Belgian software and 3D printing service provider Materialise (MTLS) has revealed that its revenue rose by 16% in Q1 2022.
As reported in its latest financials, Materialise generated €53 million for Q1 2022, 16% more than the €45.6 million it brought in during Q1 2021. On the firm’s earnings call, its CFO Johan Albrecht explained that while each of its core segments enjoyed growth during the quarter, this was particularly the case with its Manufacturing division, which finally managed to return to pre-COVID revenue levels.
“After posting record numbers for 2021, all our segments grew during the first quarter of 2022, with an aggregate revenue increase of 16% on a consolidated basis,” added Materialise’s Executive Chairman, Peter Leys. “We are particularly pleased that our deferred revenue from annual software sales and maintenance fees increased significantly, underscoring the solid recurring sales performance of our Materialise Software and Materialise Medical segments.”
“While the global economy was negatively impacted by a combination of geopolitical instability and the COVID-19 pandemic, Materialise continued to perform well.”
Materialise’s Q1 2022 financials
As usual, Materialise’s Manufacturing business was its highest earner during Q1 2022, but its lead over the firm’s other segments grew significantly during the period. Over the quarter, the company’s Manufacturing arm brought in €24.1 million, which was flat against the pre-COVID Q1 2019, but a 26% rise from the €19.1 million it generated in Q1 2021.
Medical was Materialise’s next-fastest growing division in Q1 2022, attracting €18.3 million in revenue, 13% more than it reported in Q1 2021. This growth was boosted by a 12% increase in the revenue generated from medical devices by its sales partners, and the firm’s CEO Fried Vancraen remarked on its earnings call, that medical instrumentation “continues to be an important market” for its products.
Lastly, Materialise’s Software segment reported revenue growth as well, albeit at a much slower pace, as it brought in €10.5 million, 3% more than the €10.2 million it managed to attract during Q1 2021. This figure, which now includes any income generated by Link3D, Materialise’s high-profile software acquisition last year, was also driven by a 10% rise in the recurring revenue of its existing products.
|Revenue (€)||Q1 2021||Q1 2022||Difference (%)||Q1 2019||Q1 2022||Difference (%)|
Fostering growth in Q1 and beyond
Much of the news that came from Materialise in Q1 2022 was focused on driving future growth, as it announced a series of initiatives that’ll see its technologies applied in new, potentially-lucrative ways. One such project saw the company work with Sigma Labs to come up with a real-time metal 3D printing error correction platform, which offers potential workflow consistency and scalability benefits.
The firm also landed a ‘historic deal’ with Proponent, that will see the pair seek out novel aerospace 3D printing applications, as well as adding Forward AM’s Ultrasint PA11 to its portfolio, in a move that could help improve eyewear sustainability.
In terms of Materialise’s future plans, Vancraen revealed on its earnings call that it intends to go ahead with the full launch of Magics 26, despite the war in Ukraine where much of its development team is based. Through the incorporation of Siemens’ Parasolid kernel, the firm’s CEO said that the software will open a “range of new opportunities” to users, which “further enhance their productivity.”
Vancraen also announced that Materialise plans to launch its ‘co-am’ platform at the RAPID+TCT trade show. Designed to capture, store and automate the knowledge of process planners and operators, the software enables users to utilize this data to optimize the performance of their 3D printing workflows. The platform is set to be an ‘open system’ as well, with external partners due to be unveiled at RAPID+TCT.
“Central in the co-am platform is the ‘data lake’ that structures the information and secures access by the right stakeholders,” explained Vancraen. “It is a customer-owned platform that provides an environment where skilled operators can be supported by a variety of collaborating software tools which increase their efficiency.”
Accounting for an ‘uncertain future’
In his closing remarks, Leys said that while he was “encouraged by its good results” in Q1 2022, Materialise remains wary “that the future is less certain” than it was at the end of FY 2021. Citing the “continuing lockdowns” seen in China, “Russia’s aggressive invasion in Ukraine” and supply chain disruption, the firm’s Executive Chairman conceded that its “operations may be impacted” in future.
However, even though Leys didn’t provide an updated outlook on the call, he did say that Materialise “maintains its full-year guidance,” which was set at revenue growth of “at least 10%” last quarter. At €169.6 million, the company’s balance also remains strong, even if this figure did fall from the €196 million reported at the end of Q4 2021, due to its exercising of an option to buy 100% of Link3D’s shares.
“It is possible that over the course of 2022, our operations and results will be more impacted by the circumstances than what has been the case until today,” concluded Leys. “We will continue to monitor and manage this delicate and unfortunately, unstable situation as closely as we can, and intend to continue to evaluate and update our outlook during our next quarterly call.”
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Featured image shows Materialise’s Metal Competence Center in Bremen, Germany. Photo via Materialise.