Xometry, Inc., the global AI-powered marketplace connecting enterprise buyers with suppliers of manufacturing services, reported financial results for the fourth quarter and full year ended December 31, 2023.
“In Q4 2023, we delivered record financial results including our highest revenue and gross profit in Xometry history,“ said Randy Altschuler, Xometry’s CEO. ”Xometry's strong 31% revenue growth was driven by accelerated 42% marketplace growth. We improved operating leverage, reducing Q4 Adjusted EBITDA loss by 32% quarter-over-quarter. Powered by AI, our marketplace continues to gain significant market share as buyers and suppliers realize the value, convenience and resiliency of our platform. While we have seen a softer start to the year as reflected in our outlook, we remain confident in our initiatives to drive long term profitable growth.”
Fourth Quarter 2023 Financial Highlights
- Total revenue for the fourth quarter 2023 was $128 million, an increase of 31% year-over-year.
- Marketplace revenue for the fourth quarter of 2023 was $112 million, an increase of 42% year-over-year.
- Supplier services revenue for the fourth quarter of 2023 was $16.1 million, a decrease of 15% year-over-year driven primarily by the exit of the tools and materials business, which reduced revenue by approximately $2 million year-over-year.
- Total gross profit for the fourth quarter 2023 was $49.1 million, an increase of 39% year-over-year.
- Marketplace Active Buyers increased 36% from 40,664 as of December 31, 2022 to 55,458 as of December 31, 2023.
- Marketplace Accounts with Last Twelve-Months Spend of at least $50,000 increased 30% from 1,027 as of December 31, 2022 to 1,331 as of December 31, 2023.
- Marketplace Percentage of Revenue from Existing Accounts was 96%.
- Active Paying Suppliers decreased 6% from 7,715 as of December 31, 2022 to 7,271 as of December 31, 2023. Excluding the exited tools and materials business, Active Paying Suppliers was flat year-over-year.
- Net loss attributable to common stockholders was $10.6 million for the quarter, a decrease of $15.3 million year-over-year. Net loss for Q4 2023 included $5.9 million of stock-based compensation and $2.8 million of depreciation and amortization expense.
- U.S. segment net loss to common stockholders was $5.9 million, a decrease of $16.0 million year-over-year. International segment net loss to common stockholders was $4.6 million, an increase of $0.7 million year-over-year.
- Adjusted EBITDA was negative $2.9 million for the quarter, reflecting an improvement of $12.8 million year-over-year.
- Cash, cash equivalents and marketable securities were $268.8 million as of December 31, 2023.
Fourth Quarter 2023 Business Highlights
- Launched Xometry Teamspace in October after a successful beta test with several large customers in Q3. The cloud-based collaboration tool enables the customer’s employees to manage projects within Xometry’s AI-powered platform, streamlining order management, increasing efficiency and driving data-based decision-making. Since the launch, over 1,500 teams have been created.
- Added IATF 16949 Automotive standard to the marketplace for our automotive buyers. IATF (“International Automotive Task Force”) is the international standard for quality management systems in the automotive industry.
- Updated process recommender to the AI-powered Xometry Instant Quoting Engine®, expanding coverage of manufacturing processes and improving accuracy. As computer-aided design (“CAD”) files are uploaded to the Xometry marketplace, the new process recommender instantly analyzes the geometric features of the file, identifies the most appropriate manufacturing process for the customer, and configures their quote.
- Launched add-in for SOLIDWORKS in Europe, the U.K. and Türkiye. Buyers can now get instant quotes, lead times, and design-for-manufacturability feedback from Xometry directly in the CAD software.
Full Year Financial Highlights
- Total revenue for the full year 2023 was $463 million, an increase of 22% year-over-year.
- Marketplace revenue for the full year of 2023 was $395 million, an increase of 30% year-over-year.
- Supplier services revenue for the full year of 2023 was $68.7 million, a decrease of 12% year-over-year driven primarily by the exit of the tools and materials business, which reduced revenue by approximately $6 million year-over-year.
- Total gross profit for the full year of 2023 was $178 million, an increase of 22% year-over-year.
- Marketplace gross profit margin improved to 30.8% for the year ended December 31, 2023 from 28.2% for the year ended December 31, 2022.
- Net loss attributable to common stockholders was $67 million for the full year of 2023, a decrease of $12 million year-over-year. Net loss for the full year of 2023 included $22 million of stock-based compensation and $11 million of depreciation and amortization expense.
- U.S. segment net loss to common stockholders was $49.7 million, a decrease of $12.1 million year-over-year. International segment net loss to common stockholders was $17.8 million, an increase of $0.5 million year-over-year.
- Adjusted EBITDA was negative $27.5 million for the full year 2023, reflecting an improvement of $17.3 million.
Full Year Business Highlights
- Grew the number of Active Suppliers 36% year-over-year from 2,529 to 3,429.
- Expanded further in Europe with the launch of xometry.uk, a localized marketplace for UK customers. Xometry’s localized marketplaces allow regional customers to get quotes and purchase parts directly in local currency.
- Introduced instant quoting for parts with multiple finishes. Buyers can identify parts requiring multiple finishes and the instant quoting engine will automatically price them. This instant feedback helps buyers make decisions in real-time.
- Introduced a new quick-turn injection molding service for quotes in as fast as two hours and parts in as little as five business days.
- Acquired Tridi Teknoloj A.S. (“Tridi”) located in Istanbul, Türkiye. The acquisition of Tridi extends our marketplace capabilities in Europe by opening an array of affordable suppliers and the ability to serve all of Europe within a 24-hour turnaround period.
- 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.
- Launched Instant Quoting for Alibaba Group’s 1688.com on-demand manufacturing services through Xometry APAC. 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.
- Announced a partnership with Google Cloud to help accelerate new auto-quote methods and models within the AI-powered Xometry 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.
- Expanded Thomas Marketing Services’ self-serve offering to include bundles with advertising and video services. 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 Quoting 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 and Measurement Report. Xometry Asia added Fused Deposition Modeling auto-quoting capabilities.
|
Financial Summary(1) |
||||||||||||||||||||||||
|
For the Three Months |
For the Year |
|||||||||||||||||||||||
|
2023 |
2022 |
% |
2023 |
2022 |
% |
|||||||||||||||||||
|
Consolidated |
||||||||||||||||||||||||
|
Revenue |
$ |
128,145 |
$ |
98,061 |
31 |
% |
$ |
463,406 |
$ |
380,921 |
22 |
% |
||||||||||||
|
Gross profit |
49,085 |
35,202 |
39 |
% |
178,259 |
145,991 |
22 |
% |
||||||||||||||||
|
Net loss attributable to common stockholders |
(10,551 |
) |
(25,813 |
) |
59 |
% |
(67,472 |
) |
(79,059 |
) |
15 |
% |
||||||||||||
|
EPS, basic and diluted, of Class A and Class B common stock |
(0.22 |
) |
(0.54 |
) |
59 |
% |
(1.41 |
) |
(1.68 |
) |
16 |
% |
||||||||||||
|
Adjusted EBITDA(2) |
(2,850 |
) |
(15,639 |
) |
82 |
% |
(27,490 |
) |
(44,799 |
) |
39 |
% |
||||||||||||
|
Non-GAAP net loss(2) |
(400 |
) |
(15,119 |
) |
97 |
% |
(19,355 |
) |
(43,131 |
) |
55 |
% |
||||||||||||
|
Non-GAAP EPS, basic and diluted(2), of Class A and Class B common stock |
(0.01 |
) |
(0.32 |
) |
97 |
% |
(0.40 |
) |
(0.91 |
) |
56 |
% |
||||||||||||
|
Marketplace |
||||||||||||||||||||||||
|
Revenue |
$ |
112,090 |
$ |
79,148 |
42 |
% |
$ |
394,754 |
$ |
303,223 |
30 |
% |
||||||||||||
|
Cost of revenue |
77,024 |
58,323 |
(32 |
)% |
273,264 |
217,779 |
(25 |
)% |
||||||||||||||||
|
Gross Profit |
$ |
35,066 |
$ |
20,825 |
68 |
% |
$ |
121,490 |
$ |
85,444 |
42 |
% |
||||||||||||
|
Gross Margin |
31.3 |
% |
26.3 |
% |
5.0 |
% |
30.8 |
% |
28.2 |
% |
2.6 |
% |
||||||||||||
|
Supplier services |
||||||||||||||||||||||||
|
Revenue |
$ |
16,055 |
$ |
18,913 |
(15 |
)% |
$ |
68,652 |
$ |
77,698 |
(12 |
)% |
||||||||||||
|
Cost of revenue |
2,036 |
4,536 |
55 |
% |
11,883 |
17,151 |
31 |
% |
||||||||||||||||
|
Gross Profit |
$ |
14,019 |
$ |
14,377 |
(2 |
)% |
$ |
56,769 |
$ |
60,547 |
(6 |
)% |
||||||||||||
|
Gross Margin |
87.3 |
% |
76.0 |
% |
11.3 |
% |
82.7 |
% |
77.9 |
% |
4.8 |
% |
||||||||||||
(1) Our 2022 results have been revised to reflect immaterial corrections related to certain captions within the Consolidated Balance Sheet, Consolidated Statement of Operations and Comprehensive Loss and Consolidated Statement of Cash Flows. See tables below for additional details with respect to the line items impacted.
(2) 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.
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 February 29, 2024. In addition to issuing a press release, the Company will post an earnings presentation to its investor website at investors.xometry.com.
Xometry, Inc. Fourth Quarter and Full Year 2023 Earnings Presentation and Conference Call
- 8:30 a.m. Eastern / 5:30 a.m. Pacific on Thursday, February 29, 2024
- To register please use the following link: https://register.vevent.com/register/BIe8fa0a130127401593eefccfb6625781
- You may also visit the Xometry Investor Relations Homepage at investors.xometry.com to listen to a live webcast of the call
