Materialise(US:MTLS)2022-07-28 18:06Financial Data and Key Metrics Changes - In Q2 2022, Materialise NV recorded revenues of €58.1 million, representing a growth of almost 15% compared to the same period last year [11][28] - Adjusted EBITDA for the quarter amounted to €4.2 million, down from €6.9 million in the previous year, impacted by investments in CO-AM solutions and inflation-related higher expenses [11][29] - Net profit for the quarter was €896,000 or €0.02 per share, compared to net profits of €3.4 million in the previous year [37] Business Line Data and Key Metrics Changes - Software segment revenue increased by 6% to €10.6 million, driven by renewed licenses and usage from deferred revenue [28][30] - Medical segment revenue grew by 19%, with software sales increasing by 52% [28][33] - Manufacturing segment revenue grew by 14.2% to €26.6 million, driven by core manufacturing business lines [28][34] Market Data and Key Metrics Changes - The manufacturing business exceeded Q2 2019 levels by more than 10%, indicating a recovery and growth beyond pre-COVID levels [14] - The industrial goods and medical device projects in contract manufacturing grew by 25%, while automotive projects remained stable at low levels [15][16] Company Strategy and Development Direction - The company is focusing on new vertical opportunities in its manufacturing business, particularly in the ACTech segment, which has shifted its focus to electric vehicle components [12][17] - Materialise plans to invest €23 million to double ACTech's capacity, supporting sustainability through additive manufacturing [25] - The company aims to maintain growth in its medical segment and expand into new business lines like eyewear and motion [63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that full-year 2022 revenues will be at least 10% higher than the previous year, despite challenges from inflation and talent acquisition costs [39] - The company anticipates consolidated EBITDA for the full year 2022 to be in the range of €20 million to €25 million [40] Other Important Information - Deferred revenue for maintenance and license fees increased by €3.8 million compared to the end of last year, driven by strong sales performance in the medical segments [11][28] - Operating expenses increased by 25.1% to €33.6 million, reflecting significant investments in R&D, sales, and marketing [36] Q&A Session Summary Question: Timing of the €23 million investment in ACTech - Management indicated that the first portion of the investment will be for the acquisition of the building, estimated at €6 million to €7 million, with further investments planned for 2023 and 2024 [43][45] Question: Order intake and performance in the Manufacturing segment - Management confirmed that order intake and invoicing were in equilibrium, indicating solid order intake [47] Question: Impact of inflation and talent acquisition on profitability - Management noted that increased remuneration costs due to the war for talent significantly impacted EBITDA, along with rising material and electricity costs [55][56] Question: Long-term margin potential with new business developments - Management expressed optimism about the CO-AM platform and its potential for margin generation, expecting a return to higher margins towards the end of next year [60][61]