Xometry, Inc., a leading global AI enabled digital manufacturing marketplace, reported financial results for the fourth quarter ended December 31, 2021.
“In Q4 2021, Xometry continued to demonstrate strong growth across the board with accelerated demand from our larger customers. Our AI-driven platform gets smarter with each new data point leading to record gross margin,” said Randy Altschuler, Xometry’s CEO. “Although we are still in the early innings of the secular digitization of the manufacturing industry, Xometry has become the digital marketplace connecting buyers with sellers to unleash limitless product innovation.”
Fourth Quarter Financial Highlights
- Total revenue for the fourth quarter 2021 was $67.1 million an increase of 77% year-over-year.
- Excluding Thomas, Xometry Q4 2021 revenue grew 66% year-over-year from $38.0 million as of December 31, 2020 to $63.0 million as of December 31, 2021. Thomas revenue from the date of acquisition on December 9, 2021 was $4.1 million.
- Total gross profit for the fourth quarter 2021 was $20.9 million an increase of 121% year-over-year.
- Excluding Thomas, Xometry gross profit increased 83% year-over-year to $17.3 million as of December 31, 2021, as compared to $9.5 million as of December 31, 2020.
- Excluding Thomas, Xometry gross profit margin improved to 27.5% as of December 31, 2021 from 25.0% as of December 31, 2020.
- Active Buyers increased 49% from 18,846 as of December 31, 2020 to 28,130 as of December 31, 2021 (excluding Thomas).
- Accounts with Last Twelve-Months Spend of at least $50,000 increased 80% from 389 as of December 31, 2020 to 701 as of December 31, 2021 (excluding Thomas).
- Percentage of Revenue from Existing Accounts was 95%, consistent with the prior quarter (excluding Thomas).
- Net loss was $23.9 million for the quarter, an increase of $13.7 million year-over-year, and Adjusted EBITDA was negative $11.9 million for the quarter, reflecting an increase of $5.3 million year-over-year. Net loss for Q4 2021 includes $5.7 million of transaction costs, $2.6 million of stock-based compensation expense and $1.1 million of expense for charitable contributions.
- Cash and cash equivalents and marketable securities were $116.7 million as of December 31, 2021. On February 10, 2022, Xometry completed a Convertible Senior Note offering, raising $278.9 million in net proceeds.
Fourth Quarter Business Highlights
- The number of Active Sellers grew significantly, increasing 43% year-over-year from 1,410 to 2,010.
- Released version 2.0 of the Xometry app for Autodesk Fusion 360, a leading CAD design platform. Version 2.0 displays design for manufacturing feedback directly into the CAD environment and is available in Europe in multiple languages.
- On November 1, acquired Big Blue Saw. Utilizing the data and know-how from Big Blue Saw, we launched a new sheet cutting process with instant pricing for over 50 materials later in the quarter.
- On November 5, acquired FactoryFour. The cloud-based software will integrate seamlessly with the Xometry marketplace and Thomasnet.com platform, providing suppliers a one-stop view into all their orders.
- On December 9, acquired Thomas, a leader in product sourcing, supplier selection and digital marketing solutions. The acquisition of Thomas is expected to rapidly expand Xometry’s buyer and seller bases, significantly enhancing Xometry’s global digital marketplace for manufacturers. Xometry also expects to leverage Thomas’ marketing and data services to deliver an unmatched suite of end-to-end services for sellers with additional fintech and digital marketing products.
Full Year Financial Highlights
- Total revenue for the full year 2021 was $218.3 million an increase of 54% year-over-year.
- Excluding Thomas, Xometry revenue for the full year 2021 grew 52% year-over-year from $141.4 million as of December 31, 2020 to $214.2 million as of December 31, 2021.
- Total gross profit for the full year 2021 was $57.1 million, an increase of 72% year-over-year. Gross profit margin improved to 26.2% for year ended December 31, 2021 from 23.5% for the year ended December 31, 2020.
- Excluding Thomas, Xometry’s gross profit margin improved to 25.0% for the year ended December 31, 2021 from 23.5% for the year ended December 31, 2020.
- Net loss was $61.4 million for the full year 2021, an increase of $30.3 million year-over-year, and Adjusted EBITDA was negative $39.8 million for the full year 2021, reflecting an increase of $16.3 million year-over-year. Net loss for the full year 2021 includes $7.4 million of stock-based compensation expense, $5.7 million of transaction costs and $2.2 million of expense for charitable contributions.
Full Year Business Highlights
- Xometry expanded our portfolio of fintech products for sellers including Instant Pay. These products help sellers improve their cash flow and more deeply engage with the marketplace.
- Completed punchout integrations with SAP Ariba and Coupa enabling customers to order from Xometry directly from their ERP systems.
- Successfully completed our Initial Public Offering (IPO) on June 30, 2021 raising $325 million.
- Rapidly expanded in Europe including localized offerings in new countries.
- Revamped our supplies offering with a new ecommerce storefront.
- Xometry’s Donor Advised Fund (DAF) embraced the Pledge 1% movement, committing to donate the pledged amount of our equity over time to support charitable organizations.
Financial Summary
(In thousands, except per share amounts)
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For the Three Months Ended December 31, |
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For the Year Ended December 31, |
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2021 |
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2020 |
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% Change |
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2021 |
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2020 |
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% Change |
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(unaudited) |
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(unaudited) |
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Revenue |
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$ |
67,098 |
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$ |
37,980 |
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77 |
% |
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$ |
218,336 |
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$ |
141,406 |
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54 |
% |
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Gross profit |
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20,937 |
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9,479 |
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|
121 |
% |
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57,141 |
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33,286 |
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72 |
% |
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Net loss |
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(23,907 |
) |
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(10,178 |
) |
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135 |
% |
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(61,381 |
) |
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(31,085 |
) |
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|
97 |
% |
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EPS—basic and diluted |
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(0.53 |
) |
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(1.34 |
) |
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(60 |
)% |
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(2.33 |
) |
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(5.32 |
) |
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(56 |
)% |
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Adjusted EBITDA (Non-GAAP)(1) |
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(11,854 |
) |
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(6,590 |
) |
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80 |
% |
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(39,757 |
) |
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(23,498 |
) |
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69 |
% |
- 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):
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As of December 31, |
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2021 |
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2020 |
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% |
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Active Buyers(3) |
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28,130 |
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18,846 |
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49 |
% |
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Percentage of Revenue from Existing Accounts(3) |
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95 |
% |
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95 |
% |
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— |
% |
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Accounts with Last Twelve-Months Spend of at Least $50,000(3) |
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701 |
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389 |
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80 |
% |
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(2) These key operating metrics are for Xometry (excluding any impacts from Thomas).
(3) Amounts shown for Active Buyers and Accounts with Last Twelve-Months Spend of at Least $50,000 are as of December 31, 2021 and 2020, and Percentage of Revenue from Existing Accounts is presented for the quarters ended December 31, 2021 and 2020.
Subsequent to Fourth Quarter 2021
On February 4, 2022, the Company completed a private offering of $250 million aggregate principal amount of 1.00% Convertible Senior Notes due 2027 (the “Initial Notes”). The Initial Notes were issued pursuant to an indenture, dated February 4, 2022 (the “Indenture”), between the Company and U.S. Bank Trust Company, National Association, as trustee.
On February 10, 2022, the Company issued an additional $37.5 million aggregate principal amount of its 1.00% Convertible Senior Notes due 2027 (the “Additional Notes”) to the initial purchasers named in the purchase agreement. The issuance of the Additional Notes was pursuant to the initial purchasers’ exercise in full of their 13-day option to purchase Additional Notes granted in the original offering of $250 million aggregate principal amount of 1.00% Convertible Senior Notes due 2027. The proceeds from the Initial Notes and the Additional Notes (collectively referred to as the “Notes”) are expected to be used for working capital and other general corporate purposes. The Company may also use a portion of the net proceeds for acquisitions of, or strategic investments in, complementary businesses, products, services, or technologies. However, the Company does not have agreements or commitments with respect to any such acquisition or strategic investment at this time. The Notes are general unsecured obligations of the Company and will mature on February 1, 2027, unless earlier converted, redeemed or repurchased. Interest on the Notes will accrue at a rate of 1.00% per year from February 4, 2022 and will be payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2022. In connection with the Notes offering, the Company received net cash proceeds of approximately $278.9 million, after deducting the initial purchasers discounts and commissions.
Financial Guidance and Outlook:
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Q1 2022 |
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FY 2022 |
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(in millions) |
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Low |
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High |
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Low |
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High |
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Revenue |
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$ |
81.0 |
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$ |
82.0 |
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$ |
390.0 |
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$ |
400.0 |
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Adjusted EBITDA |
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$ |
(13.5 |
) |
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$ |
(12.5 |
) |
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$ |
(36.0 |
) |
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$ |
(32.0 |
) |
Conference Call
The Company will discuss its fourth quarter and full year 2021 financial results during a teleconference on 3/17/2022, at 5:00 PM ET/2:00 PM PT. The conference call can be accessed in the U.S. at 877-313-2061 or outside the U.S. at 470-495-9537 with the conference ID# 7397803. A live audio webcast of the call will also be available simultaneously at investors.xometry.com. Following completion of the call, a recorded replay of the teleconference will be available in the investor relations section of Xometry's website. The earnings webcast presentation will be archived within the Investor Relations section of Xometry's website.
