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].

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 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 [10][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][40] - Marketplace gross margin expanded 320 basis points year-over-year to a record 34.5% [15][36] Business Line Data and Key Metrics Changes - Marketplace revenue was driven by a 23% increase in active buyers, reaching over 68,000, with net additions of over 3,400 in Q4 [11][33] - Supplier services revenue declined 13% year-over-year in Q4, primarily due to the wind down of non-core services [36] - The number of accounts with last 12 months spend of at least $50,000 increased 12% year-over-year to 1,495 [34] Market Data and Key Metrics Changes - International revenue grew 42% year-over-year in Q4, reaching a $100 million run rate, representing 18% of total marketplace revenue [12][25] - The company expects international revenue to represent 30% to 40% of marketplace revenue in the long term [25] 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] - Key growth initiatives include deeper enterprise engagement, expanding the marketplace menu, and enhancing supplier services [22][27] - The company plans to invest in next-generation AI models to improve cost and lead time optimization [23][24] 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 is focused on improving working capital efficiency and cash flow conversion, with expectations for continued revenue growth in 2025 exceeding 2024 growth [48][49] - Management highlighted the importance of their technology platform in providing solutions to customers amid volatile global trade policies [100][102] Other Important Information - The company is investing in a new ad server technology platform to enhance supplier engagement and improve monetization of Thomas [27] - Cash and cash equivalents increased to $240 million, driven by positive adjusted EBITDA and improved working capital [42][43] Q&A Session Summary Question: How should we think about the pathway to international revenue growth? - Management expects international revenue to reach 30% to 40% of marketplace revenue, with strong growth in EMEA and anticipated growth in Asia Pacific [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, reducing friction and improving customer experience [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, with a focus on technology and safety appealing to customers in a fragmented market [61][62] Question: How is the global sourcing strategy impacting Q1 guidance? - The acceleration of global sourcing is expected to dampen gross margin 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, indicating a positive trend moving into 2025 [74][75] Question: What is the relationship between Thomas and the legacy business? - Management emphasized the focus on technology integration and increasing advertiser penetration on the Thomas platform, which is seen as a high-margin opportunity [82] Question: How have changes in the tariff landscape affected buyer behavior? - Customers are increasingly aware of risk mitigation strategies, leading to a preference for flexible sourcing options across different geographies [100][109]

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].

Core Insights - Xometry, Inc. reported strong financial results for Q4 and full year 2024, highlighting significant marketplace growth and improved profitability metrics [2][5][11] Financial Highlights - Q4 2024 revenue reached $149 million, a 16% increase year-over-year, driven by a 20% growth in marketplace revenue [5][12] - Q4 gross profit was $59 million, up 20% year-over-year, with a record marketplace gross margin of 34.5%, reflecting a 320 basis point improvement [5][12] - Adjusted EBITDA for Q4 was a profit of $1 million, marking a $3.9 million improvement from the previous year [5][12] - For the full year 2024, marketplace revenue totaled $486 million, a 23% increase year-over-year, while supplier services revenue decreased by 13% to $59.6 million [11][12] Business Highlights - Active Buyers increased by 23% year-over-year, from 55,325 to 68,267, indicating strong customer engagement [6][13] - The number of Accounts with Last Twelve-Months Spend of at least $50,000 rose by 12%, from 1,331 to 1,495 [6][13] - The company expanded its supplier network by 28% year-over-year, growing from 3,429 to 4,375 suppliers [6][13] - Xometry retained key certifications for various industries, enhancing its capabilities for enterprise accounts [5][6] Operational Developments - The company launched new features for its marketplace and Teamspace enterprise collaboration software, enhancing user experience and operational efficiency [11][12] - Xometry expanded its international pricing and supplier base, particularly in key manufacturing regions like Turkey and India [5][6] - A new patent was received for the Xometry Instant Quoting Engine, further solidifying its technological edge in the marketplace [7] Financial Guidance - For Q1 2025, Xometry expects revenue between $147 million and $149 million, representing a year-over-year growth of 20-21% [21] - The company anticipates an Adjusted EBITDA loss of approximately $1.5 million for Q1 2025, an improvement from the previous year [21]

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]

Core Insights - Nearly 85% of automotive executives plan to rely more heavily on North American suppliers in 2025 to strengthen supply chains [1] - 41% of executives intend to reshore some operations [1][5] - Investment is nearly equal across hybrid (37%), electric (28%), and traditional combustible engine (30%) technologies [2] Investment and Innovation - Executives are focusing on innovations in EV battery production (41%) and alternative fuel sources (37%) [2][5] - AI is expected to play a significant role, with nearly a third (30%) of executives believing it will accelerate product development and improve supply chain efficiencies [2][5] Manufacturing Techniques - Enhanced manufacturing techniques such as 3D printing and robotics are being embraced to drive innovation [2][3] - The Thomasnet industrial sourcing platform connects buyers and procurement professionals to over 500,000 North American manufacturers across 80,000 industrial categories [4][5]

Group 1: Take-Two Interactive Software, Inc. (TTWO) - Take-Two is highlighted as a top video game pick for 2025, with a price target of $225 and a 22% upside, driven by a strong game lineup including GTA 6, Borderlands 4, Civilization 7, and Mafia: The Old Country [1][2] - GTA 6 is expected to be a primary driver of TTWO's share performance, with the second trailer anticipated to generate significant pre-release hype and pre-orders [2][3] - Take-Two has a history of exceeding market forecasts, with projections of 46% bookings growth in FY26, supported by a robust mobile strategy and over 30 planned titles through FY27 [3] Group 2: Xometry, Inc. (XMTR) - Xometry is positioned as a leading player in the custom manufacturing marketplace, with a price target of $45 and a 23% upside, benefiting from potential tariffs and supply chain uncertainties [1][4] - The company is expected to achieve revenue growth acceleration of 19% in 2025, driven by initiatives such as instant quoting and international expansion [5] - Despite challenges in the manufacturing environment, Xometry is viewed positively for its potential to capitalize on the onshoring trend and has multiple avenues for growth in 2025 [4][5]

Core Insights - Xometry has appointed Sanjeev Singh Sahni as President to enhance global growth and operational efficiency [1][2][3] - Sahni's extensive experience in B2B and B2C sectors, particularly in technology integration and supply chain management, is expected to drive Xometry's growth initiatives [2][4] - The company emphasizes the importance of its AI-powered marketplace in transforming the manufacturing industry and improving supply chain resilience [5][6] Company Overview - Xometry operates an AI-powered marketplace that connects enterprise buyers with suppliers of manufacturing services, facilitating digital transformation in the manufacturing sector [5][6] - The company offers a suite of services including the Thomasnet® industrial sourcing platform and cloud-based project management tools [5][6] - Xometry's Instant Quoting Engine® utilizes extensive data to provide real-time analysis of complex parts, ensuring accurate pricing and lead times for buyers [6] Leadership and Strategy - Sanjeev Sahni's role will encompass overseeing global operations, product development, technology, and personnel, aiming to enhance Xometry's service offerings [1][3] - His previous roles at Wayfair and McKinsey & Company highlight his capability in managing large-scale operations and developing international supply chain strategies [4]