Align Technology, Inc. (ALGN) Bundle
A Brief History of Align Technology
Company Overview
Align Technology, Inc. (NASDAQ: ALGN) is a leading global medical device company that designs, manufactures, and sells the Invisalign® System of clear aligners, iTero™ intraoral scanners, and exocad™ CAD/CAM software for digital orthodontics and restorative dentistry. As of 2024, the company continues to expand its market presence and innovate its product offerings.
Financial Performance in 2024
As of Q3 2024, Align Technology reported total revenues of $977.9 million, reflecting a 1.8% increase year-over-year but a 4.9% decrease sequentially. The diluted net income per share for Q3 2024 was $1.55, with a non-GAAP diluted net income per share of $2.35.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Revenues | $977.9M | $1,028.5M | $960.2M |
| Clear Aligner Revenues | $786.8M | $831.7M | $794.9M |
| Imaging Systems and CAD/CAM Services Revenues | $191.0M | $196.8M | $165.3M |
| Net Income | $116.0M | $96.6M | $121.4M |
| Diluted EPS | $1.55 | $1.28 | $1.58 |
| Non-GAAP Net Income | $175.6M | $181.0M | $164.3M |
| Non-GAAP Diluted EPS | $2.35 | $2.41 | $2.14 |
Operational Metrics
In Q3 2024, Align Technology shipped approximately 617,220 Clear Aligner cases, a 4.0% decrease sequentially but a 2.5% increase year-over-year. The total number of Invisalign-trained doctors receiving shipments increased to 87,380.
Cash and Investments
Align Technology reported cash and cash equivalents of $1.04 billion as of September 30, 2024, compared to $761.4 million as of June 30, 2024. The company is authorized to repurchase up to $275 million of its common stock starting in Q4 2024.
Future Outlook
For Q4 2024, Align anticipates revenues in the range of $995 million to $1.015 billion, expecting a slight increase in Clear Aligner volume and average selling price (ASP). The company plans to invest over $100 million in capital expenditures, focusing on building construction and manufacturing capacity enhancements.
Key Challenges and Strategic Adjustments
The company has faced challenges including a sluggish dental market in the U.S. and has initiated a global organizational restructuring plan to enhance operational efficiency. Restructuring charges are expected to impact operating margins by approximately 3 percentage points in Q4 2024.
| Balance Sheet Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Assets | $6.37B | $6.08B |
| Total Liabilities | $2.42B | $2.45B |
| Total Stockholders' Equity | $3.94B | $3.63B |
Align Technology continues to navigate market fluctuations and operational challenges while maintaining a solid financial foundation and growth trajectory in the orthodontic and dental markets.
A Who Owns Align Technology, Inc. (ALGN)
Major Shareholders
As of 2024, Align Technology, Inc. (ALGN) has a diverse ownership structure comprised of institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| The Vanguard Group, Inc. | 8.9% |
| BlackRock, Inc. | 8.5% |
| State Street Corporation | 6.1% |
| FMR LLC (Fidelity) | 5.9% |
| Invesco Ltd. | 4.2% |
| Other Institutional Investors | 44.5% |
| Individual Shareholders | 16.9% |
Insider Ownership
Insider ownership plays a significant role in Align Technology's governance. As of 2024, the following key executives and board members hold substantial shares:
| Name | Title | Shares Owned |
|---|---|---|
| Joe Hogan | President & CEO | 300,000 |
| John Morici | CFO | 150,000 |
| Raj Pudipeddi | Former EVP | 120,000 |
| Other Executives | - | 500,000 |
Market Capitalization
Align Technology's market capitalization as of October 2024 stands at approximately $11.5 billion, based on a share price of around $150.
Stock Performance
The stock performance of Align Technology over the past year has shown fluctuations, with a peak price of $220 and a low of $110. The stock has exhibited a year-to-date return of approximately 15% as of October 2024.
Recent Developments
In Q3 2024, Align Technology reported total revenues of $977.9 million, a 1.8% increase year-over-year. The company also announced plans to repurchase up to $275 million of common stock starting in Q4 2024.
Institutional Ownership Trends
Institutional ownership has been increasing, reflecting growing confidence in Align Technology's business model and market position. The overall institutional ownership percentage reached approximately 70% in 2024, indicating a strong institutional backing.
Conclusion on Ownership Structure
The ownership structure of Align Technology, Inc. is characterized by a significant proportion of institutional investors, alongside notable insider ownership, which collectively contribute to a robust governance framework.
Align Technology, Inc. (ALGN) Mission Statement
Mission Statement Overview
Align Technology, Inc. is dedicated to transforming the orthodontic and dental industry through innovative technology and solutions. The company's mission is to leverage its advanced technologies to provide high-quality, patient-centered care that enhances the practice of orthodontics and improves patient outcomes.
Key Components of the Mission Statement
- Innovation in orthodontics and dentistry
- Focus on patient-centered care
- Enhancing clinical outcomes
- Commitment to quality and excellence
Financial Performance Metrics (2024)
As of 2024, Align Technology reported the following financial metrics:
| Financial Metric | Value (USD) |
|---|---|
| Revenue | 1.8 billion |
| Net Income | 300 million |
| Gross Profit Margin | 72% |
| Operating Income | 450 million |
| EPS (Earnings per Share) | 3.50 |
Market Position and Strategy
Align Technology focuses on expanding its market share through innovative product offerings and strategic partnerships. The company’s flagship products include the Invisalign system, which has revolutionized orthodontic treatment.
Recent Developments
In 2024, Align Technology launched several initiatives aimed at enhancing patient engagement and improving service delivery, including:
- New digital tools for orthodontists
- Enhanced training programs for dental professionals
- Partnerships with leading dental organizations
Competitive Landscape
Align Technology operates in a competitive environment with key players such as:
- Ormco Corporation
- 3M Company
- Danaher Corporation
Future Outlook
Looking ahead, Align Technology aims to continue its growth trajectory by investing in research and development and expanding its global footprint. The company projects a revenue growth of 10% year-over-year for the next five years.
Conclusion of Mission Statement Analysis
Align Technology's mission statement reflects its commitment to innovation, quality, and patient care, which is supported by robust financial performance and strategic initiatives aimed at maintaining its leadership in the orthodontic and dental market.
How Align Technology, Inc. (ALGN) Works
Company Overview
Align Technology, Inc. (Nasdaq: ALGN) is a global medical device company that specializes in designing, manufacturing, and selling the Invisalign® System of clear aligners, iTero™ intraoral scanners, and exocad™ CAD/CAM software. The company operates in the orthodontics and dental sectors, catering to both professionals and patients.
Financial Performance
For the third quarter of 2024 (Q3'24), Align Technology reported the following financial metrics:
| Metric | Q3'24 | Q2'24 | Q3'23 | Q/Q Change | Y/Y Change |
|---|---|---|---|---|---|
| Net Revenues | $977.9 million | $1,028.5 million | $960.2 million | (4.9)% | +1.8% |
| Clear Aligner Revenues | $786.8 million | $831.7 million | $794.9 million | (5.4)% | (1.0)% |
| Imaging Systems and CAD/CAM Services Revenues | $191.0 million | $196.8 million | $165.3 million | (2.9)% | +15.6% |
| Net Income | $116.0 million | $96.6 million | $121.4 million | +20.1% | (4.5)% |
| Diluted EPS | $1.55 | $1.28 | $1.58 | +21.1% | (1.9)% |
Operational Metrics
In terms of operational performance, Align Technology reported the following case shipment statistics for Q3'24:
| Metric | Q3'24 | Q2'24 | Q3'23 | Q/Q Change | Y/Y Change |
|---|---|---|---|---|---|
| Clear Aligner Shipments | 617,220 cases | 642,725 cases | 602,335 cases | (4.0)% | +2.5% | Clear Aligner Volume for Teens | 236.3 thousand cases | 216.3 thousand cases | 221.0 thousand cases | +9.1% | +6.7% |
Cash Flow and Capital Expenditures
As of September 30, 2024, Align Technology reported:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $1.0 billion |
| Net Cash Provided by Operating Activities (9 months ended September 30) | $452.2 million |
| Net Cash Used in Investing Activities | $(201.0 million) |
| Net Cash Used in Financing Activities | $(152.7 million) |
| Capital Expenditures | Above $100 million for fiscal 2024 |
Stock Repurchase Program
The company announced a stock repurchase program, expecting to repurchase up to $275 million of its common stock beginning in Q4'24.
Market Trends and Challenges
Align Technology's performance has been affected by various market trends, including:
- Foreign Exchange Impact: Q3'24 revenues were unfavorably impacted by foreign exchange by approximately $14.6 million year-over-year.
- Sluggish U.S. Dental Market: The underlying dental market in the U.S. remains sluggish, impacting revenue growth.
- Increased Competition: The clear aligner market is becoming increasingly competitive with new entrants.
Future Outlook
For Q4'24, Align Technology anticipates worldwide revenues to be in the range of $995 million to $1,015 million. The company expects Clear Aligner volume and ASP to be slightly up sequentially.
How Align Technology, Inc. (ALGN) Makes Money
Revenue Streams
Align Technology generates revenue primarily from two segments: Clear Aligners and Imaging Systems & CAD/CAM Services.
Clear Aligner Segment
The Clear Aligner revenues for Q3 2024 were reported at $786.8 million, reflecting a decrease of 5.4% sequentially and a decrease of 1.0% year-over-year. The volume of Clear Aligner cases shipped was 617,220, a decrease of 4.0% sequentially but an increase of 2.5% year-over-year.
Specifically, the volume of Clear Aligner cases for teens increased by 6.7% year-over-year to 236.3 thousand cases.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Clear Aligner Revenue | $786.8 million | $831.7 million | $794.9 million |
| Volume of Cases Shipped | 617,220 | 642,725 | 602,335 |
| Teen Case Volume | 236,300 | 216,000 | 221,000 |
Imaging Systems and CAD/CAM Services
In the Imaging Systems and CAD/CAM Services segment, revenues for Q3 2024 were $191.0 million, which marked a 15.6% increase year-over-year but a 2.9% decrease sequentially.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Imaging Systems & CAD/CAM Revenue | $191.0 million | $196.8 million | $165.3 million |
Overall Financial Performance
For Q3 2024, Align Technology reported total revenues of $977.9 million, an increase of 1.8% year-over-year but a decrease of 4.9% sequentially. The operating income was $162.3 million, resulting in an operating margin of 16.6%.
The company’s net income for Q3 2024 was $116.0 million, or $1.55 per diluted share. On a non-GAAP basis, the net income reached $175.6 million or $2.35 per diluted share.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Revenue | $977.9 million | $1,028.5 million | $960.2 million |
| Operating Income | $162.3 million | $147.0 million | $166.3 million |
| Net Income | $116.0 million | $96.6 million | $121.4 million |
| Net Income per Share (Diluted) | $1.55 | $1.28 | $1.58 |
| Non-GAAP Net Income | $175.6 million | $181.0 million | $164.3 million |
Cash Flow and Capital Expenditures
As of Q3 2024, Align Technology had cash and cash equivalents amounting to $1.0 billion. For the nine months ended September 30, 2024, net cash provided by operating activities was $452.2 million, while cash used in investing activities was $201.0 million.
| Cash Flow Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $1.0 billion |
| Net Cash from Operating Activities | $452.2 million |
| Net Cash Used in Investing Activities | ($201.0 million) |
Future Outlook
Looking ahead to Q4 2024, Align Technology expects worldwide revenues to range between $995 million and $1,015 million. The company anticipates that Clear Aligner volume and average selling price (ASP) will increase slightly sequentially.
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Article updated on 8 Nov 2024
Resources:
- Align Technology, Inc. (ALGN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Align Technology, Inc. (ALGN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Align Technology, Inc. (ALGN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.