NORTH BETHESDA, Md., Nov. 05, 2024 (GLOBE NEWSWIRE) — Xometry, Inc. (NASDAQ:XMTR), the global AI-powered marketplace connecting enterprise buyers with suppliers of manufacturing services, today reported financial results for the third quarter ended September 30, 2024.
“Q3 2024 represented another record-setting quarter for our company. Powered by our AI-driven marketplace, we achieved record revenues, record gross profit and record marketplace gross margin while capturing additional market share globally,” said Randy Altschuler, Xometry’s CEO. “We delivered better-than-expected results driven by strong 24% marketplace growth. The combination of our team’s strong execution, rapidly growing networks of buyers and suppliers, data-driven AI, and expanding enterprise relationships will continue to fuel strong revenue and gross profit growth.”
“We delivered another quarter of strong marketplace revenue growth and operating leverage demonstrating the value that we bring to global buyers and suppliers,” said James Miln, Xometry’s CFO. “Q3 Adjusted EBITDA loss improved 85% year-over-year driven by a 250 basis point increase in marketplace gross margin and operating efficiencies.”
Third Quarter 2024 Financial Highlights
- Marketplace revenue for the third quarter of 2024 was $127 million, an increase of 24% year-over-year.
- Marketplace Active Buyers increased 24% from 52,382 as of September 30, 2023 to 64,851 as of September 30, 2024.
- Marketplace Accounts with Last Twelve-Months Spend of at least $50,000 increased 23% from 1,223 as of September 30, 2023 to 1,506 as of September 30, 2024.
- Supplier services revenue for the third quarter of 2024 was $14.7 million, a decrease of 10% year-over-year driven primarily by the exit of non-core supplier services and to a lesser extent advertising and marketing services.
- Net loss attributable to common stockholders was $10.2 million for the quarter, a decrease of $1.8 million year-over-year. Net loss for the third quarter of 2024 included $7.0 million of stock-based compensation, $0.1 million of payroll tax expense related to stock-based compensation and $3.2 million of depreciation and amortization expense.
- Adjusted EBITDA was a loss of $0.6 million for the third quarter of 2024, reflecting an improvement of $3.6 million year-over-year.
- Non-GAAP net income was $1.1 million for the third quarter of 2024, as compared to a Non-GAAP net loss of $2.6 million in the third quarter of 2023.
Third Quarter 2024 Business Highlights
- Expanded our US marketplace menu with instant pricing and lead time offerings for tube cutting and tube bending. Through our partnership with Google Cloud, Xometry is leveraging Vertex AI to accelerate the deployment of new auto-quote methods and models on our marketplace.
- Launched a suite of tools on the European marketplace that makes it easier for enterprise customers to order parts for their high-volume manufacturing projects. The tools give engineers, designers, procurement professionals and project managers everything they need to coordinate, collaborate and manage complex orders. Xometry Europe added the Hungarian (Magyar) language to its marketplace. Worldwide, the Xometry marketplace is available in 16 languages.
- Continued the rapid expansion of the company’s global supplier base, with more than 4,200 Active Suppliers, as compared with 1,410 since the beginning of 2021. In Q3, we expanded our supplier base in the U.S. with a focus on adding new suppliers with key quality certifications to serve the needs of our larger customers across key industries.
- Appointed Roy Azevedo to Xometry’s Board of Directors on Oct. 15, 2024. Azevedo is the former president for two of Raytheon Technologies’ business units and brings significant expertise in engineering, global manufacturing and supply chain management to Xometry.
| Financial Summary (In thousands, except per share amounts) (Unaudited) |
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| For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
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| 2024 | 2023 | % Change |
2024 | 2023 | % Change |
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| Consolidated | ||||||||||||||||||||||||
| Revenue | $ | 141,698 | $ | 118,927 | 19 | % | $ | 396,983 | $ | 335,261 | 18 | % | ||||||||||||
| Gross profit | 55,825 | 46,249 | 21 | % | 156,604 | 129,174 | 21 | % | ||||||||||||||||
| Net loss attributable to common stockholders | (10,199 | ) | (12,023 | ) | 15 | % | (40,512 | ) | (56,921 | ) | 29 | % | ||||||||||||
| EPS, basic and diluted, of Class A and Class B common stock | (0.21 | ) | (0.25 | ) | 16 | % | (0.83 | ) | (1.19 | ) | 30 | % | ||||||||||||
| Adjusted EBITDA(1) | (632 | ) | (4,215 | ) | 85 | % | (10,725 | ) | (24,640 | ) | 56 | % | ||||||||||||
| Non-GAAP net income (loss)(1) | 1,114 | (2,562 | ) | 143 | % | (5,234 | ) | (18,955 | ) | 72 | % | |||||||||||||
| Non-GAAP EPS, basic and diluted(1), of Class A and Class B common stock | 0.02 | (0.05 | ) | 140 | % | (0.11 | ) | (0.40 | ) | 73 | % | |||||||||||||
| Marketplace | ||||||||||||||||||||||||
| Revenue | $ | 126,965 | $ | 102,473 | 24 | % | $ | 351,438 | $ | 282,664 | 24 | % | ||||||||||||
| Cost of revenue | 84,347 | 70,578 | (20 | )% | 235,278 | 196,240 | (20 | )% | ||||||||||||||||
| Gross Profit | $ | 42,618 | $ | 31,895 | 34 | % | $ | 116,160 | $ | 86,424 | 34 | % | ||||||||||||
| Gross Margin | 33.6 | % | 31.1 | % | 2.5 | % | 33.1 | % | 30.6 | % | 2.5 | % | ||||||||||||
| Supplier services | ||||||||||||||||||||||||
| Revenue | $ | 14,733 | $ | 16,454 | (10 | )% | $ | 45,545 | $ | 52,597 | (13 | )% | ||||||||||||
| Cost of revenue | 1,526 | 2,100 | 27 | % | 5,101 | 9,847 | 48 | % | ||||||||||||||||
| Gross Profit | $ | 13,207 | $ | 14,354 | (8 | )% | $ | 40,444 | $ | 42,750 | (5 | )% | ||||||||||||
| Gross Margin | 89.6 | % | 87.2 | % | 2.4 | % | 88.8 | % | 81.3 | % | 7.5 | % | ||||||||||||
(1) These non-GAAP financial measures, and the reasons why we believe these non-GAAP financial measures are useful, are described below and reconciled to their most directly comparable GAAP measures in the accompanying tables.
Key Operating Metrics(2):
| As of September 30, | ||||||||||||
| 2024 | 2023 | % Change |
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| Active Buyers(3) | 64,851 | 52,382 | 24 | % | ||||||||
| Percentage of Revenue from Existing Accounts(3) | 97 | % | 96 | % | ||||||||
| Accounts with Last Twelve-Months Spend of at Least $50,000(3) | 1,506 | 1,223 | 23 | % | ||||||||
| Active Paying Suppliers(3) | 6,762 | 7,415 | (9 | )% | ||||||||
- These key operating metrics are for Marketplace and Supplier Services. See “Key Terms for our Key Metrics and Non-GAAP Financial Measures” below for definitions of these metrics.
- Amounts shown for Active Buyers, Accounts with Last Twelve-Months Spend of at Least $50,000, and Active Paying Suppliers are as of September 30, 2024 and 2023, and Percentage of Revenue from Existing Accounts is presented for the quarters ended September 30, 2024 and 2023.
Financial Guidance and Outlook:
| Q4 2024 | ||||||||
| (in millions) | ||||||||
| Low | High | |||||||
| Revenue | $ | 145 | $ | 147 | ||||
- Expect to be slightly Adjusted EBITDA profitable in Q4 2024.
Xometry’s fourth quarter 2024 financial outlook is based on a number of assumptions that are subject to change and many of which are outside of its control. If actual results vary from these assumptions, Xometry’s expectations may change. There can be no assurance that Xometry will achieve these results.
Reconciliation of Adjusted EBITDA on a forward-looking basis to net loss, the most directly comparable GAAP measure, is not available without unreasonable efforts due to the high variability and complexity and low visibility with respect to the charges excluded from this non-GAAP measure; in particular, the effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in Xometry’s stock price. Xometry expects the variability of the above charges to have a significant, and potentially unpredictable, impact on its future GAAP financial results.
Key Terms for our Key Metrics and Non-GAAP Financial Measures
Marketplace revenue: includes the sale of parts and assemblies on our platform.
Supplier service revenue: includes the sales of marketing and advertising services and, to a lesser extent, financial service products, SaaS-based solutions and the sale of tools and materials, which was discontinued during the second quarter of 2023.
Active Buyers: The Company defines “buyers” as individuals who have placed an order to purchase on-demand parts or assemblies on our marketplace. The Company defines Active Buyers as the number of buyers who have made at least one purchase on our marketplace during the last twelve months. We adjusted the number of our Q3 2023 active buyers in 2024 to reflect an immaterial correction.
Active Suppliers: The Company defines “suppliers” as individuals or businesses that have been approved by us to either manufacture a product on our platform for a buyer or have utilized our supplier services, including our digital marketing services, data services, financial services or tools and materials. The Company defines Active Suppliers as suppliers that have used our platform at least once during the last twelve months to manufacture a product or buy tools or materials.
Percentage of Revenue from Existing Accounts: The Company defines an “account” as an individual entity, such as a sole proprietor with a single buyer or corporate entities with multiple buyers, having purchased at least one part on our marketplace. The Company defines an existing account as an account where at least one buyer has made a purchase on our marketplace.
Accounts with Last Twelve-Month Spend of At Least $50,000: The Company defines Accounts with Last Twelve-Month Spend of At Least $50,000 as an account that has spent at least $50,000 on our marketplace in the most recent twelve-month period.
Active Paying Suppliers: The Company defines Active Paying Suppliers as individuals or businesses who have purchased one or more of our supplier services, including digital marketing services, data services, financial services or tools and materials on our platforms, during the last twelve months.
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA): The Company defines Adjusted EBITDA as net loss, adjusted for interest expense, interest and dividend income and other expenses, provision for income taxes, and certain other non-cash or non-recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, amortization of lease intangible, stock-based compensation, payroll tax expense related to stock-based compensation, lease abandonment, charitable contributions of common stock, income from unconsolidated joint venture, impairment of assets, restructuring charge, costs to exit the tools and materials business and acquisition and other adjustments not reflective of the Company’s ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance.
About Xometry
Xometry’s (NASDAQ:XMTR) AI-powered marketplace, popular Thomasnet® industrial sourcing platform and suite of cloud-based services are rapidly digitizing the manufacturing industry. Xometry provides manufacturers the critical resources they need to grow their business and makes it easy for buyers to create locally resilient supply chains. The Xometry Instant Quoting Engine® leverages millions of pieces of data to analyze complex parts in real-time, matches buyers with the right suppliers globally, and provides accurate pricing and lead times. Learn more at www.xometry.com or follow @xometry.
