Align Technology Inc. (NASDAQ:ALGN) Q1 2018 Earnings Conference Call Transcript

Apr 25, 2018 • 04:30 pm ET

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Align Technology Inc. (NASDAQ:ALGN) Q1 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Align Technology First Quarter 2018 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

(Operator Instructions). As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ms. Shirley Stacy. Please go ahead.

Executive
Shirley Stacy

Good afternoon. Thank you for joining us. I'm Shirley Stacy, Vice President of Corporate Communications and Investor Relations. Joining me for today's call is Joe Hogan, President and CEO; and John Morici, CFO.

We issued first quarter 2018 financial results today via GlobeNewswire, which is available on our website at investor.aligntech.com. Note that, beginning in Q1 2018, the American region now includes the U.S., Canada and Latin America.

Previously, Latin America was combined with the EMEA results for reporting purposes and included in the international total. While the Latin America region has been relatively immaterial to Align's overall results, we've adjusted our prior-period regional breakouts to reflect this change so our year-over-year comps are consistent.

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 PM Eastern Time through 5:30 PM Eastern Time on May 9th. To access the telephone replay, domestic callers should dial 877-660-6853 with conference number 13678038 followed by pound. International callers should dial 201-612-7415 with the same conference number.

As a reminder, the information that the presenters will discuss today will include forward-looking statements including statements about Align's future events, product outlook and the expected financial results for the second quarter of 2018. These forward-looking statements are only predictions and involve risks and uncertainties that are set forth in more detail in our most recent periodic reports filed with the Securities and Exchange Commission.

Actual results may vary significantly, and Align expressly assumes no obligation to update any forward-looking statements.

We've posted historical financial statements, including the corresponding reconciliations and our first quarter conference call slides, on our website under Quarterly Results. Please refer to these files for more detailed information.

With that, I'll turn the call over to Align Technology's President and CEO, Joe Hogan. Joe?

Executive
Joseph M. Hogan

Thanks, Shirley. Good afternoon, and thanks for joining us. On our call today, I'll provide some highlights in the quarter and briefly discuss the performance of our two operating segments, clear aligners and scanners. John will provide more detail on our financial results and discuss our outlook for the second quarter. Following that, I'll come back and summarize a few key points and open up the call to questions.

I'm pleased to report better-than-expected first quarter results and a strong start to the year for Align, with the revenue -- with revenues, volumes and EPS above guidance. Record Q1 revenues were up 41% year-over-year, reflecting continued strong Invisalign volume across all geographies and customer channels, as well as iTero scanner sales which are up over 84% year-over-year.

Q1 Invisalign volume growth of 31%