Align Technology(ALGN) - 2024 Q2 - Quarterly Results

Financial Performance - Q2'24 total revenues reached $1,028.5 million, reflecting a 3.1% sequential increase and a 2.6% year-over-year increase[2]. - Q2'24 diluted net income per share was $1.28, with a non-GAAP diluted EPS of $2.41, reflecting a 12.1% increase from the previous quarter[2][5]. - Align Technology reported net revenues of $1,028,490,000 for Q2 2024, a 2.5% increase from $1,002,173,000 in Q2 2023[27]. - Net income for Q2 2024 was $96,564,000, down from $111,814,000 in Q2 2023, representing a decrease of 13.6%[27]. - Basic and diluted net income per share for Q2 2024 was $1.28, compared to $1.46 in Q2 2023, indicating a decline of 12.3%[27]. - GAAP net revenues for Q2 2024 reached $1,028,490, reflecting a sequential increase of 3.1% from Q1 2024's $997,431[32]. - The company reported a year-over-year increase in GAAP net revenues from $1,002,173 in Q2 2023 to $1,028,490 in Q2 2024, representing a growth of 2.6%[32]. - GAAP net income for Q2 2024 was $96.6 million, down from $111.8 million in Q2 2023, a decrease of 13.6%[39]. Revenue Breakdown - Q2'24 Clear Aligner revenues were $831.7 million, up 1.8% sequentially but down 0.1% year-over-year, with a volume of 642.7 thousand cases, representing a 6.2% sequential increase and a 3.2% year-over-year increase[2][5]. - Q2'24 Imaging Systems and CAD/CAM Services revenues totaled $196.8 million, marking a 9.2% sequential increase and a 16.1% year-over-year increase[2][5]. - Clear Aligner net revenues for Q2 2024 were $831,738, up from $817,251 in Q1 2024, indicating a sequential growth of 2.0%[32]. - Clear Aligner revenue per case shipment decreased to $1,295 in Q2 2024 from $1,350 in Q1 2024[30]. Operating Income and Margins - The company reported a Q2'24 operating income of $147.0 million, resulting in a GAAP operating margin of 14.3%, which was impacted by foreign exchange fluctuations[4]. - GAAP income from operations for Q2 2024 was $147,046, with an operating margin of 14.3%, down from 15.5% in Q1 2024[35]. - GAAP operating margin for Q2 2024 was 14.3%, down from 17.2% in Q2 2023[37]. - Non-GAAP operating margin for Q2 2024 was 22.3%, up from 21.3% in Q2 2023[37]. - The company expects Q3 2024 GAAP operating margin to be slightly below 16.5% and non-GAAP operating margin to be approximately 21.8%[40]. - For fiscal 2024, the company anticipates GAAP operating margin to be slightly below 16.0% and non-GAAP operating margin to be above 21.4%[41]. Cash and Assets - As of June 30, 2024, Align Technology had over $782.1 million in cash and equivalents, down from $902.5 million as of March 31, 2024[7]. - Total assets as of June 30, 2024, were $6,158,324,000, an increase from $6,083,877,000 at the end of 2023[28]. - Total stockholders' equity increased to $3,757,908,000 as of June 30, 2024, compared to $3,630,489,000 at the end of 2023[28]. - Cash and cash equivalents decreased to $761,429,000 from $937,438,000 at the end of 2023, reflecting a decline of 18.8%[28]. Future Guidance - The company expects Q3'24 worldwide revenues to be in the range of $980 million to $1,000 million, with anticipated declines in Clear Aligner volume and ASPs due to seasonality and foreign exchange[13]. - Fiscal 2024 total revenue growth is projected to be between 4% to 6% year-over-year, influenced by lower Clear Aligner ASPs and the delayed launch of the iTero™ Lumina with restorative capabilities[13]. - The company provided guidance for Q3 2024, expecting worldwide revenues and Clear Aligner volumes to grow, although specific figures were not disclosed[22]. Research and Development - The company awarded twelve research grants totaling $300,000 to universities worldwide under its Annual Research Award Program[10]. - Align Technology continues to focus on expanding its market opportunities, particularly in the digital orthodontics sector, with a consumer market opportunity of 600 million worldwide[19]. Stock-Based Compensation - Stock-based compensation included in gross profit for Q2 2024 was $2,582, compared to $2,064 in Q1 2024[31]. - Stock-based compensation for Q2 2024 was $47.0 million, compared to $37.9 million in Q2 2023, indicating an increase of 24.5%[39].