Align Technology Inc. Q4 FY2023 results: revenue $957 million, up 6.1% on the year

Align Technology Inc. (ALGN) reported revenue of $957 million for Q4 FY2023, the quarter ended 31 December 2023, up 6.1% on the same quarter a year earlier. Net income was $124 million, up 196.9% on the year, and diluted earnings per share $1.63. The figures are the company's own, from the 10-K it filed with the SEC on 28 February 2024.

Revenue$957 millionup 6.1%

Net income$124 millionup 196.9%

Diluted EPS$1.63

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	957	960	n/a	n/a
Cost of revenue	287	297	n/a	n/a
Gross profit	670	663	n/a	n/a
Gross margin	70.0%	69.1%	n/a
Research and development	82.2	88.7	n/a	n/a
Selling, general and administrative	403	408	n/a	n/a
Operating income	172	166	n/a	n/a
Operating margin	17.9%	17.3%	n/a
Pre-tax income	173	162	n/a	n/a
Income tax	48.9	40.7	n/a	n/a
Effective tax rate	28.3%	25.1%	n/a
Net income	124	121	n/a	n/a
Net margin	13.0%	12.6%	n/a
Diluted EPS	$1.63	$1.58	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. 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 and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	46.9	287	n/a	n/a
Capital expenditure	33.4	21.6	n/a	n/a
Free cash flow	13.5	266	n/a	n/a
Free cash flow margin	1.4%	27.7%	n/a
Depreciation and amortisation	33.7	37.0	n/a	n/a
Share-based compensation	38.8	39.6	n/a	n/a
Buybacks	300	0.0	n/a	n/a
Diluted shares, weighted	77m	77m	n/a	n/a
Shares outstanding at period end	75m	77m	n/a	n/a

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

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Total assets	6,084	6,319	n/a	n/a
Cash and equivalents	937	1,239	n/a	n/a
Receivables	903	904	n/a	n/a
Inventory	297	296	n/a	n/a
Goodwill	420	404	n/a	n/a
Operating lease liabilities	97.0	98.5	n/a	n/a
Shareholders' equity	3,630	3,802	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	960	957	997	1,028	978	995	979	1,012	996	1,048	1,040	1,056
Cost of revenue	297	287	300	306	296	298	299	304	356	364	304	299
Gross profit	663	670	698	723	682	697	680	708	639	684	737	757
Gross margin	69%	70%	70%	70%	70%	70%	69%	70%	64%	65%	71%	72%
R&D	88.7	82.2	91.9	92.2	85.3	94.9	97.2	96.4	93.3	83.0	98.7	102
SG&A	408	403	452	452	434	425	448	449	418	442	465	463
Operating income	166	172	154	147	162	144	131	163	96.3	155	142	154
Operating margin	17%	18%	15%	14%	17%	14%	13%	16%	10%	15%	14%	15%
Pre-tax income	162	173	158	144	166	141	140	174	94.7	177	149	149
Tax rate	25%	28%	34%	33%	30%	26%	34%	28%	40%	23%	24%	27%
Net income	121	124	105	96.6	116	104	93.2	125	56.8	136	113	108
Net margin	13%	13%	11%	9%	12%	10%	10%	12%	6%	13%	11%	10%
Diluted EPS	$1.58	$1.63	$1.39	$1.28	$1.55	$1.40	$1.27	$1.72	$0.78	$1.88	$1.57	$1.51
Operating cash flow	287	46.9	28.7	160	264	286	52.7	129	189	223	151	193
Capital expenditure	21.6	33.4	9.4	53.5	29.8	23.0	25.3	21.5	19.8	35.9	30.8	35.7
Free cash flow	266	13.5	19.3	106	234	263	27.4	107	169	187	120	157
Buybacks	0.0	300	0.0	150	0.0	203	201	96.0	71.6	97.2	31.2	66.9
Shares outstanding	77m	75m	75m	75m	75m	74m	73m	72m	72m	71m	72m	71m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* 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. 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.

Source

10-K for the period ended 31 December 2023, filed 28 February 2024, accession 0001097149-24-000011: the filing on EDGAR. All of Align Technology Inc.'s filings: EDGAR company page.

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