Core Insights - Xometry is identified as a marketplace for manufacturing, which can also be described as a supply chain platform, highlighting its dual role in the industry [1]. Company Overview - Xometry has been public for several years, indicating its established presence in the market [1]. - The company is led by CEO and Founder Randy Altschuler and CFO James Miln, showcasing a strong leadership team [1].

Xometry (XMTR) 2025 Conference Summary Company Overview - Xometry is a marketplace for custom manufacturing, often referred to as a supply chain platform [1] Key Financial Performance - 21.5% growth in annual buyers in Q2 [2] - 26% growth in marketplace revenue [3] - Record high gross margin for marketplace at over 40% [4] - Overall gross margin reached 35.4% in Q2, with expectations to maintain between 35% to 40% [88][92] Drivers of Growth - Increased adoption of AI for smarter quoting and dynamic pricing, enhancing buyer-supplier matching [4][10] - Integration into customer procurement and CAD systems, improving efficiency and reducing friction [5][28] - Expansion of the supplier network, which has grown over 40% since 2019 [15] - Introduction of TeamSpace, facilitating collaboration among buyers and enhancing enterprise customer engagement [22][25] Product Innovations - Instant quoting capabilities are being expanded to include more manufacturing technologies and materials [14] - TeamSpace launched in Europe, with over 8,500 teams adopted, aiding in enterprise operations [18][21] - WorkCenter software provides real-time order status, improving customer experience [41] Market Dynamics - Xometry is gaining market share despite overall manufacturing contraction, indicating strong competitive positioning [58] - Renewed interest in reshoring and multi-sourcing strategies among customers [60][61] - The company is diversifying its supplier base, with a 28% growth in suppliers last year [65] International Expansion - International revenue is approximately 16.5% of total revenue, with potential for significant growth [69] - The company aims for a 30-40% international revenue mix in the future [71] Customer Engagement and Retention - Focus on building strategic partnerships with enterprise customers, with top 100 customers growing over 40% in 2024 [25] - Emphasis on reducing procurement friction through ERP integrations, enhancing customer access to Xometry's services [30] Future Outlook - The potential for multiple customers to reach $10 million in revenue, driven by enhanced technology and sales strategies [31][36] - Continued investment in technology and supplier relationships to improve customer satisfaction and profitability [76][92] Additional Insights - Xometry's addressable market is estimated at nearly $2 trillion, highlighting the vast opportunity in custom manufacturing [95] - The company is revitalizing its Thomas platform to enhance advertising capabilities and supplier engagement [78][85] Conclusion - Xometry is positioned for continued growth through technological advancements, strategic partnerships, and an expanding marketplace, with a strong focus on customer experience and operational efficiency [53][96]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Summary: Xometry (XMTR) - Xometry currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] - Over the past week, XMTR shares have increased by 34.02%, significantly outperforming the Zacks Manufacturing - General Industrial industry, which rose by only 0.73% [5] - In the last quarter, XMTR shares have surged by 41.26%, and over the past year, they have gained 167.01%, while the S&P 500 only increased by 10.12% and 19.99%, respectively [6] - The average 20-day trading volume for XMTR is 1,025,730 shares, indicating a bullish trend as the stock is rising with above-average volume [7] Earnings Outlook - In the past two months, three earnings estimates for XMTR have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $0.30 to $0.35 [9] - For the next fiscal year, four estimates have moved higher, with no downward revisions, indicating positive sentiment regarding future earnings [9] Conclusion - Considering the positive momentum indicators and earnings outlook, XMTR is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Core Viewpoint - XMTR's MSCI ESG rating has been downgraded from BB to B as of August 14, 2025, indicating a decline in the company's environmental, social, and governance performance [1] Summary by Relevant Categories ESG Rating - XMTR's MSCI ESG rating is now B, down from BB, reflecting a significant change in its ESG performance [1]

Company Performance - Xometry (XMTR) shares have increased by 36.9% over the past month, reaching a new 52-week high of $48.6 [1] - Year-to-date, Xometry has gained 11.3%, outperforming the Zacks Industrial Products sector (6.9%) and the Zacks Manufacturing - General Industrial industry (7.2%) [1] Earnings and Revenue Expectations - Xometry has consistently exceeded earnings estimates, reporting EPS of $0.09 against a consensus estimate of $0.05 in its last earnings report [2] - For the current fiscal year, Xometry is projected to achieve earnings of $0.35 per share on revenues of $657.33 million, reflecting a 975% increase in EPS and a 20.49% increase in revenues [3] - For the next fiscal year, expected earnings are $0.82 per share on revenues of $778.59 million, indicating a year-over-year change of 134.29% in EPS and 18.45% in revenues [3] Valuation Metrics - Xometry's current valuation shows a Price-to-Earnings (P/E) ratio of 135.6X for the current fiscal year, significantly higher than the peer industry average of 23.3X [6] - The stock has a Value Score of F, while its Growth and Momentum Scores are both A, resulting in a VGM Score of B [6] Zacks Rank and Investment Potential - Xometry holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [7] - The combination of a Zacks Rank of 2 and Style Scores of A or B suggests that Xometry shares may have further upside potential [7] Industry Comparison - The Manufacturing - General Industrial industry is performing well, ranking in the top 14% of all industries, providing a favorable environment for both Xometry and its peer, Gorman-Rupp Company (GRC) [10] - Gorman-Rupp Company has a Zacks Rank of 2 (Buy) and is expected to post earnings of $2.04 per share on revenues of $680.77 million for the current fiscal year [9]

Core Viewpoint - Xometry (XMTR) is experiencing solid improvement in earnings estimates, which is likely to positively impact its stock price in the near term [1][2]. Earnings Estimates - Analysts are increasingly optimistic about Xometry's earnings prospects, leading to higher estimates that should reflect in the stock price [2]. - The consensus earnings estimate for the current quarter is $0.11 per share, indicating a year-over-year increase of +450.0% [5]. - For the full year, the earnings estimate has risen to $0.35 per share, representing a change of +975.0% from the previous year [6]. Estimate Revisions - Over the past 30 days, the Zacks Consensus Estimate for Xometry has increased by 5%, with one estimate moving higher and no negative revisions [5]. - The consensus estimate for the current year has increased by 18.63%, with three estimates moving higher and no negative revisions [6][7]. Zacks Rank - Xometry has earned a Zacks Rank 2 (Buy) due to promising estimate revisions, which indicates a favorable investment opportunity [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8]. Stock Performance - Xometry's stock has increased by 29.5% over the past four weeks, driven by strong estimate revisions and investor interest [9].

Company Overview - Xometry, Inc. (NASDAQ: XMTR) experienced a significant increase in share price following the release of its second quarter earnings, attributed more to low investor expectations than exceptionally strong results [1] - The company's growth is slowing down, yet remains relatively solid in the context of the current macroeconomic environment [1] Investment Strategy - Narweena, an asset management firm led by Richard Durant, focuses on identifying market dislocations caused by misunderstandings of long-term business prospects [1] - The firm aims to achieve excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets characterized by 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 and markets lacking obvious competitive advantages [1] Economic Insights - The aging population, low population growth, and stagnating productivity growth are expected to create new investment opportunities distinct from historical trends [1] - Certain industries may experience stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] - Conversely, some businesses may face increasing costs and diseconomies of scale, while the economy shifts towards asset-light business models, leading to a declining need for infrastructure investments [1] - A growing pool of capital is competing for a limited number of investment opportunities, resulting in rising asset prices and compressed risk premia over time [1]

Core Insights - Xometry reported Q2 2025 GAAP revenue of $162.5 million, exceeding the consensus estimate of $156.5 million, with non-GAAP diluted EPS of $0.09, surpassing the expected $0.04, indicating strong marketplace growth and improved operational efficiency despite a wider GAAP net loss due to a non-recurring charge [1][2][9] Financial Performance - Q2 2025 revenue increased by 23% year-over-year from $132.6 million in Q2 2024, with marketplace revenue growing 26% year-over-year [2][5] - Active buyers in the marketplace rose by 22% to 74,777, with accounts spending at least $50,000 increasing by 15% to 1,653, reflecting strong customer loyalty [5] - Adjusted EBITDA turned positive at $3.9 million, an improvement of $6.6 million from a loss in the previous year, driven by the U.S. segment [7] - Supplier services revenue declined by 6.4% year-over-year to $14.3 million, with management projecting a continued decline of around 5% for the year [2][6] Operational Highlights - Xometry's platform utilizes AI for instant pricing and design feedback, enhancing efficiency in custom manufacturing across various industries [3] - The company is focusing on technology expansion, AI integration, and growing its buyer and supplier networks, with notable innovations in AI capabilities and international expansion efforts [4] - New platform features launched include an AI-driven instant drawing quote tool and Teamspace for improved collaboration among buyer purchasing teams [8] Future Guidance - For Q3 2025, management projects revenue between $167 million and $169 million, representing 18-19% year-over-year growth, with adjusted EBITDA expected in the range of $4.0 million to $5.0 million [10] - For FY2025, Xometry raised its marketplace revenue growth outlook to 23-24%, while supplier services revenue is expected to remain down around 5% [10]

Financial Data and Key Metrics Changes - Q2 revenue increased 23% year over year to $163 million, driven by significant market share gains in the custom manufacturing market [7][21] - Marketplace gross margin reached a record 35.4%, up 190 basis points year over year, contributing to an overall company gross margin of 40.1% [8][24] - Adjusted EBITDA improved to $3.9 million, a $6.6 million increase year over year [9][27] - Cash and cash equivalents decreased to $226 million, down approximately $5 million from Q1 2025, primarily due to capital expenditures [28][29] Business Line Data and Key Metrics Changes - Q2 marketplace revenue was $148 million, a 26% year-over-year increase, while supplier services revenue was $14.3 million, down approximately 2% quarter over quarter [22][24] - Active buyers increased 22% year over year to 74,777, with a net addition of 3,323 active buyers [22] - Marketplace revenue per active buyer increased 4% year over year, primarily due to strong enterprise growth in the U.S. [22] Market Data and Key Metrics Changes - U.S. marketplace revenue increased 25% year over year, while international revenue growth accelerated to 31% year over year [22][23] - The number of accounts with at least $50,000 in last twelve months spend increased 15% year over year to 1,653 [23] Company Strategy and Development Direction - The company is focusing on embedding technology and AI across its operations to enhance its position in the custom manufacturing market [11][15] - The strategy includes expanding enterprise sales and marketing efforts, with a focus on large accounts that can generate significant annual revenue [15][20] - The company is raising its 2025 revenue growth outlook to at least 20%, driven by robust demand and strong execution [20][32] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the macro environment but is optimistic about the company's growth trajectory due to strong marketplace performance [41][52] - The company expects Q3 revenue in the range of $167 to $169 million, representing 18% to 19% growth year over year [30][32] - For the full year 2025, the company expects incremental adjusted EBITDA margin of approximately 21% [33] Other Important Information - The company completed a convertible debt refinancing, raising $250 million in new convertible notes, which improves its balance sheet and financial flexibility [29] - The company is focused on improving working capital efficiency and cash flow conversion given its asset-light model [28] Q&A Session Summary Question: Impact of product initiatives on the business - Management highlighted the acceleration of technology and AI deployment to improve buyer and supplier experiences, with several product rollouts planned for the second half of the year [39] Question: Insights on manufacturing trends and guidance - Management acknowledged strong trends in Q2 but remained cautious about the macro environment, indicating that guidance reflects current market conditions [41][52] Question: Gross margin dynamics and future expectations - Management confirmed that Q2 gross margin was a record 35.4%, driven by AI improvements, and expects continued year-over-year improvements in Q3 [46][48] Question: Potential for growth in a better macro environment - Management indicated that while they are gaining market share, a macro turnaround could provide additional growth opportunities [51] Question: Pricing environment and adjustments - Management explained that pricing adjustments are made in response to changes in tariffs and costs, ensuring flexibility in sourcing options for customers [64] Question: Sales and marketing efficiency - Management noted a normalization in marketing spend and continued leverage in sales and marketing investments, contributing to strong account growth [71][73]

Financial Performance - Q2 2025 revenue reached a record of $163 million, driven by a 26% year-over-year increase in Marketplace revenue[16] - Gross profit for Q2 2025 was a record $65.2 million, a 23% year-over-year increase, fueled by a 34% year-over-year growth in Marketplace gross profit[16] - The Marketplace gross margin for Q2 2025 was 35.4%, a 190 basis point increase year-over-year, attributed to AI pricing and selection[16] - Adjusted EBITDA for Q2 2025 was $3.9 million, an increase of $6.6 million year-over-year[14, 16] - FY24 Total Revenue was $546 million, a 18% year-over-year increase[27] Growth Initiatives - Active Buyers increased by 22% year-over-year in Q2 2025, driven by increased enterprise penetration and Teamspace adoption[15, 17] - Active Suppliers increased by 28% year-over-year in 2024[15, 17] - International revenue grew by 31% year-over-year, representing 18% of Marketplace revenue in Q2[18, 37] Future Outlook - The company is targeting 20% incremental Adjusted EBITDA margins as it scales to $1 billion[19] - For Q3 2025, the company expects revenue of $167-169 million, representing 18-19% growth year-over-year[70] - For FY 2025, the company expects total revenue growth of at least 20%[70]