Xometry(US:XMTR)2025-05-06 12:30Financial Data and Key Metrics Changes - In Q1 2025, revenue increased by 23% year over year to a record $151 million, marking a 700 basis point acceleration from 16% year over year revenue growth in Q4 2024 [7][17] - Adjusted EBITDA was $100,000 compared to a loss of $7.4 million in Q1 2024, reflecting an improvement of $7.5 million year over year [23] - Q1 gross profit was $56.3 million, an increase of 18% year over year, with a gross margin of 37.3% [20] Business Line Data and Key Metrics Changes - Marketplace revenue was $136 million, up 27% year over year, while supplier services revenue was $14.6 million, down 6% year over year [17][19] - Marketplace revenue per active buyer increased by 4% year over year due to strong enterprise growth in the US [18] - Supplier services revenue increased by 4% quarter over quarter, driven primarily by financial services products [20] Market Data and Key Metrics Changes - US marketplace revenue growth accelerated to nearly 30% year over year, the strongest since Q4 2023 [18] - International revenue increased by 20% year over year, compared to 69% growth in Q1 2024 [18] - The number of active buyers increased by 22% year over year to 71,454 [18] Company Strategy and Development Direction - The company is focused on building 18 localized marketplaces in the US, Europe, and Asia to support domestic manufacturing [8] - Investments are being made in technology to enhance the digital marketplace and improve sourcing strategies [12][13] - The company aims to provide a compelling triad of price, selection, and speed for buyers while enabling suppliers to access demand effectively [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth for 2025, expecting it to exceed 2024 growth [14][28] - The current volatile international trade environment validates the company's marketplace model, with a shift towards domestic sourcing being observed [8][31] - Management noted that the custom manufacturing market is large, and even if it shrinks, the company's market share is small enough to sustain robust growth rates [14] Other Important Information - The company initiated a restructuring action in March 2025, reducing its workforce by approximately 5% to improve efficiency [23] - Cash and cash equivalents at the end of Q1 were $231 million, a decrease of approximately $8 million from Q4 2024 [24] Q&A Session Summary Question: Comments on customer behavior since the April 2 tariff announcements - Management noted robust growth and an increase in domestic sourcing discussions among enterprise customers [31] Question: Incremental EBITDA margin expectations - Management indicated that the midpoint for Q2 guidance would be slightly below the long-term target of 20% [32][34] Question: Improvement in supplier services - The improvement was attributed to financial services offerings and enhancements in advertising and search capabilities [38][39] Question: Insights on tariffs and long-term sourcing strategies - Management highlighted a potential shift towards multi-sourcing as companies seek to build resilient supply chains [50] Question: Trends in production versus prototyping revenues - Management emphasized ongoing growth in production capabilities and the extensibility of their platform to support various manufacturing processes [76][80]