Align Technology reaches 7 millionth patient milestone
SAN JOSE, Calif., U.S.: Publicly traded clear aligner maker Align Technology shipped Invisalign to its 7 millionth patient in the second quarter and reported that volume growth for the clear aligner system was up nearly 25%. According to the company, its customer base for Invisalign currently totals around 60,000 active clinicians throughout the world.
Align Technology shipped more than 377,000 cases of the Invisalign system in the second quarter, a 24.6% increase on shipments in the comparable period in 2018, when 302,000 cases were shipped. Invisalign volumes for the second quarter of 2019 were up 8% on shipments in the first quarter of the same year. Commenting on its 7 million milestone in its financial results, the company explained that the 7 millionth patient using the Invisalign system for orthodontic treatment is a young child in the U.S. The child is using Invisalign First clear aligners, which the company markets as a Phase 1 treatment for a broad range of tooth straightening issues in children aged 6–10 years.
The company’s revenue gains in the second quarter nearly matched the increase seen in Invisalign shipments. Align posted $600.7 million (€541.7 million) in net revenues for the quarter, up 22.5% year over year. Total revenues for clear aligners, which also include sales from an ongoing supply agreement with SmileDirectClub through 2019, increased by 14.6% to reach $496.7 million. Net revenues for scanners and services in the quarter increased by 82.4% to reach $104 million.
The company reported a net profit of $147.1 million for the quarter, or $1.83 diluted earnings per share (EPS).
Align Technology President and Chief Executive Officer Joseph Hogan described revenue increases as “reflecting Invisalign volume growth primarily from international doctors, as well as very strong sales from iTero scanner and services.” He commented that volume gains for the Invisalign system reflected “continued adoption from teenage and younger patients, as well as increased utilization among orthodontists and expansion of our customer base which totaled 60,000 active doctors worldwide.”
However, Align had expected to ship even more of its flagship clear aligners. “In Q2, total Invisalign case shipments were lower than expected, primarily due to a softness in China related to a tougher consumer environment and slower growth in young adult cases in North America. Given the uncertainty in China, our outlook for the third quarter reflects a more cautious view for growth in the Asia Pacific region,” Hogan said.
Align launched its new iTero Element Foundation intraoral scanner, complete with restorative software, during the quarter, and sales of the scanner were noted to have boosted revenues. The iTero Element Foundation extends the company’s intraoral scanner portfolio and has strong 3D visualization capabilities, which cater for the evolving requirements of clinicians, patients and laboratories, according to company information.
With reference to the company’s business outlook for the third quarter, Align said it plans additional expansion of its operations, with around $50 million to $55 million earmarked for capital expenditure. The company intends to repurchase at least $100 million of its own stock in the open market in the third quarter and gave the guidance of expected net revenues in the range of $585 million to $600 million and a diluted EPS of between $1.09 and $1.16.