Align Crushed its Last Report...Now What?

Align Technologies (ALGN) has posted record sales numbers the past 3 consecutive quarters, recently reporting a +62% YoY revenue improvement for the first quarter of 2021. We've had a close eye on Align since adding it to coverage and featuring it with a Bullish outlook on our April MegaTrends Report: Next-Gen Health Care. Consumer Mentions for ALGN and it's flagship clear retainer brand, 'Invisalign,' have been trending higher since the Summer of 2020 and are showing continued strength, currently +52% YoY on a 90-day moving average.

ALGN has maintained growth in recent months by its digital presence. For 21Q1, the company reported:

• Strong digital engagement globally with >138% increase in unique visitors,
• 95% increase in Doctor Locator searches
• 35% increase in leads created YoY, driven by global adult and mom-focused campaigns and teen focused influencer content.

Although the trend in Total Mentions has begun to level off,  ALGN's new advertising campaign targeting teens, moms, and young adults could lead to a fresh wave of Mentions and sales growth.

What About the Competition?

SmileDirectClub (SDC) is Align's most notable competition in the clear aligner market. Although SDC cannot compete with ALGN in terms of technology, partnered doctors, or Total Mention volume, it has a limited advantage with regard to in-person stores. Due to a non-compete clause on a prior distribution agreement/partnership, ALGN will not be able to open any retail locations (Invisalign stores) as they would be to similar to SDC’s established retail locations (SmileShops). SmileDirectClub has seen a massive decline in underlying Consumer Demand over the past year, but that could change as reopening progresses across the U.S -- We'll be watching to see if they can cut into ALGN's commanding market share before their advantage runs out in 2022. For now, Align continues to elevate itself in the eyes of consumers.