Align Technology Announces Fourth Quarter and Fiscal 2023 Financial Results

Factors that might cause such a difference include, but are not limited to:

  • macroeconomic conditions, including inflation, fluctuations in currency exchange rates, rising interest rates, market volatility, weakness in general economic conditions and recessions and the impact of efforts by central banks and federal, state and local governments to combat inflation and recession;
  • customer and consumer purchasing behavior and changes in consumer spending habits as a result of, among other things, prevailing macro-economic conditions, levels of employment, salaries and wages, debt obligations, discretionary income, inflationary pressure, declining consumer confidence, and military conflicts in Ukraine and the Middle East;
  • the economic and geopolitical ramifications of the hostilities in the Middle East as well as the military conflict in Ukraine, including sanctions, retaliatory sanctions, nationalism, supply chain disruptions and other consequences, any of which may or will continue to adversely impact our operations and assets and our research and development activities;
  • variations in our product mix, product adoption and selling prices regionally and globally;
  • competition from existing and new competitors;
  • declines in, or the slowing of growth of, sales of our clear aligners or intraoral scanners domestically and/or internationally and the impact either would have on the adoption of Invisalign products;
  • the timing and availability and cost of raw materials, components, products and other shipping and supply chain constraints, disruptions or costs;
  • unexpected or rapid changes in the growth or decline of our domestic and/or international markets;
  • rapidly evolving and groundbreaking advances that fundamentally alter the dental industry or the way new and existing customers market and provide products and services to consumers;
  • the ability to protect and enforce our intellectual property rights;
  • continued compliance with regulatory requirements;
  • the willingness and ability of our customers to maintain and/or increase product utilization;
  • the possibility that the development and release of new products or enhancements to existing products do not proceed in accordance with the anticipated timeline or may themselves contain bugs, errors or defects in software or hardware requiring remediation and that the market for the sale of these new or enhanced products may not develop as expected;
  • a tougher consumer demand environment in China generally, especially for manufacturers and service providers whose headquarters or primary operations are not based in China;
  • the risks relating to our ability to sustain or increase profitability or revenue growth in future periods (or minimize declines) while controlling expenses;
  • expansion of our business and products;
  • the impact of excess or constrained capacity at our manufacturing and treat operations facilities and pressure on our internal systems and personnel;
  • the compromise of our systems or networks, including any customer and/or patient data contained therein, for any reason;
  • the timing of case submissions from our doctor customers within a quarter as well as an increased manufacturing costs per case;
  • foreign operational, political, military and other risks relating to our operations; and
  • the loss of key personnel, labor shortages or work stoppages for us or our suppliers.

The foregoing and other risks are detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the Securities and Exchange Commission ("SEC") on February 27, 2023 and our latest Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, which was filed with the SEC on November 3, 2023. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net revenues

 

$

956,726

 

 

$

901,515

 

 

$

3,862,260

 

 

$

3,734,635

 

Cost of net revenues

 

 

287,202

 

 

 

283,814

 

 

 

1,155,397

 

 

 

1,100,860

 

Gross profit

 

 

669,524

 

 

 

617,701

 

 

 

2,706,863

 

 

 

2,633,775

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

402,503

 

 

 

410,067

 

 

 

1,703,379

 

 

 

1,674,469

 

Research and development

 

 

82,160

 

 

 

83,520

 

 

 

346,830

 

 

 

305,258

 

Restructuring and other charges

 

 

13,316

 

 

 

11,453

 

 

 

13,316

 

 

 

11,453

 

Total operating expenses

 

 

497,979

 

 

 

505,040

 

 

 

2,063,525

 

 

 

1,991,180

 

Income from operations

 

 

171,545

 

 

 

112,661

 

 

 

643,338

 

 

 

642,595

 

Interest income and other income (expense), net:

 

 

 

 

 

 

 

 

Interest income

 

 

4,978

 

 

 

2,760

 

 

 

17,258

 

 

 

5,367

 

Other income (expense), net

 

 

(3,643

)

 

 

(100

)

 

 

(19,392

)

 

 

(48,905

)

Total interest income and other income (expense), net

 

 

1,335

 

 

 

2,660

 

 

 

(2,134

)

 

 

(43,538

)

Net income before provision for income taxes

 

 

172,880

 

 

 

115,321

 

 

 

641,204

 

 

 

599,057

 

Provision for income taxes

 

 

48,866

 

 

 

73,546

 

 

 

196,151

 

 

 

237,484

 

Net income

 

$

124,014

 

 

$

41,775

 

 

$

445,053

 

 

$

361,573

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

1.64

 

 

$

0.54

 

 

$

5.82

 

 

$

4.62

 

Diluted

 

$

1.64

 

 

$

0.54

 

 

$

5.81

 

 

$

4.61

 

Shares used in computing net income per share:

 

 

 

 

 

 

 

 

Basic

 

 

75,703

 

 

 

77,541

 

 

 

76,426

 

 

 

78,190

 

Diluted

 

 

75,802

 

 

 

77,683

 

 

 

76,568

 

 

 

78,420

 


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