Align Technology, Inc. (Nasdaq: ALGN) today reported financial
results for the first quarter of fiscal 2021 ("Q1'21"). Q1'21 total
revenues were $894.8 million, up 62.4% year-over-year. Q1'21 Clear
Aligner revenues were $753.3 million, up 56.4% year-over-year and
Q1'21 Imaging Systems and CAD/CAM Services revenues were $141.5
million, up 104.0% year-over-year. Q1'21 Clear Aligner volume was
595.8 thousand cases, up 65.8% year-over-year. For the Americas and
International regions, Q1'21 Clear Aligner volume was up 53.8% and
up 83.2% year-over-year, respectively. Q1'21 Clear Aligner volume
for teenage patients was 165.3 thousand cases, up 58.9%
year-over-year. Q1'21 operating income of $225.4 million was up
222.4% year-over-year, resulting in an operating margin of 25.2%.
Q1'21 GAAP net income was $200.4 million, or $2.51 per diluted
share. On a non-GAAP basis, Q1'21 net income was $198.4 million, or
$2.49 per diluted share.
Commenting on Align's Q1'21 results, Align
Technology President and CEO Joe Hogan said, “I’m pleased to report
another strong quarter with record revenues and volumes reflecting
strong growth for both Invisalign Clear Aligners and iTero Systems
and Services across products and customer channels worldwide. Q1
sequential Invisalign Clear Aligner growth was driven by strength
in both adult and teen market segments, across products and
customer channels especially in North America and the EMEA region,
led by UKI, Germany and France. The year is off to a great start –
and Q1 reflects increasing momentum from continued investments in
our strategic initiatives. During the quarter we reached a
significant milestone with our 10 millionth Invisalign patient,
Gabriela Silva, who recently began treatment with Dr. Eunice
Blind, an Invisalign-trained orthodontist in São Paulo, Brazil, one
of our fastest growing country markets. It’s remarkable to think
about the pace of growth and adoption that we are experiencing
worldwide, especially when considering it took 10 years to achieve
our one millionth Invisalign patient milestone. Now we are adding
one million new Invisalign patients in less than six months. We are
grateful to our doctor partners and their patients, and to our
20,000 employees around the world who have helped us reach this
milestone.”
Financial Summary - First Quarter Fiscal
2021
|
Q1'21 |
Q4'20 |
Q1'20 |
Invisalign Case Shipments |
|
595,820 |
|
567,950 |
|
359,440 |
GAAP |
|
|
|
Net Revenues |
$894.8M |
$834.5M |
$551.0M |
Clear Aligner |
$753.3M |
$700.7M |
$481.6M |
Imaging Systems and CAD/CAM Services |
$141.5M |
$133.8M |
$69.4M |
Net Income |
$200.4M |
$159.0M |
$1,518.1M |
Diluted EPS |
$2.51 |
$2.00 |
$19.21 |
Non-GAAP |
Net
Income |
$198.4M |
$207.7M |
$57.9M |
Diluted EPS |
$2.49 |
$2.61 |
$0.73 |
As of March 31, 2021, Align had $1.1 billion in
cash and cash equivalents, compared to $960.8 million as of
December 31, 2020. We also have $300 million available under a
revolving line of credit. Under our May 2018 Repurchase Program, we
have $100 million remaining available for repurchase of our common
stock.
Recent Announcements – April
2021:
- Align announced that over 10
million patients have begun treatment with the Invisalign system –
the most advanced clear aligner system in the world – including 2.6
million teenage patients. Align is celebrating 10 million
Invisalign smiles with 10 million thanks – donating $10 million to
the Align Foundation, a donor-advised fund managed by Fidelity
Charitable, to fund organizations that transform smiles and support
and educate teens. Align hopes to inspire others to share their
smiles using #10MInvisalignSmiles. This is a significant milestone
for the company and the Invisalign-trained orthodontists and
dentists worldwide who trust Invisalign clear aligners to treat
adults, teens, and patients as young as 6 years old. The 10
millionth Invisalign patient milestone reflects accelerating pace
of adoption of Invisalign treatment driven by continued global
expansion and investments in digital technologies including the
iTero intraoral scanner. The 10 millionth Invisalign patient is
Gabriela Silva, who recently began treatment with Dr. Eunice Blind,
an orthodontist practicing at Clinica Pedroso, in São Paulo,
Brazil. Align is also partnering with Por 1 Sorriso, a Brazilian
non-governmental organization (NGO) to help create even more smiles
in socially vulnerable communities.
- Align Technology and DECA Dental
Group announced that they have extended their relationship and have
signed a new multi-year agreement for the Invisalign system through
early 2025. In addition, DECA Dental Group is extending utilization
of the iTero Element 5D imaging system across its affiliated
practices in the U.S. This provides DECA Dental doctors and
clinical support team members with access to Align’s customized
clinical education for the Invisalign system and the iTero Element
5D imaging system to support practices in adopting new workflows
for restorative dentistry and for digital orthodontics.
- Align celebrated the 2 millionth
Europe, Middle East and Africa (EMEA) Invisalign System patient
milestone in Q4’20 by announcing a consumer campaign featuring
Puck, a 15-year-old student from the Netherlands. Since Invisalign
treatment allows patients to continue with their lifestyle,
including practicing contact sports, Puck can continue doing what
she loves – a passion for boxing -- while being treated for a more
beautiful smile. She is in treatment with Dr. Lotte Veldhuijzen van
Zanten - an Invisalign trained orthodontist based in Zwolle, who
prescribed Puck the Invisalign Comprehensive treatment for a deep
bite correction. Puck will be featured in our 2 millionth EMEA
patient campaign, which will run in the Netherlands and other
select markets, and will include promotional activities, doctor
communications, social activation, in-practice and digital
activities.
- Align announced plans to open a new
manufacturing facility in Poland to address the large and untapped
market opportunity in the EMEA region, which represents over 5
million annual orthodontic case starts and more than 150 million
EMEA consumers who can potentially benefit from a healthier,
beautiful smile. The new Wroclaw plant will be Align’s first in the
EMEA region and its third aligner manufacturing plant worldwide,
joining Juarez, Mexico and Ziyang, China. The new facility is
expected to begin supplying customers in the EMEA region in early
2022. The investment is part of Align’s strategy to bring its
operational facilities closer to its customers. Align works
directly with doctors - dentists and orthodontists - to provide
them with the Invisalign system of clear aligners to prescribe to
their patients to straighten their teeth and transform their
smiles.
- Align announced its support to
expand access to vaccinations by U.S. dentists. As seen over the
last year, managing health care resources during a pandemic or
other health crisis is a complex mix of preparation and execution,
with access to responsible care being a key consideration. Federal,
state, and local public health officials and health care providers
have worked to balance access to COVID-19 testing and healthcare
while also meeting other health needs – both routine and unexpected
– that continue even during a pandemic. As the number of people
vaccinated against COVID-19 increases across the U.S., it is
important to review and build on lessons learned in order to
optimize responsiveness for future events. One of those lessons is
the potential value of using networks of existing, trusted,
community-level health care providers when rolling out vaccination
plans.
Q1’21 Announcement
Highlights:Corporate
- Align announced a partnership with
U.S. Ski & Snowboard, making the Invisalign brand the Official
Smile of U.S. Ski & Snowboard, the Olympic national governing
body of ski and snowboard sports in the U.S. The multi-year,
worldwide sponsorship includes development of original Invisalign
System branded content across social media channels and for the
U.S. Ski & Snowboard website. As part of the agreement, U.S.
Ski & Snowboard will launch a program for athletes to join the
Invisalign Smile Squad and receive Invisalign treatment and then
share their Invisalign treatment experiences on their social media
profiles.
- Align announced the favorable
outcome of a binding arbitration for claims asserted against SDC
Financial, LLC, SmileDirectClub, LLC, David Katzman, David Katzman
Revocable Trust, and David Katzman 2009 Family Trust relating to
the valuation of Align’s membership interest in SDC Financial LLC
(“SDC”). In the final award, the arbitrator found in favor of Align
and against SDC and determined the value of the capital account
balance to be $97.6 million, offset by $54.2 million paid over the
last two years to Align.
- Align announced the winner of the
2020 Invisalign Ortho Summit Case Shoot-out, one of Align’s live
case presentations during the virtual Summit. Dr. Keith Sellers of
Charlotte, North Carolina received the greatest number of attendee
votes for his Class II/Class III Invisalign System case
presentation. The program features Invisalign treatment outcomes
submitted by orthodontists from across North America. Doctors with
the best treatment outcomes in each of four theme categories are
invited to present their case at the Invisalign Ortho Summit, with
the best or favorite overall case presentation determined by
audience voting. The theme categories for the 2020 Invisalign Ortho
Summit Case Shoot-out were Teen Treatment, Open Bite/Deep Bite
Treatment, Invisalign with Mandibular Advancement/Invisalign First
Treatment, and Class II/Class III treatment. Voting ran from
mid-November 2020 through late January 2021 as part of the
first-ever virtual Invisalign Ortho Summit.
- Align announced a partnership with
the six-time NBA Champion Golden State Warriors, making the
Invisalign System brand the Official Smile Partner of the Golden
State Warriors. As part of the agreement, the Invisalign System
brand also became the Official Smile Partner of the Santa Cruz
Warriors, Golden State’s G League affiliate team and the Golden
Guardians, its esports affiliate. The sponsorship includes an
omni-channel activation across TV, digital media, and social and a
jersey partnership with the Golden Guardians and the Santa Cruz
Warriors.
- Align established its new global
corporate headquarters in Tempe, Arizona, effective January 1,
2021. Align’s San Jose, California campus remains the hub for its
global innovation, product, and marketing organization and will
become home to its new Digital Innovation Center, currently under
construction.
Product
- Align announced the launch of the
iTero Element Plus Series next generation of intraoral scanners and
imaging systems. The iTero Element Plus Series of new solutions
feature advanced technology and capabilities designed to improve
the scanning experience, increase practice productivity, and drive
higher patient treatment conversion. The new iTero Element Plus
Series of intraoral scanners and imaging systems builds on the
success of the award-winning iTero Element family of scanners and
offers all of the existing orthodontic and restorative digital
capabilities doctors have come to rely on — plus faster processing
time and advanced visualization capabilities for a seamless
scanning experience in a new sleek, ergonomically designed package.
Available in both cart and mobile configurations, the iTero Element
Plus Series offers increased flexibility and mobility. The mobile
configuration makes the power of the iTero Element Plus Series
portable with a medical grade, compact mobile scanner solution that
delivers the same high-quality images as the cart
configuration.
- Align announced the launch and
global commercial availability of Invisalign G8 with SmartForce®
Aligner Activation, the latest of Align's biomechanics innovations.
Invisalign G8 with SmartForce® Aligner Activation was informed by
our foundational biomechanics for clear aligners and database of
more than 9 million Invisalign patients to optimize tooth movements
and further improve predictability for frequently treated crowding,
crossbite, and deep bite cases.
FY 2021 Business OutlookFor 2021, Align
provides the following guidance:
- Net revenues in the range of $3.7
billion to $3.9 billion, up approximately 50% to 58% over full year
2020. Consistent with past years, we expect 2H 2021 revenue to make
up more than half of the full year revenue and our 2H revenue to
grow year-over-year around the mid-point of our long-term operating
model target of 20% to 30%
- GAAP operating margin in the range
of 23.5% to 24.5%
- Non-GAAP operating margin to be
approximately 3 points higher than GAAP operating margin
- In addition, during Q2'21 we expect
to repurchase $100 million of our common stock through either open
market repurchases or an accelerated stock repurchase agreement we
intend to enter into on or prior to May 3, 2021. The repurchase is
intended to complete the $600 million stock repurchase program
announced on May 23, 2018
Align Web Cast and Conference
CallAlign will host a conference call today, April 28,
2021, at 4:30 p.m. ET, 1:30 p.m. PT, to review its first quarter
2021 results, discuss future operating trends and the business
outlook. The conference call will also be webcast live via the
Internet. To access the webcast, go to the "Events &
Presentations" section under Company Information on Align's
Investor Relations web site at http://investor.aligntech.com .
To access the conference call, please dial 201-689-8261. An
archived audio webcast will be available beginning approximately
one hour after the call's conclusion and will remain available for
approximately one month. Additionally, a telephonic replay of the
call can be accessed by dialing 877-660-6853 with conference number
13718065 followed by #. For international callers, please dial
201-612-7415 and use the same conference number referenced above.
The telephonic replay will be available through 5:30 p.m. ET on May
12, 2021.
About Non-GAAP Financial
MeasuresTo supplement our condensed consolidated financial
statements, which are prepared and presented in accordance with
generally accepted accounting principles in the United States
("GAAP"), we may provide investors with certain non-GAAP financial
measures for gross profit, gross margin, operating expenses, income
from operations, operating margin, interest income and other income
(expense), net, net income before provision for (benefit from)
income taxes, effective tax rate, net income and diluted net income
per share, which exclude certain items that may not be indicative
of our fundamental operating performance including discrete cash
and non-cash charges or gains that are included in the most
directly comparable GAAP measure. Non-GAAP measures will exclude
the effects of stock-based compensation, amortization of acquired
intangibles, non-cash deferred tax assets and associated
amortization related to the intra-entity transfer of non-inventory
assets, acquisition-related costs, and arbitration award gain, and,
if applicable, any associated tax impacts.
We use non-GAAP financial measures for financial
and operational decision-making and as a means to evaluate
period-to-period comparisons. Our management believes that these
non-GAAP financial measures provide meaningful supplemental
information regarding our recurring core operating performance. We
believe that both management and investors benefit from referring
to these non-GAAP financial measures in assessing our performance
and when planning, forecasting, and analyzing future periods. These
non-GAAP financial measures also facilitate management's internal
evaluation of period-to-period comparisons. We believe these
non-GAAP financial measures are useful to investors both because
(1) they allow for greater transparency with respect to key metrics
used by management in its financial and operational decision-making
and (2) they will be provided to and used by our institutional
investors and the analyst community to help them analyze the
performance of our business.
There are limitations to using non-GAAP
financial measures, though, because they are not prepared in
accordance with GAAP and may be different from non-GAAP financial
measures used by other companies. The non-GAAP financial measures
are limited in value because they exclude certain items that may
have a material impact upon our reported financial results. In
addition, they are subject to inherent limitations as they reflect
the exercise of judgments by management about which charges are
excluded from the non-GAAP financial measures. We compensate for
these limitations by analyzing current and future results on a GAAP
as well as a non-GAAP basis and also by providing GAAP measures in
our public disclosures. The presentation of non-GAAP financial
information is meant to be considered in addition to, not as a
substitute for or in isolation from, the directly comparable
financial measures prepared in accordance with GAAP. We urge
investors to review the reconciliation of our GAAP financial
measures to the comparable Non-GAAP financial measures included in
this presentation and not to rely on any single financial measure
to evaluate our business. For more information on these non-GAAP
financial measures, please see the table captioned "Unaudited GAAP
to Non-GAAP Reconciliation."
About Align Technology,
Inc.Align Technology designs and manufactures the
Invisalign® system, the most advanced clear aligner system in the
world, iTero® intraoral scanners and services, and exocad CAD/CAM
software. Align has helped treat over 10.2 million patients with
the Invisalign system and is driving the evolution in digital
dentistry with the iTero intraoral scanner and exocad CAD/CAM
software − modernizing today's practices by enabling enhanced
digital orthodontic and restorative workflows to improve patient
outcomes and practice efficiencies. Visit www.aligntech.com for
more information.
For additional information about the Invisalign
system or to find an Invisalign doctor in your area, please
visit www.invisalign.com. For additional information about the
iTero digital scanning system, please visit www.itero.com. For
additional information about exocad dental CAD/CAM offerings and a
list of exocad reseller partners, please
visit www.exocad.com.
Forward-Looking StatementsThis
news release, including the tables below, contains forward-looking
statements, including quotations from management regarding business
and product momentum and growth, our expectations for digital
adoption in dentistry and the potential impact of our products in
the transition, our intentions regarding stock repurchases and the
timing of any repurchases, our marketing activities, our
expectations regarding manufacturing expansion in EMEA, our
expectations for our new products, features, and accessories and
their availability, and statements in the paragraphs under FY 2021
Business Outlook regarding certain business metrics on either or
both a GAAP or non-GAAP basis for 2021, including, but not limited
to, anticipated net revenues for the year and, in particular, the
second half of 2021, operating margin, and in connection with the
timing, means and amount of anticipated stock repurchases.
Forward-looking statements contained in this news release relating
to expectations about future events or results are based upon
information available to Align as of the date hereof. Readers are
cautioned that these forward-looking statements are only
predictions and are subject to risks, uncertainties, and
assumptions that are difficult to predict. As a result, actual
results may differ materially and adversely from those expressed in
any forward-looking statement.
Factors that might cause such a difference
include, but are not limited to:
- the impact of the COVID-19 pandemic
on the health and safety of our employees, customers, patients, and
our suppliers, as well as the physical and economic impacts of the
various recommendations, orders, and protocols issued by local and
national governmental agencies in light of continual evolution of
the pandemic, including any periodic reimplementation of
preventative measures in various global locations;
- difficulties predicting customer
and consumer purchasing behavior and changes in consumer spending
habits as a result of, among other things, prevailing economic
conditions, levels of employment, salaries and wages, and consumer
confidence, particularly in light of the pandemic and as
pandemic-related restrictions are eased regionally and
globally;
- unexpected or rapid changes in the
growth or decline of our domestic and/or international
markets;
- increasing competition from
existing and new competitors;
- rapidly evolving and groundbreaking
advances that fundamentally alter the dental industry or the way
new and existing customers market and provide products and services
to consumers;
- the ability to protect our
intellectual property rights;
- continued compliance with
regulatory requirements;
- declines in, or the slowing of the
growth of, sales of our intra-oral scanners domestically and/or
internationally and the impact either would have on the adoption of
Invisalign products;
- the willingness and ability of our
customers to maintain and/or increase product utilization in
sufficient numbers;
- the possibility that the
development and release of new products or enhancements to existing
products do not proceed in accordance with the anticipated timeline
or may themselves contain bugs or errors requiring remediation and
that the market for the sale of these new or enhanced products may
not develop as expected;
- a tougher consumer demand
environment in China generally, especially for manufacturers and
service providers whose headquarters or primarily operations are
not based in China;
- the risks relating to our ability
to sustain or increase profitability or revenue growth in future
periods (or minimize declines) while controlling expenses;
- the impact of excess or constrained
capacity at our manufacturing and treat operations facilities and
pressure on our internal systems and personnel;
- the compromise of customer and/or
patient data for any reason;
- the timing of case submissions from
our doctors within a quarter as well as an increased manufacturing
costs per case;
- foreign operational, political and
other risks relating to our international manufacturing operations;
and
- the loss of key personnel or work
stoppages.
The foregoing and other risks are detailed from
time to time in our periodic reports filed with the Securities and
Exchange Commission, including, but not limited to, our Annual
Report on Form 10-K for the year ended December 31, 2020, which was
filed with the Securities and Exchange Commission (SEC) on February
26, 2021. Align undertakes no obligation to revise or update
publicly any forward-looking statements for any reason.
|
|
|
|
|
ALIGN
TECHNOLOGY, INC. |
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
(in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
Net
revenues |
|
$ |
894,771 |
|
$ |
550,963 |
|
|
|
|
|
|
Cost of net
revenues |
|
|
217,673 |
|
|
156,607 |
|
|
|
|
|
|
Gross
profit |
|
|
677,098 |
|
|
394,356 |
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
Selling, general and administrative |
|
|
397,115 |
|
|
282,906 |
|
Research and development |
|
|
54,537 |
|
|
41,532 |
|
Total operating expenses |
|
|
451,652 |
|
|
324,438 |
|
|
|
|
|
|
Income from
operations |
|
|
225,446 |
|
|
69,918 |
|
|
|
|
|
|
Interest
income and other income (expense), net: |
|
|
|
|
Interest income |
|
|
1,643 |
|
|
1,986 |
|
Other income (expense), net |
|
|
34,532 |
|
|
(18,549 |
) |
Total interest income and other income (expense), net |
|
36,175 |
|
|
(16,563 |
) |
|
|
|
|
|
Net income
before provision for (benefit from) income taxes |
|
|
261,621 |
|
|
53,355 |
|
|
|
|
|
|
Provision
for (benefit from) income taxes |
|
|
61,245 |
|
|
(1,464,776 |
) |
|
|
|
|
|
Net
income |
|
$ |
200,376 |
|
$ |
1,518,131 |
|
|
|
|
|
|
Net income
per share: |
|
|
|
|
Basic |
|
$ |
2.54 |
|
$ |
19.32 |
|
Diluted |
|
$ |
2.51 |
|
$ |
19.21 |
|
|
|
|
|
|
Shares used
in computing net income per share: |
|
|
|
|
Basic |
|
|
79,000 |
|
|
78,592 |
|
Diluted |
|
|
79,798 |
|
|
79,028 |
|
|
|
|
|
|
|
|
|
|
|
ALIGN
TECHNOLOGY, INC. |
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
March 31,2021 |
|
December 31,2020 |
ASSETS |
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
1,131,698 |
|
$ |
960,843 |
Accounts receivable, net |
|
|
718,957 |
|
|
657,704 |
Inventories |
|
|
150,643 |
|
|
139,237 |
Prepaid expenses and other current assets |
|
|
114,257 |
|
|
91,754 |
Total current assets |
|
|
2,115,555 |
|
|
1,849,538 |
|
|
|
|
|
Property,
plant and equipment, net |
|
|
763,870 |
|
|
734,721 |
Operating
lease right-of-use assets, net |
|
|
82,435 |
|
|
82,553 |
Goodwill |
|
|
427,561 |
|
|
444,817 |
Intangible
assets, net |
|
|
120,479 |
|
|
130,072 |
Deferred tax
assets |
|
|
1,521,922 |
|
|
1,552,831 |
Other
assets |
|
|
37,960 |
|
|
35,151 |
|
|
|
|
|
Total assets |
|
$ |
5,069,782 |
|
$ |
4,829,683 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
124,298 |
|
$ |
142,132 |
Accrued liabilities |
|
|
406,672 |
|
|
405,582 |
Deferred revenues |
|
|
862,872 |
|
|
777,887 |
Total current liabilities |
|
|
1,393,842 |
|
|
1,325,601 |
|
|
|
|
|
Income tax
payable |
|
|
109,668 |
|
|
105,748 |
Operating
lease liabilities |
|
|
63,845 |
|
|
64,445 |
Other
long-term liabilities |
|
|
108,851 |
|
|
100,024 |
Total liabilities |
|
|
1,676,206 |
|
|
1,595,818 |
|
|
|
|
|
Total
stockholders' equity |
|
|
3,393,576 |
|
|
3,233,865 |
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
5,069,782 |
|
$ |
4,829,683 |
|
|
|
|
|
|
|
|
|
|
ALIGN
TECHNOLOGY, INC. |
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
Net cash provided by operating activities |
|
$ |
227,187 |
|
|
$ |
9,784 |
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
Net cash provided by investing activities |
|
|
4,566 |
|
|
|
276,211 |
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
Net cash used in financing activities |
|
|
(53,435 |
) |
|
|
(34,733 |
) |
Effect of foreign exchange rate changes on cash, cash equivalents,
and restricted cash |
|
|
(7,487 |
) |
|
|
(11,007 |
) |
Net increase in cash, cash equivalents, and restricted cash |
|
|
170,831 |
|
|
|
240,255 |
|
Cash, cash equivalents, and restricted cash at beginning of the
period |
|
|
961,474 |
|
|
|
551,134 |
|
Cash, cash equivalents, and restricted cash at end of the
period |
|
$ |
1,132,305 |
|
|
$ |
791,389 |
|
|
|
|
|
|
ALIGN TECHNOLOGY, INC. |
|
|
|
|
|
|
|
|
|
|
|
|
INVISALIGN BUSINESS METRICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Fiscal |
|
Q1 |
|
|
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2021 |
Invisalign Average Selling Price (ASP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Products ASP |
|
$ |
1,340 |
|
$ |
1,330 |
|
$ |
1,245 |
|
$ |
1,230 |
|
$ |
1,275 |
|
$ |
1,265 |
|
Non-Comprehensive Products ASP |
|
$ |
1,050 |
|
$ |
1,035 |
|
$ |
1,005 |
|
$ |
1,000 |
|
$ |
1,020 |
|
$ |
1,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Invisalign Doctors Cases Were Shipped
To: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
32,315 |
|
|
22,165 |
|
|
34,625 |
|
|
38,165 |
|
|
49,615 |
|
|
38,975 |
|
International |
|
|
28,535 |
|
|
25,945 |
|
|
35,380 |
|
|
38,585 |
|
|
52,445 |
|
|
39,630 |
|
Total Doctors Cases Shipped To |
|
|
60,850 |
|
|
48,110 |
|
|
70,005 |
|
|
76,750 |
|
|
102,060 |
|
|
78,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invisalign Doctor Utilization Rates*: |
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America |
|
|
6.9 |
|
|
4.8 |
|
|
8.4 |
|
|
8.7 |
|
|
19.8 |
|
|
9.1 |
|
North American Orthodontists |
|
|
18.9 |
|
|
11.0 |
|
|
24.1 |
|
|
25.0 |
|
|
67.3 |
|
|
26.8 |
|
North American GP Dentists |
|
|
3.6 |
|
|
2.5 |
|
|
4.2 |
|
|
4.5 |
|
|
9.6 |
|
|
4.8 |
|
International |
|
|
5.1 |
|
|
4.7 |
|
|
6.4 |
|
|
6.9 |
|
|
14.5 |
|
|
6.8 |
|
Total Utilization Rates** |
|
|
5.9 |
|
|
4.6 |
|
|
7.1 |
|
|
7.4 |
|
|
16.1 |
|
|
7.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* # of cases shipped /
# of doctors to whom cases were shipped. |
**LATAM utilization
rate is not separately disclosed, but included in the total
utilization rates. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALIGN TECHNOLOGY, INC. |
|
|
|
|
|
|
|
|
|
|
|
|
STOCK-BASED COMPENSATION |
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Fiscal |
|
Q1 |
|
|
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2021 |
Stock-based Compensation (SBC) |
|
|
|
|
|
|
|
|
|
|
|
|
|
SBC included
in Gross Profit |
|
$ |
1,347 |
|
$ |
891 |
|
$ |
1,247 |
|
$ |
1,234 |
|
$ |
4,719 |
|
$ |
1,306 |
|
SBC included
in Operating Expenses |
|
|
21,580 |
|
|
24,116 |
|
|
23,982 |
|
|
24,030 |
|
|
93,708 |
|
|
25,935 |
|
Total SBC |
|
$ |
22,927 |
|
$ |
25,007 |
|
$ |
25,229 |
|
$ |
25,264 |
|
$ |
98,427 |
|
$ |
27,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALIGN TECHNOLOGY, INC. |
|
|
|
|
|
UNAUDITED GAAP TO NON-GAAP RECONCILIATION |
|
|
|
|
|
(in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
GAAP gross profit |
|
|
$ |
677,098 |
|
|
$ |
394,356 |
|
|
Stock-based
compensation |
|
|
|
1,306 |
|
|
|
1,347 |
|
|
Amortization
of intangibles (1) |
|
|
|
2,175 |
|
|
|
- |
|
Non-GAAP gross profit |
|
|
$ |
680,579 |
|
|
$ |
395,703 |
|
|
|
|
|
|
|
|
GAAP gross margin |
|
|
|
75.7 |
% |
|
|
71.6 |
% |
Non-GAAP gross margin |
|
|
|
76.1 |
% |
|
|
71.8 |
% |
|
|
|
|
|
|
|
GAAP operating expenses |
|
|
$ |
451,652 |
|
|
$ |
324,438 |
|
|
Stock-based
compensation |
|
|
|
(25,935 |
) |
|
|
(21,580 |
) |
|
Amortization
of intangibles (1) |
|
|
|
(888 |
) |
|
|
- |
|
|
Acquisition
related costs (2) |
|
|
|
(36 |
) |
|
|
(1,339 |
) |
Non-GAAP operating expenses |
|
|
$ |
424,793 |
|
|
$ |
301,519 |
|
|
|
|
|
|
|
|
GAAP income from operations |
|
|
$ |
225,446 |
|
|
$ |
69,918 |
|
|
Stock-based
compensation |
|
|
|
27,241 |
|
|
|
22,927 |
|
|
Amortization
of intangibles (1) |
|
|
|
3,063 |
|
|
|
- |
|
|
Acquisition
related costs (2) |
|
|
|
36 |
|
|
|
1,339 |
|
Non-GAAP income from operations |
|
|
$ |
255,786 |
|
|
$ |
94,184 |
|
|
|
|
|
|
|
|
GAAP operating margin |
|
|
|
25.2 |
% |
|
|
12.7 |
% |
Non-GAAP operating margin |
|
|
|
28.6 |
% |
|
|
17.1 |
% |
|
|
|
|
|
|
|
GAAP interest income and other income (expense),
net |
|
|
$ |
36,175 |
|
|
$ |
(16,563 |
) |
|
Acquisition
related costs (2) |
|
|
|
- |
|
|
|
9,175 |
|
|
Arbitration
award gain (3) |
|
|
|
(43,403 |
) |
|
|
- |
|
Non-GAAP interest income and other income (expense),
net |
|
|
$ |
(7,228 |
) |
|
$ |
(7,388 |
) |
|
|
|
|
|
|
|
GAAP net income before provision for (benefit from) income
taxes |
|
|
$ |
261,621 |
|
|
$ |
53,355 |
|
|
Stock-based
compensation |
|
|
|
27,241 |
|
|
|
22,927 |
|
|
Amortization
of intangibles (1) |
|
|
|
3,063 |
|
|
|
- |
|
|
Acquisition
related costs (2) |
|
|
|
36 |
|
|
|
10,514 |
|
|
Arbitration
award gain (3) |
|
|
|
(43,403 |
) |
|
|
- |
|
Non-GAAP net income before provision for (benefit from)
income taxes |
|
|
$ |
248,558 |
|
|
$ |
86,796 |
|
|
|
|
|
|
|
|
GAAP provision for (benefit from) income
taxes |
|
|
$ |
61,245 |
|
|
$ |
(1,464,776 |
) |
|
Tax impact
on non-GAAP adjustments |
|
|
|
7,155 |
|
|
|
136 |
|
|
Tax related
non-GAAP items (4) |
|
|
|
(18,194 |
) |
|
|
1,493,494 |
|
Non-GAAP provision for (benefit from) income
taxes |
|
|
$ |
50,206 |
|
|
$ |
28,854 |
|
|
|
|
|
|
|
|
GAAP effective tax rate |
|
|
|
23.4 |
% |
|
|
(2,745.3 |
)% |
Non-GAAP effective tax rate |
|
|
|
20.2 |
% |
|
|
33.2 |
% |
|
|
|
|
|
|
|
GAAP net income |
|
|
$ |
200,376 |
|
|
$ |
1,518,131 |
|
|
Stock-based
compensation |
|
|
|
27,241 |
|
|
|
22,927 |
|
|
Amortization
of intangibles (1) |
|
|
|
3,063 |
|
|
|
- |
|
|
Acquisition
related costs (2) |
|
|
|
36 |
|
|
|
10,514 |
|
|
Arbitration
award gain (3) |
|
|
|
(43,403 |
) |
|
|
- |
|
|
Tax impact
on non-GAAP adjustments |
|
|
|
(7,155 |
) |
|
|
(136 |
) |
|
Tax related
non-GAAP items (4) |
|
|
|
18,194 |
|
|
|
(1,493,494 |
) |
Non-GAAP net income |
|
|
$ |
198,352 |
|
|
$ |
57,942 |
|
|
|
|
|
|
|
|
GAAP diluted net income per share |
|
|
$ |
2.51 |
|
|
$ |
19.21 |
|
Non-GAAP diluted net income per share |
|
|
$ |
2.49 |
|
|
$ |
0.73 |
|
|
|
|
|
|
|
|
Shares used in computing diluted net income per
share |
|
|
|
79,798 |
|
|
|
79,028 |
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
(1) During Q1'21, we
recorded amortization of intangible assets related to our Q2'20
exocad acquisition. |
(2) During Q1'21,
acquisition costs were for professional fees related to our Q2'20
exocad acquisition. During Q1'20, acquisition costs included third
party advisory, legal, tax, accounting, banking, valuation, and
other professional or consulting fees and foreign exchange losses
related to a forward contract for the purchase commitment related
to our Q2'20 exocad acquisition. |
(3) During Q1'21,
we recorded a $43.4 million gain from the SDC arbitration award
regarding the value of Align's capital account balance. |
(4) During Q1'21,
we recorded our quarterly amortization and certain adjustment to
the benefit from the transferred intangible assets of our Swiss
entity. During Q1'20, we recorded a one-time net tax benefit for
the deferred tax asset and certain costs associated with the
intra-entity transfer of certain intellectual property rights and
assets to our Swiss subsidiary and related tax impact from the
amortization of the transferred intangibles assets. |
|
|
|
|
|
|
|
Refer to "About Non-GAAP Financial Measures" section of press
release. |
|
|
|
|
ALIGN TECHNOLOGY, INC. |
|
|
|
|
FY21 OUTLOOK - GAAP TO NON-GAAP RECONCILIATION |
|
|
|
|
|
|
|
|
Range |
|
GAAP Operating Margin |
23.5% |
to |
24.5% |
|
Stock-based compensation |
3% |
- |
3% |
|
Amortization of intangibles (1) |
0% |
- |
0% |
|
Non-GAAP operating margin |
27% |
to |
28% |
|
|
|
|
|
|
(1) Amortization of intangible assets related to our Q2'20 exocad
acquisition. |
|
Align Technology |
Zeno Group |
Madelyn Homick |
Sarah Johnson |
(408) 470-1180 |
(828) 551-4201 |
mhomick@aligntech.com |
sarah.johnson@zenogroup.com |
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