NASDAQ$ALGN

Align Technology Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced second quarter 2023 financial results, with revenues and operating margins exceeding expectations due to improving trends across regions.

Align Technology reported Q2 2023 total revenues of $1,002.2 million, a 3.4% increase year-over-year. The company's diluted net income per share was $1.46, and non-GAAP diluted net income per share was $2.22. Clear Aligner revenues reached $832.7 million, and Imaging Systems and CAD/CAM Services revenues were $169.5 million.

  • Q2'23 total revenues of $1.0 billion, increased 6.3% sequentially and 3.4% year-over-year, and diluted net income per share of $1.46, non-GAAP diluted net income per share of $2.22
  • Q2'23 revenues were favorably impacted by foreign exchange of approximately $1.3 million sequentially and unfavorably impacted by approximately $19.4 million year-over-year
  • Q2'23 operating income of $171.9 million and operating margin of 17.2%, non-GAAP operating margin of 21.3%
  • Q2’23 Clear Aligner cases for teenagers increased 7% sequentially and 10% year over year, driven by momentum in both Submitters and Utilization and continued growth from Invisalign First™

Headline financials

Total Revenue

$1B

Previous: $970M+3.4%
EPS (adj)

$2.22

Previous: $2.00+11.0%
Clear Aligner Shipments

604.4K

Previous: 599.0K+0.9%
Capital Expenditures

-$123M

Previous: -$163M+24.9%
Free Cash Flow

-$10.9M

Previous: -$50.5M+78.5%
Net Income

$112M

Previous: $113M-0.9%
Operating Income

$172M

Previous: $188M-8.6%
Gross Profit

$714M

Previous: $688M+3.8%
Cash & Equivalents

$952M

Previous: $878M+8.5%
Total Assets

$6.14B

Previous: $5.81B+5.8%
Stock-Based Comp

$37.9M

Previous: $34.1M+10.9%

Revenue & EPS history

Align · Revenue · Quarterly

$1B

Q2 2023+3.4%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Align · $170M total across 1 segment · Q2 2023

  • Imaging Systems and CAD/CAM Services
    $170M-1.0%

Forward guidance

Align anticipates Q3'23 WW Revenue to be in the range of $990M to $1,010M, up approximately 12% year-over-year at the midpoint. They expect Q3’23 GAAP and Non-GAAP operating margin to be slightly up from Q2'23. For full year 2023, they anticipate WW Revenues to be in the range of $3.970B to $3.990B.

Tailwinds

  • Q3'23, we anticipate our WW Revenue to be in the range of $990M to $1,010M, up approximately 12% year-over-year at the midpoint.
  • We expect our Q3’23 GAAP and Non-GAAP operating margin to be slightly up from Q2'23, as we continue to strategically prioritize our investments in R&D and go-to-market activities to drive growth.
  • For full year 2023, assuming no circumstances occur that are beyond our control, we anticipate our 2023 WW Revenues to be in the range of $3.970B to $3.990B.
  • We also expect our full year 2023 GAAP operating margin to be slightly above 17% and our 2023 Non-GAAP operating margin to be slightly above 21%, a 1-point improvement from the guidance we provided in April 2023.
  • For 2023, we expect investments in capital expenditures to be approximately $200M.

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 Q2 2023

Historical avgQ2 2023

+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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