Align Technology (ALGN) The 44th Annual William Blair Growth Stock Conference summary

Company History and Strategic Direction

• 27 years of innovation in dental aligners, evolving from a startup to a global leader in 3D printing and digital orthodontics, with over 17.6 million Invisalign patients treated globally and a network of 261,000 trained doctors.

• Focused on a patient-centric, direct-to-doctor model, emphasizing clinical efficacy, safety, and accessibility for all ages.

• Maintains a dedicated sales and clinical education force of 5,000 and 22,000 employees as of March 2024.

• Strategic growth drivers include international expansion, patient demand, orthodontic conversion, and GP engagement.

• Avoids unrelated acquisitions, focusing exclusively on orthodontic and dental solutions.

Product and Technology Innovation

• Launched iTero Lumina scanner, Multi-Direct Capture technology, and Invisalign Smile Architect platform, with iTero scanners surpassing 100,000 units sold and the new Lumina model offering a 3x wider field of capture.

• Developed proprietary plastics, SmartTrack, and SmartForce technologies, enabling treatment of 100% of orthodontic cases and optimizing aligner performance.

• AI and machine learning have powered treatment planning and product development for over a decade, enabling personalized, efficient care.

• 3D printing advancements enable direct fabrication of devices, reducing material waste by 90% and allowing for custom material placement.

• Invisalign Palatal Expander System offers up to 9mm expansion, available in the US, Canada, Australia, and New Zealand, with phased global rollout pending regulatory approvals.

Financial Performance and Market Trends

• Q1 2024 total revenues reached $997.4M, up 5.8% year-over-year, with clear aligner revenues at $817.3M and systems/services at $180.2M.

• Clear aligner case volume grew 2.4% year-over-year, with international shipments up 5.3% year-over-year.

• Non-case clear aligner revenues, including Vivera retainers and subscription programs, rose 7.5% year-over-year.

• Systems and services revenues increased 17.5% year-over-year, with intraoral digital scans for Invisalign case submission at 95.6% in the Americas.

• Full-year revenue guidance raised to 7% growth at the midpoint, reflecting stable market conditions and product momentum.