Align Technology (ALGN) FY2021 results: revenue $4.0 billion, up 59.9% on the year

Align Technology Inc. (ALGN) reported revenue of $4.0 billion for fiscal 2021, the year ended 31 December 2021, up 59.9% on the year before. Net income was $772 million, down 56.5%, and diluted earnings per share $9.69. The figures are the company's own, from the 10-K it filed with the SEC on 25 February 2022.

Revenue

$4.0 billion

+59.9% on the year

FY2014FY2021

Operating margin

24.7%

15.7% a year earlier

FY2014FY2021

Net income

$772 million

-56.5% on the year

FY2014FY2021

Diluted EPS

$9.69

-56.8% on the year

FY2014FY2021

this yearthe year beforeHover a bar for its figure.

The year in brief

The quarters: Q4 FY2021

Income statement (profit and loss)

$ million	FY2021	FY2020	FY2019	On the year
Revenue	3,953	2,472	2,407	+59.9%
Cost of revenue	1,017	709	663	+43.5%
Gross profit	2,935	1,763	1,744	+66.5%
Gross margin	74.3%	71.3%	72.5%
Research and development	250	175	157	+42.8%
Selling, general and administrative	1,709	1,201	1,072	+42.3%
Operating income	976	387	542	+152.2%
Operating margin	24.7%	15.7%	22.5%
Pre-tax income	1,012	379	563	+167.2%
Income tax	240	-1,397	112
Effective tax rate	23.7%	-368.6%	20.0%
Net income	772	1,776	443	-56.5%
Net margin	19.5%	71.8%	18.4%
Diluted EPS	$9.69	$22.41	$5.53	-56.8%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2021	FY2020	FY2019	On the year
Operating cash flow	1,173	662	747	+77.1%
Capital expenditure	401	155	150	+158.9%
Free cash flow	771	507	598	+52.1%
Free cash flow margin	19.5%	20.5%	24.8%
Cash from investing	-563	-232	-350
Cash from financing	-458	-30.8	-486
Depreciation and amortisation	109	93.5	79.0	+16.2%
Share-based compensation	114	98.4	88.2	+16.2%
Buybacks	375	0.0	400
Diluted shares, weighted	80m	79m	80m	+0.6%
Shares outstanding at period end	79m	79m	78m	-0.2%

Balance sheet

$ million	FY2021	FY2020	FY2019	On the year
Shareholders' equity	3,623	3,234	1,346	+12.0%
Debt	0.0	0.0	0.0
Operating lease liabilities	103	64.4	43.5	+59.3%
Other liabilities	2,217	1,531	1,111	+44.8%
Total liabilities and equity	5,942	4,830	2,501	+23.0%
Fixed assets	1,082	735	632	+47.3%
Goodwill	419	445	63.9	-5.9%
Intangible assets	110	130	11.8	-15.7%
Investments	197	0.0	318
Cash and equivalents	1,099	961	550	+14.4%
Receivables	897	658	550	+36.4%
Inventory	230	139	112	+65.4%
Other assets	1,908	1,762	262	+8.3%
Total assets	5,942	4,830	2,501	+23.0%

10-K for the year ended 31 December 2021, filed 25 February 2022: the filing.