NORTH BETHESDA, Md., May 09, 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 first quarter ended March 31, 2024.
“Powered by AI, our marketplace continues to gain significant market share as buyers and suppliers realize the value, convenience and resiliency of our platform,” said Randy Altschuler, Xometry’s CEO. “In Q1 2024, we delivered better than expected revenue driven by strong 24% marketplace revenue growth. Marketplace growth was driven by robust 32% growth in Active Buyers. We expect our current initiatives to continue to drive long-term growth.”
“We delivered strong marketplace gross margin expansion to a record 32% and improved our Q1 Adjusted EBITDA loss by 37% year-over-year,” said James Miln, Xometry’s CFO. “We expect to continue to improve our year-over-year progress towards profitability in 2024 through operating leverage, partly offset by international and enterprise growth investments.”
First Quarter 2024 Financial Highlights
- Total revenue for the first quarter 2024 was $123 million, an increase of 16% year-over-year.
- Marketplace revenue for the first quarter of 2024 was $107 million, an increase of 24% year-over-year.
- Supplier services revenue for the first quarter of 2024 was $15.5 million, a decrease of 17% year-over-year driven primarily by the exit of the lower-margin tools and materials business, which reduced revenue by approximately $2 million year-over-year.
- Total gross profit for the first quarter 2024 was $47.9 million, an increase of 22% year-over-year.
- Marketplace Active Buyers increased 32% from 44,451 as of March 31, 2023 to 58,504 as of March 31, 2024.
- Marketplace Accounts with Last Twelve-Months Spend of at least $50,000 increased 25% from 1,109 as of March 31, 2023 to 1,381 as of March 31, 2024.
- Active Paying Suppliers decreased 6% from 7,621 as of March 31, 2023 to 7,159 as of March 31, 2024. Excluding the exited tools and materials business, Active Paying Suppliers decreased 2% year-over-year.
- Net loss attributable to common stockholders was $16.6 million for the quarter, a decrease of $1.7 million year-over-year. Net loss for Q1 2024 included $6.0 million of stock-based compensation and $3.2 million of depreciation and amortization expense.
- Adjusted EBITDA was negative $7.5 million for the quarter, reflecting an improvement of $4.3 million year-over-year.
First Quarter 2024 Business Highlights
- Introduced enhanced features for our Teamspace enterprise collaboration software. Teamspace moves the Xometry marketplace from a focus on individual buyers and parts to procurement teams managing essential programs. New features include enhanced collaboration, order management tools and comprehensive quote histories. Since the launch of Teamspace, over 2,300 teams have been created.
- Launched a marketplace buyer dashboard for tooling processes, including injection molding. New dashboard provides engineers and procurement professionals details about their various tools, as well as a view of their tool production workflow (tracking everything from quoting, design-for-manufacturability and tool production and part production).
- Expanded the xometry.eu marketplace menu, including adding Vacuum Casting to the Instant Quoting engine allowing customers to take advantage of low-cost, high-quality plastic production. Added 200 classic RAL colors to our finishing options and launched Czech language on the site, xometry.eu/cs, marking Xometry’s 15th local-language.
- Started beta testing a number of new features for Thomas, including new self-serve tools for suppliers to create custom advertising campaigns on Thomasnet. The new tools let suppliers select from among 78,000 categories and keywords that best reflect their products and services and present a range of suggested budgets tailored to their marketing spend.
| Financial Summary (In thousands, except per share amounts) (Unaudited) |
|||||||||||
| For the Three Months Ended March 31, |
|||||||||||
| 2024 | 2023 | % Change | |||||||||
| Consolidated | |||||||||||
| Revenue | $ | 122,690 | $ | 105,326 | 16 | % | |||||
| Gross profit | 47,902 | 39,369 | 22 | % | |||||||
| Net loss attributable to common stockholders | (16,616 | ) | (18,344 | ) | 9 | % | |||||
| EPS, basic and diluted, of Class A and Class B common stock | (0.34 | ) | (0.38 | ) | 11 | % | |||||
| Adjusted EBITDA(1) | (7,459 | ) | (11,767 | ) | 37 | % | |||||
| Non-GAAP net loss(1) | (5,742 | ) | (9,766 | ) | 41 | % | |||||
| Non-GAAP EPS, basic and diluted(1), of Class A and Class B common stock | (0.12 | ) | (0.20 | ) | 40 | % | |||||
| Marketplace | |||||||||||
| Revenue | $ | 107,186 | $ | 86,680 | 24 | % | |||||
| Cost of revenue | 72,907 | 61,747 | (18 | )% | |||||||
| Gross Profit | $ | 34,279 | $ | 24,933 | 37 | % | |||||
| Gross Margin | 32.0 | % | 28.8 | % | 3.2 | % | |||||
| Supplier services | |||||||||||
| Revenue | $ | 15,504 | $ | 18,646 | (17 | )% | |||||
| Cost of revenue | 1,881 | 4,210 | 55 | % | |||||||
| Gross Profit | $ | 13,623 | $ | 14,436 | (6 | )% | |||||
| Gross Margin | 87.9 | % | 77.4 | % | 10.5 | % | |||||
| (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 March 31, | |||||||||||
| 2024 | 2023 | % Change |
|||||||||
| Active Buyers(3) | 58,504 | 44,451 | 32 | % | |||||||
| Percentage of Revenue from Existing Accounts(3) | 95 | % | 96 | % | |||||||
| Accounts with Last Twelve-Months Spend of at Least $50,000(3) | 1,381 | 1,109 | 25 | % | |||||||
| Active Paying Suppliers(3)(4) | 7,159 | 7,621 | (6 | )% | |||||||
| (2) 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. | |||||||||||
| (3) Amounts shown for Active Buyers, Accounts with Last Twelve-Months Spend of at Least $50,000, and Active Paying Suppliers are as of March 31, 2024 and 2023, and Percentage of Revenue from Existing Accounts is presented for the quarters ended March 31, 2024 and 2023. | |||||||||||
| (4) Excluding the impact of the exit of the tools and materials business, Active Paying Suppliers was down 2% year-over-year. | |||||||||||
Financial Guidance and Outlook:
| Q2 2024 | |||||||
| (in millions) | |||||||
| Low | High | ||||||
| Revenue | $ | 127 | $ | 129 | |||
| Adjusted EBITDA | $ | (8 | ) | $ | (6 | ) | |
- Expect Q2 2024 revenue growth of 14%-16% year-over-year to $127-$129 million.
- Expect Q2 2024 Adjusted EBITDA loss of $6.0-$8.0 million.
- Expect fiscal 2024 marketplace revenue growth of at least 20% year-over-year and expect supplier services revenue to be down approximately 10% year-over-year.
- For fiscal 2024, we expect improved operating leverage as compared to fiscal 2023, partly offset by international and enterprise growth investments.
Xometry’s second quarter 2024 and full year 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.
About Xometry
Xometry’s (NASDAQ:XMTR) AI-powered marketplace, popular Thomasnet® industrial sourcing platform and suite of cloud-based services are rapidly digitizing the $2 trillion 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.
