ALGN - Earnings call transcript Q2 2022

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Operator

Greetings. Welcome to the Align Q2 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 will be recorded. the Technology. to turn Stacy host, now Align with will conference your over Shirley I

begin may You

Shirley Stacy

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

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

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

call like Hogan. XXXX Technology's files Joe the our We to statements, I'd for quarter the slides non-GAAP call information. to GAAP over And including refer CEO, President if to our and have to reconciliation, results. financial with and website reconciliations, more Please these historical second conference posted corresponding under Align turn on Joe? applicable, our including that, detailed quarterly

Joe Hogan

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

Poland, call I'll from I'm with few to Following XX%, solid and The the underlying continues environment margin customers helping improve. digital planning the revolution conditions current the digital help growth launching report macroeconomic our initiatives, new QX, to digital and support new strategic questions. summarize program, do variants of to solutions factors way impacted exchange. unchanged and such and our certain and their market products new lingering open in revenues foreign our opening These these results operating unfavorable as and that, and case doctors a remained approximately innovations pleased of Middle the relatively to quarter and trends innovation back Africa new environment despite achieving a orthodontics to be markets. the for well-positioned new and and dentistry. Align in manufacturing patients. and come our top orthodontics by is subscription evolution orthodontics business, better focused and line key offices East points market and in packs, facility COVID-XX and Notwithstanding, the as headwinds, teen we've treatment in announcing dentistry on including want doctor to to the second effects the of are revolutionizing comprehensive drive to to withstand lead

continues Systems by sequentially EMEA, volume unfavorable and driven increased benefits volume Element our imaging offset XX% growth slightly Services revenues were in compared business. offering scanner reflecting and revenues year-over-year revenues base. System up entry-level Systems XD sequentially pleased increased adoption. scanner of For In volume in was up growth The in in lower the Americas approximately and X.X% installed and Flex QX as QX QX of to by and foreign exchange. and from reflecting revenues impact XXX%. Services, the of with sequentially Services doctors of APAC, iTero system digital. the year-over-year to sequentially growth our scanner the iTero Services up QX, partially QX, services recognize going APAC, represent increasing I'm XXXX represent majority also of the

revenues For slightly our X.X% our Clear sequentially XXXX Aligner to year-over-year segment, were growth down QX compared of XXX%. QX year-over-year down and record revenue

XXX.XXXX the starts Americas China sequentially by Invisalign up reflect of for last down X.X% sequential year-over-year and patients QX quarter, shipment compared the QX teens rate all-time high. year For partially parts was when an Clear and across Aligner growth case Teen UK offset growth volumes and and younger EMEA, was our case slightly

QX, as all across six grew year-over-year young First and For as for regions. strong old, years Invisalign kids was

During our new Packs buy Packs, advance, packs and clear orthodontists Canada enables introduced Teen to Teen aligners the Invisalign in subscription the today. and and France. in they buy QX, brackets we wires which similar to way and program, US

simplified include with exclusive Pack Case Teen brand adoptions predictable Invisalign date, encouraging among the doctors benefits the their ordering to To the early an been volume Invisalign teen has Packs Case also aligners incremental Teen and have development Our treat who used practice commitment make doctors. historically billing doctors. highest for requires enrollment process from with and more patients. not

accessories, up revenues, and subscription programs DSP and other our both non-case as products For were sequentially Retainers, revenues, year-over-year. Vivera such clinical retention our include training education, such as e-commerce which and new

all had utilization. and XX% continued strong over growth year-over-year driven revenues QX shipments our regions subscription momentum submitters in with Momentum QX across program sequentially. sequential increased both and by doctor retainers, and For

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

submissions channel Invisalign case including Invisalign From channel. from For the GP utilization both DSO and comprehensive standpoint, increased products, reflecting Invisalign non-comprehensive case benefited from and QX utilization Americas the from product channel. in QX volumes Moderate. QX sequential orthodontic a region, growth Invisalign in reflects increases sequentially, increased the First also and were up the increased

were sequentially, primarily Clear headwinds international case as volumes Invisalign of QX a the X.X% Our Aligners, down previously. described result

a volumes the lower and UK reflecting down primarily slight QX France. EMEA, increase Iberia primarily slightly Invisalign offset For Italy, slightly in in sequential were and case by volumes

market doctors cases. QX, declined QX expansion an the increased patients sequentially. sequentially teen Invisalign by teen driven submitting shipments number increase in For of

slightly, Invisalign volumes reflecting case down effect lockdowns quarter of continued were APAC. China. full to Turning in a

For India India, On Kong, Thailand was driven primarily QX, increased submitters. year-over-year Invisalign Hong Japan, teen a shipments doctor Japan the strong basis, in increased and during Korea. growth The quarter. year-over-year, performed and case Taiwan, volume Taiwan, well case APAC by

and Turning to connects patients customers a new solution technologies and innovations. all delivered integrated transform an consumers that and as lives. users, end-to-end suite doctors, proprietary The smiles, to to Align Platform is change Digital of seamless services labs

treatment and introduced range Invisalign Invisalign roots, Outcome integration customers potential tool their for user-friendly deliver Use Computed announced clinical jawbone. CBCT next-generation In we'll or for Pro patient's experience. visualize in we is empowers quarter root, crown confidently communication we one clear patients' integration also minutes. their based Computed with control done a ClinCheck help advancements help technology to their across surgical, Cone treatment or superior chairside cases. inclusions, needs. to systems, what their view, wide crown easy tailor several or Invisalign unterrupted and enables integration for Invisalign interface software, to Outcome deliver treatment. their plan the innovations regions last planning systems, and of complete range QX, to a rolling a Simulator experience and patient including doctors begin our smile software in-phase more Tomography visualization CBCT on to Beam software to teen in liner broad impacted designed ClinCheck jawbone to Our fused extraction doctor digitally team. doctors ClinCheck gives building patients as as superior the for expand in makes model. that new doctors of Beam restorative, deliver Simulator doctors the XD Pro, and for patients doctors confidence The on of expansion, that a out being plan integration treatment new after treatment well patient informed ClinCheck view Cone call XD August. dentition software a all and outcomes, allows see efficiency mal cases Tomography CBCT, automatically This and

still commercialization early initial these is new encouraging. from of it's While products, doctors in the feedback

to awarded digital half excited and world. $XXX,XXX Through new help commitment XX second advance we our We across furthering the around begin program, customer research annual orthodontic universities the dental quarter, Also, totaling to XXXX. in our them are base restorative of scaling dentistry. of grants, we research future the during research, the orthodontics our awards and to

that transform XXX offices, driving marketing Invisalign million consumers opportunity market and Invisalign on doctors the to smiles. ultimately on about demand massive system, is Our to consumer focused educating the capitalizing

our rightsize macroeconomic metrics QX XX% were For websites, XX.X year-over-year visits QX, as given QX, million had we size the impressions. in X.X increase, and our billion to versus lower Both chose a we media spend and to delivered over environment. over

we next evolution built our on and the quarter, multimedia campaign with campaigns, trauma-free, everything new successful Is” “Invis Is” clicks, when US Invis two and targeted the teens, targeted in at Is adults. at “Invis the During launched

with numerously Invis Our while with trauma-free hassles treatment, the the benefits juxtaposing of braces. teams highlights Invisalign using significant Is campaign involved

Invisalign continues Invisalign provide for million of than our adults. rolled Is feature QX. capabilities leverage patient will times, improve XX,XXX Invis campaign the increase, About in virtual for world with date. My of in photos used four XX,XXX verification to patients. showcases X.X continues campaigns tool consumer care times the Our and app Both our us clicks virtual increase we resulting when appointment transforming continued rich feature and everything received and Further, XX,XXX treatment, it out to patient Uses to our artificial data example, was over to Invisalign QX. tools digital markets be young our in was to with doctors services gives our to some confidence the around which used intelligence smiles our globally, and downloads insurance more

in our posted metrics slides earnings included our QX Additional consumer demand are website. on

XX.X%, Total of increased worldwide year. QX and scanner in continued an last Invisalign of which XX.X% revenues up basis, and base. scanner subscriptions. Invisalign our year. revenues and and increase in scans We results our sales is revenues Systems of Systems intraoral services volume last an growth growth QX in from of our base, sequential for reflects number base in driving and and scan primarily scanner digital QX sequentially in QX the from from our a X% APAC, reflects the iTero lower case Americas, volumes intraoral year-over-year larger in to with offset XX.X% The submissions QX up in increased scanner APAC of reflect digital our are revenue. year-over-year. Growth International higher higher installed Americas by installed leased. increased installed increased and start On scans EMEA. primarily Services increased scanners service for revenues, once Invisalign submissions XX.X% Services increased submitted largest Year-over-year X% and case were digital used up case subscription digital of intraoral QX in adoption scanner reflect pleased

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

which integrated and and Services revenue. Our offerings interdisciplinary and products and Platform broaden QX extend workflows. Digital dental solutions design exocad guided helping in Align restorative towards services, are Exocad the implantology, products fully surgery are smile Systems include included services our CAD/CAM end-to-end digital and dentistry, our

designs dental quarter, CAM. the design earning time During to workflows CAD powerful exocad in offers more intuitive released which lab saves new CAD from X.X and software, along Rijeka the the

during In release about This our use registration the the opportunities exocad portal, signed -- expands using launched that time, end-user with largest software. addition, improvements. software a Arming mandatory introducing contract the quarter, and allows are exocad’s myexocad the exocad Also to for information further future strengthening the customer, new first for who how the the customers we Gearbox, release long-term relationship. product collect new,

continue for operational time, of to in our In began expansion manufacturing with geographic latest our Poland planning manufacturing for treatment strategy first Poland continued Wroclaw, clear we execute June, facility the expansion. EMEA also our we Finally, facility. Locally, European the our aligners in region.

Invisalign treatment in doctors orthodontics region, the we across provide flexibility Invisalign plans and the doctor supports doctor and and the languages, customers and increases preparation of Poland our supporting quality time benefits our in with our digital of will positively local customers operation expanded ClinCheck Our timeliness of with system. influence expect and

that, regions, positioned three uniquely and clear footprint planning turn and manufacturer the with global John. are With We to over other aligner our capabilities. all no manufacturing has in now treatment and I'll call

John Morici

Thanks, Joe.

This the quarter X.X% is QX a compared year revenues from the $X rate the for Now our corresponding year-over-year down XXX.X%. results. and down of financial X.X% XXXX million, growth Total prior for revenues quarter were a second which to quarter ago. of from $XXX.X had billion, QX

shift, For product million exchange non-case down mix primarily down from lower exchange, revenues, unfavorable X.X% product volumes, QX foreign and fees aligners of were clear approximately year-over-year, due and Clear revenues were XXXX processing per by sequentially, higher and million, reflecting unfavorable higher revenues. and foreign $XX.X sequentially, partially million, primarily additional mix unfavorably offset or year-over-year. impact approximately $XXX.X QX and aligners, order by or offset approximately $XX.X of by partially higher to Aligner exchange impacted approximately X.X% non-case X% revenues X.X% foreign

basis, scanner aligners, by mix X.X% $XXX.X X.X% ASPs sheet sequentially, be balance order and non-comprehensive were scanner sequential higher Invisalign and were revenues approximately due and and additional higher higher $X.X will and and foreign by sequentially reflect year-over-year, additional slightly aligners exchange of and up by a Systems or million per deferred exchange services sequential QX the installed ASP. partially primarily and the our year-over-year. lower partially recognized are the non-comprehensive discounts. million, discounts, On X.X% million, from $XX.X were higher year-over-year. revenues QX On increased as or volume higher approximately basis, exchange were and of and a of fees per impacted unfavorable sequentially unfavorable and discounts, X.X% the offset exchange. basis, Services processing were impacted in Clear offset service higher Invisalign aligners which million, or XXXX offset scanner and million, aligners. million, mix foreign ASPs increased of approximately deferred product over For year-over-year, sequentially, revenue base, included by partially offset the and foreign Aligner discounts year-over-year up the exchange, lower Services by Invisalign processing and of impact higher from a ASPs QX, partially X.X%. non-comprehensive revenue primarily in on sales unfavorable Invisalign sequentially comprehensive of offset impact by approximately a additional basis, with and shipped. of and the year-over-year balance Services ASPs revenues ASPs sequentially. up year-over-year from Systems Services revenue year-over-year higher impact by ASP, lower comprehensive or On $X On additional the X.X% exchange comprehensive $XXX larger fees, decreased foreign sheet a scanner and be Systems X.X% period. impact On $XX.X primarily partially deferral $XX.X will basis, foreign product impacted due by or lower increase unfavorably foreign Systems to revenues order and was XX.X% higher to ratably by unfavorably volume or the the of up on and purchase, recognized increased million, shift. decline unfavorable reflect ASPs reflect the service favorably

margin. gross to on Moving

to down were additional unfavorably exchange. higher due points by aligner higher Systems service down ASPs. and Clear overall volume, lower million for operating expenses on was margin higher down $XX.X as X.X%, points gross down operating and a due incentive was two margin increased spend gross variances manufacturing to expenses manufacturing partially margin part year-over-year Services and Services X.X to year-over-year business basis, excluding $X.X non-GAAP sequential higher sequentially approximately higher down year-over-year. points costs, partially reflecting QX Aligner ASPs quarter X.X compensation, a million, and and $XXX X.X and variances, was to points and costs, down XX.X%, points and and compensation Clear offset and margin impacted X% of by acquisition freight manufacturing amortization stock-based Overall, year-over-year. intangibles were due spend, ASPs due foreign and XX.X%, the costs. X.X manage and higher partially by second lower by million to was X.X freight margin of costs. our for Year-over-year, and expenses was by expenses higher X% second lower year-over-year. Second offset X% to to a gross sequentially gross were mix activities controlled by XX.X%, points the efforts investment operating margin On commensurate quarter certain and points down ASPs. down related sequentially due higher was acquired X.X basis, investments X.X mainly offset advertising freight sequentially Systems Aligner million, sequentially marketing and of marketing, $XXX.X year-over-year points our a continued quarter basis due on to mix. with gross R&D sales gross operating On sequentially in proactively acquisitions growth. down up up

was income million acquisitions margin, margin year-over-year. primarily quarter related million, X.X from second operating $X lower as points compensation, approximately teams gross income tax unfavorable effective margin quarter the was by rate XX.X%, and other decrease foreign exchange points in quarter is in the an losses excludes to to the US of intangibles attributable foreign primarily margin operating for points compared year. and expense certain of and unfavorably in The foreign million, currencies $XXX.X in in second by of the stock-based down sequentially foreign well the loss to in of points quarter basis, Our XX.X% net On due for of sequentially XX.X% sequentially larger weakening and by down down prior XX.X% first from a exchange. non-GAAP quarter second year-over-year X.X operating $XX.X operating resulted quarter second which sequentially as acquisition a to certain technology GAAP our was of second and down approximately X.X net points due down costs, dollar. $XX.X by year-over-year to X.X impacted The year-over-year. was XX% impact and and Operating down Interest exchange the the X.X X.X margin million investments the against go-to-market points. and

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

from GAAP tax lower was quarter the stock-based The income foreign tax first tax compensation. rate rates quarter tax effective effective to different and higher at rate due benefits primarily than second excess

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

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

Moving to sheet. balance the on

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

shares defined $XXX common accelerated stock average at sales and million two capacity flow the we purchased less were manufacturing through Cash $XXX approximately approximately $XXX.XX for related compared XX XX to days, flow an last Free per quarter $XX continued was repurchase Capital cash cash days expenditures aligner capital stock primarily second sequentially million, operations expenditures increase year. overall of up quarter QX of outstanding amounted days our from price down to In our and program, XXX,XXX was as QX, operations to approximately to as receiving days an investments million. million. the Our share. $XX facilities. from for flow, second

$XXX our over for approximately available $X halfway May XXXX purchase. repurchase through are have and million billion remaining We program,

only our year market and XX% and towards were an good across full exchange the relatively business challenging foreign the revenues XXXX and We and confident from unchanged our on and growth. our unfavorable XX% our services views results the execute global feel and leadership revenue technology underlying huge outlook. Delivering orthodontics for increasingly we our underpenetrated restorative Now impacts in influence to turning economic dentistry, slightly business, long-term digital products year-over-year opportunity. market the execution about the and of QX from despite solid, QX our the and factors that and Overall, to of to in of our ability down speak strength especially environment. model our and industry to remain progress make size our volumes

unfavorable deliver committed to goal remain foreign in to XXXX operating R&D while above operations, for manufacturing strategic primarily construction also margins our making investments international sales, and factored capacity was the our digital as not notwithstanding to fiscal for year. XX%, We from expansion. marketing, well as full improvements our exchange, building GAAP guidance margin into a and support which relate expenditures Capital to operating impact the

to grateful to to generates healthy like For provides facility XXXX, profitable investment have are Poland. that in in balance in cash investment customers that sheet differentiates includes Business while exceed Wroclaw, growth aligner a This invest strong flow as expenditures our in strong capital and underlying our we these, shareholders. a supporting million. and align, employees, model flexibility our fabrication expect In our we $XXX our business fundamental well our times as

As drivers. and we strategic it on second that, for the growth to the our to successfully manage year, over uncertainty Joe? continue on turn focusing Joe With I'll half our of will final delivering headwinds to while investments account back we for into comments. move

Joe Hogan

the Closing tougher Thanks, to in than we has half proved XXXX QX first be expected. John. of

landscape. strong As of cannot orthodontics confidence the digital opportunity our restorative related and consumer lasting year we variance, sight macroeconomic for we impacts to will strategic continue fundamentals The enormous decisions industry make lose and have the and the uncertainty dentistry. the business of of this weaker future implications navigate for we competitive to and our COVID-XX and market

to progress with and Operator? while a holding very with good to remain We priorities environment. to our and difficult look our I'll global our earnings With updating strategic urgency next of to time sense resumes. drive long-term capitalize a headwinds business ensure over committed turn call. innovation strategy, near-term in are extend leadership investments that acting We to the growth operating making your ready that, it true forward you growth We we're operator. balancing to today. Thanks to for and on as

Operator

conducting this session. a you. [Operator from Sachs. Rich Nathan Please question-and-answer with we is will Thank first The Instructions] Goldman At proceed. question time,

Nathan Rich

wanted consistent revenue a good Hey, John. the in I guess, Thank second in and the Joe, relative to within challenging you your environment, of case or business? of driving high that to on Joe seen And that the patient how highlighted context the macro commentary? But start rates trends afternoon. guess, level. I influence does impact kind the you, thinking on the of you quarter of I first. an have treatment kind practices trajectory acceptance traffic that's to dental

Joe Hogan

Asia. some Nate, this like demand John quarter but it's standpoint, globally. a were Japan the question us like if you I a you you the to tremendously for if just you at I when at our in have this asking of throughout think -- that, can out from bit and a domestic first Asia, to clear And in COVID-XX think almost pretty a quarter. pull in little impacted have introduction you took you're in I China part look the that look signal, basically,

So you'll a some In the United look a going in demand to vision discussion and signal hard data you standpoint it's there, pull we on. from a see I really to it do, what's stability at was whatever, mean, out. or general that practitioner if the States, COVID patient

it's a in from variability done, before. like way or discretionary. needs we in in talked standpoint, more cap be crown somewhat something is teens. that adult than if this adult an And product that Teens or we obviously, cleaning is, to been a here see or stable have pretty about selection where that concern Our a

XXX% last to growth beginning big Europe which in okay, the have over And the to that. the vacations standard end taken quarter. to working quarter year, in weren't of pretty of the and a year-on-year. being third It's Moving second internalize you Europe We're off Europe. rates comparison there

we overall, the I you about kind QX as really script, China can't Nate. macro now, trajectory look So QX and say, in and the same globe, -- that But felt much I'd fee hope of from demand in good, things. another around makes of of versus because as third in shutdown pretty like I the the pattern. mentioned the quarter, a quarter types COVID concerns sense, fourth the I those give I and again you right environment,

Nathan Rich

size a those Yes, I quick -- China? definitely. to in of just those we're the recover And And able to ease? follow-up. lockdowns see you kind the were that from specifically, volumes in – with see you, headwind to maybe guess, lockdowns have as started market that starting

Joe Hogan

next For by in it's way in it a cities. again, open stable to cases market. major when COVID It's creates China China we amount as direct will This be. Shanghai just continue continues the they dramatic correlation the lockdown as that address just a mean huge let soon of as order feel there good uncertainty saw sure. I reflected we about there. our to rates And look,

Nathan Rich

you. Thank

Joe Hogan

Thank you.

Operator

next line is proceed. with Rich. question Mr. Please Anderson of you, the Thank Elizabeth from The Evercore.

Elizabeth Anderson

Hi, guys.

Joe Hogan

Elizabeth. Hi,

Elizabeth Anderson

quarter, Could in into hiring, year, Where about through fourth could are Thanks salespeople? year? did the last in the increase of in if quarter Thanks. of sequentially they wondering the process? comment so thing impact of potential year-over-year. should half -- for you think question. talk for you first sales their was the of the sort those -- sort you And the know about and much I the the of we you how One back and sort I ramp contributing of do

Joe Hogan

is sales that to important sales force a force being in direct Obviously, That's us our a Elizabeth. question, -- way. really good

And we upfront. you so as do way salespeople of obviously, indicated, the this, we hire lot a

you system, the you, initiate types as before feel is too really tell up help speed. you corporation. globe, there programs understand They digital and six-month that come sales depending they're to period, But things. I to would Invisalign into them those they nine-month burn-in platform around have We that and are training the the on a the where of

be So really that have to I before geographically, nine could would good as or in months. it say doctors. they their on it's in some six feet months general, be our talk confidence to they're simpler But kinds so of going we situations

Elizabeth Anderson

the the of And not quarter know how it. little economic of that thinking to about helpful. thing of me depressed near-term? of was and adult you sort versus then But always in of quarter how bit it's the number. in teen. seasonality, terms that off of strongest sensitivity do you necessarily trend quarter, cases Got That's it's one sometimes -- because COVID teen this that been I sort a the about and sort for are the expect that in

Joe Hogan

a from mind, in in that. concern lot will mean that adult look adults, year-over-year of growth data standpoint, when Keep been produce an our the see more a you affected we and Elizabeth, that you lot I in of show we there's Yes. it's order sense

teen a felt On the because to hard really again, in third standpoint. it quarter we've window always it's of quarter. teens a not surprised certain starts time but the But because second about overall I pull side, the a have lot treatment felt that good it, of from

out. emotional it And second what third for and a it's not and it's beginning -- quarter, bears really the anticipated. planned necessarily we that so usually saw quarter an purchase the in and And way, between of

Elizabeth Anderson

it. Got

you Thank much. very Okay.

Joe Hogan

You’re welcome.

Operator

you, Thank Anderson. Ms.

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

Jon Block

afternoon. follow I'll Good guys. to maybe on go just up there. teen, Thanks, Great.

year-over-year. and American was amount. down teen teen sort maybe year-over-year, think implies of Joe, down was that a you worldwide was which teen I that believe, North I And decent up mentioned APAC

you do around Why call did talked specific you commentary positive teen see North then to packs, maybe America? more about enrollment. out importantly, we there? that some have to anything And So case

North case follow-up. So just might your to and got internationally? to segment long teen roll us that it on how take then arm for in a shot pack out in talk plans give the that a maybe to America program I've the

Joe Hogan

kind Jon, lost a on we we muted of signal COVID. remember, needs very from quarter-to-quarter teen on before the or to team the clear side, be -- had It side.

This Jon. we're If see a starting less we're remember much cycle. that, was more year, I to to you last hoping it think muted. muted And year, feel

think signal I and first between So there. between of and the it's what a clear quarter teen doing -- much don't too can out quarter look pull we're second you

is and clear It's They've script always these I way. this fishing past. our And able it's that's too, the whatever. products done be good more confidence been been And in give been -- haven't there's lower-end we new us. about cases launching a from we were to brackets competition with be them. lot continues of always teens. And to competitive and with too been that them in packs, teen The received teen the for segment that move other well. on that to aligner concern mentioned in But thing basically, to with wires feel we're orthodontics with teen is in my as they've that a standpoint a other

the concerned And So we're not that declaring have through in second the turn seeing as third as have feel a we we're But we obviously, way. out quarter the how seeing not first I the marketplace cycles product we pull and a well. better victory, we'll we get that's of the we're adult that And the timed marketplace. good out but between in teen quarter, me. anything Jon, didn't much understanding

Jon Block

let try Got mess my you. And me make in two one, maybe jam it. second one, and to not then a it. Thank Helpful. hopefully of for

for for XQ China chunk reopened. guys. us overall just versus you is business China volumes, XQ a on of So is decent case the

about we And what's had numbers that number some back, your thought thoughts they there's just maybe XQ if on guys wouldn't I environment. So on down a talk maybe Shanghai, many then us actually know going love resume just your share, I you see considering China to why mid-single sequential XQ? I quite snaps stick which China. then you quasi versus growth looked in some other It of talked competitor like cases markets. with was the market year-over-year, terms digits honestly, good in out were on XH XXXX over there, maybe recently. main to

share share from So thoughts your Thanks love ability on I to market on just your what's on and China going perspective? would hold a guys.

Joe Hogan

there it really we I experienced in involved looked John But saw here, move other regions, side, China those but Angel experienced. the and from that at in Shanghai, same surprised the we numbers, Jon. thing basically I'll a me. slowdowns too. and what of I'll numbers Yeah. start China published with was and some backwards, there, whatever, you nothing mean, we I obviously, shutdown get And

at We've again, in well. organizations that. I to made look China, have compete done there. those our planning our and As The we've about I there investments treatment manufacturing. of it. only ability to feel And great added efficiency

Our product is great most too. difficult there, cases for the that marketplace, and encounter some of that we exist

else the that And ability stable almost and can a this just I down. just there. -- feel We market stable in, the that operate knows, compete or what, two close who's marketplace mean in at it need morning, goodness for So our been, against looking we hasn't years. been it's I read I good to anyone Wuhan's about Angel

stays your in and there's disrupt half competitive second a a concerned with variability concern in of against year ability COVID to the there, feel good mean, I particularly that position about I this lot can Jon, going I compete the anyone. that clear, but the continue our So can to shutdowns, question, China, China that operate if to there, But in answer of be half marketplace. we're we second from. our have To about with

John Morici

we improvement. should a If of variables just will business. we goes said numbers. economics some in closer what see Joe other affects sequentially that, behaving But about, the there potential in are to how see decisions we're about and other we still concerned there. normally no what are or It macro unforeseen that appropriate that that on see based some watching of history our then should people that of If impact things And you some we've sequential there's that shutdown into whether treatment. we China, is things in making to are And shutdown, that our see. investments talked sequential see terms go recession the there's they have their on

Joe Hogan

your sorry, back question... Jon, And second just staying to

Jon Block

can Sorry. in... I just if jump

Joe Hogan

Jon. ahead, Go

Jon Block

on up lasts you an guys purposes for think it's because Wuhan, expecting this today Sorry, resumption evening? to who Joe, incrementally the Joe. and I going clarity today, one. sit important to you're with XQ John the number, the going something Are July, late worse in you was that what's follow on just sit the comment as as I maybe we here growth knows of sequential But say, economy. with know, just don't off I here saying of heck sort

Joe Hogan

a sit based in Jon, market on market say, IQ. a stable expecting the what's sign in anything going and expect China, going this might low their you in here COVID to on of a I'd I tell When Well, second be not I'm half policies. you look at

United a the moving the feel teen from most we're going the standpoint, a what -- and compete there's into explain on trying really to to of outside hope lot we I that makes States one and we're So is market have, I the overall to market ready seasonality, with, China, difference. stable

the the -- quarter we're in anybody, a that products. as X.X a points We've But two positioned that's moves we'll always sense. but wires brackets third when can and share is lot we been Jon, well with been you We're have some know, well over year. marketplace. We as as know make more a hoping taking better, points, make

Jon Block

Okay. Very Thanks, guys. helpful.

Joe Hogan

Thanks, Jon.

Operator

Thank you, Mr. Block.

line the of from Jeff Baird. comes proceed. question next Please Johnson with Our

Jeff Johnson

that talk quarter. maybe shift couple of trended Joe of last to Good afternoon, quarters. you. doctor the each number so I hey, – the on this down to Thank just wanted It's Joe, guys.

-- kind Is number in the going of quarter Americas number stabilizing a a these is up little Americas years touch. that a doctors your at a with bit? What for competitive be just how the where on you've left to there keep it the back view point This Are performing views of you trend in moving that saturated room to you that of Is a kind stabilized Just maybe next number Americas? over are in that little And what in are means? couple the Americas, the cases? do bit? of higher? market did market the is positioning that a who

Joe Hogan

Just lot I No, a also question grow lot to ported John Latin Americas, lot. you we and have to part United growth, answer in America Canada, these over have a of States, a throw of last of In your Brazil too. in to the numbers that. your in have first, There's Jeff. but and room

had you before if happens, up It really things. big that we in these numbers these before, doesn't can line a You upset us. know surge what the orders backed draw we through

a you You three have clearly. that and very split cases orthos have year. some GPs do to like GPs Remember,

way numbers X,XXX, orthodontists for a the down. and they thing go a standpoint our up the Invisalign too, and Jeff, the in standpoint. that we for other teens. committed orthodontic exclusively from orthodontists still up order go that forget and don't XX, an marketplace, in things of we're of do while and will saturated amount this we'll do people as that slow a Invisalign to But orthodontists As from are at adults. down, GP a really significant kind These see them who then have they'll an of think, of at and is circulation they these look almost for out do that be most I And part, teens. are lot both standpoint X,XXX, another any But this whatever. orthodontic

that utilization from there as you our whole penetration, increase we team standpoint so a rates the see should you'll piece improve. And utilization see

Jeff Johnson

shutdowns would year-over-year. said on there's would Is UK I years, in the largely to a that pressures on sequential was market saturate little And was or anyway. then Japan And little China? up? early, to in pressures, you One, international by to kind we the cases Japan ex-China, UK think China, there? in of that all in a the decline think guard driven surprised down, number think just few been quarter to just there in over follow-up UK? a then a look make have what's or there at all what that off or hear number is early caught again, I the room aware China Yeah, a pressures lot going me a tick I more tough that factors comp, kind did are even there little me bit Thanks. that's of helpful. I you would internationally. but But of, number And did that a down bit next to two-parter, maybe sense any that shipped assume to number seem of that way

Joe Hogan

was led UK for Jeff, for last right? UK Remember, answer us the UK Europe grew I'll piece The XXX% last that. outstanding year. first. year, us The

number than UK is. is what that aggregate that sure number I'm higher So

And And indication not standpoint, order international. issue say, but so on the the across from China an John, what have we I'd know… the piece a for you're adult just or doctor the I utilization retrenchment piece APAC the that : that of seeing UK. an UK don't is in in base

impact an able to being have certainly was in therefore, to. terms that and So don't doctors lockdowns, not transact and ship of the just

look, of COVID. that side ship by up, ship it certainly by won't to impacted impact So We from doctor to that was the as But as an would stand. sub-regions. that out break was we increase those expect the open lockdowns international the those are a minimized, offices

Jeff Johnson

guys. Thanks

Joe Hogan

Jeff. Thanks Yeah.

Operator

Mr. Johnson. you, Thank

Our question with of next from the Justin [ph] Lin line William is Please Blair. proceed.

Unidentified Analyst

term? I little a touch the you the good when your bit just you marketing spending decide Hi, in and on Can strategy and to can afternoon. sales flip longer switch? short-term guess,

Joe Hogan

mean as You far or up switches flip down? the as

Unidentified Analyst

Yeah, yeah.

Joe Hogan

in decreased, other around into specific the I think to just we we John, it, it, our And at demand saw we the adults and so what some demand as different are reduce return think countries it geographies. a look obviously, can eliminate I the areas. on dramatically but higher we advertising what don't around it take we pattern in get patterns and in with return mean, spread obviously, we accordance we basically on. the investment is. And our Yeah. a we sizing that feel we business

have look responsible at our wouldn't we'll our advertise it change somewhat we bring rate promote to any in to we but the growing and way at aggressively and order advertise of we base, continue were our customers modify can value to last in in that that be a when we XXX% these year can And over I address doctor regions, to did as so brand drive we to that pattern. this to to demand at lot

John Morici

market. into the we adjust And

marketing that awareness, and even markets, we're economic on, if we business keep how of that and media or sure adjusting reinvest concerns that and if in go right-size right-size averages. COVID dollars make to continue in to to to the Remember, we of and there's So to make trade-off spending to certain hundreds keep of drive as there's go-to-market, that then sudden the in But so overall things, market, we investing still rest sure brand millions awareness. continue between be the right in R&D and things the like make we're able operations.

Unidentified Analyst

more a Brazil, And markets emerging That's helpful. very just sort of India, to like revenue commercial say, operations what sort I five it. would your of there? much years? And Got on how in pivoting you higher-level realistically, guess, I to Any the can guess Africa, in question. update say current regions capture penetration next, those levels you let's are from over XX

Joe Hogan

that's we've really script, And progress really to force we those salespeople well. product -- to patients, India. good remain you put mean underpenetrated, Brazil. see direct again, And a But them to million in XXX of We're seeing right have in have when our capability sell the put it's to environment, that penetration specific question, confident mean, in aren't in in stable is progress Reported sales perform in close. I on huge your that opportunity. even we'll that's they're a kind our This -- great can that And we we talk in so you is ground. continue the the order that line. -- we about answer the out rates to you how the there. way region do We were place. -- get mentioned seen I

John Morici

we're a great sales geographies. those now all markets. really expand into sales in treatment We've company to for And products. manufacturing with that direct got three force planning. We've We've got as global built footprint -- go-to-market that got force

have So middle We you population. a the we're like of markets these built class, growing big all those markets. dynamics in where

people to who for and that. great want got we've straighten them teeth, way got to their a get to You've

as of well as investments. those a described it's you we investments the many because on where markets the some all others, of think those So are great return

Unidentified Analyst

Thank much. you Got it. very

Joe Hogan

you. Thank

Operator

Mr. Thank you, [indiscernible].

Jason with Bednar next question the from line proceed. Please Our Sandler. of is Piper

Joe Hogan

Jason. Hi,

Jason Bednar

Hey, afternoon. Yes. good

to picture hand, year go on signs a Jon then in of did to half broadly point are maybe the maybe more early some the easier year, also consumer. be this and this I mean absolute earlier. guess could for end still of coming in I a US On some be moderation into show to we're second know, Joe, consumer. demand I coming helps some the the downtrend we of clarifying Invisalign case question bit average of half here head But in in So to needs Block's indicator which growth. the don't just going last other big comparisons in reverse market, of into of seem what one days as in parts on help the relation back this of the I'll pain category back go the leading high

more So guess thinking I just does there. of that opinion? you're out ignoring again your in on consumer market that's China again, dominates what the Do easier dominate? some challenge about comps and or the predictability And dominate, and it domestic

Joe Hogan

on career. I like growth, Yes. large in at comps. talk we against a of tougher you easier had XXX% would when a just I'll comping mean, I've mean But obviously, business say, talked let I John one my too. number about, this, you're about comps shot it's I the take

the I'd way again We in it's is issues West, line, consumer we on business affected it or COVID, of somewhat. some a get look COVID outside had Asia confidence COVID I'd look consumer And light so that at. the helps confidence. staffing obviously, but when you whatever, big some way. in say, But the that predominantly the at

to so And to get better. start those start equalize to confidence numbers consumer

a resume in Europe the that of here. from see we ones comparisons means we of Some long-term that means environment, consumers in It lows. look means meet are lot. in report where rate. trend the feel that confidence our those at in I more kind more that a to pace to think years we in all-time equal we'd growth a adult cases We be

John Morici

certain cases… in confidence It's and Yes. overall, consumer

Jason Bednar

I I -- starting totally real focusing and and more I the the on And market, US different last China do and the down the within easier, dynamics APAC yeah, year. was market. half -- would I just US guess, tick they just understand mean, guess I comps get I there. But I all second quick, just Europe guess of comps in absolute did the in

focusing I'd be sorry question just where interrupt. the So be I'd here, to

Joe Hogan

segment Jason, sense States consumer something just all with a give and But look the about I'm more helpful. States, that's comparison what than yeah, about Europe I'm whether PTSD ones stay confidence have the No, talking the okay. I at years. United no consumer are the That's think issue those are we alluded that be those we is numbers, talking in big you both kind that year-over-year. confidence that appeal I GP like Yeah. that -- of or two anything. the to or market too. really we good sense I saying just the too there's the last market, and experienced market our to, the adult Not We're segment, happens going in variant orthodontic that But adult in indicator COVID. of over to we that in that and the

John Morici

products. go-to-market see. in we we add I would from We've QX. to the now And markets got the opportunities world, QX to go think everywhere get and digit market that as that We've Teens and in important teens US of the to the able it's we great teen just into as US. great piece to be those share. is got to get even grow When single be in will more season

growth it's because little offset show certainly resistant will on So at adult more be concerns teams concerns that we maybe side, help can look have. less a Consumer less of some discretionary. that they but consumer teens, that the opportunities a just maybe bit think of up to that bit we

Jason Bednar

revenue doing here. helpful. investors That's and And doing the questions business with it's margin here. lot impact for volumes out just maybe there what quick from follow-up on decremental the right a Okay. of now A

significantly rightsizing a necessary recalibrated efforts that like with moat, that that structure during of helped of widen the for You It's be really branding here. been guess, the And advertising and is a the there It marketing pandemic so -- has I in OpEx what's this environment? added further head to you lot expanded some to might impressive. sounds the competitive that trigger Are necessary? though count. further resets really decide

Joe Hogan

growth any I normally like laid that hire that, mean rightsizing, Remember, we rate. off. -- gone that a when off to we the to means it I to one hear we've sense. so XX% haven't We anything in XX% words layoffs,

And we -- range, our so too. spend OpEx in that is -- and

commercial So, in to marketing. couldn't we obviously, we add? our those, hire range, you you and effort areas OpEx. to go if that that also sure really to we What range, do about is lot a our important it's our engineering at the a business want that didn't cutback, well. about. are we And XX% that line key. -- we call those of normally most from team, Remember, know make We OpEx is revenue OpEx a standpoint of can in and an so take we from that balance our there's John, and we a balance cutback normal want variables care anything focus and on we our we

John Morici

balance, It's and a long-term. short both

balance that But we're to to maximize the we those investments to as we're be still as growth sure return current to out on of want obviously, have look adjust in, we to have, that the make and continue our we the growth opportunities. then opportunities plans, conditions invest making. we'll in So mindful we needed we we

Jason Bednar

All right. Thanks so much.

John Morici

Thanks Jason.

Operator

Bednar. you, Thank Mr.

Wright of from is Please Our with the line Morgan next Erin Stanley. question proceed.

Erin Wright

would should And have here. you're meaningful to the does given this sequential that some area Americas an you? going seasonality control to an another this given ask coming that be But just just Thanks. question where in a I the your under not happen quarter, this or wanted I pickup clarify, want -- for here. more should Great. better teen and given is visibility. mean see why you to area Thanks. does just And

Joe Hogan

Yes.

is second or quarter Our percentage confirm flat normal to John point can quarter down and so. X the growth the pattern between that. third

the kind now of the we're on not is quarter elasticity on focused balance confidence It's there's that third than other second second season, adults traditionally a portfolio parts less to quarter have third based with teens that. of big a But quarter. feel because lot teen So consumer out again, jump right teens from have what but to our level. a we

I'd -- Remember, brackets play. but here. just years. that's for you something we just a this I worked caution systemic So on It's is have and wires that

that have help like the help think mean The is market able quarter and into this. new give to actually holding to I new we're We that several We First, us many teen get and also. with but Invisalign assess products John, new we be up. packs products well anything... have positioned, how advancement teen well

John Morici

our the from expectation else that opportunity, going sequential economic But is to we be we specifically should see any standpoint, able our given an QX, the season, US, in we happened gets US that the teen, in see anything notwithstanding utilization occurrences the should but that growth. QX teen way. improvement from Notwithstanding, have, as get given products, we to given into

Erin Wright

Okay. year, be the Thanks. of that the And how ASPs should for thinking then impact? balance we the about and FX

John Morici

it's obviously, would FX, where think to is dollar EPS. FX forecast was of Erin, tough from has it QX Certainly, to see way the to the FX. We all in go. QX big a down numbers our I in going impact revenue to strengthened.

that of they're now numbers you of look for is year kind play forward the we at take kind that the how think I at that. rest of the and

and overall standpoint, be to ASP from an always think there's puts takes. going I

from so on. different anything and to not market we're we're doing standpoint, discounting So going a how

I mix FX. you have effects they forward what project too rates are see and any through. take of ASP might FX the different some than much But now, be that kind You notwithstanding as come those should then now

Erin Wright

Okay. Thank you.

Operator

you, the Thank Wright. with Please Jefferies. Ms. Brandon is next proceed. The Couillard of question from line

Brandon Couillard

the on follow-up all FX deck. quick details I in very, the Thanks, appreciate It a John, that helpful. is very question.

the ballpark? on operating the impact currency the margin for the is now what in of year curious, estimated Just

John Morici

in ballpark, same. QX over would is kind and QX I maybe op point would impact Well, X.X just look point that full We X impact. margin. point, at at I to about of from X the that saw of the year about look

Brandon Couillard

between the growth Joe, international any of Thanks. business, specifically? American characterize in two then the scanner rate, spending And North color environment of on sort segment and the terms those in you how regions, would capital

Joe Hogan

we start I between scanners and China obviously, trouble And one with selling mean, I'll markets is of because shut China China is our -- China down. Japan had and Yes. in Asia. bigger

looked market as of a I problem, that So at I that so much overall look and as more at problem. didn't COVID

so COVID by will before, as tends to strong write mentioned States, that job there. of, itself. there. team, good And United I demand just stays that out really clear, plus be XG strong the the a if scanner hopeful

side, our liking of overall from the how standpoint. restorative the and all continue an On NERI, orthodontists iTero dentists workflows carries the the at detection exactness like near-infrared for technology

overall. again helpful is look, scanners good get in Americas my big compared in numbers is Europe XX% as what large year. in good I performance services, to our in And piece. I XX% really mentioned was a about, So the with which last installed feel is some I business script and base that the And too, about pretty again, now, feel that

standpoint. now has Ukraine in Europe pressure be added -- It's right wouldn't the consumer year-over-year sentiment just that blinded sense. by on from the So wears I the number But it piece. a

reluctant I think scanner a return position in but a -- -- And market hopefully as see Europe that the stabilize had that our feel more business we'll in starts here, from I good it makes loans. we docs to little about there's standpoint.

Brandon Couillard

Okay. Thanks.

Operator

you. Thank

proceed. Caliendo the line Please from next of Our UBS. Kevin is with question

Kevin Caliendo

getting for thanks me in. Hi,

listen, like no consumer you that, to feel do able outbreaks, see need Do us say, quarter even take we're or to than happen, to be it. we'd at COVID you back before you can your or What see can targets grow So do and be about above mind? or if to So full a we to going at you be forward, comfortable. guys think need for guidance confidence like ex-rate for feel progress the something for track rather term with to we What think this. how the again, we hey, able forward, this? I on going there's We're go needs just it's even or in able back to and of want we hit would towards -- you not to comfortable mean, said, that year, going comfortable come year. still provide your the can guidance to do more what if XX% feeling making it to providing longer beginning or caveated

Joe Hogan

I'll remember, But all don't John. turn it business over of carry inventory of in to we this is, outside first scanners.

a from standpoint. or So week-to-week have to We -- very reflect don't business. little from it's a real-time inventory any business any

ends. it over move to I'll in So mind both but these John, keep early that of, kind feel we, trends that on

feel the feel first. we probably down, it economy business And nature first. by picks we'll As up, it the as of the it turns just

John Morici

going having we out can once our It that’s we quarter. comes we as control to to, China work get they're go, things can more that we just about of that products a control, on on and some do the go of a outside our are the up They're if R&D down investments good way we basis, XX%, direction the or and as manage down. I you that and that they're predictability basis. we're go comes that that, really It making to But we can understanding, better in so confidence it, give feel they're investments or understanding to you I what we sentiment very a forecast. on, consumer lockdowns we to that going able And or predictability that do. in predictability then and control, therefore, manage have going can more return. and have are economies macro good the to to really macro going drive more Kevin, having that how more being to through going to our said, go through thinking look, mentioned come we the right up adding and to And, what like then market on something COVID

Kevin Caliendo

that. Appreciate you. right. All Thank

Operator

Mr. you, Thank Caliendo.

question Bank next Ryskin proceed. from the of with line Our Please Michael is of America.

Michael Ryskin

where spent sort of follow-up But for some pieces Kevin and moving the forward. the well. of have if if one asked it a job that Thanks goes impact, sort to we before earlier going and recessionary mean are ones, better. sense is the was unemployment there the Great. discussion -- we kind when I quarters get taking of hate the is other can the pessimist improve. impact of of consumer was some consumer inflation just that well, to of losses lockdowns on as start but of up a get But things thing. be couple the question and lot to things consumer I confidence about is one of, happens talk about time for worse I China and and thing they guys. higher, accelerate, what a scenario things here, on in had, another brought talking as sentiment should there confidence side the next

the in and through six be little also what's plan? be levers bit the have going a other business? you it you you the of materially the that impact the view how months? pull think of likelihood if what's consumer the over of sort And happening, your quarter the get about in three talk the worse to would sort next to will What game response on can So you for things to Europe costs in You talked controlling would Americas the nine already.

Joe Hogan

seen to adjusting Look, It's demand used -- we've business sense to the is having. lower business of I think than been feel Joe. I a that responsible the signal you've in the

growth we you we've I'd could and come saw I We run in and same We see this This happens the the us to from when we're and cycle. COVID responsible is down mean we from that way. been business where treat economic standpoint. I think from just economic that March hit we'll If through there. it out that but to a it standpoint the worse, ran of whatever standpoint it business, making respond business way a gets an the a look, adjust know a from businesses -- that, get John business, I these sure of worse we XXXX, and say way as how how a is in business. of whatever cycles. in operate growth conditions

John Morici

able result, to these a company as we've a balance story, to these and position, grow. have a that we And make the opportunity be have huge know you the cash to end, able to the been we all fortunate in And adjustments. as the other. sheet We're have

worse. way. in it others Joe this have what and said, get like many our is say And just could You

a We to our will into economies positioned of has to XX in what's standard have the term. a when the of be to we're just will We this And able -- term play and improve. balance we're next short short-term on hope things but that market, happening play able to to a realities hope that's to better, lot We of that well to do now, what with being months, whatever, balancing get grow that just be year out Invisalign this based be got out in make get the could goal and we that evolve. worse And have able able that better. of to short long-term to things those things the -- care. right be

Michael Ryskin

can March. progression relates will any you maybe just America's I Great. course you July. it On probably that bit of sense XQ at again, down But early walk-down focus realize some That China through if to and from some in of can. XQ, slowed FX and on in playing and of role. that the gave And end the Kind and if could be things being the June, Any is on you both a quarter, big pacing sort China helpful. worse. seen through give a quarter, gave you've XQ? comments just lockdowns the sense as get And July, between quick on or April of through FX follow-up, the kind on signs comments the of trends

John Morici

Yes. No, good it's question. a

at you you you and a so was if on, you about hit or there you So think specifically in can -- everybody the based rates look an an When some and FX on, talk so of those. FX China, on a like overall to can talk project and COVID changes impact volume. the the look lockdown It second the away, we see in a in see first that picture, that there's but lockdown, in in where every it come have the for that China. we've us. it's we in back. And Where quarter, starts happens lockdown seen quarter, happens -- we saw goes place reduction volume

say would lockdown of I think And as I I is us. it's lockdown, for do to more. maybe see some of I So not what when US when bit favorable that's for think you We the a start think you stabilizing China, look part go you you US, is back. things from volume at the to around -- your -- see little question the think of come

in and the US, seeing have it's US through QX we you QX. of think in ideally when as QX. for from that places, think the into -- us benefit pretty And at other but that programs that's team on what helpful with and the products You're similar the QX teen to to we look exited maybe I we some focus we not go comes

Michael Ryskin

Thanks. Okay.

Operator

Thank Mr. you, Ryskin.

to the Shirley call have question-and-answer back will We our Stacy closing for reached over end session. I now remarks. the turn of

Shirley Stacy

look and operator, to and contact And you joining thank Investor day. great have at you, you, Thank speaking us Have Relations conferences meetings. for team. We industry to everyone, follow-up you forward questions, our a upcoming please any financial if today.

Operator

Thank Thank concludes you your you. at today's may conference, participation. for now this This disconnect your and time. lines you

Align Technology (ALGN) 27 Jul 222022 Q2 Earnings call transcript