SAN JOSE, CA--(Marketwired - April 27, 2017) -

  • Q1 revenues up 5.8% sequentially, up 30.0% year-over-year to a record $310.3 million
  • Q1 Invisalign case shipments up 9.5% sequentially, up 27.1% year-over-year to a record 208 thousand cases
  • Q1 International Invisalign case shipments up 41% year-over-year, North America Invisalign case shipments up 20% year-over-year
  • Q1 Invisalign case shipments to teenage patients up 11.3% sequentially, up 31.6% year-over-year

Align Technology, Inc. (NASDAQ: ALGN) today reported financial results for the first quarter ended March 31, 2017. Invisalign case shipments in the first quarter of 2017 (Q1'17) were 208.1 thousand, a 27.1% increase year-over-year. For Q1'17, revenues were $310.3 million, a 30.0% increase year-over-year, and net profit was $69.4 million, or $0.85 per diluted share, up $0.35 per diluted share compared to the same period in the prior year. Q1'17 EPS included the benefit of $21.3 million, or $0.26, from excess tax benefits on stock based compensation in accordance with the new accounting guidance.

Commenting on Align's Q1 2017 results, Align Technology President and CEO Joe Hogan said, "2017 is off to a great start with first quarter revenues, volumes, gross margin and EPS above our expectations. For the quarter, net revenues were up 30% year-over-year, driven by strong Invisalign case shipments of 27% year-over-year to a record 38.9 thousand doctors shipped to during the quarter. These results reflect growth from both our North America and International regions, and higher than expected teenage cases across the board, which increased 32% year-over-year. iTero scanner revenues increased 47% year-over-year, and were down sequentially as expected."

GAAP Summary Financial Comparisons

First Quarter Fiscal 2017

   Q1'17  Q4'16  Q1'16  Q/Q Change  Y/Y Change
Invisalign Case Shipments*  208,060  190,055  163,695  +9.5%  +27.1%
Net Revenues  $310.3M  $293.2M  $238.7M  +5.8%  +30.0%
 Clear Aligner**  $282.4M  $251.5M  $219.7M  +12.3%  +28.5%
 Scanner & Services  $27.9M  $41.7M  $19.0M  (33.0)%  +46.9%
Net Profit  $69.4M  $47.6M  $40.5M  +45.8%  +71.2%
Diluted EPS  $0.85  $0.59  $0.50  +$0.26  +$0.35

Note: Changes and percentages are based on actual values and may effect totals due to rounding
* Invisalign Shipment figures does not include SmileDirectClub aligners
** Clear aligner revenue includes revenues from Invisalign clear aligners and SmileDirectClub aligners

As of March 31, 2017, Align had $644.2 million in cash, cash equivalents and marketable securities compared to $700.0 million as of December 31, 2016. In Q1'17, we purchased a new headquarters building in San Jose, California for approximately $44.1 million. We also paid $36.5M for employee taxes related to the net settlement of vesting employee stock awards during the quarter. Lastly, we repurchased approximately 0.04 million shares of stock for $3.8 million in Q1'17 under the 2014 Repurchase Program. Align has $300.0 million available for repurchase under its 2016 Repurchase Program announced on April 28, 2016.

Q2 2017 Business Outlook

For the second quarter of 2017 (Q2'17), Align provides the following guidance:

  • Invisalign case shipments in the range of 221 thousand to 224 thousand, up approximately 25% to 27% over the same period a year ago.
  • Net revenues in the range of $340 million to $345 million, up approximately 26% to 28% over the same period a year ago.
  • Diluted EPS in the range of $0.71 to $0.74, which includes $0.03 of excess tax benefit.

Regarding our tax rate: During the first quarter of 2017, we adopted accounting standards update entitled "Improvements to Employee Share-Based Payment Accounting". Under this new standard, excess tax benefits and deficiencies associated with employee share-based payments are no longer recognized as additional paid-in capital on the balance sheet but instead are recognized directly to income tax expense or benefit in the income statement for the reporting period in which they occur. Under this new standard, we expect our Q2 effective tax rate to be approximately 21%, which includes $2 to $3 million in excess tax benefits.

Align Web Cast and Conference Call

Align will host a conference call today, April 27, 2017 at 4:30 p.m. ET, 1:30 p.m. PT, to review its first quarter 2017 results, discuss future operating trends and the business outlook. The conference call will also be web cast 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 To access the conference call, please dial 201-689-8261. An archived audio web cast will be available beginning approximately one hour after the call's conclusion and will remain available for approximately 12 months. Additionally, a telephonic replay of the call can be accessed by dialing 877-660-6853 with conference number 13658703 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 11, 2017.

About Align Technology, Inc.

Align Technology designs and manufactures the Invisalign® system, the most advanced clear aligner system in the world, and iTero® intraoral scanners and services. Align's products help dental professionals achieve the clinical results they expect and deliver effective, cutting-edge dental options to their patients. Visit for more information.

For additional information about the Invisalign system or to find an Invisalign provider in your area, please visit For additional information about iTero digital scanning system, please visit

Forward-Looking Statement

This news release, including the tables below, contains forward-looking statements, including statements regarding certain business metrics for the second quarter of 2017, including, but not limited to, anticipated net revenues, gross margin, operating expenses, operating profit, diluted earnings per share, tax rate and case shipments. Forward-looking statements contained in this news release and the tables below 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, difficulties predicting customer and consumer purchasing behavior, Align's ability to protect its intellectual property rights, continued compliance with regulatory requirements, competition from existing and new competitors, 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 does not proceed in accordance with the anticipated timeline, the possibility that the market for the sale of these new products may not develop as expected, or that the expected benefits of new or existing business relationships will not be achieved as anticipated, the risks relating to Align's ability to sustain or increase profitability or revenue growth in future periods while controlling expenses, growth related risks, including capacity constraints and pressure on our internal systems and personnel, continued customer demand for our existing and new products, changes in consumer spending habits as a result of, among other things, prevailing economic conditions, levels of employment, salaries and wages and consumer confidence, the timing of case submissions from our doctors within a quarter, acceptance of our products by consumers and dental professionals, foreign operational, political and other risks relating to Align's international manufacturing operations, Align's ability to develop and successfully introduce new products and product enhancements and the loss of key personnel. These and other risks are detailed from time to time in Align's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the Securities and Exchange Commission (SEC) on February 28, 2017. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

(in thousands, except per share data)      
   Three Months Ended
March 31, 2017
March 31, 2016
Net revenues  $310,341  $238,720
Cost of net revenues   74,716   58,093
Gross profit   235,625   180,627
Operating expenses:        
 Selling, general and adminstrative   151,148   112,210
 Research and development   22,804   15,083
  Total operating expenses   173,952   127,293
Income from operations   61,673   53,334
Interest and other income (expense), net   1,645   (427)
Net income before provision for income taxes and equity in losses of investee   63,318   52,907
Provision (benefit) for income taxes   (7,223)   12,361
Equity in losses of investee, net of tax   1,121   -
Net income  $69,420  $40,546
Net income per share:        
 Basic  $0.87  $0.51
 Diluted  $0.85  $0.50
Shares used in computing net income per share:        
 Basic   79,904   79,831
 Diluted   81,534   81,320
(in thousands)      
   March 31, 
 December 31,
Current assets:      
 Cash and cash equivalents  $261,027  $389,275
 Marketable securities, short-term   284,559   250,981
 Accounts receivable, net   267,128   247,415
 Inventories   35,174   27,131
 Prepaid expenses and other current assets   70,279   38,176
  Total current assets   918,167   952,978
Marketable securities, long-term   98,574   59,783
Property, plant and equipment, net   231,692   175,167
Equity method investments   43,940   45,061
Goodwill and intangible assets, net   92,447   81,998
Deferred tax assets   60,068   67,844
Other assets   14,405   13,320
  Total assets  $1,459,293  $1,396,151
Current liabilities:        
 Accounts payable  $37,028  $28,596
 Accrued liabilities   125,631   134,332
 Deferred revenues   202,895   191,407
  Total current liabilities   365,554   354,335
Income tax payable   46,322   45,133
Other long term liabilities   2,542   1,294
  Total liabilities   414,418   400,762
Total stockholders' equity   1,044,875   995,389
  Total liabilities and stockholders' equity  $1,459,293  $1,396,151
ALIGN TECHNOLOGY, INC.                 
   Q1  Q2  Q3  Q4 Fiscal  Q1
   2016  2016  2016  2016 2016  2017
Invisalign Average Selling Price (ASP):                       
 Worldwide ASP  $1,255  $1,285  $1,285  $1,230 $1,265  $1,270
 International ASP  $1,315  $1,345  $1,365  $1,315 $1,335  $1,325
Invisalign Cases Shipped by Geography:                       
 North America   110,500   114,855   115,900   122,555  463,810   132,885
 International   53,195   62,140   61,855   67,500  244,690   75,175
  Total Cases Shipped   163,695   176,995   177,755   190,055  708,500   208,060
   YoY % growth   25.2%   22.4%   20.5%   18.5%  21.5%   27.1%
   QoQ % growth   2.1%   8.1%   0.4%   6.9%      9.5%
Number of Invisalign Doctors Cases Were Shipped To:                   
 North America   22,355   22,575   22,570   23,265  34,065   23,910
 International   11,280   12,485   12,720   13,635  20,415   14,955
  Total Doctors Cases Shipped To   33,635   35,060   35,290   36,900  54,480   38,865
Invisalign Doctor Utilization Rates*:                       
 North America   4.9   5.1   5.1   5.3  13.6   5.6
 North American Orthodontists   10.4   10.7   11.1   11.3  36.6   12.6
 North American GP Dentists   3.0   3.1   3.0   3.2  7.6   3.1
 International   4.7   5.0   4.9   5.0  12.0   5.0
  Total Utilization Rates   4.9   5.1   5.0   5.2  13.0   5.4
  * # of cases shipped/# of doctors to whom cases were shipped                   
Number of Invisalign Doctors Trained:                       
 North America   875   1,125   1,300   1,420  4,720   980
 International   1,605   1,760   1,315   2,280  6,960   2,280
  Total Doctors Trained Worldwide   2,480   2,885   2,615   3,700  11,680   3,260
  Total to Date Worldwide   106,270   109,155   111,770   115,470  115,470   118,730
Note: Historical public data may differ due to rounding. Additionally, rounding may effect totals.       
*Invisalign business metrics exclude SmileDirectClub aligners.                       
ALIGN TECHNOLOGY, INC.                       
STOCK-BASED COMPENSATION                       
(in thousands)                       
    Q1   Q2   Q3   Q4  Fiscal   Q1
    2016   2016   2016   2016  2016   2017
Stock-based Compensation (SBC)                       
 SBC included in Gross Profit  $961  $932  $995  $1,078 $3,966  $925
 SBC included in Operating Expenses   11,563   12,767   12,716   13,136  50,182   13,887
  Total SBC Expense  $12,524  $13,699  $13,711  $14,214 $54,148  $14,812
The outlook figures provided below and elsewhere in this press release are approximate in nature since Align's business outlook is difficult to predict. Align's future performance involves numerous risks and uncertainties and the company's results could differ materially from the outlook provided. Some of the factors that could affect Align's future financial performance and business outlook are set forth under "Forward Looking Information" above in this press release.
Financial Outlook      
(in millions, except per share amounts and percentages)     
   Q2'17 Guidance   
Net Revenues  $340 - $345   
Gross Margin  74.0% - 75.0%   
Operating Expenses  $180 - $184   
Operating Margin  21.0% - 21.7%   
Net Income per Diluted Share  $0.71 - $0.74  (1)
Business Metrics:  Q2'17   
Case Shipments  221K - 224K   
Capital Expenditure  $30M - $35M   
Depreciation & Amortization  $8M - $9M   
Diluted Shares Outstanding  81.6M  (2)
Stock Based Compensation Expense  $14.7M   
Effective Tax Rate  21%  (1)
(1) Includes the benefit from the adoption of the new accounting standard update for share-based compensation
(2) Excludes any stock repurchases during the quarter     

Contact Information:

Investor Relations Contact
Yin Cantor
Align Technology, Inc.
(408) 470-1044

Press Contact

Shannon Mangum Henderson
Ethos Communication, Inc.
(678) 261-7803