Core Insights - Xometry has achieved Cybersecurity Maturity Model Certification (CMMC Level 2), becoming one of the first companies in any industry to meet these stringent cybersecurity standards set by the U.S. Department of Defense [1][2][4] Company Overview - Xometry operates an AI-powered marketplace that connects enterprise buyers with suppliers of manufacturing services, playing a crucial role in the digital transformation of the manufacturing industry [6][7] - The company offers a range of services including a digital marketplace, the Thomasnet industrial sourcing platform, and cloud-based project management tools [6][7] Cybersecurity Compliance - The CMMC framework mandates that contractors working with the Department of Defense must comply with strict cybersecurity requirements to protect Controlled Unclassified Information (CUI) and undergo audits by Certified Third-Party Assessor Organizations (C3PAO) [2][4] - Xometry received a perfect score during the audit, highlighting its commitment to data protection and cybersecurity [2][3] Industry Leadership - The certification reinforces Xometry's position as a trusted partner for aerospace companies and defense agencies, emphasizing the importance of protecting sensitive information in maintaining customer trust and national security [3][4]

NORTH BETHESDA, Md., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Xometry, Inc. (NASDAQ:XMTR), the global AI-powered marketplace connecting buyers with suppliers of manufacturing services, today announced it is participating in the Citizens JMP Technology Conference on Tuesday March 4, 2025. About Xometry Xometry’s (NASDAQ:XMTR) AI-powered marketplace, popular Thomasnet® industrial sourcing platform and suite of cloud-based services are rapidly digitizing the manufacturing industry. Xometry provides manufacturers the ...

Company Performance - Xometry (NASDAQ: XMTR) showed steady progress in Q4 2024 with solid marketplace growth and improved margins despite a significant stock price decline in recent weeks [1] Investment Strategy - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations due to poor long-term business prospects, aiming for excess risk-adjusted returns through secular growth opportunities in markets with entry barriers [1] - The research process emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon targeting deeply undervalued stocks [1] Market Trends - An aging population with low growth and stagnating productivity is expected to create new investment opportunities, contrasting with past trends [1] - Many industries may face stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] - The economy is increasingly influenced by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1] Leadership Background - Richard Durant holds undergraduate degrees in engineering and finance from the University of Adelaide and an MBA from Nanyang Technological University, along with having passed the CFA exams [1]

Financial Data and Key Metrics Changes - In Q4 2024, revenue increased 16% year-over-year to a record $149 million, with marketplace revenue growing 20% year-over-year to $135 million [11][32] - Adjusted EBITDA was $1 million, a $3.9 million improvement year-over-year, marking a significant milestone towards profitability [16][40] - Q4 gross profit increased 20% year-over-year to $59 million, with a gross margin of 39.7% [36] Business Line Data and Key Metrics Changes - Marketplace revenue per active buyer decreased 3% year-over-year but increased 1% quarter-over-quarter [33] - Supplier services revenue declined 13% year-over-year, primarily due to the wind down of non-core services [36] - Active buyers increased 23% year-over-year to 68,267, with net additions of 3,416 in Q4, the highest for 2024 [11][33] Market Data and Key Metrics Changes - International revenue grew 42% year-over-year, reaching a $100 million run rate, representing 18% of total marketplace revenue [12][25] - The number of active suppliers increased by 28% year-over-year to 4,375 manufacturers [15] Company Strategy and Development Direction - The company aims to be the global marketplace for the $2 trillion custom manufacturing market, focusing on expanding buyer and supplier networks and enhancing customer segmentation through AI [17][18] - Plans for 2025 include deeper enterprise engagement, expanding the marketplace menu, and growing internationally, particularly in APAC [24][25][48] - The company is investing in technology to improve supplier services and enhance the advertising platform for better monetization [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong growth and scale in 2025, despite a challenging manufacturing environment [10][28] - The company anticipates total revenue growth year-over-year to accelerate to 20% to 21% in Q1 2025 [45] - Management highlighted the importance of their AI-driven model in optimizing pricing and improving gross margins [15][29] Other Important Information - The company expects supplier services revenue to decline by approximately 5% to 10% year-over-year in 2025 [49] - Cash and cash equivalents increased to $240 million, driven by positive adjusted EBITDA and improved working capital efficiency [42] Q&A Session Summary Question: How should we think about the pathway to international revenue growth? - Management expects international revenue to represent 30% to 40% of marketplace revenue, with strong growth in EMEA and early-stage growth in APAC [55][56] Question: Can you elaborate on multimodal AI and its impact on the buyer process? - The transition to a multimodal model will allow customers to upload various file types for instant quotes, enhancing customer experience and profitability [57][58] Question: What is the current state of the manufacturing environment and its impact on your business? - Management noted increasing success in the enterprise segment and a push for safety among customers in a volatile environment [61][62] Question: How is the global sourcing strategy impacting Q1 guidance? - The acceleration of global sourcing is expected to dampen gross margins temporarily in Q1, but management is confident in long-term improvements [66][67] Question: Can you provide insights on order growth in Q4 and 2024? - Management reported a record number of active buyers and strong growth in orders, particularly in the enterprise segment [74][76] Question: What is the relationship between Thomas and the legacy business? - Management indicated a focus on integrating the new ad server technology for Thomas, with plans for future synergies with Xometry's platform [82] Question: How are buyers adapting to the changing tariff landscape? - Customers are increasingly looking to mitigate risk by diversifying sourcing geographies, which aligns well with Xometry's flexible marketplace model [100][109]

Financial Performance - The company incurred a net loss of $50.4 million in 2024, resulting in an accumulated deficit of $370.3 million as of December 31, 2024[81]. - Revenue for the years ended December 31, 2024, 2023, and 2022 was $545.5 million, $463.4 million, and $380.9 million, respectively, indicating a growth trend but potential future fluctuations[82]. - The company expects revenue growth rates to fluctuate and may decline in the long term due to various market factors and competition[82]. - Quarterly operating results have historically fluctuated, making future performance difficult to predict[84]. - The company has approximately $250.8 million in net operating loss (NOL) carryforwards available to reduce future income subject to income taxes[195]. - The company had $239.8 million in cash and cash equivalents and marketable securities as of December 31, 2024, which is expected to meet anticipated cash needs for at least twelve months[215]. - The company is materially reliant on revenue from targeted advertising, which is becoming increasingly difficult due to changes in data collection practices and regulations[149]. - The company may require additional capital for growth, which might not be available on acceptable terms, potentially harming business operations[213]. Market and Competition - The company faces significant competition and must continuously adapt to technological changes to remain attractive to buyers and suppliers[90]. - The company faces significant competition in the manufacturing market, which is highly fragmented, and competitors may have greater resources and capabilities[124][125]. - International expansion is crucial for growth, but it involves increased legal and compliance costs and management challenges[127][128]. - The ongoing conflict in Ukraine and geopolitical instability could negatively impact the company's ability to expand operations internationally and generate revenues[132]. Operational Risks - The company relies on a large community of buyers and suppliers for revenue, and any loss or failure to attract new participants could adversely affect financial performance[87]. - The company relies on third-party payment processors and fulfillment partners, which introduces additional risks to operations[79]. - Economic conditions, including inflation and potential recessions, could have serious adverse effects on the company's financial condition and share price[79]. - The company relies on third-party service providers for critical business systems, which may expose it to additional security risks[104]. - The company relies on third-party service providers for compliance services, and inadequate performance could lead to increased expenses and legal liabilities[113]. - The company is exposed to risks from potential acquisitions, including integration challenges and unanticipated liabilities[186]. Compliance and Regulatory Environment - The company is subject to evolving laws and regulations regarding consumer data privacy, which could impact operations and compliance costs[79]. - The company has adopted policies to ensure compliance with laws, including anti-corruption and anti-money laundering, but effectiveness may vary as marketplace visibility increases[111]. - The company is subject to stringent data privacy laws, including the EU GDPR, which could lead to significant financial penalties for noncompliance[141]. - The California Consumer Privacy Act allows for fines of up to $7,500 per intentional violation, impacting operational costs and compliance efforts[144]. - The company faces potential adverse consequences from failing to comply with data privacy obligations, including governmental enforcement actions and class-action litigation[151]. - The company is subject to increased regulatory scrutiny, particularly regarding dealings with independent contractors, which may lead to conflicting obligations across jurisdictions[162]. Technology and Cybersecurity - The platform relies on an AI-enabled instant quoting engine, and any discrepancies in pricing or lead times could adversely affect business operations[96]. - Cybersecurity threats are a significant concern, with potential risks including data breaches and operational disruptions[100]. - The use of generative AI technologies poses risks of sensitive information leaks and potential inaccuracies in decision-making[110]. - The company’s reliance on third parties for IT systems and communications increases vulnerability to disruptions beyond its control[138]. - Cybersecurity risks pose a threat to the company's intellectual property rights, with potential for significant adverse effects on business operations[178]. Intellectual Property - Intellectual property rights are vital for the company's competitive advantage, and failure to protect these rights could adversely affect its market position and profitability[169]. - The company may incur substantial costs in litigation to enforce its intellectual property rights, which could distract management and impact financial performance[175]. - Claims of intellectual property infringement could lead to significant costs and adversely affect the company's business operations, regardless of the claims' merit[180]. - The company must navigate complex international laws regarding intellectual property, which may not provide the same level of protection as U.S. laws[177]. Human Resources - The company relies on talented employees for growth, and failure to retain or attract skilled personnel could hinder business development[192]. Financial Structure and Stock - The dual-class structure of common stock allows the CEO to significantly influence shareholder decisions, which may limit other shareholders' influence[216]. - The company may issue additional capital stock in the future, leading to dilution of existing shareholders' ownership interests[210]. - The stock price may be volatile due to various factors, including market conditions and company performance, which could lead to significant fluctuations[209]. - The company has previously failed to meet publicly announced guidance, which could result in a decline in stock price if future results do not align with expectations[211]. Legal and Compliance Costs - The company is subject to increased legal, accounting, and financial compliance costs due to the requirements of the Sarbanes-Oxley Act and other regulations[238]. - If the company fails to maintain effective internal controls, it may result in restatements of financial statements and loss of investor confidence[241].

Xometry, Inc. (NASDAQ:XMTR) Q4 2024 Results Conference Call February 25, 2025 8:30 AM ET Company Participants Shawn Milne - Vice President of Investor Relations Randy Altschuler - Chief Executive Officer James Miln - Chief Financial Officer Conference Call Participants Eric Sheridan - Goldman Sachs Cory Carpenter - JPMorgan Brian Drab - William Blair Ron Josey - Citi Matt Swanson - RBC Greg Palm - Craig Hallum Josh Chan - UBS Operator Good day, and thank you for standing by. Welcome to the Xometry, Inc. Q4 ...

Core Viewpoint - Xometry reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, and showing a significant improvement from a loss of $0.01 per share a year ago, indicating a strong earnings surprise of 100% [1] Financial Performance - The company achieved revenues of $148.55 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.53%, and reflecting a year-over-year increase from $128.15 million [2] - Over the last four quarters, Xometry has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - Xometry shares have declined approximately 26.6% since the beginning of the year, contrasting with the S&P 500's gain of 1.7% [3] - The future performance of Xometry's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $151.46 million, and for the current fiscal year, it is $0.29 on revenues of $649.06 million [7] - The estimate revisions trend for Xometry is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Manufacturing - General Industrial industry, to which Xometry belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Revenue Growth - Q4 2024 revenue increased 16% year-over-year to a record $149 million, driven by marketplace growth of 20% year-over-year[5]. - Full year 2024 marketplace revenue was $486 million, an increase of 23% year-over-year[10]. - For Q1 2025, the company expects revenue of $147-$149 million, representing 20-21% growth year-over-year[14][15]. - Revenue for Q4 2024 was $148.546 million, a 15.9% increase from $128.145 million in Q4 2023[38]. - U.S. segment revenue was $123.6 million, up 11.8% from $110.6 million in the same quarter last year[49]. - International segment revenue increased by 42.1% to $24.9 million from $17.6 million year-over-year[49]. Profitability and Loss - Adjusted EBITDA for Q4 2024 was a profit of $1.0 million, reflecting an improvement of $3.9 million year-over-year[6][11]. - Non-GAAP net income for Q4 2024 was $3.2 million, compared to a Non-GAAP net loss of $0.4 million in Q4 2023[6][11]. - Net loss for Q4 2024 was $9.896 million, compared to a net loss of $10.553 million in Q4 2023, showing a 6.2% improvement[38]. - The company reported a comprehensive loss of $11.499 million for Q4 2024, compared to a loss of $10.446 million in Q4 2023[38]. - Non-GAAP EPS for Q4 2024 was $0.06, compared to a loss of $0.01 in Q4 2023[47]. Operating Expenses - Total operating expenses for Q4 2024 were $70.542 million, an increase from $61.624 million in Q4 2023, reflecting a 14.8% rise[38]. - Total cost of revenue for Q4 2024 was $89.5 million, compared to $79.1 million in Q4 2023, reflecting a 13.5% increase[49]. - Total stock-based compensation expense for the year 2024 was $30.3 million, up from $22.1 million in 2023, representing a 37.1% increase[51]. - The company recorded a total depreciation and amortization expense of $13.0 million for the year 2024, compared to $10.7 million in 2023, a 21.5% increase[51]. Active Users and Suppliers - Marketplace Active Buyers grew 23% year-over-year from 55,325 to 68,267 as of December 31, 2024[6][12]. - The number of Active Suppliers increased 28% year-over-year from 3,429 to 4,375[10]. - Active Buyers are defined as individuals who have made at least one purchase in the last twelve months, indicating a focus on user engagement[21]. - Active Suppliers are those who have utilized the platform at least once in the last twelve months, emphasizing supplier participation[22]. Financial Position - Total current assets decreased from $356,231 thousand in 2023 to $327,540 thousand in 2024, a decline of approximately 8.0%[36]. - Cash and cash equivalents dropped significantly from $53,424 thousand in 2023 to $22,232 thousand in 2024, a decrease of about 58.5%[36]. - Accounts receivable increased from $70,102 thousand in 2023 to $73,962 thousand in 2024, reflecting a growth of approximately 4.0%[36]. - Total liabilities decreased from $376,968 thousand in 2023 to $364,533 thousand in 2024, a reduction of about 3.3%[36]. - Stockholders' equity declined from $330,419 thousand in 2023 to $315,596 thousand in 2024, a decrease of approximately 4.5%[36]. Future Outlook - For FY 2025, the company expects marketplace revenue growth of at least 20% year-over-year[15]. - The Company plans to host a conference call on February 25, 2025, to discuss Q4 and full year 2024 financial results, indicating ongoing communication with investors[32]. Financial Metrics and Adjustments - Non-GAAP net income (loss) is adjusted for various non-recurring items, providing a clearer view of operational performance[28]. - The Company emphasizes the importance of reviewing financial information in its entirety rather than relying on a single financial measure, highlighting a comprehensive approach to financial analysis[19]. - Adjusted EBITDA for Q4 2024 was $1.049 million, compared to a loss of $2.850 million in Q4 2023[43]. - The U.S. segment reported an Adjusted EBITDA of $4.0 million for Q4 2024, a significant recovery from a loss of $0.8 million in Q4 2023[49]. - International segment Adjusted EBITDA showed a loss of $2.9 million for Q4 2024, compared to a loss of $2.1 million in Q4 2023[49].

Q4 revenue increased 16% year-over-year to a record $149 million driven by marketplace growth of 20% year-over-year. Q4 gross profit increased 20% year-over-year to a record $59.0 million.Q4 marketplace gross profit increased 32% year-over-year driven by our AI technology and expanding supplier network. Q4 marketplace gross margin increased 320 basis points year-over-year to a record 34.5%.Q4 Adjusted EBITDA improved $3.9 million year-over-year to a profit of $1.0 million.Growth initiatives include: expandi ...

Core Insights - Xometry, Inc. will report its fourth quarter and full year 2024 financial results on February 25, 2025, before market opens [1] - A conference call and webcast will be held at 8:30 a.m. Eastern Time on the same day to discuss the results [2][3] - An earnings presentation will be available on Xometry's investor website [2][4] Company Overview - Xometry operates an AI-powered marketplace that connects enterprise buyers with suppliers of manufacturing services, aiming to digitize the manufacturing industry [5] - The company offers a suite of cloud-based services and utilizes the Xometry Instant Quoting Engine to provide real-time analysis and accurate pricing for complex parts [5]