Joseph M. Hogan
Director, President And Chief Executive Officer at Align Technology
Thanks, Shirley. Good afternoon, and thanks for joining us. On our call today, I'll provide an overview of our Q2 results and discuss the performance of our two operating segments, Systems and Services and Clear Aligners. John will provide more detail on our financial performance and our view for the remainder of the year. Following that, I'll come back and summarize a few key points and open the call to questions. I'm pleased to report solid second quarter results with top line revenues relatively unchanged from Q1, and an operating margin of approximately 20%, despite unfavorable foreign exchange. The underlying market for orthodontics continues to be impacted by macroeconomic environment factors and lingering effects of COVID-19 variants in certain markets.
Notwithstanding these headwinds, we've remained focused on achieving our strategic initiatives, including opening new offices in the Middle East and Africa and our new manufacturing facility in Poland, launching new solutions to better support the way our customers want to do business. such as a Doctor Subscription Program, and Teen case packs, and announcing new products and innovation to help our doctors and their patients. These new innovations are revolutionizing the digital treatment planning and helping to drive the evolution of digital orthodontics and comprehensive dentistry. Align is well positioned to withstand the current market conditions to lead a digital revolution in orthodontics and dentistry as the environment and growth trends improve. For Systems and Services, Q2 revenues were up 4.7% sequentially and up slightly year-over-year compared to Q2 '21 year-over-year growth of 215%.
Q2 Systems and Services revenues increased sequentially driven by scanner volume growth in the Americas and APAC, partially offset by lower volume in EMEA, and unfavorable impact of foreign exchange. The iTero Element 5D imaging system continues to represent the majority of our scanner volume as doctors recognize the benefits of going digital. In APAC, the iTero entry-level Flex scanner offering was up sequentially in Q2, reflecting increased adoption. I'm also pleased with sequentially increasing services revenues in Q2, reflecting growth from the installed base. Services revenues represent approximately 40% of our Systems and Services business. For our Clear Aligner segment, Q2 revenues were down slightly sequentially and down 5.1% year-over-year compared to our Q2 '21 record year-over-year revenue growth of 182%. For the quarter, Q2 Clear Aligner volumes reflect sequential growth across the Americas and parts of EMEA, partially offset by China and U.K.
Q2 Invisalign case starts for teens and younger patients was 177,300 up slightly sequentially and down 2.1% year-over-year compared to Q2 last year when our Teen case shipment growth rate was an all-time high. For Q2, Invisalign First for kids as young as six years old, grew year-over-year and was strong across all regions. During Q2, we introduced Invisalign Teen packs in the U.S. and Canada and France. Teen packs is our new subscription program, which enables orthodontists to buy clear aligners and packs in advance, similar to the way they buy wires and brackets today. Our Teen case pack simplified the ordering process and make the billing more predictable for doctors. Teen case packs also include exclusive practice development benefits with the Invisalign brand and requires an incremental volume commitment from doctors. To date, enrollment has been encouraging with early adoptions highest among doctors who have not historically used Invisalign aligners to treat their teen patients.
For other non-case revenues, which include retention products such as Vivera Retainers, clinical training and education, accessories, e-commerce and our new subscription programs such as our DSP revenues, were up both sequentially and year-over-year. For retainers, Q2 shipments had strong momentum with sequential and year-over-year growth across all regions driven by both submitters and utilization. Momentum in our Doctor Subscription Program continued and Q2 revenues increased over 60% sequentially. Now let's turn to the specifics around our second quarter results, starting with the Americas. For the Americas region, Q2 Invisalign case volumes were up sequentially, reflecting increased submissions from the orthodontic channel and increased utilization from the GP channel. From a product standpoint, Q2 sequential Invisalign case growth reflects increases in both comprehensive and non-comprehensive products, including Invisalign First and Invisalign Moderate.
Q2 also benefited from increased utilization in the DSO channel. Our international Clear Aligners, Q2 Invisalign case volumes were down 1.7% sequentially, primarily as a result of the headwinds described previously. For EMEA, Q2 Invisalign case volumes were down slightly primarily reflecting a slight increase in Iberia and Italy, offset primarily by slightly lower sequential volumes in the U.K. and France. For Q2, expansion market shipments declined sequentially. Q2 Invisalign teen patients increased sequentially driven by an increase in the number of doctors submitting teen cases. Turning to APAC. Invisalign case volumes were down slightly, reflecting a full quarter effect of continued lockdowns in China. For Q2, Taiwan, Hong Kong, Japan and India performed well during the quarter. On a year-over-year basis, Invisalign case shipments growth was strong in Japan, India, Taiwan, Thailand and Korea. The APAC teen case volume increased year-over-year, primarily driven by increased doctor submitters.
Turning to new innovations. The Align Digital Platform is an integrated suite of proprietary technologies and services delivered as a seamless end-to-end solution to customers that connects all users, doctors, labs patients and consumers to transform smiles, and change lives. Our technology advancements help our doctor customers deliver superior clinical outcomes, treatment efficiency and also superior patient experience. In Q2, we introduced Invisalign Outcome Simulator Pro and Cone Beam Computed Tomography systems integration for ClinCheck software, building on several new innovations announced last quarter that we'll begin rolling out across the regions in August. Invisalign Outcome Simulator Pro, the next-generation patient communication tool that empowers doctors to help patients visualize their potential new smile after Invisalign treatment. Use in-phase visualization in 3D dentition view, all done chairside in minutes.
Cone Beam Computed Tomography systems, or what we call CBCT, integration for ClinCheck software is designed to deliver a complete view of a patient's roots, crown and jawbone. CBCT integration for ClinCheck software enables doctors to confidently deliver a more informed Invisalign clear liner treatment plan or a wide range of cases. The user-friendly interface makes it easy for doctors to see their patients root, crown and jawbone and one automatically digitally fused 3D model. This allows doctors to tailor their treatment, plan based on their experience and their patients' needs. CBCT integration for ClinCheck software gives doctors the control and confidence to expand treatment planning to a broad range of mal inclusions, including surgical, restorative, expansion, extraction as well as teen cases with impacted or unerupted teeth. While it's still early in the commercialization of these new products, initial feedback from doctors is encouraging. We are excited to begin scaling them across our customer base in the second half of 2022.
Also, during the quarter, we awarded 11 new research grants totaling $275,000 to universities around the world. Through our annual research awards program, we help advance orthodontic and dental research, furthering our commitment to the future of digital orthodontics and restorative dentistry. Our consumer marketing is focused on educating consumers about the Invisalign system, and driving that demand to Invisalign doctors offices, ultimately capitalizing on the massive market opportunity to transform 500 million smiles. For Q2, we had over 16.2 million visits to our websites, a 15% year-over-year increase, and delivered over 6.3 billion impressions. Both metrics were lower versus Q1 as we chose to rightsize our size and media spend in Q2 given the macroeconomic environment. During the quarter, we built on our successful "Invis is" multimedia campaign and launched in the U.S. the next evolution with two new campaigns, "Invis is trauma-free", targeted at teens, and "Invis is when everything clicks", targeted at adults.
Our Invis is trauma-free campaign highlights the benefits of Invisalign treatment, while numerously juxtaposing teens with the significant hassles involved with using braces. Our Invis is when everything clicks campaign showcases of Invisalign treatment transforming smiles and the resulting confidence it gives to young adults. Both campaigns will be rolled out to markets around the world in Q3. Advancing of our consumer patient app, My Invisalign, continued to increase with 1.8 million downloads to date. Uses of our four digital tools continues to increase, for example, Invisalign virtual appointment tool was used over 12,000 times, and our insurance verification feature was used 36,000 times in Q2. Further, we received more than 91,000 patient photos in our virtual care feature globally, which continues to provide us with rich data to leverage our artificial intelligence capabilities and improve our services for doctors and patients. Additional consumer demand metrics are included in our Q2 earnings slides posted on our website.
We are pleased with our Q2 Systems and Services revenues, which were up 5% sequentially and up 1% year-over-year. Q2 sequential growth primarily reflects higher scanner volumes in the Americas and APAC, in increased subscriptions. Year-over-year results primarily reflect increased scanner revenues in the Americas, offset by lower volume in APAC and EMEA. Growth of our iTero scanner installed base is driving an increase in services revenue. On a year-over-year basis, Systems and Services growth reflects increased service revenues from our largest scanner installed base, higher subscription revenues and increased sales of scanner once leased. The number of intraoral digital scans used for Invisalign case submissions in Q2 reflect continued adoption of our digital scanners and our larger installed base. Total worldwide intraoral digital scan submitted to start an Invisalign case in Q2 increased 88.4% from 82.2% in Q2 of last year. International intraoral digital scans for Invisalign case submissions increased 84.4%, up from 76.2% in Q2 of last year. For the Americas, 91.4% of Invisalign cases were submitted using an intraoral digital scan compared to 87% in Q2 last year.
Cumulatively, over 60.4 million orthodontic scans and over 12.6 million restorative scans have been performed with iTero scanners. Our Q2 exocad CAD/CAM products and services, which include restorative dentistry, implantology, guided surgery and smile design offerings are included in our Systems and Services revenue. Exocad products and services are helping extend our digital dental solutions and broaden the aligned digital platform towards fully integrated interdisciplinary end-to-end workflows. During the quarter, exocad released dental CAD3.1 Rijeka in the new powerful lab software, which saves design time and offers more intuitive workflows along the designs earning from CAD to CAM. In addition, the release -- the exocad release launched the new, myexocad, portal, introducing mandatory end-user software use registration that for the first time, allows exocad to collect information about who and how customers are using the software. This expands the opportunities for future product improvements.
Also during the quarter, we signed a new long-term contract with exocad largest customer, [Indecipherable], further strengthening our relationship. Finally, we continue to execute our strategy of geographic expansion. In June, our European manufacturing facility in Wroclaw, Poland, began manufacturing clear aligners for the EMEA region, locally, for the first time. We also continued our operational expansion in Poland with our latest treatment planning facility. Our expanded operation in Poland supports Invisalign doctors in local languages, increases our flexibility and timeliness in supporting our doctor customers across the region, and we expect will positively influence the quality and time of preparation of ClinCheck treatment plans and provide our doctor customers with benefits of digital orthodontics with the Invisalign system. We are uniquely positioned with manufacturing and treatment planning in all three regions, and no other clear aligner manufacturer has our global footprint and capabilities.
With that, I'll now turn the call over to John.