Materialise(MTLS)2023-10-26 18:19Financial Data and Key Metrics Changes - Revenue increased by 3.2% to €60.1 million compared to the third quarter of 2022, despite unfavorable market conditions [7][31] - Adjusted EBITDA grew to €7.9 million, representing an increase of almost 55% from €5.1 million last year, with an adjusted EBITDA margin of 13.1% [8][32] - Net profit for the quarter increased to €4 million or €0.07 per share, compared to €1.4 million or €0.02 per share last year [37] Business Line Data and Key Metrics Changes - The manufacturing segment revenue decreased by 4% to €25.1 million, while the software segment remained stable at €10.8 million [7][36] - The medical segment continued its double-digit growth, increasing by 13%, with software revenue growing by 10% and medical device business expanding by 15% [9][36] - Adjusted EBITDA for the medical segment amounted to €7.1 million, resulting in an improved adjusted EBITDA margin of 29.4% [9] Market Data and Key Metrics Changes - The medical segment accounted for 40% of total revenue, while manufacturing and software segments accounted for 42% and 18% respectively [34] - Deferred revenue from software licenses and maintenance fees was €40.1 million, a decrease of €2.7 million compared to the end of 2022, but an increase of €1.7 million compared to September of last year [34] Company Strategy and Development Direction - The company is focused on embracing change while preserving its core mission and values, particularly in the context of 3D printing technology [13][14] - Materialise aims to enhance its digital backbone for additive manufacturing processes, which is crucial for scaling operations [15][16] - The transition in top management is expected to provide continuity and maintain the company's strategic positioning [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenging macroeconomic conditions while maintaining revenue guidance for the full year between €255 million and €260 million [47] - The company anticipates that the medical device industry will recover, which could positively impact growth in software activities [64] Other Important Information - The company reported a strong balance sheet with cash reserves of €134 million and a net cash position of €67.7 million [11] - Capital expenditures for the quarter amounted to €3.9 million, including investments in a new metal printing facility in the U.S. [38] Q&A Session Summary Question: Are there any other markets showing increasing interest in the medical segment? - The software revenue is now approximately 30% nonrecurring, with the recurring part representing about 70% and gradually increasing [25] Question: What trends are being seen in the medical device market? - There is robust demand for personalized instruments and guides, but the medical device industry is cautious in its investments due to the current economic situation [64] Question: Can you provide an update on deferred revenues? - Deferred revenue has decreased in recent quarters due to timing effects, but it is expected to pick up again in the fourth quarter based on historical trends [54][55]