Align Technology (ALGN) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues reached $995.2M, up 4% year-over-year and 1.8% sequentially, with Clear Aligner volumes up 6.1% and Systems and Services revenues up 14.9%.

• Full-year 2024 revenues totaled $4.0B, up 3.5% year-over-year, with Clear Aligner volumes of 2.5M cases, up 3.5% year-over-year.

• Achieved milestones: 272,000 active Invisalign-trained practitioners, 19.5M patients treated globally, including 5.6M teens, and over 2B aligners manufactured.

• Ended 2024 with $1.04B in cash and no debt after repurchasing $353M in stock.

• Non-GAAP operating margin for 2024 was 21.8%, exceeding the prior year and in line with outlook.

Financial highlights

• Q4 Clear Aligner revenues were $794.3M, up 1.6% year-over-year; Systems and Services revenues were $200.9M, up 14.9% year-over-year.

• Q4 overall gross margin was 70%, flat year-over-year; non-GAAP gross margin was 70.9%.

• Q4 GAAP operating margin was 14.5%, down 3.4 points year-over-year; non-GAAP operating margin was 23.2%.

• Q4 GAAP EPS was $1.39, down $0.25 year-over-year; non-GAAP EPS was $2.44, up slightly year-over-year.

• Cash and cash equivalents at year-end were $1.04B, with $353M spent on share repurchases in 2024.

Outlook and guidance

• Q1 2025 revenues expected between $965M–$985M, down sequentially due to FX and seasonality.

• Q1 2025 GAAP operating margin expected to be ~2 points below Q1 2024; non-GAAP margin ~1 point lower.

• FY2025 revenue growth projected in low single digits, with ~2 points FX headwind; Clear Aligner volume growth expected mid-single digits.

• FY2025 non-GAAP operating margin expected at ~22.5%, with margin accretion despite FX headwinds.

• Capital expenditures for 2025 expected between $100M–$150M.