ALGN - Earnings call transcript Q3 2018

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Operator

Greetings and welcome to Align's Q3 2018 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Shirley Stacy, VP of Corporate and Investor Communications.

Shirley Stacy

you us. thank and afternoon, for joining Good I'm Investor Relations. Vice President Communications and of Corporate Shirley Stacy,

Joining today's third on be and available call John XX results me is and approximately via our on Morici, President for today webcast investor.aligntech.com. CFO. website call our is being website for We Today's which audio archived issued GlobeNewswire, quarter at financial Hogan, XXXX is Time through A telephone approximately the Joe Eastern International conference CEO; months. with dial will same XXX-XXX-XXXX replay X:XX November number on pound. available will replay, conference should followed XXXXXXXX should the p.m. by today X:XX conference X. telephone be callers XXX-XXX-XXXX access number. Time with dial callers by Eastern p.m. and To domestic

the uncertainties fourth Commission. discuss the As most Exchange recent no update statement. These of statements, involve risks events, information include filed forward-looking Align's expressly presenters the statements our detail vary and and and forward-looking product are outlook predictions reports Securities Align that for any that will quarter the including results and today more in about and to significantly future only the XXXX. statements assumes financial with a expected results periodic in may Actual obligation forth set forward-looking reminder, are

these CEO, slides historical the Technology's President more statements, for turn call under Joe? to posted Joe our Align on and that, refer files Hogan. . conference including With financial quarter website to have Results. our over We the corresponding and detailed third reconciliations call I'll Quarterly information. Please

Joseph M. Hogan

quarter quarter. then of some our our fourth financial and us briefly highlights discuss afternoon, on discuss outlook operating joining detail and will on clear our more Good and segments, two on our Shirley. performance aligners call scanners. provide today. Thanks, results for the the I'll for provide and John the thanks

Invisalign report the pleased to that, Following points questions. and ASPs and up key to lower summarize our third by with outlook, exchange. earnings offset revenue foreign come few and quarter by open somewhat call above back volume, higher-than-expected I'll and results I'm a driven

saw also regions as QX Invisalign We across and channels and scanner strength programs portfolio, another volume as and utilization. and and acceleration product growth comprehensive strength in both up to iTero a non-comprehensive increased non-comprehensive related across Invisalign new intended the as category growth sequentially year-over-year, customer adult portfolio, with and adoption for well XX.X% products, increase from reflecting both reflecting the product of well the sales quarter had expansion we to X.X% From strong patients. perspective, promotions teen from business. our as record

which We from international our continued Asia-Pacific, especially Americas region strength QX. also after is largest regions, the saw second in

our results. will impacted commentary. by offset that his shift, QX, combination down increases due a on that mix were sequentially In all and price unfavorable unexpected exchange programs, regions. across to this more in partially we promotional there QX, ASPs Invisalign couple quarter, volume of orthodontists. which we utilization to increased and continued another customer including of another doctors, per NA trained while especially our base, Overall, doctor, doctors, with by growth expansion Finally, Go pleased America, overall driven X.X APAC record record during including I'm dentists. Latin X,XXX for GP the represent Invisalign foreign a achieved this details John strong And product Invisalign factors were of cases provide

start our of and third quarter the the Now let's America with our results let's specifics turn around to results region.

customer orthodontists growth in reflecting and QX teenage better-than-expected both sequentially adult and across the Invisalign volume case XX.X% channels. case channels, year-over-year, and up volume For was patient GP dentist orthodontist strong our volume driven both X.X% Americas, by from

North cases per American year-over-year record GP for utilization expansion utilization for quarter another led North up reflecting the doctor, X.X at with QX For base. continued GP American growth ortho customer was was of cases the dentists orthos, year-over-year XX.X at Americas Invisalign region, per by doctor.

strong QX, Invisalign region, we in dental year-over-year were over alone, or the XX% volume of trained X,XXX We increased In also Americas growth doctors service primarily saw from which the Latin Brazil. organizations DSOs new QX. which XXX in in America channel, over

year. practices. in Invisalign world's thank local market a in Brazil helping second Brazil for office through new we São to new their largest them the Paulo, procedures, market case ongoing estimated for the to starts hosted more million at orthodontic event our than opening Brazil grand doctors with As to cosmetic have is X aligner September, support clear build in each In

We located growth. opening business later center, open Costa newest Lima located provide our another La this at eventually year. with to plans to Antonio facilities accommodate of new of also Costa facility our the facilities Rica in will long-term The all hosted our house employees, space Rica grand at San multimillion-dollar

QX for international utilization APAC, was teenage doctors, a Southern increased X.X% in quarter GP as from volume for last base. markets and year. especially continued EMEA's compared another channel good Year-over-year case volumes reflects year-over-year, which XX.X% for all have up of strong for was record well strong very with XX.X% QX quarter typically the international with APAC Europe dentists of strong Korea. by For expansion to results growth patients driven offset In extended country QX XX.X% Invisalign holidays. customer as volumes reflecting growth utilization Invisalign sequentially, markets up reflect growth except shipments by APAC, a quarter summer seasonality, in with up our record

During X,XXX QX, new which in APAC, we XXX doctors. iGo doctors trained were of

doctor's events including including to approximately was which down confidence First the over UK, across Year-over-year education Growth reflecting cases. and first Forum or uptake in COS, up to continuing Forum practice segment, critical scanner trained from EMEA, clinical to markets number innovation. peer-to-peer strength speakers iTero events, activity is in We core practice China the hosted Invisalign also Society, expand and Orthodontic practice with the Eastern In Japan, meeting X,XXX how iTero of In Invisalign and cases, growth. launched well clinical expansion was XXX we held including trained hosted Europe. led expected clear over a of GP prior marketing Invisalign by Invisalign received market as sequentially growth several we strong In First XX% with We're QX, Invisalign doctors the China, help across Central with EMEA, saw newly QX designed treatment, year-over-year, held markets and on clinical feedback focused we up In treatment their which education treatment, in also seasonality Iberia of with iGo we adding annual Copenhagen. doctors. we as the great doctor-centered to adoption increase and an teen events Invisalign First aligner APAC include help In GX ANZ, our year. XX.X% for to the the X,XXX led dentists. by GP including key due our our and to France, teen positive

grand new We also Spain, our Madrid, Iberia opening the in which market. the planning facility hosted serves treatment of

planning. closer latest highlighting October, and facility growth in growth we provides Madrid a trained and Africa advances as In in increase role digital Invisalign the opportunities support them hosted Dubai, digital Our treatment and to Spain for MEA Middle to Forum in strategy practice and of aims that first our key our our in our Portugal, customers to the or be East showcasing to dentists. doctors play well market, will commitment orthodontic dentistry MEA our as in

In and or mall these us it's We've in patients about concerning brand different traffic share learns to locations. quarter American by year-over-year, Invisalign we is segment. potential or for is grew out Now, adults, Experience turning driven create XX.X% even QX XX.X% the for customers. American selling describing orthodontists. increase the consumers segment. remains confusing way were cases X, teen Invisalign and younger examination an have settings the doctor QX, EMEA, we patient and delivered started for engage all The and of an pilot cases. including North were experiences Invisalign regions, growth almost large new late a of segment to But store Invisalign faster teenagers test XX.X% because started to or a of years cases North an high of interactive brand Invisalign the teen old. in shipped the North some launched XXX On through consecutive the XX% really of us to this XX.X%. X locations. orthos began that is these treatment gain the the centers. QX. eighth up. also will continued patient program increased a activities on and to Phase year-over-year sequentially XX,XXX in over piece of been July teen in Invisalign doctors treatment, with The We Invisalign toward locations of consumer-friendly six ANZ The First during First and consumers in we prescription environments, were help across be a treatment doctors and to teenage that important major Invisalign busy X doctor's adoption Invisalign and international a expanded our X,XXX Invisalign in ways. treatment nearly In offering volumes treatment Phase continued it X Invisalign Invisalign portfolio always overall the not of if including shift reflecting experiences patients way of Doctors patients QX in patient, launched brand tweens. and QX, to and In comprehensive Invisalign America, all aligners, market and by consumer program retail essential in-person Japan. calling We're teens doctors than We was young up age to clear to stores. based realized a and led strong First X North can America, the Align's Half only lifestyle orthodontic Invisalign XXXX,

across on treatment in Experience this four Our an last connected and Based quarter. program are doctor educate consumers will who choice. in locations typical and what goal might them we expanding to engage get this and year we be additional but in of consults interested showing aren't in up locations have offices, fourth their with Invisalign as Invisalign in and open first was learned program, eight the the

learned participating of their straightening significant and New all orthodontic Invisalign In about capturing four an influx someone the contributed for in under Experience QX, that program investment it overall Invisalign creating significant a brand, empower Invisalign surrounding launch consumer new kiosk This practices. take targeted a test the and impact qualified media XX have two, campaign have test of the Holiday part way Number direct on message reinforce to Invisalign-branded major clear Invisalign directly since network. a effect doctor-led Invisalign patient patient consumers positive tools, thinking an teeth, elevate of and capture or to the to the in the attention surrounding includes they're can of Experience the We're from the a else's On services advantage interest and do. put grow program the when among to-date. not a suggest practice. leads. other first learned program Experience of doctors applying we growth and make the Invisalign about We're lot along drive worked Experience to City very a November and market. Invisalign Key performance Invisalign umbrella, with significant the metrics with at doctors not The we experience in the everything York in support even X, with for interest Invisalign and on amplify to in progress premium It's awareness each a them New will Invisalign-branded addition of marketplace practices practices opt-in to even in practices. their importance in halo partner off who and this doctor to doctors and in to benefits media aligner better working are launching for the locations Experience to the we're media in the growing Invisalign have in consumers those that Invisalign have program for Oculus designed the York Experience and with treatment. practice location consumer a Market. an location. who practices excited the to what We've treatment Center consumers great QX us shown attract area, opening of locations new November as category network with connect pilot campaigns at patients, we piloting are kicking of several Experience-branded have better locations Invisalign to three, doctors constantly the the receive brand doctor And and experience, to center the prospective

new to One convenient their an total easier that Invisalign doctors with Experience patients for from potential them. lessons help is to to we're locations markets with Experience and want practice what make learned Experience that, consumers. their doctor-owned, with do Invisalign and in wholly do calling elements experience consumer-focused are Invisalign of doctors to other doctors select looks own starting working lot initiatives apply to Invisalign iTero ways the in working the Invisalign some digital the this to like just practices. want create connect few from U.S. practice in markets to environment. them They of and We're this to umbrella, with want under and things more the we've Experience a Experience a and an new so of design in more explore to participating to treatment Invisalign leverage to program want an We pilot branded connect Invisalign in

pilots we're working We'll together coming on be you Doctor-owned umbrella not. will Invisalign partnering markets where details Experience reach Align. ways progress consumers ways. doctors of Experience but all the Invisalign Experience will under complete different the locations, with with quarter. don't to Some we with in most We're Invisalign and in the in have practices new share more these

better iTero than research especially dentists have help the cycle And is the launched Invisalign we them Smile in Year-to-date, Flex more Element North was with up and beginning doctor. to United with we and their the by results Singapore, Invisalign Concierge which The and very continuing Smile Concierge the expanded connecting treatment expected sequentially consumers teams equates otherwise a U.S., that shortening Australia QX Invisalign had. day, XX.X% Our revenues hundreds QX iTero quarter active of of board program Record doctors every XX,XXX and scheduled start consumers at year-over-year. to our which and to leads providing an X scanner also in GP Brazil, of consultations XX.X% over UK. across might reflect connecting services service commercialization Invisalign they not were restorative outside the business, Element America. scanners, with for strong has in States the for XXXX

iTero with also for of China, Americas Invisalign and utilization. cases remains Invisalign DSO to digital Use a the International for partners the submissions begun total place sales iTero The with a submitted flat to submitted QX positive in Continued of catalyst internationally impressions XX.X% increased rollout of cases and increased in case scanners including essentially we Invisalign in have the continues Invisalign manufacture Element. PVS scans QX. XX.X%. was scanner total at grow

overall it treatment. have excited about business very drive continued made help progress help are to iTero with we of our remain We and confident the the Invisalign growth adoption continue will increase and

with Pascaud. want to more responsibilities John, decision over spend to Before position After Raph and Chief a our time order to Raph share made I a with part-time has you eight in or I Marketing this regarding Align, years personal reduce Officer the to CMO, his call today family. transition his turn with to more than important news

as over position across executive Raph's organization, a be As a Business also Executive Product this to will begun his Raph speed Development, be Marketing plans the marketing and and find to Marketing, but engaged Officer, will CMO, Once nothing we've We're and to changes our will numerous lead replacement for SVP, have as directly Business business Until to leader, so company. his an search develop the remain call marketing Raph's today turn new team. transition we begin to able new news the months. overseeing Portfolio Development. the now come transition Committee, global to the a of CMO that, iTero leadership marketing result, have will a Chief to With working Head he I'll for John. responsibilities Management positions remain can Align significant. Raph openly hired to that with can Raph for and that quickly. business we the will a the well recruit contributions a strategy International, including CMO overall He's me. Align's you Portfolio remains to strategy fortunate so the with on held been for and CMO up then, directly and over and development Raph will sharing continue new and Raph We're coming Product plan in help and business. reporting

John F. Morici

Joe. Thanks,

third results. of lower quarter customer of quarter unfavorable X.X% and exchange, reflected XX.X% foreign was revenue prior by growth geographies, ASPs. result Total offset up partially QX increased for $XXX.X partially volume. from channels down regions. from shipment revenue revenue X.X% financial and of up was Year-over-year Now was all across a the corresponding XX% Clear higher-than-expected the ago. sequentially, Invisalign million quarter for strong aligner $XXX.X growth the revenue aligner lower driven by favorable all ASPs was and our million, in growth clear as by Year-over-year a discounts offset and year

across these Invisalign we and earlier some on much mix, remarks, As were partially offered and foreign down new programs, all Invisalign product product saw uptake in by unfavorable promotions promotions. of sequentially year-over-year designed offset due adoption increase a mentioned exchange combination of QX QX, and Joe we promotional of his to regions. a price to higher-than-expected ASPs In increases treatment

increasing Advantage new period Program In additional to we that up a robust changed more been America tiers one, the doctors. move by a by doctors semi-annual Invisalign favorably addition, provide with case which has at a incentive with the North to volume. Advantage created tiers program, of their loyalty very customer The instead more of beginning year, quarterly our the received discount qualification

than As toward In were prior dentists a DSOs. products, to tiers moving QX, our achieving to which program. up discounts ASP shift result, under we continued promotions is tied with in tied more and and overall are lower the some is doctors a saw progress GP some of higher they expanding business and also non-comprehensive

were by $XX includes and XX.X% QX approximately EMEA. year-over-year of and APAC, unfavorable foreign down in Americas cases of X.X% and by and $XX exchange. Total foreign up of $XX QX shipments Invisalign up unfavorable year-over-year, XXX,XXX down offset includes the partially seasonality driven and $XX Specifically, ASPs sequentially by were growth in exchange,

For Americas QX up case and X.X% Invisalign up orthodontists, volume XX.X% was year-over-year. sequentially

dentists, GP and Invisalign Americas XX.X% For was case up X.X% sequentially volume down year-over-year.

international Invisalign year-over-year. volume case X.X% up doctors, For was sequentially up and XX.X%

$XX.X volume scanner was XX.X% Year-over-year services in scanner to higher was higher and revenue regions. for primarily revenue due XX.X%, third North due to sequentially contracts increases DSO in up quarter and million, Our units the up America volume across APAC.

Moving on gross to margin.

X.X gross and margin year-over-year. Third in $XXX.X our X.X due activities. up higher was due points lower quarter X.X% third sequentially up points for to X aligner The year-over-year. Clear efficiencies. lower and points manufacturing down activities. aligner margin overall reflects X.X go-to-market points in continued operating manufacturing year-over-year, increase were million, year-over-year, quarter expansion the QX our and to earlier. R&D primarily XX.X%, margin sequentially points was the due and gross and X.X was margin gross expenses XX.X%, regional investment was down operating to described Clear ASP for Scanner point up XX.X% third sequentially primarily XX.X%,down X.X primarily expenses quarter up down gross ASP sequentially, of

operating in a income from both is increase year-over-year. from Our scanner basis, income leverage revenues. income up and higher aligner up to and On reflects was services. sequentially on increase million, revenues clear primarily operating operating operating due higher expenses third the X.X% The primarily in year-over-year and XX.X% sequential quarter $XXX.X

ASPs guidance. by Our related due leverage. sequentially a mentioned sequential expansion margin our manufacturing On operating from With The tax leverage. quarter due was tax continued of gross $XX.X lapse, to unrecognized in as XX.X%, X.X rate operating offset is which compensation primarily operating regional was partially the expense provision, third a decrease gross margin ASPs by is tax down a offset based of quarter facilities, margin lower on expense a in and million points to increased lower from includes margin statute operating $XX.X due X.X by above, down benefits decrease to regards operating year-over-year basis, third to non-deductible year-over-year. the points offset lower primarily and charge officers' to recent XX.X%, higher million our release IRS margin

$X.XX, was the up Third down and to $X.XX quarter diluted earnings per year. sequentially compared prior share $X.XX

Moving on sheet. balance to the

marketable and our decrease $XXX.X were $XXX.X to the $XXX.X As quarter, was million million, of investments, QX long-term securities, short- securities, was during to at million Of the international million, of held our up accounts $XXX.X both million equivalents and equivalents of million. repurchases the $XXX a including quarter. of $XXX.X third our million due $XXX.X cash by marketable cash, the receivable approximately cash cash, held primarily was This end U.S. and balance and entities. sequentially. in QX, compared XX.X% approximately stock

XX flow days, the sales expenditures, of million, for Free aligner the QX related amounted from and days the compared outstanding, to or as quarter the third as refunds. $XX.X tax capacity cash capital Cash investment third DSOs, were from cash was for quarter, defined $XX.X prior was overall $XX.X in less up quarter for our flow year. third down operations pending last Capital increasing year, to days to million $XX.X sequentially operations expenditures to primarily timing of million, due the continued flow million. primarily and flat X Our facilities.

our outlook XXXX, million Starting During outlook. view. that QX our inform our the authorizations, the with we our available stock factors still turn May repurchase With QX and that, demand the program. under $XXX for let's XXXX million against of of repurchase have repurchased and to stock buyback $XXX

summer as reflecting by holidays EMEA increase China We from the a QX, period following comes very period. market sequentially stronger off to summer somewhat offset expect seasonality QX international QX, in slower period APAC strong in seasonally volume QX

driven been was that expected part to volume promotions QX some For in discontinued. have Americas, better than due

Americas QX to sequentially. We increase slightly volume expect

in We across to as the and growing QX, be sequentially business China in with very continue off flat to including in expect a DSO coming regions the partners our strong rollout we all invest iTero ongoing QX, iTero U.S. business

expect contractual quarter are a backdrop, XX.X% decrease continue minimal case to sequentially approximately With expected at volume QX. cases, anticipating expect be to levels shape we to XXX,XXX in SmileDirectClub We fourth up to as range a to the year-over-year. as follows: XX.X% be and from of the volume to this Invisalign XXX,XXX up is

to in new of We the ASPs $XXX the of million, our as as year-over-year, promotional foreign strong expect QX increase toward revenues products be Advantage offset range mix well reflecting exchange. program, ongoing by of $XXX customer an to for to shift loyalty non-comprehensive million volumes, due XX% growth XX% Invisalign discounts, lower effect to continued approximately primarily

XX%, costs QX initially higher aligners we China, to XX.X% in new will the manufacturing where we across Ziyang, range to gross in as margin reflecting volumes. lower facility have begin expect to low in fixed We spread be margins of produce clear very our

of be expenses operating in million. range of QX $XXX to to in the expect range XX.X%. operating margin We be the to QX $XXX XX.X% should million

should Our effective XX.X%. rate tax be approximately

$X We shares loss of outstanding share any XX.X our of million diluted be exclusive approximately And million share should related repurchases. expect approximately equity SmileDirectClub. to

$X.XX. range in $X.XX expect of per QX Taken share to diluted our together, be the we to earnings

we to In efforts, million. addition, to expect depreciation as and $XX to be for expansion million. operational we continue And $XX QX $XX million expect million $XX CapEx amortization be we our to approximately

long-term the to XXXX. view Based XXXX we total turn on our expect to the for our rate full-year our me QX growth model above continue and revenue to be let in Now low-XXs. guidance,

the We growth in be expect Invisalign also to volume revenue and low-XXs.

slightly for operating to over XX%. Joe? for up back full-year operating it we XXXX the to turn that, margin together, of expect final XXXX With I'll Taken to margin from be continue comments. Joe

Joseph M. Hogan

Overall, Invisalign was good the both for businesses. another Thanks, with iTero John. strong and quarter growth QX

Our and as across and new all partners. our success an performance channels, customer in utilization DSO markets with expansion as reflects increased region traction continued well in driving adoption

through office to market millions whether huge for ahead connect like opportunity with have orthodontic consumer-friendly a We in do. market. of a traditional excited or many Invisalign of up X,XXX conferences meetings, approximately Experience new the this transformation. to the I and with the at you consumers committed treatment, Ortho weeks coming various next a Las doctors forward in digital rapidly-changing the including month Summit it's Invisalign approaches routes through doctor's look to in is Invisalign industry where are following Vegas two be doctors their we over the days the through to events. sharing education will staff company We're help to of peer-to-peer program, one doctors practices, the the Operator? I'll everything turn navigate guiding iTero of Align that, important we doctor and best With successfully best dental center to and most positioned operator. our them clinical and in call spend Invisalign

Operator

question. Robert Jones Please Sachs. your proceed Our first line from question comes with of Goldman the from

Robert Patrick Jones

it question. John, heard areas like decline. around lower if FX, provided decline, sequential guess have $XX if would more details you ASPs, been like just John, and I start some remove for which And to impacted at $XX, you on the that sequential Joe $XX correctly, it. sounds the I I Thanks, guys Great. the the of it least

so down decline, break program. the would I of additional promotions versus guess necessarily you I So, talking that remember came how much follow-up could of guys maybe much And was from the just mix you be, about then hoping don't that shift. I promotional

that always or planned something and So, was to place, something in there was the this that just you maybe was the marketplace forced greater curious react to put promotions in kind uptake of than if the was if you thought?

John F. Morici

Hey, Bob. is John. Yeah. This

about the mix And was shift about ASPs promotions. drop to $XX in of to half related piece the to half It or was remaining the was the other stage so left, On or that's mix. those products. due lower

Joseph M. Hogan

ran not on customer the we Bob, get we segments the the But happened this end in obviously all the Program the to the of marketplace. case, that And for of did engagement quarter, customer Look, the this Advantage time. programs upper do we is lower checking the We're encourage We all trying Joe. what end different in do special we our it's We're the anticipated. and this We stickiness. out incentivized time. segment.

that We so, learned And move it shut from again. we obviously repeat that We will won't in on. thing sense, down. and it we

Robert Patrick Jones

what And should ASPs the beyond as then is more just XQ, from we assume guess, will FX think importantly and XQ follow-up that on to promotion then at the that for least but about headwind is it Joe, that the be safe normalize? to of portion I then, it

Joseph M. Hogan

it about as that's Think Yeah, correct. Bob. flat,

Robert Patrick Jones

Got it. Thanks, guys.

Joseph M. Hogan

Yes. Thank you.

Operator

Jefferies. of proceed from Our Brandon the your Couillard next question from with question. Please line comes

Brandon Couillard

low Good of in can terms And quarter, gross along Maybe, aligner capacity given the as of capacity manufacturing XXXX, about to start in the afternoon. ASPs? you as model of terms three- look of to soak out at it impact logical John, the in year-over-year expect aligner break you five-year of bouncing you end expansions? relative kind be would up here XX%, your manufacturing we're some expansions Thanks. the to the that of to expansion new margins the into margins

John F. Morici

Yeah.

of fixed we'll mean, see we'll I that more over cost low what that see initially Brandon. the volumes, low right, because You're of volume.

go see then And efficient, impact some costs. X.X due start-up. as we manufacturing related X improvement to a we So, forward we to the to point those as manufacturing get should more that's

Brandon Couillard

OpEx The incremental investments, are returns international beginning or diminishing marketing year-over-year slowest markets? Thanks. years see And or and a now. of To on Street fourth to the perhaps rate some the otherwise, perhaps quarter guidance emerging it few Joe. be you one what from more feet in for extent then for some the the in implies growth

Joseph M. Hogan

growth now. look is Brandon, at right if I mean growth, I think our our XX% you above

third you see look other big Remember, quarter when volume growth we So our had that we don't in diminishing a returns versus years. any at sense.

and we So kind don't of as the iteration believe be that fourth as normal third through between we go it's going in been sequential it really to has past. the quarters, dramatic

North And anything had overall, Remember, standpoint. still standpoint. extremely okay? doesn't a look from reflect Invisalign at an well, performed you this international market's market in so incredible performance our We America from as shipments

We great iTero, had also too.

we ASPs have fourth what driven to have with and promotions them at make sense primarily what the into in we corrections as looking is go of we're So, by we the quarter. these the the

Brandon Couillard

Thank All right. you.

Joseph M. Hogan

Brandon. right, All

Operator

Block question comes your the Please Jon Stifel. from with line from question. of next Our proceed

Jonathan David Block

Good Thanks, Great. guys. afternoon.

Joseph M. Hogan

Jon. Hey,

Jonathan David Block

Hey, Joe.

I you on ASP for other got But I'm and $X,XXX basis. XXXX around XXXX believe was worldwide $X,XXX Q-over-Q guidance. backing your on some make one, revs scanner John, XQ volume XQ think a I've First flat I based assumptions. mentioned Invisalign to a into

not You repeated. mentioned some run XQ were the be will of promotions that in

if then why the the into about a that then think XXXX? So And ASP decline continued worldwide follow-up. XQ? do extrapolating right out And $X,XXX on to I've got I'm we

John F. Morici

QX effects at we mix look Yeah, Jon, I that have. as continued would

down those QX, we we were driving as said, . the low those continue into we've QX that some promotions had happening, that not So, But like will – QX. that's stage that through promotions of continue the ASPs will the we some shift are of into specific seen mix that had, QX. in

Jonathan David Block

obviously I promotion. Joe, with have Robert's you this so question redundant. answered Okay. focus the this think important And apologize the to it's if then, But may is on earlier, I

freak to that that's at can So cases? lot bit clear you were and the the be the time aligners the time little promotions quarter, same you you or to to promotions going ever market clear introduced they great. more that So, specific you guys. mentioned, for you that more can out, the were promotions first clarity right? those that the in the two word hear Any be would give comprehensive? three of Thanks, express-type in people a specific comprehensive ran a Were

Joseph M. Hogan

question This tier in and But to has marketplace big about we XM one had were the marketplace. of is of the toward had we just the whole we competitive part third we that the sure in this cases. things Again, hit going lower happened performed the we in promotions piece. saw based teen is out the just monitor ASP, promotion under hoped. time we're obviously that of to not the quarter's affecting the some Ormco want in we thought obviously Remember, I competition not the Jon, adult the engage clarity anything it engaged. and to completely give a trying upper it. a run to that geared on and is to the the screen, a stop that This backwards Jon, to this continue still rather around. standpoint, proper not any them. move feeling kind there. And our your competitively wasn't and in United the in we're is, States ANZ too. marketplace talk you see in incentivizing how season. promotional We answer these are of than That look, But, and From radar don't sense on competition we of trying Program teen it an comprehensive Yeah. right just all promotion now. have on go make that these it. also to to Advantage re-emphasize, promotions a again, tier sense marketplace had these we we

Jonathan David Block

guys. Very helpful. Thanks,

Operator

comes your of Evercore ISI. from line from question. Anderson Elizabeth question with next Our Please the proceed

Elizabeth Anderson

for Thanks question. the Yeah. Hi.

with lower-priced in and shift? helpful. also Do on sort market, what of that be in path they Speaking up, engagement would you Thanks. the what lower-level products you sort sort end of about mix you of move of they my GP in of do shift sort lower talk question. lower-end really the you're stay customer? of on about That that product to typical then that about be forward? were thinking could further then color the how sort going going And talking or are of Any first would just start

Shirley Stacy

first you question. repeat first You're the question? can of light We the your part of hear couldn't Actually Thanks. kind the on volume.

Elizabeth Anderson

about Is sorry better? that that. Oh,

Shirley Stacy

Yeah.

Joseph M. Hogan

Yeah.

Elizabeth Anderson

my lower of were that you engagement the on question part didn't for the you end said obviously, you of was, get first hoping market. The the

of thinking just And about that you've so sort learned and I of the wondering you're forward. of from how with was sort going market segment that what engagement that

Joseph M. Hogan

Yeah.

we just it's do we'll our lower make have to we be I focus on them, across how mean, tiers. In the position simple feedback. that of incentives the was the line. thought GPs really This that and movements think balanced the broad the lower wasn't. okay? of start we future, simple Advantage I kinds do engaged. across of relatively that those doctors second your and think doctors do with of we end tiers off of just now iGo, GP, broad how mid-range With more it's kind target in allow exactly iGo, product to with on it start a that them get all sense learn response to we GP in the to and And marketplace, that On product order We be question they able had tiers and piece. to as it'd to a it's encourage to that the for are how certain

And a so, predominantly the with iGo the that's you growth as at GPs we're all that world, moment. product call what the mid-range around positioning we'd see

Elizabeth Anderson

Okay. Thank you.

Joseph M. Hogan

help? Does that

Elizabeth Anderson

Yeah. That was helpful.

Joseph M. Hogan

Yeah.

You're welcome.

Shirley Stacy

And terms with add in just talking other Elizabeth, ASP. one I'm to thing just of what going about respect to we're

higher and The other tiers. in and part conversation move has additional tiers around saw has to volume moving incentivize was to what Advantage doctors the the intended we the of new and year this more in obviously lower to the tiers, that Program do up how than tiers, up doctors

So, part the of well. impact that's as

Operator

comes from... Our next question

Shirley Stacy

Question...

Operator

Sorry?

Shirley Stacy

Jeremy. ahead, Go

Operator

the Please from your from of Steve with comes question Stanley. next Morgan proceed Beuchaw line question. Our

Joseph M. Hogan

Steve. Hey,

Steve Beuchaw

to that is a Is something the this has experience that environment company efforts Advantage back, different environment. changing about I come there it lot something an thanks Program? couple mean, product thinking types there for question of doctors in I I line could made ask and running wonder of you you respond a or promotions about intersection that are an here. earlier, these the time? the of to the or about way maybe the I points. how Joe, if to clinicians evolving I Hi, historically a because is point wonder the programs. time talked

Joseph M. Hogan

don't any I we've market a the before. through the it's differently is conditioned biggest segment since Steve, is in offices, where right it's been and States market The in not the than that's that think SDC now. really is But United just competition change doctor's not is the Yeah. completely seen marketplace. different obviously

new a levels. different of of series if America of think launched in you look it with I different at brackets, Program this, Steve, we North different this Advantage at XXXX, think series a has I just rewards, in bonus kind

engaged those really promotions before. haven't around We things

just was okay? things. sense kind If those yesterday it bit we that's questions external some as We this seen was what That's we'd tiers really some little launching We there kinds out been launch things. I how Don't program to to has questions and we Shirley these are structured this and customer take-up of them you. stickiness. business. brackets, tell works those. in what the never at look was promotions, driving elasticity learn actually prices. things curve have about, a think the do this tell these certain really not promotions. I a external We're things Advantage We We price business uptakes are is we've different figure from talked completely a these these type really do in can those do study Look, understand see the of different to in what encourage before. why this marketplace. at catalyst those – sense, in these you, of So we against do and respond than an learning and about the that a aspect I've of And you like your previous of things. curves I'd there an to this different

Steve Beuchaw

follow-up And is view percentage-wise, and low-single-digit overlap still then SDC, Got still on cases I that answer correct? it. Okay. just know I any this, cases your is that about but is think SDC Align the point to to between your

Joseph M. Hogan

data point, before this information change would with don't were back when about a overlap I it's think we've said at Steve. any comparing we that actually is our was that these – what back at have it overall. We always lawsuit, we and guys, about all saw XX%

Steve Beuchaw

you Thank much. very Perfect. Okay.

Operator

Our Blair. Please next question. with the Kreger William your from proceed comes question John line from of

John C. Kreger

any the Thanks very on product about in the expansion Day? update at U.S. Investor palate mandibular or Joe, timing much. advancement for that the you talked Hey.

Joseph M. Hogan

what Yeah. in along. expecting we the quarter all We're Hey, John. said fourth is

on not that we're bad been with course. anything FDA nothing that or Our suggest communications would the have

So of to our United States. launch say we're fourth product still quarter able just being I'd to plan in sticking the this

John C. Kreger

palate the product? Okay. And then about expander how

Joseph M. Hogan

expander, not it's it, product rapid think working you product. When about a First product is expansion a that. Invisalign Palate we're palate through but still palate expansion our

So we're most at in talk the digging through through morning Invisalign the still you with We're on in First. it's into XXXX we'll an update through this more working I like there's a investors' eight-year, about. that team. as rapid nine went we We're marketplace give with still palate it fact, working – indicated six- to to recent year still expander thinking and We're that conference. trialing

John C. Kreger

about I the as Okay. of want John, any just, call out you thinking or puts FX Thanks. kind takes the start assume year? coming more will factor bigger key in then a we outlook to maybe And for XXXX? be

John F. Morici

good at operational Yeah. We're a XXXX update FX performance. XXXX everything It else the it. not But we'll is John. it you giving out. call then But We is piece know, our call. And as the is next it on is. give guidance, of on a what

John C. Kreger

Great. Thank you.

Joseph M. Hogan

Yeah.

You're welcome, John.

Operator

Our ahead. Matthew next comes Please O'Brien from line question Piper Jaffray. go of from the

Matthew O'Brien

for taking the questions. Thanks Afternoon.

XX around? that specifically, something internationally. program QX to can you at over Is kind quarters. pricing some you to a both Were we kind the and of back side then? we slides what step-down this of that expect you And QX look this similar several then I time running should see saw worldwide like if So, your recovery the next on slide provided,

John F. Morici

what Matt, trends and FX some of mean, we through Yeah. I effect. see, that is comes those slides

through if comes there's So, up exchange as that foreign it well. shows there,

you can that, on of the some So, of especially some FX side, effects there. you international the when look see

Matthew O'Brien

Sure.

with you should further next over low more get This little going punch the the the forward. some away, increase though, in maybe gradual on several bit here the Is a to the moderation watermark should promotion fair? question be going that quarters. specifically ASPs QX mix kind from that the of benefits that Just for maybe

John F. Morici

Yeah.

think kind how I you point calling and we're that of forward. that's QX low about of ASPs should things is think be should the we're going kind expecting what that

Matthew O'Brien

even there then and talk follow-up in the as to And quarter, positive the about was actually question though Okay. positive. something lot a

leading Because scanner DSOs, cetera, be would you pretty specifically, should a that mind parse international, there? providing more et performance can business color side little out the little where you bit indicator forward. came for a a On from? going good the that just

Joseph M. Hogan

look it's strength you it, iTero. at of When Matt, region we had Yeah. in lot Joe. every a

we You with major have Last were uptake start there. penetration in too. we that's into Japan and year, approved now China great good and been

our very momentum And So, America, really it's then North individual In been DSOs is doctor strong. increasing have also all the in in down with which most too, Asia strong our did we iTero been strong you Europe across see scanners up market. also. and base mentioned, been also, it's difficult but as the over quarter, competitive

great and been so Flex were response We terrific. have The good the Customers momentum product launch the iTero too has X loved of launches. line the product really there too.

working for been future we has everything with once have in scanners just us Invisalign those well footprint that's So, business wonderful place. But for that a extremely business. remember,

Matthew O'Brien

Thank it. Got you.

Joseph M. Hogan

Thank right, you. Matt. All

Operator

line ahead. question next the go from Our Richard Partners. Newitter Leerink of comes from Please

Richard Newitter

wanted clarify. I Hi. just Thanks. to

XQ fourth right best ability your I think Is the case predict guidance it into the that's mandibular quarter, – the volume in of said your expecting to product still you or guidance? factored Invisalign I'm FDA. sorry, had expansion your you're that mandibular not

Joseph M. Hogan

wouldn't we few It's report advancement. Richard, do it anything it. we'll work we of do expect here Yeah. the quarter that's idea doctors And We what cases, mandibular of that, that don't uptake in States not some will just way of to you would launch material, factor XXXX, as with in into be. the give advancement United try things in, And within but to around the move they'll then, to we used a get they'll this, think mandibular sense sense. one honestly of anything

Richard Newitter

helpful. to of I'm been a every kind there? scanner with And anomalies if trends noticed Americas or that just was other That's somehow the time. and cases that around almost increasing if other ASPs we some that's the linked Okay. quite of some with quarter percentage in just saw one. the explanation for it's flat wondering there's any of submitted digital I maybe one

Joseph M. Hogan

ASP last Remember, there's XShape we correlation Richard, submit with the able to to No, ceased year, scans. be no side. allowing

really And back United scanner States. our that. doctors have go to impressions, much would so in been PVS strong think have those to Obviously, we what that's drove pretty sales and

basically So we we think just re-submittal XShape the because that's of have now. a with situation right

Richard Newitter

lot. just a And last Thanks maybe one. one Okay. then

across end your to the from said kind expected You I promotions that kind didn't what as what's you why you why reaction Or have didn't get the a both of complex it got wrong kind running work on market? assumption didn't and the hypothesis marketplace of it of of maybe guess the parts simple. low kind in work? to of market, do you or the an of as

Joseph M. Hogan

Yeah.

I all, not end, think, low it's of low first Richard, it's tier.

Double an Makes tier in across make sure What Bronze, Richard? are say And who promotions of we're have And, we'd sense, place, end An we you starts going we'd broadly incentivizing that, have Advantage we enough you're want it okay? Advantage obviously, goes all sense what sensitive It so, program. several our strong on didn't that'd Advantage these of is in change you're be brackets, saying to So incentives the the forward. the Program to you still up the at lower cases, their make comprehensive right? Diamond, talk Program. has these tiers. okay? When about these way we put when

Richard Newitter

Thanks. Yeah.

Joseph M. Hogan

you. lost we thought I

Operator

All right.

your Credit Our question. the Erin from Wright line Please comes next Suisse. question proceed of from with

Erin Wright

about provide in I kind Invisalign of the rebranding could any but of how conversion and around ask the rate the metrics for or terms metrics Great. key Thanks. locations sort performance all? sort Invisalign economics Experience Thanks. doctor-led And new you or there. work any won't Experience of the locations, ASPs, traction of with will

Joseph M. Hogan

centers. any had we eight now statistics Erin four the and on only Experience yet other expanding haven't And stores now. right stores, we our given we're

send because can to ways. move attract premium and the the we'll assigned the The doctors These with several more engaged certain patients engage that information. transparent in whatever. the actually products or with XXXX, be doctors into As a we scans The them, actually to doctors we store. are have

sometimes fee increase Invisalign all, anywhere those XX the raising at Invisalign And areas we're just Signature So, a about specific but still then Deluxe, is, And doctors there's depending awareness there's sales doctors the the and seeing for kind it's the the halo for because start The we're the on associated significant with are aren't obviously in those Plus in area. response. even just lab see up also program that products. of to a miles XX, it effect, halo of too. of geographical who of doctors certain or types a talking between that aligners Signature, of effect to we what XX, fee to those

Erin Wright

then about that relationship previously to initiatives Great. that don't for purely you Okay. third-party much customers really today that I it. I guess sense you've here, on today? hear but effort? a seems And stand make financing does alluded speak Thanks. remains to where And that

John F. Morici

make the U.S. It's continues. trying where it the Erin. be something use Yeah. financing, ways for company primarily that third-party in sheet's work we able it's not to things on really Hi, them. Invisalign And just is easier consumers end that's Yeah, and it's and our find This John. our to with. easier we're financing to balance for

few do for to So quarters rolled that use. we now. to the continue part the it. And a U.S. try it's we out been of It's conversion across

Erin Wright

you. Okay. Great. Thank

John F. Morici

Welcome.

Operator

Our from proceed the Valiquette your with next Barclays. line Steven comes of Please question from question.

Steven J. Valiquette

Good Thanks. afternoon.

to the maybe nicely. much color what obviously pretty just for growth which the call would to of loyalty case in growth I program? of mindset case if on no are promotional curious there quarter, any activity. was you were how you maybe overly had more the Or enhanced So the XX% if guess volume growth essentially I'm tied accelerated the volume overall there's Thanks. have the that that same we'll alterations

Joseph M. Hogan

can it you to X% Yeah. can't we volume. North Steve, it's tell the on nail we exactly, America but X%

Steven J. Valiquette

maybe thinking year, want Okay. normal ASPs to you a for could out want anything get be about you loud away again, to slightly on One on pull just quick list more another you giving this other of ASPs if just you're be you you prices without if off because to also your curious think if optimizing than wanted for when kind where lever you could – activity, you where of just to price. next that one increase as thinking potentially on bit XXXX,

Joseph M. Hogan

year. every the Invisalign comment Steve. have of And last too. Experience technology it's been on It we We we marketing don't a price would years. you strategy. want price Obviously raised quarter, the in price things lot in fuels going do We never Well, about to and the that, our year into customers' part we raised this But of our driving into. a campaign adopters, also we do. and all invest talk three

don't a it's that pretty So our plan. part on large But comment sense. in been to want XXXX of I strategic

Steven J. Valiquette

All Okay. Got right. it. Thanks.

Operator

Baird the from Please proceed of comes question question. Jeff with line next Company. your Our Robert from Johnson and

Jeff D. Johnson

Thank you. evening, Good guys.

Joseph M. Hogan

Jeff. Hey,

Jeff D. Johnson

Hey, Joe.

time? come think a kind It because Invisalign discussions Joe, had offices kind other get that the cases at But the a Is you're some the into or quarter. accretive channel I've XXX sounds some So the And to to Any channel just where doing that of gross that? work actually it, patient look in least office. your from sense, get at that through conversations is that my or start that that offices a let that into comments on in of those really almost moving of margins into to Experience. are second the a the like little cases, fair you're on way the bit private XXX, DSO at ago. practitioners in some in alluded that fourth me I moving just into you could supercharge here you

Joseph M. Hogan

we've a I Jeff, patients, in in stores the we it's way it mean, place Aspen. of those piece Invisalign and what in an talked consumer too. part of of quarter. We whole And put a to thing Experience things. those we their look about turning a the the what of offices at used last standpoint, obviously call it. created we'll to call done be store scanners we've is iTero DSO into in engagement to From and was mean, put to fair I the Yeah. Aspen customers in uptake idea a lot within store. employ created We've doctors' stores now we able Aspen really material. customer

and one our the such DSOs reporting. that part a big So, been that's reasons to and selling strategy of been it's uptake you of we've the big a in see

Jeff D. Johnson

tonight hasn't understand, enough ASP just I there And enough. been comments. but again, then, Fair John, want questions to Yeah. your here

activities an You promotional get the quarter. of Currency some in of fourth is going the little forward. impact right-sized a bigger bit probably

right? back down headwinds trending would XXXX XXXX, up you quarter ASP or little versus half of those come then in the of is recovery be kind at that activity see fourth bit expect a as And some off currency So, in least sequentially XQ, to throughout a a maybe the and we promotional of some bit headwinds as do well?

John F. Morici

quarter. in the it bit But you're things in mix we've about standpoint little business. the fourth is expect from down an we flat, you terms see just to about we we see see that ASP fourth of then what be right, in given talked come the the from the it would what Jeff, and a – quarter, other on FX,

Jeff D. Johnson

Okay. flat, to clarify moving that sequentially? throughout ends just quarter then that our And whatever up, holding that, so would fourth wherever ASP, expect XXXX you

John F. Morici

Yes. at it. That's how we would look

Jeff D. Johnson

All guys. right. Thanks,

Joseph M. Hogan

Yeah. Thanks, Jeff.

Operator

Please form from of proceed question line Misra with Berenberg Ravi comes next question. Capital your Markets. Our the

Ravi Misra

you question. Thank the taking for Hi.

the couple a business. Just the margin on for outlook based

going step-down a look XQ Is kind aligner going slightly question aligner So, or similar of flat through the new of we how kind just on ramp I then, number plants do online. And on programs that the business. mean, that on it kind of have gross implication remains type increases in coming the aside, a about marketing at just a that strategy, these model of think we the XXXX? working flat forward Raph as gross you of into you have and outlook, steps pricing from here. margin

marketing leader in. You coming have a new

of summit look base, customer Are we like segment orthodontists world dental here? you productivity call Or are that? Thank and in at focus a a in greater top less your guess on guys productive there from here? your trying to dentists do the month. is less looking approach You and How I that? have everyone of you you. let to an your you're orthodontic kind it the to How where room for get a

John F. Morici

volume Ravi, I'll the said, take costs of manufacturing, some to as the the spread to amount those be need we with some online gross margin that certain coming we question. over. it's of costs of at able Yeah, now

the And treatment in planning we that then, manufacturing to the of margins. some the related efficient of see that gross So and and we will our we affect planning have reflect that guided manufacturing, both to related QX globally, start that that. to get kind as efficiencies manufacturing more treatment we'll to

Joseph M. Hogan

Joe. Ravi, And it's

Your segment on dentists lower just for versus I'd by the everyone. orthos and – top brackets, top end room question versus or it saying there's

things, massive side, is in plastic, is, you to with call the specifically that about on and that want case in doctors want as GPs that's is potentially take do to as when as about you make you go Day, journey a orthodontic more that you to our set of as forward process year that you to with this market segment that If walk has of digital our efficient how through see between we encourage And really a general can your through analog up XXX But what really talked a a get this digital-based market have to conversion, we predominantly You ends to measure be XX those to Investors those number possible. at call million. right? used is a business But we million all the doctors, we particularly how system orthodontists. have to digital. practice, majority what consumers, what ortho to us, it and as them so have we we productivity also a talk financing starts from dentistry up always we programs of your

that often those us. they thing things. maybe use sensitive. it's profitable want we this for aspect been not and After I for This had in running to and strategic he This make the Raph's marketing also and within make went in sure for been work some kind on. how certain, we responsibility mirrors. Ravi, just restorative those indication development, to had work Raph's standpoint. for family our from standpoint smoke any right this that these understand that Don't business, critical dentistry some and workflows that running support promotional way making he's Raph restorative a We coming of has he it's being standpoint development in and from tremendous family is international and one deal business. decision to any to has that a can issues to me sure Raph overly take general nothing make the side, docs him. is what This announcement that and with On a do to as with from he's with now. business

Shirley Stacy

Thanks.

Next please. question,

Operator

America Merrill from comes the Lynch. of line Bank of Our question from next Michael Ryskin

Michael Ryskin

to any have getting in discounts, squeezing I being pricing but sometimes guys. that the they passed pretty are Hey, dentists customers of it's that difference are are the just couple getting taken a want questions and channels squeezed themselves the One by but for tough A to those price the end substantial any you they it's sense is, customer onto do you have been are dentists? Thanks and me I follow-up in. know points. on adjust? on lot quarter, aggregated, the the by being to measure something sense to

Joseph M. Hogan

not way actually these some think is we feedback to with business We in we don't promotions feel involved. points Michael, up million on. light I'd I this too in say, having hold there's that remember going data, do or that. doctors get But don't so this the passed what onto It's overall because any has and have with just many a have of consumers. there's to

Michael Ryskin

the on quick real just DSOs. follow-up a then And right. All

in you docs? some customers quarter the price grouping. customer shifting, small of much mix as mentioned business, I of And terms in how to the think that's get still versus the is part a XX% of those the a but stand-alone overall there able anything different growth is you're with there

Joseph M. Hogan

the are From contracts the in significant a price large we obviously there's DSO for place. that discounts standpoint, in these offer. DSOs the volumes And sense put

amount talk growth DSOs. we kind certain when XX%, mix it's about. the rates, talking some aspect So, about you that see a of mix, obviously there's of of these with we're mix When associated

think too, really since we to they And patients OpEx it's dentists, So, they're A dentists as general important don't GP use normal that that when Michael, about much them understand. on you to The their spend of is to own generate the lot treatment per DSOs. those have their office. understand would help to could patients individual We orthodontic not. don't of ones them or could patients coverage stand amount that X,XXX have have have We mine would doctors. orthodontic to or have X,XXX with sales want the we'd which to treatment demand. for

to ASP we're an much businesses, going a those feel too. have but spending So lower not we as you're overall money from OpEx standpoint on that

still margin it's for standpoint, a us. So, from positive gross

Michael Ryskin

Thanks. right. All

Joseph M. Hogan

Yes.

welcome. You're

Operator

from from comes your Cooley line question the question. next Our Chris Stephens. proceed Please of with

Chris Cooley

thanks for letting end. at and evening, the hop Good here me just in

from quick in give elasticity provider maybe providers in it's when curves that for in the by as net price you math of maintain just the that if questions the Could two and higher ones as your rate Just look market. XQ? the to just views, one for just doing with, a $X.XX mentioned Maybe, your doing right, level margin the right differs in I terms of start that And caseload? for positive volume the you market to you prior effect us at profitability the there Joe, evolve, we what am on there takes lower think evolve, one-timers the puts expect versus markets the to just Thanks. the I'm echelon of tier John, how these to quarter, clarification standpoint, about then, the continues on me. the tax maybe of kind and

John F. Morici

ended the that Yeah, up kind just of the guided XX% on We tax, highlights gave tax. of had and the we at XX.X%. just overall affected

X.X% big kind was of things we So guide. our little quarter. you a favorable of a takes in say tax what compared the two But those to that few and it's can just that pretty came the puts were much bit for

Chris Cooley

Thanks. Understood.

Joseph M. Hogan

kinds And we things going over curves be. what we those forward respond we It's these segments projections a that that an the elasticity and would signals as specific the by world. tell anyhow. going or about that to part of be it's why comments to And just specific do elasticity level. doctor to to. any have and price tiers programs. But to talk did these not on if not area docs of I'll all we so demographic, or keep doctor on We those of favorably do them, don't segments. talk segments aware things, lower we'd share And we It have to by curves high data you necessarily segments But going really or we're important the we'd depending whatever, When or promotions price of those comprehensive just just that get. obviously, like teen don't about of have we test far As a – or that's things. have any at and I where marketplace but from what or not those. we it either sure

Chris Cooley

That's helpful. Thank you.

Shirley Stacy

today. concludes everyone. conference our Thanks, Chris. call That Well, thank you,

month. Invisalign to great upcoming at conferences we the any at Investor day. the contact forward Summit If Relations. questions, seeing look further next Ortho please you have And and you a Have

Operator

This concludes today's conference.

participation. You time. may disconnect Thank at your your lines for this you

Align Technology (ALGN) 25 Oct 182018 Q3 Earnings call transcript