Financial Data and Key Metrics Changes - Q4 2024 total revenues were $995 million, a 4% increase year-over-year, with Clear Aligner revenues growing 1.6% and Systems and Services revenues increasing 14.9% [9][11][27] - For the full year 2024, total revenues reached $4 billion, reflecting a 3.5% year-over-year increase [11] - Q4 2024 non-GAAP operating margin was 23.2%, up 1.1% sequentially but down 0.6% year-over-year [40] Business Line Data and Key Metrics Changes - Clear Aligner volumes grew 6.1% year-over-year in Q4, with significant growth in EMEA, APAC, and LatAm regions [9][12] - Systems and Services revenues in Q4 were $200.9 million, up 14.9% year-over-year, driven by higher scanner volumes and non-systems revenue [33] - Q4 Clear Aligner average selling price (ASP) was $1,265, down $55 year-over-year due to product mix and higher discounts [30][36] Market Data and Key Metrics Changes - In the Americas, Clear Aligner volumes reflected strength in Latin America and improving trends in North America, while EMEA showed growth from core Europe and emerging markets [12][14] - APAC region growth was driven by China and Japan, with strong performance in emerging markets like India and Thailand [12][14] - The number of doctors submitting cases reached a record 85,700 worldwide in Q4, indicating increased engagement [13] Company Strategy and Development Direction - The company is focused on enhancing clinical outcomes and efficiency in orthodontics, with plans to commercialize the Invisalign Palatal Expander across EMEA in 2025 [17][18] - Continued investment in digital workflows and partnerships with dental support organizations (DSOs) to drive adoption of digital dentistry [22][23] - The launch of the iTero Lumina scanner with restorative capabilities is expected to enhance practice efficiency and patient outcomes [25][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive landscape, citing innovations that position the company favorably against competitors [69] - The company anticipates mid-single-digit growth in Clear Aligner volumes for 2025, despite macroeconomic uncertainties [67][101] - Management highlighted the importance of new product launches and the potential for growth in the GP channel [90][100] Other Important Information - The company completed a $30 million equity investment in Smile Doctors, enhancing its presence in the DSO market [22][44] - A favorable outcome with UK tax authorities resulted in a $100 million VAT refund, impacting financials positively [31][32] - The company plans to raise Clear Aligner list prices by approximately 3% in March 2025, while removing certain processing fees [47][48] Q&A Session Summary Question: Can you provide more details on the guidance for Clear Aligners? - Management expects mid-single-digit volume growth for Clear Aligners in 2025, reflecting a stable exit from 2024 [67] Question: How do you view competitive dynamics in the market? - Management sees no significant changes in competitive dynamics, with confidence in their innovations and market position [69] Question: What are the expectations for the Lumina scanner launch? - The Lumina scanner is expected to enhance practice efficiency, with positive feedback from orthodontic users [76][78] Question: Can you elaborate on the growth from DSOs? - DSOs are seen as a force multiplier, helping to disseminate technology and efficiency across practices [106]

Revenue Performance - Q4'24 total revenues reached $995.2 million, up 4.0% year-over-year, while FY2024 total revenues were $4.0 billion, up 3.5% year-over-year[1][2][3] - Q4'24 Clear Aligner revenues were $794.3 million, reflecting a 1.6% increase year-over-year, with total Clear Aligner shipments of 628,730 units, up 6.1% year-over-year[4][7] - Q4'24 Systems and Services revenues were $200.9 million, up 14.9% year-over-year, contributing to a total of $768.9 million for FY2024, which is a 16.0% increase from FY2023[4][8] - Clear Aligner volumes for FY2024 totaled 2.5 million cases, representing a 3.5% increase year-over-year[5][8] - GAAP net revenues for fiscal 2024 reached $3,999,012, a 3.5% increase from $3,862,260 in 2023[38] - Clear Aligner net revenues were $3,230,122, up from $3,199,329, reflecting a 1.0% constant currency impact[38] Profitability Metrics - FY2024 operating margin was 15.2%, with a non-GAAP operating margin of 21.8%, while diluted net income per share was $5.62, down 5.3% from FY2023[3][8] - Q4'24 net income was $103.8 million, or $1.39 per diluted share, impacted by foreign exchange losses of approximately $0.14 per diluted share[4][6] - GAAP income from operations for Q4 2024 was $144,149, down from $171,545 in Q4 2023, resulting in an operating margin of 14.5%[41] - Non-GAAP net income for Q4 2024 was $181,644,000, slightly down from $183,469,000 in Q4 2023, representing a decrease of 1.0%[44] - GAAP diluted net income per share for Q4 2024 was $1.39, down from $1.64 in Q4 2023, a decline of 15.2%[44] - Non-GAAP diluted net income per share for Q4 2024 was $2.44, compared to $2.42 in Q4 2023, an increase of 0.8%[44] Cash and Investments - The company repurchased $352.9 million of common stock in 2024, concluding the year with no debt and approximately $1,044 million in cash and cash equivalents[3][10] - Cash and cash equivalents at the end of 2024 were $1,043,887 thousand, up from $937,438 thousand at the end of 2023[33] - The company reported a total stockholders' equity of $3,851,985 thousand as of December 31, 2024, an increase from $3,630,489 thousand in 2023[33] - The company initiated a plan to repurchase $275 million of common stock, with approximately $202.9 million spent by December 31, 2024[18] - As of January 31, 2025, $225 million remains available for stock repurchases under the program approved in January 2023[18] Future Outlook - For Q1'25, the company expects worldwide revenues to be in the range of $965 million to $985 million, down sequentially from Q4 due to unfavorable foreign exchange and lower capital equipment sales[20] - Clear Aligner volume is expected to increase slightly sequentially in Q1'25, while Clear Aligner average selling prices (ASPs) are anticipated to decrease sequentially[20] - The company projects a year-over-year revenue growth of low single digits for 2025, reflecting approximately 2 points of unfavorable foreign exchange[20] - Clear Aligner volume growth for 2025 is expected to be up approximately mid-single digits year-over-year, compared to a 3.5% increase in 2024[20] - The company plans to invest between $100 million and $150 million in capital expenditures for fiscal 2025, primarily for building construction and manufacturing capacity[20] Operational Metrics - The company achieved 271.6 thousand active Invisalign trained practitioners and over 19.5 million Invisalign patients, including over 5.6 million teens and kids[5][6] - The number of Invisalign trained doctors receiving cases in Q4 2024 was 85,685, a slight decrease from 83,700 in Q4 2023[35] - Clear Aligner revenue per case shipment in Q4 2024 was $1,265, down from $1,320 in Q4 2023[35] Cost and Expenses - Total operating expenses increased to $552,792 thousand in Q4 2024 from $497,979 thousand in Q4 2023, driven by higher selling, general and administrative expenses[32] - Total operating expenses for fiscal 2024 were $2,191,531, compared to $2,063,525 in 2023, indicating increased investment in operations[43] - Stock-based compensation for Q4 2024 was $38,848,000, consistent with $38,829,000 in Q4 2023[44] - The company initiated restructuring plans in Q4 2024, incurring restructuring charges of $36,991,000, compared to $13,989,000 in Q4 2023[44] - Legal settlement loss for the year ended December 31, 2024, was $30,968,000, compared to no losses in the previous year[44] Market Position and Strategy - Align Technology completed a $30.0 million equity investment in Smile Doctors, enhancing its market position in the orthodontic sector[9] - Align Technology plans to raise the list price of Clear Aligners by approximately 3% on average in the Americas and EMEA regions starting March 1, 2025[16] - The company is monitoring the U.S./Mexico tariff situation closely, with a potential 25% tariff on goods from Mexico still making it more economical to ship clear aligners from Mexico to the U.S.[17]

The fourth-quarter 2024 earnings season has just kicked off for the MedTech space, with a number of bigwigs scheduled to release their results this week.See the Zacks Earnings Calendar to stay ahead of market-making news.Per the latest Earnings Preview, quarterly results of the broader Medical sector are projected to improve year over year, buoyed by increased demand across multiple industries and a rise in hospital visits. AI-powered algorithms drove innovation in the fourth quarter in diagnostics, cardiov ...

Wall Street analysts forecast that Align Technology (ALGN) will report quarterly earnings of $2.43 per share in its upcoming release, pointing to a year-over-year increase of 0.4%. It is anticipated that revenues will amount to $997.02 million, exhibiting an increase of 4.2% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial ...

Andrii Yalanskyi The following segment was excerpted from Giverny Capital Asset Management's Q4 2024 Letter. My research colleague, John Bleday, and I have spent a lot of our time since he joined us in 2023 looking for companies that have proven ...

Core Insights - Investors in the Medical - Dental Supplies sector may consider Labcorp (LH) or Align Technology (ALGN) for potential undervalued stock opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Labcorp has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Align Technology has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that Labcorp's earnings outlook is improving more significantly than Align Technology's [3][7] Group 2: Valuation Metrics - Labcorp has a forward P/E ratio of 15.57, compared to Align Technology's forward P/E of 22.40 [5] - Labcorp's PEG ratio is 1.85, while Align Technology's PEG ratio is significantly higher at 3.97, indicating that Labcorp may be undervalued relative to its expected earnings growth [5] - Labcorp's P/B ratio is 2.54, whereas Align Technology's P/B ratio is 4.28, further supporting Labcorp's position as a more attractive value option [6] Group 3: Value Grades - Based on various valuation metrics, Labcorp holds a Value grade of B, while Align Technology has a Value grade of D, reinforcing Labcorp's superior value proposition [6]

Align Technology (ALGN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 5, 2025, might help the stock move higher if these key numbers are bette ...

Align Technology, Inc. (ALGN) is set to release fourth-quarter 2024 results on Feb. 5, after the closing bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company posted adjusted earnings per share (EPS) of $2.35 in the last reported quarter, which topped the Zacks Consensus Estimate by 1.7%. Align Technology beat on earnings in each of the trailing four quarters, the average surprise being 6.18%.ALGN’s Q4 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $997.0 m ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Align Technology (ALGN) , which belongs to the Zacks Medical - Dental Supplies industry.This maker of the Invisalign tooth-straightening system has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 2.81%.For the most recent quarter, Align Technology was exp ...

For Align Technology (ALGN) , we remain concerned about the current economic uncertainty, which continues to cast a negative impact on the company’s dental procedures. The competitive landscape also remains an overhang. The stock carries a Zacks Rank #4 (Sell) currently.Factors Dragging ALGN Shares DownIn recent times, Align Technology has faced a decline in Invisalign's average selling price (ASP) for comprehensive treatment options. This resulted in a decrease in the company’s revenues. In the second quar ...