Xometry Inc · Q2 2022 earnings

Briefing

Xometry delivered accelerated marketplace growth and robust expansion in marketplace gross margin.

Xometry reported strong second-quarter results, with total revenue increasing by 89% year-over-year to $95.6 million. Marketplace revenue grew to $75.6 million, while supplier services revenue reached $20.0 million. The company's gross profit increased by 217% year-over-year to $37.7 million. Xometry also launched new products, including the Industrial Buying Engine and Workcenter, to provide integrated solutions for buyers and suppliers.

• Marketplace growth accelerates: Revenue increases 89% year-over-year driven by accelerating marketplace growth as well as supplier services including Thomas.
• Strong gross margin and gross profit trends driven by AI pricing/supplier selection and additional supplier services: Gross profit up 217% year-over-year. Marketplace gross profit increased 25% quarter-over-quarter.
• Expect strong growth for balance of 2022: We expect revenue growth of 81-83% to $395-$400 million, driven by increasing active buyers and suppliers, added supplier services and revenue synergies with Thomas.
• Expect further operating leverage: Q2 Adjusted EBITDA loss of $8.3 million, a $4.4 million quarter-over-quarter improvement. We expect operating leverage to further improve in the second half of 2022.

Headline financials

Revenue & EPS history

Xometry expects revenue between $102.0 million and $104.0 million for Q3 2022 and between $395.0 million and $400.0 million for FY 2022. Adjusted EBITDA is expected to be between $(7.0) million and $(6.0) million for Q3 2022 and between $(33.0) million and $(31.0) million for FY 2022.