Xometry, Inc., the global AI-powered marketplace connecting enterprise buyers with suppliers of manufacturing services, reported financial results for the third quarter ended Sept. 30, 2023.
“In Q3 2023, we had record financial results including our highest revenue and gross profit in Xometry history. Xometry delivered strong 22% marketplace revenue growth year-over-year and significantly improved operating leverage, reducing Q3 Adjusted EBITDA loss by 51% quarter-over-quarter, well ahead of expectations,” said Randy Altschuler, Xometry’s CEO. “Driven by AI, the underpinnings of marketplace growth are robust with over 40% Active Buyer and order growth in Q3. We are improving operating leverage across the business, including increased marketing efficiency with record additions in net Active Buyers. Xometry continues to expand marketplace functionality including the recent integration of Teamspace, furthering our enterprise sales solutions and increasing our organic buyer growth. We are excited to announce our new Google Cloud AI partnership, which will accelerate instant quoting into many new categories on our platform. We expect to continue to rapidly gain market share and accelerate marketplace revenue growth in Q4.”
Third Quarter 2023 Financial Highlights
- Total revenue for the third quarter 2023 was $119 million, an increase of 15% year-over-year.
- Marketplace revenue for the third quarter of 2023 was $102 million, an increase of 22% year-over-year.
- Supplier services revenue for the third quarter of 2023 was $16.5 million, a decrease of 16% year-over-year driven primarily by the exit of the tools and materials business which reduced revenue by $2 million year-over-year.
- Total gross profit for the third quarter 2023 was $46.2 million, an increase of 13% year-over-year.
- Marketplace Active Buyers increased 43% from 36,789 as of September 30, 2022 to 52,467 as of September 30, 2023 with a record addition of 4,173 new Active Buyers.
- Marketplace Accounts with Last Twelve-Months Spend of at least $50,000 increased 26% from 974 as of September 30, 2022, to 1,223 as of September 30, 2023.
- Marketplace Percentage of Revenue from Existing Accounts was 96%.
- Active Paying Suppliers decreased 2% from 7,557 as of September 30, 2022 to 7,415 as of September 30, 2023. Excluding the exited tools and materials business, Active Paying Suppliers increased 4% year-over-year from 7,092 as of September 30, 2022 to 7,337 as of September 30, 2023.
- Net loss attributable to common stockholders was $12.0 million for the quarter, a decrease of $3.0 million year-over-year. Net loss for Q3 2023 included $5.7 million of stock-based compensation and $2.5 million of depreciation and amortization expense.
- Adjusted EBITDA was negative $4.2 million for the quarter, reflecting an improvement of $2.3 million year-over-year.
- Cash, cash equivalents and marketable securities were $276.8 million as of September 30, 2023.
Third Quarter 2023 Business Highlights
- Announced a partnership with Google Cloud to help accelerate new auto-quote methods and models within Xometry’s AI-powered Instant Quoting Engine. Using Vertex AI, Xometry will accelerate the deployment of its instant-quoting to encompass the broadest and most comprehensive set of manufacturing technologies. The Vertex AI platform will enable us to get to market faster with new offerings in entirely new categories, allowing us to become more indispensable to our customers and to our suppliers globally.
- Launched Xometry Teamspace in October after a successful beta test with several large customers in Q3. Teamspace is a cloud-based collaboration tool that lets employees at the same company manage projects within Xometry’s AI-powered platform. An important addition to Xometry’s online marketplace, Teamspace helps streamline order management, increase efficiency and drive data-based decision-making. Since the launch, over 300 teams have been created.
- Added “Build America, Buy America” as a recognized certification on the Thomasnet.com manufacturing sourcing platform of more than 500,000 suppliers throughout North America. The new category on Thomasnet.com makes it easy for enterprise buyers to identify manufacturers that are compliant with the BABA initiative, a significant component of the bipartisan Infrastructure Investment and Jobs Act.
- Added two additional self-serve profile options for the more than 500,000 suppliers on Thomasnet.com. “Thomas Verified” and “Thomas Verified + Video” offer manufacturers enhanced visibility and targeting to prospects from preferred industries, as well as custom video options.
- Added AS9100 Certified to the Instant Quote Engine for our aerospace and defense buyers in October. AS9100 is a certification defining the design and manufacturing standard for aerospace and defense products including parts, components, and assemblies. This is particularly relevant for customers doing production work including flight parts.
- Expanded International offerings including Portuguese language capability and new automated inspection reports in Europe. Buyers now can conveniently pick from multiple report options on the Xometry Europe marketplace including First Article Inspection Report (Fair) and Measurement Report. Xometry Asia added Fused Deposition Modeling (“FDM”) auto-quoting capabilities.
Conference Call and Webcast Information
The Company will host a conference call and webcast to discuss the results at 8:30 a.m. ET (5:30 a.m. PT) on November 9, 2023. In addition to issuing a press release, the Company will post an earnings presentation to its investor website at investors.xometry.com.
Xometry, Inc. Third Quarter 2023 Earnings Presentation and Conference Call
- 8:30 a.m. Eastern / 5:30 a.m. Pacific on Thursday, November 9, 2023
- To register please use the following link: https://register.vevent.com/register/BI1d244cfd8ee84a47a1618245cd6518fb
- You may also visit the Xometry Investor Relations Homepage at investors.xometry.com to listen to a live webcast of the call
