Steve Valiquette

Steve Valiquette inquired about overall clear aligner pricing trends in the broader global marketplace, specifically if competitor price increases (potentially due to tariffs or profitability) are driving higher prices across the competitive landscape and if this was a factor in Align Technology's guidance.

Answer

CFO John Morici stated that competitor pricing actions are not directly factored into Align's guidance, which is based on the company's own business drivers and active conversion approach. However, he acknowledged that many competitors are increasing prices for various reasons, which he views as a positive development in the long run that could indirectly benefit Align.

Steve Valiquette inquired about broader clear aligner pricing trends across the global marketplace, specifically if competitor price increases (potentially driven by tariffs or profitability) were material enough to factor into Align's guidance or if Align's volume trends would be guided regardless.

Answer

CFO John Morici stated that competitor pricing actions are not factored into Align's guidance, which is based on internal strategies to drive business and adoption. He noted that many competitors are increasing prices for various reasons, which is likely a positive long-term trend for the industry, but not a direct driver of Align's current guidance.

Steve Valiquette of Mizuho noted that managed care companies are reporting higher behavioral health costs and asked if Talkspace is seeing new efforts from commercial payers to manage this trend and how Talkspace is positioned in that context.

Answer

CEO Jon Cohen clarified that Talkspace is positioned as part of the solution for payers, not a target for cost-cutting. He explained that the platform offers a lower-cost option for care compared to many traditional providers. While risk-based contracts have been discussed, he sees Talkspace as a key partner for payers to manage mental health costs effectively.

Steve Valiquette of Mizuho asked about the trend of managed care companies citing higher behavioral health costs and whether Talkspace sees a risk of payers aggressively managing utilization in the commercial market.

Answer

CEO Jon Cohen positioned Talkspace as part of the solution for payers, highlighting that the platform is a lower-cost option compared to many traditional providers. He added that Talkspace is open to value-based and risk-based contracts to help payers manage costs, though the market is not yet broadly ready for risk in mental health.