Xometry Reports First Quarter 2024 Results

Q1 revenue increased 16% year-over-year to $123 million driven by marketplace growth of 24% year-over-year.
Q1 gross profit increased 22% year-over-year driven by 37% growth in marketplace gross profit. Q1 marketplace gross margin increased 320 basis points year-over-year to a record 32.0%.
Q1 Adjusted EBITDA loss of $7.5 million, a 37% improvement year-over-year driven by higher revenue, gross profit, and operating efficiencies.
2024 growth initiatives include: expanding buyer and supplier networks; driving deeper enterprise engagement; expanding the marketplace menu; growing internationally and enhancing supplier services.

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.

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