Materialise NV, a leading provider of additive manufacturing and medical software and of sophisticated 3D printing services, announced its financial results for the third quarter ended September 30, 2023.
Highlights – Third Quarter 2023
- Total revenue increased 3.2% to 60,130 kEUR compared to 58,288 kEUR for the third quarter of 2022.
- Total deferred revenue from annual software sales and maintenance fees amounted to 40,079 kEUR compared to 42,780 kEUR at December 31, 2022.
- Adjusted EBITDA increased 55% to 7,857 kEUR compared to 5,072 kEUR for the corresponding 2022 period.
- Net profit for the third quarter of 2023 increased 184% to 4,013 kEUR, or 0.07 EUR per diluted share, compared to 1,413 kEUR, or 0.02 EUR per diluted share, for the corresponding 2022 period.
Executive Chairman Peter Leys commented, “Once again, demand for our products and solutions remained solid throughout the third quarter of this year. While uncertain global macro-economic conditions primarily impacted our Materialise Manufacturing segment, Materialise’s consolidated revenue continued to grow, by 3% compared to the same period last year. This strong performance was mainly driven by the continued double-digit revenue increase of our Materialise Medical segment. At the same time, we grew our consolidated Adjusted EBITDA by 55% to 7,857 kEUR through our focus on leveraging scaling effects and cost control, and without compromising on our continued investments in our growth businesses.”
Third Quarter 2023 Results
Total revenue for the third quarter of 2023 increased 3.2% to 60,130 kEUR from 58,288 kEUR for the third quarter of 2022. Adjusted EBITDA amounted to 7,857 kEUR for the third quarter of 2023, a 55% increase compared to 5,072 kEUR for the corresponding 2022 period. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the third quarter of 2023 was 13.1% compared to 8.7% for the third quarter of 2022.
Revenue from our Materialise Software segment was 10,811 kEUR for the third quarter of 2023 compared to 10,863 kEUR for the same quarter last year. Segment EBITDA increased significantly to 1,781 kEUR from 202 kEUR while the segment EBITDA margin was 16.5% compared to 1.9% for the corresponding prior-year period.
Revenue from our Materialise Medical segment increased by 13.4% to 24,263 kEUR for the third quarter of 2023 compared to 21,391 kEUR for the same period in 2022. Segment EBITDA increased by 50% to 7,143 kEUR for the third quarter of 2023 compared to 4,765 kEUR while the segment EBITDA margin was 29.4% compared to 22.3% for the third quarter of 2022.
Revenue from our Materialise Manufacturing segment decreased 3.8% to 25,056 kEUR for the third quarter of 2023 from 26,033 kEUR for the third quarter of 2022. Segment EBITDA amounted to 1,074 kEUR compared to 2,530 kEUR for the same period last year, while the segment EBITDA margin was 4.3% compared to 9.7% for the third quarter of 2022.
Gross profit was 33,696 kEUR compared to 32,042 kEUR for the same period last year, while gross profit as a percentage of revenue increased to 56.0% compared to 55.0% for the third quarter of 2022.
Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses decreased, in the aggregate, 4.2% to 32,076 kEUR for the third quarter of 2023 from 33,491 kEUR for the third quarter of 2022.
Net other operating income decreased to 710 kEUR from 1,166 kEUR for the third quarter of 2022.
Operating result amounted to 2,330 kEUR compared to (282) kEUR for the third quarter of 2022.
Net financial result was 1,319 kEUR compared to 2,173 kEUR for the third quarter of 2022.
The third quarter of 2023 contained income tax results of 363 kEUR compared to (478) kEUR in the third quarter of 2022.
As a result of the above, net profit for the third quarter of 2023 was 4,013 kEUR, compared to 1,413 kEUR for the same period in 2022. Total comprehensive income for the third quarter of 2023, which includes exchange differences on translation of foreign operations, was 3,242 kEUR compared to 1,638 kEUR for the corresponding 2022 period.
At September 30, 2023, we had cash and cash equivalents of 133,953 kEUR, compared to 140,867 kEUR at December 31, 2022. Gross debt amounted to 66,222 kEUR compared to 80,980 kEUR at December 31, 2022. As a result, our net cash position (cash and cash equivalents less gross debt) was 67,731 kEUR compared to 59,887 kEUR at December 31, 2022.
Cash flow from operating activities for the third quarter of the year 2023 was 8,143 kEUR, compared to 3,840 kEUR for the same period in 2022. Total capital expenditures for the third quarter of 2023 amounted to 3,920 kEUR.
Net shareholders’ equity at September 30, 2023 was 236,631 kEUR compared to 228,928 kEUR at December 31, 2022.
2023 Guidance
Mr. Leys concluded, “The revenue growth posted by each of our business segments during the first nine months of this year strengthens our confidence that our full-year 2023 revenues will be, in spite of the challenging macro-economic circumstances, well within our previously communicated range of 255,000 kEUR to 260,000 kEUR. At the same time, we are maintaining our Adjusted EBITDA guidance of between 28,000 kEUR and 33,000 kEUR for fiscal year 2023.”
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the third quarter of 2023 on Thursday, October 26, 2023, at 8:30 a.m. ET/2:30 p.m. CET. Company participants on the call will include Wilfried Vancraen, Founder and Chief Executive Officer; Peter Leys, Executive Chairman; and Koen Berges, Chief Financial Officer. A question-and-answer session will follow management’s remarks.
- To access the conference call by phone, please click the link below at least 15 minutes prior to the scheduled start time and you will be provided with dial-in details. Participants can choose to dial in or to receive a call to connect to Materialise’s conference call.
- https://register.vevent.com/register/BI67b272ddef5b405d8f5d004208bd450f
The conference call will also be broadcast live over the Internet with an accompanying slide presentation, which can be accessed on the company’s website at http://investors.materialise.com. A webcast of the conference call will be archived on the company's website for one year.
