Xometry Inc (XMTR, Financial) experienced significant share price movement today, climbing 17.72% to $25.97. This surge came in response to the company’s impressive third-quarter 2024 financial results which exceeded market expectations.
Xometry reported third-quarter revenue of $142 million, representing a 19% increase year-over-year and surpassing the company’s highest guidance of $138 million. This strong performance helped bolster investor confidence, resulting in a notable uptick in the stock price.
For the upcoming fourth quarter, Xometry anticipates a 14% year-over-year revenue growth. While this is a decrease from the previous year's 31% growth, investor sentiment remains positive due to the company's trajectory towards profitability, especially with expectations of achieving positive adjusted EBITDA for the first time in Q4.
Further strengthening its financial position, Xometry has improved its gross margin in its marketplace business and increased its number of active buyers by 24% year-over-year, reaching nearly 65,000 users. This growth highlights Xometry’s successful expansion and optimization of its business model.
From a valuation perspective, Xometry’s GF Value is assessed as "Modestly Undervalued" with a GF Value of $35.94, indicating potential opportunities for investors. More information can be found on the GF Value page.
Despite facing an Altman Z-score of 2.07, placing it in the 'grey' area indicating some financial stress, the company’s Beneish M-Score of -2.42 suggests it is unlikely to be involved in any financial manipulation. These metrics should be monitored as the company moves towards achieving profitability.
As Xometry continues to leverage its AI-enabled manufacturing platform to attract engineers, product designers, and procurement professionals, it is well-positioned to capitalize on the increasing demand within the specialty industrial machinery sector. With a market capitalization of $1.28 billion and a Price-to-Book ratio of 4.03, Xometry remains a compelling prospect for growth-oriented investors.
