Xometry, Inc. ((XMTR)) has held its Q4 earnings call. Read on for the main highlights of the call.
Xometry, Inc. recently held its earnings call, highlighting a strong financial performance with record revenue and gross profit. The company’s successful international expansion and advancements in its AI-powered marketplace were key contributors to this success. Despite a decline in supplier services revenue and temporary impacts on gross margin due to strategic investments, Xometry remains optimistic about its growth trajectory and improving profitability.
Record Revenue and Gross Profit
Xometry reported a significant increase in Q4 revenue, which rose by 16% year-over-year to reach a record $149 million. This growth was largely driven by a 20% year-over-year increase in marketplace revenue, supported by a 23% rise in active buyers. Additionally, the company achieved a record gross profit of $59 million, marking a 20% increase compared to the previous year.
International Growth
The company experienced robust international growth in Q4, with a 42% year-over-year increase, achieving a $100 million run rate. Xometry Europe played a pivotal role by introducing new materials and adding dozens of finishes, which enhanced customer solutions and contributed to the company’s international success.
AI-Powered Marketplace Success
Xometry’s AI-powered marketplace demonstrated significant success, with the gross margin expanding by 320 basis points year-over-year to a record 34.5% in Q4. The AI-driven model improved pricing and matching, which was instrumental in boosting gross profit growth.
Strong Enterprise Performance
The company’s enterprise strategy yielded strong results, with revenue from marketplace accounts spending at least $500,000 in the last 12 months increasing by over 40% year-over-year in 2024. This performance underscores the effectiveness of Xometry’s enterprise strategy and investments.
Positive Adjusted EBITDA
Xometry achieved a positive adjusted EBITDA of $1 million in Q4, marking a $3.9 million improvement year-over-year. This milestone reflects the company’s focus on enhancing profitability and operational efficiency.
Supplier Services Revenue Decline
Despite the overall positive performance, supplier services revenue declined by 13% year-over-year in Q4. This decline was attributed to the wind down of non-core services and a decrease in Thomas advertising and marketing services.
Temporary Gross Margin Dampening
The company anticipates a temporary dampening of gross margin in Q1 2025 due to its accelerated global sourcing strategy and expansion into new geographies. However, these strategic investments are expected to drive long-term growth.
Forward-Looking Guidance
Looking ahead, Xometry provided guidance for Q1 and the full year 2025, forecasting an acceleration in revenue growth. The company expects Q1 revenue to be between $147 million and $149 million, reflecting a 20% to 21% year-over-year increase. Marketplace growth is projected at 24% to 26% year-over-year for Q1, with full-year 2025 marketplace growth of at least 20% per quarter. Xometry aims to be adjusted EBITDA positive for 2025, targeting incremental adjusted EBITDA margins of approximately 20%. Despite temporary gross margin pressures in Q1, the company is confident in achieving year-over-year gross margin improvements for 2025.
In summary, Xometry, Inc. has demonstrated a strong financial performance, driven by record revenue and gross profit, international expansion, and advancements in its AI-powered marketplace. While facing some challenges in supplier services revenue and temporary gross margin impacts, the company remains optimistic about its growth prospects and profitability improvements. The forward-looking guidance further underscores Xometry’s commitment to accelerating revenue growth and maintaining a positive adjusted EBITDA.