Xometry’s Strong Financial Performance and Strategic Positioning Justify Buy Rating

William Blair analyst Brian Drab has maintained their bullish stance on XMTR stock, giving a Buy rating today.

Brian Drab has given his Buy rating due to a combination of factors that highlight Xometry’s strong financial performance and strategic positioning. The company has surpassed revenue and adjusted EBITDA expectations, with first-quarter revenue reaching $151 million, exceeding the consensus of $148 million. This growth is attributed to a 23% year-over-year increase in revenue, driven by a robust 27% growth in marketplace revenue, despite a slight decline in supplier service revenue.
Furthermore, Xometry’s marketplace model is well-suited to the current international trade and supply chain environment, with a significant portion of customer demand in the U.S. being fulfilled domestically. The company’s strategic investments in global sourcing and the expansion of localized marketplaces across the U.S., Europe, and Asia are also contributing to its positive outlook. The increase in active buyers and revenue per active buyer, alongside improvements in operating leverage and advertising spend efficiency, further support the Buy rating.