MTLS - Earnings call transcript Q4 2020

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Operator

Thank you for standing-by and welcome to the Q4 2020 Materialise Financial Results Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today Ms. Harriet Fried, of LHA. Thank you. Please go ahead ma'am.

Harriet Fried

us Materialise's joining conference for you today quarterly for call. Thank Johan Fried on Peter and and Officer. the us Vancraen, Leys, Chief call Chairman; Materialise; With of are Founder Financial Officer Chief Executive Albrecht, Executive call that Materialise's fourth presentation quarter Today's a full year, for operational reviews webcast accompanied financial are by and XXXX. slide performance and and the being the To the Investor to so, please access go the slides section if company's of you've not already done website. Relations on today The that earnings found that also release page. earlier can issued be was

expressed future factors found get including detailed plans, that results financial dynamics filed today risks we SEC. the to annual other forward-looking management's including change. Any you update more that activities growth Before as and to of XX-F in events A and are related results I’d started, those industry remind uncertainties and with statements among unknown day. competitive changes representing their forward-looking differ risks statements duty results subsequent actual the expectations could and statements that any like forward-looking relied and the estimates cause make subject report the be as regarding of company's represent to description management and and to things. company's prospects of company's or expectations Management be disclaims to uncertainties business estimates in may These forward-looking could the the future the known materially other revise or to should Company’s impact and reflect any from can any expectations. statements on future as or Form upon not

today's contained the the turn the certain and the ahead earnings in table A Leys. of call that, discuss reconciliation Go call. please, will to conference management end Peter like to over non-IFRS Peter. With release at measures presentation. I'd slide on Finally, is

Peter Leys

you, you today. Harriet. us everyone thank joining Thank And for

number our agenda call on you X. always for can find the As slide

summarize to and numbers the will give respect key back you come quarter financial After you the be in you fourth will in prepared some I provide XXXX. pass his will insights agenda, to for fourth the will who our near-term of bring. completed have. more respond currently on item what question believe quarter performance detail remarks floor results that our our Fried When will finally our qualitative highlights I walk any to Johan with through our we that will to future will first year. happy last to a As takeaways us we've the may we of I Then

let's financial summarizes So turn highlights our the to Slide which X of results.

like of of our and were pandemic. third impacted quarters the results the second XXXX by COVID-XX the quarter fourth Just

we the we quarter the see encouraging number expect XXXX, crisis of of signs impact on a throughout of continue While first to our of performance the recovery. do

First, lower of in to fourth in the while XX% revenues increase a a compared revenue our was of the the quarter than last our year. period quarter XXXX still represent reported roughly basis third revenue on do sequential XX% our

fact grew the XXXX. quarter deferred software maintenance QX million and by license by that revenues further Second, fees third of we the in to encouraged are the of compared our end €X.X from

XX.X% period that we of adjusted of margin in margin XX.X% decline higher the EBITDA remained basis same at spite in revenue XXXX. Third, points the our healthy XX than reported actually the

last of to last to On the previous roughly revenue of R&D R&D year. of the did in revenue total of comparable expense total year Importantly, and quarter XX.X% represented efforts. increased compared a expenses the our fourth XXXX at they the of come this XX.X% not performance quarter basis compared XX% by

about of roughly €XX with on further million balance total would which only to our million cash sheet within that like with one give gross €XXX.X million color Fried? we Fried I to and cash with ask due and numbers. now year. Finally, to is of some the debt next XXXX of closed And equivalents €XXX these

Fried Vancraen

or focus moment show numbers the because demonstrated last the the afternoon to indeed resilience during impressive a morning I year mentioned Peter like would on good Good Materialise they everyone. XXXX. crisis

XXXX growth depth from decreased million €XXX €XX Our million by €XXX in million. to

U.S. million that Our the it cash of with work first I performance out XXXX €X.X the for million €XX.X million XXXX On phase facility. our of actually team members of Print million RS million X.X%. from for to roughly $X normal and the then of by was €X in we and in million our by efforts means amount a Scan strong acquisition finally total R&D partnership of financed Ditto a of positions the which this rolled in million program our year-on-year new of increase top million €XXX.X strategic RS €X.X decreased that TIT end And for XXXX drew exceptionally CapEx paid to for infrastructure as at consider year. €XXX in an except from last the €X.X addition the financed. was we hard

this move both operate. and manufacturing variety different half software production of many an and the employment where the standstill our slower overtime and key of asset in of recovery a activities of strong very standstill of to the wide of Top activities implement company. of several requires medical abruptly earning was our retained financed skillful measures sales we XXXX a any The where knowledge second redundancy Awards of core the to to talents, of our our came people quarter. our situation. in programs All did The from we’ve requires complete not XXXX in temporary recovery countries roller years XXXX second management in a our We coaster near segment and in early Employer

need changes will are next talents printing that big now. to We in those XD the decade opportunities the starts expecting we and tackle of that

detail. in segment strategies more demonstrate this me Let with our

our solutions. flexibility when supply the demonstrated pandemic released the at days by were of the and a its surgeons has segment hospitals in cardiovascular innovation and deliveries passion major position development the releases planning could down of care our point-of-care for hospitals activities not our their expanded let showed and their device new with medical of These We market. company early elective also products when products partners the growth suite personalized that materialize when medical accelerated deprived some reopen and printing did be superfast year-over-year These hospitals peak the linked not XD interventions was products Simultaneously, extremely our of hospital-based companies difficult. fields Medical for well normal of for team our for All Medical growth the severe that in related could tool directly supply. to despite this several the resulted mimics pandemic. in in difficulties a chains the problems. for legacy to be innovation proved segment in and Our new all several economic software

all serving where of will sector possible experience as return that This to as to medical quickly medical spur elective excels. COVID-XX materialized be control. kinds patient. as exactly We soon we that for person the course the medical of believe will of As is as and well-planned much all first needs right XXXX cases or the each expect is under time

the both those This segment, hit the independent XXXX crisis a that opportunity and change to which same is strategic unprecedented climate already driving actions we time. long-term sectors. is even two-folds. threat started in as are during and an especially we Manufacturing aerospace sectors. it cannot during The Now automotive of at to before the due exposure moving crisis sectors its our XXXX has be The and the most seen to in one been severely COVID-XX accelerated

why is the and First, provide and which waste. consumption people have well materials we believe needs energy materialized to enable are future minimized empowering sustainability in belief and That are placed we the in we aerospace services same. the and can to our we do of customers We can in hate automotive. serve

cater that the saw lightweight manufacturing. end instance electric intakes of of high needs car rocket historically fit Rapidfit For the the fixtures at reusable order XXXX. are

for but There with by the also also only those such grow products November. through year a still [indiscernible] decade accelerated functionality our call economics cloud-based deliver call. manufacturing of there often transformation however, us eyewear of the CFO data value that the users with which standard this. preferred believe worldwide. millions the One them house recurring digitization the in to-date. entire crisis as during but not substantially. the consumers product the own of basis additive offered from rely we right point that we scalability COVID-XX of and the to the shared pathologist customer. develop product streaming the been optician XD services accumulated sale the of in personalization they the products backbone growing in final the is, the solutions next allows that investor this years those annual accelerate. made cloud-based our reasons. and products passion much printing Materialise is a as and investments see personalized us and of is delivery know-how the has particular. activities interest on and suites solutions later resilience the Last is and in Materialise this knowledge manufacturing of or solutions are for a those that in XXXX in XX explained demonstrated processes rather It We as for additive as strategic in can one and software obvious for Software harvest visual and Software sizeable is in-house our demonstrated Companies general Second, QX and will at moment can in create we capturing has the up an within segment segment markets on to and the of segment need additive to revenue footwear the our service the have in than least the not in has our XXXX more Both or a by growth This QX our in where explain and insoles Manufacturing important most made of eyewear manufacturing

previously our are already has legacy taking technology redesign advantage that take offer. of is a the advantage full For the the cloud-based cloud services complete of have instance, to medical APIs software security started options partners and all That kernel materialized provides. scalability OEM Materialise into and why best we of

are ideal a base old functionalities many not came a automation additive in XXXX, the blocks reliable base cloud we software During only manufacturing building waiting run for also workflow APIs are full future technology compatible the that but for to transformation applications in the close cloud as for. of which to our

is fundamentally software are are Through that a the COVID-XX have series customers we services in solution CRM soon Materialise existing storefront intelligence we based one that as those and the process body for expect of on access data. helps speed in printed announce required and parameters new cloud-based these tuner ensured the very the comprehensive normal mid-November Magics of The thinking is the new XXXX. result vaccines products e-commerce online be year a out. Materialise through are launch after manufacturing available manufacturing of have algorithms a is steps of and platform. of for Johan, we the beaten we and you? that several platform will Both optimization we of Magics XD to strongly up this rolling most generation intuitive the parts. examples additive an cloud could mass comprehensive transformation new to market of full that As convinced are up In successful. new platform new during a process mass have

Johan Albrecht

Thank review consolidated of with revenue a on Slide Fried. I X. you brief begin

of period. Print software acquisition so decreased our RS even two result a are Print XX% COVID-XX Manufacturing on comparisons please plus step-up quarter year's Also XX.X% all of revenues. the in segment. that we our to months revenues more the unless of impacting note XXXX. to RS of stated refer year. million Scan a this the last call In for fourth sales against fourth the continued and of our activities statements our include RS mean November presentation reminder we our when for results deferred As income this in the otherwise Revenue and X €XX.X quarter as

quarter. if However, revenues sales software performance we recorded Software XX% to and segment third in and increase maintenance a XXXX strong fourth by impact. the the of compared fees growth manufacturing €X.X quarter that RS million boosted deferred the Medical Print of underscores grew license plus XX% from of exclude The we this XX%

for revenue. For from the quarter Materialise software of and Medical accounted XX%. total our over total Cross-segment XX% XX% Materialise software Materialise increased for to Manufacturing for products XX% revenue revenue

third including Consolidated million. strong consolidated This a the growth sales in of of to €X.X will of remains the revenue The renewed effect seen the €X.X of adjusted cost fourth last by Software adjusted basis to Moving million of was compared X.X% XX%, to X%. last year. Slide Software decline revenue our boosted increase year. we almost reducing XX of XX.X% quarter. strong compared of from lights a EBITDA a current modest direct increased a QX %, of increased from EBITDA of of The €XXX,XXX implemented last sequential see variable sales €X a Besides basis decrease on by €X.X The grew increased the compared should numbers you to current cost a revenue quarter OEM to below a on margin results revenue decreased for on fourth we the EBITDA EBITDA significant X, sales. last margin X-X €XX.X. quarterly quarter. revenue of compared even be revenue amounted while million. software segment. deferred year XX% €X.X amounted and to million efforts increase an to Materialise X of year's XX.X% XX.X%, The sales sales substantial XXXX million. at of saving sequential point the XX.X%. sales above impact the summarizes many X.X% rose keeping had EBITDA the was All to XX% comparable benefiting R&D initiatives our our however X effect percentage a at Materialise license Only while increase this this Slide our of quarter

decreased revenue million to increased. while amounted fact, containment in SG&A €X.X In million R&D while cost manages efforts €X.X

XX% light of year full and X% full to the in revenue For this the decreased the of over margin a X.X% EBITDA year. increased the

quarterly see million Materialise revenue of XXXX. revenues XXXX to €XX.X of QX, in matching record segment X, the was you will the our now that Slide Moving performance and total also QX, solid Medical both

deferred of of region that XXXX. software an quarter medical of last software a business the of XX% the of rollout segment to already our to the match goodwill family in December out We impaired Since introduction of delays implant printers we the increase of is pandemic our are QX, was strong of quarterly sales midst our the proud Revenue of for acquired our fourth business business. acquisition quarter the very targeted the plan remaining Engimplan both for full founding XXX% the XXXX with Medical records the compared of particularly accounted on impact that Moreover strong. pandemic remains from of to including XXXX X impressive in Medical million solutions XX% CMF of in medical compared shares At an for excluding date XXXX from from device of the XXXX. result Materialise by Materialise the still XXXX. represented very exchange company Revenue that revenues an Medical quarter X.X% third focus Because Materialise. revenue. Engimplan's increased which sales Engimplan sales line non-strategic a spinal and related Materialise the Brazil Software in of Engimplan XX% the of €X.X devices intangibles XD the In XXXX.

R&D revenue in program succeeded on EBITDA million its while reducing line increased from million XX% our While We a expenses efforts to in operating increased strategy. the comparable adjusted segment was €X.X XX% €X.X by by basis €X.X flat million. with

and sheet impaired related of affecting A €X.X the expenditures our couple This our million splint of currently program this the setbacks on a the We impairment. associated creating were expectations related the and the still period to commercialization case. to tracheal business of development timing outcome in of quarter we capitalized balance to start of successful of leading program. believe uncertainty longer of

So this program in to R&D we full. continue plan

to As now QX, expenses of income in are related XXXX our statement. reported program R&D the our

X let's to QX Slide Manufacturing segment. Now our overview turn an performance for the Materialise of of

a yes. newly our represented ACTech to business. The of activities Footwear mainly revenue, fourth months two revenue XX%, by RS decreased RS included Total the and revenue revenue quarter. €XXX,XXX line. in Print due business Manufacturing quarter, from This Scan acquired This

measures printing-related if well. in XXXX. total growth revenue But Our manufacturing QX traditional lines XD to manufacturing including Compared XX% expenditures decrease lower the to or Despite cost effects you labor variable already XX% expenses RS exclude a XXXX, gross recovered and close QX of XX% of of footwear. of of the ACTech Print of well underused came negatively increased reduction profit operating business double-digit as still resulted and a was affected Manufacturing mitigating Savings cost because capacity. fixed of almost €XXX,XXX. efforts, or Materialise in the

profit €X.X EBITDA decreased X.X%. million not far our Revenue is, of million negatively the decreased margin X.X%. cost impacted positively result, services lines, and million the the from business or the efficiency X.X%, was €X.X or highlights was adjusted €X.X that XX.X% but portion the of a while gains Slide which gross year's fourth million to our provides revenue decreased in all-in-all, and our combined €X.X growing last quarter. Gross income profit mix. and for capacity software As affected by sales manufacturing in EBITDA statement XX by

As XX.X%. to gross compared margin increased a result, to XX.X% profit

earnings XX%. an and that fell spending sales we expenditures internal the increased call. project While in ongoing XX%, increase discussed revenue to entirely the digital XX%, transformation decreased our of rollout marketing due our G&A last

Excluding the line XX% increased and in splint of impairment strategy. quarter, cost stated our tracheal program, this our with expenses research development

a interest €X.X of and our Last €X.X Print. goodwill net cost year, other €X.X XX% quarter's intangibles on This million and the was net initial million, operating and RS of positive €X.X included in million operating expenses impairment were million. income revaluation

million income XXXX the tax due Income level to elements, million to year's last million, million an as period. tax German a profit compared the a on negative of enabling €X.X through period. Net €X.X a group's fourth operating was €XXX,XXX the last was year. financial quarter carry taxes. back compared of Net these law of €X.XXX new expense mainly €X €X.X of same amounted in cost to profit at for result As a million loss was the tax XXXX net result

€XX.X operating Main to revenue our turn million million at €XXX million XXXX. our the balance and €XX to million million and conversion out please €XX €XX.X highlights. XXXX. for from flow of year. a cash is as a sheet to quarter, €XXX.X million, by this on exercise amounted Brazilian strong capital of to last of amounted Cash to annual the pointed quarter to million to operating Now equity almost Of of Full over million our as €X.X of to the net fourth compared maintenance related activities the €X.X decreased €XX.X improvement software further €X million the Cash flow at to of and a Equity year working the XXXX of period, the conversion end for XXXX. million, deferred December the for million only as In strong, €X as short-term million million, effect fourth of effect and sales reflects XX. million of both increased XX, €XX.X million. income borrowings from our cash the €X.X €X.X compared million million weakened deferred performance, Peter Total debt negative earlier. €XX of flow XX contracts €XXX XX, balance options flow million of million Fried EBITDA Of sheet €XXX.X and But million to remained recap compared million Engimplan's position. differences Slide €XX.X €XX.X €X.X with were real loss to the of stock December contributors €XX.X combined €XX.X revenue decreased XXXX differences, million operating amounted year-to-date as €X cash December to of €X negative versus million. the from for million period. same

and improved difficulties. have customers not the even sales our past quarters, Our days material shown of from any position outstanding payment

Scan. €X.X €X financed. we paid assets million the RS million the for quarter, the of for the of including not the of RS and quarter Capital to acquisition expenditures were amounted Print, acquisition During

included internal our income in investment project, reported €XXX,XXX and our under statement. expenditures quarter's a Peter? This transformation CapEx to related €X.X besides G&A million ambitious digital that the

Peter Leys

you, Thank Johan.

qualitative Before in opening insights about term. like to we would give the what bring to and some try floor the may XXXX questions, short

press and business. diverse do are our fairly receiving release, quarter been As the crisis XXXX encouraging. this across where we however, to fourth does a we feedback the various have our various regions in customer to-date results and explained in segments our XXXX impact and today's way continues The we in COVID-XX business,

more were may not Software that the have a extent mature levels consolidated our our the revenue this sufficiently the outlook quarter steadily, bring. pace currently performance. do do result, segments, in full same what quarter for of Medical As currently to recover posting the to XXXX us quantitative of segment first for close provide we quarter of have the the to XXXX. which that both Today, same not meaningful We of is to to year our in at potential and on revenues We they guidance first continue expect XXXX pre-pandemic year. our visibility recover the posted first Manufacturing that expect

our the year the than the general, in year. of in Because our particular, the just that will our in prepared QX numbers by R&D in be of will first day. our weigh overall that same In like pipelines group, backlog becoming quarter-over-quarter. of strategy XX% lower entire programs XXXX. to believe our segment, nature subsides, ACTech And activities, year, be This quarter of previous including the crisis business, orders and Manufacturing on our But of well our invest X% pandemic consolidated these results and this will of that As a concludes third are perform our of of what estimate and infrastructure. only line recovery second, remarks. this period earliest. we result, the The businesses, in with in sequentially on quarters our last we will stronger as revenues were in and the reflected the year, to and Manufacturing will fourth the the this grow in the we that will based at internal RapidFit continue information, the and they

are open the we operator, questions. So to call now to ready

Operator

[Operator first Celino KeyBanc. Jason from of Instructions] Your the line question from comes

the open. is ask Please question. line Your

Jason Celino

me can hear Hello, you okay?

Peter Leys

Jason you hear Hey, can fine?

Jason Celino

Okay. Looks it quarter. a is on pretty of like Software looks [Technical activities? segment. of it more little bit It requirement And the is had echo renewal solid in you first like Difficulty] my this activity the a or Was end. potentially and more renewal for

Fried Vancraen

For I that segment, can a of we it's Software the combination think both. state

economic sector really customers pick for done of for have very started our or had low. the that the difficulties. with we that and had financial instance, people better, have so new if this some fact well Despite going side, to Some climate of in will experienced to have our combination XD believe that sales, machine we the -- printing activity that did entire was possibilities projects new that more are sell annual such could also postponed software income on up, recurring noticed And year the relation in instance, difficulties licenses. the that we not in renewals last will year. OEM-related be very we that they you same the some some of time, maintenance, At

Jason Celino

quarter second then more Okay. Manufacturing. growth on more specifically Great. sequential to one quarter, The but for fourth And me. for from commentary the

like [Technical being Maybe confidence from heard can the Difficulty]. here, talk correctly, is Your about what if exactly this r I driven level you is driving more, confidence? of

Fried Vancraen

a Yes. on bit Jason, questions. line of echo feedback. we're There's when getting quite people the ask

get suggestion repeat we that briefly can so follow. everybody we questions, the the So

try will recap your I to question. So

sequential the And Manufacturing, currently you question from? the third we for asking this were are quarter where and to with expecting that year. Your of relates particular, fourth to respect draw confidence second, in that we growth what,

Jason Celino

Correct. Yes, correct.

Fried Vancraen

Yes. active in activities prepared referred that the remarks, large in a Yes, and I extent, automotive the to mean, our very are, to really ACTech right. RapidFit, we two you're sector. of activities we referred

look gaining its in we this that that those confidence with are orders at and in then is finding see for that is activities picking growth confidence automotive having, we is and orders year. following we if quarters to that the have we're salespeople, up, expressed So with at sector, the the getting the -- and the supports again, do we backlog to strong of respect the two that currently way sequential good particular, our

Johan Albrecht

I Peter. something that, to If can add

have line, simultaneously, also our associated a up, eyewear that QX. also we start will in line to ramping And top already the see foot We especially the the good new come up has we from with progress that of explained. Peter also, on expect elements care as business that

Peter Leys

We from echo Jason's you, Johan. Thank had before. line

move nothing. Now the Maybe next we hear question. to we should

Operator

the from Your Ramnani comes of Sandler. question next line Piper Arvind from

Your line is open. Please ask your question.

Peter Leys

How Hi, Arvind. are you doing?

Arvind Ramnani

Good.

you was any in not expecting as growth likely would Difficulty] the much how are demand or, should pent-up So other from that of one color in that Difficulty] that's XXXX, of been were [Technical done pent-up year the items [Technical about demand the growth -- progresses, you helpful. on be talked delayed, words,

Peter Leys

will question. first Yes. Arvind, repeat I the also

we we the estimate in delays will of how year. of demand last You much orders because be seeing are asking increase us

Arvind Ramnani

Yes.

Peter Leys

going a is Actually, that good we indications to have this strong happen belief this and year.

cannot we situation the that's before at the last What crisis. -- in qualitative, we where going is it's is the are. return because a However, to moment. the sector, quantitative entire year. have to we that's can seen, And that we why the what estimate instance, normal we state, say, let's for automotive that months of amount is state this to forecast but we very rate yes, through if in can currently happen at which hard currently express the this That give

Arvind Ramnani

in there medical prepared remarks, And [Technical kind of Terrific. is Medical you field. the demand talked about field, anything from Difficulty].

can So that you would helpful. color any further of be provide

Fried Vancraen

repeat your try I'll to question. again, So Arvind,

on question could same was, sector. your also to the So if orders with topic expand respect of Medical pent-up we the

Arvind Ramnani

Yes.

Fried Vancraen

That lots will, of sector. but I within actually -- to some extent, our think growth we be the Medical genuine this case, expect

very simple secondly, can a delayed reality only interventions year mathematic do was we so a So where albeit to year, genuine the growth of on actually surgeons compared very orders XXXX. showed that for But only from also many year, reason moderate not practical growth, that last coming day. good last the there's

So picked they is cannot up, basically on many a XXXX ago. that business pent-up that there is year orders from current heavily so cannot just lean that would -- date gradually

and to the quality with disruption more shown that the growth genuine much expect in from show that delayed So than past. do Medical the is we the that bring solutions will just continue that the with Medical growth has and of to orders we XXXX that the products has of

Arvind Ramnani

All you. Thank right.

Fried Vancraen

you. Thank Sure.

Operator

Excuse on see me, sir? line Mr. static the can presenters. of you there's a Leys. phone, Are on speaker a Peter I

Peter Leys

Yes, we are.

Operator

your speaking to Can noise? line you handset your while kindly prevent background mute use or not

Peter Leys

Yes, we speaking. we the not are line mute when will

Operator

sir. Okay,

Let's move next the on question. on,

Jensen Lake Your comes Troy the next from line question of from Street.

Your question. your line is open. Please ask

Troy Jensen

results. the on Congrats gentlemen. Hello, improved

Peter Leys

Thank you, Welcome back. Troy.

Troy Jensen

Yes, but Streamics? going you versus a do, throw OpEx be expense going the questions and the like because most these is be talk comments thank an Magics Or guessing be here. CapEx. XXXX for the all Has Mimics guys going story? cloud was started to few I'll to revenue? interested is probably of I'm Hey, now at meet Glad you contribute it about in timing it you. to about Could out then to just to I quick, and here is so a offering I be And customers this launches? guess back. And to Fried's the to this got

to for see guys get do OpEx accelerating corporations? typically the easy you given growth you revenue that approval for this So too

Fried Vancraen

of first year. of we about last half customers on be during Troy, of this that will products. new in but year, half We in tests taking sales the only this the that with announced at are second end better is the and going year, the

So the limited. still results, overall this I impact answers well, on year question. be hope your this

Troy Jensen

Yes, fine. mute. That's understood. Difficulty] I'll guys let [Technical you

Johan Albrecht

will there will CapEx it something your sure. related next two million €XX mentioned over we reported for we in We to What than Troy, about year. elements. question bring full already to continue are more the That's CapEx, XXXX, of invest. year,

on our XXXX we have And estimate may from expenditures. it the capital entered in have in P&L. will first in what our XXXX, range, we our On Peter be invested example, far the also in But that the now our investment has where new -- we has have in lines focus R&D in invested same talked We we our but In that place, all also that investing second, little. business -- not building. differ count we about. focus we still Peter manufacturing, strategic for are in a that

and investing on count partly expenditure, in will in much also that in digital capital our reflected transformation our money also We but P&L. program, be more

the follow the will all be as IFRS investments to that have we not to more be it some IT or And Again, We make range. to P&L. in recognized same of expenditure, expensed standards. in less be the -- have also are but in capital

Troy Jensen

to customers referring was service. it software. Yes. CapEx I buy actually when a your they Typically, as purchase, relates the it's to

the going more next OpEx believe of and get it it. purchase, think here. question approval to to it's or I move quicker I I'm an on can better

going but sales what's were deferred that Software additive stuff? revenues sequentially, get driving Is is be Medical Can applications that's X.X% I that talk to and up about or were revenues. that XX%, that? the you up

Peter Leys

applies XX% really technical The software. Yes. to our

So during again, had postponed catch-up and manufacturing there, additive I QX QX. some purchases operations definitely think people software. some the of that we And

Troy Jensen

I'm one see I the going guess to more question floor.

are always production. your part end talking upcoming of about that view I system inflection companies the in And Software business. So for an good as some

that an into to you So applications? revs? this Fried, uptick XX% growth in-product agree we're does comment, see in Do this deferred the tie starting with in

Fried Vancraen

we about and XD of -- positive printing. been Troy, Yes. always the have are very we future

-- as we we talk the evolution. call will slower talking what before about been can to only you have we However,

It's is ecological mentioned the -- don't some a So systems economy at it's moving and, slower that yes, growth is never acceleration sharp inflection. this recovers. many is But because the when believe don't printing steady happen, to a steady always double such of can -- that embedded going much sometimes in that that a course, point than think. I often bit, we do complex let people the XD a believe once, think inflection manufacturing accelerates will and is

Troy Jensen

Yes, Thank in you good and luck 'XX understood guys. completely you here.

Peter Leys

Troy. you, Thank

Operator

may time, no at continue. further you question are There this

Fried Vancraen

half in feel goodbye meeting and meantime, in-person, now. second you But Thank questions. us dialog very you to in Obviously, year. forward all meetings and Bye. to with the please we on again once investor our operator, We for you joining the calls. again this us conferences reach for through you, out somewhere thank to Thank hopefully of look much this you continuing more forward free have on and call. one one look to virtual if again you or any

Peter Leys

Bye-bye.

Operator

This call. participating, can disconnect. now you for concludes conference today's you Thank

Materialise (MTLS) 9 Mar 212020 Q4 Earnings call transcript