Align Know-how (NASDAQ:ALGN), recognized for its Invisalign clear aligners and digital dental methods, introduced its fourth-quarter 2024 outcomes on Feb. 5, 2025. The earnings launch highlighted secure efficiency amid foreign money and demand challenges. The corporate reported Non-GAAP earnings per share (EPS) of $2.44, marginally lacking analysts’ estimates of $2.45. Income was $995.2 million, barely beneath the anticipated $996 million, although inside administration’s forecast vary. Total, the quarter confirmed regular development in key segments, tempered by exterior financial elements.
| Metric | This autumn 2024 Precise | This autumn 2024 Estimate | This autumn 2023 | Y/Y Change |
|---|---|---|---|---|
| Non-GAAP EPS | $2.44 | $2.45 | $2.42 | +0.8% |
| Income | $995.2M | $996M | $956.7M | +4.0% |
| Working Margin (Non-GAAP) | 23.2% | N/A | 23.8% | -0.6 pp |
| Clear Aligner Quantity | 628,730 | N/A | 592,635 | +6.1% |
Supply: Analyst estimates supplied by FactSet. Administration expectations primarily based on administration’s steering, as supplied in 2024-10-23 earnings report.
Enterprise Overview
Align Know-how is on the forefront of digital orthodontics with its flagship Invisalign system. This clear aligner product replaces standard braces, offering an modern answer for dental corrections. The corporate integrates superior know-how by way of choices like iTero intraoral scanners and CAD/CAM software program, essential for exact remedy planning and monitoring.
Align has centered on driving worldwide market growth and innovation in its product line. Key parts of its technique embrace leveraging 3D printing for scalable manufacturing and increasing its ecosystem by way of the Align Digital Platform. This strategy is designed to help development throughout rising and stabilized markets, positioning it as a technological chief in dental care.
Quarterly Highlights
Throughout the fourth quarter of 2024, Align Know-how’s efficiency was marked by will increase in a number of areas. Clear Aligner volumes rose to 628,730 models, up 6.1% from the earlier 12 months, indicating power in areas reminiscent of EMEA, APAC, and LATAM. These geographic areas benefited from elevated adoption of Invisalign merchandise, significantly amongst teenagers in China.
Income from methods and companies elevated by 14.9% from This autumn 2023, highlighting strong shopper curiosity and increasing market penetration. Regardless of these successes, the stronger U.S. greenback imposed a big headwind, impeding internet revenue per share by roughly $0.14. The U.S. market additionally introduced challenges, with decreased demand affecting Clear Aligner gross sales.
Operational metrics reminiscent of gross and working margins endured strain from foreign money fluctuations and restructuring fees. Nonetheless, these challenges didn’t overshadow Align’s worldwide development trajectory. Notably, the corporate’s money place remained robust, with roughly $1.044 billion in reserves after inventory repurchases of $275 million in 2024.
Trying Forward
Align Know-how’s administration anticipates low single-digit income development for fiscal 2025, with particular mid-single-digit development projected in Clear Aligner volumes.
Transferring ahead, administration has indicated that it’ll proceed investments in know-how and operational restructuring.
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