Align Technology, Inc. stock research
FY2024 Q4
Align Technology (ALGN) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin was stable relative to the year-ago period and slightly higher than the preceding quarter.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin was stable relative to the year-ago period and slightly higher than the preceding quarter.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared with the prior quarter, leading to a slight gross margin improvement.
- Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved modestly. Compared with the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.0%
Gross profit
$696.9M
Revenue
$995.2M
Cost of revenue
$298.3M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $997.4M | $697.8M | $299.6M | 70.0% |
| Jun 30, 2024 | $1.0B | $722.6M | $305.9M | 70.3% |
| Sep 30, 2024 | $977.9M | $681.8M | $296.1M | 69.7% |
| Dec 31, 2024 | $995.2M | $696.9M | $298.3M | 70.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.3 pts
Year-over-year change
Dec 31, 2023
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared with the prior quarter, leading to a slight gross margin improvement.
Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved modestly. Compared with the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was stable.
Monitor the trend in cost of revenue relative to revenue, as its growth rate may affect future gross margin stability.