Align Technology, Inc. (NASDAQ:ALGN) Q2 2023 Earnings Call Transcript

Brandon Couillard: Great. And John, you mentioned freight costs coming down year-over-year as a positive tailwind to gross margins. I think first time in a while. I think that’s been the case. Do you expect that to be sustainable over the next several quarters? And any color on how we should about gross margins in the second half of the year relative to 2Q base?

John Morici: I think it’s a reflection of just it’s freight, but maybe some of the material costs and others that as we manage things, manage our business and we see less inflationary pressure from kind of the raw material/freight and other inputs. And we’re always driving productivity. We’re always trying to be improve our productivity. We saw that in some of our gross margin improvements, both for clear aligner and the scanner and services. And we’ll work to continue to manage it. But seeing some of those pricing pressures, the input pricing pressure come down that continues.

Brandon Couillard: Very good. Thank you.

Operator: Thank you. And we have reached the end of our question-and-answer session. I will now hand the call back over to Shirley Stacy for closing remarks.

Shirley Stacy: Thank you, everyone, and thank you again for joining us. We look forward to speaking to you at any financial conferences and industry meetings. And as Joe mentioned, Align is hosting its 2023 Investor Day, September 6 in Las Vegas. For more information, please visit our Investor Relations page on aligntech.com. Or if you have any questions, please contact Investor Relations. Thanks, and have a great day.

Operator: Thank you. This concludes today’s conference, and you may now disconnect your lines at this time. Thank you for your participation.