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Xometry boosts first-quarter revenue despite warnings of a slow start

Xometry Inc. reported revenue growth in the first quarter of fiscal 2024. This result followed a slow start to the year as CEO Randy Altschuler warned potentially weak first quarter.

“Thanks to AI, our market continues to gain significant market share as buyers and suppliers realize the value, convenience and resilience of our platform,” Altschuler said in a written statement. “In the first quarter of 2024, we achieved better-than-expected revenues driven by strong 24% market revenue growth. Market growth was driven by a solid 32% increase in Active Buyers. We expect our current initiatives to continue to drive long-term growth.”

Xometry is a B2B marketplace for artificial intelligence (AI) manufacturers based in Bethesda, Maryland. It facilitates sales across a variety of industries, including aerospace, robotics, automotive, and more.

Xometry Q1 results

In the first quarter ended March 31, Xometry’s revenue increased 16% to $123 million. This was largely driven by market growth of 24% year-over-year to $107 million.

Meanwhile, vendor services revenue declined 17% to $15.5 million as Xometry discontinued its lower-margin tools and materials business. This negatively impacted revenue by approximately $2 million, he said.

The number of active buyers in the market increased 32% year-over-year to 58,504. Altschuler told investors that number also increased 8% quarter-over-quarter. However, the number of active suppliers decreased by 6% to 7,159.

Net loss for the first quarter was $16.6 million, down $1.7 million from the year-ago period. Xometry says this includes $6 million in stock compensation.

International revenues outperformed total revenues, growing 69% year over year driven by strong growth in Europe. Foreign sales accounted for 18% of total revenues. Xometry anticipates that in the long run it will ultimately account for 30% to 40% of revenues, he said.

These results put Xometry on track with its plan, said Chief Financial Officer James Miln. “In 2024, we expect to continue to improve our progress towards profitability year-over-year thanks to operating leverage, partially offset by international investments and enterprise growth investments.”

Xometry Q1 technology updates

Xometry has rolled out several updates to its Teamspace collaboration tool. This launched Teamspace for the first time in October 2023 as a way to streamline order management and increase project efficiency on the Xometry platform.

New order management tools and viewing offer history in Teamspace shift the focus of the Xometry market from individual buyers to purchasing teams, he said. According to Xometry, 2,300 teams have been created since the tool launched.

Xometry has also added a new injection molding dashboard that in-market buyers can access. It gives purchasing professionals easier access to detailed information on various tools, as well as a centralized place to track bids, designs and part production.

The marketplace has begun beta testing a number of features for Thomasnet.com, a B2B marketplace acquired in 2021. One of these tools is a self-service way for vendors to create custom advertising campaigns. Suppliers can choose from nearly 80,000 categories based on their products, services and budgets.

Google collaboration news

In 2023, Xometry announced its collaboration with Google Cloud to use the Vertex AI platform in Xometry’s AI-powered instant quote engine. Progress so far is “encouraging,” Altschuler said. He added that by the third quarter of fiscal 2024, Xometry plans to test several new automated pricing models with customers in the U.S. and Europe.

Xometry Inc. Earnings

In the fiscal first quarter ended March 31, Xometry reported:

  • Revenues increased by 16% to PLN 123 million.
  • The number of active buyers in the market increased by 32% year-on-year to 58,504.
  • International revenues increased 69% year-over-year and accounted for 18% of total revenues.

Check again more earnings reports. For example, here’s an update from last quarter on Xometria.

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