Summary

• Xometry is an AI-powered marketplace, popular Thomasnet industrial sourcing platform, and suite of cloud-based services that are rapidly digitizing the $2.4 trillion manufacturing industry.
• They provide manufacturers with the critical resources they need to grow their business and make it easy for buyers to access global manufacturing capacity and create locally resilient supply chains.
• They offer sourcing and pricing across a network of buyers and suppliers, providing a suite of configurable manufacturing processes through their diverse supplier network. Xometry offers these tailored processes through a user-centric platform that is reliable and flexible, leveraging additional products and services to increase buyer and seller engagement over time.
• In 2022, the company experienced significant growth in sales, with total sales reaching $381 million. This marked an increase of $162.66 million or 74.8% compared to the sales figure of $218.34 million in 2021.
• The company's gross profit for 2022 amounted to $147.55 million, reflecting a substantial difference of $90.55 million or 156.9% from the gross profit of $57 million in the previous year, 2021.
• Additionally, the company's operating profit decreased in 2022, totaling $-73 million, which was lower by $14.31 million or 24.4% compared to the operating profit of $-58.69 million in 2021.
• The net profit for the year 2022 was $-76 million, representing a decrease of $15 million or 24.6% compared to the net profit of $-61 million in 2021.
• Moreover, the diluted earnings per share (EPS) for 2022 were reported as $-1.62, which showed an increase of $0.71 or 30.5% compared to the diluted EPS of $-2.33 in 2021.

Brief Company Overview

Xometry, Inc. (NASDAQ: XMTR) is an AI-powered marketplace, popular Thomasnet industrial sourcing platform, and suite of cloud-based services that are rapidly digitizing the $2.4 trillion manufacturing industry. They provide manufacturers with the critical resources they need to grow their business and make it easy for buyers to access global manufacturing capacity and create locally resilient supply chains. The Xometry Instant Quoting Engine leverages millions of pieces of data to quickly and effectively analyze complex parts in real-time, match buyers with the right suppliers globally, and provide accurate pricing and lead times. Through its extensible marketplace, Xometry continuously scales its offerings, delivering an ever-expanding menu of manufacturing capabilities.

They offer sourcing and pricing across a network of buyers and suppliers, providing a suite of configurable manufacturing processes through their diverse supplier network. Additionally, Xometry enables business success through additional products and services tailored to the unique needs of each side of their marketplace. Their platform is AI-driven, continuously learning from millions of data inputs from marketplace interactions, providing rich insights and analytics that allow for further improvement of the efficiency of their ecosystem and the products and services they offer. Xometry offers these tailored processes through a user-centric platform that is reliable and flexible, leveraging additional products and services to increase buyer and seller engagement over time.

As of December 2023, the company had a 52-week share price range of $38.74 to $12.45. The forwarding P/E ratio of the company is 136.99 times, the price-to-sales ratio (ttm) is 3.73 times, the profit margin is -18.77%, the operating margin is -10.97%, the return on assets (ttm) is -6.92%, the return on equity is -22.29%, and the diluted earnings per share (ttm) is $-1.70. The aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant, based on the closing price of the shares of common stock as reported by The Nasdaq Global Select Market on June 30, 2022 was $1.2 billion. The number of shares of Registrant’s Class A common stock outstanding as of March 9, 2023 was 45,070,484.

Recent Developments

• Xometry announced a partnership with Google Cloud to help accelerate new auto-quote methods and models within its AI-powered Instant Quoting Engine. Utilizing Vertex AI, Xometry aims to expedite the deployment of its instant-quoting to encompass the broadest and most comprehensive set of manufacturing technologies. The Vertex AI platform will enable Xometry to bring new offerings to market faster in entirely new categories, thereby enhancing its indispensability to customers and suppliers globally.¹
• In October, 2023, Xometry launched Xometry Teamspace following a successful beta test with several large customers in Q3 of 2023. Teamspace is a cloud-based collaboration tool that enables employees at the same company to manage projects within Xometry’s AI-powered platform. Serving as a crucial addition to Xometry’s online marketplace, Teamspace facilitates streamlined order management, enhances efficiency, and promotes data-based decision-making. Since its launch, over 300 teams have been created on the platform.²

Recent Financing Activities

• Xometry announces the pricing of a $250 million offering of Convertible Senior Notes. The Notes will be general unsecured obligations of Xometry and will accrue interest payable semiannually in arrears on February 1 and August 1 of each year, commencing on August 1, 2022, at a rate of 1.00% per year. The Notes are set to mature on February 1, 2027, unless earlier converted, redeemed, or repurchased.³

Financial Performance Highlights

Q3 2023 Highlights

In the third quarter of 2023, the company reported sales of $118.93 million, reflecting an increase of $23.33 million or 24.4% compared to the third quarter of 2022, which had sales of $95.6 million. The net profit for the third quarter of 2023 was $-12 million, showing a increase of $4.6 million or 27.7% when compared to the net profit of $-16.6 million in the third quarter of 2022. Furthermore, the company's diluted earnings per share (EPS) for the third quarter of 2023 increased to $-0.25, a positive change of $0.077 or 23.5% compared to the diluted EPS of $-0.327 in the third quarter of 2022.

1. ^ https://www.tipranks.com/news/the-fly/xometry-leverages-google-cloud-to-accelerate-digitization-of-manufacturing
2. ^ https://www.globenewswire.com/news-release/2023/10/24/2765515/0/en/Xometry-Integrates-Teamspace-Collaboration-Tool-Into-Its-AI-Powered-Marketplace.html
3. ^ https://investors.xometry.com/news-releases/news-release-details/xometry-announces-pricing-250-million-offering-convertible#:~:text=The%20Notes%20will%20be%20general,earlier%20converted%2C%20redeemed%20or%20repurchased.