Align Technology Inc · Q3 2021 earnings

Briefing

Reported record financial results for the third quarter of 2021, achieving the 11 millionth Invisalign patient milestone and reaching 50,000 iTero scanner installed-base worldwide.

Align Technology announced strong third quarter results with revenue growth of 38.4% year over year, driven by strength across all regions, customer channels, and products. The company shipped to a record 85.5 thousand doctors and reached 11.6 million Invisalign patients cumulatively.

• Q3 total revenues up 38.4% year-over-year to record $1.016 billion and up 0.5% sequentially
• Q3 diluted net income per share of $2.28; Q3 non-GAAP diluted net income per share of $2.87
• Q3 operating margin of 25.7%, down 0.9 points sequentially and up 1.6 points year-over-year
• Q3 Clear Aligner volume for teens up 26.6% year-over-year to a record 206.0 thousand cases and up 13.8% sequentially

Headline financials

Revenue & EPS history

Align provides the following guidance for 2021: Net revenues are expected to be in the range $3.90 billion to $3.95 billion, up approximately 58% to 60% over full-year 2020. We also expect revenue growth for the second half of 2021 to be at the high end of our long-term operating model target of 20% to 30%. On a GAAP basis, we anticipate our 2021 operating margin to be around 25.0%. Non-GAAP operating margin is expected to be approximately 3 points higher than GAAP operating margin for 2021. In addition, during Q4'21 we expect to repurchase up to $100 million of our common stock through either or a combination of open market repurchases or an accelerated stock repurchase agreement