In This Article:
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Revenue: EUR68.7 million, up 14% year-over-year.
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Gross Margin: 57.2%, up from 56% in Q3 2023.
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Adjusted EBIT: EUR4.4 million, representing 6.4% of revenue.
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Net Profit: EUR3 million or EUR0.05 per share.
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Net Cash Position: EUR63.1 million at the end of Q3.
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Medical Segment Revenue: Grew by more than 24%, accounting for 44% of total revenue.
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Software Segment Revenue: Increased by 3%.
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Manufacturing Segment Revenue: Grew by 9%.
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Adjusted EBITDA: EUR9.9 million, with a margin of 14.4%.
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Deferred Revenue: EUR47.4 million, with EUR41.1 million related to software licenses and maintenance fees.
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Free Cash Flow: Negative EUR3.1 million for Q3 2024.
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Full Year Revenue Guidance: EUR265 million to EUR275 million.
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Full Year Adjusted EBIT Guidance: EUR11 million to EUR14 million.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Materialise NV (NASDAQ:MTLS) reported strong quarterly revenues of EUR68.7 million, marking a growth of over 14% compared to the same quarter last year.
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The Medical segment emerged as the strongest revenue generator, accounting for 44% of total revenue, with a growth of more than 24%.
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The company achieved a gross margin of 57.2%, an improvement from 56% in the previous year.
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Materialise NV (NASDAQ:MTLS) has made significant progress in its strategic priorities, particularly in the Medical and Software segments, with new partnerships and product developments.
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The company maintains a strong net cash position of EUR63.1 million, indicating financial stability and capacity for future investments.
Negative Points
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The Manufacturing segment continues to face a challenging market environment, particularly with weak prototyping demand, resulting in lower profitability.
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Despite revenue growth, the Manufacturing segment's adjusted EBITDA margin was only 2.6%, highlighting profitability challenges.
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The transition to a cloud and subscription-based business model in the Software segment has impacted nonrecurring revenue, which decreased by 12%.
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Operational startup of the new ACTech plant is expected to temporarily impact revenue in the fourth quarter.
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The company remains conservative in its outlook for the fourth quarter due to weaker prototyping demand and integration costs from recent acquisitions.
Q & A Highlights
Q: Can you discuss the sustainability of growth and profitability in the Medical segment, and what EBITDA margins might look like if growth continues at the current pace? A: Brigitte de Vet-Veithen, CEO: The Medical segment still has significant potential for adopting personalized solutions, such as those for trauma patients. We are only scratching the surface of this market. As we scale, managing margins typically becomes easier, so we expect the profitability profile to remain strong.