Xometry, Inc., the global AI-powered marketplace connecting enterprise buyers with suppliers of manufacturing services, reported financial results for the second quarter ended June 30, 2024.
“We delivered record revenue, record gross profit and record gross margins as our AI-powered marketplace continues to gain market share,” said Randy Altschuler, Xometry’s CEO. “In Q2 2024, we grew our marketplace revenue 25%, with accelerated growth in the U.S. and a record 33.5% marketplace gross margin as more customers turn to Xometry for their supply chain solutions. The combination of data-driven AI and supplier network expansion will fuel robust growth and continued margin improvement.”
“We delivered another strong quarter with better-than-expected results driven by improving marketplace gross margin and significant operating leverage,” said James Miln, Xometry’s CFO. “This resulted in a 70% improvement in our Adjusted EBITDA loss to $2.6 million, or 2.0% of revenue. We remain focused on our path to Adjusted EBITDA profitability.”
Second Quarter 2024 Financial Highlights
- Total revenue for the second quarter 2024 was $133 million, an increase of 19% year-over-year.
- Marketplace revenue for the second quarter of 2024 was $117 million, an increase of 25% year-over-year.
- Supplier services revenue for the second quarter of 2024 was $15.3 million, a decrease of 13% year-over-year driven primarily by the exit of the lower-margin tools and materials business and non-core supplier services.
- Total gross profit for the second quarter 2024 was $52.9 million, an increase of 21% year-over-year.
- Marketplace Active Buyers increased 27% from 48,340 as of June 30, 2023 to 61,530 as of June 30, 2024.
- Marketplace Accounts with Last Twelve-Months Spend of at least $50,000 increased 24% from 1,159 as of June 30, 2023 to 1,436 as of June 30, 2024.
- Active Paying Suppliers decreased 7% from 7,553 as of June 30, 2023 to 6,992 as of June 30, 2024.
- Net loss attributable to common stockholders was $13.7 million for the quarter, a decrease of $12.9 million year-over-year. Net loss for Q2 2024 included $8.1 million of stock-based compensation, $0.8 million of payroll tax expense related to stock-based compensation and $3.3 million of depreciation and amortization expense.
- Adjusted EBITDA was negative $2.6 million for the quarter, reflecting an improvement of $6.0 million year-over-year.
Second Quarter 2024 Business Highlights
- Developed new auto-quote categories. Xometry is now beta-testing new auto-quote tube-bending and tube-cutting processes within Xometry’s AI-powered marketplace which we expect to release later in Q3. Xometry is leveraging Google Cloud Vertex AI to accelerate the development of new instant-quoting capabilities.
- Expanded offerings in the Asia Pacific region, including new English-speaking countries Australia, Singapore and New Zealand through an upgraded xometry.asia site. In China, Xometry also launched enhanced customer service capabilities on its WeChat mini app for buyers to quote, order and track deliveries.
- Expanded European marketplace menu with new finishes and materials. For CNC, Xometry Europe added 11 new materials including new steel and aluminum grades. Additionally, the EU site expanded its finishing options for 3D printing. Xometry Europe now offers localized marketplaces in 15 different languages.
Financial Guidance and Outlook:
|
Q3 2024 |
||||||||
|
(in millions) |
||||||||
|
Low |
High |
|||||||
|
Revenue |
$ |
136 |
$ |
138 |
||||
|
Adjusted EBITDA |
$ |
(3.5 |
) |
$ |
(1.5 |
) |
||
- Expect Q3 2024 revenue growth of 14%-16% year-over-year to $136-$138 million.
- Expect Q3 2024 Adjusted EBITDA loss of $1.5-$3.5 million.
- Reaffirm fiscal 2024 marketplace revenue growth of at least 20% year-over-year and expect supplier services revenue to be down approximately 10% year-over-year.
- For fiscal 2024, we expect improved operating leverage as compared to fiscal 2023, partly offset by international and enterprise growth investments.
Xometry’s third quarter 2024 and full year 2024 financial outlook is based on a number of assumptions that are subject to change and many of which are outside of its control. If actual results vary from these assumptions, Xometry’s expectations may change. There can be no assurance that Xometry will achieve these results.
Reconciliation of Adjusted EBITDA on a forward-looking basis to net loss, the most directly comparable GAAP measure, is not available without unreasonable efforts due to the high variability and complexity and low visibility with respect to the charges excluded from this non-GAAP measure; in particular, the effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in Xometry’s stock price. Xometry expects the variability of the above charges to have a significant, and potentially unpredictable, impact on its future GAAP financial results.
