GP Dental and orthodontic medical device company Align Technology Inc. (ALGN:NASDAQ) yesterday announced financial results for the fourth quarter and full-year 2020 ended December 31, 2020.
Align Technology reported that total revenues increased by 28.4% year-over-year to $834.5 million in Q4/20. These included $700.7 million from Clear Aligner revenues and $133.8 million from Imaging Systems and CAD/CAM Services revenues, which increased 28.9% and 26.0% respectively year-over-year.
The company indicated that in Q4/20 Clear Aligner volume increased by 37.3% year-over-year to 568.0 thousand cases. The firm said that case volumes for the Americas rose by 34.1% and international regions grew by 41.1%.
For Q4/20, Align reported GAAP net income of $159.0 million, or $2.00 per diluted share and non-GAAP net income of $207.7 million, or $2.61 per diluted share.
The company advised that for FY/20, it posted record total revenues totaling $2.5 billion, which represents a 2.7% increase versus FY/19. During the same period, Clear Aligner revenues were $2.1 billion and Imaging Systems and CAD/CAM Services revenues were $370.5 million. For FY/20, the firm reported GAAP net income of $1,775.9 million, or $22.41 per diluted share and non-GAAP 2020 net income of $415.9 million, or $5.25 per diluted share.
The company's President and CEO Joe Hogan stated, "Our fourth quarter was a strong finish to the year with record revenues and volumes from both Invisalign aligners and iTero scanners, as well as increased gross margins, operating margins, EPS, and cash flow. Our Q4/20 performance was driven by strong year-over-year growth across customer channels and regions and continued momentum sequentially. Q4/20 reflects increased Invisalign adoption from both adults and teenagers, which were up 36.7% and 38.7% year-over-year, respectively. Our Teen and Mom-focused consumer campaign generated a +77% year-over-year increase in unique visitors to our website and a 76% increase in leads generated."
"Despite the swift onset of the pandemic and uncertainty throughout 2020, we didn't halt our plans or change our strategy for continued growth. We completed the acquisition and integration of exocad; accelerated our investments in marketing to create Invisalign brand awareness and drive consumer demand for our doctors' offices; accelerated new technology to market with virtual tools that enabled our doctors to stay connected with their patients; provided PPE to those in need; and supported doctors and their teams with online education and digital forums that went beyond products to help them navigate the uncertainties of the pandemic. As a result of our continued strategic focus and investments, we exited the year stronger than we started and 2021 is off to a great start," Hogan added.
The company highlighted that in Q4/20 it achieved a major milestone with a shipment to its 2 millionth Invisalign patient in Europe, the Middle East and Africa (EMEA). The firm noted that effective January 1, 2021, it has established its new global corporate headquarters in Tempe, Ariz., though the company's San Jose, Calif., campus is slated to become home to its new Digital Innovation Center and will continue to serve as a hub for its global innovation, product development and marketing activities.
The firm touched on several other business accomplishments including that it finalized the acquisition of privately held exocad, "a global leader in the dental CAD/CAM software market in Q4/20 that offers fully integrated workflows to dental labs and dental practices via a broad customer base of partners and resellers in over 150 countries."
The company also advised that it was pleased to have served its 1 millionth Invisalign patient in the Asia Pacific region who is an aspiring Olympic athlete from Japan and also announced "an agreement with the National Football League (NFL) to make the Invisalign brand the Official Clear Aligner Sponsor of the NFL."
The company additionally presented details of its newest products including the launch of the iTero Element Plus Series next generation of scanners and imaging systems; "the Series of new solutions feature advanced technology and capabilities designed to improve the scanning experience, increase practice productivity, and drive higher patient treatment conversion." In addition, Align pointed out that the "Tero Element Plus Series mobile configuration makes the power of the iTero Element Plus Series portable with a medical grade, compact mobile scanner solution that delivers the same high-quality images as the cart configuration."
The company reported that it also globally launched its latest biomechanics innovation, Invisalign G8 with SmartForce® Aligner Activation. The firm stated that "Invisalign G8 with SmartForce Aligner Activation is informed by the company's foundational biomechanics for clear aligners and its database of more than 9 million Invisalign patients to optimize tooth movements and further improve predictability for frequently treated crowding, crossbite, and deep bite cases."
Align Technology is a medical device company that is now headquartered in Tempe, Ariz., that designs, manufactures and markets the clear aligner Invisalign system. The company noted that it has now helped nearly 10 million people worldwide with its Invisalign system. The firm's products are available to general practitioner dentists, orthodontists, and other dental specialists and the firm also provides training, clinical education programs and tools needed for dental industry adoption.
Align Technology began the day with a market capitalization of around $43.1 billion with approximately 78.85 million shares outstanding and a short interest of about 1.7%. ALGN shares opened more that 11% higher today at $607.50 (+$61.32, +11.23%) over yesterday's $546.18 closing price and reached a new 52-week high price this morning of $634.46. The stock has traded today between $600.95 and $634.46 per share and is currently trading at $614.49 (+$68.31, +12.51%).
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