Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the overall demand environment, particularly in the U.S., and the impact of SmileDirectClub's reduced advertising on volumes?
A: Joseph M. Hogan - Align Technology, Inc. - President, CEO & Director
The demand environment is described as stable globally, including in the U.S. There is no significant change attributed to SmileDirectClub's reduced advertising. The stability is consistent across all regions, with both adult and teen segments showing good performance.
Q: How does the commercialization within teens look in the next couple of years with the introduction of the Palatal Expander?
A: Joseph M. Hogan - Align Technology, Inc. - President, CEO & Director
The Palatal Expander addresses about 20% of the market previously unreachable, potentially increasing adoption among orthodontists for Phase I treatments. The product is expected to encourage more orthodontists to start early treatments, although market acceptance may take time.
Q: Can you elaborate on the month-to-month trends observed in the quarter, particularly any shifts in February and March, and early indications from April?
A: John F. Morici - Align Technology, Inc. - CFO & Executive VP of Global Finance
The company observed stability throughout the quarter without significant month-to-month fluctuations. The focus remains on broader quarterly performance rather than short-term changes.
Q: What are the expectations for operating margins in light of the revised revenue guidance?
A: John F. Morici - Align Technology, Inc. - CFO & Executive VP of Global Finance
The operating margins are expected to improve slightly from Q1 to Q2 and show year-over-year growth, reflecting ongoing investments in growth strategies and new product introductions.
Q: How is the launch of the iTero Lumina intraoral scanner progressing, and what impact is it having?
A: Joseph M. Hogan - Align Technology, Inc. - President, CEO & Director
The iTero Lumina launch has been well-received, particularly by orthodontists, for its advanced scanning capabilities. It is expected to set new standards in dental scanning technology.
Q: Can you provide insights into the financial impact and strategic benefits of the additional investment in Heartland Dental?
A: John F. Morici - Align Technology, Inc. - CFO & Executive VP of Global Finance
The investment in Heartland Dental aligns with Align's digital orthodontic strategy and helps expand into markets where Align has less presence. The partnership is viewed as beneficial for both companies' expansion and digital transformation goals.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
