Velo3D

3D Printing Financials: Materialise Shares Up After Q3 Earnings Top Estimates

Inkbit

Share this Article

In an evolving, dynamic world shifting towards powerful digital tools and innovative ecosystems, 3D printing companies are regaining momentum and performing better financially. That seems to be the case for 3D printing software and service provider Materialise (NASDAQ: MTLS). The Belgium-based business reported better-than-expected revenue and net profit for its third quarter of the year, driven by solid operational performances and strong double-digit growth from all three segments: software, medical, and manufacturing. Furthermore, it revealed several aspects of an ongoing project with Lift Aircraft, a Texas-based vertical takeoff and landing (eVTOL) aircraft manufacturer.

Revenue for the three months ending September 30, 2021, was €52.2 million ($61 million), up 28% year-over-year from €40.8 million ($47.7 million) in the third quarter of last year. Materialise also reported a consolidated net profit of €8.7 million ($10 million), or 15 Euro cents per share—a whopping change against the previous year’s third-quarter loss of €282 ($330), or 1 Euro cent per share.

Materialise software suit in action.

Materialise’s software segment is critical to the company’s growth. Image courtesy of Materialise.

With revenue from its manufacturing segment hiking 61.2% in just a year to €22.8 million ($26.6 million), Materialise’s Executive Chairman Peter Leys expects consolidated revenues for the entire year to be near the higher end of his €197 million to €200 million range estimate from previous months. Additionally, the company saw increases of 10.4% and 10.2% year-on-year from the software and medical segments, respectively.

Particularly in the medical sector, Materialise recorded a 15% increase in medical software sales, which accounted for 31% of the entire segment’s revenue. During the earnings call, Leys said this “is not pent-up demand” but a continued solid growth that this medical subsegment has been showing over the last four to eight quarters.

Materialise Q3 2021 results.

Materialise Q3 2021 results. Image courtesy of Materialise.

After such a strong earnings season, Materialise shares opened up around 6% on October 28, following the release of the quarter’s earnings report. By 10:30 AM, the stock had peaked at $25.62 before easing back a bit and closing at $25.14. According to expert analysts at Simply Wall Street, Materialise stock underperformed in the US market, which returned 33.4% over the past year. However, with profits and earnings gaining momentum, experts forecast earnings will grow 52.45% per year. As investors continue to bet on the 3D printing industry, we can expect the sector to pick up business, especially now that the US and European economies are reopening.

Throughout the Covid-19 pandemic, Materialise continued to invest in its workforce, existing software platforms, such as Magics and Mimics, 3D printing manufacturing activities, and growth initiatives, which is already paying off in the short term, Leys explained during the company’s earnings call. Overall, the strong revenue growth and improved gross margin were triggered by increased in-sourcing and continuous productivity improvements, and disciplined spending, in particular with respect to overhead.

As for the future, CEO Fried Vancraen suggested that “in coming years, more and more meaningful applications we invest in today are likely to scale in the markets. We feel confident that this will help ensure our long-term success.”

Lift Aircraft's Hexa eVTOL single-passenger wingless multicopter.

Lift Aircraft’s Hexa eVTOL single-passenger wingless multicopter. Image courtesy of Lift Aircraft.

A great example of this forward motion is a project with Lift Aircraft, the startup behind Hexa, an eVTOL single-passenger wingless multicopter for short-distance travel. According to the management team, Materialise is designing and producing 89 different 3D printed end parts for the aircraft, such as the Y brackets, a structural component made with titanium.

Now in serial production, the topology-optimized part was flying just six weeks after Lift Aircraft made the request to Materialise. Moreover, the part weighs 150 grams, a major weight reduction compared to traditionally manufactured Y brackets that weigh 250 grams. In a plane estimated at under 115 kilograms, this 40% weight reduction is critical. The optimization also reduced costs by decreasing the build time and eliminating support structures, thus enabling Lift Aircraft to reach its target pricing.

Lift Aircraft's Hexa eVTOL single-passenger wingless multicopter.

Lift Aircraft’s Hexa eVTOL single-passenger wingless multicopter. Image courtesy of Lift Aircraft.

This story is another proof point that AM can make entirely “new types of value creation” and possible business concepts, highlighted Vancraen during the call. Even though these types of applications take time to develop, he considers them truly meaningful, especially if they will be sustainable in the future.

Finally, Leys said the company intends to gradually increase its operational expenses to boost growth initiatives, but expects these accelerated efforts to impact the 2022 results much more than this year. Therefore, for 2021, management is increasing its adjusted EBITDA guidance by €3 million ($3.5 million) to up to €28 million ($32.7 million).

Share this Article


Recent News

3D Printing News Briefs, June 25, 2022: Partnerships, Research, & More

NASA Funds Contour Crafting’s Material Transport Tech for Lunar Construction



Categories

3D Design

3D Printed Art

3D Printed Food

3D Printed Guns


You May Also Like

NASA Funds 3D Printing Research in 2022 SBIR/STTR Awards

Out of 333 proposals that NASA is funding as part of its 2022 Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) program, 24 are either creating new...

House 3D Printing, Bacterial Materials, and More Awarded by 3D Pioneers Challenge

The 3D Pioneers Challenge awards the best and most innovative breakthrough projects in 3D printing. This year, the jury selected projects from around the world across several categories, including medtech,...

200 3D Printed Houses Planned by Alquist 3D and Black Buffalo

Alquist 3D is a Virginia-based additive construction (AC) company, specializing in printing affordable, cement-based residential homes. Earlier this year, we covered a story about Alquist printing the first owner-occupied residential...

Featured

World’s Largest Concrete 3D Printing Facility Opened by GE Renewable Energy

The more that the renewable energy and additive manufacturing (AM) sectors evolve, the clearer it becomes how much the two industries have to offer one another. So far, this has...