NORTH BETHESDA, Md., March 01, 2023 (GLOBE NEWSWIRE) — Xometry, Inc. (NASDAQ:XMTR), the global online marketplace connecting enterprise buyers with suppliers of manufacturing services, today reported financial results for the fourth quarter and full year ended December 31, 2022.
“In Q4 2022, Xometry delivered strong 32% marketplace growth in a period of increasingly challenging macroeconomic conditions,” said Randy Altschuler, Xometry CEO. “As we continue to grow rapidly year-over-year, we are also implementing a 5-point strategic plan to ensure that we continue to deliver strong growth. These steps include realigning our sales efforts to improve our focus on our top 200 accounts who represent significant revenue opportunities and who depend on Xometry to strengthen their crucial supply chains; continued expansion of processes and materials with a deeper integration with Thomas; rapid international expansion and growth; and further enhancements and adoption of new products, including Workcenter. Additionally, we are taking an aggressive approach to reducing operating expenses, which included a 6% headcount reduction in January.”
Fourth Quarter 2022 Financial Highlights
- Total revenue for the fourth quarter 2022 was $98.2 million, an increase of 46% year-over-year.
- Marketplace revenue for the fourth quarter of 2022 was $79.1 million, an increase of 32% year-over-year.
- Supplier services revenue for the fourth quarter of 2022 was $19.1 million.
- Total gross profit for the fourth quarter 2022 was $36.0 million, an increase of 72% year-over-year.
- Marketplace Active Buyers increased 45% from 28,130 as of December 31, 2021 to 40,664 as of December 31, 2022.
- Marketplace Accounts with Last Twelve-Months Spend of at least $50,000 increased 47% from 701 as of December 31, 2021, to 1,027 as of December 31, 2022.
- Marketplace Percentage of Revenue from Existing Accounts was 96%.
- Net loss attributable to common stockholders was $24.4 million for the quarter, an increase of $0.5 million year-over-year, and Adjusted EBITDA was negative $14.2 million for the quarter, reflecting an increase of $2.4 million year-over-year. Net loss for Q4 2022 included $5.1 million of stock-based compensation and a $1.5 million restructuring charge.
- Cash and cash equivalents were $319.4 million as of December 31, 2022.
Fourth Quarter 2022 Business Highlights
- Grew the number of Active Suppliers 22% year-over-year from 2,010 to 2,447.
- Introduced a new instant quoting page for the Xometry Marketplace, offering easier navigation and greater usability of the quoting engine.
- Appointed Brendan Sterne, a veteran product executive skilled in scaling technology for growth and revenue, as our Chief Product Officer, and elevated Matt Leibel to Chief Technology Officer.
- Expanded the offerings of our Xometry Europe marketplace to include compression molding and vacuum casting, which are critical for the automotive, electronics, medical device and other industries.
- Integrated the Gravity Climate API into the Xometry Marketplace to help our customers instantly calculate carbon emissions in real-time.
Full Year Financial Highlights
- Total revenue for the full year 2022 was $381.1 million, an increase of 75% year-over-year.
- Marketplace revenue for the full year 2022 was $303.1 million.
- Supplier services revenue for the full year 2022 was $77.9 million.
- Total gross profit for the full year 2022 was $147.6 million, an increase of 158% year-over-year. Gross profit margin improved to 38.7% for year ended December 31, 2022 from 26.2% for the year ended December 31, 2021.
- Marketplace gross profit margin improved to 28.6% for the year ended December 31, 2022 from 25.1% for the year ended December 31, 2021.
- Net loss attributable to common stockholders was $76.0 million for the full year 2022, an increase of $14.6 million year-over-year, and Adjusted EBITDA was negative $41.8 million for the full year 2022, reflecting an increase of $2.0 million year-over-year. Net loss for the full year 2022 includes $19.2 million of stock-based compensation expense, $2.3 million of expense for charitable contributions and a $1.5 million restructuring charge.
Full Year Business Highlights
- Introduced “Xometry Everywhere” software which extends the reach of Xometry’s AI-driven instant-quoting pricing engine to popular third-party sites where engineers and other buyers spend significant amounts of time.
- Obtained certification for Medical Device Manufacturing (ISO 13485) enabling the Xometry marketplace to expand the breadth of medical device manufacturing.
- Expanded European operations including an enhanced site for European customers, www.xometry.eu, which makes it even easier for buyers to compare and price technologies, materials and finishes in real time. Added new languages including Spanish, Polish, Norwegian and Dutch.
- Introduced new self-serve advertising subscription options for suppliers on Thomasnet.
- Launched a local manufacturing network in China (Xometry.Asia) and began taking orders from Chinese customers in April 2022.
- Expanded CAD integrations with the addition of PTC’s Onshape product development platform which has over 2 million users. The integration provides seamless instant quoting with our proprietary, AI-driven Xometry Instant Quoting Engine®.
- On February 11, 2022 completed an offering of Convertible Senior Notes, raising net proceeds of $278.2 million.
- Introduced Workcenter which gives suppliers a one-stop view into all their Xometry and non-Xometry work. A cloud-based manufacturing execution system, Workcenter brings the job board and financial services into one, easy-to-use platform.
- Launched the Industrial Buying Engine which helps customers source and purchase from the more than 500,000 suppliers on Thomasnet.com. Through the Industrial Buying Engine, buyers can request quotes for products and services from suppliers.
- Extended Xometry quoting capabilities into new categories based on the data and suppliers from the Thomas network. The new processes include laser tube cutting and tube bending.
- Launched the universal login experience which improves and centralizes the login experience and user credentials. Universal login allows Xometry and Thomas buyers and suppliers to seamlessly move and transact across platforms.
Financial Summary
(In thousands, except per share amounts)
| For the Three Months Ended December 31, |
For the Year Ended December 31, |
||||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||||||
| Consolidated | |||||||||||||||||||||||
| Revenue | $ | 98,196 | $ | 67,098 | 46 | % | $ | 381,053 | $ | 218,336 | 75 | % | |||||||||||
| Gross profit | 36,030 | 20,937 | 72 | % | 147,566 | 57,141 | 158 | % | |||||||||||||||
| Net loss attributable to common stockholders | (24,423 | ) | (23,905 | ) | (2 | )% | (76,025 | ) | (61,379 | ) | (24 | )% | |||||||||||
| EPS, basic and diluted | (0.51 | ) | (0.53 | ) | 4 | % | (1.61 | ) | (2.33 | ) | 31 | % | |||||||||||
| Adjusted EBITDA(1) | (14,249 | ) | (11,854 | ) | (20 | )% | (41,765 | ) | (39,757 | ) | (5 | )% | |||||||||||
| Non-GAAP net loss(1) | (13,729 | ) | (11,414 | ) | (20 | )% | (40,097 | ) | (40,432 | ) | 1 | % | |||||||||||
| Non-GAAP EPS, basic and diluted(1) | (0.29 | ) | (0.25 | ) | (16 | )% | (0.85 | ) | (1.54 | ) | 45 | % | |||||||||||
| Marketplace | |||||||||||||||||||||||
| Revenue | $ | 79,062 | $ | 303,134 | |||||||||||||||||||
| Cost of revenue | 57,630 | 216,336 | |||||||||||||||||||||
| Gross Profit | $ | 21,432 | $ | 86,798 | |||||||||||||||||||
| Supplier services | |||||||||||||||||||||||
| Revenue | $ | 19,134 | $ | 77,919 | |||||||||||||||||||
| Cost of revenue | 4,536 | 17,151 | |||||||||||||||||||||
| Gross Profit | $ | 14,598 | $ | 60,768 | |||||||||||||||||||
| (1) | These non-GAAP financial measures, and 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 December 31, | |||||||||||
| 2022 | 2021 | % Change |
|||||||||
| Active Buyers(3) | 40,664 | 28,130 | 45 | % | |||||||
| Percentage of Revenue from Existing Accounts(3) | 96 | % | 95 | % | 1 | % | |||||
| Accounts with Last Twelve-Months Spend of at Least $50,000(3) | 1,027 | 701 | 47 | % | |||||||
| (2) | These key operating metrics are for Marketplace. See “Key Terms for our Key Metrics and Non-GAAP Financial Measures” below for definitions of these metrics. |
| (3) | Amounts shown for Active Buyers and Accounts with Last Twelve-Months Spend of at Least $50,000 are as of December 31, 2022 and 2021, and Percentage of Revenue from Existing Accounts is presented for the quarters ended December 31, 2022 and 2021. |
Subsequent to Fourth Quarter 2022
On January 2, 2023, the Company acquired 100% of the equity of Tridi Teknoloj A.S. (“Tridi”) located in Istanbul, Turkey. The acquisition of Tridi extended our marketplace capabilities in Europe by opening a vast array of affordable suppliers. Tridi operates an online marketplace for manufacturing with the ability to serve all of Europe within a 24-hour turn around period. The aggregate non-contingent portion of the purchase price was approximately $3.8 million. In addition, the purchase price includes a contingent consideration arrangement to the former owners of Tridi up to a maximum amount of $1.25 million (undiscounted) in Class A common shares in two installments on the first and second anniversary of the acquisition and is based on the achievement of certain revenue targets.
In December 2022, we initiated a restructuring action to help manage our operating expenses by reducing our workforce by approximately 6%. The workforce reduction focused on realigning our staffing levels to help us meet the current and future objectives of our business. For the year ended December 31, 2022, we incurred $1.5 million for employee termination costs related to this restructuring. The majority of these costs will be paid by the Company in the first quarter of 2023. We expect the reduction in workforce will reduce operating expenses by approximately $8.0 million on a full year basis.
Financial Guidance and Outlook:
| Q1 2023 | FY 2023 | ||||||||||||||
| (in millions) | |||||||||||||||
| Low | High | Low | High | ||||||||||||
| Revenue | $ | 100.0 | $ | 102.0 | $ | 470.0 | $ | 480.0 | |||||||
| Adjusted EBITDA | $ | (11.0 | ) | $ | (9.0 | ) | $ | (22.0 | ) | $ | (20.0 | ) | |||
Xometry’s first quarter and full year 2023 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.
Supplier service revenue: includes the sales of advertising on Thomasnet, marketing services, supplies, financial service products and other fintech products.
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.
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 supplies. 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 supplies.
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.
About Xometry
Xometry (XMTR) powers the industries of today and tomorrow by connecting the people with big ideas to the manufacturers who can bring them to life. Xometry’s digital marketplace gives manufacturers the critical resources they need to grow their business while also making it easy for buyers at Fortune 1000 companies to tap into global manufacturing capacity and create locally resilient supply chains. Learn more at www.xometry.com or follow @xometry.
