Slide 1: Q4 and Fiscal 2024 Financial Results
Q4 and Fiscal 2024 Financial Results Align Technology, Inc. February 5, 2025 ©2025 Align Technology Inc. All rights reserved.
Slide 2: Q4 and Fiscal 2024 Conference Call Details
Q4 and Fiscal 2024 Conference Call Details Conference call Speakers: Joe Hogan, President and CEO John Morici, CFO Shirley Stacy, VP, Finance, Investor Relations and Corporate Communications Webcast Archive: Audio webcast archive will be available at http://investor.aligntech.com for one month Conta
Slide 3: Safe Harbor and Forward-Looking Statements
Safe Harbor and Forward-Looking Statements This presentation, including the tables below, contains forward-looking statements, including statements of beliefs and expectations regarding our ability to successfully control our business and operations and pursue our strategic growth drivers, our expec
Slide 4: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures • To supplement our 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 include con
Slide 5: 2024 Milestones
2024 Milestones • Full year fiscal 2024, total revenues of $4.0 billion, and we delivered fiscal 2024 GAAP operating margin of 15.2%, and non-GAAP operating margin of 21.8%* • Repurchased $353M of Align common stock • 271.6K active Invisalign® trained practitioners • ~19.5M Invisalign® patients trea
Slide 6: Invisalign Smiles
INVISALIGN® SMILES Invisalign patients treated including ~19.5M* +5.6M* Teens & Kids ©2025, ©2025 AlignAlign Technology Technology Inc. All Inc. rightsAllreserved. rights reserved. *As of Q4’24
Slide 7: Making clear aligner treatment available for everyone through doctors
Making clear aligner treatment available for EVERYONE through DOCTORS ©2025, Align Technology Inc. All rights reserved.
Slide 8: Enormous Opportunity
ENORMOUS OPPORTUNITY 600M Consumer Opportunity 15M teens 22M Annual ortho starts 7M adults ©2025, Align Technology Inc. All rights reserved.
Slide 9: 600M potential patients through doctors with iTero at every chair
600M POTENTIAL PATIENTS through +2M DOCTORS with an iTero scanner at EVERY CHAIR ©2025, Align Technology Inc. All rights reserved.
Slide 10: Focused Execution: Strategic Growth Drivers
INTERNATIONAL PATIENT ORTHODONTIST GP DENTIST EXPANSION DEMAND UTILIZATION TREATMENT Focused Execution STRATEGIC GROWTH DRIVERS ©2025, Align Technology Inc. All rights reserved.
Slide 11: ©2025 Align Technology Inc. All rights reserved.
©2025 Align Technology Inc. All rights reserved.
Slide 12: Align's unique position and multivariable equation
Align's unique position and multivariable equation that is very difficult to replicate RELIABLE FINANCIAL RESULTS MANUFACTURING EXCELLENCE • • Excellent Top-line & profit growth • > 1M unique clear aligner parts / day • Strong Balance Sheet • > 59K treatment plans / day Proven & Scalable Technology
Slide 13: Q4 and Fiscal 2024 CEO Opening Commentary
Q4 and Fiscal 2024 CEO Opening Commentary We are pleased to report that Q4 total revenues, Clear Aligner volumes, and Systems and Services revenues were in line with our Q4 outlook and both GAAP and non-GAAP operating margins were better than our Q4 outlook. Q4 Clear Aligner ASPs were lower than our
Slide 14: Q4 and Fiscal 2024 Highlights
Q4 and Fiscal 2024 Highlights ©2025, ©2025 AlignAlign Technology Technology Inc. All Inc. rightsAllreserved. rights reserved. 14
Slide 15: FY2024 Revenues and Operating Margin
FY2024 Revenues and Operating Margin TOTAL REVENUES TOTAL SYSTEMS AND SERVICES REVENUES TOTAL CLEAR ALIGNER REVENUES GAAP OPERATING PROFIT / OPERATING MARGIN 2024 2024 2024 2024 $3,999.0M $768.9M $3,230.1M $607.6M | 15.2% Y/Y +3.5% Y/Y +16.0% Y/Y +1.0% Y/Y (1.5)% pts 2023 2023 2023 2023 $3,862.3M $6
Slide 16: Q4 2024 Revenues and Operating Margin
Q4 2024 Revenues and Operating Margin TOTAL REVENUES TOTAL SYSTEMS AND SERVICES REVENUES TOTAL CLEAR ALIGNER REVENUES GAAP OPERATING PROFIT / OPERATING MARGIN Q4'24 Q4'24 Q4'24 Q4'24 $995.2M $200.9M $794.3M $144.1 | 14.5% Q/Q +1.8% Y/Y +4.0% Q/Q +5.2% Y/Y +14.9% Q/Q +0.9% Y/Y +1.6% Q/Q (2.1)% pts Y/
Slide 17: FY2024 Clear Aligner segment
FY2024 Clear Aligner segment Americas International Non-Case Clear Aligner Metrics Clear Aligner Metrics Clear Aligner Metrics Americas Clear Aligner Shipments International Clear Aligner Shipments Non-Case Clear Aligner Revenues +0.5% Y/Y +7.0% Y/Y +5.7% Y/Y ($M) $303.3 $286.9 $251.7 2022 2023 2024
Slide 18: Q4 2024 Clear Aligner segment
Q4 2024 Clear Aligner segment Americas International Non-Case Clear Aligner Metrics Clear Aligner Metrics Clear Aligner Metrics Americas Clear Aligner Shipments International Clear Aligner Shipments Non-Case Clear Aligner Revenues +2.9% Y/Y +9.5% Y/Y +6.1% Y/Y (2.0)% Q/Q ($M) (0.2)% Q/Q +6.0% Q/Q $7
Slide 19: Q4 2024 Invisalign Doctor Subscription Program Touch-Up Cases
Q4 2024 Invisalign® Doctor Subscription Program (“DSP”) Touch-Up Cases • DSP also includes Invisalign Touch-Up cases, which includes up to 14-stages and is currently available in North America and certain countries in Europe and was most recently launched in Brazil. For Q4, total Invisalign DSP Touc
Slide 20: +5.6M Teens and Kids treated with Invisalign
+5.6M Teens and Kids treated with the Invisalign® System, to date Clear Aligner Shipments Teens & Kids +7.7% Y/Y (K) 868.1 In the teen and growing kids’ segment, approximately 216K teens and kids started treatment with Invisalign clear aligners during the fourth quarter, a 805.7 decrease of 8.6% seq
Slide 21: Q4 2024 Invisalign Brand Consumer Marketing
Q4 2024 Invisalign Brand Consumer Marketing AMERICAS EMEA APAC 11.9M 4.4B 8.5M 1.9B 20.4M 5.2B Website Visitors impressions Website Visitors impressions Website Visitors impressions • Social media and influencer marketing • Real stories. Real patients. • Real stories. Real patients shared • Teen, Ad
Slide 22: Q4 2024 Consumer Demand Creation and Digital Tools
Q4 2024 Consumer Demand Creation and Digital Tools • Invisalign® clear aligners are the #1 doctor recommended clear aligner treatment/brand for teeth straightening, globally* and it is important we continue to create demand for Invisalign clear aligners, especially given macro-economic pressures on
Slide 23: iTero intraoral scanners
iTero intraoral scanners Accelerating digital practice transformation The iTero scanner is at the front end of digital dentistry. Today, we have over 100K iTero scanners sold or roughly half of the intraoral scanning market globally. We have a scanner portfolio that consists of value to premium prod
Slide 24: Q4 2024 Systems and Services segment
Q4 2024 Systems and Services segment Imaging Systems and CAD/CAM Services Systems and Services Revenues ($M) +14.9% Y/Y +16.0% Y/Y +5.2% Q/Q Intraoral digital scans for Invisalign® case submission $200.9 $768.9 $191.0 $174.8 $662.0 $662.9 99.0% 96.1% 92.5% 89.2% 95.3% 91.5% 86.5% 80.9% Q4'21 Q4'22 Q
Slide 25: Q4 2024 exocad Highlights
Q4 2024 exocad Highlights TruSmile® Video and TruSmile® Photo New feature release for DentalCAD® New AI Services in Smile Creator® AI Design − New AI Service in New design service TruDesign 3.2 Elefsina Module DentalCAD Time-saving workflows, improved • Dental labs can send cases to visualizations,
Slide 26: Q4 2024 Financial Review
Q4 2024 Financial Review ©2025, ©2025 AlignAlign Technology Technology Inc. All Inc. rightsAllreserved. rights reserved. 26
Slide 27: Trended Revenues and Volumes
Trended Revenues and Volumes Q4’24 highlights +4.0% Y/Y Q4’24 Clear Aligner Case Volume +1.8% Q/Q +6.1% Y/Y $M $1,028.5 $995.2 +1.9% Q/Q $956.7 $997.4 $977.9 (#K) $180.2 $196.8 $200.9 $174.8 $191.0 642.7 617.2 628.7 592.6 605.1 $781.9 $817.3 $831.7 $786.8 $794.3 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q
Slide 28: Q4 2024 Financial Summary Commentary
Q4 2024 Financial Summary Commentary • Q4'24 Total revenues of $995.2M, +1.8% Q/Q and +4.0% Y/Y This reflects an increase in Clear Aligner volumes of 1.9% Q/Q and 6.1% Y/Y and revenue growth from Systems and Services of 5.2% Q/Q and 14.9% Y/Y • Q/Q, Q4'24 revenues were favorably impacted by FX of ~$
Slide 29: Trended GAAP Gross Margins
Trended GAAP Gross Margins Q4’24 highlights Flat Y/Y +0.3% pts Q/Q • Overall, Q4'24 gross margin was 70.0%, +0.3 pts Q/Q and flat Y/Y Overall, our total gross margin was not significantly impacted by FX Q/Q or on a Y/Y basis • Q4'24 non-GAAP gross margin was 70.9%, +0.5 pts Q/Q and +0.4 pts Y/Y • Q4
Slide 30: Trended GAAP Operating Expense
Trended GAAP Operating Expense Q4’24 highlights +11.0% Y/Y +6.4% Q/Q $M • Q4'24 Operating expenses were $552.8M, +6.4% Q/Q and +11.0% Y/Y $575.6 $543.7 $552.8 Q/Q, Q4'24 operating expenses +$33.3M, due primarily to restructuring costs $519.5 $498.0 Y/Y, Q4'24 operating expenses +$54.8M, primarily du
Slide 31: GAAP Operating Margin and Earnings Per Share Trends
GAAP Operating Margin and Earnings Per Share Trends Q4’24 highlights (3.4)% pts Y/Y • Q4'24 Operating income of $144.1M resulting in an Q4'24 operating margin of 14.5%, (2.1) pts Q/Q and (3.4) pts Y/Y • Q4’24 Operating margin was favorably impacted from FX of ~0.1 pts Q/Q and unfavorably impacted by
Slide 32: Trended Quarterly Financials
Trended Quarterly Financials GAAP Gross Margin % Operating Expense ($M) Operating Margin % & EPS $543.7 $575.6 $519.5 $552.8 $498.0 70.0% 70.0% 70.3% 69.7% 70.0% 17.9% 15.5% 14.3% 16.6% 14.5% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Diluted Earnings $
Slide 33: Q4 2024 Clear Aligner Revenue Per Case Shipment
Q4 2024 Clear Aligner Revenue Per Case Shipment Clear Aligner Revenue Per Case Shipment $1,400 $1,300 $1,200 $1,100 $1,000 $900 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Worldwide ASP $1,225 $1,335 $1,335 $1,320 $1,320 $1,350 $1,295 $1,275 $1,265 • Average Selling Price (“ASP”): Clear al
Slide 34: Balance Sheet, Cash Flow & Stock
Balance Sheet, Cash Flow & Stock • Of our $1,043.9M cash and cash equivalents balance, $188.7M was held in the U.S. and $855.2M was held by our international entities • During Q4'24, we initiated a plan to repurchase $275.0M of our common stock through open market repurchases. As of December 31, 202
Slide 35: 2024 Financial Review
2024 Financial Review ©2025, ©2025 AlignAlign Technology Technology Inc. All Inc. rightsAllreserved. rights reserved. 35
Slide 36: 2024 Financial Highlights
2024 Financial Highlights GAAP • Overall, we are pleased with our fourth quarter and fiscal 2024 2024 YoY results, particularly the year-over-year Clear Aligner volume growth, the record number of submitters, the continued momentum from our Total Net Revenues $3,999.0M +3.5% Systems and Services bus
Slide 37: 2024 Trended Financials
2024 Trended Financials GAAP Gross Margin % Operating Expense ($M) Operating Margin % & EPS $2,063.5 $2,191.5 $1,991.2 70.5% 70.1% 70.0% 17.2% 16.7% 15.2% 2022 2023 2024 2022 2023 2024 2022 2023 2024 Diluted Earnings $4.61 $5.81 $5.62 Per Share Non-GAAP Gross Margin % Operating Expense ($M) Operatin
Slide 38: 2024 Balance Sheet and Cash Flow Highlights
2024 Balance Sheet and Cash Flow Highlights 2023 2024 ($ in millions except for DSO) Accounts Receivables, net $903.4 $995.7 DSO 85 days 90 days Cash, Cash Equivalents, and Short-Term and Long-Term Marketable Securities $980.8 $1,043.9 Cash Flow from Operations $785.8 $738.2 Capital Expenditures $(1
Slide 39: Closing Comments
Closing Comments ©2025, ©2025 AlignAlign Technology Technology Inc. All Inc. rightsAllreserved. rights reserved. 39
Slide 40: Business Trends Commentary
Business Trends Commentary Before we turn to our Q1 and fiscal 2025 outlook, we’d like to provide the following context around pricing and potential new tariffs. Clear Aligner Pricing Commentary: On March 1, 2025, we will raise the list price of Clear Aligners by approximately 3% on average in the A
Slide 41: Fiscal 2025 Business Outlook
Fiscal 2025 Business Outlook With that as a backdrop, assuming no circumstances occur beyond our control, including foreign exchange and new tariffs, for Q1’25 and fiscal 2025 we provide the following outlook: Q1’25: • We expect Q1 worldwide revenues to be in the range of $965M to $985M, down sequen
Slide 42: Q4 and Fiscal 2024 Earnings Call CEO Closing Commentary
Q4 and Fiscal 2024 Earnings Call CEO Closing Commentary In closing, 2024 was a year of solid progress across the business. • Record full year total WW revenues of $4.0B • Record full year total WW Systems and Services revenues of $768.9M • Record teen shipments and growth in both teens and adult mar
Slide 43: ©2025 Align Technology Inc. All rights reserved.
©2025 Align Technology Inc. All rights reserved. 43
Slide 44: Appendix
Appendix ©2025, ©2025 AlignAlign Technology Technology Inc. All Inc. rightsAllreserved. rights reserved. 44
Slide 45: GAAP to Non-GAAP Reconciliation: Constant Currency Net Revenues
Unaudited GAAP to Non- GAAP Reconciliation Constant Currency Net Revenues Note: 1) We define constant currency net revenues as total net revenues excluding the effect of foreign exchange rate movements and use it to determine the percentage for the constant currency impact on net revenues on a seque
Slide 46: GAAP to Non-GAAP Reconciliation: Constant Currency Gross Profit and Margin
Unaudited GAAP to Non- GAAP Reconciliation Constant Currency Gross Profit and Gross Margin Note: 1) We define constant currency gross margin as constant currency gross profit as a percentage of constant currency net revenues. Gross margin constant currency impact is the increase or decrease in const
Slide 47: GAAP to Non-GAAP Reconciliation: Income from Operations and Operating Margin
Unaudited GAAP to Non- GAAP Reconciliation Constant Currency Income from Operations and Operating Margin Notes: 1) We define constant currency income from operations as GAAP income from operations excluding the effect of foreign exchange rate movements for GAAP net revenues and operating expenses on
Slide 48: GAAP to Non-GAAP Reconciliation: Financial Measures Other Than Constant Currency
Unaudited GAAP to Non- GAAP Reconciliation Financial Measures Other Than Constant Currency Notes: (1) Amortization of intangible assets related to certain acquisitions. (2) During the fourth quarters of 2023 and 2024, we initiated a restructuring plan to reduce headcount and increase efficiencies ac
Slide 49: Q1 2025 and Fiscal 2025 Outlook – GAAP to Non-GAAP Reconciliation
Q1 2025 and Fiscal 2025 Outlook – GAAP to Non-GAAP Reconciliation Notes: (1) Amortization of intangible assets related to certain acquisitions. ©2025 Align Technology Inc. All rights reserved.
Slide 50: ©2025 Align Technology Inc. All rights reserved.
©2025 Align Technology Inc. All rights reserved.