• Q2 revenue increased 16% year-over-year driven by strong marketplace growth of 24% year-over-year and 8% quarter-over-quarter. Supplier Services revenue impacted by approximately $1.7 million on a year-over-year basis driven by discontinuation of sales of supplies in the U.S. in Q2.
  
• Q2 gross profit up 16% year-over-year driven by 34% growth in marketplace gross profit. Marketplace gross profit up a robust 19% quarter-over-quarter.
• Q2 Adjusted EBITDA loss of $8.7 million, a $3.1 million quarter-over-quarter improvement driven by higher revenue, gross profit and improved operating leverage.
• In Q2, we took further actions to reduce operating expenses with a 4% reduction in workforce on top of the 6% previously announced in Q1. Additionally, we consolidated office space, lowering office lease expense by $2.7 million on an annual basis.
• Expect Q3 revenue growth of 15%-17% year-over-year to $119-$121 million driven by strong marketplace growth.
• Continued positive results from our 5-point strategic plan with increasing focus on our top 200 accounts; rapidly expanding the marketplace menu; furthering international expansion and growth; driving adoption of new products, and driving operating leverage.

NORTH BETHESDA, Md., Aug. 09, 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 second quarter ended June 30, 2023.

“In Q2 2023, Xometry delivered stronger-than-expected 24% marketplace growth year-over-year, delivered 19% growth in marketplace gross profit quarter-over-quarter and significantly improved operating leverage,” said Randy Altschuler, Xometry’s CEO. “Driven by Artificial Intelligence, the underpinnings of marketplace growth are robust with 44% active buyer growth and continued strong order growth. Xometry is empowering our customers to build parts that are critical components in next-generation industries from spacecraft and electric vehicles to medical devices and robotics. Our digital marketplace and suite of cloud-based solutions are enabling the long tail of the internet to finally reach the thousands of small- and medium-sized manufacturers in the United States and around the world. We expect to continue to rapidly gain market share fueling robust marketplace revenue growth in 2023 and continuing on our path to Adjusted EBITDA profitability in Q4 2023.”                                                                               

Second Quarter 2023 Financial Highlights

• Total revenue for the second quarter 2023 was $111.0 million, an increase of 16% year-over-year.
• Marketplace revenue for the second quarter of 2023 was $93.5 million, an increase of 24% year-over-year.
• Supplier services revenue for the second quarter of 2023 was $17.5 million, a decrease of 13% year-over-year driven by the exit of the supplies business in the U.S. which reduced revenue by $1.7 million year-over-year.
• Total gross profit for the second quarter 2023 was $43.6 million, an increase of 16% year-over-year.
• Marketplace Active Buyers increased 44% from 33,491 as of June 30, 2022 to 48,294 as of June 30, 2023.
• Marketplace Accounts with Last Twelve-Months Spend of at least $50,000 increased 30% from 894 as of June 30, 2022, to 1,159 as of June 30, 2023.
• Marketplace Percentage of Revenue from Existing Accounts was 96%.
• Active Paying Suppliers increased 5% from 7,202 as of June 30, 2022 to 7,553 as of June 30, 2023.
• Net loss attributable to common stockholders was $26.6 million for the quarter, an increase of $10.0 million year-over-year. Net loss for Q2 2023 included $5.8 million of stock-based compensation, $8.8 million of lease abandonment and termination costs and $0.7 million of restructuring costs related to a reduction in force and $0.6 million associated with our exit from the supplies business.
• Adjusted EBITDA was negative $8.7 million for the quarter, reflecting an increase of $0.4 million year-over-year.
• Cash, cash equivalents and marketable securities were $286.1 million as of June 30, 2023.
  

Second Quarter 2023 Business Highlights

• Expanded AI-powered Xometry Instant Quoting Engine to include instant-quoting of inserts, multi-part assemblies, and expanded sheet-cutting processes. The enhanced features allow buyers to instantly get pricing and lead times on CNC, sheet metal and sheet-cut parts with standard inserts while also analyzing multi-party assemblies, further accelerating Xometry’s assembly production work.
• Introduced expanded sheet-cutting options to include a wider array of metal, composite and rubber materials. Xometry’s sheet-cutting service can cut a variety of materials using the latest laser and waterjet-cutting technologies.
• Expanded Thomas Market Services (TMS) self-serve offering to include bundles with advertising and video services.
• Launched Instant Quoting for Alibaba Group’s 1688.com On-Demand Manufacturing Services through Xometry Asia. The collaboration gives buyers in China the ability to receive instant quotes and lead times from Chinese suppliers, data that is fueled by Xometry’s AI-powered Instant Quoting Engine. Xometry is the only partner specialized in the structural parts on 1688.com that will provide real-time pricing and lead times.
• Expanded the Xometry platform to include team functionality. This new dashboard allows teams of engineers and procurement professionals within an organization to collaborate and manage manufacturing supply chain projects on Xometry’s marketplace. It provides a suite of tools that enables customers to increase productivity and efficiency by providing real time order status and other data across the organization. The product is in limited beta release.