Align Technology: +2.7%
2020 revenue: $2,471,900,000
R&D spending up 11.4%
Headcount up 24.4%
Align Technology saw increased demand for its clear teeth aligners throughout 2020 as people were more reluctant to go to an orthodontist’s office to get traditional teeth braces adjusted.
The San Jose, Calif.–based company reported $2.5 billion in sales in 2020 for a 2.7% growth from 2019 when the company earned $2.4 billion in sales. Align Technology grew 22.4% from 2018 to 2019 when there wasn’t a global pandemic.
The clear aligners company spent $175.3 million on R&D efforts in 2020 and $157.4 million in 2019, representing an 11.4% growth in research and development expenses. In comparison, the company’s R&D expenses grew 22.1% from 2018 to 2019.
Align Technology employed 24.4% more people in 2020 than it did in 2019 for a total of 18,070 reported employees during the COVID-19 pandemic. The spike in employment is on trend with Align’s previous hiring practices. It hired 24.6% more people between 2018 and 2019.
With fewer people making trips to a doctor’s office during the pandemic, Align saw increased demand for its clear teeth aligners that compete against traditional braces, Richard Newitter, senior research analyst at SVB Leerink, told Medical Design & Outsourcing.
“During the year, 30.3% of total Invisalign cases or nearly 500,000 teens or younger started Invisalign treatment. This is up 11.5% from 2019. System and services revenues were down slightly compared to 2019,” CEO Joseph Hogan said during an earnings call transcribed by The Motley Fool.
During the pandemic, Align won FDA 510(k) clearance for its iTero Element 5D imaging system and launched its ClinCheck treatment planning software and Invisalign G8 with SmartForce Aligner Activation.
“2020 was a year unlike any other that we’ve experienced. The COVID-19 pandemic and its impact have been life-changing, marked by loss and separation, recovery and renewal, record highs and lows, and significant milestones and accomplishments. Even in a time of huge disruption, we all had to adapt, evaluate priorities and develop new ways of doing things both personally and professionally,” Hogan said. “Through it all, Align’s priority has been the health and well-being of our employees and their families and our doctors, customers and their staff. And that remains a constant.”