• Robust marketplace growth: Revenue increases 83% year-over-year driven by nearly 55% marketplace growth as well as supplier services including Thomas.
  
• Strong gross margin and gross profit trends driven by AI pricing/supplier selection and additional supplier services: Gross profit up 182% year-over-year. Marketplace gross profit increased 16% quarter-over-quarter.
• Expect strong growth in Q4: We expect Q4 revenue growth of 55-58% to $104-$106 million, driven by increasing active buyers and suppliers, added supplier services and revenue synergies with Thomas.
• Strong operating leverage: Q3 Adjusted EBITDA loss of $6.5 million, a $1.8 million quarter-over-quarter improvement. We expect to be Adjusted EBITDA positive in the second half of 2023.

ROCKVILLE, Md., Nov. 10, 2022 (GLOBE NEWSWIRE) -- Xometry, Inc. (NASDAQ:XMTR), the global online marketplace connecting enterprise buyers with suppliers of manufacturing services, today reported financial results for the third quarter ended September 30, 2022.

"In Q3 2022, Xometry delivered strong marketplace growth, robust expansion in marketplace gross margin and significant operating leverage quarter-over-quarter,” said Randy Altschuler, Xometry’s CEO. “In Q4, we are seeing record orders while suppliers are taking jobs at significantly lower prices, dampening near-term revenue growth. We expect to continue to rapidly gain market share and customer share of wallet fueling robust marketplace revenue growth into 2023.”

Third Quarter 2022 Financial Highlights

• Total revenue for the third quarter 2022 was $103.6 million, an increase of 83% year-over-year.
• Marketplace revenue for the third quarter of 2022 was $84.1 million.
• Supplier services revenue for the third quarter of 2022 was $19.5 million.
• Total gross profit for the third quarter 2022 was $40.9 million, an increase of 182% year-over-year.
• Marketplace Active Buyers increased 40% from 26,187 as of September 30, 2021 to 36,789 as of September 30, 2022.
• Marketplace Accounts with Last Twelve-Months Spend of at least $50,000 increased 62% from 603 as of September 30, 2021 to 974 as of September 30, 2022.
• Marketplace Percentage of Revenue from Existing Accounts was 96%.
• Net loss attributable to common stockholders was $15.0 million for the quarter, an increase of $0.3 million year-over-year, and Adjusted EBITDA was negative $6.5 million for the quarter, reflecting a decrease of $3.5 million year-over-year. Net loss for Q3 2022 included $5.1 million of stock-based compensation.
• Cash and cash equivalents and marketable securities were $341.2 million as of September 30, 2022.
  

Third Quarter 2022 Business Highlights

• Launched Credit Key flexible payment solution further expanding the basket of financial services to help buyers grow their business. With Credit Key, enterprise customers, small businesses and entrepreneurs can tap into lines of credit of up to $50,000 instantly at the point of sale on Xometry.
  
  
• Added new languages and processes to our International marketplace. In Q3, we added Polish, Norwegian and Dutch languages to our European site. Additionally, Europe introduced new production technologies including vacuum casting and compression molding.
  
  
• 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.
  
  
• Funded several manufacturing scholarship programs. Xometry is providing scholarships for 250 students at community colleges in six key manufacturing states: Maryland, Kentucky, Wisconsin, South Carolina, Connecticut and New York. Last year, Xometry, in partnership with Howard University, pledged eight full tuition scholarships over four school years to students enrolled in the Department of Mechanical Engineering at the Howard University College of Engineering and Architecture. We are funding the scholarships through our Donor Advised Fund, to which we dedicated 1% of our equity at IPO to support small- and medium manufacturers across the country.
  
  
• Held a manufacturing day event on October 7, in conjunction with the release of proprietary research conducted in partnership with Forbes and Zogby. Research revealed how manufacturing CEOs are demonstrating supply chain resilience by investing in talent and technology, while also reshoring and nearshoring their manufacturing capabilities.
  
  

Financial Summary
(In thousands, except per share amounts)