NASDAQ$ALGN

Align Technology Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Align's Q3 2024 results reflected strong Systems and Services year-over-year revenue growth, as well as good Clear Aligner volume in the Asia Pacific, EMEA and Latin America regions, partially offset by declines in the U.S.

Align Technology's Q3 2024 total revenues were $977.9 million, up 1.8% year-over-year. Diluted net income per share was $1.55, or $2.35 on a non-GAAP diluted basis. The company expects to repurchase up to $275.0 million of its common stock beginning in Q4'24.

  • Q3'24 total revenues of $977.9 million, increased 1.8% year-over-year.
  • Q3'24 diluted net income per share was $1.55, or $2.35 on a non-GAAP diluted basis.
  • Q3'24 operating income of $162.3 million and operating margin of 16.6%, non-GAAP operating margin of 22.1%.
  • Q3'24 Imaging Systems and CAD/CAM Services revenues of $191.0 million, increased 15.6% year-over-year.

Headline financials

Total Revenue

$978M

Previous: $960M+1.8%
EPS

$1.55

Previous: $2.14-27.6%
Clear Aligner Shipments

617.2K

Previous: 602.3K+2.5%
Invisalign Trained Doctors Cases Shipped To

87.4K

No prior period
Invisalign Trained Doctor Utilization Rates

7.1%

No prior period
Clear Aligner Revenue Per Case Shipment

$1.28K

No prior period
Capital Expenditures

-$92.6M

Previous: -$144M+35.8%
Free Cash Flow

$23.3M

Previous: -$22.9M+202.1%
Net Income

$116M

Previous: $121M-4.5%
Operating Income

$162M

Previous: $166M-2.4%
Gross Profit

$682M

Previous: $663M+2.8%
Stock-Based Comp

$49M

Previous: $39.6M+23.8%

Revenue & EPS history

Align · Revenue · Quarterly

$978M

Q3 2024+1.8%vs Q3 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

For Q4'24, Align expects worldwide revenues to be in the range of $995M to $1,015M. We expect Clear Aligner volume and ASP to be slightly up sequentially. We also expect Systems and Services revenue to be up in Q4'24 sequentially consistent with typical Q4 seasonality. We expect Q4’24 GAAP operating margin to be slightly lower than 14.0% primarily due to restructuring charges related to severance as we adjust headcount for the existing business environment. We anticipate Q4’24 non-GAAP operating margin to be slightly up sequentially. For fiscal 2024, we expect investments in capital expenditures to be above $100M.

Tailwinds

  • Worldwide revenues to be in the range of $995M to $1,015M.
  • Clear Aligner volume and ASP to be slightly up sequentially.
  • Systems and Services revenue to be up in Q4'24 sequentially consistent with typical Q4 seasonality.
  • Non-GAAP operating margin to be slightly up sequentially.

Headwinds

  • GAAP operating margin to be slightly lower than 14.0% primarily due to restructuring charges related to severance.
  • Restructuring charges to impact Q4’24 GAAP operating margin by approximately 3 points.

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 Q3 2024

Historical avgQ3 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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