Materialise(US:MTLS)2021-07-29 18:42Financial Data and Key Metrics Changes - Revenues grew 33% to EUR 50.7 million compared to the same period last year, with adjusted EBITDA more than doubling to EUR 6.9 million [9][27] - Compared to Q1 2021, revenues increased by 11.3% and adjusted EBITDA rose by 13% [11] - Compared to Q2 2019, revenues grew by 5% and adjusted EBITDA increased by 37% [12] Business Line Data and Key Metrics Changes - Software segment revenue increased by 5% to EUR 10 million, with a 24% increase in recurrent sales [32] - Medical segment revenue surged over 50% to EUR 17.5 million, with a 21% growth compared to Q2 2019 [34] - Manufacturing segment revenue increased by 39% to EUR 23.3 million, recovering 22% from Q1 2021 [36] Market Data and Key Metrics Changes - The Medical segment accounted for 34% of total revenue, while Manufacturing represented 46% [29] - Deferred revenues from software licenses and maintenance fees increased by EUR 1.7 million compared to the end of last year [28] Company Strategy and Development Direction - The company plans to use newly raised funds to accelerate growth drivers, including the rollout of Magics and Mimics software platforms and expansion in CMF markets [13][14] - The focus remains on 3D printing applications, with no intention to significantly broaden into CNC machining or other conventional manufacturing technologies [64] Management's Comments on Operating Environment and Future Outlook - Management sees a positive but fragile global trend of businesses recovering from the pandemic, expecting revenues for 2021 to exceed 2019 levels, potentially reaching close to EUR 200 million [47][48] - The majority of revenues in the second half of the year are expected to come from a strong fourth quarter [48] Other Important Information - The company moved into a new Metal 3D Printing center in Bremen, Germany, with an official opening planned for October 7th [23] - Cash amounted to EUR 182.8 million at the end of Q2 2021, up from EUR 111.5 million at the end of the previous year [43] Q&A Session Summary Question: How did the recovery in end markets develop through the quarter? - Management noted a positive trend throughout the quarter, with continuous increases in sales in Medical and Software, while the Automotive market remains unstable due to supply chain issues [53] Question: Can the Manufacturing segment exceed 2019 levels? - Management expects Manufacturing to recover but does not anticipate the same revenue mix as in 2019, with Software and Medical becoming more significant parts of overall revenues [55] Question: Thoughts on digital manufacturing and competition? - The company remains focused on 3D printing applications and does not plan to expand significantly into CNC machining or other conventional manufacturing technologies [64] Question: Concerns about new entrants in software competition? - Management respects competition but believes new players face significant hurdles and that the company has a solid base to withstand competitive pressures [67] Question: Expectations for Q3? - Management indicated that Q3 is typically slower, with more growth expected in Q4, aligning with traditional seasonal patterns [69]