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
|
|
Year Ended
|
||||||||||||
|
|
|
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 |
|