Align Technology (ALGN) Q3 FY2022 earnings: revenue $890 million, down 12.4% on the year

Align Technology Inc. (ALGN) reported revenue of $890 million for Q3 FY2022, the quarter ended 30 September 2022, down 12.4% on the same quarter a year earlier as this quarter's filing gives it. Net income was $73 million, down 59.8% on the year as this quarter's filing gives it, and diluted earnings per share $0.93. The figures are the company's own, from the 10-Q it filed with the SEC on 4 November 2022.

Revenue

$890 million

-12.4% on the year · -8.2% on the quarter

Q4 FY2020Q3 FY2022

Operating margin

16.1%

25.7% a year earlier

Q4 FY2020Q3 FY2022

Net income

$73 million

-59.8% on the year · -35.5% on the quarter

Q4 FY2020Q3 FY2022

Diluted EPS

$0.93

-59.2% on the year · -35.4% on the quarter

Q4 FY2020Q3 FY2022

this quarterthe same quarter a year earlierHover a bar for its figure.

Income statement (profit and loss)

$ million	Q3 FY2022	Q2 FY2022	Q3 FY2021	On the quarter	On the year
Revenue	890	970	1,016	-8.2%	-12.4%
Cost of revenue	271	282	n/a	-3.8%
Gross profit	619	688	n/a	-9.9%
Gross margin	69.5%	70.9%	n/a
Research and development	77.0	73.0	n/a	+5.5%
Selling, general and administrative	399	426	n/a	-6.5%
Operating income	144	188	261	-23.7%	-45.0%
Operating margin	16.1%	19.4%	25.7%
Pre-tax income	123	174	n/a	-29.4%
Income tax	49.9	60.8	n/a	-17.9%
Effective tax rate	40.7%	35.0%	n/a
Net income	72.7	113	181	-35.5%	-59.8%
Net margin	8.2%	11.6%	n/a
Diluted EPS	$0.93	$1.44	$2.28	-35.4%	-59.2%

$ 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	Q3 FY2022	Q2 FY2022	Q3 FY2021	On the quarter	On the year
Operating cash flow	266	127	n/a	+109.8%
Capital expenditure	75.3	76.0	n/a	-0.9%
Free cash flow	191	51.0	n/a	+274.6%
Free cash flow margin	21.5%	5.3%	n/a
Cash from investing	-85.4	18.1	n/a
Cash from financing	10.9	-201	n/a
Depreciation and amortisation	32.2	30.3	27.6	+6.3%	+16.6%
Share-based compensation	32.9	34.1	n/a	-3.6%
Buybacks	0.0	200	n/a
Diluted shares, weighted	78m	79m	80m	-0.4%	-1.6%
Shares outstanding at period end	78m	78m	79m	+0.1%	-0.9%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q3 FY2022	Q2 FY2022	Q3 FY2021	On the quarter	On the year
Shareholders' equity	3,695	3,599	3,517	+2.7%	+5.1%
Debt	0.0	0.0	0.0
Operating lease liabilities	96.7	98.3	n/a	-1.7%
Other liabilities	2,121	2,113	n/a	+0.4%
Total liabilities and equity	5,913	5,810	n/a	+1.8%
Fixed assets	1,200	1,182	n/a	+1.5%
Goodwill	378	390	n/a	-3.2%
Intangible assets	91.7	93.8	n/a	-2.2%
Investments	96.5	99.7	n/a	-3.2%
Cash and equivalents	1,045	878	1,238	+19.0%	-15.6%
Receivables	860	932	n/a	-7.8%
Inventory	321	310	n/a	+3.5%
Other assets	1,922	1,925	n/a	-0.1%
Total assets	5,913	5,810	n/a	+1.8%

Questions

What was Align Technology's revenue in Q3 FY2022?

Align Technology (ALGN) reported revenue of $890 million for Q3 FY2022, the quarter ended 30 September 2022, down 12.4% on the same quarter a year earlier as the company restated it.

How much did Align Technology earn in Q3 FY2022?

Net income for Q3 FY2022 was $73 million, down 59.8% on the year, and diluted earnings per share $0.93.

When did Align Technology report Q3 FY2022 results?

Align Technology filed its 10-Q for the quarter ended 30 September 2022 with the SEC on 4 November 2022.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	1,031	973	970	890	902	943	1,002	960	957	997	1,028	978	995	979	1,012	996	1,048	1,040	1,056	1,015
Cost of revenue	287	264	282	271	284	282	289	297	287	300	306	296	298	299	304	356	364	304	299	317
Gross profit	745	709	688	619	618	661	714	663	670	698	723	682	697	680	708	639	684	737	757	697
Gross margin	72%	73%	71%	70%	69%	70%	71%	69%	70%	70%	70%	70%	70%	69%	70%	64%	65%	71%	72%	69%
R&D	72.5	71.8	73.0	77.0	83.5	87.4	88.5	88.7	82.2	91.9	92.2	85.3	94.9	97.2	96.4	93.3	83.0	98.7	102	93.9
SG&A	451	439	426	399	410	440	453	408	403	452	452	434	425	448	449	418	442	465	463	411
Operating income	221	198	188	144	113	134	172	166	172	154	147	162	144	131	163	96.3	155	142	154	169
Operating margin	21%	20%	19%	16%	12%	14%	17%	17%	18%	15%	14%	17%	14%	13%	16%	10%	15%	14%	15%	17%
Pre-tax income	220	187	174	123	115	135	172	162	173	158	144	166	141	140	174	94.7	177	149	149	170
Tax rate	13%	28%	35%	41%	64%	35%	35%	25%	28%	34%	33%	30%	26%	34%	28%	40%	23%	24%	27%	21%
Net income	191	134	113	72.7	41.8	87.8	112	121	124	105	96.6	116	104	93.2	125	56.8	136	113	108	135
Net margin	19%	14%	12%	8%	5%	9%	11%	13%	13%	11%	9%	12%	10%	10%	12%	6%	13%	11%	10%	13%
Diluted EPS	$2.39	$1.70	$1.44	$0.93	$0.54	$1.14	$1.46	$1.58	$1.64	$1.39	$1.28	$1.55	$1.39	$1.27	$1.72	$0.78	$1.89	$1.57	$1.51	$1.90
Operating cash flow	273	30.5	127	266	145	200	252	287	46.9	28.7	160	264	286	52.7	129	189	223	151	193	183
Capital expenditure	109	87.3	76.0	75.3	53.2	64.1	58.5	21.6	33.4	9.4	53.5	29.8	23.0	25.3	21.5	19.8	35.9	30.8	35.7	45.0
Free cash flow	164	-56.8	51.0	191	91.5	136	193	266	13.5	19.3	106	234	263	27.4	107	169	187	120	157	138
Buybacks	100	75.0	200	0.0	160	292	0.0	0.0	300	0.0	150	0.0	203	201	96.0	71.6	97.2	31.2	66.9	103
Shares outstanding	79m	79m	78m	78m	77m	77m	77m	77m	75m	75m	75m	75m	74m	73m	72m	72m	71m	72m	71m	71m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. 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. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 September 2022, filed 4 November 2022: the filing.