Align Technology Conference Call Summary Company Overview - **Company**: Align Technology (NasdaqGS:ALGN) - **Event**: 2025 Conference - **Date**: November 11, 2025 Key Industry Insights - **Market Growth**: Strong growth observed in EMEA, APAC, and LATAM regions, particularly in clear aligner volumes [6][8] - **Market Performance**: Out of the top 10 markets, 9 showed year-over-year improvement from Q2 to Q3, with only Canada experiencing a decline [8] - **Regional Highlights**: Notable growth in Southeast Asia, China, Eastern Europe, Latin America, and India [8] Core Business Strategies - **New Product Launches**: Introduction of several new products, including palatal expanders and mandibular advancement devices, contributing to an 8% year-over-year growth in the teen segment [9] - **Sales Strategy**: The company has sold to an all-time high of 88,000 doctors, focusing on both new and existing doctors to increase case volumes [11][21] - **Active vs. Passive Doctors**: Differentiation between active doctors (who engage in local marketing and conversion strategies) and passive doctors (who do not actively seek new patients) [12][14] Sales and Marketing Approaches - **Local Marketing Initiatives**: Active doctors utilizing local marketing strategies are seeing double-digit growth, while passive doctors are struggling [14][19] - **Sales Force Infrastructure**: Align Technology has a large sales team to support both general practitioners (GPs) and orthodontists, focusing on driving local traffic and conversion [17][19] - **Engagement with Passive Doctors**: Strategies to convert passive doctors include co-marketing and providing tools to enhance patient engagement [15][19] Product Utilization and Technology - **Scanner Utilization**: Over 90% of the 88,000 doctors have iTero scanners, with those having multiple scanners showing significantly higher utilization rates [32][33] - **Impact of Scanners**: The presence of scanners leads to a 4x improvement in case volume, as they facilitate patient visualization and treatment planning [31] Pricing and Competitive Landscape - **Pricing Strategy**: Align Technology maintains premium pricing while introducing lower-priced products to meet customer needs without sacrificing gross margins [44][45] - **Market Competition**: Increased competition from other clear aligner companies, but Align Technology remains focused on driving market share from traditional wires and brackets [46][49] Economic and Market Conditions - **Market Maturity**: The U.S. market is considered mature, but opportunities for growth remain, particularly in the teen segment [60][62] - **Economic Factors**: Higher inflation and interest rates in the U.S. have impacted consumer spending, but there is optimism for recovery and growth [60][75] Future Outlook - **Growth Projections**: Align Technology aims for 5% to 15% volume and revenue growth, contingent on economic improvements [75] - **Focus on Teens**: The company sees significant potential in the teen market, which is expected to grow faster than the adult segment [62] Additional Considerations - **Visibility Challenges**: The company acknowledges difficulties in forecasting due to increased market complexity and economic pressures [71][73] - **Stability Needs**: Stability in macroeconomic conditions is essential for better visibility and confidence in future growth [73][75]