Exhibit 99.1





Align Technology Ethos Communication:
Madelyn Homick Shannon Mangum Henderson
(408) 470-1180  (678) 261-7803
mhomick@aligntech.com align@ethoscommunication.com





Q1 revenues up 40.8% year-over-year to a record $436.9 million, and diluted EPS of $1.17
Q1 operating income up 59.2% year-over-year to $98.2 million or operating margin of 22.5%
Q1 total Invisalign case shipments up 30.8% year-over-year to 272.2 thousand
Q1 Invisalign cases for teenage patients up 40.9% year-over-year to 69.1 thousand
Q1 scanner and services revenues up 84.0% year-over-year to $51.4 million


SAN JOSE, Calif., April 25, 2018 -- Align Technology, Inc. (Nasdaq: ALGN) today reported financial results for the first quarter ended March 31, 2018. Invisalign case shipments in the first quarter of 2018 (Q1’18) were 272.2 thousand, up 30.8% year-over-year. Americas and International region case shipments were up year-over-year 24.0% and 43.4%, respectively. Beginning Q1'18, Americas region includes North America and LATAM and the International region includes EMEA and APAC. Q1’18 Invisalign cases for teenage patients were 69.1 thousand, up 40.9% year-over-year. Q1’18 revenues were $436.9 million, up 40.8% year-over-year with Q1’18 operating income $98.2 million, up 59.2% year-over-year resulting in an operating margin of 22.5%. Net profit was $95.9 million, or $1.17 per diluted share, up $0.32 over the prior year.


Commenting on Align’s Q1 2018 results, Align Technology President and CEO Joe Hogan said, “I’m pleased to report better than expected first quarter results and a strong start to the year for Align, with revenues, volumes and EPS above our guidance. Record Q1 revenues were up 41% year-over-year reflecting continued strong Invisalign volume across all geographies and customer channels, as well as iTero scanner sales which were up 84% year-over-year. Q1 Invisalign volume growth of 31% year-over-year was driven by increased utilization including strong teen case growth globally, and expansion of our customer base, which included over 4,200 new Invisalign-trained doctors worldwide.”


GAAP Summary Financial Comparisons

First Quarter Fiscal 2018 

  Q1’18 Q4’17 Q1’17  Q/Q Change  Y/Y Change
Invisalign Case Shipments1 272,235 255,030 208,060 +6.7% +30.8%
Net Revenues $436.9M $421.3M $310.3M +3.7% +40.8%
Clear Aligner2 $385.5M $364.2M $282.4M +5.8% +36.5%
Scanner & Services $51.4M $57.1M $27.9M  (10.0)% +84.0%
Net Profit3 $95.9M $10.3M $69.4M 834.0% 38.1%
Diluted EPS3 $1.17 $0.13 $0.85 $1.04 $0.32


Note: Changes and percentages are based on actual values and may effect totals due to rounding



Align Technology, Inc. 2820 Orchard Pkwy, San Jose, CA 95134

Tel: (408) 470-1000 Fax: (408) 470-1010






1 Invisalign Shipment figures do not include SmileDirectClub aligners

2 Clear aligner revenue includes revenues from Invisalign clear aligners and SmileDirectClub aligners

3 Q4’17 net profit and diluted EPS includes $86.6 million tax expense, or $1.06 per diluted share negative impact due to the U.S. Tax Cut and Jobs Act


As of March 31, 2018, Align had $673.0 million in cash, cash equivalents and marketable securities compared to $761.5 million as of December 31, 2017. We repurchased approximately 0.4 million shares of stock for $100.0 million in Q1’18 under the April 2016 Repurchase Program. We have $100.0 million remaining available for repurchases under the existing stock repurchase authorization.


Announcements and Highlights


Today, Align issued the following press releases entitled:

·Align Introduces New Invisalign Go Clear Aligner System Integrated with iTero Scanner for Mild to Moderate Cases
·Align Technology To Introduce Two New iTero Scanners Featuring Greater Power and Portability
·Align Announces China Food and Drug Administration Approval for the iTero Element Scanner


Additional highlights in 2018 include:

·Announced a new expanded Invisalign product portfolio that includes new options and greater flexibility to treat a broader range of patients.  The new Invisalign product portfolio offers doctors more choices by extending desirable features across the entire portfolio and creating new Invisalign Treatment Packages, as well as new options to treat young patients with early mixed dentition.
·Announced it is extending the Invisalign product family with Invisalign First clear aligners, designed with features specifically for younger patients with early mixed dentition (with a mixture of primary/baby and permanent teeth).
·Announced the commercial availability of Vivera Retainers with Precision Bite Ramps, the first retainers in the market that can be customized to provide additional support after deep bite correction.


Q2 2018 Business Outlook

For the second quarter of 2018 (Q2’18), Align provides the following guidance:

·Net revenues in the range of $460 million to $470 million, up approximately 29% to 32% over the same period a year ago.
·Invisalign case shipments in the range of 296 thousand to 301 thousand, up approximately 28% to 30% over the same period a year ago.
·Operating margin in the range of 21.0% to 21.8%
·Diluted EPS in the range of $1.02 to $1.06





Align Web Cast and Conference Call

Align will host a conference call today, April 25, 2018 at 4:30 p.m. ET, 1:30 p.m. PT, to review its first quarter 2018 results, discuss future operating trends and the business outlook. The conference call will also be web cast live via the Internet. To access the webcast, go to the “Events & Presentations” section under Company Information on Align’s Investor Relations web site at http://investor.aligntech.com. To access the conference call, please dial 201-689-8261. An archived audio web cast will be available beginning approximately one hour after the call's conclusion and will remain available for approximately 12 months. Additionally, a telephonic replay of the call can be accessed by dialing 877-660-6853 with conference number 13678038 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 May 9, 2018.


About Align Technology, Inc.

Align Technology designs and manufactures the Invisalign® system, the most advanced clear aligner system in the world, and iTero® intraoral scanners and services. Align’s products help dental professionals achieve the clinical results they expect and deliver effective, cutting-edge dental options to their patients. Visit www.aligntech.com for more information.


For additional information about the Invisalign system or to find an Invisalign provider in your area, please visit www.invisalign.com. For additional information about iTero digital scanning system, please visit www.itero.com.


Forward-Looking Statement

This news release, including the tables below, contains forward-looking statements, including statements regarding certain business metrics for the second quarter of 2018, including, but not limited to, anticipated net revenues, gross margin, operating expenses, operating profit, diluted earnings per share, tax rate and case shipments. Forward-looking statements contained in this news release and the tables below 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, difficulties predicting customer and consumer purchasing behavior, Align's ability to protect its intellectual property rights, continued compliance with regulatory requirements, competition from existing and new competitors, the willingness and ability of our customers to maintain and/or increase product utilization in sufficient numbers, the possibility that the development and release of new products does not proceed in accordance with the anticipated timeline, the possibility that the market for the sale of these new products may not develop as expected, or that the expected benefits of new or existing business relationships will not be achieved as anticipated, the risks relating to Align's ability to sustain or increase profitability or revenue growth in future periods while controlling expenses, growth related risks, including capacity constraints and pressure on our internal systems and personnel, the security of customer and/or patient data is compromised for any reason, continued customer demand for our existing and new products, changes in consumer spending habits as a result of, among other things, prevailing economic conditions, levels of employment, salaries and wages and consumer confidence, the timing of case submissions from our doctors within a quarter, acceptance of our products by consumers and dental professionals, changes to our interpretation of the U.S. Tax Cuts and Jobs Act which may change as we receive additional clarification and implementation guidance, possibly materially, foreign operational, political and other risks relating to Align's international manufacturing operations, Align's ability to develop and successfully introduce new products and product enhancements and the loss of key personnel. These and other risks are detailed from time to time in Align's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the Securities and Exchange Commission (SEC) on February 28, 2018. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.





(in thousands, except per share data)
   Three Months Ended
March 31,
   2018  2017
Net revenues  $436,924   $310,341 
Cost of net revenues   109,516    74,716 
Gross profit   327,408    235,625 
Operating expenses:          
Selling, general and administrative   199,625    151,148 
Research and development   29,591    22,804 
Total operating expenses   229,216    173,952 
Income from operations   98,192    61,673 
Interest income   2,176    1,195 
Other income (expense), net   177    450 
Net income before provision for (benefit from) income taxes and equity in losses of investee   100,545    63,318 
Provision for (benefit from) income taxes   2,902    (7,223)
Equity in losses of investee, net of tax   1,777    1,121 
Net income  $95,866   $69,420 
Net income per share:          
Basic  $1.20   $0.87 
Diluted  $1.17   $0.85 
Shares used in computing net income per share:          
Basic   80,036    79,904 
Diluted   81,628    81,534 



* During Q1'18, we adopted the ASC 606, "Revenues from Contracts with Customers" using the full retrospective method. The adoption of ASC 606 did not have a material impact on our Condensed Consolidated Statements of Operations presented herein. 





(in thousands)
    March 31,
    December 31,
Current assets:          
Cash and cash equivalents  $498,003   $449,511 
Marketable securities, short-term   164,740    272,031 
Accounts receivable, net   361,459    324,189 
Inventories   35,866    31,688 
Prepaid expenses and other current assets   108,708    80,948 
Total current assets   1,168,776    1,158,367 
Marketable securities, long-term   10,212    39,948 
Property, plant and equipment, net   400,528    348,793 
Equity method investments   52,829    54,606 
Goodwill and intangible assets, net   87,629    89,068 
Deferred tax assets   45,524    49,334 
Other assets   17,233    43,893 
Total assets  $1,782,731   $1,784,009 
Current liabilities:          
Accounts payable  $41,881   $36,776 
Accrued liabilities   180,093    195,562 
Deferred revenues   296,011    267,713 
Total current liabilities   517,985    500,051 
Income tax payable   119,349    114,091 
Other long-term liabilities   17,937    15,579 
Total liabilities   655,271    629,721 
Total stockholders' equity   1,127,460    1,154,288 
Total liabilities and stockholders' equity  $1,782,731   $1,784,009 


* During Q1'18, we adopted the ASC 606, "Revenues from Contracts with Customers" using the full retrospective method. Condensed Consolidated Balance Sheet as of December 31, 2017 has been recasted to comply with the adoption.





(in thousands)
   Three Months Ended
March 31,
   2018  2017
Net income  $95,866   $69,420 
Net cash provided by operating activities   77,332    47,621 
Net cash provided by (used in) investing activities   109,269    (148,462)
Net cash used in financing activities   (139,822)   (33,001)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash   1,715    2,430 
Net increase (decrease) in cash, cash equivalents, and restricted cash   48,494    (131,412)
Cash, cash equivalents, and restricted cash at beginning of the period   450,125    393,019 
Cash, cash equivalents, and restricted cash at end of the period  $498,619   $261,607 


*During Q1'18, we adopted ASU 2016-18, "Statement of Cash Flows - Restricted Cash" on a retrospective basis. Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2017 has been recasted to comply with the adoption.





   Q1  Q2  Q3  Q4  Fiscal  Q1
   2017  2017  2017  2017  2017  2018
Invisalign Average Selling Price (ASP):                              
Worldwide ASP   $1,270   $1,285   $1,310   $1,305   $1,295   $1,310 
International ASP  $1,345   $1,340   $1,395   $1,400   $1,375   $1,435 
Invisalign Cases Shipped by Geography:                              
Americas   134,450    148,470    147,660    155,625    586,205    166,665 
International   73,610    83,420    88,405    99,405    344,840    105,570 
Total Cases Shipped   208,060    231,890    236,065    255,030    931,045    272,235 
YoY % growth   27.1%   31.0%   32.8%   34.2%   31.4%   30.8%
QoQ % growth   9.5%   11.5%   1.8%   8.0%        6.7%
Number of Invisalign Doctors Cases Were Shipped To:                              
Americas   24,595    25,570    25,865    26,480    38,230    27,105 
International   14,270    15,695    16,740    18,505    26,175    19,700 
Total Doctors Cases Shipped To   38,865    41,265    42,605    44,985    64,405    46,805 
Invisalign Doctor Utilization Rates**:                              
North America   5.6    5.9    5.8    6.0    15.8    6.3 
North American Orthodontists   12.6    13.6    13.8    14.0    46.6    15.3 
North American GP Dentists   3.1    3.3    3.1    3.3    8.2    3.4 
International   5.2    5.3    5.3    5.4    13.2    5.4 
Total Utilization Rates   5.4    5.6    5.5    5.7    14.5    5.8 
Number of Invisalign Doctors Trained:                              
Americas   1,040    1,820    1,740    1,685    6,285    1,605 
International   2,220    3,055    2,540    2,400    10,215    2,645 
Total Doctors Trained Worldwide   3,260    4,875    4,280    4,085    16,500    4,250 
Total to Date Worldwide   118,730    123,605    127,885    131,970    131,970    136,220 
Note: Historical public data may differ due to rounding. Additionally, rounding may effect totals. Effective Q1'18, Americas region includes North America and LATAM. International region includes EMEA and APAC. We have recasted historical data to reflect the change.
* Invisalign business metrics exclude SmileDirectClub aligners.
** # of cases shipped / # of doctors to whom cases were shipped. LATAM utilization rate is not separately disclosed, but included in the total utilization rates. 
(in thousands) 
    Q1    Q2    Q3    Q4    Fiscal    Q1 
    2017    2017    2017    2017    2017    2018 
Stock-based Compensation (SBC)                              
SBC included in Gross Profit  $925   $768   $833   $804   $3,330   $881 
SBC included in Operating Expenses   13,887    13,477    14,134    14,026    55,524    14,949 
Total SBC Expense  $14,812   $14,245   $14,967   $14,830   $58,854   $15,830 





The outlook figures provided below and elsewhere in this press release are approximate in nature since Align’s business outlook is difficult to predict.  Align’s future performance involves numerous risks and uncertainties and the company’s results could differ materially from the outlook provided.  Some of the factors that could affect Align’s future financial performance and business outlook are set forth under “Forward Looking Information” above in this press release.
Financial Outlook    
(in millions, except per share amounts and percentages) 
    Q2'18 Guidance  
Net Revenues   $460.0 - $470.0  
Gross Margin   74.2% - 75.0%  
Operating Expenses   $245.0 - $250.0  
Operating Margin   21.0% - 21.8%  
Net Income per Diluted Share   $1.02 - $1.06(1) 
Business Metrics:   Q2'18  
Case Shipments   296K - 301K  
Capital Expenditure   $65M - $70M  
Depreciation & Amortization   $10M - $11M  
Diluted Shares Outstanding   81.6M(2) 
Stock Based Compensation Expense  $18.3M 
Effective Tax Rate   13.0%(1) 
(1) Includes the benefit from the adoption of the accounting standard update 2016-09 related to share-based compensation expense      
(2) Excludes any stock repurchases during the quarter      




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