DEF: Xometry Reports Record-Setting Year in 2024, Fueled by Marketplace Growth and Strategic Initiatives

Xometry achieved record revenue in 2024, driven by strong marketplace performance and strategic initiatives, reaching Adjusted EBITDA profitability in Q4.

Summary

• Xometry had a record-setting year in 2024, with strong performance in its marketplace business.
• The company's revenue grew 18% year-over-year to $546 million.
• Marketplace revenue increased by 23%.
• Adjusted EBITDA profitability was achieved in Q4 2024.
• Marketplace gross margin expanded by 270 basis points to 33.5%, resulting in 34% growth in marketplace gross profit.
• Active Buyers grew 23% to over 68,000, and Active Suppliers increased 28% to 4,375.
• International revenue grew 48% to $89 million, representing 18% of total marketplace revenue.
• The company expects to launch a new ad-serving technology in 2025 to improve advertising performance and monetization.

Sentiment

Score: 8

Explanation: The document presents a positive outlook, highlighting record revenue, marketplace growth, and strategic initiatives. The achievement of Adjusted EBITDA profitability and expansion of gross margins contribute to a strong sentiment.

Positives

• Xometry achieved Adjusted EBITDA profitability in Q4 2024.
• Marketplace gross margin improved significantly.
• The company is expanding its global network of buyers and suppliers.
• Enterprise customer engagement is deepening, leading to robust revenue growth.
• International presence is scaling rapidly.
• Supplier services and monetization are being enhanced.

Negatives

• Net loss attributable to common stockholders was $(50.4) million for 2024, although this is an improvement year-over-year.
• Adjusted EBITDA loss was $(9.7) million for 2024, although this is an improvement year-over-year.

Risks

• The company operates in a complex and fast-changing global environment.
• Geopolitical uncertainty and tariffs could impact the business.
• The company faces competition in the manufacturing industry.
• The company's future performance depends on its ability to execute its strategic initiatives.

Future Outlook

The company expects Europe to lead near-term international growth, with APAC emerging as a key long-term contributor, and believes international can represent 30-40% of marketplace revenue long term. They also expect to launch a new ad-serving technology in 2025.

Management Comments

• 2024 was a record-setting year for Xometry, fueled by strong execution across our long-term growth drivers and continued momentum in our marketplace businessboth in the U.S. and internationally.
• We are gaining market share, and we remain confident that the following initiatives fueling our long-term growth and improving profitability.
• Xometry was built for this moment.
• We are energized by the road ahead and confident in our ability to create even greater value for our customers, our partners, and our stockholders in the years to come.

Industry Context

Xometry is positioning itself as a comprehensive digital destination for custom manufacturing, leveraging AI and a global supplier network to provide buyers with real-time access to manufacturing capacity and build more agile and resilient supply chains.

Comparison to Industry Standards

• The document mentions several peer companies, including 3D Systems Corporation, Proto Labs, Inc., and Stratasys Ltd., suggesting that Xometry benchmarks its performance and compensation against these firms.
• The document states that at the time of peer group selection, Xometry's consensus estimate for next twelve months revenue approximated the 30th percentile of the peer group, while its one-year average market capitalization approximated the 45th percentile.

Management Changes

Related Party Transactions

• Laurence Zuriff, our Co-Founder and a former member of our board of directors, is currently employed as Managing Director of our Donor Advised Fund.
• For the year ended December 31, 2024, Mr. Zuriff earned $247,047 in aggregate compensation, consisting of base salary and equity compensation.

Stakeholder Impact

• The company's performance and strategic initiatives are expected to create greater value for customers, partners, and stockholders.
• The company's platform has generated nearly $1 billion in revenue for Americas smalland medium-sized manufacturers, underscoring our role in strengthening the industrial backbone of the economy while creating opportunity at scale.

Next Steps

• The company will hold its 2025 Annual Meeting of Stockholders on June 18, 2025.
• The company expects to launch a new ad-serving technology in 2025.
• The company plans to add additional processes, finishes, and materials to its marketplace menu in 2025.

Key Dates

Keywords

manufacturing, marketplace, revenue, EBITDA, suppliers, buyers, international, AI, Thomasnet, growth