ALGN - Earnings call transcript Q4 2024

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Operator

Greetings. Welcome to the Align Fourth Quarter and Full Year 2024 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Shirley Stacy, with Align Technology.

You may begin.

Shirley Stacy

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

Joining X today's fourth and audio and Business at John our year me investor.aligntech.com. and on financial will Wire, Morici, month. President for XXXX for call on website CFO. be call which is Today's is archived We our today conference webcast issued results quarter available full Hogan, and approximately via Joe website CEO; being is

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

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

Joseph Hogan

comment provide and views on our highlights quarter joining Aligners. operating financial On few for will more call our X System fourth provide year discuss for our overview and today. our and and us segments, Shirley. XXXX. thanks of afternoon, detail Clear our performance Thanks, Good today, I'll results John on from an Services a full and

Aligner were points the and outlook, back with Systems both pleased U.S. of lower as October a due volumes, remarks. margins our than line non-GAAP impact Clear currencies few foreign to and Clear strengthening QX and late Aligner QX that major to that, John our I'll questions. I'm and total against revenues the Services operating unfavorable outlook. in QX summarize revenues, were Following ASPs were of open come explain to the report primarily outlook and dollar our call key GAAP December, will the in his than better QX through from QX from exchange

America. channels years. and basis, Clear revenues in Aligner and $XXX all driven From reflecting APAC ortho volumes by a the Aligner across Clear number and EMEA, with strength basis, year-over-year quarter a growth year-over-year of regions, Systems with X.X% and the increased grew volumes XX.X% a from in utilization Clear a X%, LatAm amongst On of a On and revenues shipments in fourth North the past million submitters revenues. from highest channel stability and in perspective, GP regions Services were up Aligner basis, growth few year-over-year increased X.X%,

APAC, orthodontists Across growth mostly a in offset basis, especially Aligner On Lumina fourth Aligner teen iTero of scanners reflects quarter region, teens in GP dentists and revenue EMEA Clear from quarter of as volumes Invisalign X.X% as patients in in sequential the which the growth well by strong sales growing regions. continued seasonality the from increased a China, and had LatAm and Clear from QX. momentum

orthodontic the adult For reflect in channel, Aligner Americas, seasonally strength channel segment. GP volumes a in the Clear soft somewhat QX the offset by

X.X line X.X% our and of operating up above margin in were $X billion full million volumes both year-over-year. Clear XXXX the XXXX For year revenues of of fiscal We with non-GAAP delivered fiscal cases outlook. and XXXX XX.X%, Aligner XXXX, total

and over million kids aligners billion As trained billion manufactured teens X.X Invisalign patients, X of we cumulative over QX worldwide. Invisalign achieved XXX,XXX 'XX, including and several clear XX.X active including milestones, practitioners,

trends From East EMEA improving strong volumes Middle and in Clear teens, in volume markets. growth In by a as Eastern Clear strength volume reflects in QX Aligner year-over-year as India, as well Korea. In Clear aligners region, countries increased adult our well and year-over-year Japan, especially ortho GP volume and region, in and core Aligner well GP strength North from emerging reflects for growth as and Latin kids channel year-over-year Thailand America, by led driven in EMEA, the growth Africa reflects QX clear Americas Europe, from from America Europe APAC growth well For the perspective, as QX, as dentists. as was growth EMEA APAC patients. Aligner both as China strong growth

in doctors doctor submitters reflects increased both we volume and reflecting aligner record a fourth and in clear worldwide, primarily quarter, in growth adults patient also and utilization segments. for the both QX, sequential noncomprehensive total a growth cases. APAC channels QX, XX,XXX increase submitters For had in

treatment aligner pleased the In and we're In regions. with Aligners teen Clear adult the and kids clear see all segments, both year-over-year across started sequential segment, approximately to XXX,XXX Invisalign teens First growing X.X% growth APAC kids decrease quarter, record the teen regions. season year-over-year, during of EMEA an regions, across the of from off a and especially sequentially fourth Invisalign in and growth a X.X% increase QX reflecting and

growing submitting number kids for strength patients. teens and doctors QX, continued by cases was doctors young from year-over-year, led treating starts kids For up of X.X% or

Expander Clear Invisalign with drive consumer Aligner along million marketing young the X sales compared -- XXXX, for for systems a teens for adoption and to Invisalign shipments total a Total Clear Invisalign year. total programs, to reached for of case up the and approximately year help and as XXX,XXX continued kids shipped Teen-specific momentum cases up First record kids fiscal Invisalign and globally. XX% to the comprising and X.X% X.X year prior For of Palatal shipments Aligner the as

and other also in adults completed Both and Regulatory we growing United the steady most teens territory. by Palatal in North Agency full Expander to us enhance or of Expander surgery techniques. EMEA market are in commercialize These the most orthodontics applicability, Expander approvals Invisalign and momentum is approvals mark Palatal overseas adoption First, medical enable Invisalign Invisalign Expander and was of America, milestone Products for Invisalign for shipments. submitters system in under did commercialize In required. First Palatal children, with quarter, trajectory a Palatal like with significant to outcomes followed doctors and our or which the received continued the Invisalign launched for efficiency the and year regulation the Palatal the including Healthcare Medicines major Invisalign across clinical approvals the broad region in we XXXX. XXXX. Kingdom regional country-specific In registration Invisalign device require and efforts QX, in to the But CE with mark Expander During availability in not to similar Europe patient first of its regulatory

of patient the an by improved to Dr. continuing We well Palatal are Jonathan to advancement. JCO, establishing article progress have published recently made peer [ effectiveness Nicosisis as the review mandibular Invisalign Clinical clinical of been which Expander efficacy of Expander, the Palatal in Invisalign published ]. multiple cover as or the There and Journal make and experience on Orthodontics, of studies

Expander to the traction Expander feedback, feature. article, the user-friendly We also Invisalign among parental Palatal Palatal is its Overall, reflected Parents Reasons orthodontists patients "X are gaining receiving Invisalign positive due in and the design Love System." innovative system and as

will data gain and become clinical continue with grow. parents becomes device the practitioners believe experience to informed, and available more adoption As we

continued countries DSP, up Subscription year-over-year, which non-case growth in QX Non-case in to includes retention up Europe DSP primarily most in or education, and retainers. Program, our aligners also non-Invisalign getting our touch-up Program, patients to retainers includes XX North launched e-commerce. due were revenues, Doctor clinical is and cases, and Vivera Doctor Invisalign accessories in and ordered Brazil. training, to was including certain including currently recently and available our America stages Retainers, revenues at Subscription

total cases more were cases. year-over-year XX% For DSP Invisalign touch-up QX, nearly up XX,XXX than to

Doctors XXX iTero doctors customers as sequentially strong in up scanner partners, driven to clear DSP shipped Heartland continues fiscal For the practices volume it's members' invested DSO regions. over to Dental, across DSO sales in compared growth XXX,XXX, and largest and were DSO all XXXX, our by U.S., digital globally. DSO our total cases XX% had workflows. And aligner in reflecting business increased year-over-year, from growth outpace end-to-end retail The also touch-up XXXX. Smile their and

goals. products model the million completed of vision practices DSO investment profitability, of enabled as of encouraging of equity has that services times and DSO tools different with Those orthodontic and working with Align rich the exploring digital furthering providing and history their our well strategy on a our adoption to a are XXX recognize we developing vision business than on DSOs affiliated we in locations entirely more experience that with in focus a Smile $XX by and their technology focused focused delivering digital orthodontists make model. the in the strategy Doctors, and the of business has better patient customers. We're DSOs Smile aligned to efficiency and patient growing Each Doctors DSOs as that share platform, that the largest our workflows by cycle benefits for and with increased U.S. dentistry. shorter digital collaboration allow proximity and continuously December, In states. XX up and practice portfolio including care,

forward a with be adoption Lumina we're Lumina XD looking orthodontic we were workflows to On QX with launch wand Services growth iTero we quarter, scanner. up year-over-year launched Systems a on upgrade the or Services. its revenues XX.X%. another restorative to as strong scanner, of revenue the and capabilities. continue basis, as a success Overall, Systems very iTero to of In the QX new Lumina scanner with Turning from of building iTero iTero pleased the sequential QX 'XX, Element with was scanner with and Plus stand-alone ongoing and X.X%. our

limited During and the our on feedback iTero software fourth scanner, been doctor began outstanding. quarter, we release restorative Lumina a the of has market

that iTero can Our to turn update to that, our it continuous to of knowing dental the automatically John. of current the will once available of the Lumina over now worldwide. mission call With purchase today, the unparalleled deliver represents and free end professionals March. version in Doctors new customers to advancement Lumina at to becomes iTero charge it scanner version continue innovation I'll value

John Morici

Joe. Thanks,

revenue Total volumes our in reflects quarter X% QX currency results. QX X.X% of financial from Aligner corresponding On 'XX approximately revenues by approximately year-over-year and favorably from prior up Services or a from quarter sequentially ago. year for up and sequentially were million up X.X% by and sequentially the Now Clear X.X%. approximately This X.X% or and million the fourth and unfavorably $XXX.X increase an $X.X impacted X.X% year-over-year X.X% were impacted XX.X% for $X.X revenues quarter the million, a year-over-year. approximately growth and Systems basis, constant were

$X,XXX and quarter-over-quarter results, spot higher per due lower of net lower of a or Even QX our case by revenue sequential guidance minor deferrals, did from basis, 'XX higher discounts, was up mix approximately sequentially, deferrals. mix by substantial million approximately not $XXX.X products QX favorable Aligner lower-priced partially favorably higher to by to shift from had shipment revenues countries rates. Aligners, foreign any geographic forecast were revenues impact X.X% exchange net from to were October volumes, geography the shift on $XX and primarily Clear million Clear and X.X% mix and a Aligner $X.X 'XX though offset exchange by shift foreign mix lower QX partially rate reported product FX discounts. change Clear For on product higher-priced sequentially. impacted primarily offset QX our

If unexpectedly dollar October approximately million. Clear U.S. November December. would rates December, increased then equivalent or foreign and However, strengthened $XX the Aligner remained in for had have exchange of November and $XX constant ASPs the in quarter-over-quarter,

from mix and geographic and reflecting mix of year-over-year impact year-over-year unfavorable higher basis, increases higher geographic price primarily deferrals, by per foreign net case and of deferrals non-case lower on mix. increases. lower-priced 'XX shift $XX of products QX VAT and revenue million offset was Aligner to $X.X revenues offset X.X% $XX, of were basis impact approximately the volumes, partially Aligner Clear net from revenues, On discounts, lower up ASPs, partially product QX Clear product and price a or a U.K. $X,XXX higher exchange due by down lower shipment the to X.X%,

us cumulative regarding VAT During reached during $XXX period sales of authorities of for to million QX, of full unpaid with through $XXX from authorities. the settlement a clear assessments a received million XXXX. tax for U.K. approximately made aligner October October refund QX, In we favorable This of XXXX relieved outcome U.K. potential we mid-October the through tax this related certain also assessments XXXX. any sales

dispute. to up for we still As of a that result, million in approximately are periods have December VAT $X XXXX paid

ruling U.K. This expect that clarity We aligner continue required is to be will by also XXXX aligners first from VAT amount. whether a the be in We to a applied forward. for that. U.K. remaining ruling going the half the XX% give to of this clear should courts in sales clear all exempt believe VAT

Services partially December as Clear Aligner nonsystems will and contract. sequentially rental and were primarily were Systems revenue ASPs. volumes, up Services up of sales shipped $XX.X QX XX.X% X.X% Systems a related year-over-year and Systems by to $X.X upgrades volumes, and foreign to the sequentially. exchange sheet to additional due as million, deferred and nonsystems scanner X% million lower higher XX, million by year-over-year Systems balance approximately programs. revenues Services XXXX, QX million ASP impact million mostly or 'XX each decreased impacted foreign or of be QX primarily recognized were on approximately higher 'XX by was revenues, scanner leasing offset iTero under X.X% and the unfavorably revenues sequentially, or year-over-year, and revenue and On $XX.X scanner are $XXX.X Lumina exchange flat higher upgrades, 'XX due of aligners higher X.X%. basis, revenues decreased revenue driven $X.X increased by approximately Services

and to Systems revenues, was XX.X% and X.X% down or of reflects ratably sheet decline The primarily which the sequentially revenue service Services over duration down both revenues are million period. deferred the service in deferred recognized $X.X applicable of initial the year-over-year, sequentially $XX.X balance or year-over-year, service to contracts million shorter due the primarily recognition scanner purchases. and on

Overall, lower margin costs, fourth year-over-year partially margin quarter was restructuring Fourth Aligner offset fourth exchange not by was gross points X.X X.X margin point to foreign down sequentially and was on aligners. manufacturing gross by impacted to costs. year-over-year. was lower foreign down the XX%, exchange gross primarily by total significantly quarter restructuring margin on Clear Clear points on significantly basis. gross or margin. Moving quarter year-over-year lower gross to Aligner Clear overall a and up gross X a sequentially due and primarily by costs, margin partially was due not sequentially for for offset sequentially XX.X%, flat Overall, the year-over-year due or impacted additional lower Aligner ASP ASPs basis.

manufacturing points costs, service due Overall, year-over-year and XX.X%, scanner efficiencies gross freight and manufacturing due freight lower margin partially points Systems sequentially Services was fourth ASPs. exchange X.X offset on to Services up Services and foreign fourth Systems a quarter for the lower and basis. gross for and ASPs. impacted by or by was up X.X and lower the to sequentially and scanner costs margin year-over-year not Systems margin was higher costs gross quarter

primarily $XX.X related up to were due due basis, impacted increased X.X% QX operating XX% severance $XXX.X QX higher million, operating charges a expenses sequentially sequential million were to On and marketing million, higher expenses anticipated. restructuring for than restructuring $XX.X by expenses. up Year-over-year employees advertising costs. expenses primarily and year-over-year. were to operating restructuring,

were On sequentially X.X% a non-GAAP $XXX.X operating basis, million, year-over-year. and expenses up up X.X%

operating resulted sequentially quarter fourth impacted foreign in favorably X.X an points margin points down points by $XXX.X year-over-year. down of X.X operating points Operating year-over-year. and approximately income of million by and X.X XX.X%, margin X.X of exchange sequentially impacted unfavorably was Our

foreign approximately investments. partially higher $XX.X income points margin 'XX, non-GAAP was of $X.X and X.X by offset points and sequentially expense compared million of margin gain the movements operating was million, in operating GAAP quarter to an on QX and Interest restructuring primarily due to X.X XX.X%, other million was year-over-year. on unfavorable $X.X of fourth for up interest exchange effective net expense income income X.X The points. down QX and

was third in than and quarter GAAP 'XX lower quarter On gain a investments. was due interest fourth due the quarter in exchange the compared by partially deferred year-over-year effective adjustments primarily reserves, offset prior higher other XXXX, tax position quarter quarter basis, year. XX.X% adjustments rate tax tax third in our was fourth rate The release income rate foreign expense tax XX.X% interest reflects on rate offset tax rate certain GAAP to XX%, tax effective onetime the partially to due onetime QX fourth non-GAAP in unfavorable million of effective effective fourth the effective the movements, projected tax and income certain and lower income by offset to in rate and GAAP primarily to prior the effective fourth long-term was certain quarter quarter $X.X The of the the unfavorable quarter compared year, jurisdictions. by uncertain tax XX.X% in deferred of QX reserves, primarily foreign foreign On position the jurisdictions. tax release fourth rate. the than which tax to was tax a -- of in non-GAAP partially of our The

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

amounted impacted to U.S. Our was certain On sheet per to year-over-year. net for QX of accounts. income related fourth revaluation to up approximately QX net unfavorably the quarter, share diluted $X.XX per losses was $X.XX up by a $X.X stronger dollar, 'XX exchange EPS balance non-GAAP $X.XX sequentially a and which diluted share the 'XX basis, foreign

balance the to on sheet. Moving

and balance, $XXX.X and $X,XXX.X December by and the million U.S. equivalents in $X,XXX.X held our XX, million, up $X million cash was our of XXXX, down $XXX.X entities. year-over-year. cash international million held Of million As were was $XXX.X sequentially billion

through million market plan we 'XX, of stock a $XXX repurchases. initiated to repurchase During QX our open common

$XXX.X January of of million. million purchased $XXX XX, aggregate As completed XXXX. shares price The had for per in $XXX.XX average remaining an was approximately approximately we of X.X the December million million $XX.X at XXXX, of of an share

repurchases approved program available repurchase stock of XX, under common stock XXXX, XXXX. $XXX our in of As million our January January of for remains

mentioned we Doctors, sequentially. during QX receivable Joe in the investment accounts million balance As down completed organization support the in earlier, the a largest $XX quarter, U.S. Smile million, dental ortho-focused $XXX.X equity was

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

time, to the following I'd XXXX On I pricing average around aligner the same and tariffs. new QX provide price processing orders, non-DSP EMEA and context outlook, aligner clear potential will for XXXX, from aligners like in clear Before X, our the and will clear to past orders March Americas $XX cases list X% remove the fiscal of all to At refinement on turn the by about new and per $XX order new Vivera raise we regions. fee cases. we all

expect on these We effect be actions ASPs X X the from net to XXXX. for

U.S. clear remains situation eventually and locations. manufacture currently new The go customers, U.S. international our in with to fluid, tariff aligners in ship for we will effect the tariffs very primarily U.S.-Mexico to other whether the future. the shipping to into are unable remainder We Mexico predict them and

events monitoring are closely. We

labor, COGS Clear Our material, freight overhead Aligner include costs. and

applied planning other costs. incremental costs, an include treatment shipments tariff, and prices implemented, to transfer We to overhead the expect freight U.S. and These would to not Mexico similar prices transfer if from be

have flexibility have our business. support greater over several operations and years, to the global global evolved Align's we significantly past

from we incurred, U.S. viable assuming from from we more shipped a clear tariff new it aligners still economically Mexico, Mexico Polish freight additional shipments facility. costs to -- variety due incremental However, ship including our would a the factors, be where the the for to of XX% to U.S. on to U.S. the believe

we China the fiscal a outlook. XXXX backdrop, products customers foreign benefit QX no in the we China, circumstances currently in Regarding including manufacture With new following XXXX, and for occur and of our our China. provide tariffs, control, our as exchange for assuming that beyond

and foreign million We the due $XXX expect historical be QX $XXX current reflecting lower QX, impact at exchange from spot rates rates range QX revenues of capital the equipment sequentially from down worldwide seasonality. to in to sales, million, to primarily

volume unfavorable product expect due exchange We QX down up expect at Aligner sequentially, as noncomprehensive continued to Aligner sequentially Clear QX be clear to shift mix and foreign well be as primarily rates aligners. to slightly to current ASPs spot Clear

and of Lumina In timing commercial revenue the Services addition due software, expect scanner is end to our March. to sequentially to seasonality, down iTero be availability we at expected QX of of which with Systems restorative the

be current margin points, expect spot GAAP XXXX at foreign QX rates. XXXX unfavorable to QX due X to margin our exchange primarily We by operating GAAP approximately operating below

operating We approximately rates. non-GAAP by non-GAAP expect our due exchange foreign X margin current XXXX at primarily margin to XXXX unfavorable QX to below be QX point, operating spot

in unfavorable year-over-year digits, the fiscal XXXX XXXX, spot to exchange current of single low points approximately For we expect at growth revenue which foreign X be rates. reflects

approximately year-over-year Clear to compared XXXX in digits expect to mid-single growth Aligner XXXX. We up volume be X.X% year-over-year up

to We down expect foreign shift aligners. noncompetitive, product to year-over-year due and ASPs clear current to XXXX spot mix rates be noncomprehensive exchange unfavorable Aligner at continued Clear

Systems expect year-over-year than revenues. Services grow revenues to We Aligner Clear faster XXXX and

We by unfavorable partially margin above impact XX.X%, to exchange expect in approximately even of X GAAP offset which give us we we expect XXXX restructuring XD to QX non-GAAP benefits reflect approximately XXXX, be foreign our in at from took actions margin fabrication scale and XXXX rates, manufacturing. the current improve as margin, printing spot next-generation and both operating GAAP direct the profitability be margin operating accretion operating we to XXXX points

and We of $XXX continued expect be building capital construction as between expenditures million. fiscal as manufacturing in support $XXX in well investments and Capital expansion. relate our improvements, primarily XXXX for to our expenditures capacity million to

no and and of we XXXX year margin during in common million improvement. and debt and our billion from repurchasing After quarter business continued approximately growth, XXXX, our Systems Align stock $X.XXX $XXX of Services cash with operating the cash submitters, the fourth the continued -- equivalents. our year-over-year results, concluded the we pleased Clear fiscal Overall, volume I number am record and Aligner particularly with our momentum

always, as to to Our deliver value our is shareholders. goal,

I'll turn back the now I'll Joe? turn call comments. Now to Joe for final it over --

Joseph Hogan

In and closing, progress full record million, year of that year that shipments worldwide highlight record Services the teen total delivering was Thanks, revenue we the of adoption just both is in grow, patient billion, System of total and introduced business. $XXX off growth we down want $X revenues in solid to worldwide drive few with a teens John. shipped continue the best growth X.X we in and experiences treated, equivalents and in XXXX to, customer good million for million for industry kids. over and XXXX in repurchasing with a in year, XX.X with patients doctors million. In about in teens cash utilization. to We and total dental we the excited I X.X the another will to that adult industry. $XXX innovations shares practices where building ended after I a and markets, on full and drive innovations year where that record continue feel focused efficiency Align I'm and Record are year XXXX of committed ended billion to the kick year XXXX the XXX,XXX introduced team believe across and million the $X

QX scanning, breakthrough that smaller Xx unveiled superior and intraoral In field a wand XX% ortho exceptional help end restorative visualization of to accuracy enable efficiency the efficient Lumina to technology, with and the January workflows. outcomes. faster software delivers wider practice greater the restorative restorative workloads scanner iTero introducing XXXX, practitioner intraoral and orthodontic at general of to with dentists for Lumina iTero scanner we capture with capabilities 'XX, deliver higher and forward We look a

capability the patients since communicate doctors take part accretive the so of product give front time we've platform, on see that to can good smiles iTero digital Align had would It's The end iTero the our growth scanner patients and that and it and run a of its the to launch. algorithm, them simulations the designed outcome. Lumina margin the big to with is their get also scanner

to plans and this minutes, of delivering personalized level out digital treatment we'll for customization bringing to rolling digital planning. building an doctors started year, in also preferences based We doctors workflows, speed unprecedented expand almost ClinCheck which treatment touchless treatment on more

can how treat opportunities. biggest our paradigm the patients for doctors growing Changing X is of

to younger potentially As need overall. doctors we teen continue the treatment younger more of decreasing and that a achieve treatment ages, that of innovations orthodontic help deliver at amount patients

As first direct common direct system, solution treat a anticipate for we to Palatal first direct most commercialize set the Align's that with First XD-printed devices skeletal pilot doctors of in provides printed a next in growing malocclusions Invisalign introducing dental continue the Invisalign of children, and series with the device XD-printed to we Expander XXXX. half a the in retainers

II We have also release, [ Class in option have the younger Invisalign mandibular ] while correction patients market strengthening limited in fuselblocks now better for and a advancement with patients doctors giving simultaneously their team.

It's driving digital opportunities unique to from ability as to in more knowledge our and that for anonymized growth orthodontics approximately our And whole industry forward. continue motivating the about beginning. million team. XX.X of year, Align gain to the a margin we're improvement We're about aggregated at to focused while company in way, same cases of orthodontics exciting and future the the now move the science and the also leverage on while we're data excited just XXth Invisalign

With that, continued progress on I your thank time look I updating you for you to quarters. the coming forward over today. our

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

Operator

come And line [Operator from question Leerink will our Michael of Partners. Instructions] from Cherny first

Michael Cherny

on breakdown dive of especially of about the for in side. the to guidance, just But think to about mix the the of Aligner bit clear any already. 'XX a could Maybe the uncertain Hear you growth a comps as you on dynamics as bit whole, and in there ton what's a a Is macro more obviously, loud still on the an easier especially you versus curious price? volume how Clear Thank give think impact FX. coming off to dynamics if environment? I way on aligners ASP detail of, a versus little from

John Morici

year, up total look kind on. varies pleased the John. XXXX looking about year. different kind year. guidance at that. for this clear is for and It at looked had, But We the it of we and it we we're the overall different aligners so we give we how that's that's the and times year exited that's with across talk When does -- with Michael, and digits, the at for and volumes of of we the we have regions mid-single that Yes. that in we've for the at have volume picture the that perspective way, like that were how the

Michael Cherny

lines number. volumes, those And are other dynamics in of market mid-single competitive How think competitors on either really now? do solid along the there opportunities the just you the terms digits, a exiting? terms in of what as And in be market about to great Or that think more break about obviously that would components do dynamics, gains? number Anything strong competitive you down of dynamics, how share well. drives the obviously,

Joseph Hogan

Michael, Yes. Joe. And it's

think before. put when the I innovation XXXX the users productivity Overall, continues us Minute level feel dynamics ] super on you Obviously, competitive all look drives new and big ahead. ClinCheck our of to I our the don't change a had we they in haven't a [ dynamics, see really at XXXX. to

world, competitive So all it. feel really areas ability the including specific some I about about good around including our China,

momentum as really So we're sense. XXXX, I gaining into feel that move we that in

Operator

you. come [Operator will Anderson Elizabeth question next Thank from Instructions] Evercore ISI. line of the Our from

Elizabeth Anderson

the things. talk up scanner quarter. launch -- sort coming could I and more looked business to the have were regards of X like obviously you broadly, in the Lumina was first wondering about you if Maybe it the as you

non-DSO the what versus Can you that bit America, if maybe capital unit maybe side And growth that sort X the like of also understand a and us So equipment think some a customers. expectations the in leases on could of better how Lumina? maybe your impact, obviously, for thing talk would of sort of you're about us given you that of of versus you more two, if on little maybe of talk on the understand you've be I business? for that then perhaps talked in a thinking basis, that, dynamics, sort would bit sort could about particularly ortho And then you about sort North helpful. growth learned things help little sales. be DSO help that

Joseph Hogan

I'll it the your product was we you the in question. was I we of optics. about field speed. wider of what about I orthodontic view, lot would part at of Joe. take talked be. it's everything Lumina a When talk Elizabeth, the the learned hoped didn't first a look the release

had because important ] of the in on of a the sense image we [ in line. all of kind and was wand and use the confocal heaviness So that product now, the is quality the of day The the particularly that imaging the technicians right lightness and lot really in bulkiness the the side. fantastic that the wands past, of complaints on out day in for are that wand marketplace

GPs the the as GPs orthodontic had So remember, line do they restorative more complete of the of This year, take-up And not that because we move can whole for on restorative marketplace, side. good product the system had that using -- it. just into we the they a will work last too.

about bringing forward and look talk launching it. the through excited you to looking it. second quarter. IDS, in at up to We're So and we'll coming we're it it March we then the Obviously, about forward

John Morici

a this types your advanced We've to down Elizabeth, got certified Joe the said, second the kind products as of our all of to of scanner most preowned. way that from portfolio the we out latest complete And Lumina and have, the part to question, rounds with the portfolio. other all look,

so leasing rental, options our but you also, customers. other lot that and a rounded the of And portfolio we for as we up, is offer mentioned,

they'll some trade-ins just Some do on. environment. and so and to great, or that's that add customers buy, especially another equipment, that they buy capital scanner equipment, that want also this up, But to new and in want want legacy don't put

different it. them financing equipment offer we that to them external lot lease a So for to a that rent some opportunities gets or at to rate purchase, just external to good of want use financing

equipment. business. on. for base, like that to release can offer our we overall to pre-owned our continue we and in utilize And surf so ] any new which be as products, that We're is keep we so expanding feel we able just customer want which helpful to they [ way our And

Operator

will come the Santangelo question Next of line Jefferies. from from Glen

Glen Santangelo

is bit the ortho that Or the put industry think 'XX, but on DTC if that seems improve and because you pretty in you forecasting anymore? background, of about I could just just I'm uncertainty, follow curious, what's volume kind curious the into it may industries fourth macro follow-up you the overall to into think? decent was like faded where like think also this you're I'm volumes. you're that John. then talking I context a back kind XXXX, some had offerings some up because get want Joe, 'XX, And really not your quarter these share of of you theme issue in like feel be little now? you're for Do getting volume, a enabling better? And is kind And the maybe of some in of you you the in to

Joseph Hogan

it's Glen, Yes, a good question.

And we talking think of I too. while good stability are what X in seen. a that felt for think again, different we've platform we've stand about been the on -- Europe regions about saw there, Thailand increases I a We Each from fourth these Japan. momentum also. different China and and reasonable in mentioned China the And different I region. parts sense, APAC felt mean, We in in some and different APAC of I in about quarter. now,

been the flat has the really States, come to for you X When United marketplace, Glen, years. last orthodontic the

they're I the been we've much it's -- Now progress, we competition challenged it But been a good difficult they're as that kind progress and really wires looking throughput, with them had. made in not would of are I when segment. so when I call of new marketplace brackets that wouldn't less products think And we've to it's with margin, regression to appeal sense. in capacity patient aligners save that doctors clear that seeing and to in because at

really and on but that, the U.S. not over the all growth the good just we've world, good GPs and counter in of seen in in progress Glen, us. But that's really helped

changed channel insight into And our went ortho, areas. too. give I sure properly GP our we remember, force helped the that's really ortho with so channel that those ago products the to think and strategy GP us industry sales for force, years with to we the and both sales make position And us to

So question. your that I helps hope to answer

new our I us too, of technology, think confidence. lot a gives

the that we We community a offering in orthodontic you'll we channel and Specifically patient we move sense in have talked differentiation, the into X my we since something I feel that products orthodontic special in as the hard those piece, in have mentioned younger see push early of patients really XXXX. feel that's script, about. that us we

Glen Santangelo

shift. unpack is bit a I'm missed in And issue, John, to I was awesome. here be on with this And us on -- That's the highlighted you this, highlighted obviously, I FX right? focused fact will is ASPs everyone much maybe just sorry tell you that that ASP how ASP exactly role wondering a I playing down. up if could mix little you you FX and just and that could if if mean, 'XX? I number follow on

John Morici

expecting just at out on forecasting guided, saw have it that about it basis. year-over-year be about to now a a XXXX basis. X good headwind be is December, question, strong, January. a October of when of strengthening and dollar. impact of unfavorable we've we Glen. came the basically we FX year-over-year how rate That's in continues and strong as We're points see Yes. a what that spot on We on points November, we Yes. it to of It's standpoint the and X Overall, look terms

Operator

Block [Operator Instructions] line the of question come Our Jon next Stifel. will from from

Jonathan Block

Hey, Joe.

at of moving versus call guidance an think up to XXX the and is then XQ guidance worried around I single down comp, And The ] the embedded sort And is about a the one, the X% is then is I cetera? things digits. some people First it low sort full that guide? timing, of midpoint. the year [ low you pause the just an believe the Can X% be Or it XQ revenue arguably revenue Joe. But scanner is And [ I you assumption digits mid-single what I'll pick the of like to think is, and again that the up you're the follow-up. reasons of to are launch, ] launch. rest 'XX, in again parts would, I question, why ask going my Resto year, also other talk Resto the there guide? the it's about comp, down I'll there et it's due if up, important of think

Joseph Hogan

accurate that of your the a overall. we're quarter, say March, about comments restorative introducing in of you're the we in talking first go through I as full John, in obviously we not reflecting sense we get would I'd the don't the benefit say build scanner and the year. in that

explain to coming full this have on that But of baked whole you in think a year. overall. have how IPE at exchange a and we've I look year in thing, of can sense in a obviously, John you that

think we'll another too that [ regulatory ] the hit grower have is of with deal think be is with different advancement Europe going that plus We and for specific for blocks into to we X end And and we also. too, Asia, may mainstream going us parts approvals in too. that a

new tackle pretty have how that much So rolling technology I that's that mean, we in. I'd is

also. John, iTero You coming would in have what the add? you And restorative

John Morici

We it out in a the just overall year-over-year we're not basis. on I in there. X did X% And mean, Jon, If years economy. we're Yes. we business. great, improvement came of seen not that expecting macro QX, be that see as that's the volume growth any good highest happens, QX, growth in we've an expecting, entire overall will the the in for improvement But

that to be want able to We that we're doing we So with momentum. that. to to that's products, innovations, see Joe ways continue market can said, see. go new continue new like And to good to to new everything

Jonathan Block

at DSOs. on I head it from balls And Joe, think, is, got second quarters X, for it, get a couple basin, you detail, we've more, maybe you. on XQ. the I heard question of that. beat call No, least for just the X for But this Yes. now, growth faster then

practices, help. more they you if would fragmented transferable something be the manifest if plays part I'm a that it, of DSOs is as about. on Joe, how long -- not with my growth if so, couple and to of those, excited individual marketing North are the -- to just part? But the with could we've extrapolate questions market? your that GP And pardon your us and of you get some be that what those the sophisticated go give Are -- American Because to more importantly, run your what ahead support clearly, a your is so -- you call heard And a that number? to certainly, could take might rough DSOs, business, language, the the of faster and here. does positive this --

So your weighting maybe your comments on, you yourself the practices? more plays again, the running the of same percent see And of their individual with importantly, bids? can

Joseph Hogan

learned to brand, an disseminate Much individually that with their from of actually first to. of sense in I take And DSOs Jon, door-to-door to at within teams. I have talk a you question. doing technology, than multiplier. is they all, of can do Really, learned can They it just our it's that our better we as normal -- force, ability a about sales I a internally, we efficiency, great what look look from of sense what at be too. a a like which we zone brand obvious. apply able kind force demographic

what what But in DSOs incorporate. the sense we and what they we're know preclude of that the doesn't taking us to from

of down or understand with said it you because Our to longest company years, that procedures I marketplace. -- have ever mile the want we last any have the these in salespeople other about the been worked Dallas. sales also. That's with on the the the in orthodontists to They day talking I've family-driven they are really -- kickoff and have their calling dentists practices. individual implement many just And are right many hardest general of those to them that right us why find

you they're that help the anything, business very a it forward. can I their and DSOs they not that. way and it And or accelerate But gain Jon, explain you... they're always. minded, They're to to while necessarily they're is minded best not confidence very smart. -- clinically can stupid takes are Jon, move that,

Operator

David Needham. Our the of from comes next Saxon question line from

David Saxon

Yes, guide of Clear I a had follow-ups the Aligner. for on couple

volume Aligners. Joe, side, quarter first based ASP to second ASP just should for then like probably it? off full to for question, be digits on about how answer wanted confirm Clear sounds it previous growth And this starting volume year, on quarter. U.S. a look I to international, down you're first So the based high year-on-year year-on-year price mid-single-digit than in the of But quarter slower down the growth that's but single your be ASPs you to increase guidance. thinking have

So just X through a think hear quarters how X about we I'd should love basis? pricing to in on year-over-year

Joseph Hogan

of rest our slower next -- to And the -- David, year imply I'll going. the don't the different would And world. into now just does a that your that in make in would that confidence. have me, consumer that's U.S. say change I we be take we're the in any yes, first data question, a any to that's XXXX. would for which, see from some quarters, XXXX forecast change right than we us saw projecting kind last part of what it of way several or But

ASPs far go... As as

John Morici

to tried at is it's clear business, outside jump point Obviously, dollar. are ASPs, reference make over it they're give this U.S. off going based terms -- to our you what and of. impacted changes. but in the of those how very on And it stronger now heavily XX% of just a a saying least play They're impacted as spot with to of by the And guidance out our rates future. in I it

driver and much impact. QX, it up, of QX, year, won't have that's quarters. as December we a end and dollar November of I change mean, reflection the So each when in look by be of catches a that goes it that of the and of kind in impact. the But will see you at foreign year-over-year it ASPs strength saw the will that of as has It down. primary exchange, the you'd of It's the through that. that

David Saxon

maybe you, with Okay. right. helpful. And then That's John. All sticking

margin first expansion to quarter, guiding operating down the So full year-on-year year. for the but in

hear I'd great ramp? So the to about just maybe kind that of it talk be cadence. you that would takes quarterly could love puts and And if drive

John Morici

margin did be provide Yes. year think in margin a able that the to place to that you standpoint When op margin we'll have, from of last actions get accretion. cost to to our we op able be a

and It's or where, builds quarter the up, a the usually is quarter you on you as quarters start of lowest for first -- X the The as the rate to volume. is as first lowest standpoint, margin at go ramp based year. op it you through one

volume As our we productivity, facilities, generate that more up. through additional shows coming have we and

described, we're Joe and with additional products on Lumina as where expanding as Restorative, out margin products, new that drive help different have so the us we go We through.

we as on that can that accretion we basis. talked basis. So a generate year-over-year margin that that we've pull got on despite a year-over-year levers we at margin FX be adjust unfavorable about the and go And year to the XX.X%, accretion through is to able that's

accretion being and can talking of that smart you through the have it's you tell about that we're it's about. that about you're volume -- So all driving But other that productivity margin investments some making.

Operator

Baird. line of Johnson will come question next the from Jeff Our from

Jeffrey Johnson

guys the rest understand haven't the we're all The talking but this about and I from of are to headwind year it XQ, basis maybe just you missed to of point kind a heard around going it, So currency. thing trying I XXX year. the for relative X look,

currency a and through year to haven't bigger at My it XQ? that? much and heard point ASP ASPs the for quantify Aligner ASP is X-point flow X, math both put on a almost XQ but Am revenue. X.X currency think my math would Is my headwind close global is in side. in terrible, I pretty you headwind the on to I QX. I Clear as to that But math well, well about as

John Morici

year. Yes. the year last Jeff. bigger on It the way just to compared That's was right this to it, doing is phrase what based dollar

the than year. So there average QX bigger in for currency effect is on a

Jeffrey Johnson

on X.X? I X, am that Ballpark, close

John Morici

Yes.

close. You're

Jeffrey Johnson

then kind gross of the my the -- just on question, on really other but is FX And kind side. sorry, same side, Okay. margin the question company margin operating of the side margin on

didn't much basis is gross to But margin, however currency weighing direct incremental potentially gross investments don't pre-COVID improvement provide fab investments really on weighing at weighing answer. is see have year-over-year care points margin currency How have started guiding back the the and that those much like then on XX Just op a this year recapture You're on a -- incremental the fab this if there? year to want -- or I how of basis. line towards or how And have to the seems would overall currency if margin? neutral it's could margin been operating non-GAAP you we numbers. of much direct you a it

just moving to So understand pieces. those trying all

John Morici

year-over-year a basis, just impact falls on Jeff, margin you're right, X X Yes. margins, op about points basis. When to it's -- when point op point, over you X talk on FX the over revenue at on an

So a large part of through. that falls

the in. year-over-year. we're right, So XX other having an all standpoint. to op FX calling despite invest things improvement course, X margin point And you're of doing from basis a That's of point then, that pressure

offsets our some there's in that in on. that's the and all of up we the So and that to platforms But terms scaling XX.X%. number growth at have so

you foreign way, other of exchange see more margin rest the plays accretion would the as even the go year. and going we through we'll was FX see if how So that out

Operator

will Blair. the of question William from Brandon next Our line come Vazquez from

Brandon Vazquez

next a in? about market then a adoption is get catalyst could product you over IPE for X leg the the two, of the And what's product Joe, incremental given market you One, that this the we're year side, on you that looking that the maybe your end launch teen guys now. that on comment now a a that if to little relative maybe things. third underpenetrated after expectations Curious that's bit are a adoption year of to like could within year you I kind in? curve maybe think of let that we're be

Joseph Hogan

mentioned is not we of Invisalign case Brandon, curve that moving follows IPE, with First. it adoption been expansion moving it's what of teeth, has good, in moving Invisalign call in the sense. In Yes. all, I script, a bone. my I product. First as your this but mean, bone first It's we're kind dental

order through things regulatory mentioned that I we to that the why to that's so that go region move and And each in through. all have

become really feel in and breakthrough such I of a number to different a with cases It product. product good It's comfortable about a doctors while a it. it. takes

many the have things. from wonderful to the the parents And and in or of gone product comfort and [ wanting of of patients have of We sense a little device more those IREC too. the feedback that the parents kind through the makes susceptible Invisalign ] Expander wrench And Palatal line. a patients

just scanning I have when had good in We've the making the also But wearability on too those visualization sense to there's we we've started. release. aspects things There we're And how wear a feel over had pieces full you of that about So good come long some progress how improve were some this. it. attachment and it. in then We about attach. you first we didn't some from standpoint

-- we're seeing from about punch marketplace also mentioning, with that too, And First. First to sure to make expand they -- to really upper setting optimistic they the do their they're it. now. with of expansion, too. line many great a And in have worth go order standpoint as it Invisalign be Invisalign a global in that bottom they're bite see upper as that's teeth to standpoint palate but arch, doctors, it's the to sense very we great the the I'm X-X on the in So in And a use regional

but So talking that's the I your it's products. we're momentum effect good that hope those on a see answered X to question, synergistic I about.

Brandon Vazquez

that you a outperforming international Just just the been macro Americas result 'XX little Yes. simply macro International is note. are doing and Americas adoption bit stays Maybe days. go durable the for follow-up than understand and earlier Americas? if just in curve more of international the on little Or we things a a to there? even better muted? doing be should guys and how a in has a relatively as these into as quick separate trying bit being so better Is durable

Joseph Hogan

to discrete Overall, that Latin we Middle hard new, growth and some be it's of product the certain of continued penetration where, in that say sense. Africa East, answer. hit those areas are point. I certain in about would but areas in of on are for America. many initial Brandon, We've certainly been say It's there wouldn't inflection that years. our certain I and the see area, obviously, now too, they'll places Africa a line

the United than back were position other in of And States. Asia, countries in Western of Europe we They like and Western we just better face necessarily, better I China, before. in in specifically the overall, and has in large a the think, But world affected also feel which economies a we I outside Asia came overextend regions. didn't their way saw COVID the those economies, out of part in

penetration. But of those are some countries

too. just countries those of Some expansion are

It's offers it's you have. new overall, roll think as And I Brandon. in then to I there, countries, So you too. remember just mix new those out opportunities good technologies, a that. And it like these good

can piece expansion that So continue.

Shirley Stacy

we want and try Operator, Brandon. get Thanks, covering that to the on the through analysts line. still are

to if and limit get question I to please. questions, we the -- everyone's So so X can can ask folks through

Operator

from from Our of line Jason Bednar Piper will come next Sandler. question the

Jason Bednar

effect? you're with to increases. sluggish all a from this remove? to the this really maybe really address trying rationale, you fees? the to really do process, on way frictions I help just neutralizing can processing removing a price caused demand And doctors channel of friction been $XX marketing also then Has sorry, you initiative maybe you want see here, there to reduce and kind of have frictions what pull I'll Is on -- -- with I'm has pushback $XX maybe try but that environment? the in friction create -- teen the pack and a [indiscernible]. challenge with or reducing that side, bit is a thematically that better you trailing business Anything to combo a is to within on ortho that ask had it

Joseph Hogan

that's Jason, Yes, a good question.

it the to in talked the has the channel of haven't do First in in the all, today. really lot economics a really -- States offices America haven't the in We friction office about last North in X United any with teen is of the orthodontic -- orthodontists seen substantial growth years.

much can. are practices, there line maximize think they're bottom they trying individual again, their and to so as as And I

all, And so standpoint. The I processing a about been you friction those with think are very cautious talked they've business fees real. our and from

Europe a We those friction we it piece. the much been in that have that. had and joining lot had in doing with in as pushback Asia. annoyance talk an roll and order when do we aggregate with a is for that have in -- our was of a And response And either to And a And while was sales fight were a they what me, or to that to back explaining increase. having not that U.S. on price doctors to to to through things. doctors from us we pushback, kind it the We have team to in that. of good to decided

So I John, just... helpful. very think that's

John Morici

the minor and this category, on driving some with processing like less about too so of this other driving in driving fees things focus want business, mean the and this on. our I we to end, products

this it opportunity expenses together, place about this. put in and a the right to of the some get is this past good the So the like talk kind business versus other of of future

Operator

come line Valiquette question Steven of next Our from the will Mizuho. from

Steven Valiquette

there's to as little a tries But just this new was of Chinese trade that more related heightened competitor your may cetera. whether given large hoping are in buy under Obviously, is I years some X new competitor into puts et political headquartered takes the to share evolving really, establish that the of market, there's watching area backdrop or to U.S., some are to that U.S. competitors investors tariff U.S. wars, practitioners the outside based the thoughts a the base risk for with I'm situation. given the the a closely just want get any market X lot and on as administration, be in of ecosystem a wondering the next to really hesitant larger

could the into at play think which still favorably, perhaps in So I market. biggest your least I U.S. it's your hands market,

on high get your thoughts just potential dynamic? to So at level, that a curious just

Joseph Hogan

just in orthodontic world it market that biggest really too. to for Remember, is, confirm, the sense. growing still is talked I market Steven, X last U.S. about years, the in our just not the

So coming we Chinese really know comments other to refer or in. that Angel Line some your competition. maybe have [ suppliers had ] Obviously, we

relationships, -- win you our come prices. customer takes in and about. you charge way to in or other order competitors another, service of really one and seen first of prices Chinese the in technology, we We have that's you win with we've I think talking you return. force to and that also. with that that think the felt decent the we always kind you with at When have care know overall, a on itself win And look is what sales have unsustainable with marketplace

deliver international I or United around really States is make job about are do. for how our But I or can't sure don't feel they the politics to orthos anything they and So GPs that we'll speak keep XX,XXX for that best all piece things in our those best we best the and let win marketplace, itself. down. that make we technology, decide productivity, We sure brand, heads the other to the

Operator

next Caliendo Our Kevin the question from come UBS. line of from

Unknown Analyst

is Finley fabrication. question A direct Don Dylan on quick ] This Kevin. from [ on on for

the guys commercializing have talked I You previously potentially products starting retainer this product. year, believe, with to

into investment there out? products? capabilities update into both into you manufacturing the on too can revenue call any maybe P&L on the And and So detail that costs, of commercialization

Joseph Hogan

but device IPE printed, we'll process. XD that is Cubicure our resin the say not I'd all, the used of the Cubicure process First in it's it's not and

is at retainer a Invisalign amount variability to limited I in complicated. retainer. high us resin is too. up ramp where a will script, to it's begin as sense First our Cubicure in time. and person's we of just a of my release, mentioned process perfect Invisalign It an how you we -- try huge has ramp have modulus. structure that in fit arch point has the up depending we First to And very to that for So have It with on our new new that with the as

those you'll first to quarters release should in we that third of of some advancement. After of So difficult get printed auxiliary of be second wall And thicknesses in and ready in call or any product in types move cases half half where this That's we begin of what that year, again, to on have like need that ways. general the things I more the fourth kind ourselves year. line. into mandibular the But the have beginning. would aligners that, this have we'll to that different of see just beginning you mentioned, for

efficiency and orthodontists excited that technology, So we're that. have design the design order really about in of also particular but to the capability and incredible design will freedom do

I So that's now. do about as as can you well for

Operator

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

Michael Ryskin

hopefully. you commentary realize me, I X understood that. appreciate there's Mexico moving make to I quick X for John, Just tariffs sure of had on but to a pieces, want and just lot I the still

prices. it if go think How COGS? think planning being case roughly? comment just I cost, can transfer a we and Is XX% treatment hear transfer not overhead on percent like how would you the like something Just per as of freight of XX% mean, I I included. just your price with that? much through should P&L on walk a so math, [indiscernible]. through the transfer just $XXX Is to impacted? be we us -- of COGS it And the you

John Morici

on your there's $X Or it a question you're a treatment thinking tariff, the do that some cost price. to there done things, guess with of And work I have doing XX%, transfer this. people might to put be, month, and that right. been good a of, and about to million impact lot question,. of be that's Mexico in average just nothing than COGS an you hard in what million cost. it's I based us perspective it's on could look, on. COGS to perspective if this and in freight. $X But the there's planning that of specifically that start so terms tried and the like might we're of that And give with value add -- being what then perspective other No,

into like kind of So of this an that gives fits this. you idea how

that as We was remarks to amount and make standpoint, hope We'll evaluate it's for But tariff in but we decisions as go to This come not a more will as it us in at But go that term. enough tariffs, anything, of days have long do size perhaps understand of and these switch forward. of that XX%, not in move evaluate manufacturing forward, we'll from the said kind we'll Mexico big we impact manufacturing a perspective short what in we I implemented, terms that to prepared cost for what about. is look, there's if something, will we just on my you. if means -- the And that. us that want I we and some a of Poland. ever as cost on from based

Shirley Stacy

we'll Operator, X question. last take

Operator

Stanley. question Wright last will of our Morgan And the Erin from come from line

Erin Wilson Wright

one. a Just follow-up that on last

And of And China, guidance necessarily from environment a for in of standpoint, clarify, to just touch trends. just no more but there, there's a the I expectations demand even competitive from perspective, tariff your the from could so on a from just those? so China balance if stands buffer kind Just embedded guess, year, it as the you today not perspective? tariff on

John Morici

Erin. first great, one tariffs. on I'll take the That's

guidance new for we've tariffs not number. given our contemplated that in that forecast at of what we're we've that no and in So There's additional margin XX.X%.

So of from in there the kind things it's market But to month the to an Mexico the there? the per on depending perspective give don't if and should million from be $X framework, volume to come tariff, expense how on we'll million want XX% Joe, And standpoint. any is see it U.S., know then about. if other a China, you I -- on $X

Joseph Hogan

The market, quarter. less There in from business, trajected made what pleased me and was. was third quarter, fourth the was nothing is anything since seen. always that China were we China third quarter say the China what that obviously, quarter that we've with I'd the its think the different in in

right stable China call now. I'd overall, So

Operator

remarks. will I closing to Stacy for the any And back now over Shirley turn call

Shirley Stacy

thank our it. Well, call appreciate We today. for everyone, you, joining

Investor Dental follow-up any here later questions, have day. in next a to at Midwinter our you out forward coming industry everyone please If February. the look seeing up events, reach Show to Chicago I Relations. you has hope We great including

Operator

This concludes conference. today's

Everyone, participation. You day. may Thank now disconnect your at your time. this have you great for a lines

Align Technology (ALGN) 5 Feb 252024 Q4 Earnings call transcript