Align Technology's Q4 2024: Contradictions in Clear Aligner Growth and Market Dynamics

These are the key contradictions discussed in Align Technology's latest 2024 Q4 earnings call, specifically including: Clear Aligner Market Growth and Competitive Dynamics, iTero Growth Expectations, Guidance and Forecasting, and Market Dynamics:



Revenue and Clear Aligner Growth:
- Align Technology reported total revenues of $995 million for Q4 2024, up 1.8% from the previous quarter and 4% year-on-year.
- Clear Aligner volumes grew 6.1% year-on-year, driven by increased shipments across all regions, particularly in EMEA, APAC, and LatAm.

Systems and Services Performance:
- Systems and Services revenues rose 14.9% year-on-year and 5.2% sequentially in Q4 2024.
- The growth was primarily due to higher scanner volumes and higher ASPs, driven by the launch of the iTero Lumina scanner.

International Market Dynamics:
- International markets, especially EMEA and APAC, showed significant growth, with EMEA year-over-year Clear Aligner volume growth reflecting core Europe and EMEA markets.
- The growth in international markets was driven by strong demand in these regions and the success of the Invisalign brand in emerging markets.

Impact of Foreign Exchange:
- Foreign exchange rates negatively impacted Q4 Clear Aligner revenues by approximately $0.7 million sequentially and $0.9 million year-over-year.
- The strengthening US dollar against major currencies from late October was the primary cause of lower Clear Aligner ASPs.