ALGN - Earnings call transcript Q4 2018

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Operator

Greetings, and welcome to the Align Technology Q4 Full Year Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Shirley Stacy with Align. you. Thank begin. Please

Shirley Stacy

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

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

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

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

Joseph Hogan

two of thoughts Thanks, briefly some our outlook joining the the financial John results, XXXX. first our in provide scanners. the on performance year, for our call afternoon, and share aligners and provide then full thanks segments, and discuss I'll Clear discuss quarter operating highlights us. intraoral quarter fourth Shirley. our for will our today, detail On the and for more Good

I'll that, open back questions. few to the and key up call points come and a Following summarize

finish were was than strong expected, great year. and QX year-over-year. fourth ASPs Our to growth higher Invisalign quarter a of a better revenues reflecting volume XX%

of reflects EMEA scanners and traction with As anticipated, legal year-over-year. continued up iTero Invisalign teens QX as margin XX.X% in well improvement by well another growth operating growth training well for manufacturing driven for with was for higher costs by doctor as as Lite higher partially XX% ASPs. quarter as with record and as sequential a strong Invisalign revenue record QX iGo. than offset sequential fees quarter

about QX, includes X,XXX For doctors record doctors, we EMEA were X,XXX which, were new a quarter, in which half the international APAC. in half of and trained in

and XX% revenues Invisalign with for teenagers from volumes year country and and channels which over this teens, reflect For X.X Invisalign clear record achieved millionth we teenager had results our in China. from $X for and customer Invisalign was XX%. of our start of treated revenues total markets continued aligners record nearly and the XXX,XXX, time, the X a with Invisalign both million resulting number patient, The year, first Across volume. people representing These iTero. grew strength treatment billion over of

XXXX, doctors, nearly the in a for worldwide. new of international them of And than time, more record Invisalign number were doctors. trained XX,XXX Finally, we first half

our starting fourth quarter around Americas turn let's results to with the region. the Now specifics

for record promotions QX from volumes, a basis, Invisalign the was by adoption by doctors. strong QX America's region, off from both respectively. up QX growth Americas predominantly of For XX.X%, treatment reflects orthodontist and and Year-over-year Invisalign offset Invisalign and were channels, growth GPs, of reflects XX.X% quarter, benefited On GP volume uptake particularly continued which case doctors. QX down sequentially increased high-volume Americas the orthos, from sequential XX.X% last year-over-year high-volume which a

DSO nearly growth GPs We XX% across and from also orthos, up partners our year-over-year. both saw good

For the the XXXX. Americas were compared up X year, GP region years. Americas for XX.X% to GPs full growth rate volume was the XX.X% annual rate growth for dentists Invisalign highest in second up orthos orthos up were the XX.X%, for and Americas and annual highest

of region, North Latin American trained doctors were an in For increase and XX%. Americas American new XXX new In QX, in Invisalign the Invisalign a doctors doctors. total, we doctors record which, the X,XXX in trained XXXX, of X,XXX Americas were X,XXX we

driven reflecting Asia our Invisalign QX doctors case with XX% as expansion EMEA offset QX and the Asia In somewhat reflects Invisalign is well year-over-year In strong the XXX volumes in quarter, year-over-year, X,XXX region, up strong QX, new nearly in program. internationally the and Invisalign For Pacific record up sequentially, by was growth EMEA strong volume XX.X% growth in up EMEA all the by trained Pacific from in with continued international growth we which as continued roughly of business, in a volume basis, region. by On XX.X% markets the region. and a increased XX.X% XX% both a success EMEA, APAC. in driven XX.X% seasonality in prior customer Teen Invisalign great of base utilization strong of teen quarter was year, segment, our country

up our and EMEA as Iberia, the year, as led the and U.K. full led by For well by Europe. expansion France markets Central Eastern key XX.X% was

expansion Russia, we adding XXXX, our country Turkey, Israel During went direct and markets. in to

sequentially down as up year-over-year was Japan, almost year-over-year. well led China, XX.X% Invisalign from record QX every dentists country market slower results up QX teenage growth continued APAC, with by with region, seasonally reflect the volume as patients as period -- in XX.X% in seasonality GP ANZ. strong to expected adults, due For

events adoption Invisalign clinical APAC including to we scanner QX, is how doctor's in iTero several which APAC, to practice of the help new X,XXX designed We critical education During across trained China. treatment, in growth. of increase were held in doctors half confidence

In For China. core case our EMEA we're from results, record XX% Despite from increased country clearly China volumes Invisalign shipments. Invisalign our the volume still overall and APAC XX% and specifically the international underpenetrated total, in worldwide markets. led very represented year, international of growth in doctors by

Mexico. As QX, local facility replaced relies the closer that in much and first second of our by communicate China doctors growth to own market for Ziyang, drive as local building Align, a be ability will largest our in represents our possible, and operate manufacturing like facility in we our aligner across and enormous a There's our new region temporary began expand ability be patients, as to Invisalign to China, their facility company. in outside language and Juarez, in the potential, penetration Late aligners fabricating XXXX. fabrication on

year, rapidly next to will market. growing production Chinese to serve up the Over build continue our we ramp the abilities and manufacturing Ziyang in

couple a growth quarters Ziyang take this transition aligner would would technology production Ziyang, it regions. period. manufacturing to driver underutilized However, Product overhead be of to fully and during in from across Juarez we be innovation to key a our to expect and continues

to adults and Invisalign iTero treat kids years moderate treatments. chair-side cases, digital Invisalign or a a more teenagers of give comprehensive a experience doctors launched straightening teeth choices flexibility wider we we user-friendly year, product mild that the as prior such gapped mid-XXXX, with past and Go treat a several tools to Over new now to from non-comprehensive more young old. and even greater as crowded new to teeth to cases offerings and both range as In treatment range for greater launched of to require X restorative

specifically started and young date, used with China, continued teenagers treatment XX,XXX regions. First, the malocclusions, Invisalign erupting initial we Canada, of over XX.X% pleased a Zealand, cases approved over To advancement, Invisalign First In X,XXX strong approval France aligner we advancement Spain. we adoption initial Invisalign by range EMEA, aligners, of Late uptake and seeing XXXX, regions, the mandibular arch nearly began the and only FDA over In uptake Invisalign including clinical America, simultaneously offering younger of increase an Australia in and We expansion. North QX, are also the dentition treatment Overall broad QX, to mandibular and EMEA crowns, customer primarily product U.S. which have with for XX,XXX patients. began with teen Japan. Invisalign in X,XXX shipped designed to received with across dental teeth major ramp market, U.S., in the address driven move for predictable shorter the management globally. by Americas We're we driven led mandibular along advancement mandible doctors, in and teenagers October, feedback. continued patients' clear feature in is in the by in both New And to shipping the all with clear quarter, and year-over-year,

were Invisalign increased XX.X%. year-over-year growth America North XX.X% international patient teen QX, doctors For up for orthos and

cases full a year, the grew our or to For teen XXX,XXX volume. total of total total XX.X% teenagers, of XX.X% worldwide

efforts designed consumer over PR, TV, in office. and recently, treatment including doctor's each marketing media, We Experience marketing consumer invest million event and Invisalign more a Our our patient programs, through and are demand for build the concierge to marketing category drive digital, year Invisalign $XXX program. and social

are past different marketing, Experience turn of digital or with included today. world sharing consumer their in to our just unique the their to total we insights with The consumers marketing our patients. The with brand and fourth is doctors consumers impact In for doctor's Consumers of brand and and concierge and more demanding a activity over to don't will perspective doctors on not visitors a key expect invisalign.com engagement better had practices. work treatment practice, how our digital know engage Our a quarter doing reshape our Invisalign through workflow metrics where specifically and them types consumers X they of seek What doctors Invisalign of to Other integrated in industry XX show million help million evolve into them with program goals in from especially the our given has household make Invisalign we are continue increased and the challenging technology customers the a worldwide about are for to service, to platform, that office. Invisalign name motivate every QX, nearly to patient year. Many and worked expenses. aspect strong slides. and on engagement us how sites digital-driven are with start. we're the information and see work conversion and

Invisalign the better an program smile Invisalign consumers getting them designed and doctor. and treatment in example, educate to and of For a value on Invisalign Experience where dine environment of with and reach them the retail benefits shop, play they connect is a

getting Invisalign with browse, stores States, an Invisalign us excited offered XX United to smile they ask locations bring questions, and ways which more this brand with treatment. simulation local consumers these barriers is like options. One Visitors to of and environment. the about are visual a Invisalign the potential learn benefits after digital can a by of doctor. directly are do their Invisalign their connected Invisalign and XXXX, office might scan stores to iTero By Invisalign the in than patients about the technology, a interactive doctor's store, for so potential contemporary, XD the about treatment Interested we treatment Consumers finished and reducing end choice complimentary through are of a the learn treatment look of that what ever consumers discuss intraoral with we Align. helping smile their of a teeth. owned operated in are straightening and is better

we're all addition participate for practices, increased Invisalign network store the to potential to seeing practices leads and surrounding growth of also participating positive or in whether providing they effect the not. rates halo the a area, Invisalign in In

past received store the than a complementary XX,XXX visited more Invisalign scan. XX,XXX Over year, nearly consumers and

directly creation continue started getting we we doctors in Invisalign excited selected still few have October, our the branding including doctors and focused engaging operated more and share with that program, in demand Invisalign practices new pilots with to stores to the The consumer to start and Experience of a Invisalign are mobile. we positive to treatments get development owned doctors overarching test friendly early license to by a are we of and into settings, design about are and evolve. directly their and consumers Invisalign variety and locations In Invisalign help with for running. we're These on in-office, special Align ways reach practices partnering new Experience explore and up to While a cities can and to approach under these doctors We'll a treatment. retail continues just is as them program and Invisalign we're impact consultation Invisalign workflow from announced consumers. connect pilot U.S. Experience by our starts in Experience consumer Invisalign consultations its intended the Invisalign integrate learnings of and potential and

a process workflow. stronger helping I industry minutes digital digital to Finally, technology transformation about iTero an with analog and in spend few starts and better want their is smiles their ends patients. to digital our which old journey, Align doctors from an end-to-end the for on an with talking practices and scanner

digital transformation, by last orthodontic the performed their clinics a to practices digital end, of doctors with we over practice to now a EMEA, efficient call several detailed we find and we more and with Invisalign-trained orthodontics, Process data involves can current in digitalization to project them we the To those to and experts and improve and As time. help improvement and digital are ADAPT, workflows small support practices year, that continuous practice leader APAC [PNO] productive, North workflow. in it analysis efficient positioned and their in renamed profitable. -- demonstrate launched have practice Align best fully that America productivity objective ways drive across be help

around from initial practices, study results that the built approximately on of is fully premises the this end-to-end who practice more to more XX% benefit to take them clear help their digital upon digital are had organize of to doctors workflows can conclusion that see transformation aligners. the off. Invisalign they that together, time early, incredibly come want the This need and potential do development, benefits the with more, goals, own iTero digital transformation with and and we've transformation still promising. their doctors the it's workflow. means organization expand ADAPT a to practice plus their Whatever see the While their commit to study from so the patients or digital we their from Based technology fully

For business, Record sequentially was all quarter driven iTero continued in by and volumes of and were XX.X% the iTero revenues, reflect a with services up year-over-year, channels. and very commercialization scanner which better-than-expected QX strength QX our XX% strong regions the and America, internationally, including Element iTero past X especially Flex continued partners rollout Element major increased manufacturing and began dentists DSO North scanners, the for Element we and GP where customer restorative sales year. of this Japan China, in Italy,

with million catalyst grow X.X For XXXX, XX.X we up had for an outstanding over iTero year iTero for Invisalign Cumulatively, have XX.X% a scans and case the positive continues Use of and for million scans scanners iTero volumes with submission to Invisalign scanners. orthodontic scanners restorative utilization. year-over-year. started remains

digital scans submitted the I'll were in same help be XX.X% increase that that total in our cases X went all year. means Americas primarily from that we've to to This is continue cases We're In China, X North continued drive call scanner about in an confident digitally, and overall John. increased treatment. QX, orthos XX.X% QX made adoption to that, year nearly remain year. XX.X% What's within excited with XX.X% within business Invisalign digitally. now growth over with the and X Invisalign it submitted Americas, the iTero submitted cases For American quarter iTero help Invisalign X, overall, or will With really by scanner. International of in the to exciting last submitted through XX.X%, very will progress turn from up year. last of the see XX.X% increased

John Morici

Thanks, Joe.

prior ago. from financial the $XXX was Total the million, QX from XX.X% results. quarter X.X% fourth a and up the revenue quarter up corresponding for Now year quarter for our

billion record up growth, For XX.X%. XX.X% a all iTero year, as year-over-year across of Invisalign X.X the regions strength revenue about as shipments million customer and which was full $X was volume, up channels record year-over-year, XX.X% reflecting well scanners with and

all a approximately exchange. year-over-year. increases. higher exchange, unfavorable basis, includes of non-comprehensive down channels revenue XXX,XXX X.X% QX and strong QX shipments discounts, aligners, cases approximately million a ASPs lower $XX, EMEA. sequentially cases growth by price were offset reflecting clear higher-than-expected For ASPs QX up and Total price unfavorable of foreign Invisalign cases aligner growth partially and year-over-year to was growth geographies. Invisalign volume QX $X by and up shipment discounts, of $X,XXX, $XX revenue reflecting and by reflected sequentially clear Year-over-year of across X.X% ASPs includes sequentially $XX on up from were strong were higher XX.X% offset On partially customer Invisalign promotional Invisalign Invisalign Invisalign of foreign on XX.X% up increases $XXX.X and on non-comprehensive

For year-over-year. lower was and cycle QX in primarily X.X% than our was and longer Americas XX.X% slightly due sequentially up Invisalign orthodontists, case to down America, outlook, volume Latin QX times

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

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

Americas scanner Our XX% higher across million, revenue was XX.X%, was Year-over-year fourth to up sequentially volume quarter up for due regions. and services due units EMEA. increases and in the scanner $XX.X revenue to primarily

X slightly gross X.X higher training up operational cost number The which lower expenses partially of consulting by of lower the in operating primarily margin in -- by case, the seasonally reflects offset manufacturing higher higher per costs year-over-year, points partially and XX.X% and by costs ASPs. increase to primarily per ASP. million, up aligner cases quarter Invisalign to R&D aligners points manufacturing ASPs, China, operating spend driven faster China primarily Moving the due commensurate margin number Fourth Clear increase activities quarter expenses, X.X to XX.X%, on higher fourth with primarily Year-over-year, down gross year-over-year. along to gross X.X and international with overall sequentially, manufacturing-related down Scanner spending to and $XXX.X freight reflects sequential X.X% sales X.X spending. EMEA. sequentially gross and down margin per higher of and was case, down operating and points freight points our due legal, regional points margin. was gross higher in more quarter for quarter activities sequentially was down sequentially growth, and was and growth. expenses aligners and XX.X%, was doctors down expansion higher fourth XX.X%, advertising training were for year-over-year. margin investment in in QX lower aligner points expenses higher freight Clear trained due due continued year-over-year, expansion cost, X.X our the in reflecting offset charges

Our exchange. fourth increase and by quarter primarily X.X% The gross marketing, revenue year-over-year. in unfavorable higher up sequential attributed operating primarily to income foreign margin year-over-year income offset basis, operating On sequentially expenses down as the income spending was lower $XXX.X sales and higher operating million, earlier. a is and legal/consulting reflects R&D, mentioned higher operating decrease X.X% in and

in related prior sequentially Our includes to primarily year. was and as is XX.X%, decrease X.X to stock-based operating regards points sequential points to With exchange. $X.XX On share quarter margin benefits operating margin compared unfavorable rate points lower Fourth to gross [XX.X%], [X.X%] primarily million margin per and tax The X.X excess which earlier $X.XX, X.X up due fourth in $X.XX and a due the was tax tax mentioned earlier. year-over-year year-over-year. quarter lower down to decrease gross operating margin, in provision, earnings from basis, approximately as our sequentially down described was down is diluted compensation. foreign quarter the about $X.X margin impact fourth

on the sheet. balance Moving to

million short X.X% the the accounts an QX held balance due from securities, securities, of approximately cash the and cash million cash, and approximately cash primarily was and was from quarter, quarter, in were million up international $XXX marketable $XXX.X million, our long-term Of $XXX our million by is equivalents fourth operations. of cash, U.S. was held $XXX.X entities. which receivable both million, sequentially. prior $XXX.X of marketable As increase to and higher flow including investments, equivalents $XXX.X

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

of stock repurchase buyback During against QX, still repurchased under have the authorizations XXXX million stock available $XXX $XX May we million for and our repurchase program.

I outlook, our up were year-over-year a year Before a Shipments volume our XX.X% $X XX.X%. iTero million. record would at scanner up of Invisalign cases, a Full make on up results. volume flow versus few reflects shipped growth of income for doctors $X.X million, from revenues we billion. move In X.X international cash XX.X%. and to Invisalign the This doctors. margin year was was our Total million operating XX.X% XX.X% up $XXX.X XXXX. of and our to XXXX, comments Americas full $XXX.X operating we growth QX XX.X% XXXX XX% versus with revenue billion, XXXX record Free like

year, the million per With for XXXX our repurchased Align to starting shares of and we million. inform $XXX the was outlook. the earnings that, demand outlook turn view, factors stock QX share our X.X that let's with diluted $X.XX. For

from and some as EMEA the expect the sequentially up momentum For sequentially flat New to Year Lunar QX holiday. as international, APAC market maintains QX markets be we observe seasonally is

we in Americas, increase to from America expect America slight North and For orthos North QX strong GPs. sequentially growth with increase also a

sequentially to their down season. be this America given Latin expect holiday is summer We

continue case volume We slightly a XXX,XXX Invisalign's to of be expected to XX% and first a backdrop, we as from expect equipment shape with a With is expect year-over-year. XXX,XXX And we volume up trends SmileDirectClub. cases, for in to seasonal up XX% approximately the minimal this capital be range quarter expect to follows. consistent to to as our iTero business QX, down market. record

reflecting be increased $XXX to We volume revenues of versus QX QX XXXX. to and ASPs expect the million, in range million flat $XXX

of XX.X% higher increased our to gross and the expenses. training costs range QX in expect start-up XX%, be in margin doctor We China reflecting to

range force operating We legal a million increased of a to operating in XX.X% which million, reflects meet be and expenses expect to $XXX sales XX.X%. should $XXX of to margin expansion our range QX expenses. QX

effective rate on be price. stock which guidance recent compensation should than higher officer IRS due to tax stock and is Our lower nondeductible XXXX XX%, based approximately our

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

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

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

rates. let view the XXXX, Now full year for me of to exchange turn notwithstanding the foreign impact our

teen We for Invisalign long-term reflecting our expect XX% Invisalign segment products. share of iTero, and from of margin of We the course the of in uptake target anticipate long-term gross to middle increased company, of anticipate We ASPs be QX. model improve to approach margin by Invisalign year. to regions, of volume continued our QX total to operating revenue over of the to our long-term international flat of operating XX%. from margin to model middle in We and to XX%. range be and growth anticipate growth We non-comprehensive the range XXXX, XX% the the gross XX% of be model to anticipate XX% the target

as property GP expansion These and to marketing in sales hired We QX also of reps nearly new and include invest growth initiatives, reps EMEA will international end well competitive investments extend fuel sales expect Americas the and globally advantage. as continue intellectual expenses XXX and including QX. sales operational to in additional beginning litigation and our continued in protect to at in our

during to may the allow with intend corporate corporate our and and our nature they continued to to activities. business obtain proposed implemented. intercompany expansion efficiencies reorganize we our us align financial also after closely international The are more Given operational relationships structure structure and internationally, growth year, the of

subsequent a the incur in expenses As we near-term realize related result, expect benefits in will to and years. the

the a second margin XX% operating We in be half of to expect model for our to XX%. long-term

target the structure points full below approximately corporate as operating legal includes increased X X.X planned and reorganization. margin fees year, be For to long-term we from anticipate our impact to the it

We our per expect million to loss for equity to $X quarter. be in $X investment million SmileDirectClub

release for expect excess a which higher benefits than XXXX rate of unrecognized repeat. XX%, tax primarily benefits. XXXX We tax includes due approximately tax that about be our not XXXX will rate million to tax $X of is to

We in the year expect account for of half our results second our in the power to range be with half half full XX% stronger operating XX% earnings of than the to results. the year second to of first somewhere

of Joe? expenditures the XXXX over to capital to to expect for With in for back We Joe I'll be turn range comments. it $XXX million million. $XXX that, final

Joseph Hogan

year key performance XXXX do regions, Thanks, products. those and and channels year, across a for today. This billion Overall, sales our and our It iTero our $X reach in in to who business, major reach revenue John, we years $X only call strong the billion billion years for only celebrate patient in including nearly joined time. not our dollars. second for XX we great I'm to all and thanks customers X XXst to our was several and first year Align, X milestones, and very achieved Invisalign millionth also first Invisalign the took with pleased

We also with raising than treatment and technology product engaging and strategic ever drivers Invisalign of planning innovative before. more them with our operations, delivered expansion of awareness and new growth and in consumers ways with our in manufacturing innovation, treatment

to I knowledge ahead of reinforce Align our not look importance capabilities extend over back we have consumers globally. that continue transition a the of business willing their huge is has have and and we benefit operations, investments incumbent competitive orthodontics, but amount digital want their with the doctors It to drive spent the and intellectual only to to technology digital drive workflow protect years our our on that developing. beyond, to and XXXX while based XX new As expanding step growth respect patients and patients we a digital The we're is deliver making the I regionalize expand expertise in to that technology fully to And ensure and have and to underlying accumulated and for and services upon companies lead and shortcuts take property. alike. further to doctors from to us Invisalign products opportunity

year. with November, of I to and Summit to to with had their our of Ortho level kickoff their staff, at their team opportunity in our plans connect organization regional our met of meetings hear upcoming members Following travel doctors detailed Align hundreds Invisalign the every and I

nothing of I the spent can surrounding our kickoff excitement suggest competitive my my running unequivocally of know and that demand are Overall, to Americas the level market greater we palpable. say and We're get we While as more role economies in was customers we the interim of in business bring scale and and the profile leader, environment that solid engagement the closer advantage. because and the of time Americas confident to is efficiencies, sustainable know place globally training I opportunity across can markets local the otherwise. adding creates at see company, sales,

issue most a throughout many seen of chance If End This why is orthodontics. they JCO, could you there not to editor's was through as often as the take the had aren't is know, you his Braces?" to forward stronger never ask a it key major may of With to supported December industry entirely believe the acknowledges of it the you when of today We'll aligners clear you, him read week, opened year. guard Clinical Chicago a unfolds. call. and America our in caught one aligner meetings financial of orthodontic for In breakthrough the the issue I but Journal general, off our flip the found being of journals extent editorials, want many clear our the position most as clear next aligners JCO, in Finally, strong He therapy. month that progress you Keim look column, North as I as that, for is again clear it and knew especially more reading in bold, Summits. profiled. and Align recent clear I conferences dedicated and Orthodontics, and he of and some was in see endorsement aligners. editor technology Meeting I aligner I of thank has haven't and his in "The so me Invisalign but I should. he Midwinter well believed Invisalign JCO to the clear year for you flak Bob treatment with the we've the to been updating digital joining take for to on and Bob he

the Now to for I'll questions. over operator the Operator? turn call

Operator

of Goldman with line Our comes Thank you. proceed. Please Jones Robert the Sachs. from [Operator Instructions] first question

Robert Jones

and guidance look worldwide should XQ Joe, to seems like calling Great. relative to stabilize of the year, for that a maybe from for. the guess, you you start looking continue, able could XQ were to you're in On ASPs implied progression certainly to I over the ASPs questions. the saw the for level full at that's we just to expected be and XQ, kind seems in at ASPs. basis, you that Thanks quarter? through the guys on talk of like

So I that, related course did the throughout guess, And and then major what to the progress ASPs how they think you of just pushes are 'XX? XQ? pulls about just as over

Joseph Hogan

okay? Program make in big I had it issue the third ASP the simple, Bob, but kicked this Americas question, off in a with our an concern. I'll that's that quarter We Advantage think

sense basically, we the we what and on that they As adults $XXX we across and that retracted are places. in of matches teens offered EMEA ASPs said, spectrum of point out in normally mixes different that time. After at also the that, in are,

total the that's talk in prepared you we the quarter. for last but exchange hit think we you quarter an mean, want again, have I also -- that about this I to So

the is So have we quarter overall, issue the fourth third only an advantage in didn't the change in quarter. as

Robert Jones

thinking Yes. that I going I expectation slides to think the it's to I be those on, think programs the about levels. is go the still away. guess 'XX, mean, flat in on the that looks just that, question really here obviously, as you're to Joe. you XQ follow I guess, like

move happened So about would what year the things that not in bit as over in of what just 'XX course better a reoccur trying understand ASPs to 'XX. hopefully, of the up we could some little the the think

Joseph Hogan

this. in jump will John Yes, on

John Morici

this Bob, John. is

to we the we growth, our that positive continue And help. contributes Mandibular seeing of mix team on a the internationally. also growth, lot talk couple international growth the overall the which see So are cases to U.S. in about, growth we and strong comprehensive advancement those are side. comprehensive

So for XXXX. we seen we've three, expect what some think those would balance and that's we

Robert Jones

you. Great. just John, a from I And me, then follow-up as guess I have while

you for get ranges it the year, the margins operating the looks guys the calling in think you growth to like into margin about are back for long-term If half. in the outlook

level, control do at much I over have a into back guys trajectory half how that of you the 'XX guess, margins? high around the visibility Just and

John Morici

as expect really move the see start to of manufacturing our It efficiencies ramp as in we the with get treatment up Bob. starts continue that to we ramp Yes, We'll some year. and planning. up China to with we to ramp through continue that

mix us products as We programs standpoint from have and will other help that a also well.

the expectation good the So view how how -- improvement we're we year throughout feel of really margin about and year. the we

Robert Jones

helpful. Thanks. That’s

Operator

you. Thank

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

Elizabeth Anderson

an Hi, results? about out you because reorganization backing XXXX question you ongoing potentially of good talk thinking your thinking the those more of wondering little my on a I guess, afternoon. more was stems about sort if bit wondering part onetime? in of were if basis Are I to those was could or I perhaps expenses. us you

John Morici

as numbers as at highlights continue basis. And expands GAAP a the we looking on goes onetime. report John. through that company as We'll mean, of we'll year some you give to is we internationally, and -- Elizabeth, on a that this This it's is grows can the do but I update. the it's so, change. efficiencies gain

Elizabeth Anderson

Okay. That's that? about bit could any making guess, Americas will a could you the you that little more That talk guys are terms just details particular provide in helpful. helpful. you I And investments on be of into the also sales

Joseph Hogan

done particularly add in short-term that It's XXX in about Joe. segment, overall. giving how the run, us cycle in of the It's almost been We've good marketplace, and here. underpenetrated on really know good Elizabeth. this Americas, we're We play GP importance before to it know we'd since and we Look, we I've still a feel Yes, every really so the we salespeople. returns. investment decided

look don't It's and there. Elizabeth, continuation I'll tell just of our at taking man high force It's sales an advantages thing. a you. a it of So touch anomaly. building as out some the out also of

drive -- -- You this really itself. a touch doesn't It's constant -- have business doctors happen to it. in It's on and to to there's this touch it sales.

really we're have treatment what than So done aware before. much Often, of different our that. doctors is these

a how so business talk train salespeople, Our can line them but to practice. that a product about use we well standpoint integrate the from clinically from it into standpoint they also clinically how but business a you also

adding really So is salespeople important.

Elizabeth Anderson

Thank you.

Operator

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

Jonathan Block

Great. Thanks, guys. Good afternoon.

paranoia to I think to of going move volumes tomorrow. the from margins and is sort ASPs

to So the XX%. long-term you XX% for maybe to goal of margin on side, 'XX, John, margin be mentioned expectations your below op

reorg. in increased Specifically, fees you called out legal bps the from to XXX XXX

band for op then Is goal? I to approach that questions to follow-up. the reorg 'XX So got long-term a your to 'XX? we there. couple XX% a your XXX if to then normalize margin XX% And the bps, were XXX would lower of of And specific all quicker

John Morici

right look to that's at Jon. it, Yes, way the

expenses, So didn't of have XX% range XX% we to we would And we this is XXXX expenses. have we have been think that expenses. long-term these these in the if

Jonathan Block

question, the it. on then I'll And vols. One for short maybe, Joe, answer. take you, Okay.

mean, And don't color. could American if thoughts size Is the First have the Thanks, mandibular business. hard what greater Latin at thoughts any North Just time MAF ortho the you of weakness? I any Invisalign that and year? looking But America American I on on First ortho North a was weakness North more just believing XXXX? mind, contribute before do anything pause to weakness? that and America more this this any a maybe, hold guys. in all

Joseph Hogan

third look, but XXXX Jon, in - year, had the is this year know we for Yes, I us. growth the the blip I a overall, good America's quarter

of have that in fourth orthos kind standpoint, at growth quarter, -- X was third grew we've in year. is years. growth The all-time you we we're Program the then on from Advantage a in an had best the And is year have my again, is become about that at repeated think this this is I we -- standpoint. GP from we opening, material on -- quarter, of X the starting only it's mentioned America's had. third an from And was it the the the second highest those an quarter-over-quarter this to too, ortho happened a profile look we last is average quarter. for over think that that the good and at and was discrepancy. this and of years, the If this actually obviously, the looking XX% sense we've a size high that standpoint contributions overall. Brazil fourth What standpoint, second between -- the uptake a business, from growth percentage

Italy answering overall, Russia how volume the has East, like EMEA, Turkey But but I'm strong the the the We've hope We Spain and back. is strong. has areas Middle The if well. France it. has Go So you of your also expansion with been. success great in came at Jon, been But I see growing U.K. look question. too. in had the EMEA I'd say important you us. with and -- to then in of been also GPs Germany, saw in out

see growth, we that overall. bleed that our great that Overall, We we then region. volume. see about about We've Japan's then you we has the across see So strength good And And again, APAC growth really feel in with been spectrum. phenomenal. in too, seen feel iTero in APAC, strength China. strength.

Jonathan Block

Okay, time guys, your fair enough. for Thanks

Operator

Thank you.

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

Brandon Couillard

afternoon. Thanks. Good

in quantify impact first America us terms John, the of the to that above terms areas it you OpEx, or in expect perhaps times? it of couple guidance, looks was And unusual. in which longer from plan? above your quarter of -- Can you fourth $XX items, brought very accelerated the you Latin or And a is housekeeping quarter? and your quarter. to Just the of like the in then fourth that spend about normalize Could in the you atypical million point cycle

John Morici

Yes.

-- the were that business, thousand And of a then it's specifically a on spend, in quarter in quarter. Latin or it's from the So quarter? fourth the kind mean, guide were about -- growing far said, transition I and talking Joe fourth for in America, cases quarter right as in as end couple first at of fourth of as spend to the the a you compared

Brandon Couillard

guidance. Yes, relative to the quarter fourth your OpEx

John Morici

expenses we've that, added costs And that as a side. saw we're process we the some been that our part as showing have there. said, we legal people Joe fourth XXXX. hires the to some of quarter. those and soon some added and as possible on added and as We us able litigation salespeople, sell Yes. expenses There's into going on -- give of into came But to those we volume and be ground wanted ready as

there those well. So hit some as costs of

Brandon Couillard

year year-over-year? Or would to activity seem that there X% And relative down coming is worldwide back that. it probably to year-over-year. Mix for cushion for for imply XXXX. currency another It guess, promo in perhaps of would be I about ASPs understand is the promotional half ASPs year? sort dynamic. be expectation would But some last your of to 'XX activity built-in be I that would more, consistent is

John Morici

specifically and that promotions nothing regions. looking or as others. come that out, volume new the at uptake there's and that look at drive business We say look to that better We we various additional would changes products make. the I we're promotions at across drive products

seeing ASPs us out taking that growth given the flat see that -- good pleased So to have teens, All for but of where into the ordinary. growth. we and non-comprehensive the see they and on vary internationally, account by And strong expectation region, of we're we positive keeps positive growth a ASPs. nothing were finished

Brandon Couillard

Okay, you. thank

Operator

you. Thank

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

Steve Beuchaw

like I the years past to on -- time hit about substantial the months where potential focus for been something I force here. to the to we benefit. had afternoon, the If Thanks wanted for contribution think adds XXXX. force, Street, from [pit] there you saw back in good thought in X incorporating outlook any sales how sales a those Hi, additions after

that you And modeling benefit have curious. these you us just you are sense big I'm a So any rep in already? in be? might for how from If adds so, can give may those XXXX,

the acceleration about for any let's in quarter, outlook year, anticipation XX%, the or of we doesn't look it first hires. think XX% XX% just those there's benefit it on from As the call volumes, like

John Morici

Yes, seeing kind Steve. kind those to they're of and expect range you This is have of John. hit. add fully start their territories would Yes, the to trained and X that months really months X is salespeople once you

we as we much And So into can in as an half on should that see, as factored adds see given acceleration in we have. second we the adds. our guide those based the see we now

Steve Beuchaw

paranoia agree that to going earlier Okay. with comment the made I the would where And was shift. about then is

something to the I you to response XX just part Is chance competition. out people just this can of your a in that thinking on that any to or not competition in in so, still given last at or minutes about? pick that field relevant it's sign being e-mails material, give so just not there be the in I've gotten the view many wanted, ought thinking And you point on comment the here

Joseph Hogan

to going themselves down seeing announcement -- kind Steve, it's we're they and I Ormco that pace We recent ANSI, in are go saw obviously, Joe. think we XXXX. through as they of

same the you're think too. XM, I of thing out seeing

for is business will face about goes, XXXX before. it. any to This right this time surveys, ramp. to of docs as I areas we and know the product competitive lines read about we're have software this of want we them do these going lines. geographies any the that's that take we in We've diminish -- We whatever. or of But they're whatever. trying representing And We out some key major We I to or our don't the talked far as on key know not to own product that think and our you do some now. we're guys some surveys. there issues don't access thinking or But your going out not easy. there honestly, So

able to of lot have to You hit a cylinders. be on

can to a good that line. sales customers the really strong doctor product force that the have and about make touches You got feel

good is to in can and difficult. And that things that quality. have to you planning on on deliver putting deliver. got you organization treatment have third, high time can those operation consistent treatment And an really planning have things and Secondly, sequence these together and

is a amount we're XXXX, of so pressure. think not competitive factoring what And in huge we

Steve Beuchaw

much. so Thanks got. Okay,

Operator

Thank you.

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

Erin Wright

you you of to China And the couple to international demand you in ones thanks. fundamental dynamics? I and of that's that that of Brazil? seeing broader dynamics in build guess, competitive then any how also trends the surprises could here. Hey, A given the speak speak in market, just terms landscape there traction as also in you're can sort there? out broader the evolving on And macro Brazil,

Joseph Hogan

Yes. Erin, been it's standpoint, Joe. demand our has great. From a China look, there

I as think it's opening, my underpenetrated marketplace. a talked about in I really

our of And so lines. -- for and product demand there's a lot

us So our a making that higher our investments really rate. us local that will a company, those penetrate at to there, we treatment think make we're things allow manufacturing market planning, all

as now a people report that that demand now, we or go where So scene a numb have mean, China right the diminishing are not over look, would I China XXXX. to concerned demand. about international right we have to into don't We say paranoia we're anything

reflects our We feel is that all. of X. I competitor in Tier after we where Angel X say areas us. we follower. of competition areas Angela right being the there's of the this head-to-head and or so in bad. whole size that Angel into It and a -- are Tier see you just feel and competition think we right Erin, marketplace don't would to investments in you about make the channels cities, viable. and service there, a in cities the most how X make lot Align of to as or that a a We have has lot logistics really X reflects They first not China Angel those whole different you you sales years lot the have really really of have far that fast not that don't two we come good The on growth of in I focused either just kind exist at in As focused that now, force, that to our in the or channels have sense Tier work there over is There's them there. really to China throttling build have them on that marketplace. now But credible do. moved

in say, a So clear competitor, and right the supply. number competitor that a of the they we now, don't We world, look largest of consider our sense aligners them I'd in there. at the I'd line always that them down the in in of right say Incredible It's surprises surprise. slowing Brazil. uptake as And the product China. our now Brazil us were

in and of uptick product the saw our the enthusiasm trained area. about They're kind often would there. product X,XXX that see We the I growth what You for Spain to doctors Spain about same talked line. -- It's the and and product our there we've do we the same Latin recently. bring enthusiasm the kind of that in call, of what can of, really excited so sense the

future sales growth aligner. look to presence really about So investments increasing our feel force We product Brazilian our Brazil standpoint we and area. the of major make our there of good in a from and

Erin Wright

types Okay. just game XXXX it could curious prized-driven, a whether this you isn't on kind other arrangements of or Great. something in that planning? is implement or that activity. Is your question for the broader And promotional of I'm promotional that incentives. activity co-marketing necessarily you're other what something plan

Joseph Hogan

of of what where we you we're promotions commercial when XX% so to opening, digital XX%, That's supply at doctors practice, one a of adult to lot and those creativity that as things. demonstrate, brackets. a wires look program program a all, do to you in good Erin, our I one as we goes goes is supervision take there's to one. [Adapt] Invisalign get no have you a to mentioned as when lack first get no really -- our And forces there's back back, in no go, as my to that and can trying

really control practice. You precedent over set you a your have that

with practice. up staff have We'll That's but resulting to You -- different It's issue and a countries have can come geographies, spending in that with last cases of patients. make money in Doctors times get so of don't that emergencies. different or us are third we But into that. XX% just They also at or program put whatever to with like do kind aren't a that too. minutes quarter we That's outside to lower seasonal do to really day at promotions GPs XX just the on ad to that of months. product a we reported do promotional this We continue we areas. obviously are experience have There's aligners Those want get you we a would at that we -- well the say we your patients. work. program offer that have have there. nauseam at understand that all price. promotional communicate over X into X the that that in I'd promotions programs work they is starting that and be able to XX% docs the orthos with to ongoing that to much always offer not a a

good year. on a have the We now what right that promotions throughout offer handle we'll

Operator

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

Ravi Misra

you Thank Hi. question. taking the for

the overhead fall off your of million around that what there, right now China pushes kind the XQ kind the providing. ball terms in commentary And wanted takes maybe Can that guidance guidance once annualized park? and $XX I were of Is ramp? help ramp? margin on are fixed that you and somewhere the million, outlook of COGS the a between that's that's strapped quarter going of gross you the get that's understand So in kind that to into to the into sales the especially what's $XX us XQ

John Morici

John. it's -- operation been Ravi, of it's treatment when Yes. It's really in and to in not Costa date, high. planning we've we a manufacturing Mexico. our think that Rica, But it's that it's been had

it's -- those as -- expanding been we out now productivity possible. are our manufacturing, as and now volume expanding to We as want volume. planning and better get push We China treatment want centers to we've through much

through as quarter. volume treatment the and those to have as as the and comes see as that through volume planning So we some add bit quarter, whether much in more the fourth into -- continues margin a to overhead, of fourth China to come that more you in But productivity the manufacturing. the don't you be impact the able or see

kind we more expect of through quarter-over-quarter of see And so we get productive and as more to this at facilities. improvement these XXXX

Ravi Misra

So by be the a aligner step-up clear in led it to gross margin that's like scanners? going versus sounds really the

John Morici

see kind at of out should Yes, on seeing definitely. volume we it'll clear where and When that we're progress leverage year. you look the globally, through that be expand as the aligners we side,

Ravi Misra

X more Right. maybe And just questions. then

through just experience. Invisalign the of and brand on then orthodontics on the one -- the kind another consultations the on Just

the I Any all? on on seen going rate the the you the curious. impact XX, your a product? second, that about Ormco. just I and consumers down? about So getting of might scans the -- at that? have gotten -- direct-to-consumer some end-user XM the people conversion that there? was how actually kind first of you're visited that, becoming that I've of consult. time be orthodontics store actually gosh, impact the then XX the from XX,XXX And in I'm think And quarters. down. volume to those that into I saying sense manufacturers stepped of XX Are the What's That's talked know about step-down. other limited. think that in, that kind number But Is playing

Joseph Hogan

of in From to orthodontics we take and the again. the again, cases. had overall best our I'll orthodontic tell normal United a Americas you the growth. Joe SDC, States orthodontic Remember, teen. year standpoint, is is When SDC from my about really XX% Ravi, don't orthodontist you on second of standpoint following feeling talk in standpoint they XX% history

by see done teens many out so that of those cases cases of SDC, primarily come GPs. on. and being would are Adults, won't You kind simple going

As XXXX. I in America ever rate we highest our had in North mentioned, GP sales

experience it I affect XXXX. enthralling that competition think we do So way neither dimensions those whether of some in or the business will in us

those as as stores scan the this we're far Invisalign ratios, through and look, the just all -- As things, we still working well.

when X X months XX-mile effect advertising, get then the really itself from out. scanned. but local there's say this We when business, haven't halo we can and that's when and released doctor really XX-mile And to huge any clear we take see out. this And Ravi, standpoint this that to CCAs, do I'd anywhere hiding within also benefits we're not and call or anything. sense, not ironed that We point program in in because in some range. information doctors it from have months ready at to yet, an just going in we think time patients It's we iron we're it just at that that order look a that the X you we found broader overall that, a

talked the when conversion ready a to whole, that we're we'll and from So it also means really rate about, in you -- the okay? what a standpoint, report that broad we're timing what report sense effect, halo to when this,

Operator

you. Thank

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

John Kreger

that that is the it's it really practical transition? get getting Obviously, that to Thanks. sort your the make positive got of I think an to to practices. that about an critical But Thanks. if implications sort your it's practice conversion more a digital expense talk of few call, talk your the their means? times some of implications of And on and about happens. when on Can are bit volumes make Joe, a what just what ortho part? for really customers you view you

Joseph Hogan

brackets, payment deal with. parameters, from which a and wires aligner good is their when you brackets. variable John, about standpoint with that's go all, a you'd that a cost of clear are of Because question. There's extended there's X you versus have product to key right, wires terms Xx and cost with overall first have

to those some play to and So extend in kinds way for get you of have cash that ready just payments. try

simulations, cases, wires look have you're when a practice, It's in, through then emergency in changes show really. to go someone something to day of within that in third the to be. to office. really going workflows. you fewer is consultation our to drive it it you'd but around out not people what chairs which their that put people [Adapt] in them at XX% some talk how completely fix And does. need practice, scrambling more find component, in them need have goes to rooms no We redefines it program would With Because you are more full Secondly, occur with a digital to you a sense demand to that can demand way. and of brackets doctor's time find the Invisalign trying is a to completely

doctors, into And teens how do moving those and do so million that. how we obviously, for spend they doctors, both $XXX year patients them that and attracting we adults a into themselves pipe patients with in prepare to

cost those that complete is a the -- at better how on to and be. And sense to of dimensions. the story it, today episodes. that have what whether Adapt have that Remember, X take through in customers to we'll John, we it's have specifically basically of we'll iPro being do will sense actually at story complete, kind just broad. customers overly to And customers on and we'll clinical of will look here a and X those as we don't those more probably use through that But in point. the do to costs right So we've going that it now of these them offer after how X program, done program we're

our have to we too. So concierge doctors, grabs move service that through patients them

treatment digital XX% components modify operations have Adapt place. them we just play. to more work have of , around this big that those We need in you the or the So to to

John Kreger

One quick Very helpful. one, John.

the what outlook sort described for you us, by you 'XX As of envisioned about that of stores that number is year-end? think

John Morici

that. But a what larger the at a have evaluating go have now. locations, We're and for really change before from we makes want drive as XX we noted Yes, productivity sense really conversion what's scale. to It's us. best stores on we not we material we

John Kreger

Okay.

expect that 'XX? of be materially shouldn't December different So we to by

John Morici

correct. That's

John Kreger

Okay. Thank you.

Operator

you. Thank

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

Steven Valiquette

everybody. Thanks, good afternoon,

I in somewhat growth in was, know I given But Align of back that maybe a guess any you're should spending. for that maybe is sort EPS growth. slower of parallels a the heavy growth couple some really management I investments up had strong back year different in likely what draw XXXX. making that because through XXXX in team years XXXX investments yourself of in just of it, where Or strong earnings XXXX company really growth of you're came another But this cycle year? setting the of So with next to it's that let's throwaway ramp somewhat XXXX. X through similar beyond in for kind XXXX, feel earnings went and call XXXX? of through then we years just XXXX, the out the

Joseph Hogan

Steve, it's Joe.

I first business. we say of I'd think in all, play offense this

for move that the adding million underpenetrated though in preference talk of sit about those talk even for When at market things based a consumer are, we're teeth we on look the me, back you up you of our business, globally. the we this IP, and opens So to talk foundation about defending also incredibly when case digital beyond, and that business. all orthodontic to or about about we starts future even we setting the salespeople, talk clear size aligners growth restructuring XX if

we're had the call of projecting here we that mentioned to guys on growth don't incredibly and XXXX build over continue previously. are right? these please large larger the huge And the haven't even numbers the number So last throwaway you percentages years, X law than we what over a earnings Hopefully, Because top substantial. we year.

-- are -- at be -- in look to foundation us aggressive these is as investments to to have these. lay I young So allow we future. the And that's look a as a in don't at this to take business better

Steven Valiquette

just that mainly is that, the corporate to life follow-up for important driving of stage is the, growth how quick Align all a top guess about it's cycle? Or consistent EPS you mentioned? growth this at still I things which at just line the Yes.

John Morici

is mean, want to It's to We this to be want I both. top line. business. grow drive able John. Steve, we this

that these underpenetrated, vastly technology others able we expect whether addition that model, or increase some in, the we're as as time, as with benefits. and products it's over as to well those of able we comes to that from We see long-term that out, and grow that on improvement sequential we're make laid that we And we're we most mentioned, sales standpoint. same And market. we move start revenue layer of aware stick we to as be off we adding we as time, XXXX. Joe that. -- returning a growth be at to drive forward. investments But see have those But force to over and profitably. and investments, that should very China our sure over be the to shareholders, we're quarter-over-quarter And growth profitability we'll we or to and time, the As pay the is back want this able to volume doing want from

Steven Valiquette

Thanks. Okay, got.

Shirley Stacy

take we’ll Thanks, Steve. Operator, one question please. more

Operator

you. Thank

Please with Our next proceed. question will of SVB-Leerink. line come from the Richard Newitter

Richard Newitter

opportunities other thoughts But would terms are macro you and your you the of and really, China, including companies really really see just nothing the discretionary still growth. things? macro? days some the talking it's guys suggest your us way I headlines at taking what seeing China Clearly, there about consumer about give can you shown Joe, in -- was region, realm. any wondering know so still the some question. you're we've there's level there's the -- Hi. Thanks rate Can would for in slowdown But ground little any bit I you from kind are investing, and of the imagine in the early that growth in seen talk a that just haven't slow I what in enormous, -- slowdown. are you

Joseph Hogan

it now. we're opportunity the see They with largest like Richard, on -- States. And really later. going mean, - this sense under-penetration, strong mentioned the fluidity. insurance look country We country the obviously, that good in I the that moving When making I deal It's the was and with or policy able China. about sooner business having feel issues closer Look, have these we throughout that China. to hopefully, and investment. I there they'll XXXX United we're we a is events. come before, I China we huge. a in a of there, it the talked trade global to Chinese good in me second dynamics being that saw right I and mean, the at The But world with is is trade of operate countries, lot I too. a makes growth also the in are in between up investments two a manufacturing mean, commitment.

we what other are reporting. So haven't companies right now, again, seen

of penetration that the two. not about difference talking we're probably think we're is the ever. the variable saying piece I We're maybe recession-proof between

that's a looking growth we're rates been good But in experiencing, and ridiculous position for think right what XXXX what the now we've to a we've right take. now, seen in China. I

Richard Newitter

outlook? maybe launch right of if off mandibular bat? earlier, are the more about mentioned Should that think XXXX? in ground of that the could Is kind what's you the just contemplated? just -- how contribution And maybe it gradual hitting cadence? And What's contemplated Or advancement. you in running of thinking you a the we Excellent.

Joseph Hogan

approved John, MAF of specific high the level. in But it. I'll November level was take take XXXX. of the remember, just

you that it. It's see, the X and time -- we It As is think X can can To uptick a proving move phenomenal your it's normal the expect mandible in it. forward something teeth. big to your which straighten you take in that it's is. going our States, conservative -- sense are will that sense revolutionary, to get of product. anyway. I do, and used -- cases It obviously, have or their -- really build bone. orthos what they're doctors and United those incredible. It's just when But in And

States has United MAF [indiscernible] been a Now while, for too. outside the

through shorter, and making What's before. a you updates the wings that So cases teeth have about than XX,XXX we make it. stronger from talked work, are your have, I engineering several how arrange is also. we sure we really aligners MAF are lot the team on to [Jelco] it think, too, gone When interesting, we've

approved months, the improved we've product the think United So We significantly this over XX in last is the States. too.

around great MAF find, just too, Now we the is Teen. effect and halo

If MAF, more you Teen. start to you do do more

the to forward updates and looking you that. we'll And again, through so year. new give days we as it's go in we're the But United States,

John Morici

and our think And helps we our when Like we case, teen flat ASPs is complicated. Joe look more a one growth it's full us. and at it at ASPs, look back it's gives a more that we positive because mix case, as and is a it's favorable forecast about us. move and this volume, This so us favorable teen said, to that for

Shirley Stacy

Relations. on us today. any to at questions, a look joining catching Have for please everyone, Investor you call you, the you And thank Well, We with great forward day. conferences. have subsequent if contact up Okay.

Align Technology (ALGN) 29 Jan 192018 Q4 Earnings call transcript