Revenue for both clear aligners and imaging systems and CAD/CAM services was down for Q2 as practitioners dealt with office closures due to COVID-19.
Align Technology reported its financial results for the second quarter of 2020 (“Q2’20”). Q2’20 total revenues were $352.3 million, down 41.3% year-over-year. Q2’20 Clear Aligner revenues were $298.3 million, down 39.9% year-over-year and Q2’20 Imaging Systems and CAD/CAM Services (formerly Scanner and Services) revenues were $54.0 million, down 48.1% year-over-year. Q2’20 Invisalign volume was 221.9 thousand cases, down 41.2% year-over-year.
For the Americas and International regions, Q2’20 Invisalign volume was down 52.2% and down 27.1% year-over-year, respectively. Q2’20 Invisalign volume for teenage patients was 70.6 thousand cases, down 31.9% year-over-year. The company had an operating loss of $73.0 million in Q2’20, down 141.4% year-over-year from an operating profit of $176.5M, resulting in a Q2’20 operating margin of (20.7)%. Q2’20 GAAP net loss was $40.6 million, or $(0.52) per diluted share. On a non-GAAP basis, Q2’20 net loss was $27.6 million, or $(0.35) per diluted share.
In April, Align acquired privately held exocad Global Holdings GmbH for a cash purchase price of $430 million. In recognition of the acquisition, as of Q2’20, it has renamed the Scanner and Services segment to Imaging Systems & CAD/CAM Services (ISCCS) or “Systems and Services.”
Commenting on Align’s Q2’20 results, Align Technology president and chief executive officer Joe Hogan said, “I’m pleased to report Q2 results and continued progress across all regions and customer channels that reflect our COVID-19 recovery efforts and those of our customers. Practices across every region have reopened and are seeing patients, and many of those practices are embracing digital treatment in new ways and more purposefully than ever before.”
He went on to report that “Invisalign providers, in particular, are using the virtual tools we expedited over the last few months to minimize in-office appointments and deliver doctor-directed, personalized treatment that meets the needs of the moment—trusted, safe, convenient, and reflecting digital adoption. We have received consistently positive reactions and feedback from doctors in support of our efforts over the last few months. While it is too early to know for sure how extensive and sustainable the digital transition will be, interest in digital solutions is building, even among doctors who were not early adopters or advocates prior to the pandemic.”
Hogan pointed out that this positive feedback and momentum is not just around Invisalign treatment—it includes digital workflow around iTero scanners and general dentistry. According to him, doctors are telling Align that the iTero imaging system is central to their practice and to their practice workflows, and it is key to driving digital treatment.
In announcing its financial results for Q2’20, the company also announced that it treated its 1 millionth Invisalign patient in APAC, an adult patient from Tokyo, Japan.