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ALGN Nasdaq· Align Technology Inc.
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ALGN Nasdaq· Align Technology Inc.
Earnings report Q4 2023

ALGN Reports Modest Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, ALGN reported total net revenues of $3.86 billion, representing a 3.4% increase compared to the previous year. The majority of the revenue came from Clear Aligner sales, which amounted to $3.20 billion, reflecting a 4.1% year-over-year increase. Within the Clear Aligner segment, revenues from the Americas decreased slightly by 0.6% to $1.46 billion, while international Clear Aligner revenues increased by 7.4% to $1.45 billion. Notably, Clear Aligner volume increased by 0.4% overall, with a significant 7.8% increase in volume for teenage patients.

Strengths

ALGN's revenue growth in the latest quarter can be attributed to the company's strategic focus on international expansion, GP dentist treatment, patient demand, and orthodontic utilization. ALGN's ability to facilitate the digital transformation of dentistry worldwide and its continuous focus on innovation have contributed to its growth. The increase in international Clear Aligner revenues highlights the success of ALGN's expansion efforts.

Challenges

ALGN faced challenges in the Americas Clear Aligner segment, as revenues decreased slightly by 0.6% in the latest quarter. This decline may be attributed to various factors, including competitive pressures or changes in market dynamics. ALGN should closely monitor and address these challenges to ensure sustained growth in this segment.

Noteworthy

ALGN's overall revenue growth of 3.4% in the latest quarter indicates a steady performance. The company's focus on key growth pillars, such as international expansion and GP dentist treatment, has yielded positive results. The increase in Clear Aligner volume for teenage patients is particularly noteworthy, as it demonstrates ALGN's ability to capture a growing market segment.

Summary

ALGN reported modest revenue growth in the latest quarter, with total net revenues increasing by 3.4% to $3.86 billion. The Clear Aligner segment drove this growth, with revenues reaching $3.20 billion, reflecting a 4.1% year-over-year increase. ALGN's strategic priorities, including international expansion and GP dentist treatment, have contributed to its revenue growth. However, the company faced challenges in the Americas Clear Aligner segment, where revenues declined slightly. ALGN should address these challenges to ensure sustained growth. Overall, ALGN's performance in the latest quarter demonstrates its ability to capitalize on the digital transformation of dentistry and meet evolving patient demand.

Source documents

Form 10-K  filed on Feb 28, 2024
96 pages scanned

Reference data

Company financials Q4 revenue 957M
Analyst estimates Q4 EPS beat by 6.91%
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