Align Technology (ALGN 0.46%), a leader in digital orthodontics, announced a strong start to 2024 on Wednesday. The company's Q1 results exceeded analysts' estimates, reporting a non-GAAP diluted EPS of $2.14 against an estimate of $1.97. Revenue reached $997.4 million, surpassing the forecast of $974.53 million.
This performance underscores robust demand for Align's offerings and effective business execution.
| Metric | Q1 2024 | Analyst Estimate | Q1 2023 | Change (YOY) |
|---|---|---|---|---|
| Earnings per share (EPS) | $2.14 | $1.97 | $1.82 | +17.6% |
| Revenue | $997.4 million | $974.53 million | $943.1 million | +5.8% |
| Clear aligner shipments | 605,060 | N/A | 590,940 | +2.4% |
| Net income | $105 million | N/A | $87.8 million | +19.6% |
| GAAP operating margin | 15.5% | N/A | N/A | N/A |
Analyst source: FactSet. Data source: Align Technology. YOY = Year over year.
Align Technology overview
At its core, Align Technology is a specialist in orthodontic and restorative dentistry with digital solutions. It is best known for its Invisalign clear aligners, iTero intraoral scanners, and exocad CAD/CAM software. Its constant push for innovation keeps it at the forefront of digital dentistry.
Align is focused on expanding its product lines and improving its digital platform. This includes acquisitions aiming to enhance its technology stack and product launches designed to cater to a wider range of orthodontic needs.
Quarterly highlights
Align's saw robust growth in its key segments in Q1. Its Clear Aligner segment grew by 3.5% year over year to $817.3 million, while its Imaging Systems and CAD/CAM Services saw a remarkable jump of 17.5% year over year to $180.2 million. This growth across the board underlines Align's diversified strengths.
Align's management underscored its commitment to innovation by pointing out several important developments during the quarter. Noteworthy were the acquisition of Cubicure GmbH, the launch of iTero Lumina intraoral scanner, and the rollout of the Invisalign Palatal Expander system in North America. These initiatives are crucial for Align to stay ahead in the rapidly evolving dental market.
Looking ahead
Financially, Align has shown adept maneuvering. Despite global economic uncertainties, it managed to post significant growth and profitability, setting a positive tone for the following quarters. Align Technology's guidance anticipates Q2 2024 revenue between $1.03 billion to $1.05 billion. The company also anticipates a slight increase in operating margins quarter over quarter. Management revised its full-year fiscal 2024 total revenue growth projection up to 6% to 8% from the prior guidance for up to 5% growth. This outlook reflects both the Q1 accomplishments and the expected impacts of Align's strategic initiatives.
Investors should monitor Align's ongoing innovation efforts and market expansion strategies. The company's ability to maintain its growth trajectory amid economic uncertainties will be essential for long-term success.
