+5.8%
EPS

$1.39

Previous: $1.82-23.6%
Clear Aligner Shipments

605.1K

Previous: 575.4K+5.2%
Capital Expenditures

-$9.37M

Previous: -$64.1M+85.4%
Free Cash Flow

$95.7M

Previous: $23.7M+304.0%
Net Income

$105M

Previous: $87.8M+19.6%
Operating Income

$154M

Previous: $134M+15.4%
Gross Profit

$698M

Previous: $661M+5.6%
R&D Expense

$91.9M

No prior period
Stock-Based Comp

$38.8M

Previous: $37.7M+2.8%

Revenue & EPS history

Align · Revenue · Quarterly

$997M

Q1 2024+5.8%vs Q1 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Align · $960M total across 2 segments · Q3 2023

  • Clear Aligner
    $795M
  • Imaging Systems and CAD/CAM Services
    $165M+5.0%

Forward guidance

Align Technology anticipates worldwide revenues in the range of $1,030M to $1,050M for Q2 2024. They expect Clear Aligner volume to increase sequentially, with a slight decrease in Clear Aligner ASP due to unfavorable foreign exchange. Systems and Services revenue is projected to rise sequentially, driven by the ongoing rollout of iTero Lumina™. The company also expects both GAAP and Non-GAAP operating margins to be slightly above Q1 2024 levels.

Tailwinds

  • Worldwide revenues are expected to be in the range of $1,030M to $1,050M.
  • Clear Aligner volume is anticipated to increase sequentially.
  • Systems and Services revenue is projected to rise sequentially due to iTero Lumina™.
  • GAAP operating margin is expected to be slightly above Q1 2024.
  • Non-GAAP operating margin is expected to be slightly above Q1 2024.

Headwinds

  • Clear Aligner ASP is expected to decrease slightly sequentially due to unfavorable foreign exchange.
  • Unspecified circumstances beyond the company's control could impact the outlook.
  • Macroeconomic conditions, including inflation and currency exchange rate fluctuations, could pose challenges.
  • Competition from existing and new competitors may affect sales and market share.
  • The military conflict in the Middle East and Ukraine could have economic and geopolitical ramifications.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+2.5%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.3%

Avg return

30 days after

66%

45 / 68 earnings

Positive

+35.5%

Q3 2020

Best reaction

-28.2%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%-5.4%-2.0%
Q4 2025+8.9%+21.7%+7.9%
Q3 2025+5.0%+2.9%+11.6%
Q1 2025+2.0%-0.1%+4.4%
Q4 2024+0.9%-2.7%-19.7%
Q3 2024+2.7%+2.4%+7.2%
Q2 2024-9.8%-10.6%-6.7%
Q1 2024-0.4%-2.3%-18.0%
Q4 2023+3.3%+4.1%+13.3%
Q3 2023-28.2%-29.7%-17.3%
Q2 2023+16.0%+13.8%+7.3%
Q1 2023-9.6%-9.7%-18.8%
Q4 2022+33.4%+27.0%+24.0%
Q3 2022-16.7%-10.9%-10.7%
Q2 2022+12.1%+12.3%+0.2%
Q1 2022-15.7%-14.5%-21.2%
Q4 2021-1.0%-1.6%-8.7%
Q3 2021+6.5%+11.5%+6.9%
Q2 2021+8.2%+11.9%+12.2%
Q1 2021-2.8%-3.5%-5.1%
Q4 2020+10.3%+8.0%-3.8%
Q3 2020+35.5%+35.8%+33.4%
Q2 2020-5.2%-2.1%-6.7%
Q1 2020+5.6%+3.3%+20.7%
Q4 2019-1.8%-5.5%-18.5%
Q3 2019+16.8%+17.2%+28.5%
Q2 2019-26.4%-28.2%-35.9%
Q1 2019+0.2%+7.2%+5.2%
Q4 2018+5.1%+10.2%+16.9%
Q3 2018-25.5%-30.1%-29.8%
Q2 2018-2.6%-6.4%-1.3%
Q1 2018+8.4%+4.3%+32.9%
Q4 2017-5.3%-7.0%-11.3%
Q3 2017+16.9%+18.5%+26.3%
Q2 2017+9.1%+6.8%+8.7%
Q1 2017+12.4%+12.0%+18.7%
Q4 2016+8.1%+6.5%+15.7%
Q3 2016+3.6%+6.8%+14.5%
Q2 2016+4.7%+6.1%+8.8%
Q1 2016-3.5%
Q4 2015+7.7%
Q3 2015+10.4%
Q2 2015-7.4%
Q1 2015+5.8%
Q4 2014-9.4%
Q3 2014+7.3%
Q2 2014+6.1%
Q1 2014-2.4%
Q4 2013+2.9%
Q3 2013+32.6%
Q2 2013+10.4%
Q1 2013+2.3%
Q4 2012+9.0%
Q3 2012-26.4%
Q2 2012+10.8%
Q1 2012+13.7%
Q4 2011-2.1%
Q3 2011+2.9%
Q2 2011-4.3%
Q1 2010-2.0%
Q1 2011+1.6%
Q4 2010+5.1%
Q4 2008+5.1%
Q3 2009+6.3%
Q3 2010+6.3%
Q4 2009+0.4%
Q2 2010+0.4%
Q2 2009+0.4%

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