Materialise, one of the largest providers of 3D printing services in the world registered full-year revenues of €170.4 million in 2020, compared to €196.7 million in 2019 2019, a decrease of 15%. The company continues its recovery, which was noted in Q3 2020 but remains shy of its Q4 2019 results. Total revenue in Q4 was €45.3 million, a decrease of 10.7% compared to the fourth quarter of 2019, but an increase of 11.1% compared to the third quarter of 2020.
Executive Chairman Peter Leys contextualized the company’s progress, saying that: “The COVID-19 pandemic made 2020 an incredibly challenging year for economies worldwide, our customers, our business and our employees. For the first time in Materialise’s 30-year history, revenues decreased year over year. While uncertainty remains, we are encouraged by the fact that our fourth-quarter-2020 revenues grew double digits sequentially and that, over the same period, our deferred revenues from software license and maintenance fees grew by 3.4 million EUR. In 2020, we increased our R&D expenses by 7.1% compared to last year, in spite of the COVID-19 related decline of our revenues, and still posted a healthy Adjusted Ebitda of 20.4 million EUR. We closed 2020 with cash and cash equivalents on our balance sheet of over 111 million EUR, a decrease of 17 million EUR compared to year-end 2019, caused mainly by our investments in 2020 in our strategic eyewear-related collaboration with Ditto, Inc and our acquisition of RS Scan to bolster our footwear initiative. In spite of the pandemic headwinds, we believe our continued R&D efforts and strategic investments position us well to expand our existing business and capture new growth opportunities as our company enters its fourth decade and the additive manufacturing market continues to develop.”
On November 9, 2020, Materialise, which already owned 50% of RS Print, the owner of the Phits personalized insole product line, acquired the remaining shares of RS Print and substantially all of the assets of RS Scan, a market leader in the development and supply of intelligent foot measurement technology and systems. The acquisition increased the scope of our Materialise Manufacturing segment and impacted our results of operations for the fourth quarter of 2020 as well as the year ended December 31, 2020, increasing our revenues by €762,000 and decreasing our operating result by €562,000.
Mr. Leys concluded, “Although our fourth-quarter-2020 results and the customer feedback we have been receiving to date in 2021 are encouraging, our outlook is currently not sufficiently mature and is too diverse across our various segments and regions for us to provide quantitative guidance for our consolidated full-year-2021 performance. We do believe we have somewhat more visibility in the shorter term. In the first quarter of 2021, we currently expect both our Software and Medical segments will continue to recover steadily, with the potential of posting revenues that come close to their levels in the pre-pandemic first quarter of 2020. We do not expect our Manufacturing segment to recover to the same extent and at the same pace over that period. As a result, we believe that our consolidated revenues in the first quarter of 2021 will be 5% to 10% lower than our revenues in the same period of 2020. Based on the information we currently have, we believe that in the subsequent quarters of this year, as the COVID-19 crisis subsides, the entire group, including our Manufacturing segment, will perform well and grow sequentially. In line with our strategy we will continue to invest in our R&D programs and internal infrastructure, which will weigh on our overall results in 2021.”