Materialise, a prominent provider of additive manufacturing and medical software, along with advanced 3D printing services, has released its financial results for the third quarter ending September 30, 2024.
Third Quarter 2024 Highlights
- Revenue Growth: Total revenue rose by 14.2%, reaching €68.65 million compared to €60.13 million in Q3 2023.
- Gross Profit Margin: The gross profit margin for Q3 2024 was 57.2%, an increase from 56.0% in the same quarter last year.
- Adjusted EBIT: Adjusted EBIT surged to €4.41 million in Q3 2024, up from €2.33 million in Q3 2023. Adjusted EBITDA also increased to €9.90 million from €7.86 million year-over-year.
- Net Profit: Net profit for Q3 2024 stood at €3.04 million, or €0.05 per diluted share, down from €4.01 million, or €0.07 per diluted share, in the same quarter of 2023.
CEO Brigitte de Vet-Veithen stated, “In the third quarter of 2024, Materialise achieved strong operational results once again. Our consolidated revenue of €68.65 million represents a more than 14% increase from last year, with all three business segments contributing to this growth. The Materialise Medical segment performed particularly well, boasting a revenue increase of over 24%. Furthermore, we raised our consolidated Adjusted EBIT by 89% to €4.41 million while continuing to invest in future growth.”
Detailed Financial Results
- Total Revenue: The total revenue for Q3 2024 increased to €68.65 million from €60.13 million in Q3 2023. Adjusted EBIT rose to €4.41 million, yielding an Adjusted EBIT margin of 6.4%, compared to 3.9% in the same quarter of the previous year. Adjusted EBITDA increased to €9.90 million, up from €7.86 million year-over-year.
- Materialise Medical Segment: Revenue in the Materialise Medical segment grew by 24.5% to €30.20 million compared to €24.26 million in the same quarter of 2023. The segment’s Adjusted EBITDA increased by 38.5% to €9.90 million, with an Adjusted EBITDA margin of 32.8%, compared to 29.4% in Q3 2023.
- Materialise Software Segment: Revenue from the Materialise Software segment rose by 2.8% to €11.11 million, up from €10.81 million in the same quarter last year. Adjusted EBITDA in this segment increased by 10.9% to €1.98 million, while the Adjusted EBITDA margin improved to 17.8% from 16.5%.
- Materialise Manufacturing Segment: Revenue in the Manufacturing segment increased by 9.1% to €27.34 million compared to €25.06 million in Q3 2023. However, Adjusted EBITDA dropped to €701,000 from €1.07 million, with an Adjusted EBITDA margin of 2.6%, down from 4.3% in the previous year.
- Gross Profit: Gross profit was €39.30 million, compared to €33.70 million in the same quarter last year, leading to a gross profit margin increase to 57.2%.
- Operating Expenses: Research and development, sales and marketing, and general and administrative expenses collectively rose by 11.8% to €35.86 million, up from €32.08 million in Q3 2023.
- Net Financial Results: The net financial result was -€1.14 million, down from €1.32 million in Q3 2023, primarily due to unfavorable currency exchange impacts. The third quarter of 2024 also included income tax results of -€138,000 compared to €363,000 in Q3 2023.
- Net Profit: Consequently, net profit for Q3 2024 was €3.04 million, down from €4.01 million in the same period in 2023. Total comprehensive income, which includes exchange differences from foreign operations, was €3.78 million compared to €3.24 million in Q3 2023.
- Cash and Debt: As of September 30, 2024, cash and cash equivalents totaled €116.16 million, down from €127.57 million at the end of 2023. Gross debt stood at €53.04 million, compared to €64.40 million at year-end 2023. This results in a net cash position of €63.13 million, slightly down from €63.18 million at the end of 2023.
- Cash Flow: Cash flow from operating activities for Q3 2024 was €6.87 million, compared to €8.14 million for the same period in 2023. Capital expenditures for the third quarter amounted to €7.33 million.
- Shareholders’ Equity: Net shareholders’ equity as of September 30, 2024, was €246.99 million, compared to €236.59 million at the end of 2023.
2024 Guidance
Mrs. de Vet-Veithen concluded, “The strong operational performance across our business segments over the first nine months of this year gives us confidence that our full-year 2024 revenues will fall within our previously communicated range of €265 million to €275 million. Despite the integration of our recent FEops acquisition, we are maintaining our Adjusted EBIT guidance of €11 million to €14 million for fiscal year 2024.”
Non-IFRS Measures
Materialise utilizes non-IFRS measures such as EBIT, EBITDA, Adjusted EBIT, and Adjusted EBITDA to provide additional insights into its financial performance. These metrics help to exclude the effects of items that primarily reflect financing decisions and the impacts of long-term investments rather than day-to-day operational performance. Management believes these measures are useful for evaluating growth potential and valuation.
Exchange Rate Information
This document includes translations of certain euro amounts into U.S. dollars for convenience. Unless otherwise noted, all conversions were made at the rate of €1.00 to $1.1196, the reference rate of the European Central Bank on September 30, 2024.
Conference Call and Webcast
Materialise will hold a conference call and live webcast to discuss its Q3 2024 financial results on Thursday, October 24, 2024, at 8:30 a.m. ET/2:30 p.m. CET. Participants can register for the call here. The call will also be available for streaming on the company’s website at investors.materialise.com, and an archived version will be accessible for one year
