Xometry Reports Second Quarter 2024 Results

Q2 revenue increased 19% year-over-year to a record $133 million driven by marketplace growth of 25% year-over-year.
Q2 gross profit increased 21% year-over-year to a record $52.9 million with a record 39.9% gross margin.
Q2 marketplace gross profit increased 33% year-over-year. Q2 marketplace gross margin increased 180 basis points year-over-year to a record 33.5%. Q2 supplier services gross margin increased 910 basis point to 88.9% driven by increased focus on the high gross margin Thomas marketing and advertising services business.
Q2 Adjusted EBITDA improved 70% year-over-year to a loss of $2.6 million. Q2 Adjusted EBITDA loss represented 2.0% of revenue.
2024 growth initiatives include: expanding buyer and supplier networks; driving deeper enterprise engagement; further expanding the marketplace menu; growing internationally and enhancing supplier services.

NORTH BETHESDA, Md., Aug. 08, 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 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 Summary
(In thousands, except per share amounts)
(Unaudited)

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2024			2023			% Change		2024			2023			% Change

Consolidated
Revenue	$	132,595		$	111,008		19	%	$	255,285		$	216,334		18	%
Gross profit		52,877			43,556		21	%		100,779			82,925		22	%
Net loss attributable to common stockholders		(13,697	)		(26,554	)	48	%		(30,313	)		(44,898	)	32	%
EPS, basic and diluted, of Class A and Class B common stock		(0.28	)		(0.55	)	49	%		(0.62	)		(0.94	)	34	%
Adjusted EBITDA ⁽¹⁾		(2,634	)		(8,658	)	70	%		(10,093	)		(20,425	)	51	%
Non-GAAP net loss ⁽¹⁾		(606	)		(6,627	)	91	%		(6,348	)		(16,393	)	61	%
Non-GAAP EPS, basic and diluted ⁽¹⁾ , of Class A and Class B common stock		(0.01	)		(0.14	)	93	%		(0.13	)		(0.34	)	62	%

Marketplace
Revenue	$	117,287		$	93,511		25	%	$	224,473		$	180,191		25	%
Cost of revenue		78,024			63,914		(22	)%		150,931			125,661		(20	)%
Gross Profit	$	39,263		$	29,597		33	%	$	73,542		$	54,530		35	%
Gross Margin		33.5	%		31.7	%	1.8	%		32.8	%		30.3	%	2.5	%

Supplier services
Revenue	$	15,308		$	17,497		(13	)%	$	30,812		$	36,143		(15	)%
Cost of revenue		1,694			3,538		52	%		3,575			7,748		54	%
Gross Profit	$	13,614		$	13,959		(2	)%	$	27,237		$	28,395		(4	)%
Gross Margin		88.9	%		79.8	%	9.1	%		88.4	%		78.6	%	9.8	%

_{(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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