Align Technology Inc. Q2 FY2024 results: revenue $1.0 billion, up 2.6% on the year

Align Technology Inc. (ALGN) reported revenue of $1.0 billion for Q2 FY2024, the quarter ended 30 June 2024, up 2.6% on the same quarter a year earlier. Net income was $97 million, down 13.6% on the year, and diluted earnings per share $1.28. The figures are the company's own, from the 10-Q it filed with the SEC on 2 August 2024.

Revenue$1.0 billionup 2.6%

Net income$97 milliondown 13.6%

Diluted EPS$1.28

QuarterQ2 FY2024ended 30 June 2024

The quarter, against the one before and a year earlier

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Revenue	1,028	997	n/a	n/a
Cost of revenue	306	300	n/a	n/a
Gross profit	723	698	n/a	n/a
Gross margin	70.3%	70.0%	n/a
Research and development	92.2	91.9	n/a	n/a
Selling, general and administrative	452	452	n/a	n/a
Operating income	147	154	n/a	n/a
Operating margin	14.3%	15.5%	n/a
Pre-tax income	144	158	n/a	n/a
Income tax	47.3	53.4	n/a	n/a
Effective tax rate	32.9%	33.7%	n/a
Net income	96.6	105	n/a	n/a
Net margin	9.4%	10.5%	n/a
Diluted EPS	$1.28	$1.39	n/a	n/a

$ 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 and capital returned

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Operating cash flow	160	28.7	n/a	n/a
Capital expenditure	53.5	9.4	n/a	n/a
Free cash flow	106	19.3	n/a	n/a
Free cash flow margin	10.3%	1.9%	n/a
Depreciation and amortisation	36.2	32.9	n/a	n/a
Share-based compensation	47.0	38.8	n/a	n/a
Buybacks	150	0.0	n/a	n/a
Diluted shares, weighted	75m	75m	n/a	n/a
Shares outstanding at period end	75m	75m	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	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Total assets	6,158	6,156	n/a	n/a
Cash and equivalents	761	866	n/a	n/a
Receivables	1,020	951	n/a	n/a
Inventory	259	280	n/a	n/a
Goodwill	454	458	n/a	n/a
Operating lease liabilities	98.3	95.1	n/a	n/a
Shareholders' equity	3,758	3,760	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-Q for the period ended 30 June 2024, filed 2 August 2024, accession 0001097149-24-000049: the filing on EDGAR. All of Align Technology Inc.'s filings: EDGAR company page.

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