On April 24, 2024, Align Technology Inc (ALGN, Financial) released its 8-K filing, announcing its financial results for the first quarter of 2024. The company reported a total revenue of $997.4 million, marking a 5.8% increase year-over-year, which surpasses the analyst's expectation of $974.41 million. However, the diluted net income per share stood at $1.39, falling short of the estimated $1.97 per share.
Align Technology, a global frontrunner in the medical device sector, specializes in the design, manufacture, and sale of the Invisalign system of clear aligners, iTero intraoral scanners, and exocad CAD/CAM software. These products are integral to modern digital orthodontics and restorative dentistry, helping the company maintain a dominant position in the market.
Financial and Operational Highlights
The first quarter saw Align Technology achieving a revenue of $997.4 million, a 4.3% increase from the previous quarter and a 5.8% increase from the same period last year. This growth was primarily driven by a 3.5% increase in Clear Aligner revenues, which totaled $817.3 million, and a significant 17.5% increase in Imaging Systems and CAD/CAM Services revenues, which reached $180.2 million.
Despite these gains, the company experienced a decrease in net income, reporting $105.0 million compared to $124.0 million in the previous quarter, a 15.3% decline. This was offset by a year-over-year increase of 19.6% compared to Q1'23. The diluted earnings per share (EPS) also saw a decrease from the previous quarter, down $0.24 to $1.39, but increased by $0.26 compared to the same quarter last year.
Strategic Developments and Future Outlook
Joe Hogan, President and CEO of Align Technology, commented on the results:
“I’m pleased to report better than expected revenue and earnings for the first quarter and a solid start to the year... During the quarter, we achieved several significant milestones: We completed the acquisition of Cubicure GmbH, a leader in direct 3D printing solutions which is the foundation for our next generation aligner manufacturing; we successfully launched the iTero Lumina™ intraoral scanner – our next generation of digital scanning technology; we launched the Invisalign® Palatal Expander system in the U.S. and Canada, and we received regulatory approval for the Invisalign Palatal Expander in Australia and New Zealand.”
For the second quarter of 2024, Align Technology expects worldwide revenues to be in the range of $1,030M to $1,050M. The company also anticipates a slight increase in GAAP and non-GAAP operating margins compared to the first quarter.
Conclusion
Align Technology's first quarter results demonstrate a robust performance in revenue growth, driven by significant contributions from its Clear Aligner and Imaging Systems segments. However, the earnings per share did not meet analyst expectations, which could be a point of concern for investors. The company's strategic acquisitions and product launches indicate a positive trajectory, aiming to reinforce its market leadership and address the evolving needs of digital orthodontics and restorative dentistry.
Explore the complete 8-K earnings release (here) from Align Technology Inc for further details.
