Materialise(US:MTLS)2025-04-24 13:30Financial Data and Key Metrics Changes - Total revenue increased by more than 4% year-over-year to €66.4 million in Q1 2025, while EBIT amounted to €600,000, and the net result was a loss of €500,000 or €0.01 per share [17][18][25] - The net cash position at the end of Q1 was €67.7 million, an increase of almost €7 million compared to the beginning of the quarter [17][27] Business Line Data and Key Metrics Changes - Materialise Medical revenue grew by almost 19%, while Software and Manufacturing segments saw revenue decreases of around 6% each [18][20] - Adjusted EBITDA for Materialise Medical increased to over €9 million with a stable margin of 29%, while Software segment adjusted EBITDA decreased to €600,000 with a margin of 6.1% [21][22] Market Data and Key Metrics Changes - The aerospace segment in Manufacturing saw a sales growth of 23% compared to Q1 2024, while overall Manufacturing revenues decreased by 5.5% year-over-year [16][24] - The total deferred revenue related to software maintenance and license fees increased by €1.9 million, totaling almost €49 million [19] Company Strategy and Development Direction - The company aims to scale additive manufacturing and improve efficiency through advanced software solutions, with a focus on overcoming barriers to adoption [9][13] - Materialise is reassessing its involvement in the defense sector to strengthen its position in aerospace and create new opportunities [16] Management Comments on Operating Environment and Future Outlook - Management expects Q2 2025 to be challenging but anticipates stabilization in the second half of the year, maintaining guidance for consolidated revenue between €270 million and €285 million for the full year [29][30] - The transition to a recurring revenue model in the Software segment is progressing, with over 80% of software revenue now recurring [40][42] Other Important Information - The company published its 2024 sustainability report, aiming to cut absolute emissions by 55% by 2029 compared to the 2019 baseline [7][8] Q&A Session Summary Question: Impact of tariffs on Materialise - Management indicated that the US manufacturing plant mitigates tariff impacts, but raw materials may be affected, and the biggest concern is the potential impact on customers [35][36] Question: Outlook for Q2 - Management expects Q2 to be a difficult quarter, with a flattish top line anticipated, but uncertainty remains high [37][38] Question: Software revenue performance - Software revenue was below €10 million for the first time since the beginning of COVID, but deferred revenue is growing, and over 80% of software revenue is now recurring [39][40][41]