Xometry, Inc. ((XMTR)) has held its Q1 earnings call. Read on for the main highlights of the call.
Xometry, Inc. recently held its Q1 2025 earnings call, revealing a generally positive sentiment with record revenue growth and positive adjusted EBITDA. The company highlighted significant marketplace growth and strategic investments in technology, although it acknowledged challenges such as a decline in supplier services revenue, slower international growth, and workforce restructuring. Overall, the sentiment was balanced with a slight positive tilt due to strong growth metrics.
Record Revenue and Growth
Xometry reported a record revenue of $151 million for Q1 2025, marking a 23% year-over-year increase and a 700 basis point acceleration from Q4 2024. This impressive growth underscores the company’s robust performance and strategic positioning in the market.
Marketplace Growth Acceleration
The company saw a 27% year-over-year increase in marketplace revenue, driven by enterprise adoption and a 700 basis point acceleration from Q4 2024. This growth highlights the increasing demand for Xometry’s marketplace solutions and its ability to capture new business opportunities.
Positive Adjusted EBITDA
Xometry achieved a positive adjusted EBITDA in Q1 2025, improving by $7.5 million year-over-year. This financial milestone reflects the company’s effective cost management and operational efficiency.
Strong Adoption of AI-driven Marketplace
Xometry’s AI-driven marketplace is optimizing sourcing strategies and mitigating cost increases, demonstrating strength in a volatile trade environment. This technological advancement is a key differentiator for the company, enhancing its competitive edge.
Expansion in Technology and Global Reach
Significant investments in technology were made, including the launch of Instant Quoting for Injection Molding in the EU, UK, and Turkey, along with enhancements to buyer and supplier platforms. These initiatives are expected to drive further growth and efficiency.
Supplier Services Revenue Decline
Despite overall growth, supplier services revenue declined by 6% year-over-year in Q1 due to macro-related softness in Thomas advertising and the wind down of non-core services. This decline presents a challenge that the company is addressing strategically.
International Revenue Growth Slowdown
International revenue increased by 20% year-over-year, a significant slowdown compared to 69% growth in Q1 of 2024. This deceleration indicates potential challenges in expanding global operations.
Restructuring and Workforce Reduction
A restructuring charge of $1.5 million was recorded in Q1 2025, with a 5% reduction in workforce to improve efficiency. This move is part of Xometry’s strategy to streamline operations and enhance profitability.
Forward-Looking Guidance
During the earnings call, Xometry provided guidance for Q2 and the full year 2025, projecting revenue between $155 million and $157 million for Q2, with marketplace growth anticipated at 20% to 22%. The company has raised its full-year marketplace growth outlook to at least 22%. Xometry expects to achieve adjusted EBITDA between $1 million and $2 million in Q2, aiming to be adjusted EBITDA positive for the full year 2025. This guidance reflects a strategic focus on leveraging their AI-driven marketplace and continuing investments in technology and network expansion across 51 countries.
In summary, Xometry’s Q1 2025 earnings call highlighted a positive outlook with record revenue growth and a strategic focus on technology and marketplace expansion. While challenges such as declining supplier services revenue and slower international growth were noted, the company’s strong growth metrics and forward-looking guidance suggest a promising future.