Slide 1: Financial Results Q3 2021
Financial Results Q3 2021 Align Technology, Inc. © 2021 Align Technology, Inc. All rights reserved. 1
Slide 2: Conference Call Contacts
Align Technology, Inc. – Q3 2021 Financial Results Conference Call Contacts • Speakers: • Website: http://investor.aligntech.com/ ‐ Joe Hogan, President and CEO • Email: investorinfo@aligntech.com ‐ John Morici, CFO • Tel: (602) 742-2000 ‐ Shirley Stacy, VP, Corporate Communications & Investor Relat
Slide 3: Safe Harbor and Forward-Looking Statement
Safe Harbor and Forward-Looking Statement • This presentation contains forward-looking statements, including quotations from management regarding confidence in our products and services, and statements regarding the availability of products and certain business metrics on either or both a GAAP or no
Slide 4: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures • To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we may provide investors with certain non-GAAP financial measures which may i
Slide 5: Q3 2021 Financial Highlights
Q3 2021 Financial Highlights • Total revenues for the third quarter were $1.016 billion, up 0.5% from the prior quarter and up 38.4% from the corresponding quarter a year ago. GAAP Q3’21 QoQ YoY • For Q3, Clear Aligner revenues were up 34.9% year over year with strong revenue growth across all regio
Slide 6: Trended GAAP Financials
Trended GAAP Financials WW Net Revenues ($M) Clear Aligner Shipments (#K) $1,010.8 $1,015.9 $894.8 665.6 655.1 $834.5 $169.8 $178.3 568.0 595.8 $734.1 $141.5 $133.8 496.1 $113.4 $841.0 $837.6 $753.3 $620.8 $700.7 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Clear Aligner Systems & Ser
Slide 7: Opening Commentary
Opening Commentary • We’re pleased to report strong third quarter results with revenue growth of 38.4% year over year - on top of a record third quarter last year - driven by strength across all regions, customer channels, and products. For Q3 we shipped to a record 85.5 thousand doctors. More than
Slide 8: Q3 2021 Financial Highlights: Teens and Adults
Q3 2021 Financial Highlights Teens and Adults • Over 11.6M total Invisalign patients to date, with over 3.0M teens. • In the teen segment, Q3’21 Invisalign clear aligner volumes for teens were strong, up 13.8% sequentially and 26.6% year over year to a record 206.0 thousand teens, representing appro
Slide 9: Non-case revenue, retention (DSP), and accessories
Non-case revenue, retention (DSP), and accessories (consumables/whitening) • Our third quarter revenues also include non-case revenue for clinical training and education, and doctor prescribed retainer products. • Retention is a critical part of creating and maintaining a beautiful new smile. Retain
Slide 10: Q3 2021 Financial Highlights: Americas
Q3 2021 Financial Highlights Americas Invisalign Metrics Americas North Americas Utilization* • For the Americas region, Q3 results reflect strong performance, NA Ortho 24.1 29.4 29.7 including record revenues for Latin America, as well as summer seasonality for adult case starts in North America th
Slide 11: Q3 2021 Financial Highlights: International
Q3 2021 Financial Highlights International Invisalign Metrics International International Utilization* • For our International business, Q3 Invisalign case volume was up 27.0% year over year, on top of record growth in the same quarter last year. On a sequential basis, International shipments were d
Slide 12: Invisalign Consumer Marketing
Invisalign Consumer Marketing • Our consumer marketing focuses on educating consumers about the Invisalign system to drive demand to Invisalign doctors’ offices, ultimately capitalizing on the massive market opportunity to transform 500 million smiles. • In Q3, we expanded the next generation of the
Slide 13: Invisalign Brand Consumer Concierge
Invisalign Brand Consumer Invisalign Consumer Concierge Concierge Consumer Conversion connects • We’ve connected over 315K potential consumers with Invisalign consumers with top Invisalign doctors and reached more than 2.8M consumers in North America. The providers to deliver a best-in-class Invisal
Slide 14: Worldwide Invisalign Brand Consumer Highlights
Worldwide Invisalign Brand Consumer Highlights +158.8M +14.7M +17.5M +8.0M Website visitors Social media fans Doc locator searches Smile assessments Data is cumulative as of 03/31/21. © 2021 Align Technology, Inc. All rights reserved. 14
Slide 15: Q3 2021 Invisalign Brand Consumer Marketing
Q3 2021 Invisalign Brand Consumer Marketing AMERICAS EMEA APAC 8.2M 623K 4.2M 555K 2.5M 243K Website Visitors Doc Locator Searches Website Visitors Doc Locator Searches Website Visitors Doc Locator Searches • Social media and influencer marketing • Social media and influencer marketing • Social medi
Slide 16: Q3 2021 Financial Highlights: Systems and Services
Q3 2021 Financial Highlights Systems and Services Imaging • For our Systems and Services business, Q3 revenues grew 57.3% year over year reflecting strong scanner shipments and Systems and services and was up 5.0% sequentially. This is the 5th consecutive quarter of sequential revenue growth for our
Slide 17: Systems and Services continued
Q3 2021 Financial Highlights Systems and Services continued • Our Q3 systems and services revenues also includes exocad CAD/CAM products and services. exocad’s expertise in restorative dentistry, implantology, guided surgery, and smile design extends our digital dental solutions and broadens Align’s
Slide 18: Q3 2021 Financial Review
Q3 2021 Financial Review © 2021 Align Technology, Inc. All rights reserved. 18
Slide 19: Revenues Trend
Revenues Trend • Total revenues for the third quarter were $1.016 billion, up 0.5% from the prior quarter and up 38.4% from the corresponding quarter a year ago. Q3’21 highlights • For Clear Aligners, Q3 revenues of $837.6 million were down 0.4% sequentially and up 34.9% year- over-year reflecting I
Slide 20: Invisalign Average Selling Price (ASP)
Invisalign Average Selling Price (ASP) Product groups $1,500 $1,300 $1,100 $900 $700 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Comprehensive Products $1,335 $1,320 $1,340 $1,330 $1,245 $1,230 $1,265 $1,250 $1,255 Non-comprehensive Products $1,025 $1,020 $1,050 $1,035 $1,005 $1,000 $1,030
Slide 21: Clear Aligner Shipments Trend
Clear Aligner Shipments Trend Q3’21 highlights +32.1% Y/Y • In Q3, we shipped 655.1 thousand Invisalign cases, a (1.6)% Q/Q decrease of 1.6% sequentially, with an increase of 32.1% (#K) year-over-year. In addition, we shipped to a record 85.5 thousand Invisalign doctors worldwide, of which approxima
Slide 22: GAAP Gross Margin Trend
GAAP Gross Margin Trend Q3’21 highlights • Moving on to gross margin, third quarter overall gross margin was +1.6% pts 74.3%, down 0.7 points sequentially and up 1.6 points year over year. On a non-GAAP basis, excluding stock-based compensation and (0.7)% pts amortization of intangibles related to o
Slide 23: GAAP Operating Expense Trend
GAAP Operating Expense Trend Q3’21 highlights +38.4% Y/Y +0.9% Q/Q $M • Q3 operating expenses were $494 million, up sequentially 0.9% $489.6 $493.9 and up 38.4% year over year. On a sequential basis, operating $451.7 expenses were up slightly by $4.4 million. Year over year, operating expenses incre
Slide 24: GAAP Operating Margin and Earnings Per Share Trend
GAAP Operating Margin and Earnings Per Share Trend Q3’21 highlights • Our third quarter operating income of $261.1 million resulted in an operating margin of +1.6% pts 25.7%, down 0.9 points vs the prior quarter and up 1.6 points year over year. The sequential decrease in operating margin was attrib
Slide 25: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights • As of September 30, 2021, cash and cash equivalents were Q3’20 Q2’21 Q3’21 $1.2 billion, up sequentially $151.5 million and up $622.3 ($ in millions except for DSO) million year over year. Of our $1.2 billion of cash and cash equivalents, $607.5 million was h
Slide 26: Financial Outlook for Full Year 2021
Financial Outlook for Full Year 2021 Now turning to our outlook and the factors that inform our view for the remainder of the year: • We are very pleased with our Q3 results and strong year over year growth, which reflects continued customer adoption of the iTero Scanners and increased Invisalign ut
Slide 27: Closing Commentary
Closing Commentary • In summary, Q3 was a strong quarter, and we are pleased with our performance across the business. Align is uniquely positioned – we have the clinical capability and product portfolio supported by doctor and patient workflows only accessible through the proprietary Align Digital
Slide 28: © 2021 Align Technology, Inc. All rights reserved.
© 2021 Align Technology, Inc. All rights reserved. 28
Slide 29: Appendix
Appendix © 2021 Align Technology, Inc. All rights reserved. 29
Slide 30: Unaudited GAAP to Non-GAAP reconciliation
ALIGN TECHNOLOGY, INC. Three Months Ended Nine Months Ended UNAUDITED GAAP TO NON-GAAP RECONCILIATION (in thousands, except per share data) September 30, September 30, 2021 2020 2021 2020 GAAP gross profit Stock-based compensation Amortization of intangibles (1) $ 755,156 1,451 2,354 $ 534,088 1,247
Slide 31: © 2021 Align Technology, Inc. All rights reserved.
© 2021 Align Technology, Inc. All rights reserved. 31