TEMPE, Ariz., July 28, 2021 (GLOBE NEWSWIRE) -- Align Technology, Inc. (Nasdaq: ALGN), a leading global medical device company that designs, manufactures, and sells the Invisalign system of clear aligners, iTero intraoral scanners, and exocad CAD/CAM software for digital orthodontics and restorative dentistry, today reported financial results for the second quarter of fiscal 2021 ("Q2'21"). Q2'21 total revenues were $1.0 billion, up 13.0% sequentially and 186.9% year-over-year. Q2'21 Clear Aligner revenues were $841.0 million, up 11.6% sequentially and 181.9% year-over-year. Q2'21 Imaging Systems and CAD/CAM Services revenues were $169.8 million, up 20.0% sequentially and 214.7% year-over-year. Q2'21 Clear Aligner volume was 665.6 thousand cases, up 11.7% sequentially and 200.0% year-over-year. For the Americas, Q2'21 Clear Aligner volume was up 10.9% sequentially and 260.7% year-over-year. For International regions, Q2'21 Clear Aligner volume was up 12.7% sequentially and 149.2% year-over-year. Q2'21 Clear Aligner volume for teens was 181.0 thousand cases, up 9.5% sequentially and 156.3% year-over-year. Q2'21 operating income was $268.9 million, resulting in an operating margin of 26.6%. Q2'21 net income was $199.7 million, or $2.51 per diluted share. On a non-GAAP basis, Q2'21 net income was $242.1 million, or $3.04 per diluted share.
Commenting on Align's Q2'21 results, Align Technology President and CEO Joe Hogan said, “I’m pleased to report our first $1 billion revenue quarter with record volumes reflecting continued momentum from both Clear Aligners and Systems and Services. For Q2, Systems and Services revenues reflect strong growth and the strategic value of the iTero business in all regions with continued adoption of the iTero Element 5D Plus Series of next-generation scanners and imaging systems which launched in February. Increasingly, doctors are seeing the strategic impact and value of iTero scanners in their practices, far beyond its role in Invisalign case submissions – it is a true workhorse and digital enabler in every type of practice and across every type of orthodontic and restorative workflow. Q2 sequential Clear Aligner volumes were primarily driven by strength in both adult and teen market segments and across customer channels and regions, especially from the Americas and EMEA regions, reflecting the expanding opportunity for Invisalign treatment among adults globally, as well as the underlying orthodontic market as we continue to build awareness of the Invisalign brand and drive utilization among teens and younger patients. For Q2’21, Invisalign Clear Aligner volumes for teens were up 9.5% sequentially and 156.3% year-over-year to 181.0 thousand teens, representing one-third of total cases shipped, with strong growth from North America and EMEA orthodontists.”
Financial Summary - Second Quarter Fiscal 2021
Q2'21 | Q1'21 | Q2'20 | |||||||||
Invisalign Case Shipments | 665,575 | 595,820 | 221,880 | ||||||||
GAAP | |||||||||||
Net Revenues | $1,010.8M | $894.8M | $352.3M | ||||||||
Clear Aligner | $841.0M | $753.3M | $298.3M | ||||||||
Imaging Systems and CAD/CAM Services | $169.8M | $141.5M | $54.0M | ||||||||
Net Income (Loss) | $199.7M | $200.4M | $(40.6)M | ||||||||
Diluted EPS | $2.51 | $2.51 | $(0.52) | ||||||||
Non-GAAP | |||||||||||
Net Income (Loss) | $242.1M | $198.4M | $(27.6)M | ||||||||
Diluted EPS | $3.04 | $2.49 | $(0.35) | ||||||||
As of June 30, 2021, we had $1.1 billion in cash and cash equivalents, compared to $1.1 billion as of March 31, 2021. We also have $300.0 million available under a revolving line of credit. During Q2'21, we entered into two accelerated stock repurchase (ASR) agreements. The first ASR for the repurchase of $100.0 million of our common stock, completed our $600.0 million May 2018 Repurchase Program. The second ASR, also for the repurchase of $100.0 million of our common stock, was entered under our May 2021 $1.0 Billion Repurchase Program, leaves $900.0 million available for future repurchase.
Recent Announcements – July 2021:
Q2’21 Announcement Highlights:
Corporate
Product
Commenting on Align's Q2'21 results, Align Technology CFO and SVP Global Finance, John Morici said, “Overall, we are very pleased with our second-quarter results and our continued strong performance across regions, customer channels, and products. While there continues to be uncertainty around the pandemic and increasing restrictions related to COVID-19 in certain geographies, we are continuing to invest in our strategic growth initiatives, including sales, marketing, innovation, and manufacturing capacity, to drive demand and conversion globally and are confident in our competitive position and ability to execute. At the same time, we are also anticipating more pronounced summer seasonality across all regions than we have experienced in recent years, as doctors, their staff, and patients take long overdue vacations. Notwithstanding seasonality, given our strong performance and continued confidence in the huge market opportunity, our industry leadership, and our ability to execute, we are increasing our 2021 revenue guidance provided in April on the Q1’21 earnings call to a range of $3.85 billion to $3.95 billion. Additionally, we now expect our second half year-over-year revenue growth rate to be above the mid-point of our long-term operating model target of 20% to 30%. On a GAAP basis, we now anticipate our 2021 operation margin to be better than our prior guidance, in the range of 24.0% and 25.0%. On a Non-GAAP basis, we expect the 2021 operating margin to be approximately 3 points higher than our GAAP operating margin, after excluding stock-based compensation and intangible amortization.”
FY 2021 Business Outlook
For 2021, Align provides the following guidance:
Align Web Cast and Conference Call
Align will host a conference call today, July 28, 2021, at 4:30 p.m. ET, 1:30 p.m. PT, to review its second quarter 2021 results, discuss future operating trends and the business outlook. The conference call will also be webcast live via the Internet. To access the webcast, go to the "Events & Presentations" section under Company Information on Align's Investor Relations website at http://investor.aligntech.com. To access the conference call, please dial 201-689-8261. An archived audio webcast will be available beginning approximately one hour after the call's conclusion and will remain available for approximately one month. Additionally, a telephonic replay of the call can be accessed by dialing 877-660-6853 with conference number 13720779 followed by #. For international callers, please dial 201-612-7415 and use the same conference number referenced above. The telephonic replay will be available through 5:30 p.m. ET on August 11, 2021.
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 include gross profit, gross margin, operating expenses, income (loss) from operations, operating margin, interest income and other income (expense), net, net income (loss) before provision for (benefit from) income taxes, provision for (benefit from) income taxes, effective tax rate, net income (loss) and/or diluted net income (loss) per share, which exclude certain items that may not be indicative of our fundamental operating performance including discrete cash and non-cash charges or gains that are included in the most directly comparable GAAP measure. Unless otherwise indicated, when we refer to non-GAAP financial measures they will exclude the effects of stock-based compensation, amortization of acquired intangibles, non-cash deferred tax assets and associated amortization related to the intra-entity transfer of non-inventory assets, acquisition-related costs, and arbitration award gain, and, if applicable, any associated tax impacts.
We use non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that the use of certain non-GAAP financial measures provide meaningful supplemental information regarding our recurring core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal evaluation of period-to-period comparisons. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they will be provided to and used by our institutional investors and the analyst community to help them analyze the performance of our business.
There are limitations to using non-GAAP financial measures, though, because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which charges are excluded from the non-GAAP financial measures. We compensate for these limitations by analyzing current and future results on a GAAP as well as a non-GAAP basis and also by providing GAAP measures in our public disclosures. The presentation of non-GAAP financial information is meant to be considered in addition to, not as a substitute for or in isolation from, the directly comparable financial measures prepared in accordance with GAAP. We urge investors to review the reconciliation of our GAAP financial measures to the comparable Non-GAAP financial measures included in this presentation and not to rely on any single financial measure to evaluate our business. For more information on these non-GAAP financial measures, please see the table captioned "Unaudited GAAP to Non-GAAP Reconciliation."
About Align Technology, Inc.
Align Technology designs and manufactures the Invisalign® system, the most advanced clear aligner system in the world, iTero® intraoral scanners and services, and exocad® CAD/CAM software. These technology building blocks enable enhanced digital orthodontic and restorative workflows to improve patient outcomes and practice efficiencies for over 200 thousand doctor customers and is key to accessing Align’s 500 million consumer market opportunity worldwide. Align has helped doctors treat approximately 10.9 million patients with the Invisalign system and is driving the evolution in digital dentistry through the Align Digital Platform, our integrated suite of unique, proprietary technologies and services delivered as a seamless, end-to-end solution for patients and consumers, orthodontists and GP dentists, and lab/partners. Visit www.aligntech.com for more information.
For additional information about the Invisalign system or to find an Invisalign doctor in your area, please visit www.invisalign.com. For additional information about the iTero digital scanning system, please visit www.itero.com. For additional information about exocad dental CAD/CAM offerings and a list of exocad reseller partners, please visit www.exocad.com.
Forward-Looking Statements
This news release, including the tables below, contains forward-looking statements, including quotations from management regarding the value and broad impact of intraoral scanners in dental and orthodontic practices, the potential impact of marketing campaigns and initiatives as well as statements regarding new facilities and capital improvements and project timing and costs, our expectations for the benefits of new and amended customer agreements, our expectations for our new products, features, and accessories and their availability, our expectations regarding the continuing impact of COVID-19, our beliefs concerning our competitive positioning, ability to execute on our strategic growth initiatives, seasonality, and market opportunities, and statements regarding certain business metrics on either or both a GAAP or non-GAAP basis for 2021, including, but not limited to, anticipated net revenues and growth rate for the year and, in particular, the second half of 2021, operating margin, and in connection with the timing, means and amount of anticipated stock repurchases. Forward-looking statements contained in this news release relating to expectations about future events or results are based upon information available to Align as of the date hereof. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. As a result, actual results may differ materially and adversely from those expressed in any forward-looking statement.
Factors that might cause such a difference include, but are not limited to:
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, 2020, which was filed with the Securities and Exchange Commission (SEC) on February 26, 2021 and our latest Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, which was filed with the SEC on May 5, 2021. 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 June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net revenues | $ | 1,010,808 | $ | 352,314 | $ | 1,905,579 | $ | 903,277 | ||||||||
Cost of net revenues | 252,270 | 127,986 | 469,943 | 284,593 | ||||||||||||
Gross profit | 758,538 | 224,328 | 1,435,636 | 618,684 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 431,921 | 256,967 | 829,036 | 539,873 | ||||||||||||
Research and development | 57,715 | 40,361 | 112,252 | 81,893 | ||||||||||||
Total operating expenses | 489,636 | 297,328 | 941,288 | 621,766 | ||||||||||||
Income (loss) from operations | 268,902 | (73,000 | ) | 494,348 | (3,082 | ) | ||||||||||
Interest income and other income (expense), net: | ||||||||||||||||
Interest income | 383 | 473 | 2,026 | 2,459 | ||||||||||||
Other income (expense), net | (483 | ) | (966 | ) | 34,049 | (19,515 | ) | |||||||||
Total interest income and other income (expense), net | (100 | ) | (493 | ) | 36,075 | (17,056 | ) | |||||||||
Net income (loss) before provision for (benefit from) income taxes | 268,802 | (73,493 | ) | 530,423 | (20,138 | ) | ||||||||||
Provision for (benefit from) income taxes | 69,088 | (32,891 | ) | 130,333 | (1,497,667 | ) | ||||||||||
Net income (loss) | $ | 199,714 | $ | (40,602 | ) | $ | 400,090 | $ | 1,477,529 | |||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 2.53 | $ | (0.52 | ) | $ | 5.06 | $ | 18.78 | |||||||
Diluted | $ | 2.51 | $ | (0.52 | ) | $ | 5.02 | $ | 18.70 | |||||||
Shares used in computing net income (loss) per share: | ||||||||||||||||
Basic | 79,008 | 78,769 | 79,004 | 78,681 | ||||||||||||
Diluted | 79,638 | 78,769 | 79,737 | 79,016 | ||||||||||||
ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, 2021 | December 31, 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,086,357 | $ | 960,843 | ||||
Accounts receivable, net | 808,079 | 657,704 | ||||||
Inventories | 178,751 | 139,237 | ||||||
Prepaid expenses and other current assets | 158,638 | 91,754 | ||||||
Total current assets | 2,231,825 | 1,849,538 | ||||||
Property, plant and equipment, net | 960,852 | 734,721 | ||||||
Operating lease right-of-use assets, net | 93,425 | 82,553 | ||||||
Goodwill | 432,179 | 444,817 | ||||||
Intangible assets, net | 117,721 | 130,072 | ||||||
Deferred tax assets | 1,512,285 | 1,552,831 | ||||||
Other assets | 47,281 | 35,151 | ||||||
Total assets | $ | 5,395,568 | $ | 4,829,683 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 225,079 | $ | 142,132 | ||||
Accrued liabilities | 495,572 | 405,582 | ||||||
Deferred revenues | 975,930 | 777,887 | ||||||
Total current liabilities | 1,696,581 | 1,325,601 | ||||||
Income tax payable | 113,306 | 105,748 | ||||||
Operating lease liabilities | 74,184 | 64,445 | ||||||
Other long-term liabilities | 127,087 | 100,024 | ||||||
Total liabilities | 2,011,158 | 1,595,818 | ||||||
Total stockholders’ equity | 3,384,410 | 3,233,865 | ||||||
Total liabilities and stockholders’ equity | $ | 5,395,568 | $ | 4,829,683 | ||||
ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net cash provided by operating activities | $ | 544,691 | $ | 69,684 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Net cash used in investing activities | (123,920 | ) | (172,326 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Net cash used in financing activities | (291,756 | ) | (36,376 | ) | ||||
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | (3,511 | ) | (7,172 | ) | ||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 125,504 | (146,190 | ) | |||||
Cash, cash equivalents, and restricted cash at beginning of the period | 961,474 | 551,134 | ||||||
Cash, cash equivalents, and restricted cash at end of the period | $ | 1,086,978 | $ | 404,944 | ||||
ALIGN TECHNOLOGY, INC.
INVISALIGN BUSINESS METRICS
Q1 | Q2 | Q3 | Q4 | Fiscal | Q1 | Q2 | ||||||||||||||||||||||
2020 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | ||||||||||||||||||||||
Invisalign Average Selling Price (ASP): | ||||||||||||||||||||||||||||
Comprehensive Products ASP | $ | 1,340 | $ | 1,330 | $ | 1,245 | $ | 1,230 | $ | 1,275 | $ | 1,265 | $ | 1,250 | ||||||||||||||
Non-Comprehensive Products ASP | $ | 1,050 | $ | 1,035 | $ | 1,005 | $ | 1,000 | $ | 1,020 | $ | 1,030 | $ | 1,040 | ||||||||||||||
Number of Invisalign Doctors Cases Were Shipped To: | ||||||||||||||||||||||||||||
Americas | 32,315 | 22,165 | 34,625 | 38,165 | 49,615 | 38,975 | 40,740 | |||||||||||||||||||||
International | 28,535 | 25,945 | 35,380 | 38,585 | 52,445 | 39,630 | 42,725 | |||||||||||||||||||||
Total Doctors Cases Shipped To | 60,850 | 48,110 | 70,005 | 76,750 | 102,060 | 78,605 | 83,465 | |||||||||||||||||||||
Invisalign Doctor Utilization Rates*: | ||||||||||||||||||||||||||||
North America | 6.9 | 4.8 | 8.4 | 8.7 | 19.8 | 9.1 | 9.9 | |||||||||||||||||||||
North American Orthodontists | 18.9 | 11.0 | 24.1 | 25.0 | 67.3 | 26.8 | 29.4 | |||||||||||||||||||||
North American GP Dentists | 3.6 | 2.5 | 4.2 | 4.5 | 9.6 | 4.8 | 5.3 | |||||||||||||||||||||
International | 5.1 | 4.7 | 6.4 | 6.9 | 14.5 | 6.8 | 7.1 | |||||||||||||||||||||
Total Utilization Rates** | 5.9 | 4.6 | 7.1 | 7.4 | 16.1 | 7.6 | 8.0 | |||||||||||||||||||||
* # of cases shipped / # of doctors to whom cases were shipped.
**LATAM utilization rate is not separately disclosed, but included in the total utilization rates.
ALIGN TECHNOLOGY, INC.
STOCK-BASED COMPENSATION
(in thousands)
Q1 | Q2 | Q3 | Q4 | Fiscal | Q1 | Q2 | ||||||||||||||||||||||
2020 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | ||||||||||||||||||||||
Stock-based Compensation (SBC): | ||||||||||||||||||||||||||||
SBC included in Gross Profit | $ | 1,347 | $ | 891 | $ | 1,247 | $ | 1,234 | $ | 4,719 | $ | 1,306 | $ | 1,418 | ||||||||||||||
SBC included in Operating Expenses | 21,580 | 24,116 | 23,982 | 24,030 | 93,708 | 25,935 | 27,437 | |||||||||||||||||||||
Total SBC | $ | 22,927 | $ | 25,007 | $ | 25,229 | $ | 25,264 | $ | 98,427 | $ | 27,241 | $ | 28,855 | ||||||||||||||
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
GAAP gross profit | $ | 758,538 | $ | 224,328 | $ | 1,435,636 | $ | 618,684 | ||||||||
Stock-based compensation | 1,418 | 891 | 2,724 | 2,238 | ||||||||||||
Amortization of intangibles (1) | 2,175 | 1,650 | 4,350 | 1,650 | ||||||||||||
Non-GAAP gross profit | $ | 762,131 | $ | 226,869 | $ | 1,442,710 | $ | 622,572 | ||||||||
GAAP gross margin | 75.0 | % | 63.7 | % | 75.3 | % | 68.5 | % | ||||||||
Non-GAAP gross margin | 75.4 | % | 64.4 | % | 75.7 | % | 68.9 | % | ||||||||
GAAP operating expenses | $ | 489,636 | $ | 297,328 | $ | 941,288 | $ | 621,766 | ||||||||
Stock-based compensation | (27,437 | ) | (24,116 | ) | (53,372 | ) | (45,696 | ) | ||||||||
Amortization of intangibles (1) | (887 | ) | (1,595 | ) | (1,775 | ) | (1,595 | ) | ||||||||
Acquisition related costs (2) | (68 | ) | (5,968 | ) | (104 | ) | (7,307 | ) | ||||||||
Non-GAAP operating expenses | $ | 461,244 | $ | 265,649 | $ | 886,037 | $ | 567,168 | ||||||||
GAAP income (loss) from operations | $ | 268,902 | $ | (73,000 | ) | $ | 494,348 | $ | (3,082 | ) | ||||||
Stock-based compensation | 28,855 | 25,007 | 56,096 | 47,934 | ||||||||||||
Amortization of intangibles (1) | 3,062 | 3,245 | 6,125 | 3,245 | ||||||||||||
Acquisition related costs (2) | 68 | 5,968 | 104 | 7,307 | ||||||||||||
Non-GAAP income (loss) from operations | $ | 300,887 | $ | (38,780 | ) | $ | 556,673 | $ | 55,404 | |||||||
GAAP operating margin | 26.6 | % | (20.7 | )% | 25.9 | % | (0.3 | )% | ||||||||
Non-GAAP operating margin | 29.8 | % | (11.0 | )% | 29.2 | % | 6.1 | % | ||||||||
GAAP interest income and other income (expense), net | $ | (100 | ) | $ | (493 | ) | $ | 36,075 | $ | (17,056 | ) | |||||
Acquisition related costs (2) | — | 1,012 | — | 10,187 | ||||||||||||
Arbitration award gain (3) | — | — | (43,403 | ) | — | |||||||||||
Non-GAAP interest income and other income (expense), net | $ | (100 | ) | $ | 519 | $ | (7,328 | ) | $ | (6,869 | ) | |||||
GAAP net income (loss) before provision for (benefit from) income taxes | $ | 268,802 | $ | (73,493 | ) | $ | 530,423 | $ | (20,138 | ) | ||||||
Stock-based compensation | 28,855 | 25,007 | 56,096 | 47,934 | ||||||||||||
Amortization of intangibles (1) | 3,062 | 3,245 | 6,125 | 3,245 | ||||||||||||
Acquisition related costs (2) | 68 | 6,980 | 104 | 17,494 | ||||||||||||
Arbitration award gain (3) | — | — | (43,403 | ) | — | |||||||||||
Non-GAAP net income (loss) before provision for (benefit from) income taxes | $ | 300,787 | $ | (38,261 | ) | $ | 549,345 | $ | 48,535 | |||||||
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED
(in thousands, except per share data)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
GAAP provision for (benefit from) income taxes | $ | 69,088 | $ | (32,891 | ) | $ | 130,333 | $ | (1,497,667 | ) | ||||||
Tax impact on non-GAAP adjustments | 6,218 | 19,702 | 13,373 | 19,838 | ||||||||||||
Tax related non-GAAP items (4) | (16,651 | ) | 2,555 | (34,845 | ) | 1,496,049 | ||||||||||
Non-GAAP provision for (benefit from) income taxes | $ | 58,655 | $ | (10,634 | ) | $ | 108,861 | $ | 18,220 | |||||||
GAAP effective tax rate | 25.7 | % | 44.8 | % | 24.6 | % | 7,437.0 | % | ||||||||
Non-GAAP effective tax rate | 19.5 | % | 27.8 | % | 19.8 | % | 37.5 | % | ||||||||
GAAP net income (loss) | $ | 199,714 | $ | (40,602 | ) | $ | 400,090 | $ | 1,477,529 | |||||||
Stock-based compensation | 28,855 | 25,007 | 56,096 | 47,934 | ||||||||||||
Amortization of intangibles (1) | 3,062 | 3,245 | 6,125 | 3,245 | ||||||||||||
Acquisition related costs (2) | 68 | 6,980 | 104 | 17,494 | ||||||||||||
Arbitration award gain (3) | — | — | (43,403 | ) | — | |||||||||||
Tax impact on non-GAAP adjustments | (6,218 | ) | (19,702 | ) | (13,373 | ) | (19,838 | ) | ||||||||
Tax related non-GAAP items (4) | 16,651 | (2,555 | ) | 34,845 | (1,496,049 | ) | ||||||||||
Non-GAAP net income (loss) | $ | 242,132 | $ | (27,627 | ) | $ | 440,484 | $ | 30,315 | |||||||
GAAP diluted net income (loss) per share | $ | 2.51 | $ | (0.52 | ) | $ | 5.02 | $ | 18.70 | |||||||
Non-GAAP diluted net income (loss) per share | $ | 3.04 | $ | (0.35 | ) | $ | 5.52 | $ | 0.38 | |||||||
Shares used in computing diluted net income (loss) per share | 79,638 | 78,769 | 79,737 | 79,016 | ||||||||||||
Notes:
(1) Amortization of intangible assets related to our exocad acquisition.
(2) During 2021, acquisition related costs were for professional fees related to our exocad acquisition. During 2020, acquisition costs included third party advisory, legal, tax, accounting, banking, valuation, and other professional or consulting fees and foreign exchange losses related to a forward contract for the purchase commitment related to our exocad acquisition.
(3) During Q1'21, we recorded a $43.4 million gain from the SDC arbitration award regarding the value of Align's capital account balance.
(4) During Q1'20, we recorded a one-time net tax benefit for the deferred tax asset and certain costs associated with the intra-entity transfer of certain intellectual property rights and assets to our Swiss subsidiary. For the periods presented, we recorded amortization and certain adjustments to the benefit from the transferred intangible assets of our Swiss entity.
Refer to "About Non-GAAP Financial Measures" section of press release.
ALIGN TECHNOLOGY, INC.
FY21 OUTLOOK - GAAP TO NON-GAAP RECONCILIATION
Range | ||||||||
GAAP Operating Margin | 24.0% | to | 25.0% | |||||
Stock-based compensation | 3.0% | 3.0% | ||||||
Amortization of intangibles (1) | 0.3% | 0.3% | ||||||
Non-GAAP Operating Margin | 27.3% | to | 28.3% | |||||
(1) Amortization of intangible assets related to our Q2'20 exocad acquisition.
Align Technology | Zeno Group |
Madelyn Homick | Sarah Johnson |
(408) 470-1180 | (828) 551-4201 |
[email protected] | [email protected] |
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