Align Technology's Q4 Clear Aligner Revenues Fall Sequentially, Margins Compress

Align Technology Inc ALGN reported Q4 sales of $1.03 billion, up 1.5% sequentially and 23.6% Y/Y, surpassing the consensus of $1.02 billion.

• Clear Aligner revenues were $815.3 million, down 2.7% sequentially and up 16.3% Y/Y. Clear Aligner volume was down 3.7% sequentially and up 11.1% Y/Y.
• Q4 FY21 Imaging Systems and CAD/CAM Services revenues were $215.8 million, up 21.0% sequentially and 61.3% Y/Y. 
• Adjusted EPS of $2.83 came ahead of the consensus of $2.73. Adjusted net income increased 8.1% Y/Y to $224.5 million.
• The gross margin declined from 73.2% to 72.2%, and the operating margin reached 21.4% compared to 25.5% a year ago.
• Align ended Q3 with $1.3 billion in cash and cash equivalents.
• The company announced Invisalign system innovations for the Align Digital Platform. 
• These Invisalign system innovations include ClinCheck Live Update for 3D controls, Invisalign Practice App, Invisalign Personalized Plan, and Invisalign Smile Architect for better planning for orthodontics and restorative dentistry.
• Guidance: Align Technology expects revenues growth within the long-term model range of 20% - 30%. 
• The reported operating margin for FY22 is expected to be around 24.0%, adjusted operating margin is expected to be approximately 3 points higher than GAAP operating margin.
• Price Action: ALGN shares closed 0.58% lower at $505.62 on Wednesday.