LEUVEN, Belgium — (BUSINESS WIRE) — October 31, 2018 — 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 third quarter ended September 30, 2018.
Highlights – Third Quarter 2018
- Total revenue increased 44.6% from the third quarter of 2017 to 46,732 kEUR, mainly driven by strong performances in our Materialise Medical and Materialise Software segments and in the ACTech business within our Materialise Manufacturing segment.
- Total deferred revenue from annual software sales and maintenance contracts increased by 1,286 kEUR to 20,009 kEUR from 18,723 kEUR at year-end 2017.
- Adjusted EBITDA increased 115.8% from 3,259 kEUR for the third quarter of 2017 to 7,034 kEUR.
- Net result was 2,316 kEUR, or 0.04 EUR per diluted share, compared to (1,413) kEUR, or (0.03) EUR per diluted share, over the same period last year.
Executive Chairman Peter Leys commented, “Following a busy summer, during which we entered into an alliance with BASF and completed both a public offering and a private placement of our equity, raising a total of US $70 million in cash gross proceeds, we are pleased to post yet another set of good results for the third quarter. These results reflect particularly strong performances from our Materialise Medical and Materialise Software segments, and a continuing solid contribution from our ACTech business. We continue to move forward with many innovations to advance the digital manufacturing process and look forward to participating in the Formnext conference in mid-November, where we intend to unveil several innovative products.”
On October 4, 2017, we acquired ACTech, a full-service manufacturer of complex metal parts. As described in more detail below, the acquired business has increased the scope of our Materialise Manufacturing segment’s operations and had a significant impact on our results of operations for the third quarter of 2018, resulting in increases to our revenues, operating expenses and net result.
Third Quarter 2018 Results
Total revenue for the third quarter of 2018 increased 44.6% (9.9% excluding ACTech) to 46,732 kEUR (35,494 kEUR excluding ACTech) compared to 32,307 kEUR for the third quarter of 2017. Total deferred revenue from annual software sales and maintenance contracts amounted to 20,009 kEUR at the end of the third quarter of 2018 compared to 18,723 kEUR at year end 2017. Adjusted EBITDA increased 116% to 7,034 kEUR from 3,259 kEUR due to organic EBITDA increases in all three of our segments and to the contribution by ACTech. Excluding ACTech, Adjusted EBITDA increased 43.6% to 4,679 kEUR. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) in the third quarter of 2018 was 15.1% (13.2% excluding ACTech) compared to 10.1% in the third quarter of 2017.
Revenue from our Materialise Software segment increased 17.2% to 9,874 kEUR for the third quarter of 2018 from 8,422 kEUR for the same quarter last year. Segment EBITDA amounted to 3,384 kEUR compared to 3,362 kEUR in the prior-year period, while the segment EBITDA margin (the segment’s EBITDA divided by the segment’s revenue) was 34.3% compared to 39.9% in the prior-year period.
Revenue from our Materialise Medical segment increased 23.1% to 12,824 kEUR for the third quarter of 2018 compared to 10,421 kEUR for the same period in 2017. Compared to the same quarter in 2017, revenue from our medical software increased 16.6%. Revenue from medical devices and services grew 26.7%. Segment EBITDA was 2,475 kEUR compared to 1,170 kEUR while the segment EBITDA margin increased to 19.3% from 11.2% in the third quarter of 2017.
Revenue from our Materialise Manufacturing segment increased 78.4% to 24,012 kEUR for the third quarter of 2018 from 13,456 kEUR for the third quarter of 2017. Segment EBITDA increased to 3,405 kEUR from 499 kEUR while the segment EBITDA margin increased to 14.2% from 3.7% for the same quarter in 2017. Excluding ACTech, revenue decreased 5.0% to 12,778 kEUR, segment EBITDA increased 110.2% to 1,049 kEUR and the segment EBITDA margin increased to 8.2% from 3.7%.
Gross profit was 26,418 kEUR, or 56.5% of total revenue, for the third quarter of 2018. Excluding ACTech, gross profit was 22,379 kEUR, or 63.1% of total revenue, compared to 17,873 kEUR, or 55.3% of total revenue, for the third quarter of 2017.
Research and development (“R&D”), sales and marketing (“S&M”) and
general and administrative (“G&A”) expenses increased, in the aggregate,
26.4% to 24,665 kEUR for the third quarter of 2018 from 19,509 kEUR for
the third quarter of 2017. Excluding ACTech, operating expenses
increased, in the aggregate, 15.3% to 22,500 kEUR. Excluding ACTech, R&D
expenses increased from 4,701 kEUR to 5,640 kEUR while S&M expenses
increased from 8,753 kEUR to 10,387 kEUR and G&A expenses increased from
6,055 kEUR to 6,473 kEUR.