ALGN - Earnings call transcript Q1 2022

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Operator

Greetings. Welcome to the Align Q1 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note this conference is being recorded. the Technology. to turn Stacy host, now Align with will conference your over Shirley I

begin may You

Shirley Stacy

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

John approximately our via being today’s X:XX investor.aligntech.com. XXX-XXX-XXXX will call on Today’s website with same be access for quarter approximately Hogan, CEO, XXX-XXX-XXXX domestic issued one Joining using the me To be available audio X:XX PM, replay A is will Morici, telephone dial dial results month. available archived is replay We today for CFO. Time, access XXth. financial at today is code Eastern webcast PM, May which telephone President should by and conference Joe Time, code. on website XXXXXX. the through and call International and access GlobeNewswire, callers XXXX should our first on Eastern callers

and may Exchange assumes periodic our the information including sec.gov. and that are will and the in forward-looking with today statements most our risks to provided update Commission obligation at only discussed no Align’s vary results website Form available statement. reminder, recent in detail reports more product Actual described These and significantly uncertainties and about Securities a events involve statements As outlook. and and statements are predictions forward-looking on include expressly -- future our in filed Align forward-looking any

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

Joe Hogan

On today, provide of John Services view segments; discuss on results the year. more afternoon our call our Shirley. financial provide for Clear performance the of overview our Aligners. QX will performance the and thanks operating remainder Systems our I'll and and an our and joining us. of Thanks Good and two detail for

summarize region every and we Europe. and key be weaker continued its reflect in a Zero military under first Ukraine points economic policy; Following I'll consumer our chain operating the especially the and factors; and in three the globally results quarter waves environment confidence supply waning and come to back and key Overall, that, primarily impact of and increasing China, by call a the restrictions environment proved believe to a with questions. few conflict COVID driven tougher-than-expected open COVID-XX pressures in across fallout lockdowns and disruptions; and inflationary their the

were United compared In million with our a business growth unfavorable X.X% year-over-year. approximately $XXX.X the outside XXXX our rates half and total revenues margins, of $XXX QX to revenues addition, rate negatively States, of EPS. QX XXXX Notwithstanding exchange occurring impacting headwinds, these XX% with foreign year-over-year of revenues, up million

record quarter were down consecutive operating was XX.X%. but coming XXXX was QX, million margin aforementioned quarter. sales and capital and from reflect volumes from Sequential lower headwinds services results operating XX.X% Systems and QX Our year-over-year, scanner our stronger equipment our off sequentially QX growth and revenues sequential as Services revenue. XX% $XXX income of a historically seasonality up In sixth is and primarily

performed training grew sequentially. other grew and and as years young well X.X%. XXX,XXX segment, Invisalign slightly across at up include and dental and minus regions In and retention both six QX, all and doctor-prescribed was strong would old as growth teen the teen sequentially For started with treatment consumables Aligners, up for sequentially year-over-year, QX non-case revenue QX kids revenues and clinical First Clear regions. were from Aligner across reflecting year-over-year revenues X% down products, products Invisalign X.X% education year-over-year. were year-over-year

monthly Plan, Subscription ramp DSP, like Tai, about the growth. Barbara, the in-house States and of designed and Invisalign our California, everything nicely, having doctors, launched is fit Doctor 'we shifted and driving strong having of We workflow. DSP. and and continues Sandra a De have retainers the a and experienced Ferris year low-stage we'll or very it revenue program, ourselves.' fits model was or feedback the year business aligners. from precision very DSP patients.' to program around the in Canada, Dr. last subscription using are we're who saying markets to program the material, pilot specifics Now versus and are first seeing, about the Align United in Santa Americas. Here quarter to savings just uptake product my Dr. for Our retention 'This with able excited printing a starting to the turn in systems really We're and to regularly expand maintain in other who into are pass doctors segment few Vancouver, not things our this model the the results, Canada, it I'm well. let's

down QX, reflecting Invisalign down Americas were the volumes primarily volumes For case were from case year-over-year. impact basis, sequential On a X.X%, X.X% COVID-XX waves.

weakening and more in ortho demand trends first consolidates across XXX X,XXX the States as that America Aligner North wires increased for The and quarter showed cancellations. latest practices, gauge and the in into both patient QX Canada, beginning X,XXX and in XXXX later continue in United collect data staffing teens covering traffic consumers and and the than Latin orthodontists across underlying tool and from and closures analysis as causing and QX brackets about practice patient and from in experience shortages decreased customer deployment products. practice adult locations data Clear well America, First

beginning share makes brand, teen doctors. planning of teen to nationwide XX% adoption XX% were The partnership the with brackets support from segment the starts, and accelerate Clear Invisalign season, with utilization access dedicated this benefits, XXXX, month, has and down Teen In of Dental Earlier to in excited which year-over-year. case opportunity predictable to in network DSO non-DSO and States the largest Corp This DSO buy treatment program. annual starts its this than provides treatment we practice much program their more the doctors. the Corp, case extend case its Doctors. teams. for million learning America. X.X% simple the grew help ortho It orthodontic program Clear orthodontists wires practices new down X.X% an Aligner in XXX timing buy and grow dental Dental advance, doctors subscription in the doctors also visits channel, like summer of Invisalign orthodontics, opportunities, potential enables with also of includes a we're month, the subscription fastest-growing Aligners strategic through and in continue practice new and coincides course enhanced of North year-over-year than market Canadians X to today, approximately to dental launched QX starts subscription brand DSO announced Smile of to The teen acceleration and network Canada's new to teen with led to ortho of up patient program billing the practices incremental teen and partnering with were United less offering treatment across the nearly collaboration we Invisalign they practices. exclusive plans Heartland with the New from commitment faster program largest Invisalign of Invisalign offering teen requires practices by Invisalign the help volume a massive system. way Canada in unlock Also the for development with benefits packs the with

of X% On Europe down restrictions volumes in lockdowns our international For in impact a reflecting fallout X.X%, year-over-year. described the volumes business, especially up and China international earlier, the Invisalign QX case the the basis, sequential in were military Ukraine. case headwinds conflict across from primarily COVID-XX were

by For core growth EMEA, markets Turkey was market. in and primarily year-over-year with and with our Invisalign by and along The expansion Invisalign doc, from channel, teen EMEA led in the driven core the volume increased orthodontist in especially growth by Germany QX Italy emissions, led QX case the case EMEA. markets

the the our Invisalign increasing launched campaign give help we critical teen growth to demand focused part educating portfolio over of our we of driving quarter, addition teens directed the combined treatment plan, Express first teen in wider ever our the campaign by general about teens in decision teen peer consumer in launched recently, system, and Invisalign parent with influence as traditional Go latest for brackets, During parent mouth. Invisalign and the benefits on More dentists. of Go EMEA the wires word to

into treatment comprehensive First treat as is mild XXXX dentists to launched integrate dental a alignment offering, for to tooth malocclusions, moderate the Go EMEA in and XX-stage to general system in care. restorative portfolio designed aligner Invisalign

in flexibility across Wroclaw, Polar in quarter, our Additionally, doctor to our supporting manufacturing live customers value our on building facility timeliness this region. EMEA increasing go of European remains track and the

case QX. and the Taiwan Go down with orthodontic was in despite and we are Invisalign in their month, submissions new Invisalign malocclusion. Japan Invisalign emerging Aligners scope the strengthened for a strong Clear complex Clear submissions that year-over-year and to led options more China. moderate Adult better increased up our expanding markets for to We performed On a from cases Invisalign in types primarily Standard technology affordable product GP serve and Invisalign lockdowns reflecting and with product larger basis. on X.X% Standard APAC through new expanded Alternatively, with Adult significant Korea from and in for market channel, offerings in APAC two in designed with APAC proven increased the clinical volumes Invisalign and year-over-year. Thailand private on teen of and to Invisalign Turning for China. specific a cases. were market the channel. Aligner dentist a portfolio With range built surges and X.X%, basis, sequential headwinds, COVID-XX more India growth wider malocclusion that impact a cases this the the well. like new had products The Earlier doctors Invisalign patients Aligners Clear and

advancement feature. More design contribute efficiency, today product software. and a announced These II the treatment clinically simultaneous dentistry that new new by Each services remain for Aligners planning II system overlap Smile software, seated comfort with feedback Invisalign properly experience enhanced real-time customers, doctor-patient treatment that App, integrates patients update, modification better of providing with malocclusions Invisalign is proven a IPP, as world digital precision new Plan and connects Proprietary will access combination Invisalign consumers. feature with we've enhance wins and scale preteen users, Digital Invisalign the address Invisalign address to Aligner CDCT and to mandibular seamless During or for with Class Practice that of these The workflow innovations designed Invisalign designed and enhancement revolutionize provide to and help introduced flexibility alignment. a Personalized innovations from all and quality, treatment and are cone the These increased the treatment integration digital Clear restorative only planning doctors, more we teen experience. planning ClinCheck greater the and ensure plan Class the innovations orthodontics durability new beam Using Align the innovations that Invisalign and system to with for Live advancement a platform. growing for doctors labs, include Architect correction the the quarter mandibular original ClinCheck and Invisalign patients. as great recently, we to effectively computed systems and capabilities. engaged provide well in and enhanced in tomography,

Our top about opportunity teen, a successful the we massive APAC to transform Invis Invisalign with parent Invisalign the QX, interest we Invisalign Globally, consumer segments. adult, the EMEA treatment focus doctors' demand ultimately In across system and XXX built Is and campaign educating to driving Multimedia In and YouTube delivered on million with that on representing [ph] in capitalizing increased of million -- on consumers market driving consumer awareness marketing offices year-over-year and Americas, smiles. and adults XX.X to strong our billion young as we a platforms delivered, impression social XX and a brand visits websites, increase. amplify to US, the our Snapchat, Instagram, year-over-year the X.X volume XXX% TikTok, across such XX% impressions over campaigns Invisalign continue teens. increase with to over with and awareness

our they Invisalign these how shape Charli growing of campaigns Leana young collaborations Lana leverage influencers Condor influers Le, Josh welcome Key, with campaigns. treatment transformation Gold Invisalign self-confidence. with can Olympic we the creators adults' our media globally chose Further, featured Lee personal their Condor, smiles are Richards. and and including and Green powerful Thing like their in Josh Invisalign largest business Suni Scarlett Devon We platforms, and across APAC, smiles EMEA of the integrated to region, adult our young Invis smile excited with influencers. across Medalist, to Smile treatment Lana the we EMEA, chosen digital Invisalign Our which Is Each with top Michael highlights their experience Aligners. even and Americas, To transform Richards, have TikTok, collaboration who expanding squad media, media our are our and campaign, expanded hold with Meta, Estevez and be [indiscernible], a why and social treatment. continue YouTube, some influencers Powerful including with successful we new shared and upon D'Amelio, Invisalign creators to media for and investments roster accelerated In with Snapchat the

the teams of special unique of reach to UK to the awareness in pilot a launched create treatment. with benefits campaigns Invisalign we Additionally,

X.X delivered unique billion visitors campaigns million impressions. year-over-year to representing with our X.X website, consumer more over increase media Our XXX%

to including in region, across a in increase resulting our in in expand unique impressions. XXX% the -- continue year-over-year a XXX% excluding We advertising consumer investment year-over-year visitors increase China, and APAC

to by YouTube. media response social built Japan, our Meta, strong campaigns a into such via upon platforms from continue evidenced TikTok, to increase successful to expanding continue see In in expanding as XXX% unique and strengthen consumer our we consumers our our in visitors by We and Australia site. Twitter reach investments by as

the down headwinds Services lower our previous revenues scanner services XX.X% were and from seasonality. For primarily shipments XX.X% mentioned strong and sequentially, capital reflecting year-over-year, Systems business, QX volumes equipment and and up reflecting

the without Element strong Total adoption submitted intraoral of NIRI, to XX%, cavities into above A is that last detection During the call last Interproximal or scans iTero in increased in an worldwide last saw imaging year year. continued radiation. offices -- increased monitoring for digital system like XD Caries up QX we which without quarter, in technology and within case we Invisalign gingiva of number the near infrared submissions International indicator adoption digital submissions. innovative dental launched oral XX.X% from Lesions that past year. of a the features of age we harmful used case QX from XX.X% scan for scans start QX intraoral Invisalign to Invisalign case to XX% in technology digital

year. restorative scan compared were XX.X% scans of formed orthodontic For submitted using over intraoral an million of Cumulatively, million the and in XX% cases have Americas, QX Invisalign scans to scanners. digital with been last over XX.X XX.X iTero

best and beautiful award During iTero DrBicuspid.com the imaging quarter, the Element from solutions XD lives Plus patients' product to or award. The journey transform a help doctors smile. improving reflects commitment by the new innovative to healthy, that Cuspies won our CAD/CAM develop

and that the in which can treatment scanner We acceptance. system recommended Element provides Townie applications are pleased and enhanced Plus cutting-edge to recognize proud visualizations that imaging town, practice and practices the drive Element share Alvadis received imaging XD in dental technology, iTero with and Awards, Choice that chair-side [ph] ortho iTero XXXX seeks to top the gear We're services products dentistry. growth

the increased to in iTero dental CAD/CAM is services scanner as growth well integrate exocad software base solutions as and driving labs Continued revenues workflows the practices. dental that installed

digital CAD/CAM dental exocad QX broaden platform Aligned scanner services, products offerings revenues guided digital surgery integrated dentistry, solutions in include workflows. extend and fully helping implantology, restorative are and are and which our and included and smile interdisciplinary and Our services design towards

exocad evolution shape opportunities facilitate a platform continuing focus road treatment since the Align Align working ahead the more the dental comprehensive to family. continue digital planning after both integration technology restorative and about to into Digital dental together, of of and to goal anniversary in expertise the digital dentist and X key April by dentistry, lead and of is joined needs our and together, Align to development we exocad to addressing smiles changing second continue years dentistry. benefits excited ever we As marked we're And platform Digital transforming the restorative the dentistry. and ortho first. of every Two doctor, make strengthen and pillar of orthodontics and than Align, all in to as our the map restorative orthodontics partners complement customers, we orthodontics centers lives. industry many that on with users benefits We're technician to restorative ensure bringing welcoming labs, that stakeholders every are

Design China. other During the release, experienced the called in the streamline the Smile to restoration. exocad community quarter, open like dental guided online dental the consultation discover wizard team the exocad Innovative its in in deepen communication Attendees how workflows in from new participated South show growing XXXX trends China, journey the exocad's Galway firsthand X.X to Creator. China solutions showcasing easy to have with plus relationships treatment show The market their final Dental software Guangzhou, CAD both Smile Dental and program newest software allowed in emerging programs

to Finally, headquarters business. region this Korean many years, help this infrastructure quarter, been opening over a is in With location a that, has the exocad Seoul, in growing to South Korea, now our a provides turn high-tech number for exocad robust with working call of strategic region. John. and new facilitate manufacturers key of the which I'll relationships its

John Morici

Joe. Thanks

the Now, the million, $XXX.X corresponding and a first down quarter from results. ago. for quarter for were prior revenues financial year X.X% up our Total the quarter X.X% QX from

For to In reflecting ASPs were reflecting in year-over-year year-over-year. volumes, million were down up X.X% sequentially volume up offset due QX case X.X% Clear down Aligners, X.X% and ASPs, $XXX.X higher case revenues X.X% revenues. higher Invisalign ASPs QX, Invisalign lower higher partially of sequentially by and non-case

X,XXX volume sequentially. X. QX over decreased which decreased first-time doctors In patients year-over-year sequentially. and XX,XXX QX adult volume were shipped comprehensive addition, decreased and and we year-over-year non-comprehensive X% sequentially. X.X% X.X% of QX year-over-year X% In X% X.X% exchange X.X% exchange decreased increased million by Clear QX, younger million impacted to Aligners decreased approximately a Invisalign worldwide, impacted or foreign year-over-year or $X.X or X% X.X and year-over-year Aligner were Aligner teens approximately revenues $XX patients of foreign unfavorably sequentially. Clear points were increased unfavorably sequentially. On decreased points. approximately by basis, revenues of Clear X.X approximately customers.

non-comprehensive reflect sequentially Aligner basis, additional comprehensive ASPs on exchange. foreign a Invisalign higher unfavorable impacted per year-over-year. Invisalign recognized and higher by by on million QX sheet and fees, XX.X% additional non-comprehensive higher increased or or ASPs Aligner ASPs basis, partially partially were Clear discounts, basis, per processing additional sequential favorably charged sequentially order by exchange. foreign On exchange. foreign the million offset deferred On be fees offset Invisalign On ASPs as most discounts, increased order comprehensive Invisalign year-over-year ASPs QX, and non-comprehensive Clear lower partially revenues per and comprehensive sequentially exchange. and partially are by fees and per year-over-year. On foreign unfavorable shipped. lenders order a unfavorable aligners, order year-over-year balance sequential ASPs aligners by For shipments, a offset lines, processing additional will processing the lower increased processing offset Invisalign year-over-year reflect basis, fees, reflect and a $XXX.X $XX X%

to increased year-over-year volume. scanner following revenue with larger sequentially The Services installed strong quarter from can were be first the the slightly volume Systems base up revenue described and a The year-over-year. to seasonality attributed business, higher scanner with lower decrease down and earlier. the our million, services XX.X% as Our as attributed increase capital can sequentially XX.X% equipment QX for headwinds well consistent be coupled and in $XXX.X

or recognized in -- XX.X% increase purchase, X.X% million of the deferred balance deferral with sales due $XX.X service up over or Systems the period. the million primarily included which sequentially and our Services be scanner service was with scanner will the revenue revenues ratably and the $XXX.X year-over-year, Our up and sheet on to

Moving gross margin. on to

to stock-based volume offset points X.X lower gross the X sequentially first and due the sequentially service X.X foreign margin and basis additional higher partially $XX.X million, Year-over-year, in inefficiencies, offset to basis, to year-over-year. $XXX.X quarter, partially reasons quarter by and operating Clear points expense higher XX.X% First and and On X.X up gross marketing year-over-year. compensation for of due points higher ASPs, year-over-year due of for up QX margin a ASPs. million, first quarter overall acquired gross approximately partially costs. down points and points points freight million. higher operating offset expenses margin margin approximately due expenses to points aligner down overall volume X.X year-over-year sequentially XX.X% of gross Clear certain expenses compensation, increased margin Services manufacturing sequentially year-over-year to and points offset intangibles XX.X% operating up first X.X higher investment lower Aligner business up due gross costs, gross stock-based lower R&D by acquisitions and X.X increased On a for described exchange. by $XX.X costs. On $XXX.X were X.X% down reflecting Aligner growth. was acquisitions, mix Overall ASPs, sequentially commensurate Services and the were was activities on mix due year-over-year by gross impacted unfavorably point and acquisition ASPs. was XX.X%, a by partially the Systems million, costs. and volume X.X margin and down basis, down higher Operating and was X.X basis, additional above. non-GAAP XX.X%, X.X% freight up down related was sequentially aligner amortization year-over-year. amortization excluding points to investments to and sales revenues Systems XX.X%, was related quarter intangibles was down higher higher were headcount margin excluding to sequentially freight by sequential and a non-GAAP expenses of with and by our mix of X.X continued increased down

operating $XXX.X margin resulted margin, X.X margin of lower primarily sequentially down loss points by XX.X%, down and to first X of operating investments quarter foreign XXXX decrease $X. rate in net of non-GAAP in million, and for as X.X down technology unfavorable teams of certain the excludes income operating the points attributed was arbitration XX%, intangibles first On million award is gross effective X.X in year-over-year. amortization was of quarter $XX.X other an and down Our million points quarter million. related year-over-year compensation, and points included to year-over-year. XX.X% income first quarter for acquisition down the a to acquisitions year-over-year go-to-market which the $XX.X well first XX.X% QX X.X tax stock-based as basis, from the by the operating and of down and costs, was exchange. the margin sequentially The and impact and XX.X% Interest expense SEC a million. $XX.X gain The in quarter first of quarter for GAAP in fourth compared prior year. sequentially our

non-GAAP quarter XX.X% fourth to in of in quarter the tax the Our first first compared in XX.X% XX.X% rate the was prior year. quarter and the effective

related first an of to were and tax tax and effective for non-GAAP benefits GAAP rates, The limitations claims last of quarter due timely effective higher expiration recorded primarily out-of-period tax statutes fourth rates to adjustment asserting quarter. quarter than

First diluted to quarter $X.XX, per year. income was prior down $X.XX down and share compared the $X.XX sequentially net

sequential $X.XX down was impacted EPS share $X.XX the foreign $X.XX quarter, by non-GAAP and exchange. income a per unfavorably On and net Our sequentially a year-over-year basis, on to down basis on was $X.XX $X.XX due year-over-year. a basis first for diluted

the on balance sheet. Moving to

sequentially was million the down held QX $XXX.X million in our billion As balance, US was cash and million equivalents, billion, held receivable $XXX.X $XXX year-over-year. marketable and and $X.X short-term and $XX.X million, cash, our securities of March $XXX.X accounts approximately balance $X.X by entities. international XXXX, sequentially. up X% down Of was million XXst, long-term were

to of days approximately the outstanding flow, common up from $XX Free overall was negative as $XXX.XX repurchased continued to approximately of cash aligner days, and last our primarily share. capacity days expenditures, days expenditures was up we for amounted Cash flow million, year. February, In $XX.X quarter an XX capital price to manufacturing quarter less stock XXX,XXX increase and $XX.X Capital as operations the $XX.X of repurchases were compared through investment defined sequentially cash XX first our related open average operations, nine flow from at first sales approximately shares Our million QX million. million. per for facilities. market to

approximately remaining repurchase have repurchase program. May $X for under XXXX, million We $XXX our XXth, billion available

of during our COVID our range practice surges fiscal disruption no some nor recovery year. This time, meaningful chain XXXX were outlook XX% to XXXX assumed earnings Omicron throughout no seeing began significant we with described wave, supply after COVID in As long-term year revenue with relaxing. line we were our growth new QX growth call, XX%. material ease provided revenue At restrictions issues current headwinds the and that to as revenue

However, later the pressures in conflict. our China on Russia-Ukraine the quarter, inflationary consumer business weaker occurred by driven lockdowns, unfavorable impacts confidence, and

return momentum the For April, seen not persist. have previously we headwinds as mentioned

progress toward long-term XX% leadership ability to execute Now turning make and huge our to same increased include full markets. year we're XX% industry and the have of model headwinds revenue XXXX. We conflict waves lockdowns, weaker remain confident in the and to and uncertainty increased all the underpenetrated consumer technology the which market, growth. Russia-Ukraine our At inflation confidence, COVID China pressures experiencing, across significant our time,

be increasingly adjust as headwinds. constrained will sales to these practices year equipment capital anticipate the also throughout We

increasing for an guidance the environment, and visibility year. unpredictable less not providing operating Given revenue are we

repurchase assuming no beyond during operations combination an to stock R&D In stock However, marketing, above $XXX material up our through of market circumstances while million repurchase and operating XXXX repurchases making or accelerated to deliver agreement. either a our additional sales, for of QX margin open disruptions or addition, XXXX, is in to expect investments strategic control, goal our common we XX%, GAAP fiscal

our manufacturing relate Capital building For digital facilities exceed part $XXX strategy expenditures an as a which in the XXXX, customers. primarily we capacity improvements expect our includes second our to serving of construction capital investments expenditures well This expansion. million. doctors international as to in is and to to to in fabrication closer investment aligner in to operational Wroclaw, expected of as quarter bring our XXXX begin facility Poland, support

local continue and for and Joe? back investments manufacturing, research comments. in operations to I'll expand to the and With Joe to turn marketing treatment planning, regional and that, we development, over it intend we meet anticipated As final growing, sales our actual demands.

Joe Hogan

Thanks, John.

Operator

Hogan, Joe me. are you Excuse there?

Shirley Stacy

operator. Yes,

Joe Hogan

John. again. Thanks, run this by I'll

XXX Okay. That results a remain consumer was front expected. market of less benefit to my With share created that more other and and advantage as but over committed the million us as take comprehensive people excited have XX is realizing who the Russia-Ukraine quarter as challenging potential fault. large COVID evolution company ever. the Over dentistry. is know from year can weaker headwinds, million the of positioned that to orthodontics improves We XX% lockdowns, environment than to than conflict globally well trends digital first reflect each as our opportunity of a we smile, pressures growth starts us and in return. inflationary enormous lead as environment and our beautiful of with No the healthy confidence,

on investments we managing of and We will in XX%. the of near-term to strategic uncertainty, XX% execution long-term model to in focus while continue to drivers, will headwinds and account the confident growth revenue for our the growth our remain

families thoughts all our personal with to especially everyone who conflict to tragedy the impacted and their open call loved ones. I questions, we in with are for the to to the those operations Russia. concerned involved in undoubtedly and military It's people our out and go human connections address want Before Ukraine a and

patients. Our security primary concern families, their safety and the our doctors, their our and employees staff remains and of

do with We to have conflict. this nothing

is doctor-prescribed device their commercial are products, providing Russia discontinued critical the not to orthodontic that global to patients. medical to continuity treatment. doctors continuity care of We care a As patients in activities of essential provider and in of

been process, only international in sanctions that on we are our ethical imposed. the responsibility treatment. have to values patients focus Our of and adhering also In the

property is of of humbling intellectual A to the Germany; our Armenia, Downstate, the our see And we're respond Toronto, up have stages Russian support those employees center where to covet Russia our hosted begun relocate. kindness with crisis. to R&D choose who humanitarian including and various Austin, Madrid, in working are set transitioned time, on of Texas. as Prior company conflict, to the outpouring it's transitioning to of outside number work and ground urban needs in expanding the we've infrastructure, we the in their and teams the Russia. Canada; support already the employees have IT throughout on At Spain; in of the R&D an prudently team Our to tremendous same families pieces.

where also up at contributing grateful the of set actions. clothing, colleagues for our into has and their care. employees initiative proud food, our donation members human team Many tremendous are refugees facilities And and centers we're homes. Polish supplies, are are by their Ukrainian Our taking

that vital supplies. Align soon, can of Align shelter humanitarian we only the consumers facing to the hope the of our focused and the addition donating continue will will will relief beyond the thereafter, In that safety the of customers, factors stay Ukraine things Xrd founding are will good, control, medicines patients will on pandemic efforts, these providing to efforts initiatives. Invisalign prioritize many of employees, In XXth impact through abate. And the so and to long employees' in our anniversary We for and is economic But $XXX,XXX system. end of closing, conflict strategic health that lessen organizations Technology. and food, shortly marked and support ongoing the and April customers

I've adjustments no our in with these needed. than anywhere we at in front Over an time Invisalign's my operating customization innovation macroeconomic mass any end we've a are make real transformed as And industry Align for or digital from other. unique of the company in the ever the passion fluctuations appliances business faster orthodontic business evolution monitored felt inventory we've with in distribution digital market. platform. to Consequence environment We've when evolved to our past the incredible the experienced years, leading of from XX unlike at created trends career.

on over employees and Silicon a of and aligners the Our vision using benefit Valley And a methods. success more purpose procedures. Today, the with Align and size million can in XXX,XXX than digital people XX you from of than gained results. printing XD million and are risked happen largest our world, analog to opportunities It's around operation our Thanks old learnings world world, result only XX,XXX producing than huge. that countries. that Our everything. each nearly customers XXX who from in customized on team is employees a XX global digital doctors orthodontic and the and million It iTero took Invisalign patients a There of chance never orthodontics. scans can day based is more labs the address XXX million support more doctor start-up in X the could

evolution phases As years, in lead market. now next time transforming orthodontic you still to the It's sharing XX outcomes the to your for we're Operator? we deliver the it for continue to orthodontic the years early hard after over orthodontics and for have operator market milestones experiences digitized doctors masses. forward look that to treatment that and dentistry, We capability, digital great patients world. I'll treatment to over turn questions. it has broadly opened around today. XX the the of Thank the and to up we believe treatment as more of a

Operator

question Sandler. Instructions] of with this At be conducting The a time from you. we will is Jason question-and-answer line Thank first Piper Bednar [Operator session. the

may proceed. You

Joe Hogan

Hi, Jason.

Jason Bednar

Hey, taking questions. afternoon, there. good everyone. Thanks Hey, for the

of we is down, your to this for sequential So keeping a Joe, mean, you pretty typical confidence you. really the wind how guess, start John these from trying to are there in just and The pressures get guess, out through what's business. and called you manage with consumer a business? your shifting macro see the the you. or the impacting disposal I tools be on I sense settle abruptly guess the I expectations have pressures, of just I we head would down, at moderating to growth waiting environment to should items matter just inflationary

Joe Hogan

revenues I'd gives we question. our advantage sense good of being scope It outside. global about Jason, are. say having opportunities business, to where talked good in a us Yes, just take the XX%

And I years an And last great the so the feel standpoint. from we've sense. development over really good in about that international three company made

a have also great portfolio. We

saw to there. We first brings. out We end in really so at still as some quarter of digital talked the when you the and look about demand some When mean doctors at But reluctance I the that at have scanners the we scanners. you sense underpenetrated what iTero dentistry that iTero are future really still look commit is it. to

areas, and that in different see the it expansion what right places of pushing pushing and you so we're too. our doing the and in And Invisalign technology also

levers So I that can we've a headwinds And have constrained respect pull, the and our seen. see needed of by love I feel like we these that we we'll business lot position. great with. but future. those kind sure track obviously, make we on I to make portfolio. I We'll way our love this a our Jason. Look, adjustments manage this, stays of through are

Jason Bednar

driving have But know -- topline opportunity I for talking for seen one side, with the select time. off thinking guess And Just we've That’s Okay. think stepping it comfortable longer for then sacrifice right of that, margins? towards to I for do when to some that spending. talked you're other, again, wouldn't or expect periods the XX% about I balance helpful. model maybe you're here operating you've is the term you're But XX% level about long-term gas the today to can and truly the margin that the not the plus to shifting with the you here? quite for over you that you business. that growth? margin – that business are still about some given

Joe Hogan

I mean And not that. to it of in that how that -- did see been current well operating year top has think managed bandwidth think, we within that is squarely can managed on I piece. that going honestly, well very the we've I over think situation we've well, you Jason, I this and sense profit that's change the of years. last

Jason Bednar

All right. guys. Thanks

Joe Hogan

you, Jason. Thank

Operator

Thank Baird. next line question you. with the Jeff The is Johnson from of

proceed. may You

Joe Hogan

Jeff. Hi

Jeff Johnson

you pick well end slowing not going let of the said to protect here I to guys, your a in of last are in direct that me put me I the just out So years kind short on be over it. that. on the Hey that's you. of Thank how guess, point. kind if managed mean, accelerator? OpEx I I you've control, Joe, you down run. cyclically up Do accomplish? gas mean, pedal do margins that just there's are whole you? So, lot that's the you let markets say

Just near term, the given this intermediate -- what's outlook uncertainty? macro guess, term your some in of kind to OpEx of near I

Joe Hogan

-- adjust just won't Jeff, we question. latter the the hurt your and know know it's it of to John take you I more accelerator. the And off It's where business.

as areas are with margins We'll crisis return. percent trade-off current GAAP that and will : those op going there in that's sure basis, in the But much but this see investments investments, XX-plus yes, the where preserve us have. to on deliver it we help short-term expect, we make invest into invest talked will the based different we several be that we percent when XX-plus that continue a We of -- on in a volume innovation And about too. areas, But we'll we that can margin. lean can. aren't obviously as to that

Jeff Johnson

would home, gauge through gauge But at stimulus the through adults point the data, sense sitting Yes, on I'm hearing pockets set, in April, that is sitting sitting year-to-date. you just March. it. me. data is the I John. Thanks the going ortho then with a whole last effect adult home not I've the guess, I X% just which make but data, got this don't worse the data that question, seen talked and follow-up that. get starts And about year case Zoom Everybody down teen checks, in than on all to all at what

at teen still Clear business Ukraine get And that? What's tough of adults real So, because the that that core impacted all what's doing markets nothing in were is North coming than America sitting that home to Aligners? just all comps the and by had you've of those Russia, part year just and China But were better makes in than tenor they tenor aren't in do business? got the as last the those better the sense. in or

Joe Hogan

last I Hey against to comparing up given Jeff, market, good -- seen a mean it's market Obviously, year the a talked market. the at adult look effect you're and on in it to before. good the it secure down, Joe. focus is won't that things Look, a at that. and it, look that's have we the teen Zoom volatility and fairly can as and way but move you're about you've we

teen to be now take see because can, is us of Europe launching you right in but leave also. that's talking Europe lockdown time was us that unique through. this. want take standpoint. these the you the they're possibly advantage like that know sets is a to pressured. in We good a we volume especially Jeff, tact we're getting saw now China the going a But and you're adult as US And and to We going teen much in products right see -- this So -- as first ready times China market from our the demand same now, about I'm in going why pretty sense in the quarter. position of actually summer

Jeff Johnson

What about that teen Joe? volume in the US,

Joe Hogan

United have their funny. better season. we're also here with to I There's make good. we've I teen have for that treated. year, well States a teen We Jeff, our market volume for think time penetration and versus packs teen this further honestly, positioned there. for go since I talked and the in I've teens in we feel been many just that's about positioning known and is that And the it's in it, we why brackets. window about teen these be to And to that And and wires seasonality for expect we'll here prepared Europe. really how years, Summer about teeth

Jeff Johnson

Thanks, got it. guys. Yes,

Joe Hogan

you. Thank

Operator

you. Thank

Your of Stifel. Block next question is from with the Jonathan line

proceed. may You

Joe Hogan

Hey, Jon.

Jonathan Block

just if if sense. would, teen is And hard April. after I'm segue. someone like ago. to making to it did pack right guys. old threshold you some and up if a enough Joe, correctly, from on unfortunately, Hey, remember program We honestly, I that remember teens decade the Hey, case their I'll programs Thanks. guys. your below I'm collect, start internationally with packs. this hopefully, Good Quite picked

out us it's the have what it. say, XXX-case they because What's talk maybe decade just got go after the or and pack argue and and a a a intact else commits you're be to XX different you are ago. even the So let's launching someone go relationship got to here user also to relationship somewhere you're when round or staring pack, we going then tenor collect overall, of goodwill XXX, of more now teens, lose to do after not versus to it, for going look, or just you've keep 'Hey, you it, were there a options -- for they this the going with XX-case to go down go

a So that maybe the if that you could timing talk the will great place program, off be kicking to just to and start. behind

Joe Hogan

tell less legendary Jon, here. I million right? in you Europe, back doesn't business Europe you're like time, an can I But than where happened question, Align history, then. and hear in Because you, $XX that's that a think but it's our I in good go was if back

is much now I that was world really billion. whole point at pioneers the time. then, than we it’s it back coined were And think with $X when Clear more over in Okay, Aligners

to you over DSP it's the of They going are commitments at make same aligners look basically time. to thing. If many period our how a buy certain program,

making or haven't had in those not DSP any customers regress with benchmarks. issues having We

feel run where think we mean pretty about we few will. we we a will I good I So are. into situations,

be think them outliers, in we'll time. I with they'll deal and

Jonathan Block

lot to line going And enough. of pulling just go little to I top where guidance. be Jason and started back Okay. might There's a XXXX on questions Fair the sort bit. of a

and And five six a get of me about or XX% total sort incremental FX that So headwind. quarter things, about exercise run of you growth could first year-over-year and XX% revenue past years, back for it. got If to this the out was XX% throw through look of work if the I an revenue. you've couple we year, you let just

XX%, what's Thanks, XX% line And a growth throw call for we getting thought XXXX? it, process to, should So double-digit in dart wrong XX%? top at guys. with that low

John Morici

is -- Jon, think this John. I

in as we are line the to pulled of would we changes in to to have at way last expect of is further that happened until As to going way we world. in us talked grow there's marketplace result percent, things a of shake a in you and that guidance being a clarity uncertainty. lot that, the that have we be the get how as committed responsible about able And that XX-plus being earnings, the What out. pulled because profitable guidance but we a top

Joe Hogan

just we too. to an And haven't Jon, is April add standpoint look we too, as to March, we seen comments, start from April at from momentum John's versus also. that standpoint any that

Jonathan Block

Thanks, Okay. guys. That’s helpful color.

Operator

is Wright Morgan The next of from you. Erin with question the Stanley. line Thank

You may proceed.

Erin Wright

Thanks. Great.

Joe Hogan

Hi Erin.

Erin Wright

to In hear the you. hi, good Americas -- from

are seem lingering in parse like Americas, bit about could does of compared you impact, cases quarter, the maybe trying out in coming are you macro terms from Just impact? I seem what a headwinds a parse mean Last And delays. But some you're there? of did terms little do some out in what to dynamics So, like -- of the it some back these can the break kind Omicron that seeing to doesn't this quarter? of you out. kind of COVID of it COVID maybe but

Joe Hogan

doctors down that confidence reports through as orthodontic you And discrete February, we that faced wanted getting statistics of March. GP part to very pretty and treatment. It's different consumer basically if we patients shortages I'd that yes, the segment. be quarter the Erin. say that both the not patients the us. in segment lot watch to thought staffing I'd late from the in sense quick the dramatically. saying first -- what you But is that, they that doctors -- gone early in is, After drifted we but hard And to in of they've obviously of things say, affected States, impact United say our can started in no, hear a first at the

XXXX. So, about again, personal saw It's some with deep it's saying, something more of their want finances. or do we you binary. okay? back move marketplace to a It's XXXX forward and people cautiousness no, see in from treatment reticence to, in not But not what the like is can just you call out the in recession or heart everybody we

Erin Wright

And I about guess, the on thinking the balance I should be Thanks. then we the how ASPs great. levers, Okay, pull for that guess, year, you Thanks. front? of that and can on

John Morici

or an wouldn't seen this notwithstanding we've standpoint. else gone Obviously, standpoint, that so John. But anything anything year we unusual this expect notwithstanding ASP far. ASP from unfavorable have promotion would from is From standpoint anything dramatically affect don't us. an any Hey FX FX, different FX, we've a as Erin, overall we through

Erin Wright

Okay, you. great. Thank

Joe Hogan

Erin. Thanks

Operator

the next The from you. question line Thank of is with Kevin UBS. Caliendo

You may proceed.

Kevin Caliendo

Hi, thanks for taking my call.

Joe Hogan

Kevin. Hey

Kevin Caliendo

Hi.

doc guess been macro starts I would I it the If anything, micro just demand have last the it sort so of couple adds positioning? So, competitive the Is why one the Is driven? it I really it's or US, especially competitive? -- question is, doc to in ads of hear Is the have why been is doc have first love sluggish? flattish the or quarters? sort of there's for -- if

Joe Hogan

clear mean I from competitive we've I on been Kevin. question, we're pretty globe your standpoint, macro you're think think read because I what if Well, it's in seeing the the States a I asking United around

I about. don't factor cycle competition from look, in -- being in with that So, just we a we're major competition issue standpoint, of a any this the demand talking sense see

Kevin Caliendo

of versus to and being this volumes versus economic talking of how down, driving try we is people have -- been the much you have spend, economic-driven? driving broadly you an like you being percentage? simply spending when -- You're as what's that here have and to for are as other products longer versus really able we're how And out this, about mostly decisions and/or think much is of hesitant Is do like taking impacts that you about three been much guys overall all ascertain able much much demand more to a COVID to listen, environment. if don't those People parse your an to them? in COVID, were just just inflationary consumers it as aren't group things, it how

Joe Hogan

XX% the about communicate Kevin, our orthodontic about starts than case segment, a what We're less right? underpenetrated we announcement XXX the talk the million Talking see patients. way and this we totally market, we through million XX of year. in huge marketplace, to the

there earnings. there's is lack So of lack opportunity. our our competitive a think affecting demand There's of growth the out issue or and a that not we not

on if to we're of that's from today. to so can't on of of it too marketplace, you we think And when the changed, significant in thing. Europe seeing last COVID averages an was I I it way have consumer Part conflict obviously, the part amount equation, things February, going And couple is any in pretty is I And variables in what a is see we the this Ukraine days standpoint. of too, compare -- those weighted you at I have things changed talked dramatically. think that the example. these to of first I give think, put

hard really it's be. what to So going forward say might that

Kevin Caliendo

sort things at stick terms talked anything ground uptick the about last I achieve those for or you goals goals targeting were what whether this when there know the say, goals mean, Are year terms are me. point? 'okay, is XXXX a you are put a on the company we you number. that in to utilization or increasing hoping in of and spend. that this in terms Is have one I quantifiable any focused your any of Like something in have -- doc can of ads in you here's it that there for one there quantifiable of that -- Are you be

Joe Hogan

thought this a company. And Kevin, process. never is leaves our growth it

all. do? what difficult a more much we to do. trying That's running way at to So the with these trying run plays headwinds. we We're are more market always in We're

what We'll we'll focus And find a by we keep strong grow and country. we'll move them around. grow sense. good so We place we and can still those at can how look most see ways. where these makes the We'll on

Kevin Caliendo

Thanks, Appreciate guys. it.

Joe Hogan

Thanks, Kevin.

Operator

Thank America. you. Ryskin of Bank The of is the line next of question from Michael

You proceed. may

Michael Ryskin

touch taking the two, want got me? guys. a I on. questions, Can you Great. few Thanks hear to I for

Joe Hogan

Yes.

Michael Ryskin

sort Okay. of we're talking of Great. Thanks. the through dynamics to. One some is talking just

the talked quarter. for You

outlook events and of it a is on a whether we kind or can lot following, the of of see China driven driven, that think that it's I macro we're it these each spend this it's couple of all of the lockdowns couple there your or lot lot about of investment these a conflict things? sort of of on of like XX% global others. in even more expectations things than as XXXX you As next year? you I like back of can these a catch-up go And things through of comment I've quarters and are what long-term we we start then spend to follow-up. FX you in of Anything months, XX% sort is and to revenue got catch-up your growth. and somewhere bolus when touched cases for expecting Is and the Europe you your come this to on going as these or talked But fade, there some know volume an temporary are on growth about still be expectation the kind another next XXXX? saw that?

Joe Hogan

we was mean first overall, I last out mean, that, demand shows -- what it I was kind that of you there procedures. talked I you for a the saw our just think it the at is is Mike, COVID. after downturn, bolus, I interesting about like look

it's there. So

see and in are exists affects that at have bolus predicting And to up through see it are marketplace times. we headwinds so the and shows be that here think how We'll setting filter the John it how just wave or whatever, can and in this just and doctors. another consumers pent I a I demand or but you business the it

Michael Ryskin

still that on something then touched the going prolong hopefully, recession downturn. the is not Okay. this Obviously, going in both if XXXX, of from what XXXX, I period earlier too. what Because at direction that follow-up, things was do months about now, answer look plans to year But talk quite when coming your sort in be in yet, from consumer. appreciate talk growth. the us and a are sort of of of sort XXXX, things you of you referenced back like that. kind but the deteriorate not continue operations six And XXXX in Could impact to for plans heading front, of we're lot on through you year, on adjusting XXXX, we're still now, the protracted if growth are that of internal on your there essentially a environment? to flat there's inflation that there you a an

So could you compare--

Joe Hogan

from again. just It's really a balance net Joe no company balance great debt sheet standpoint. really and strong start strong it's I Yes, -- to to we sheet have have with. a a

or system, whatever, an to going of we're So, try like probably XXXX inflation. look, it's I'm economist, on what they does adjustment but a an -- predicting Federal to see XXXX, I'm not not we our saw depending meltdown in as attack Reserve financial

It's this international to It generates we incredibly a keep is a things do to of pull and cash. of So, And healthy. to look, levers this lot have we extremely business lot a now. -- lot of going. business

balance So I and manage got responsibly able be that business it, to the if to did feel -- we'll way. something cover sheet we but a too, happen, dire

these how the tell love subside, of the ready it's headwinds don't We to business. okay? this position to we'll We're We either see do just on and able give going about end you future. be in. company be up to hit well. us, they that that We're love I'd confident on and this how position So, just to

John Morici

have in business back We just XXXX. didn't add, are a than might we we iTero. XXXX, I And different were

drive and done global we a created We years, from time of of do over of lot along more a right have much market, awareness, a being things iTero, evolved products, further much now business we've can is a amount standpoint the where XX from to we're the happening we've order that this in teen period things in of demand profitability. over consumer what that mindful more time a standpoint, leverage and very all

Michael Ryskin

Thank you.

Joe Hogan

Thanks Mike.

Operator

Sachs. from Thank you line you. Rich Goldman The Nathan proceed. may next question with is the of

Nathan Rich

would there's Hi, commentary of maybe kind in anything any just not return. help mean around where on follow-up do about of how seeing to would thanks that for first relative the and quarter? helpful? volumes exited the you you was seen the current is business could first momentum your questions. of rate April I could run you've I to on sort wondering to think if flattish, like and I that quarter us wanted be put what that more guess the kind the parameters

Joe Hogan

is. I'll Nate, than at quick -- John more specifics Look, you But you March and you a and is look just between When flattish have provinces in give use this there seen lockdown. to lockdown are remember, first term. -- flattish biggest we Yes. your -- give April is to several rundown, locked can we the Beijing is country not Remember, down world. were China. China too. we've second before into down. that that, Shanghai That's going is still in the our anything. locked It's

that been part of and that's So, business about, we're too. in of big our part a impacted has really that flattishness talking way, that

every impact So in the region ways. we're And of with world seeing it's in APAC side, the particularly different China, on dramatic.

John Morici

it. we've months, just -- lot to as much seen change. -- couple changed don't responding of add to last anything and have we're I to a that has I over the

Nathan Rich

between maybe you kind anything there the different a you've the I and seen touched other framed guess, curious treatment, we've consumer know that be back been Invisalign they're consumer lower-end in of I be the a get the more of the I'd considering And it's population purchase, seen among ticket going of of And kind of questions. sense. But is segments guess, is start on to thought higher . to just versus as that environment. treatment? higher-end it, always treatment Makes that way consumer. I to, on difference reticence consumer? it could any your affluent thoughts think, you've catering of sort kind I to

Joe Hogan

on teen teens, and it's pretty teeth that the I about just all segment orthodontic to sense existed it's right? afford a parents they of was of question that back The asked commented can adult straightening. it's always depending over resilient, that kind other demographic sometimes, that segment, -- the is in aspect certain the The children. the young of the in treatment that place is

you'd up don't or $X,XXX want you're what's amount that to to a going in fewer going data people have don't taking more have FIFA treatment it the a score seen for for treatment of match, has that what to don't or how But certain $X,XXX either. are be know would on Some I that that you're it's certain We worth if adult certain whatever. a you impacted, on. John to contract on depending any guess data. your times, correction have actually segment sign I broad a in say it. finances

be point So would in it's willing time. certain that logical demographics less this at

Shirley Stacy

Thanks. Operator, one we'll more take question, please.

Operator

Evercore ISI. The question Anderson Elizabeth next of is the line with from Absolutely.

proceed. You may

Elizabeth Anderson

Thanks question. guys. the for so much Hi,

Joe Hogan

Elizabeth. Hi,

Elizabeth Anderson

visits, deceleration So one of not first that still sort iTero year-over-year a providers has not people rates the drivers at walk iTero and Are we worried saw you there. overall sort of of ex-Clear in some financing? But of Could scanner growth. like, Aligners of the takes realize Obviously, as but some reticence what's is sort you purchases demand Obviously, all how up if and think How maybe sort the sort there and maybe pure the talk that question on quarter-over-quarter, about looking been there? you a sales. like we about quarter? maybe puts it haven't interest When going of us spend? we seasonality. of driving like about through I to equipment Is quite impacted. of the are are do demand, growth seeing is

Joe Hogan

from still unpenetrated an a side, scanners of that start ortho overall. a lot ortho is Elizabeth, it's five, four, broadly have can I'd Invisalign, Joe. market the GP six scanner standpoint. the side, with does they

for now capital -- to can $XX,XXX kinds When understand about true Healthcare them ABB, to they'll I right to service years, about flow the So of cost sense cycle. are they going I GE a look obviously, scanner delay get for that is people purchases. up with going going equipment be want There in cycle those think, reticent you today, equipment. what like. when what saying to and They're XXX,XXX we worried of a the I their some $XX,XXX in between is to sell. cash doctors And concerned, have anywhere sign the be of that we capital talk look,

strong didn't anticipated. as whatever, things than So, tell just by iTero we I saw as you can't shut off. for We didn't quarter as or the country see through, but by got region things they demand have we just or

if obviously, some But investment, have we'll this to doctors to -- into we way around are get going traffic scrutiny, I goes. practices. be seeing So, it their less think, there's more capital through

John Morici

delays to Yes. to necessarily that get not close It's away, going to to it's just delay. have they a we And work the the put them to but It's just try quarter. and within say. not

Elizabeth Anderson

side terms And having that of chain being equipment? to the supply issues manufacture like not you're on in able any like

Joe Hogan

the quarter. We first have We the in didn't any any second won't have quarter either. in

Elizabeth Anderson

one follow-up. quick Okay. And more

gross deleveraging about that some of some to terms In the the margin scale? as versus you just able Poland out parse can gross So, us a of of shifts to volume pressure margin versus new new the be of facility trying of that. the facility, impact remind I'm it of you maybe impact the the cadence when open

John Morici

countries Yes, to of increases, through -- the utilization Elizabeth. And once really that to then the productivity. much then see possible live margin and start we'll quarter doctors down the It we'll you as utilization as moving and get go trying those here is gross second in have What impact. to a some see does comes through plant. that plant converting that

So, then about and it a regular a basis. hits than gets quarter, and subsides bit it then operating more a quarter it maybe little a on more

Elizabeth Anderson

Got much. you very it. Thank

Shirley Stacy

call. if questions, conference to And please upcoming Elizabeth. Relations, great our you for This thank a Investor and us We Thanks, concludes joining have and look at industry conferences contact day. meetings. you, to Well, you have today. everyone, any forward speaking

Operator

This conference. concludes today's

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

Align Technology (ALGN) 27 Apr 222022 Q1 Earnings call transcript