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Materialise Reports Fourth Quarter and Full Year 2022 Results
LEUVEN,
Highlights – Fourth Quarter 2022
- Total revenue increased 10% to 62,703 kEUR for the fourth quarter of 2022 from 56,989 kEUR for the 2021 period.
- Adjusted EBITDA amounted to 4,258 kEUR for the fourth quarter of 2022 compared to 10,490 kEUR for the 2021 period.
-
Net loss for the fourth quarter of 2022 was (4,588) kEUR, or
(0.08) EUR per diluted share, compared to a profit of 4,762 kEUR, or0.08 EUR per diluted share, for the 2021 period.
Highlights – Full Year 2022
- Total revenue increased 13% to 232,023 kEUR for 2022 from 205,450 kEUR for 2021.
-
Total deferred revenues from annual software sales and maintenance fees increased 7,635 kEUR to 42,780 kEUR compared to
December 31, 2021 . - Adjusted EBITDA was 19,014 kEUR for 2022 compared to 32,490 kEUR for 2021.
-
Net loss for 2022 was (2,153) kEUR, or
(0.04) EUR per diluted share, compared to a profit of 13,145 kEUR, or0.23 EUR per diluted share, for 2021. - Total cash was 140,867 kEUR at the end of 2022.
Executive Chairman
Fourth Quarter 2022 Results
Total revenue for the fourth quarter of 2022 increased 10.0% to 62,703 kEUR from 56,989 kEUR for the fourth quarter of 2021. Adjusted EBITDA amounted to 4,258 kEUR, compared to 10,490 kEUR for the same period in 2021. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the fourth quarter of 2022 was 6.8%, compared to 18.4% for the fourth quarter of 2021.
Revenue from our
Revenue from our Materialise Medical segment increased 17.3% to 24,254 kEUR for the fourth quarter of 2022, compared to 20,682 kEUR for the same period in 2021. Adjusted EBITDA for the segment was 6,355 kEUR compared to 6,358 kEUR, while the Adjusted EBITDA margin for the segment was 26.2% compared to 30.7%.
Revenue from our Materialise Manufacturing segment increased 10.9% to 26,750 kEUR from 24,124 kEUR for the fourth quarter of 2021. Adjusted EBITDA for the segment increased to 1,506 kEUR compared 990 kEUR, while the Adjusted EBITDA margin for the segment was 5.6%, compared to 4.1% for the prior-year period.
Gross profit increased 7.5% to 35,681 kEUR for the fourth quarter of 2022 from 33,198 kEUR for the same period last year. Gross profit as a percentage of revenue was 56.9%, compared to 58.3%.
Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate, 28.3% to 37,829 kEUR for the fourth quarter of 2022 from 29,481 kEUR for the fourth quarter of 2021.
Net other operating result was 593 kEUR compared to 1,260 kEUR for the fourth quarter of 2021.
Operating result was (1,554) kEUR, compared to 4,976 kEUR for the fourth quarter of 2021.
Net financial result for the fourth quarter of 2022 was (3,436) kEUR, compared to 275 kEUR for the fourth quarter of 2021, mainly as a result of currency exchange losses.
The fourth quarter of 2022 contained net income tax income of 402 kEUR, compared to net tax expense of (490) kEUR for the fourth quarter of 2021.
As a result of the above, net loss for the fourth quarter of 2022 was (4,588) kEUR, compared to a net profit of 4,762 kEUR for the same period in 2021. Total comprehensive income for the fourth quarter of 2022 was (7,623) kEUR, compared to a profit of 1,832 kEUR for the 2021 period.
Full Year 2022 Results
Total revenues for the year ended
Revenues from our
Revenues from our Materialise Medical segment grew by 15.6% for the year ended
Revenues from our Materialise Manufacturing segment increased 16.0% to 103,489 kEUR for the year ended
Operating profit amounted to (2,872) kEUR for the year ended
Net financial income amounted to 1,694 kEUR, compared to net financial income of 1,519 kEUR for the year ended
At
Cash flow from operating activities for the year ended
Net shareholders’ equity at
2023 Guidance
“Assuming that inflation stabilizes in 2023, we expect our continued revenue growth to gradually result in a stronger Adjusted EBITDA, which we currently anticipate to total between 25,000 and 30,000 kEUR for 2023. We expect our three segments to contribute to our Adjusted EBITDA in line with their contributions to our revenue growth.
“At the same time, we want to note that the developments in
Non-IFRS Measures
Materialise uses EBITDA and Adjusted EBITDA as supplemental financial measures of its financial performance. EBITDA is calculated as net profit(loss) plus income taxes, financial expenses (less financial income), shares of profit or loss in a joint venture and depreciation and amortization. Adjusted EBITDA is determined by adding share-based compensation expenses, acquisition-related expenses of business combinations, impairments and revaluation of fair value due to business combinations to EBITDA. Management believes these non-IFRS measures to be important measures as they exclude the effects of items which primarily reflect the impact of long-term investment and financing decisions, rather than the performance of the company’s day-to-day operations. As compared to net profit(loss), these measures are limited in that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the company’s business, or the charges associated with impairments. Management evaluates such items through other financial measures such as capital expenditures and cash flow provided by operating activities. The company believes that these measurements are useful to measure a company’s ability to grow or as a valuation measurement. The company’s calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. EBITDA and Adjusted EBITDA should not be considered as alternatives to net profit(loss) or any other performance measure derived in accordance with IFRS. The company’s presentation of EBITDA and Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or non-recurring items.
Exchange Rate
This document contains translations of certain euro amounts into
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the fourth quarter of 2022 and other matters on
The conference call will also be broadcast live over the internet with an accompanying slide presentation, which can be accessed on the company’s website at http://investors.materialise.com. A webcast of the conference call will be archived on the company's website for one year.
About Materialise
Materialise incorporates 30 years of 3D printing experience into a range of software solutions and 3D printing services, which form the backbone of the 3D printing industry. Materialise’s open and flexible solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build innovative 3D printing applications that aim to make the world a better and healthier place. Headquartered in
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations, plans, objectives, strategies and prospects, both financial and business, including statements concerning, among other things, our current estimates for fiscal 2023 revenue and Adjusted EBITDA, results of operations, cash needs, capital expenditures, expenses, financial condition, liquidity, prospects, growth and strategies (including how our business, results of operations and financial condition could be impacted by the ongoing military conflict between
The Company is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.
Consolidated income statements (Unaudited)
| for the three months ended |
for the twelve months ended |
||||||||||||||
| In '000 |
2022 |
2022 |
2021 |
2022 |
2021 |
||||||||||
| U.S.$ | € | € | € | € | |||||||||||
| Revenue |
66,879 |
|
62,703 |
|
56,989 |
|
232,023 |
|
205,450 |
|
|||||
| Cost of Sales |
(28,822 |
) |
(27,022 |
) |
(23,791 |
) |
(103,258 |
) |
(87,278 |
) |
|||||
| Gross Profit |
38,058 |
|
35,681 |
|
33,198 |
|
128,765 |
|
118,172 |
|
|||||
| Gross profit as % of revenue |
56.9 |
% |
56.9 |
% |
58.3 |
% |
55.5 |
% |
57.5 |
% |
|||||
| Research and development expenses |
(12,259 |
) |
(11,494 |
) |
(6,896 |
) |
(37,568 |
) |
(26,891 |
) |
|||||
| Sales and marketing expenses |
(18,435 |
) |
(17,284 |
) |
(13,421 |
) |
(62,125 |
) |
(49,151 |
) |
|||||
| General and administrative expenses |
(9,654 |
) |
(9,051 |
) |
(9,165 |
) |
(35,140 |
) |
(33,315 |
) |
|||||
| Net other operating income (expenses) |
633 |
|
593 |
|
1,260 |
|
3,196 |
|
3,402 |
|
|||||
| Operating (loss) profit |
(1,657 |
) |
(1,554 |
) |
4,976 |
|
(2,872 |
) |
12,217 |
|
|||||
| Financial expenses |
(4,497 |
) |
(4,216 |
) |
(919 |
) |
(4,420 |
) |
(4,101 |
) |
|||||
| Financial income |
832 |
|
780 |
|
1,195 |
|
6,114 |
|
5,620 |
|
|||||
| Share in loss of joint venture |
- |
|
- |
|
- |
|
- |
|
- |
|
|||||
| (Loss) profit before taxes |
(5,322 |
) |
(4,990 |
) |
5,252 |
|
(1,178 |
) |
13,736 |
|
|||||
| Income Taxes |
429 |
|
402 |
|
(490 |
) |
(975 |
) |
(591 |
) |
|||||
| Net (loss) profit for the period |
(4,893 |
) |
(4,588 |
) |
4,762 |
|
(2,153 |
) |
13,145 |
|
|||||
| Net (loss) profit attributable to: |
- |
|
|||||||||||||
| The owners of the parent |
(4,885 |
) |
(4,580 |
) |
4,769 |
|
(2,123 |
) |
13,154 |
|
|||||
| Non-controlling interest |
(9 |
) |
(8 |
) |
(7 |
) |
(29 |
) |
(9 |
) |
|||||
| Earning per share attributable to owners of the parent | |||||||||||||||
| Basic |
(0.08 |
) |
(0.08 |
) |
0.08 |
|
(0.04 |
) |
0.23 |
|
|||||
| Diluted |
(0.08 |
) |
(0.08 |
) |
0.08 |
|
(0.04 |
) |
0.23 |
|
|||||
| Weighted average basic shares outstanding |
59,064 |
|
59,064 |
|
58,892 |
|
59,064 |
|
56,685 |
|
|||||
| Weighted average diluted shares outstanding |
59,064 |
|
59,064 |
|
59,025 |
|
59,064 |
|
56,843 |
|
|||||
Consolidated statements of comprehensive income (Unaudited)
| for the three months ended |
for the twelve months ended |
||||||||||||||
| In 000€ |
2022 |
2022 |
2021 |
2022 |
2021 |
||||||||||
| U.S.$ | € | € | € | € | |||||||||||
| Net profit (loss) for the period |
(4,893 |
) |
(4,588 |
) |
4,762 |
|
(2,153 |
) |
13,145 |
|
|||||
| Other comprehensive income | |||||||||||||||
| Recycling | |||||||||||||||
| Exchange difference on translation of foreign operations |
(3,139 |
) |
(2,943 |
) |
561 |
|
(1,427 |
) |
1,565 |
|
|||||
| Non-recycling | |||||||||||||||
| Fair value adjustments through OCI - Equity instruments |
(99 |
) |
(92 |
) |
(3,491 |
) |
(92 |
) |
(3,443 |
) |
|||||
| Other comprehensive income (loss), net of taxes |
(3,237 |
) |
(3,035 |
) |
(2,930 |
) |
(1,519 |
) |
(1,878 |
) |
|||||
| Total comprehensive income (loss) for the year, net of taxes |
(8,131 |
) |
(7,623 |
) |
1,832 |
|
(3,672 |
) |
11,267 |
|
|||||
| Total comprehensive income (loss) attributable to: | |||||||||||||||
| The owners of the parent |
(8,123 |
) |
(7,616 |
) |
1,839 |
|
(3,643 |
) |
11,276 |
|
|||||
| Non-controlling interests |
(7 |
) |
(7 |
) |
(7 |
) |
(28 |
) |
(9 |
) |
|||||
Consolidated statement of financial position (Unaudited)
| As of |
As of |
|||
| In 000€ |
2022 |
2021 |
||
| Assets | ||||
| Non-current assets | ||||
|
44,155 |
18,726 |
|||
| Intangible assets |
37,875 |
31,668 |
||
| Property, plant & equipment |
94,276 |
84,451 |
||
| Right-of-Use assets |
8,420 |
9,054 |
||
| Investments in joint ventures |
- |
- |
||
| Deferred tax assets |
1,186 |
227 |
||
| Investments in convertible loans |
3,494 |
3,560 |
||
| Investments in non-listed equity instruments |
307 |
399 |
||
| Other non-current assets |
5,135 |
7,519 |
||
| Total non-current assets |
194,847 |
155,604 |
||
| Current assets | ||||
| Inventories |
16,081 |
11,295 |
||
| Trade receivables |
51,043 |
41,541 |
||
| Other current assets |
8,424 |
8,940 |
||
| Cash and cash equivalents |
140,867 |
196,028 |
||
| Total current assets |
216,414 |
257,804 |
||
| Total assets |
411,262 |
413,408 |
||
| As of |
As of |
|||||
| In 000€ |
2022 |
2021 |
||||
| Equity and liabilities | ||||||
| Equity | ||||||
| Share capital |
4,487 |
|
4,489 |
|
||
| Share premium |
233,895 |
|
233,872 |
|
||
| Retained earnings and other reserves |
(9,427 |
) |
(5,784 |
) |
||
| Equity attributable to the owners of the parent |
228,955 |
|
232,577 |
|
||
| Non-controlling interest |
(27 |
) |
1 |
|
||
| Total equity |
228,928 |
|
232,578 |
|
||
| Non-current liabilities | ||||||
| Loans & borrowings |
55,873 |
|
72,637 |
|
||
| Lease liabilities |
5,147 |
|
5,268 |
|
||
| Deferred tax liabilities |
4,312 |
|
4,371 |
|
||
| Deferred income |
9,277 |
|
4,952 |
|
||
| Other non-current liabilities |
1,611 |
|
2,167 |
|
||
| Total non-current liabilities |
76,220 |
|
89,395 |
|
||
| Current liabilities | ||||||
| Loans & borrowings |
17,058 |
|
17,849 |
|
||
| Lease liabilities |
2,902 |
|
3,353 |
|
||
| Trade payables |
25,629 |
|
20,171 |
|
||
| Tax payables |
1,246 |
|
783 |
|
||
| Deferred income |
41,722 |
|
33,307 |
|
||
| Other current liabilities |
17,558 |
|
15,972 |
|
||
| Total current liabilities |
106,115 |
|
91,435 |
|
||
| Total equity and liabilities |
411,262 |
|
413,408 |
|
||
Consolidated statement of cash flows (Unaudited)
| for the twelve months ended |
||||||
| In 000€ |
2022 |
2021 |
||||
| Operating activities | ||||||
| Net (loss) profit for the period |
(2,153 |
) |
13,145 |
|
||
| Non-cash and operational adjustments | ||||||
| Depreciation of property plant & equipment |
14,940 |
|
15,574 |
|
||
| Amortization of intangible assets |
7,628 |
|
4,975 |
|
||
| Impairment of goodwill and intangible assets |
- |
|
177 |
|
||
| Share-based payment expense |
(140 |
) |
(1,036 |
) |
||
| Loss (gain) on disposal of intangible assets and property, plant & equipment |
347 |
|
210 |
|
||
| Movement in provisions |
1,781 |
|
99 |
|
||
| Movement reserve for bad debt and slow moving inventory |
(23 |
) |
255 |
|
||
| Financial income |
(7,405 |
) |
(5,620 |
) |
||
| Financial expense |
5,705 |
|
4,101 |
|
||
| Impact of foreign currencies |
(19 |
) |
40 |
|
||
| (Deferred) income taxes |
960 |
|
591 |
|
||
| Working capital adjustments |
3,445 |
|
(5,890 |
) |
||
| Decrease (increase) in trade receivables and other receivables |
(6,245 |
) |
(10,920 |
) |
||
| Decrease (increase) in inventories and contracts in progress |
(5,011 |
) |
(1,423 |
) |
||
| Increase (decrease) in deferred revenue |
10,252 |
|
2,898 |
|
||
| Increase (decrease) in trade payables and other payables |
4,449 |
|
3,555 |
|
||
| Income tax paid & Interest received |
(358 |
) |
(776 |
) |
||
| Net cash flow from operating activities |
24,709 |
|
25,845 |
|
||
| for the twelve months ended |
||||||
| In 000€ |
2022 |
2021 |
||||
| Investing activities | ||||||
| Purchase of property, plant & equipment |
(21,608 |
) |
(7,934 |
) |
||
| Purchase of intangible assets |
(3,165 |
) |
(3,788 |
) |
||
| Proceeds from the sale of property, plant & equipment & intangible assets (net) |
205 |
|
462 |
|
||
| Acquisition of subsidiary (net of cash) |
(29,355 |
) |
(875 |
) |
||
| (Convertible) Loans granted |
- |
|
- |
|
||
| Investment in subsidiary, net of cash acquired |
- |
|
(999 |
) |
||
| Net cash flow used in investing activities |
(53,923 |
) |
(13,134 |
) |
||
| Financing activities | ||||||
| Repayment of loans & borrowings |
(20,044 |
) |
(14,277 |
) |
||
| Repayment of leases |
(3,379 |
) |
(3,775 |
) |
||
| Capital increase |
- |
|
88,117 |
|
||
| Interest paid |
(1,990 |
) |
(2,326 |
) |
||
| Other financial income (expense) |
544 |
|
3,417 |
|
||
| Net cash flow from (used in) financing activities |
(24,869 |
) |
71,156 |
|
||
| Net increase/(decrease) of cash & cash equivalents |
(54,082 |
) |
83,867 |
|
||
| Cash & Cash equivalents at the beginning of the year |
196,028 |
|
111,538 |
|
||
| Exchange rate differences on cash & cash equivalents |
(1,078 |
) |
624 |
|
||
| Cash & cash equivalents at end of the period |
140,867 |
|
196,028 |
|
||
Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)
| for the three months ended |
for the twelve months ended |
|||||||||||
| In 000€ |
2022 |
2021 |
2022 |
2021 |
||||||||
| Net profit (loss) for the period |
(4,588 |
) |
4,762 |
|
(2,153 |
) |
13,145 |
|
||||
| Income taxes |
(402 |
) |
490 |
|
975 |
|
591 |
|
||||
| Financial expenses |
4,216 |
|
919 |
|
4,420 |
|
4,101 |
|
||||
| Financial income |
(780 |
) |
(1,195 |
) |
(6,114 |
) |
(5,620 |
) |
||||
| Depreciation and amortization |
5,832 |
|
5,277 |
|
22,026 |
|
20,516 |
|
||||
| Share in loss of joint venture |
- |
|
- |
|
- |
|
- |
|
||||
| EBITDA |
4,278 |
|
10,253 |
|
19,154 |
|
32,733 |
|
||||
| Share-based compensation expense (1) |
(20 |
) |
44 |
|
(140 |
) |
(833 |
) |
||||
| Revaluation of fair value due to business combinations |
- |
|
8 |
|
- |
|
- |
|
||||
| Impairments (2) |
- |
|
177 |
|
- |
|
177 |
|
||||
| Acquisition-related expenses of business combinations (3) |
- |
|
8 |
|
- |
|
413 |
|
||||
| Adjusted EBITDA |
4,258 |
|
10,490 |
|
19,014 |
|
32,490 |
|
||||
| (1) Share-based compensation expense represents the cost of equity-settled and share-based payments to employees. | ||
| (2) Impairments represent the impairment of capitalized expenditures related to the goodwill of metal company |
||
| (3) Acquisition-related expenses of business combinations represent expenses incurred in connection with the acquisition of our option to buy Link3D. | ||
Segment P&L (Unaudited)
| In 000€ | Materialise Software |
Materialise Medical |
Materialise Manufacturing |
Total segments |
Unallocated (1) | Consolidated | ||||||||||||
| For the three months ended |
||||||||||||||||||
| Revenues |
11,699 |
|
24,254 |
|
26,750 |
|
62,703 |
|
0 |
|
62,703 |
|
||||||
| Segment (adj) EBITDA |
(1,441 |
) |
6,355 |
|
1,506 |
|
6,421 |
|
(2,163 |
) |
4,258 |
|
||||||
| Segment (adj) EBITDA % |
-12.3 |
% |
26.2 |
% |
5.6 |
% |
10.2 |
% |
6.8 |
% |
||||||||
| For the three months ended |
||||||||||||||||||
| Revenues |
12,183 |
|
20,682 |
|
24,124 |
|
56,989 |
|
(0 |
) |
56,989 |
|
||||||
| Segment (adj) EBITDA |
5,518 |
|
6,358 |
|
990 |
|
12,866 |
|
(2,376 |
) |
10,490 |
|
||||||
| Segment (adj) EBITDA % |
45.3 |
% |
30.7 |
% |
4.1 |
% |
22.6 |
% |
18.4 |
% |
||||||||
| In 000€ | Materialise Software |
Materialise Medical |
Materialise Manufacturing |
Total segments |
Unallocated (1) |
Consolidated | ||||||||||||
| For the twelve months ended |
||||||||||||||||||
| Revenues |
43,688 |
|
84,846 |
|
103,489 |
|
232,023 |
|
0 |
|
232,023 |
|
||||||
| Segment (adj) EBITDA |
1,514 |
|
18,822 |
|
8,229 |
|
28,565 |
|
(9,551 |
) |
19,014 |
|
||||||
| Segment (adj) EBITDA % |
3.5 |
% |
22.2 |
% |
8.0 |
% |
12.3 |
% |
8.2 |
% |
||||||||
| For the twelve months ended |
||||||||||||||||||
| Revenues |
42,902 |
|
73,368 |
|
89,180 |
|
205,450 |
|
0 |
|
205,450 |
|
||||||
| Segment (adj) EBITDA |
15,705 |
|
20,669 |
|
6,275 |
|
42,648 |
|
(10,158 |
) |
32,490 |
|
||||||
| Segment (adj) EBITDA % |
36.6 |
% |
28.2 |
% |
7.0 |
% |
20.8 |
% |
15.8 |
% |
||||||||
| (1) Unallocated segment adjusted EBITDA consists of corporate research and development and corporate other operating income (expense), and the added share-based compensation expenses, acquisition related expenses of business combinations, impairments and fair value of business combinations that are included in Adjusted EBITDA. |
Reconciliation of Net Profit (Loss) to Segment adjusted EBITDA (Unaudited)
| for the three months ended |
for the twelve months ended |
|||||||||||
| In 000€ |
2022 |
2021 |
2022 |
2021 |
||||||||
| Net profit (loss) for the period |
(4,588 |
) |
4,762 |
|
(2,153 |
) |
13,145 |
|
||||
| Income taxes |
(402 |
) |
490 |
|
975 |
|
591 |
|
||||
| Financial cost |
4,216 |
|
919 |
|
4,420 |
|
4,101 |
|
||||
| Financial income |
(780 |
) |
(1,195 |
) |
(6,114 |
) |
(5,620 |
) |
||||
| Share in loss of joint venture |
- |
- |
- |
- |
||||||||
| Operating (loss) profit |
(1,554 |
) |
4,976 |
|
(2,872 |
) |
12,217 |
|
||||
| Depreciation and amortization |
5,832 |
|
5,277 |
|
22,026 |
|
20,516 |
|
||||
| Corporate research and development |
594 |
|
812 |
|
2,600 |
|
2,948 |
|
||||
| Corporate headquarter costs |
2,349 |
|
2,923 |
|
9,504 |
|
10,317 |
|
||||
| Other operating income (expense) |
(800 |
) |
(1,122 |
) |
(2,693 |
) |
(3,350 |
) |
||||
| Segment adjusted EBITDA |
6,421 |
|
12,866 |
|
28,565 |
|
42,648 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230214005059/en/
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