Align Technology Inc, San Jose, Calif, reported financial results for the second quarter of 2019. Q2 revenues were up 22.5% year-over-year, reaching a record $600.7 million.
Meanwhile, Invisalign volume was up 24.6% year-over-year to 374,100 cases—with Invisalign teen cases up 32.2% to 103,700 cases; and scanner and services revenues were up 82.4% year-over-year to $104 million. According to Joe Hogan, Align Technology president and CEO, Invisalign growth was primarily from international doctors.
Despite the growth, total Invisalign case shipments for Q2 were lower than expected, primarily due to “softness” in China due to a tougher consumer environment and slower growth in young adult cases in North America, according to Hogan. Given the uncertainty in China, Hogan says the company’s outlook for Q3 “reflects a more cautious view for growth in the Asia Pacific region.”
The company reported operating income of $176.5 million, up 43.8% year-over-year resulting in an operating margin of 29.4%. Q2 net profit was $147.1 million, or $1.83 per diluted EPS. The company further reported operating expenses included a $51 million benefit from the ClearCorrect settlement with Straumann, which increased Q2 operating margin by approximately 8 points and benefited EPS by $0.57, respectively.
