Third Quarter 2020 Results
Except as otherwise required by the context, references to Materialise, Company, we, us and our are
to Materialise NV and its subsidiaries.
Third Quarter 2020 Results
Total revenue for the third quarter of 2020 decreased 19.2% to 40,785 kEUR compared to 50,449 kEUR for the third quarter of 2019.
Revenue from our Materialise Software segment decreased 12.7% to 9,478 kEUR for the third quarter of 2020 from 10,860 kEUR for the same quarter last year.
Recurring revenue of Materialise Software increased by 15.9%.
Revenue from our Materialise Medical segment increased 10.8% to 17,161 kEUR for the third
quarter of 2020 compared to 15,488 kEUR for the same period in 2019. Compared to the third quarter of 2019, revenues from our medical software grew 3.1% and revenues from medical devices and services increased 14.5%.
Revenue from our Materialise Manufacturing segment decreased 41.3% to 14,154 kEUR for the third quarter of 2020 from 24,127 kEUR for the third quarter of
2019.
Gross profit was 23,220 kEUR, or 56.9% of total revenue, for the third quarter of 2020 compared to 29,023 kEUR, or 57.5% of total revenue, for the
third quarter of 2019.
Research and development (R&D), sales and marketing (S&M) and general and administrative
(G&A) expenses decreased, in the aggregate, 11.9% to 24,176 kEUR for the third quarter of 2020 from 27,439 kEUR for the third quarter of 2019. In the third quarter of 2020, we increased our R&D expenses by 4.2%, while our cost
reduction initiatives in S&M and G&A resulted in decreases of 18.7% and 11.7%, respectively, compared to the third quarter of 2019.
Net other
operating income was 1,157 kEUR compared to 1,332 kEUR for the third quarter of 2019.
Operating result decreased to 201 kEUR from 2,916 kEUR for the
third quarter of 2019.
Net financial result was (1,331) kEUR compared to (966) kEUR for the third quarter of 2019. The share in result of joint
venture amounted to 0 kEUR compared to (41) kEUR for the same period in 2019. Subsequent to the end of the third quarter, we agreed to acquire substantially all assets of RS Scan, our joint venture partner in RS Print, and thereby acquire the
remaining 50% interest in RS Print.
The third quarter of 2020 contained income tax income of 764 kEUR, compared to an income tax expense of
(908) kEUR in the third quarter of 2019.
As a result of the above, net loss for the third quarter of 2020 was (366) kEUR, compared to 1,001
kEUR for the same period in 2019. Total comprehensive loss for the third quarter of , which includes exchange differences on translation of foreign operations, was (1,744) kEUR compared to 1,067 kEUR for the 2019 period.
Adjusted EBITDA decreased to 6,023 kEUR from 8,022 kEUR. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the third quarter of 2020
was 14.8% compared to 15.9% for the third quarter of 2019.
Segment EBITDA decreased to 3,114 kEUR from 3,769 kEUR while the segment EBITDA margin
(segment EBITDA divided by segment revenue) was 32.9% compared to 34.7% for the prior-year period.
Segment EBITDA increased to 5,477 kEUR compared to
2,795 kEUR while the segment EBITDA margin was 31.9% compared to 18.0% for the third quarter of 2019.
Segment EBITDA decreased to (293) kEUR from
3,862 kEUR while the segment EBITDA margin was (2.1)% compared to 16.0% for the third quarter of 2019.
At September 30, 2020, we had cash and
equivalents of 110,691 kEUR compared to 128,897 kEUR at December 31, 2019. Gross debt amounted to 117,884 kEUR at September 30, 2020, compared to 127,939 kEUR at December 31, 2019. As a result, our net cash position decreased 8,151
kEUR during the first three quarters of 2020.