Materialise (NASDAQ:MTLS), a provider of additive manufacturing and medical software and of sophisticated 3D printing services reported financial results for the third quarter ended September 30, 2021, showing strong growth on all indicators, including revenues up 28.8% to euro 52.2 million.
Executive Chairman Peter Leys commented, “While the COVID-19 pandemic lingers on in certain parts of the world, record third-quarter results show that Materialise is coming out of this crisis stronger than before: revenue grew by 28% to a quarterly record of 52.2 euro and solid operational performances in all three of segments resulted in a quarterly Adjusted EBITDA record of 9.7 million EUR. We plan to continue to invest to further accelerate growth and look forward to introducing new product upgrades at next month’s Formnext in Frankfurt.”
Materialise Q3 revenues – 2021 results
Total revenue for the third quarter of 2021 increased 28.0% to 52,2 million euros from 40.8 million euros for the third quarter of 2020. Adjusted EBITDA increased 62% to 9.7 million euros from 6.0 million euros in the previous period. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the third quarter of 2021 increased to 18.7% from 14.8% for the third quarter of 2020.
Materialise Q3 revenues the Software segment increased 10.4% to 10.5 million euro for the third quarter of 2021 from 9.5 million euro for the same quarter last year. Segment EBITDA increased 19.1% to 3.7 million euro from 3.1 million euro while the segment EBITDA margin increased to 35.4% compared to 32.9% in the prior-year period.
Revenue from Materialise Medical segment increased 10.2% to 19.0 euro for the third quarter of 2021 compared to 17.2 million euro for the same period in 2020. Segment EBITDA decreased to 5.3 million euro from 5.5 million euro while the segment EBITDA margin was 27.8% compared to 31.9% for the third quarter of 2020.
Materialise Q3 revenues in the Manufacturing segment increased 61.2% to 22.9 million euros from 14.2 million euro for the third quarter of 2020. Segment EBITDA increased to 3.5 euros from a loss of (321) euro while the segment EBITDA margin increased to 15.5% compared to (2.3)% in the third quarter of 2020.
Gross profit was 31.1 million euro, an increase of 33.4% compared to 23.3 million euro for the same period last year, while the gross profit margin increased to 59.5% of total revenue compared to 57.1% for the third quarter of 2020.
Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate, 11.3% to 27.0 euro for the third quarter of 2021 from 24.2 million euro for the third quarter of 2020.
Net other operating income was 355 thousand euro compared to 1.2 million euro for the third quarter of 2020. The operating result increased to 4.5 million euro from 284 euro for the third quarter of 2020. Net financial result was 4.2 million euros compared to (1.3 million) euros for the third quarter of 2020. The third quarter of 2021 contained income tax expenses of (80 thousand) euros, compared to 764 thousand euros in the third quarter of 2020.
As a result of the above, net result for the third quarter of 2021 increased 8.9 million euro to a net profit of 8,652 euro, compared to a net loss of (282) euro for the same period in 2020. Total comprehensive income for the third quarter of 2021, which includes exchange differences on translation of foreign operations, was 8.3 million euro compared to (1.7 million) euro for the 2020 period.
Mr. Leys concluded, “We expect consolidated revenues for 2021 to be towards the higher end of the 197 million euro to 200 million euro range we previously provided. For 2021, we are increasing Adjusted EBITDA guidance from up to 25 million euro to up to 28 million euro.”