Xometry Inc (XMTR) Reports Q3 2023 Earnings: Marketplace Growth Drives Revenue Increase
Q3 revenue rose by 15% year-over-year, with marketplace revenue up by 22%.
Gross profit increased by 13% year-over-year, driven by marketplace performance.
Adjusted EBITDA loss improved by $4.4 million quarter-over-quarter.
Q4 revenue expected to grow by 28%-32% year-over-year, with marketplace growth in the 40% range.
On November 9, 2023, Xometry Inc (NASDAQ:XMTR) released its third-quarter earnings, showcasing a year-over-year revenue increase of 15% to $119 million, attributed to a robust 22% growth in its marketplace revenue. The company's gross profit also saw a 13% rise, driven by a 25% growth in marketplace gross profit. The marketplace gross margin expanded by 70 basis points to 31.1%. Despite these gains, Xometry reported an adjusted EBITDA loss of $4.2 million for the quarter, which still marked a significant $4.4 million improvement from the previous quarter. The company anticipates a strong fourth quarter with revenue growth projected between 28% and 32%, reaching $126-$130 million, propelled by a 40% year-over-year increase in marketplace growth.
Financial Performance Overview
Xometry's CEO, Randy Altschuler, commented on the results, stating,
In Q3 2023, we had record financial results including our highest revenue and gross profit in Xometry history. Xometry delivered strong 22% marketplace revenue growth year-over-year and significantly improved operating leverage, reducing Q3 Adjusted EBITDA loss by 51% quarter-over-quarter, well ahead of expectations."
The company's marketplace Active Buyers surged by 43% year-over-year, with a record addition of 4,173 new Active Buyers. However, Active Paying Suppliers saw a slight decrease of 2% from the previous year, primarily due to the discontinuation of the sale of tools and materials.
Strategic Developments and Partnerships
Xometry's strategic moves in the quarter included a partnership with Google Cloud to enhance its AI-powered Instant Quoting Engine and the launch of Xometry Teamspace, a cloud-based collaboration tool. These initiatives are expected to streamline operations and expand the company's market share. Additionally, Xometry added new certifications and expanded international offerings to cater to a broader customer base.
Balance Sheet and Cash Flow Highlights
As of September 30, 2023, Xometry's balance sheet reflected $276.8 million in cash, cash equivalents, and marketable securities. The net loss attributable to common stockholders was $12.0 million for the quarter, a year-over-year decrease of $3.0 million. The net loss included $5.7 million of stock-based compensation and $2.5 million of depreciation and amortization expense.
Outlook for Q4 2023
Looking ahead, Xometry expects to continue its growth trajectory in Q4 2023, with revenue expected to grow significantly year-over-year. The company's focus on AI and marketplace functionality enhancements, along with strategic partnerships, are poised to drive further growth and market share expansion.
Xometry's detailed financial statements and reconciliations of non-GAAP financial measures are available in the earnings release, providing investors with a comprehensive view of the company's financial health and operational performance.
For more detailed information about Xometry Inc (NASDAQ:XMTR)'s financial results, please visit www.xometry.com or follow the company's updates on their investor relations page.
Explore the complete 8-K earnings release (here) from Xometry Inc for further details.
This article first appeared on GuruFocus.
