Align Technology Inc. (NASDAQ:ALGN) Q4 2017 Earnings Conference Call - Final Transcript
Jan 30, 2018 • 04:30 pm ET
Joseph M. Hogan
will discuss this in more detail in his section in a few minutes.
For the full-year, revenue of $1.5 billion increased 36.4% year-over-year, driven by both record Invisalign revenue, which surpassed the $1 billion mark for the first time ever and record iTero scanner revenues. These results reflect continued progress in execution of our force strategic growth drivers, which focus on driving international expansion, increasing orthodontist's utilization of Invisalign, especially with teenagers, enabling GP dentists to treat and refer more Invisalign cases and generating consumer demand from millions of people worldwide and connecting them with Invisalign Doctor.
Turning to the specifics around our fourth quarter results, let's start with the results of our North American region. For North America, Q4 was a good quarter with Invisalign case volume up 5.1% sequentially, and 24.2% year-over-year. Sequential growth primarily reflects the seasonality, a seasonally stronger period for GP dentists as patients' activities in their offices increased after summer holidays. Ortho customers treated more adult patients following the busy teen season. In addition, Q4 Invisalign utilization increased to 3.3 cases per GP dentist and North American Orthos received a record 14 cases per doctor, reflecting continued confidence and uptake of Invisalign system. On a year-over-year basis, strong growth was driven primarily by increased Ortho utilization and continued expansion of our GP customer base. For the full year, both North America Orthos and GP Dentists achieved record annualized utilization of 47 and 8 cases per doctor respectively.
For international doctors, Q4 was another strong quarter with Invisalign case volume up 12.7% sequentially and 52.3% year-over-year. Sequential growth reflects a seasonally stronger quarter for EMEA region following summer holidays for doctors and patients, which offset expected decreases from seasonality in APAC, particularly as the Greater China market observed local holidays. On a year-over-year basis, strong Invisalign volume was driven by growth from both EMEA and the Asia Pacific region. Year-over-year growth for EMEA was up 42.9%, led by Spain, France and the U.K.
We also saw strong growth across all of our smaller expansion markets, which include Central and Eastern Europe, the Middle East and Africa. And APAC Q4 volumes were up 63% year-over-year, led by China, Japan and Australia with record Invisalign volume in most APAC countries. For the full year, Invisalign volume increased 44.9%, led by growth from China and our core EMEA country markets. In total, international volume represented 38% of worldwide Invisalign case shipments.
Now, turning to the teen market, which makes up 75% of total orthodontic case starts each year. In Q4, 63.5 thousand teenagers started treatment with Invisalign clear aligners, an increase of 44.1% year-over-year, driven by continued strong adoption across all major regions and increasingly for younger teens and tweens. For Q4, year-over-year Invisalign teen patient growth for North American Orthos increased 37.8% and international was up 64.7%. Notwithstanding some seasonality during the quarter, given fewer teen case starts, Q4 was a fifth consecutive quarter that Invisalign teenage patient volume grew faster than adults.
On a sequential basis,