• Q4 Revenue: Increased 16% year-over-year to $149 million.
• Marketplace Revenue: Grew 20% year-over-year to $135 million.
• Supplier Services Revenue: Declined 13% year-over-year to $14 million.
• Q4 Gross Profit: Increased 20% year-over-year to $59 million.
• Marketplace Gross Margin: Expanded 320 basis points year-over-year to 34.5%.
• Adjusted EBITDA: Positive $1 million, a $3.9 million improvement year-over-year.
• Active Buyers: Increased 23% year-over-year to 68,267.
• Active Suppliers: Grew 28% year-over-year to 4,375 manufacturers.
• Cash and Cash Equivalents: $240 million at the end of Q4, increasing $5.8 million from Q3 2024.
• Q1 2025 Revenue Guidance: Expected to be in the range of $147 million to $149 million, 20% to 21% growth year-over-year.
• Full-Year 2025 Marketplace Growth Expectation: At least 20% across each quarter.
• Full-Year 2025 Adjusted EBITDA Expectation: Positive, with incremental adjusted EBITDA margins of approximately 20%.

• Warning! GuruFocus has detected 3 Warning Sign with XMTR.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Xometry Inc (NASDAQ:XMTR) achieved record revenue, gross profit, and marketplace gross margin in Q4 2024, with a 16% year-over-year revenue increase to $149 million.
• The company's AI-powered marketplace saw a 23% growth in active buyers, reaching over 68,000, and a 20% year-over-year increase in marketplace revenue.
• International growth was robust, with a 42% year-over-year increase in Q4, reaching a $100 million run rate, driven by expansion in Europe and Asia Pacific.
• Xometry Inc (NASDAQ:XMTR) achieved adjusted EBITDA profitability in Q4 2024, marking a significant milestone in its mission to digitize the global custom manufacturing industry.
• The company is focused on expanding its buyer and supplier networks, driving deeper enterprise engagement, and enhancing supplier services, which are expected to contribute to accelerated revenue growth in 2025.

Negative Points

• Supplier services revenue declined 13% year-over-year in Q4 2024, primarily due to the wind down of non-core services and a contraction in U.S. manufacturing.
• The number of active paying suppliers in the supplier services segment decreased by 9% year-over-year.
• Q4 marketplace revenue per active buyer was down 3% year-over-year due to a tough comparison from Q4 2023.
• The stronger U.S. dollar negatively impacted Q4 revenue by approximately $0.5 million to $1 million.
• Xometry Inc (NASDAQ:XMTR) expects a temporary dampening of gross margin in Q1 2025 due to accelerated global sourcing strategy and investments in new geographies.

Q & A Highlights

Q: How should we think about the pathway to international revenue growth and the role of multimodal AI in improving the buyer process? A: Randy Altschuler, CEO: We expect international revenue to be 30% to 40% of our marketplace revenue, consistent with other global marketplaces. Growth in EMEA and Asia Pacific will play significant roles. Regarding multimodal AI, it will allow customers to upload various file types for instant quotes, reducing friction and improving customer experience.

Q: Can you expand on the strong start to 2025 and the impact of changing tariffs on your business? A: Randy Altschuler, CEO: We're seeing success in our enterprise segment, with technology like Teamspace and ERP integrations being well-received. The volatile environment is pushing customers towards Xometry for its technology backbone and strength. James Miln, CFO: We're accelerating our global sourcing strategy, which temporarily impacts Q1 gross margin but positions us well for future growth.

Q: How has order growth been in Q4 2024, and what is the relationship between Thomas and Xometry's legacy business? A: Randy Altschuler, CEO: We saw a record number of active buyers added in Q4, indicating strong order growth. Regarding Thomas, while there are some referrals, our current focus is on integrating new ad server technology to increase advertiser penetration, which will eventually lead to more synergies with Xometry's platform.

Q: How have changes in sales function and marketplace menu driven enterprise account penetration? A: Randy Altschuler, CEO: Investments in enterprise sales teams and technology tools like Teamspace and ERP integrations have been crucial. Segmentation and focus on enterprise accounts have led to increased penetration. James Miln, CFO: Our strategy of expanding the supplier network and leveraging data continues to drive gross profit growth.

Q: Are you seeing changes in buyer behavior due to tariffs, and how is Xometry positioned to address these changes? A: Randy Altschuler, CEO: Customers are increasingly aware of risks and are looking to mitigate them by using multiple geographies. Xometry's asset-light, technology-driven model allows us to meet customers' needs effectively. James Miln, CFO: Our global sourcing strategy positions us well to provide value and flexibility to our customers.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.