Materialise, a leading provider of additive manufacturing software and 3D printing services, reported total revenue increased of 19.7% from the first quarter of 2016 to first quarter 2017, up to €31.9 million, with double-digit increases in all business segments.
“The year is off to an excellent start for Materialise. Amid signs that the overall demand environment for additive manufacturing (“AM”) is strengthening, we delivered double-digit growth in all our business segments and more than doubled Adjusted EBITDA. We are particularly encouraged by the wide range of industries that are tapping into the Materialise backbone in a variety of ways to realize meaningful applications of AM. During the quarter, we pushed ahead with our partnerships to prepare for the launch of Yuniku, the world’s first vision-centric 3D-tailored eyewear, and to integrate functionalities of Materialise Magics into product lifecycle management tools, streamlining the design-to-manufacturing process for the growing universe of products being produced using AM.” Peter Leys, Executive Chairman.
First Quarter 2017 Results
Total revenue for the first quarter of 2017 increased 19.7% to €31.9 million compared to €26.7 million for the first quarter of 2016, with gains in all three of our segments, particularly Materialise Manufacturing. Adjusted EBITDA more than doubled to over €2.8 million as a result of the combination of continued revenue growth (19.7%) and a significantly lower increase in operational expenses (7.4%) as compared to the first quarter in 2016. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) in the first quarter was 8.8% compared to 4.3% in the first quarter of 2016.
Net loss for the first quarter of 2017 was improved to €816,000 compared to net loss of €3.1 million for the same period in 2016. The decrease in the net loss for the first quarter of 2017 was primarily attributable to this variance of €1 million in income tax, as well as an increase in the financial result of €592,000 and the decrease in operating loss by €905,000, which were partially offset by an increase of €221,000 in the share in the loss of a joint venture. Total comprehensive loss for the first quarter of 2017, which includes exchange differences on translation of foreign operations, was €694,000 compared to €4.1 million for the same period in 2016.
Revenue from the Software segment, which offers a proprietary software backbone that enables and enhances the functionality of 3D printers and 3D printing operations worldwide, increased 15.4% to €8.6 million for the first quarter of 2017. Recurrent revenues from annual and renewed licenses and maintenance fees grew 22.3% from the same period in the prior year. Segment EBITDA rose to close to €3 million while the segment EBITDA margin was 34.9% compared to 37.2% in the prior-year period.
Revenue from Materialise’s Medical segment, which offers a unique platform consisting of medical planning and design software, clinical engineering services and patient specific devices, increased 15.4% to €9.9 million. Compared to the same quarter in 2016, revenues from our medical software grew 16.0%, and revenues from our collaborated medical device business and from direct sales of complex surgery solutions each grew 15.0%. Segment EBITDA was €314,000 while the segment EBITDA margin increased to 3.2% from (6.2)% in the first quarter of 2016.
Revenue from the company’s Manufacturing segment, which offers an integrated suite of 3D printing and engineering services to industrial and commercial customers, increased 26.4% to €13.4 million for the first quarter of 2017. End part manufacturing revenues increased 35.0% compared to the first quarter of 2016. Segment EBITDA rose to €1.3 million while the segment EBITDA margin increased to 9.9% from 2.4% for the same quarter in 2016.