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, 2024.
Highlights – Third Quarter 2023
- Total revenue increased 14.2% to 68,652 kEUR compared to 60,130 kEUR for the third quarter of 2023.
- Gross profit as a percentage of revenue for the third quarter of 2024 was 57.2%, compared to 56.0% for the third quarter of 2023.
- Adjusted EBIT increased to 4,408 kEUR for the third quarter of 2024 from 2,330 kEUR for the 2023 period, while Adjusted EBITDA increased to 9,895 kEUR for the third quarter of 2024 from 7,857 kEUR for the 2023 period.
- Net profit for the third quarter of 2024 was 3,038 kEUR, or 0.05 EUR per diluted share, compared to 4,013 kEUR, or 0.07 EUR per diluted share, for the corresponding 2023 period.
CEO Brigitte de Vet-Veithen commented, “In the third quarter of 2024 Materialise once again delivered strong operational results. Our consolidated revenue of 68,652 kEUR rose more than 14% compared to the same period last year, with increased revenue in all three of our business segments. Materialise Medical posted an especially strong quarter with revenue increasing more than 24%. At the same time, we grew our consolidated Adjusted EBIT by 89% to 4,408 kEUR without compromising our continued investments to drive future growth.”
Third Quarter 2024 Results
Total revenue for the third quarter of 2024 increased 14.2% to 68,652 kEUR from 60,130 kEUR for the third quarter of 2023. Adjusted EBIT increased to 4,408 kEUR for the third quarter of 2024 from 2,330 kEUR for the 2023 period. The Adjusted EBIT margin (Adjusted EBIT divided by total revenue) for the third quarter of 2024 was 6.4%, compared to 3.9% for the third quarter of 2023. Adjusted EBITDA increased to 9,895 kEUR for the third quarter of 2024 from 7,857 kEUR for the 2023 period.
Revenue from our Materialise Medical segment increased by 24.5% to 30,197 kEUR for the third quarter of 2024 compared to 24,263 kEUR for the same period in 2023. Segment Adjusted EBITDA increased by 38.5% to 9.895 kEUR for the third quarter of 2024 compared to 7,143 kEUR while the segment Adjusted EBITDA margin was 32.8% compared to 29.4% for the third quarter of 2023.
Revenue from our Materialise Software segment increased by 2.8% to 11,111 kEUR for the third quarter of 2024 compared to 10,811 kEUR for the same quarter last year. Segment Adjusted EBITDA increased by 10.9% to 1,975 kEUR from 1,781 kEUR while the segment Adjusted EBITDA margin was 17.8% compared to 16.5% for the corresponding prior-year period.
Revenue from our Materialise Manufacturing segment increased by 9.1% to 27,344 kEUR for the third quarter of 2024 compared to 25,056 kEUR for the third quarter of 2023. Segment Adjusted EBITDA amounted to 701 kEUR compared to 1,074 kEUR for the same period last year, while the segment Adjusted EBITDA margin was 2.6% compared to 4.3% for the third quarter of 2023.
Gross profit was 39,297 kEUR compared to 33,696 kEUR for the same period last year, while gross profit as a percentage of revenue increased to 57.2% compared to 56.0% for the third quarter of 2023.
Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased in the aggregate by 11.8% to 35,856 kEUR for the third quarter of 2024 from 32,076 kEUR for the third quarter of 2023.
Net other operating income increased to 872 kEUR from 710 kEUR for the third quarter of 2023.
Operating result amounted to 4,313 kEUR compared to 2,330 kEUR for the third quarter of 2023.
Net financial result was (1,137) kEUR compared to 1,319 kEUR for the third quarter of 2023 reflecting the impact of unfavorable currency exchange effects.
The third quarter of 2024 contained income tax results of (138) kEUR compared to 363 kEUR in the third quarter of 2023.
As a result of the above, net profit for the third quarter of 2024 was 3,038 kEUR, compared to 4,013 kEUR for the same period in 2023. Total comprehensive income for the third quarter of 2024, which includes exchange differences on translation of foreign operations, was 3,777 kEUR compared to 3,242 kEUR for the corresponding 2023 period.
At September 30, 2024, we had cash and cash equivalents of 116,163 kEUR, compared to 127,573 kEUR at December 31, 2023. Gross debt amounted to 53,037 kEUR compared to 64,398 kEUR at December 31, 2023. As a result, our net cash position (cash and cash equivalents less gross debt) was 63,126 kEUR compared to 63,175 kEUR at December 31, 2023.
Cash flow from operating activities for the third quarter of the year 2024 was 6,870 kEUR, compared to 8,143 kEUR for the same period in 2023. Total capital expenditures for the third quarter of the year 2024 amounted to 7,328 kEUR.
Net shareholders’ equity at September 30, 2024 was 246,989 kEUR compared to 236,594 kEUR at December 31, 2023.
2024 Guidance
Mrs. de Vet-Veithen concluded, “The consistently strong operational performance of our business segments throughout the first nine months of this year strengthens our confidence that our full-year 2024 revenues will be within our previously communicated range of 265,000 to 275,000 kEUR. In spite of the integration of the recent FEops acquisition, we are also maintaining our Adjusted EBIT guidance of 11,000 kEUR to 14,000 kEUR for fiscal year 2024.”
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the third quarter of 2024 on Thursday, October 24, 2024, at 8:30 a.m. ET/2:30 p.m. CET. Company participants on the call will include Brigitte de Vet-Veithen, Chief Executive Officer 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.
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.
