Align Technology Inc. (NASDAQ:ALGN) Q3 2020 Earnings Conference Call - Final Transcript

Oct 21, 2020 • 04:30 pm ET

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Align Technology Inc. (NASDAQ:ALGN) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to Align Technology's Third Quarter 2020 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Shirley Stacy, Vice President, Corporate and Investor Communications. Thank you. You may begin.

Executive
Shirley Stacy

Thank you. Thank you for joining us, everyone. Joining me on today's call is Joe Hogan, President and CEO; and John Morici, CFO. We issued third quarter 2020 financial results today via GlobeNewswire, which is available on our website at investor.aligntech.com.

Today's conference call is being audio webcast and will be archived on our website for approximately one month. A telephone replay will be available today by approximately 5:30 p.m. Eastern Time through 5:30 p.m. Eastern Time on November 4th. To access the telephone replay, domestic callers should dial 877-660-6853 with conference number 13710706 followed by pound. International callers should dial 201-612-7415 with the same conference number.

As a reminder, the information provided and discussed today will include forward-looking statements, including statements about Align's future events and product outlook. These forward-looking statements are only predictions and involve risks and uncertainties that are described in more detail in our most recent periodic reports filed with the Securities and Exchange Commission available on our website and at sec.gov. Actual results may vary significantly and Align expressly assumes no obligation to update any forward-looking statement.

We have posted historical financial statements, including the corresponding reconciliations, including our GAAP and non-GAAP reconciliation if applicable, and our third quarter 2020 conference call slides are 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. I'm pleased to report stronger than expected results with record third quarter revenues up 21% year-over-year, reflecting strong momentum across all regions and customer channels for both Invisalign clear aligners and iTero scanners and services.

During the quarter, we continued to support doctor recovery efforts with products, programs and virtual tools and training that helped more doctors transition their practices to digital technologies and drove record utilization across the Invisalign portfolio. Capping off our record quarter is an achievement of our 9 millionth Invisalign patient milestone. We also saw strong response to our new teen and mom-focused consumer campaign with 118% year-over-year increase in total leads, garnered 3.3 billion impressions, an uptick in consumer engagement from new social media influencers like Charli D'Amelio and Marsai Martin, a 26% increase year-over-year and teenagers using Invisalign clear aligners.

Our overall revenue momentum has continued into October and we are encouraged by positive feedback from Invisalign practices regarding the benefits of digital orthodontics starting with an iTero scanner for Invisalign treatment, especially in this COVID-19 environment. For Q3, total revenues were $733 million, up 108% sequentially and up 21% year-over-year, reflecting a sharp rebound in sales for both Invisalign clear aligners and iTero imaging systems as practices around the world reopened and