Align Technology Inc. (NASDAQ:ALGN) Q4 2014 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 04:30 pm ET


Align Technology Inc. (NASDAQ:ALGN) Q4 2014 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Align Technology Fourth Quarter Earnings Teleconference Call. At this time all participants are in a listen-only more. A brief question-and-answer session will follow the former presentation. (Operator Instructions)

And as a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Shirley Stacy, VP of Communications and IR.

Shirley Stacy

Good afternoon. Thank you for joining us. I'm Shirley Stacy, VP of Corporate Communications and IR. Joining me for today's call is Tom Prescott, President and CEO; and David White, CFO.

We issued fourth quarter 2014 financial results today via MarketWire, which is available on our website at Today's conference call is being audio webcast and will be archived on our website for approximately 12 months.

A telephone replay will be available today by approximately 5:30 p.m. Eastern Time through 5:30 p.m. Eastern Time on February 5. To access the telephone replay, domestic callers should dial (877) 660-6853 with conference number 13598471 followed by pound. International callers should dial (201) 612-7415 with the same conference number.

(Forward-Looking Cautionary Statement) We have posted a set of GAAP and non-GAAP historical financial statements including the corresponding reconciliations and our fourth quarter conference call slides on our website under quarterly results.

Please refer to these files for more detailed information. With that, I'd like to turn the call over to Align Technology's President and CEO, Tom Prescott. Tom?

Thomas M. Prescott

Thanks, Shirley. Good afternoon, everyone, and thank you all for joining us. On the call today, I'll provide some highlights from our fourth quarter and full year results and then briefly discuss the performance of our two operating segments; Invisalign Clear Aligner, and Scanner and Services. I'll also provide some color on our customer performance, as well as progress in our geographies around the world.

David will provide more detail on our financials, discuss our outlook for the first quarter, provide some commentary on our overall business for 2015. Following that, I'll come back and summarize a few key points and open up the call to questions. We are pleased to have delivered a good quarter and finished the year, driven by continued strong growth in our EMEA and APAC regions, along with solid results in North America.

Q4 revenues of $198.6 million increased 11.4% year-over-year, and Invisalign case volume growth of 14.2%. For the full year, revenues of $761.7 million increased 15.4% year-over-year, reflecting growth across all customer channels and geographies, as well as expansion of our customer base and increased utilization by existing doctors.

I'm also very pleased to report that shortly after the New Year, we shipped our 3 millionth of Invisalign case destined for an Invisalign teen patient in the New Jersey area. This is a significant milestone for Align, for our doctors and for our employees. It took us 10 years to reach our 1 millionth case, another three years to the next million and only two more years to reach 3 million patients now and counting.

On an