Materialise's Q4 2024: Contradictions in Manufacturing Profitability, Software Revenue, and Deferred Trends

These are the key contradictions discussed in Materialise's latest 2024 Q4 earnings call, specifically including: Manufacturing Segment Profitability Expectations, Software Segment Recurring Revenue Growth, and Deferred Revenue Trends:



Revenue Growth in Medical Segment:
- Materialise Medical reported a revenue increase of more than 14% in Q4 2024, setting a new quarterly revenue record.
- The growth was driven by increased revenue from medical devices and services, as well as medical software.

Manufacturing Segment Challenges:
- Materialise Manufacturing experienced a 13% decrease in revenue for Q4 2024, impacted by weak prototyping demand, unfavorable macroeconomic conditions in Europe, and the start-up of a new plant.
- The company implemented a restructuring in its 3D printing manufacturing activities to reduce its cost base in 2025.

Software Segment Transition:
- Materialise Software's revenue remained roughly flat in Q4 2024 despite its transition to a cloud and subscription-based business model.
- The segment saw a 19% increase in recurring revenue from software maintenance and license sales, including CO-AM, but a 35% decrease in nonrecurring revenue.

Financial Performance and Guidance:
- The company reported a positive net profit of €2.9 million in Q4 2024, compared to a net loss in the same period last year.
- Materialise's guidance for 2025 anticipates revenues in the range of €270 million to €285 million and an adjusted EBIT between €6 million to €10 million, reflecting the uncertain macroeconomic environment in Europe.