Xometry Inc (XMTR, Financial) released its 8-K filing on November 5, 2024, reporting robust financial results for the third quarter ended September 30, 2024. The company, known for its AI-enabled manufacturing solutions, achieved a record revenue of $141.7 million, surpassing analyst estimates of $137.70 million. This represents a 19% increase year-over-year, driven by a 24% growth in its marketplace segment.
Company Overview
Xometry Inc is a leading provider of AI-enabled manufacturing equipment, catering to a diverse clientele that includes engineers, product designers, and business owners. The company offers a range of manufacturing processes such as CNC Machining, Injection Molding, and 3D Printing, primarily operating through its U.S. and International segments, with the majority of revenue generated from the U.S. market.
Performance and Challenges
The third quarter of 2024 marked a significant milestone for Xometry Inc, with record-setting achievements in revenue, gross profit, and marketplace gross margin. The company's marketplace revenue reached $127 million, a 24% increase from the previous year. However, supplier services revenue saw a 10% decline, attributed to the exit of non-core services. Despite these challenges, the company's focus on expanding its buyer and supplier networks and enhancing its AI-driven marketplace has been pivotal in maintaining growth momentum.
Financial Achievements
Xometry Inc's financial performance underscores its strategic initiatives and operational efficiencies. The gross profit for Q3 2024 increased by 21% year-over-year to $55.8 million, with a marketplace gross margin improvement of 250 basis points to 33.6%. The company's Adjusted EBITDA loss narrowed significantly by 85% to $0.6 million, highlighting improved operational leverage.
Key Financial Metrics
Key metrics from the financial statements reveal a comprehensive picture of Xometry Inc's financial health:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Revenue | $141.7 million | $118.9 million | 19% |
| Gross Profit | $55.8 million | $46.2 million | 21% |
| Net Loss | $(10.2) million | $(12.0) million | 15% |
| Adjusted EBITDA | $(0.6) million | $(4.2) million | 85% |
Analysis and Insights
Xometry Inc's performance in Q3 2024 reflects its strategic focus on leveraging AI technology and expanding its global supplier network. The company's ability to achieve record revenues and improve its gross margins is indicative of its competitive positioning in the industrial products sector. The reduction in net loss and improvement in Adjusted EBITDA highlight effective cost management and operational efficiencies.
“Q3 2024 represented another record-setting quarter for our company. Powered by our AI-driven marketplace, we achieved record revenues, record gross profit and record marketplace gross margin while capturing additional market share globally,” said Randy Altschuler, Xometry’s CEO.
Looking ahead, Xometry Inc's growth initiatives, including international expansion and enhanced supplier services, are expected to further strengthen its market presence and financial performance. The company's strategic partnerships and technological advancements position it well to capitalize on emerging opportunities in the manufacturing industry.
Explore the complete 8-K earnings release (here) from Xometry Inc for further details.
