8-K: Xometry Reports Record Q4 Revenue and Positive Adjusted EBITDA, Full Year 2024 Shows Significant Improvement

Xometry's Q4 2024 results showcase a 16% year-over-year revenue increase to $149 million, driven by marketplace growth and improved profitability.

Summary

• Xometry reported its fourth quarter and full year 2024 financial results.
• Q4 revenue reached a record $149 million, a 16% increase year-over-year, driven by 20% marketplace growth.
• Q4 gross profit also hit a record $59.0 million, up 20% year-over-year.
• Marketplace gross profit increased by 32% year-over-year, with a gross margin of 34.5%, a 320 basis point increase.
• Adjusted EBITDA for Q4 was a profit of $1.0 million, a $3.9 million improvement year-over-year.
• For the full year 2024, marketplace revenue was $486 million, a 23% increase year-over-year.
• The net loss attributable to common stockholders for the full year was $50.4 million, a decrease of $17.1 million year-over-year.
• Adjusted EBITDA for the full year was a loss of $9.7 million, an improvement of $17.8 million year-over-year.
• Xometry expects Q1 2025 revenue between $147 and $149 million, representing 20-21% growth year-over-year.
• The company anticipates an Adjusted EBITDA loss of approximately $1.5 million for Q1 2025.
• For the full year 2025, Xometry expects revenue growth to exceed 2024 and to be Adjusted EBITDA positive.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong growth in key metrics and a path to profitability. The achievement of positive Adjusted EBITDA in Q4 is a significant milestone, and the guidance for 2025 is encouraging.

Positives

• Record Q4 revenue of $149 million, a 16% increase year-over-year.
• Significant improvement in Adjusted EBITDA, reaching a profit of $1.0 million in Q4.
• Increase in Marketplace Active Buyers by 23% year-over-year.
• Growth in Accounts with Last Twelve-Months Spend of at Least $50,000 by 12% year-over-year.
• Full year 2024 shows a substantial reduction in net loss and improvement in Adjusted EBITDA compared to 2023.
• Positive outlook for 2025, with expected revenue growth and Adjusted EBITDA profitability.
• Cash, cash equivalents and marketable securities were $240 million as of December 31, 2024, an increase of $5.8 million from September 30, 2024.

Negatives

• Supplier services revenue decreased by 13% year-over-year in both Q4 and full year 2024, due to the exit of non-core services.
• Net loss attributable to common stockholders for the full year 2024 was $50.4 million.
• Adjusted EBITDA for the full year 2024 was still a loss of $9.7 million.
• Xometry expects an Adjusted EBITDA loss of approximately $1.5 million for Q1 2025.

Risks

• The company's financial outlook is based on assumptions that are subject to change and outside of its control.
• Fluctuations in macroeconomic conditions, such as inflation and rising interest rates, could impact performance.
• Competition in the manufacturing marketplace could affect Xometry's ability to attract buyers and sellers.
• The company's limited operating history makes it challenging to forecast future performance accurately.

Future Outlook

Xometry expects Q1 2025 revenue between $147 and $149 million, representing 20-21% growth year-over-year, with an Adjusted EBITDA loss of approximately $1.5 million. For the full year 2025, the company expects revenue growth to exceed 2024 and to be Adjusted EBITDA positive.

Management Comments

• Randy Altschuler, Xometry's CEO, stated that their AI-powered marketplace continues to gain share and deliver record financial results.
• James Miln, Xometry's CFO, highlighted the strong marketplace revenue growth, operating leverage, and positive Adjusted EBITDA in Q4.

Industry Context

Xometry's results reflect the ongoing digitization of the manufacturing industry and the increasing reliance on online marketplaces for supply chain solutions. The company's focus on AI and expanding its supplier network aligns with industry trends towards automation and global sourcing.

Comparison to Industry Standards

• Comparing Xometry to similar online manufacturing marketplaces like Fictiv or Protolabs, Xometry's growth rate and focus on AI-driven solutions appear competitive.
• Protolabs, a more established player, has a broader range of manufacturing services but Xometry is growing faster.
• The positive Adjusted EBITDA in Q4 is a significant milestone, as many growth-focused tech companies in the manufacturing space are still operating at a loss.
• Xometry's marketplace gross margin of 34.5% is strong compared to traditional manufacturing companies, but in line with other tech-enabled marketplaces.

Stakeholder Impact

• Shareholders will likely react positively to the improved financial performance and positive outlook.
• Suppliers will benefit from the expanding marketplace and enhanced services.
• Buyers will gain access to a wider range of manufacturing options and improved supply chain resilience.
• Employees may experience increased job security and growth opportunities due to the company's positive trajectory.

Next Steps

• Xometry will focus on driving global growth, scale, and operating excellence in 2025.
• The company will continue to expand its buyer and supplier networks.
• Xometry plans to drive deeper enterprise engagement.
• The company aims to further expand the marketplace menu.
• Xometry will continue to grow internationally and enhance supplier services.

Key Dates

Keywords

Xometry, manufacturing, marketplace, revenue, Adjusted EBITDA, financial results, AI, suppliers, buyers