NASDAQ$XMTR

Xometry Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Xometry reported strong marketplace growth and implemented a strategic plan to drive future growth and reduce operating expenses.

Xometry's Q4 2022 revenue increased by 46% year-over-year, driven by marketplace growth of 32% and the acquisition of Thomas. The company is implementing a 5-point strategic plan to focus on top accounts, expand the marketplace menu, grow internationally, drive adoption of new products, and reduce operating expenses.

  • Q4 revenue increased 46% year-over-year, driven by 32% marketplace growth and supplier services including the acquisition of Thomas.
  • Q4 gross profit increased 72% year-over-year, driven by 30% growth in marketplace gross profit and the addition of Thomas, partly offset by price optimization efforts.
  • The company expects Q1 revenue growth of 20%-22% year-over-year, reaching $100-$102 million, driven by healthy marketplace growth.
  • Q4 Adjusted EBITDA loss was $14.2 million, reflecting a revenue shortfall and lower gross margins. The company expects improved operating leverage through expense reduction, including a 6% workforce reduction in January 2023.

Headline financials

Total Revenue

$98.2M

Previous: $67.1M+46.3%
EPS (adj)

-$0.29

Previous: -$0.38+23.7%
Active Buyers

40.7K

Previous: 28.1K+44.6%
Capital Expenditures

$4.04M

Previous: $1.64M+146.9%
Free Cash Flow

-$21.1M

Previous: -$32.8M+35.7%
Net Income

-$24.4M

Previous: -$23.9M-2.2%
Operating Income

-$24.3M

Previous: -$22.6M-7.7%
Gross Profit

$36M

Previous: $20.9M+72.4%
Cash & Equivalents

$319M

Previous: $86.3M+270.3%
Total Assets

$737M

Previous: $503M+46.6%
Stock-Based Comp

$5.12M

Previous: $2.65M+93.5%

Revenue & EPS history

Xometry · Revenue · Quarterly

$98.2M

Q4 2022+46.3%vs Q4 2021
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 anticipates revenue between $100 million and $102 million and adjusted EBITDA loss between $11 million and $9 million for Q1 2023. For the full year 2023, Xometry projects revenue between $470 million and $480 million and adjusted EBITDA loss between $22 million and $20 million.

Tailwinds

  • Expect Q1 revenue growth of 20%-22% year-over-year to $100-$102 million.
  • Healthy marketplace growth in the mid to high 20% range year-over-year is expected.
  • Improved operating leverage is anticipated going forward.
  • Steps are being taken to lower operating expenses.
  • A 6% reduction in workforce was implemented in January 2023.

Headwinds

  • Revenue shortfall in Q4.
  • Lower gross margins quarter-over-quarter in Q4.
  • Adjusted EBITDA loss of $14.2 million in Q4.
  • Macroeconomic conditions are increasingly challenging.
  • Forward-looking statements are subject to change and outside of the company's control.

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 Q4 2022

Historical avgQ4 2022

+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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