MTLS Materialise NV

Materialise NV (NASDAQ:MTLS), a leading provider of additive manufacturing and medical software and of sophisticated 3D printing services, today announced its financial results for the second quarter ended June 30, 2024.

Highlights – Second Quarter 2024

• Total revenue increased 6.2% to 68,797 kEUR compared to 64,810 kEUR for the second quarter of 2023.
• Gross profit as a percentage of revenue for the second quarter of 2024 was 57.0%, in line with 57.2% for the corresponding 2023 period.
• Adjusted EBIT increased to 3,872 kEUR for the second quarter of 2024 from (597) kEUR for the 2023 period, while Adjusted EBITDA increased to 9,188 kEUR for the second quarter of 2024 from 4,755 kEUR for the 2023 period.
• Net profit for the second quarter of 2024 was 3,875 kEUR, or 0.07 EUR per diluted share, compared to (494) kEUR, or (0.01) EUR per diluted share, for the corresponding 2023 period.

CEO Brigitte de Vet-Veithen commented, “In the second quarter of 2024 Materialise continued on its growth path, generating record-high quarterly revenue of 68,797 kEUR. This represents growth of more than 6% compared to an already strong second quarter in 2023. We are especially pleased that all three of our business segments reported increased revenue. Materialise Medical turned in another strong performance, growing by 13%, while also Materialise Software and Materialise Manufacturing posted higher revenues. This solid topline performance enabled us to intensify our investments while maintaining net profitability. In another step forward, in July 2024 we acquired FEops, a Belgian company that develops AI-driven simulation technology to improve procedure efficiency and clinical outcomes for structural heart interventions. The acquisition positions Materialise to advance the personalized treatment of patients with heart diseases.”

Second Quarter 2024 Results

Total revenue for the second quarter of 2024 increased 6.2% to 68,797 kEUR from 64,810 kEUR for the second quarter of 2023. Adjusted EBIT increased to 3,872 kEUR for the second quarter of 2024 from (597) kEUR for the 2023 period. The Adjusted EBIT margin (Adjusted EBIT divided by total revenue) for the second quarter of 2024 was 5.6%, compared to (0.9)% for the second quarter of 2023. Adjusted EBITDA increased to 9,188 kEUR for the second quarter of 2024 from 4,755 kEUR for the 2023 period.

Revenue from our Materialise Medical segment increased 12.8% to 28,141 kEUR for the second quarter of 2024 compared to 24,945 kEUR for the same period in 2023. Segment Adjusted EBITDA amounted to 8,199 kEUR for the second quarter of 2024 compared to 2,683 kEUR while the segment Adjusted EBITDA margin was 29.1% compared to 10.8% for the second quarter of 2023.

Revenue from our Materialise Software segment increased 1.8% to 11,226 kEUR for the second quarter of 2024 from 11,030 kEUR for the same quarter last year. Segment Adjusted EBITDA decreased to 1,374 kEUR from 1,973 kEUR while the segment Adjusted EBITDA margin was 12.2% compared to 17.9% for the corresponding prior-year period reflecting the impact of increased development investments.

Revenue from our Materialise Manufacturing segment increased 2.1% to 29,429 kEUR for the second quarter of 2024 from 28,835 kEUR for the second quarter of 2023. Segment Adjusted EBITDA amounted to 2,416 kEUR compared to 2,708 kEUR for last year’s same period, while the segment Adjusted EBITDA margin was 8.2% compared to 9.4% for the second quarter of 2023.

Gross profit was 39,227 kEUR for the second quarter of 2024 compared to 37,047 kEUR for the same period last year, while gross profit as a percentage of revenue remained stable at 57.0% compared to 57.2% for the second 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 10.4% to 36,631 kEUR for the second quarter of 2024 from 33,176 kEUR for the second quarter of 2023.

Net other operating income was 1,205 kEUR compared to (4,468) kEUR for the second quarter of 2023.

Operating result amounted to 3,801 kEUR compared to (597) kEUR for the second quarter of 2023.

Net financial result was 1,033 kEUR compared to 635 kEUR for the second quarter of 2023.

The second quarter of 2024 contained income tax expenses of (959) kEUR, compared to (532) kEUR in the second quarter of 2023.

As a result of the above, net result for the second quarter of 2024 was 3,875 kEUR, compared to (494) kEUR for the same period in 2023. Total comprehensive income for the second quarter of 2024, which includes exchange differences on translation of foreign operations, was 3,093 kEUR compared to 140 kEUR for the corresponding 2023 period.

At June 30, 2024, we had cash and cash equivalents of 125,492 kEUR compared to 127,573 kEUR at December 31, 2023. Gross debt amounted to 57,968 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 67,524 kEUR, an increase of 4,349 kEUR compared to December 31, 2023.

Cash flow from operating activities for the second quarter of 2024 was 8,400 kEUR compared to 775 kEUR for the same period in 2023. Total cash out from capital expenditures for the second quarter of 2024 amounted to 8,459 kEUR.

Net shareholders’ equity at June 30, 2024 was 243,140 kEUR compared to 236,594 kEUR at December 31, 2023.

2024 Guidance

Mrs. de Vet-Veithen concluded, “Given the strength of our operational performance half-way through 2024 we believe that we are well on track to deliver the growth targets we set earlier. Accordingly, we continue to expect to report consolidated revenue for the full fiscal year 2024 within the 265,000 to 275,000 kEUR range we communicated earlier. We are also maintaining our Adjusted EBIT guidance of 11,000 kEUR to 14,000 kEUR for fiscal year 2024.”

Non-IFRS Measures

Materialise uses EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA as supplemental financial measures of its financial performance. EBIT is calculated as net profit plus income taxes, financial expenses (less financial income) and shares of profit or loss in a joint venture. EBITDA is calculated as net profit plus income taxes, financial expenses (less financial income), shares of profit or loss in a joint venture and depreciation and amortization. Adjusted EBIT and Adjusted EBITDA are determined by adding share-based compensation expenses, acquisition-related expenses of business combinations, impairments and revaluation of fair value due to business combinations to EBIT and EBITDA, respectively. Management believes these non-IFRS measures to be important measures as they exclude the effects of items which primarily reflect the impact of financing decisions and, in the case of EBITDA and Adjusted EBITDA, long term investment, rather than the performance of the company’s day-to-day operations. The company also uses segment Adjusted EBITDA to evaluate the performance of its three business segments. As compared to net profit, these measures are limited in that they do not reflect the cash requirements necessary to service interest or principal payments on the company’s indebtedness and, in the case of EBITDA and Adjusted EBITDA, these measures are further limited in that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the company’s business, or the changes associated with impairments. Management evaluates such items through other financial measures such as financial expenses, capital expenditures and cash flow provided by operating activities. The company believes that these measurements are useful to measure a company’s ability to grow or as a valuation measurement. The company’s calculation of EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA should not be considered as alternatives to net profit or any other performance measure derived in accordance with IFRS. The company’s presentation of EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or non-recurring items.

Exchange Rate

This document contains translations of certain euro amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from euros to U.S. dollars in this document were made at a rate of EUR 1.00 to USD 1.0705, the reference rate of the European Central Bank on June 28, 2024.

Conference Call and Webcast

Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the second quarter of 2024 on Wednesday, July 31, 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 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 receive a call to connect to Materialise’s conference call.

• https://register.vevent.com/register/BI718bb17ca997447a95a1485df6eef011

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 endedJune 30, for the six months endedJune 30, In '000

2024

2024

2023

2024

2023

U.S.$ € € € € Revenue

73,647

68,797

64,810

132,434

130,702

Cost of Sales

(31,654)

(29,570)

(27,764)

(57,270)

(56,814)

Gross Profit

41,992

39,227

37,047

75,164

73,888

Gross profit as % of revenue

57.0%

57.0%

57.2%

56.8%

56.5%

  Research and development expenses

(11,872)

(11,090)

(9,489)

(21,322)

(18,506)

Sales and marketing expenses

(16,738)

(15,636)

(14,159)

(30,234)

(28,459)

General and administrative expenses

(10,603)

(9,905)

(9,528)

(19,214)

(18,573)

Net other operating income (expenses)

1,290

1,205

(4,468)

1,994

(3,948)

Operating (loss) profit

4,069

3,801

(597)

6,387

4,402

  Financial expenses

(1,543)

(1,441)

(670)

(2,239)

(2,045)

Financial income

2,649

2,474

1,305

4,783

2,114

(Loss) profit before taxes

5,175

4,834

38

8,930

4,471

  Income Taxes

(1,026)

(959)

(532)

(1,469)

(1,249)

Net (loss) profit for the period

4,149

3,875

(494)

7,461

3,221

Net (loss) profit attributable to:

-

The owners of the parent

4,156

3,882

(488)

7,474

3,234

Non-controlling interest

(7)

(7)

(6)

(13)

(13)

  Earning per share attributable to owners of the parent Basic

0.07

0.07

(0.01)

0.13

0.05

Diluted

0.07

0.07

(0.01)

0.13

0.05

  Weighted average basic shares outstanding

59,067

59,067

59,067

59,067

59,067

Weighted average diluted shares outstanding

59,067

59,067

59,067

59,077

59,070

Consolidated statements of comprehensive income (Unaudited)

for the three months endedJune 30, for the six months endedJune 30, In 000€

2024

2024

2023

2024

2023

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

4,149

3,875

(494)

7,461

3,221

Other comprehensive income Recycling Exchange difference on translation of foreign operations

(838)

(783)

634

(1,056)

1,242

Other comprehensive income (loss), net of taxes

(838)

(783)

634

(1,056)

1,242

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

3,311

3,093

140

6,406

4,463

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

3,318

3,100

144

6,419

4,473

Non-controlling interests

(8)

(7)

(4)

(14)

(10)

Consolidated statement of financial position (Unaudited)

As ofJune 30, As ofDecember 31, In 000€

2024

2023

Assets Non-current assets Goodwill

43,286

43,158

Intangible assets

29,119

31,464

Property, plant & equipment

102,424

95,400

Right-of-Use assets

8,238

8,102

Deferred tax assets

2,699

2,797

Investments in convertible loans

3,868

3,744

Other non-current assets

6,462

5,501

Total non-current assets

196,096

190,166

Current assets Inventories

17,846

17,034

Trade receivables

49,655

52,698

Other current assets

8,545

9,160

Cash and cash equivalents

125,492

127,573

Total current assets

201,538

206,465

Total assets

397,635

396,630

As ofJune 30, As ofDecember 31, In 000€

2024

2023

Equity and liabilities Equity Share capital

4,487

4,487

Share premium

234,084

233,942

Retained earnings and other reserves

4,635

(1,783)

Equity attributable to the owners of the parent

243,206

236,646

Non-controlling interest

(66)

(53)

Total equity

243,140

236,594

Non-current liabilities Loans & borrowings

27,576

33,582

Lease liabilities

5,587

5,333

Deferred tax liabilities

3,424

3,725

Deferred income

7,302

10,701

Other non-current liabilities

947

1,745

Total non-current liabilities

44,836

55,086

Current liabilities Loans & borrowings

22,219

22,873

Lease liabilities

2,586

2,610

Trade payables

23,764

21,196

Tax payables

2,903

1,777

Deferred income

42,455

40,791

Other current liabilities

15,732

15,703

Total current liabilities

109,659

104,950

Total equity and liabilities

397,635

396,630

Consolidated statement of cash flows (Unaudited)

for the six months endedJune 30, In 000€

2024

2023

Operating activities Net (loss) profit for the period

7,461

3,221

Non-cash and operational adjustments

10,203

11,403

Depreciation of property plant & equipment

7,539

7,364

Amortization of intangible assets

3,204

3,334

Share-based payment expense

142

-

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

(77)

(106)

Movement in provisions

191

(591)

Movement reserve for bad debt and slow moving inventory

272

272

Financial income

(4,762)

(2,095)

Financial expense

2,241

2,055

Impact of foreign currencies

(10)

(84)

(Deferred) income taxes

1,462

1,254

Working capital adjustments

(574)

(3,336)

Decrease (increase) in trade receivables and other receivables

3,134

4,269

Decrease (increase) in inventories and contracts in progress

(1,029)

81

Increase (decrease) in deferred revenue

(1,768)

(1,772)

Increase (decrease) in trade payables and other payables

(911)

(5,914)

Income tax paid & Interest received

1,280

531

Net cash flow from operating activities

18,370

11,818

  for the six months endedJune 30, In 000€

2024

2023

Investing activities Purchase of property, plant & equipment

(10,475)

(4,333)

Purchase of intangible assets

(814)

(1,056)

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

-

218

Acquisition of subsidiary (net of cash)

185

-

Net cash flow used in investing activities

(11,104)

(5,172)

Financing activities Repayment of loans & borrowings

(6,841)

(8,617)

Repayment of leases

(1,517)

(1,744)

Interest paid

(800)

(891)

Other financial income (expense)

169

(33)

Net cash flow from (used in) financing activities

(8,989)

(11,285)

Net increase/(decrease) of cash & cash equivalents

(1,723)

(4,639)

Cash & Cash equivalents at the beginning of the year

127,573

140,867

Exchange rate differences on cash & cash equivalents

(358)

57

Cash & cash equivalents at end of the period

125,492

136,284

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

Reconciliation to Adjusted EBIT for the three months endedJune 30, for the six months endedJune 30, In 000€

2024

2023

2024

2023

Net profit (loss) for the period

3,875

(494)

7,461

3,221

Income taxes

959

532

1,469

1,249

Financial expenses

1,441

670

2,239

2,045

Financial income

(2,474)

(1,305)

(4,783)

(2,114)

EBIT

3,801

(597)

6,387

4,402

Share-based compensation expense (1)

71

-

142

-

Adjusted EBIT

3,872

(597)

6,529

4,402

  (1) Share-based compensation expense represents the cost of equity-settled payments to employees.

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

Reconciliation to Adjusted EBITDA for the three months endedJune 30, for the six months endedJune 30, In 000€

2024

2023

2024

2023

Net profit (loss) for the period

3,875

(494)

7,461

3,221

Income taxes

959

532

1,469

1,249

Financial expenses

1,441

670

2,239

2,045

Financial income

(2,474)

(1,305)

(4,783)

(2,114)

Depreciation and amortization

5,316

5,353

10,754

10,664

EBITDA

9,117

4,755

17,141

15,066

Share-based compensation expense (1)

71

-

142

-

Adjusted EBITDA

9,188

4,755

17,283

15,066

  (1) Share-based compensation expense represents the cost of equity-settled payments to employees.

Segment P&L (Unaudited)

In 000€ MaterialiseMedical MaterialiseSoftware MaterialiseManufacturing Totalsegments Unallocated(1) Consolidated For the three months ended June 30, 2024 Revenues

28,141

11,226

29,429

68,797

0

68,797

Segment (adj) EBITDA

8,199

1,374

2,416

11,990

(2,802)

9,188

Segment (adj) EBITDA %

29.1%

12.2%

8.2%

17.4%

13.4%

For the three months ended June 30, 2023 Revenues

24,945

11,030

28,835

64,810

0

64,810

Segment (adj) EBITDA

2,683

1,973

2,708

7,364

(2,608)

4,755

Segment (adj) EBITDA %

10.8%

17.9%

9.4%

11.4%

7.3%

  In 000€ MaterialiseMedical MaterialiseSoftware MaterialiseManufacturing Totalsegments Unallocated(1) Consolidated For the six months ended June 30, 2024 Revenues

54,324

21,665

56,445

132,434

0

132,434

Segment (adj) EBITDA

16,120

2,464

3,947

22,531

(5,248)

17,283

Segment (adj) EBITDA %

29.7%

11.4%

7.0%

17.0%

13.1%

For the six months ended June 30, 2023 Revenues

49,265

22,381

59,056

130,702

0

130,702

Segment (adj) EBITDA

10,035

4,409

5,906

20,350

(5,285)

15,066

Segment (adj) EBITDA %

20.4%

19.7%

10.0%

15.6%

11.5%

  (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 endedJune 30, for the six months endedJune 30, In 000€

2024

2023

2024

2023

Net profit (loss) for the period

3,875

(494)

7,461

3,221

Income taxes

959

532

1,469

1,249

Financial cost

1,441

670

2,239

2,045

Financial income

(2,474)

(1,305)

(4,783)

(2,114)

Operating (loss) profit

3,801

(597)

6,387

4,402

Depreciation and amortization

5,316

5,353

10,754

10,664

Corporate research and development

955

737

1,763

1,459

Corporate headquarter costs

2,601

2,576

5,083

5,238

Other operating income (expense)

(682)

(705)

(1,456)

(1,412)

Segment adjusted EBITDA

11,990

7,364

22,531

20,350

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731287016/en/

Investor Relations Harriet Fried LHA 212.838.3777 hfried@lhai.com