Summary of Xometry Conference Call Company Overview - **Company**: Xometry (NasdaqGS: XMTR) - **Industry**: Custom Manufacturing Marketplace - **Business Model**: AI-powered marketplace connecting buyers and suppliers in a fragmented industry Key Points and Arguments Marketplace Dynamics - Xometry operates an AI-powered marketplace for custom manufacturing, addressing a historically offline and fragmented industry with hundreds of thousands of small manufacturers and millions of buyers [2][3] - The platform provides buyers with instant pricing, visibility into manufacturing options, and resilient supply chains, significantly reducing the time to obtain quotes from days or weeks to seconds [3][4] - Suppliers can join the marketplace at no cost, gaining access to a broader customer base without the burden of sales and marketing [5] Growth and Market Trends - Despite macroeconomic headwinds, Xometry has experienced accelerated growth, gaining market share by offering better value propositions compared to traditional methods [9][10] - The enterprise segment has shown significant traction, with a focus on integrating with customers' procurement platforms and enhancing the sales strategy to target larger accounts [13][15][19] - In 2024, Xometry reported 1,700 accounts with over $50,000 spent, up from 100 accounts with over $500,000 spent the previous year, indicating strong growth in enterprise customers [16] Financial Performance - Xometry expects marketplace growth of 27-28% for the full year 2025, driven by success across all segments and product initiatives [23][26] - The company achieved a gross profit margin of 35.7%, with gross profit dollars growing 40% year-over-year, and an adjusted EBITDA margin of 21% year-to-date [36] International Expansion - Xometry's international business has grown from $3 million in 2020 to a $120 million run rate, outpacing U.S. growth [40][42] - The company aims for 30-40% of marketplace revenue to come from international markets, leveraging technology developed in the U.S. for global expansion [39][40] Product Innovation and Customer Experience - Xometry has invested in product innovation, including the launch of the Work Center Mobile app to enhance supplier communication and job visibility [31][34] - The company is focused on personalizing the customer experience through data science and machine learning, aiming to become the preferred marketplace for customized parts [30][31] Advertising and Cross-Pollination Opportunities - The acquisition of ThomasNet presents a unique opportunity for advertising and cross-pollination within the Xometry ecosystem, enhancing the customer experience and supplier visibility [49][51] Future Outlook - Xometry envisions becoming a $100 billion-plus company, positioning itself as the leader in custom manufacturing by leveraging data, networks, and product innovation [68] Additional Important Insights - The company emphasizes the importance of balancing growth and profitability, with a focus on disciplined capital expenditure and operational efficiency [36][38] - Xometry's marketplace model allows for flexible sourcing across global suppliers, which is particularly advantageous in the context of tariffs and supply chain disruptions [47][48]

Core Insights - Xometry, Inc. has been recognized on the Deloitte Technology Fast 500 list for the sixth consecutive year, highlighting its status as one of the fastest-growing technology companies in North America [1][4]. Company Performance - Xometry achieved a remarkable 150% revenue growth from 2021 to 2024, driven by its AI-powered marketplace, an expanding network of buyers and suppliers, and strong enterprise engagement [2][3]. - The company is on track to generate $1 billion in revenue for small- and medium-sized U.S. manufacturers through its marketplace during the same period [2]. Industry Recognition - The Deloitte Technology Fast 500 ranks companies based on their percentage of fiscal year revenue growth, emphasizing the importance of proprietary technology and intellectual property in driving revenue [4][5]. - To qualify for the Fast 500, companies must have a minimum of $50,000 in base-year operating revenues and at least $5 million in current-year operating revenues, with a growth rate of 50% or greater [5]. Company Overview - Xometry's AI-powered marketplace and cloud-based services are transforming the manufacturing industry by providing essential resources for manufacturers and streamlining procurement processes for buyers [6].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Group 1 - Xometry, Inc. (XMTR) is positioned at the intersection of manufacturing and technology, making it an interesting investment opportunity [1] - The manufacturing sector is identified as a promising area for investment due to its growth potential [1]

Company Performance - Xometry (XMTR) reported strong Q3 results with significant revenue growth and narrowing losses [1] - Guidance for Q4 suggests a moderation in growth, but this may be overly conservative, with expectations for continued growth [1] Investment Strategy - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations due to misinterpretations of long-term business prospects [1] - The firm aims for excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with high barriers to entry [1] - Narweena's investment approach emphasizes company and industry fundamentals to uncover unique insights, with a preference for smaller cap stocks [1] Market Trends - An aging population with low growth and stagnating productivity is expected to create new investment opportunities, differing from past trends [1] - Some industries may experience stagnation or secular decline, potentially improving business performance due to reduced competition [1] - The economy is increasingly influenced by asset-light businesses, leading to a decline in infrastructure investment needs [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia over time [1]

Active Buyers and Revenue Growth - As of September 30, 2025, the number of Active Buyers reached 78,282, representing a 21% increase from 64,851 as of September 30, 2024[158]. - For the quarter ended September 30, 2025, 98% of revenue was generated from existing accounts, indicating strong account retention and revenue predictability[161]. - The number of accounts with Last Twelve-Month Spend of at least $50,000 increased by 14% to 1,724 as of September 30, 2025, up from 1,506 as of September 30, 2024[164]. - Total revenue increased by $39.0 million, or 28%, from $141.7 million for the three months ended September 30, 2024, to $180.7 million for the same period in 2025[195]. - Marketplace revenue increased by $39.6 million, or 31%, from $127.0 million for the three months ended September 30, 2024, to $166.6 million for the same period in 2025, driven by increased buyer activity[195]. - Total revenue increased by $97.3 million, or 24%, from $397.0 million for the nine months ended September 30, 2024, to $494.2 million for the nine months ended September 30, 2025[216]. - Marketplace revenue increased by $99.7 million, or 28%, from $351.4 million for the nine months ended September 30, 2024, to $451.2 million for the nine months ended September 30, 2025, driven by increased buyer activity[216]. Financial Performance and Adjusted EBITDA - Adjusted EBITDA for the three months ended September 30, 2025, was $6.1 million, compared to $(0.6) million for the same quarter in 2024, reflecting improved operational efficiency[168]. - For the nine months ended September 30, 2025, Adjusted EBITDA was $10.1 million, a significant improvement from $(10.7) million for the same period in 2024[169]. - For the three months ended September 30, 2025, Non-GAAP net income was $6.2 million, compared to $1.1 million for the same quarter in 2024, representing an increase of 463%[171]. - For the nine months ended September 30, 2025, Non-GAAP net income was $11.7 million, compared to a Non-GAAP net loss of $(5.2) million for the same period in 2024[172]. - Non-GAAP net income for the nine months ended September 30, 2025, represented 2.4% of revenue, compared to (1.3)% of revenue for the same period in 2024[172]. Operating Expenses and Profitability - Total operating expenses for the three months ended September 30, 2025, were $83.1 million, compared to $67.3 million for the same period in 2024[191]. - Gross profit for the three months ended September 30, 2025, was $72.0 million, compared to $55.8 million for the same period in 2024[191]. - The gross margin for marketplace revenue increased to 35.7% for the three months ended September 30, 2025, from 33.6% for the same period in 2024[194]. - Loss from operations for the three months ended September 30, 2025, was $(11.1) million, compared to $(11.5) million for the same period in 2024[191]. - Total gross margin was 39.2% for the nine months ended September 30, 2025, compared to 39.4% for the same period in 2024[222]. Cash Flow and Financing Activities - For the nine months ended September 30, 2025, net cash provided by operating activities was $1.7 million, compared to a net cash used of $24.5 million in the same period of 2024[262][263]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $6.0 million, primarily due to the purchase of property and equipment of $19.9 million[264]. - Net cash provided by financing activities was $2.5 million for the nine months ended September 30, 2025, resulting from $241.4 million in net proceeds from the issuance of the 2030 Notes[266]. - The company issued $250.0 million of 0.75% Convertible Senior Notes due 2030, with net proceeds of approximately $241.4 million[153]. - The company recorded approximately $17.5 million of net proceeds from the 2030 Notes to pay the cost of the Capped Calls, classified as equity[257]. Workforce and Restructuring - The company initiated restructuring actions in 2025, resulting in a workforce reduction of approximately 5% and incurring $1.5 million in employee termination costs[154]. International Operations and Currency Impact - Approximately 16% of the company's revenues for the nine months ended September 30, 2025, were generated from international operations, primarily in Euros[273]. - If the average exchange rate of Euros changed unfavorably by 10%, revenues for the nine months ended September 30, 2025, would have decreased by 1.3%[273]. Other Financial Metrics - Interest and dividend income decreased by $1.7 million, or 20.5%, from $8.3 million for the nine months ended September 30, 2024, to $6.6 million for the nine months ended September 30, 2025[209]. - General and administrative expense increased by $5.9 million, or 12.4%, from $47.5 million for the nine months ended September 30, 2024, to $53.4 million for the nine months ended September 30, 2025[207]. - Net loss attributable to common stockholders was $53.1 million for the nine months ended September 30, 2025, compared to a net loss of $40.5 million for the same period in 2024[213]. - The company experienced a net decrease in operating assets and liabilities primarily driven by changes in accounts receivable of $23.4 million due to increased sales[262]. - The company did not experience delays in receiving payments from U.S. government agencies during the quarter ended September 30, 2025, but an extended government shutdown could disrupt cash flows[259].

Core Insights - Xometry reported quarterly earnings of $0.11 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.02 per share a year ago [1] - The company achieved revenues of $180.72 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 7.42% and up from $141.7 million year-over-year [2] - Xometry's stock has increased approximately 13.9% year-to-date, compared to a 16.5% gain in the S&P 500 [3] Earnings Performance - The company has surpassed consensus EPS estimates three out of the last four quarters, with a notable surprise of +80% in the previous quarter [1] - The current consensus EPS estimate for the upcoming quarter is $0.13, with expected revenues of $175.59 million, and for the current fiscal year, the estimate is $0.35 on revenues of $657.33 million [7] Market Outlook - The sustainability of Xometry's stock price movement will largely depend on management's commentary during the earnings call [3] - The Zacks Rank for Xometry is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] - The Manufacturing - General Industrial industry, to which Xometry belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - Q3 revenue increased 28% year-over-year to $181 million, with marketplace revenue at $167 million and supplier services revenue at $14.1 million [15][16] - Q3 gross profit was $72 million, a 29% year-over-year increase, with a gross margin of 39.9% [17] - Adjusted EBITDA for Q3 was $6.1 million, compared to a loss of $0.6 million in Q3 2024, marking a significant improvement [18][19] - Cash and cash equivalents at the end of Q3 were $225 million, a decrease of approximately $1 million from Q2 2025 [19] Business Line Data and Key Metrics Changes - Marketplace revenue grew 31% year-over-year, driven by strong execution and expansion of buyer and supplier networks [15][16] - Supplier services revenue declined approximately 1% quarter-over-quarter, stabilizing the core advertising business [17] - Active buyers increased 21% year-over-year to 78,282, with a net addition of 3,505 active buyers [16] Market Data and Key Metrics Changes - Marketplace growth was robust across verticals including semiconductors, aerospace, and automotive [16] - International segment adjusted EBITDA loss was $4.2 million in Q3 2025, compared to $2 million in Q3 2024, indicating ongoing investments for global scale [19] Company Strategy and Development Direction - The company aims to become the de facto digital rails in custom manufacturing, focusing on marketplace dynamics and AI technology [5][8] - Investments in technology and product development are expected to drive future growth, with a focus on enhancing buyer and supplier experiences [8][12] - The company is raising its full-year marketplace growth outlook from 23%-24% to 27%-28% [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong growth despite an uncertain macro environment, with expectations for 20% total revenue growth in 2026 [23] - The company is focused on balancing growth and profitability while investing in technology to scale the business [50] Other Important Information - The company launched auto-quoting for injection molding services in the U.S. and a new Workcenter mobile app to enhance supplier engagement [9][12] - The company expects Q4 revenue in the range of $182-$184 million, representing 23%-24% growth year-over-year [22] Q&A Session Summary Question: Can you unpack the 20% growth for 2026? - Management indicated that the growth is driven by marketplace growth initiatives and does not assume macroeconomic improvements [25][27] Question: What is the significance of the Work Center mobile app? - The app is designed to enhance customer and supplier experiences by simplifying data sharing and improving engagement [29][30] Question: Can you discuss team changes and talent acquisition? - The company is attracting top talent to enhance technology capabilities, which is crucial for achieving revenue goals [33][34] Question: What changed in guidance from Q2 to Q3? - Increased customer adoption of technology tools and strong performance across enterprise accounts contributed to the guidance change [47] Question: How is the international expansion performing? - International revenue grew 23% year-over-year, with expectations for it to become 30%-40% of marketplace revenue over time [44][45]

Leading the Future of Manufacturing Q3 2025 Earnings Presentation November 4, 2025 © 2025 Xometry and/or its affiliates. All rights reserved. Proprietary. Safe Harbor This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding the Company's future results of operations, financial position and cash flows, expectations regarding its growth and margin expansion, including in international markets, ...

Revenue Growth - Q3 2025 revenue increased 28% year-over-year to a record $181 million, driven by robust marketplace growth[5] - Marketplace revenue for Q3 2025 was $167 million, an increase of 31% year-over-year[6] - Revenue for Q3 2025 was $180.7 million, a 27.5% increase from $141.7 million in Q3 2024[34] - For Q4 2025, revenue is expected to be between $182 million and $184 million, representing 23-24% growth year-over-year[13] - The company raised its full-year 2025 revenue guidance to $676 million to $678 million[14] - Total revenue for the nine months ended September 30, 2025, was $494,234,000, up 24.5% from $396,983,000 in 2024[45] - U.S. segment revenue for the nine months ended September 30, 2025, was $414,646,000, a 24.5% increase from $333,113,000 in 2024[45] - International segment revenue for the nine months ended September 30, 2025, was $79,588,000, up 24.6% from $63,870,000 in 2024[45] Profitability Metrics - Q3 Adjusted EBITDA improved by $6.8 million year-over-year to $6.1 million, reflecting strong operating expense leverage[5] - Non-GAAP net income for Q3 2025 was $6.2 million, compared to $1.1 million in Q3 2024, reflecting a 457% increase[6] - Gross profit for Q3 2025 was $72.0 million, compared to $55.8 million in Q3 2024, reflecting a gross margin improvement[34] - Adjusted EBITDA for the nine months ended September 30, 2025, was $10,146,000, compared to a loss of $10,725,000 in 2024, indicating a significant improvement[39] - Non-GAAP EPS diluted for the nine months ended September 30, 2025, was $0.22, compared to a loss of $0.11 in 2024[43] Expenses and Losses - Operating expenses for Q3 2025 were $83.1 million, up from $67.3 million in Q3 2024, driven by increased sales and marketing costs[34] - Net loss for Q3 2025 was $11.6 million, compared to a net loss of $10.2 million in Q3 2024, resulting in a net loss per share of $0.23[34] - For the nine months ended September 30, 2025, the net loss was $53,110,000 compared to a net loss of $40,507,000 for the same period in 2024, representing a 31% increase in losses[37] - The company incurred $16,430,000 in losses on debt extinguishment during the nine months ended September 30, 2025[39] Asset and Liability Changes - Total current assets increased to $341.1 million as of September 30, 2025, up from $327.5 million at the end of 2024[32] - Total liabilities rose to $425.8 million as of September 30, 2025, compared to $364.5 million at the end of 2024[32] - Cash and cash equivalents decreased to $20.8 million as of September 30, 2025, from $22.2 million at the end of 2024[32] - The cash and cash equivalents at the end of the period were $20,845,000, down from $53,424,000 at the beginning of the period[37] Operational Developments - Marketplace Active Buyers increased 21% from 64,851 as of September 30, 2024, to 78,282 as of September 30, 2025[6] - The new Workcenter mobile app was launched to enhance supplier management and communication within the Xometry partner network[8] - Xometry's marketplace continues to expand, leveraging AI to enhance the procurement process for manufacturers[28] Compensation and Expenses - The company reported stock-based compensation of $25,985,000 for the nine months ended September 30, 2025, compared to $21,115,000 in 2024, reflecting a 23% increase[39] - Total stock-based compensation expense and payroll taxes related to stock-based compensation for the nine months ended September 30, 2025, reached $28,085,000, an increase of 27.6% compared to $21,991,000 in the same period of 2024[46] - Total depreciation and amortization expense for Q3 2025 was $5,000,000, representing a 55.3% increase from $3,213,000 in Q3 2024[46] - Total restructuring charges for the nine months ended September 30, 2025, amounted to $1,464,000, with a significant increase from no charges reported in the same period of 2024[46] - Product development expenses for Q3 2025 were $2,583,000, a 67.4% increase from $1,543,000 in Q3 2024[46] - Operations and support expenses for Q3 2025 totaled $3,712,000, up 64.4% from $2,259,000 in Q3 2024[46] - General and administrative expenses for the nine months ended September 30, 2025, were $4,416,000, compared to $4,101,000 in the same period of 2024, reflecting a 7.7% increase[46] - Cost of revenue for the nine months ended September 30, 2025, was $550,000, slightly up from $549,000 in the same period of 2024[46] - Sales and marketing expenses for Q3 2025 were $3,170,000, up 65.7% from $1,913,000 in Q3 2024[46] - Sales and marketing depreciation for Q3 2025 was $799,000, nearly unchanged from $794,000 in Q3 2024[46] - Operations and support depreciation for the nine months ended September 30, 2025, was $129,000, an increase from $105,000 in the same period of 2024[46]