NASDAQ$XMTR

Xometry Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported record financial results with highest revenue and gross profit in Xometry history.

Xometry's Q3 2023 revenue increased by 15% year-over-year, driven by a 22% increase in marketplace revenue. The company also improved operating leverage, reducing its Adjusted EBITDA loss by 51% quarter-over-quarter. They expect continued marketplace revenue growth in Q4.

  • Q3 revenue increased 15% year-over-year driven by strong marketplace growth of 22% year-over-year and 10% quarter-over-quarter.
  • Q3 gross profit increased 13% year-over-year driven by 25% growth in marketplace gross profit. Q3 marketplace gross margin increased 70 basis points year-over-year to 31.1%.
  • Q3 Adjusted EBITDA loss of $4.2 million, a $4.4 million quarter-over-quarter improvement driven by higher revenue, gross profit, operating efficiencies and further expense savings.
  • Expect Q4 revenue growth of 28%-32% year-over-year to $126-$130 million. Expect accelerating marketplace growth in the 40% range year-over-year driven by strong Active Buyer and order growth.

Headline financials

Total Revenue

$119M

Previous: $104M+14.8%
EPS (adj)

-$0.05

Previous: -$0.11+54.5%
Capital Expenditures

-$12.1M

Previous: -$9.61M-25.6%
Free Cash Flow

-$24.1M

Previous: -$24.6M+2.3%
Net Income

-$12M

Previous: -$15M+20.1%
Operating Income

-$13.2M

Previous: -$15.2M+13.2%
Gross Profit

$46.2M

Previous: $40.9M+13.1%
Cash & Equivalents

$44.4M

Previous: $30.5M+45.5%
Total Assets

$701M

Previous: $754M-7.1%
R&D Expense

$8.52M

No prior period

Revenue & EPS history

Xometry · Revenue · Quarterly

$119M

Q3 2023+14.8%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Xometry · $105M total across 2 segments · Q1 2023

  • Marketplace
    $86.7M+34.6%
  • Supplier Services
    $18.6M-3.6%

Forward guidance

Xometry expects Q4 2023 revenue to be between $126 million and $130 million, representing a 28%-32% year-over-year growth. They also anticipate accelerating marketplace growth in the 40% range year-over-year.

Tailwinds

  • Expect Q4 revenue growth of 28%-32% year-over-year to $126-$130 million.
  • Expect accelerating marketplace growth in the 40% range year-over-year driven by strong Active Buyer and order growth.
  • Expanding marketplace functionality including recent Xometry Teamspace software launch
  • New partnership with Google Cloud. Leveraging Vertex AI, Xometry will accelerate the deployment of its instant-quoting capabilities to encompass the broadest and most comprehensive set of manufacturing technologies.
  • The Vertex AI platform will enable us to get to market faster with new offerings in entirely new categories, allowing us to become more indispensable to our customers and to our suppliers globally.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+3.9%

Avg return

Earnings day

+6.5%

Avg return

5 days after

+9.4%

Avg return

30 days after

60%

12 / 20 earnings

Positive

+40.8%

Q2 2024

Best reaction

-40.2%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+39.0%+48.8%+42.7%
Q4 2025-24.6%-28.2%-28.3%
Q3 2025+28.9%+33.4%+20.2%
Q1 2025+11.2%+10.9%+28.4%
Q4 2024-9.2%-12.7%-15.0%
Q3 2024+38.8%+38.7%+42.9%
Q2 2024+40.8%+60.2%+54.7%
Q1 2024+5.4%+6.5%-3.7%
Q4 2023-40.2%-45.4%-43.9%
Q3 2023-4.8%+11.7%+46.9%
Q2 2023+4.8%+6.6%+22.2%
Q1 2023+32.5%+30.8%+61.8%
Q4 2022-39.6%-39.4%-50.8%
Q3 2022-20.6%-11.0%-20.8%
Q2 2022+20.9%+19.3%+39.2%
Q1 2022+3.7%+3.6%+13.8%
Q4 2021+4.4%-10.0%-0.2%
Q3 2021+3.0%+19.3%+4.0%
Q4 2020-6.5%-8.0%-14.2%
Q2 2021-9.6%-4.7%-11.2%
Q1 2021
Q3 2020
Q2 2020
Q1 2020

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