Materialise Reports Third Quarter 2024 Results

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.

About Materialise

Materialise incorporates over 30 years of 3D printing experience into a range of software solutions and 3D printing services, which form the backbone of the 3D printing industry. Materialise’s open and flexible solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build innovative 3D printing applications that aim to make the world a better and healthier place. Headquartered in Belgium, with branches worldwide, Materialise combines one of the largest groups of software developers in the industry with one of the largest and most complete 3D printing facilities in the world. For additional information, please visit: www.materialise.com.

Cautionary Statement on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations, plans, objectives, strategies and prospects, both financial and business, including statements concerning, among other things, our estimates for the current fiscal year’s revenue and Adjusted EBIT, our results of operations, cash needs, capital expenditures, expenses, financial condition, liquidity, prospects, growth and strategies (including how our business, results of operations and financial condition could be impacted by the current armed conflicts in the Middle East and Ukraine and governmental responses thereto, inflation, increased labor, energy and materials costs), and the trends and competition that may affect the markets, industry or us. Such statements are subject to known and unknown uncertainties and risks. When used in this press release, the words “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “believe,” “forecast,” “will,” “may,” “could,” “might,” “aim,” “should,” and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon the expectations of management under current assumptions at the time of this press release. These expectations, beliefs and projections are expressed in good faith and the company believes there is a reasonable basis for them. However, the company cannot offer any assurance that our expectations, beliefs and projections will actually be achieved. By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics and industry change, and depend on economic circumstances that may or may not occur in the future or may occur on longer or shorter timelines than anticipated. We caution you that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All of the forward-looking statements are subject to risks and uncertainties that may cause the company's actual results to differ materially from our expectations, including risk factors described in the company's most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission. There are a number of risks and uncertainties that could cause the company's actual results to differ materially from the forward-looking statements contained in this press release.

The company is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.

 

Consolidated income statements (Unaudited)

for the three months ended
September 30,

for the nine months ended
September 30,

In '000

2024

2024

2023

2024

2023

U.S.$
Revenue

76,862

68,652

60,130

201,085

190,832

Cost of Sales

(32,866)

(29,355)

(26,435)

(86,625)

(83,249)

Gross Profit

43,997

39,297

33,696

114,461

107,583

Gross profit as % of revenue

57.2%

57.2%

56.0%

56.9%

56.4%

 
Research and development expenses

(12,292)

(10,979)

(9,476)

(32,301)

(27,982)

Sales and marketing expenses

(16,678)

(14,896)

(13,960)

(45,130)

(42,418)

General and administrative expenses

(11,175)

(9,981)

(8,640)

(29,195)

(27,213)

Net other operating income (expenses)

977

872

710

2,866

(3,238)

Operating (loss) profit

4,829

4,313

2,330

10,700

6,732

 
Financial expenses

(2,063)

(1,843)

(1,554)

(4,082)

(3,599)

Financial income

791

706

2,873

5,489

4,987

(Loss) profit before taxes

3,557

3,176

3,649

12,106

8,120

 
Income Taxes

(154)

(138)

363

(1,607)

(886)

Net (loss) profit for the period

3,403

3,038

4,013

10,500

7,234

Net (loss) profit attributable to:
The owners of the parent

3,409

3,045

4,017

10,520

7,251

Non-controlling interest

(8)

(7)

(5)

(20)

(17)

 
Earning per share attributable to owners of the parent
Basic

0.06

0.05

0.07

0.18

0.12

Diluted

0.06

0.05

0.07

0.18

0.12

 
Weighted average basic shares outstanding

59,067

59,067

59,067

59,067

59,067

Weighted average diluted shares outstanding

59,067

59,067

59,068

59,067

59,070

 

Consolidated statements of comprehensive income (Unaudited)

for the three months ended
September 30,

for the nine months ended
September 30,

In 000€

2024

2024

2023

2024

2023

U.S.$
Net profit (loss) for the period

3,403

3,038

4,013

10,500

7,234

Other comprehensive income
Recycling
Exchange difference on translation of foreign operations

827

739

(770)

(317)

471

Other comprehensive income (loss), net of taxes

827

739

(770)

(317)

471

Total comprehensive income (loss) for the year, net of taxes

4,229

3,777

3,242

10,183

7,705

Total comprehensive income (loss) attributable to:
The owners of the parent

4,237

3,785

3,248

10,204

7,721

Non-controlling interests

(8)

(7)

(5)

(21)

(15)

 

Consolidated statement of financial position (Unaudited)

As of
September 30,

As of
December 31,

In 000€

2024

2023

Assets
Non-current assets
Goodwill

43,355

43,158

Intangible assets

30,987

31,464

Property, plant & equipment

104,856

95,400

Right-of-Use assets

7,889

8,102

Deferred tax assets

2,673

2,797

Investments in convertible loans

3,931

3,744

Other non-current assets

5,829

5,501

Total non-current assets

199,520

190,166

Current assets
Inventories

17,400

17,034

Trade receivables

49,761

52,698

Other current assets

11,814

9,161

Cash and cash equivalents

116,163

127,573

Total current assets

195,138

206,465

Total assets

394,658

396,630

 

As of
September 30,

As of
December 31,

In 000€

2024

2023

Equity and liabilities
Equity
Share capital

4,487

4,487

Share premium

234,155

233,942

Retained earnings and other reserves

8,419

(1,783)

Equity attributable to the owners of the parent

247,061

236,646

Non-controlling interest

(72)

(53)

Total equity

246,989

236,594

Non-current liabilities
Loans & borrowings

23,880

33,582

Lease liabilities

5,403

5,333

Deferred tax liabilities

3,324

3,725

Deferred income

6,528

10,701

Other non-current liabilities

697

1,745

Total non-current liabilities

39,832

55,086

Current liabilities
Loans & borrowings

21,294

22,873

Lease liabilities

2,460

2,610

Trade payables

21,225

21,196

Tax payables

2,924

1,777

Deferred income

40,878

40,791

Other current liabilities

19,056

15,703

Total current liabilities

107,837

104,950

Total equity and liabilities

394,658

396,630

 

Consolidated statement of cash flows (Unaudited)

for the nine months ended
September 30,

In 000€

2024

2023

Operating activities
Net (loss) profit for the period

10,500

7,234

Non-cash and operational adjustments

16,964

15,136

Depreciation of property plant & equipment

11,370

11,162

Amortization of intangible assets

4,838

5,046

Share-based payment expense

213

-

Loss (gain) on disposal of intangible assets and property, plant & equipment

(114)

(401)

Movement in provisions

311

(434)

Movement reserve for bad debt and slow moving inventory

202

445

Financial income

(5,492)

(4,811)

Financial expense

4,066

3,389

Impact of foreign currencies

(15)

(152)

(Deferred) income taxes

1,584

892

Working capital adjustments

(3,860)

(3,601)

Decrease (increase) in trade receivables and other receivables

1,666

8,965

Decrease (increase) in inventories and contracts in progress

(672)

(751)

Increase (decrease) in deferred revenue

(4,284)

(4,532)

Increase (decrease) in trade payables and other payables

(569)

(7,283)

Income tax paid & Interest received

1,635

1,194

Net cash flow from operating activities

25,239

19,963

 

for the nine months ended
September 30,

In 000€

2024

2023

Investing activities
Purchase of property, plant & equipment

(17,305)

(6,862)

Purchase of intangible assets

(1,312)

(2,448)

Proceeds from the sale of property, plant & equipment & intangible assets (net)

232

645

Acquisition of subsidiary (net of cash)

(2,670)

-

Net cash flow used in investing activities

(21,055)

(8,665)

Financing activities
Repayment of loans & borrowings

(11,470)

(14,334)

Repayment of leases

(2,314)

(2,640)

Capital increase

-

-

Interest paid

(1,052)

(1,334)

Other financial income (expense)

(240)

(25)

Net cash flow from (used in) financing activities

(15,077)

(18,334)

Net increase/(decrease) of cash & cash equivalents

(10,892)

(7,037)

Cash & Cash equivalents at the beginning of the year

127,573

140,867

Exchange rate differences on cash & cash equivalents

(517)

123

Cash & cash equivalents at end of the period

116,163

133,953

 

Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)

 

for the three months ended
September 30,

for the nine months ended
September 30,

In 000€

2024

2023

2024

2023

Net profit (loss) for the period

3,038

4,013

10,500

7,234

Income taxes

138

(363)

1,607

886

Financial expenses

1,843

1,554

4,082

3,599

Financial income

(706)

(2,873)

(5,489)

(4,987)

Depreciation and amortization

5,487

5,527

16,241

16,191

EBITDA

9,800

7,857

26,941

22,923

Share-based compensation expense (1)

71

-

213

-

Acquisition-related expenses of business combinations (2)

24

-

24

-

Adjusted EBITDA

9,895

7,857

27,178

22,923

 
(1) Share-based compensation expense represents the cost of equity-settled and share-based payments to employees.
(2) Acquisition-related expenses of business combinations represent expenses incurred in connection with the acquisition of Feops.
 
 
Reconciliation of Net Profit (Loss) to EBIT and Adjusted EBIT (Unaudited)
 

for the three months ended
September 30,

for the nine months ended
September 30,

In 000€

2024

2023

2024

2023

Net profit (loss) for the period

3,038

4,013

10,500

7,234

Income taxes

138

(363)

1,607

886

Financial expenses

1,843

1,554

4,082

3,599

Financial income

(706)

(2,873)

(5,489)

(4,987)

EBIT

4,313

2,330

10,700

6,732

Share-based compensation expense (1)

71

-

213

-

Acquisition-related expenses of business combinations (2)

24

-

24

-

Adjusted EBIT

4,408

2,330

10,937

6,732

 
(1) Share-based compensation expense represents the cost of equity-settled and share-based payments to employees.
(2) Acquisition-related expenses of business combinations represent expenses incurred in connection with the acquisition of Feops.
 

Segment P&L (Unaudited)

 
In 000€ Materialise
Medical
Materialise
Software
Materialise
Manufacturing
Total
segments
Unallocated (1) Consolidated
For the three months ended September 30, 2024
Revenues

30,197

11,111

27,344

68,652

(0)

68,652

Segment (adj) EBITDA

9,895

1,975

701

12,572

(2,677)

9,895

Segment (adj) EBITDA %

32.8%

17.8%

2.6%

18.3%

14.4%

For the three months ended September 30, 2023
Revenues

24,263

10,811

25,056

60,130

0

60,130

Segment (adj) EBITDA

7,143

1,781

1,074

9,998

(2,141)

7,857

Segment (adj) EBITDA %

29.4%

16.5%

4.3%

16.6%

13.1%

 
 
In 000€ Materialise
Medical
Materialise
Software
Materialise
Manufacturing
Total
segments
Unallocated (1) Consolidated
For the nine months ended September 30, 2024
Revenues

84,522

32,775

83,789

201,085

0

201,085

Segment (adj) EBITDA

26,015

4,439

4,648

35,103

(7,925)

27,178

Segment (adj) EBITDA %

30.8%

13.5%

5.5%

17.5%

13.5%

For the nine months ended September 30, 2023
Revenues

73,528

33,192

84,112

190,832

0

190,833

Segment (adj) EBITDA

17,179

6,190

6,980

30,349

(7,426)

22,923

Segment (adj) EBITDA %

23.4%

18.7%

8.3%

15.9%

12.0%

 
(1) Unallocated segment adjusted EBITDA consists of corporate research and development and corporate other operating income (expense), and the added share-based compensation expenses, acquisition related expenses of business combinations, impairments and fair value of business combinations that are included in Adjusted EBITDA.
 

Reconciliation of Net Profit (Loss) to Segment adjusted EBITDA (Unaudited)

 

for the three months ended
September 30,

for the nine months ended
September 30,

In 000€

2024

2023

2024

2023

Net profit (loss) for the period

3,038

4,013

10,500

7,234

Income taxes

138

(363)

1,607

886

Financial cost

1,843

1,554

4,082

3,599

Financial income

(706)

(2,873)

(5,489)

(4,987)

Operating (loss) profit

4,313

2,330

10,700

6,732

Depreciation and amortization

5,487

5,527

16,241

16,191

Corporate research and development

912

604

2,675

2,063

Corporate headquarter costs

2,454

2,399

7,537

7,636

Other operating income (expense)

(618)

(862)

(2,073)

(2,274)

Segment EBITDA adjustments (1)

24

24

Segment adjusted EBITDA

12,572

9,998

35,103

30,349

 
(1) Acquisition-related expenses of business combinations represent expenses incurred in connection with the acquisition of Feops.

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