Materialise financial results see double digit revenue growth for Q3 2017

Materialise NV (NASDAQ:MTLS) has announced financial results for the third quarter ended September 30, 2017.

Business at the Belgium based additive manufacturing software specialist and 3D printing service company is booming. Highlights from the latest results show that total revenue increased by 12.4% versus the comparative figure from 2016, reaching EUR32.3M ($37.6M).

3D printing bureau revenue strong

Revenue is segmented into 3 divisions at Materialise – Software, Medical and Manufacturing.

The Materialise Software segment revenue increased by 10.4% to EUR8.4M ($9.78M). Medical segment revenue increased 9.3% to EUR10.4M ($12.1M) and the largest division by revenue, Manufacturing, increased by 16.3% to EUR13.5M ($15.7M).

The double-digit performance by the Materialise Manufacturing segment follows recent news at another leading 3D printing bureau – Proto Labs where 3D printing revenue for Q3 2017 was $11.1M.

Materialise executives opening the Wroclaw facility. Photo via Materialise.
Materialise executives opening the Wroclaw facility. Photo via Materialise.

Executive Chairman Peter Leys commented,  “During the third quarter, Materialise invested significantly in our future growth, finishing our new production and office facilities in Poland and Belgium and completing negotiations for the acquisition of ACTech GmbH in Germany, a full-service manufacturer of complex metal parts. The expertise and in-house infrastructure of ACTech GmbH position us to accelerate the development of our existing metal competence center, including our software suite for 3D metal printing. Simultaneously, we continued to execute on other elements of our strategy: we were the first to receive the U.S. green light for our 3D-printed maxillofacial implants that will allow our long-term collaborator DePuy Synthes to bring these products to market in the United States. Meanwhile, our three segments all continued to contribute to our topline growth and generated positive EBITDA.”

Materialise posted a net loss for the third quarter of 2017 of EUR1.4M compared to a net loss of EUR52,000 for the comparative period in 2016.

Materialise consolidated income statement Q3 2017.
Materialise consolidated income statement Q3 2017.

Full year guidance update

Peter Leys also provided updated full year guidance  “For fiscal 2017, we now expect to report consolidated revenue between 140,000 – 143,000 kEUR and Adjusted EBITDA between 13,000 – 14,000 kEUR. Separately, based on year-to-date software sales, we are revising our outlook for deferred revenue from annual licenses and maintenance in 2017 and now expect an increase between 2,000 – 3,000 kEUR as compared to 2016.”

The update is an improvement of previous expectations placed consolidated revenue between 128,000 – 134,000 kEUR.

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Featured image shows Materialise Leuven HQ. Photo by Michael Petch.