Align is the company behind Invisalign aligners, which are clear, removable dental aligners that replace traditional metal braces to realign teeth. The company is the global leader in this technology, which accounts for over 80% of its consolidated revenue. The rest of its revenue comes from iTero intraoral scanners and exocad dental design software. These tools enable practitioners (orthodontists, general dentists, and laboratories) to digitize patients' teeth, plan treatments in 3D, and design customized restorations or orthodontic devices. Align also sells complementary products and accessories such as professional whitening systems, storage cases, and cleaning solutions.
Align Technology has enjoyed remarkable growth. After several years of steady progress, the group posted exceptional results in 2021, with revenue soaring 60%. This spectacular increase is due to strong sales momentum for Invisalign aligners and the growth of the iTero scanner and exocad services segment in a context marked by the Covid-19 pandemic, which has encouraged the adoption of digital tools and remote patient monitoring.
However, the upturn did not last. Since then, momentum has slowed and the group has posted four consecutive years of stagnation. The stock has lost two-thirds of its value and the trend is likely to continue. In its results, presented yesterday, Align noted a decline in the start of orthodontic treatment and increasing hesitation amongst patients to commit to elective procedures: this is linked to the uncertain economic environment, with US households cautious about spending.
Internal forecasts have therefore been scrapped. The expected growth of 3.5% to 5.5% this year has given way to the prospect of a fifth consecutive year without growth. In response, Align is preparing to reorganize its operations, with job cuts on the cards. This aims to reduce costs, further automate production, and regionalize operations in order to be closer to customers and, of course, limit exposure to customs barriers.
