SAN JOSE, CA--(Marketwired - January 30, 2018) -

  • Q4 revenues up 43.7% year-over-year to a record $421.3 million, and diluted EPS of $0.13, includes $86.6 million tax expense, or $1.06 per diluted share negative impact due to the new U.S. Tax Cut and Jobs Act
  • Q4 operating income up 60.3% year-over-year to a record $109.6 million or operating margin of 26.0%
  • Q4 total Invisalign case shipments up 34.2% year-over-year to 255.0 thousand
  • Q4 Invisalign cases for teenage patients up 44.1% year-over-year to 63.5 thousand
  • Q4 scanner and services revenues up 37.0% year-over-year to $57.1 million
  • Record 2017 Invisalign revenues up 34.1% year-over-year to $1.3 billion with Invisalign case shipments up 31.4% year-over-year to 931.0 thousand
  • Record 2017 iTero scanner volume up 37.5%

Align Technology, Inc. (NASDAQ: ALGN) today reported financial results for the fourth quarter and year ended December 31, 2017. Invisalign case shipments in the fourth quarter of 2017 (Q4'17) were 255.0 thousand, up 34.2% year-over-year. North America and International case shipments were up year-over-year 24.2% and 52.3%, respectively. Q4'17 Invisalign cases for teenage patients were 63.5 thousand, up 44.1% year-over-year. Q4'17 revenues were $421.3 million, up 43.7% year-over-year with Q4'17 operating income a record $109.6 million, up 60.3% year-over-year resulting in an operating margin of 26.0%. Q4'17 net profit was $10.3 million, or $0.13 per diluted share, which includes an $86.6 million tax expense, or $1.06 per diluted share negative impact due to the new U.S. Tax Cut and Jobs Act, comprised of a $10.0 million non-cash write-down of our deferred tax assets and a mandatory deemed repatriation tax of $76.6 million.

For 2017, record Invisalign revenues were $1.3 billion, up 34.1% year-over-year with Invisalign case shipments of 931.0 thousand, up 31.4% year-over-year. 2017 iTero revenues were $164.2 million, up 35.1% with record volumes, up 37.5% year-over-year. 2017 Invisalign cases for teenage patients were 237.5 thousand, up 40.4% year-over-year. For 2017, revenues were $1.5 billion, up 36.4% year-over-year and net profit was $231.4 million, or $2.83 per diluted share, which includes an $86.6 million tax expense, or $1.06 per diluted share negative impact due to the new U.S. Tax Cut and Jobs Act, comprised of a $10.0 million non-cash write-down of our deferred tax assets and a mandatory deemed repatriation tax of $76.6 million.

Commenting on Align's Q4 and 2017 results, Align Technology President and CEO Joe Hogan said, "Overall, the fourth quarter was a strong finish to another outstanding year for Align, with better than expected revenues, volumes and operating income. Record Q4 revenues were up 43.7% year-over-year driven by increased Invisalign volumes across all geographies and customer channels, as well as by record iTero scanner revenue. Q4 Invisalign volume was up 34.2% year-over-year reflecting strong international growth from increased utilization and expansion of our customer base which included over 4,000 new customers for the third consecutive quarter. Notwithstanding this strong performance, our Q4 results were impacted by the new U.S. Tax Cut and Jobs Act which reduced our reported net income and EPS. However, Q4 operating income was a record $109.6M or 26.0%."

Hogan continued, "For the full year, revenues of $1.5 billion increased 36.4% year-over-year driven by both record Invisalign revenue which surpassed the $1 billion mark for the first time ever and record iTero scanner revenues. These results reflect continued progress and execution of our four strategic growth drivers which focus on: driving international expansion; increasing Orthodontists utilization of Invisalign, especially with teenagers; enabling GP dentists to treat or refer more Invisalign cases; and generating consumer demand from millions of people worldwide and connecting them with an Invisalign doctor."

GAAP Summary Financial Comparisons
Fourth Quarter Fiscal 2017
   Q4'17  Q3'17  Q4'16  Q/Q Change  Y/Y Change
Invisalign Case Shipments1  255.0K  236.1K  190.1K  +8.0%  +34.2%
Net Revenues  $421.3M  $385.3M  $293.2M  +9.4%  +43.7%
 Clear Aligner2  $364.2M  $341.6M  $251.5M  +6.6%  +44.8%
 Scanner & Services  $57.1M  $43.7M  $41.7M  +30.8%  +37.0%
Net Profit3  $10.3M  $82.6M  $47.6M  (87.6)%  (78.4)%
Diluted EPS3  $0.13  $1.01  $0.59  $(0.88)  $(0.46)
Fiscal 2017
   2017  2016  Y/Y Change
Invisalign Case Shipments1  931,045  708,500  +31.4%
Net Revenues  $1,473.4M  $1,079.9M  +36.4%
 Clear Aligner2  $1,309.3M  $958.3M  +36.6%
 Scanner & Services  $164.2M  $121.5M  +35.1%
Net Profit3  $231.4M  $189.7M  +22.0%
Diluted EPS3  $2.83  $2.33  +$0.50
Note: Changes and percentages are based on actual values and may effect totals due to rounding
1 Invisalign Shipment figures do not include SmileDirectClub aligners
2 Clear aligner revenue includes revenues from Invisalign clear aligners and SmileDirectClub aligners
3 Q4'17 and 2017 net profit and diluted EPS includes $86.6 million tax expense, or $1.06 per diluted share negative impact due to the new U.S. Tax Cut and Jobs Act

As of December 31, 2017, Align had $761.5 million in cash, cash equivalents and marketable securities compared to $700.0 million as of December 31, 2016. We repurchased approximately 0.2 million shares of stock for $50.0 million in Q4'17 under the April 2016 Repurchase Program. We have $200.0 million remaining available for repurchases under the existing stock repurchase authorization.

2017 Business Highlights

The following list highlights Align's key announcements over the past year:

  • Expanded restorative digital workflow solutions for iTero Element® scanner to include iTero Chairside CAD, a chairside prosthetics design software application that will support same-day dentistry as part of collaboration with Exocad GmbH.
  • Celebrated the 5 millionth Invisalign® patient, a 12-year old Canadian teenager starting Invisalign treatment with mandibular advancement.
  • Signed distribution agreement with Glidewell Dental for the iTero Element® intraoral scanning system in North America with™ In-Office Solution, a chairside restorative ecosystem designed to simplify the process of prescribing and delivering laboratory-quality dental restorations.
  • Opened the first Invisalign® store pilot in San Francisco to help consumers connect with an Invisalign® provider to improve their smile with Invisalign® treatment.
  • Awarded nearly $300,000 to researchers at universities in North America, Europe and Asia Pacific as part of the Company's Research Award Program to support clinical and scientific dental research.
  • Signed distribution agreement Patterson Dental for iTero Element® intraoral scanning system in U.S. and Canada.
  • Opened first Invisalign® Treatment Planning Facility in Chengdu, China.
  • Launched TimeLapse technology for digital scan comparisons and ability to complete a scan in as little as 1 minute as part of a software upgrade for its iTero Element® intraoral scanners.
  • Received U.S. Patents for SmartTrack material, an innovative multi-layer polymer that delivers more gentle, constant force to improve control of tooth movements with Invisalign® clear aligners.
  • Celebrated the 1 millionth Invisalign® Teen patient, an 11 year-old boy from the U.S. starting Invisalign treatment.
  • Launched first global, multi-million dollar Invisalign brand platform and marketing campaign.
  • Achieved over 1 million scans submitted with iTero Element® scanner since its introduction in 2015.
  • Introduced of Invisalign® Teen with mandibular advancement feature, the first clear aligner solution for Class II correction in growing tween and teen patients. (Not yet available in the U.S., pending FDA approval).
  • Expanded digital implant workflow options for the iTero® intraoral scanner with Nobel Biocare implants and ELOS Medtech scan bodies.

Q1 2018 Business Outlook

For the first quarter of 2018 (Q1'18), Align provides the following guidance:

  • Net revenues in the range of $400 million to $410 million, up approximately 29% to 32% over the same period a year ago.
  • Invisalign case shipments in the range of 264 thousand to 269 thousand, up approximately 27% to 29% over the same period a year ago.
  • Operating margin in the range of 18.5% to 19.5%
  • Diluted EPS in the range of $0.94 to $0.98.

Align Web Cast and Conference Call
Align will host a conference call today, January 30, 2018 at 4:30 p.m. ET, 1:30 p.m. PT, to review its fourth quarter and year ended 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 13674959 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 February 13, 2018.

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 first quarter of 2018 year end, 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, the security of customer and/or patient data is compromised for any reason, 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, and its latest Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, which was filed with the SEC on November 2, 2017. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

ALIGN TECHNOLOGY, INC.                
(in thousands, except per share data)                
   Three Months Ended
December 31,
  Year Ended
December 31,
   2017   2016   2017  2016  
Net revenues  $421,323   $293,203   $1,473,413  $1,079,874  
Cost of net revenues   103,406    72,954    356,466   264,580  
Gross profit   317,917    220,249    1,116,947   815,294  
Operating expenses:                    
 Selling, general and adminstrative   182,141    130,268    665,777   490,653  
 Research and development   26,170    21,609    97,559   75,720  
  Total operating expenses   208,311    151,877    763,336   566,373  
Income from operations   109,606    68,372    353,611   248,921  
Interest and other income (expense), net   2,581    (7,516 )  11,188   (6,355 )
Net income before provision for income taxes and equity in losses (gains) of investee   112,187    60,856    364,799   242,566  
Provision for income taxes   103,654    12,028    130,162   51,200  
Equity in losses (gains) of investee, net of tax   (1,731 )  1,207    3,219   1,684  
Net income  $10,264   $47,621   $231,418  $189,682  
Net income per share:                    
 Basic  $0.13   $0.60   $2.89  $2.38  
 Diluted  $0.13   $0.59   $2.83  $2.33  
Shares used in computing net income per share:                    
 Basic   80,080    79,667    80,085   79,856  
 Diluted   81,863    81,248    81,832   81,484  
(in thousands)      
   December 31,
 December 31,
Current assets:        
 Cash and cash equivalents  $449,511  $389,275
 Marketable securities, short-term   272,031   250,981
 Accounts receivable, net   322,825   247,415
 Inventories   31,688   27,131
 Prepaid expenses and other current assets   80,948   38,176
  Total current assets   1,157,003   952,978
Marketable securities, long-term   39,948   59,783
Property, plant and equipment, net   348,793   175,167
Equity method investments   54,606   45,061
Goodwill and intangible assets, net   89,068   81,998
Deferred tax assets   50,059   67,844
Other assets   38,379   13,320
  Total assets  $1,777,856  $1,396,151
Current liabilities:        
 Accounts payable  $36,776  $28,596
 Accrued liabilities   194,198   134,332
 Deferred revenues   266,842   191,407
  Total current liabilities   497,816   354,335
Income tax payable   114,091   45,133
Other long-term liabilities   15,579   1,294
   Total liabilities   627,486   400,762
Total stockholders' equity   1,150,370   995,389
  Total liabilities and stockholders' equity  $1,777,856  $1,396,151
   Q4   Fiscal   Q1   Q2   Q3   Q4   Fiscal  
   2016   2016   2017   2017   2017   2017   2017  
Invisalign Average Selling Price (ASP):                                    
 Worldwide ASP  $1,230   $1,265   $1,270   $1,285   $1,310   $1,305   $1,295  
 International ASP  $1,315   $1,335   $1,325   $1,335   $1,390   $1,390   $1,360  
Invisalign Cases Shipped by Geography:                                    
 North America   122,555    463,810    132,885    146,510    144,870    152,245    576,510  
 International   67,500    244,690    75,175    85,380    91,195    102,785    354,535  
  Total Cases Shipped   190,055    708,500    208,060    231,890    236,065    255,030    931,045  
   YoY % growth   18.5 %  21.5 %  27.1 %  31.0 %  32.8 %  34.2 %  31.4 %
   QoQ % growth   6.9 %       9.5 %  11.5 %  1.8 %  8.0 %     
Number of Invisalign Doctors Cases Were Shipped To:                            
 North America   23,265    34,065    23,910    24,695    24,845    25,365    36,415  
 International   13,635    20,415    14,955    16,570    17,760    19,620    27,990  
  Total Doctors Cases Shipped To   36,900    54,480    38,865    41,265    42,605    44,985    64,405  
Invisalign Doctor Utilization Rates*:                                    
 North America   5.3    13.6    5.6    5.9    5.8    6.0    15.8  
  North American Orthodontists   11.3    36.6    12.6    13.6    13.8    14.0    46.6  
  North American GP Dentists   3.2    7.6    3.1    3.3    3.1    3.3    8.2  
 International   5.0    12.0    5.0    5.2    5.1    5.2    12.7  
  Total Utilization Rates   5.2    13.0    5.4    5.6    5.5    5.7    14.5  
 * # of cases shipped/# of doctors to whom cases were shipped                            
Number of Invisalign Doctors Trained:                                    
 North America   1,420    4,720    980    1,620    1,460    1,340    5,400  
 International   2,280    6,960    2,280    3,255    2,820    2,745    11,100  
  Total Doctors Trained Worldwide   3,700    11,680    3,260    4,875    4,280    4,085    16,500  
  Total to Date Worldwide   115,470    115,470    118,730    123,605    127,885    131,970    131,970  
Note: Historical public data may differ due to rounding. Additionally, rounding may effect totals.
*Invisalign business metrics exclude SmileDirectClub aligners.
(in thousands)       
   Q4  Fiscal  Q1  Q2  Q3  Q4  Fiscal
   2016  2016  2017  2017  2017  2017  2017
Stock-based Compensation (SBC)                            
 SBC included in Gross Profit  $1,078  $3,966  $925  $768  $833  $804  $3,330
 SBC included in Operating Expenses   13,136   50,182   13,887   13,477   14,134   14,026   55,524
  Total SBC Expense  $14,214  $54,148  $14,812  $14,245  $14,967  $14,830  $58,854
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)  
  Q1'18 Guidance  
Net Revenues $400.0 - $410.0  
Gross Margin 74.3% - 75.0%  
Operating Expenses $223.5 - $227.5  
Operating Margin 18.5% - 19.5%  
Net Income per Diluted Share $0.94 - $0.98 (1)
Business Metrics: Q1'18  
Case Shipments 264.0K - 269.0K  
Capital Expenditure $65M - $70M  
Depreciation & Amortization $10.5M - $11M  
Diluted Shares Outstanding 82.0M (2)
Stock Based Compensation Expense $16.2M  
Effective Tax Rate 2.0% (1)
(1) Includes the benefit from the adoption of the accounting standard update 2016-09 related to share-based compensation expense
(2) Excludes any stock repurchases during the quarter 

Contact Information:

Align Technology
Yin Cantor
(408) 470-1044

Ethos Communication:
Shannon Mangum Henderson
(678) 261-7803