Xometry, Inc. · NASDAQ:XMTR
Xometry — Q1 2024 Earnings Presentation
29 slides from Xometry's earnings presentation, May 9, 2024
Slide 1: AI-Enabled Marketplace Digitizing Manufacturing
AI-Enabled Marketplace Digitizing Manufacturing Q1 2024 Earnings Presentation | May 9, 2024 © 2024 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 2: Safe Harbor
Xometry | Q1 2024 Earnings Safe Harbor This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding the Company’s future results of operations and financial position, business strategy,
Slide 3: Rapid Growth, Digitizing & Transforming Manufacturing
Xometry | Q1 2024 Earnings Rapid Growth, Digitizing & Transforming Manufacturing $481M $187M LTM Revenue LTM Gross Profit • Q1 2024 increased, +16% YoY • Q1 2024 Gross Profit, +22% YoY • Q1 2024 Marketplace growth • Q1 2024 Marketplace Gross Margin +320bps YoY +24% YoY • Q1 2024 Marketplace Gross Pr
Slide 4: Key Highlights of the Quarter
Xometry | Q1 2024 Earnings Key Highlights of the Quarter Strong Q1 2024 Financial Progress on Key 2024: Strong Growth and Performance Growth Initiatives Increasing Efficiency Stronger than expected 16% revenue growth Focusing on enterprise, growing relationships Strong growth outlook in 2024; expect
Slide 5: Significant Growth at Scale
Xometry | Q1 2024 Earnings Significant Growth at Scale $ in millions Annual Revenue $123M Quarterly Revenue and YoY Growth • $395M Marketplace Revenue • $107M Marketplace Revenue • +30% YoY Marketplace Revenue Growth • +24% YoY Marketplace Revenue Growth • $15.5M Supplier Services Revenue $463 $123
Slide 6: Large and Growing Marketplace of Buyers and Suppliers
Xometry | Q1 2024 Earnings Large and Growing Marketplace of Buyers and Suppliers • Xometry's growth has been driven by efficiently matching supplier capacity with buyer demand Active Buyers1,2 Active Suppliers3,4 YoY 49% 44% 36% 32% YoY 43% 26% 36% Growth Growth ’20 – ’23 CAGR 43% 58,504 ’20 – ’23 C
Slide 7: Large, Sticky Customer Base
Xometry | Q1 2024 Earnings Large, Sticky Customer Base • Growth in Accounts with LTM spend of $50K reflects Xometry successfully embedding itself in customer supply chains • Reliable land and expand customer dynamics drive Xometry’s highly reoccurring revenue from existing customers Accounts with LT
Slide 8: Rapidly Growing Global Marketplace
Xometry | Q1 2024 Earnings Rapidly Growing Global Marketplace International Revenue Expanding Global Footprint Growth $60.1 +81% $33.2 YoY $19.3 $16.3 $11.4 EUROPE $3.1 +69% YoY EU HQ: Munich, FY20 FY21 FY22 FY23 1Q23 1Q24 Germany ASIA ASIA HQ: Shanghai, China International Revenue Split by 15 Langu
Slide 9: Increasing Value from Existing Marketplace Accounts
Xometry | Q1 2024 Earnings Increasing Value from Existing Marketplace Accounts1 Revenue $ in millions for global accounts New Account Cohorts Through 2023 New Accounts Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 2016 $3.3M $5.4M $7.6M $13.7M $21.1M $30.1M $35.6M $42.2M 2017 $5.6M $8.8M $
Slide 10: Strong Gross Profit Growth
Xometry | Q1 2024 Earnings Strong Gross Profit Growth $ in millions Annual Gross Profit and Margin Quarterly Gross Profit and Margin • 32.0% Marketplace Gross Margin Annual Gross Margin 23.5% 26.2% 38.3% 38.5% • 87.9% Supplier Services Gross Margin Annual Marketplace NA 25.1% 28.2% 30.8% Quarterly G
Slide 11: Strong Marketplace Metrics
Xometry | Q1 2024 Earnings Strong Marketplace Metrics Improving Advertising Efficiency Active Buyers1,2 Net Active Buyer Advertising % of Adds2 Marketplace Revenue 9.4% 4,042 3,884 3,889 • Q1 2024 net Active Buyer 58,504 8.0% 55,325 7.8% adds +8% QoQ 52,382 7.5% 7.4% 48,340 3,179 • Q1 advertising sp
Slide 12: Non-GAAP Operating Expenses, Investments in Sales and International
Xometry | Q1 2024 Earnings Non-GAAP Operating Expenses, Investments in Sales and International % of Revenue Sales and Operations and Product G&A1,2 Marketing1,3 Support1,4 Development1 13.2% 13.0% 10.8% 12.6% 10.3% 10.4% 6.0% 20.7% 11.7% 20.3% 9.7% 19.6% 9.5% 5.4% 5.4% 10.8% 18.4% 18.4% 8.9% 5.1% 10
Slide 13: Improving Operating Leverage
Xometry | Q1 2024 Earnings Improving Operating Leverage Adj. EBITDA1 and Margin (11.8)% (11.2)% (7.8)% (5.9)% (6.1)% (3.5)% (2.2)% FY22 FY23 1Q23 2Q23 3Q23 4Q23 1Q24 1. We define Adjusted EBITDA as net loss, adjusted for interest expense, interest and dividend income and other expenses, income tax p
Slide 14: Guidance
Xometry | Q1 2024 Earnings Guidance $ in millions Q2 2024 NOTE Low High • Expect Q2 2024 revenue growth of 14%-16% YoY to $127-$129 million. Expect Q2 2024 Marketplace growth of approximately 20% YoY. • Expect Q2 2024 Supplier Services to decrease by approximately 15% YoY. Revenue $127 $129 • Expect
Slide 15: Xometry Overview
Xometry Overview 15 © 2024 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 16: Xometry is Digitizing Manufacturing: Solutions for Buyers and Suppliers
Xometry | Q1 2024 Earnings Xometry is Digitizing Manufacturing: Solutions for Buyers and Suppliers Marketplace Supplier Services 58K+ Active Buyers1 7K+ Active Paying Suppliers2 AI-powered platform for Buyers to access custom manufacturing Advertising & Marketing and Financial Services 1. Active Buy
Slide 17: Custom Manufacturing is a Massive, Highly Inefficient Market
Xometry | Q1 2024 Earnings Custom Manufacturing is a Massive, Highly Inefficient Market Buyer Pain Points Supplier Pain Points Highly fragmented US manufacturing (600K+ Geographic isolation and limited access to Suppliers); 75% have <20 employees customers Inefficient, procurement process; difficult
Slide 18: Artificial Intelligence is at the Heart of Xometry's Platform
Xometry | Q1 2024 Earnings Expanding Our Competitive Moat Artificial Selection • Extensible technology Intelligence is platform adding manufacturing processes with no CAPEX at the Heart of Xometry’s Data Geography Platform • Machine learning continuing to improve • Broadening global footprint pricin
Slide 19: Growth Fueled by AI Powered Marketplace
Xometry | Q1 2024 Earnings Growth Fueled by AI Powered Marketplace YoY Active Buyers1 YoY Marketplace Revenue YoY Marketplace Gross Profit 48% CAGR 51% CAGR 70% CAGR 55,325 $394.8 $121.5 11,527 $75.5 $14.4 2019 2023 2019 2023 2019 2023 1. We define Active Buyers as the number of Buyers who have made
Slide 20: Thomas: A Leading Manufacturing Sourcing Platform
Xometry | Q1 2024 Earnings Thomas: A Leading Manufacturing Sourcing Platform Advertising & Marketing Services (AMS) Attractive Advertising Supported Platform Financial Profile AMS Revenue ~$63M FY23. ~5K Premium Paying Suppliers (Annual Subscription) Gross Margin 85%+ 1.4M Registered Users 79K Categ
Slide 21: Significant Penetration & Growth Opportunities
Xometry | Q1 2024 Earnings Significant Penetration & Growth Opportunities • Enhance experience for both Buyers and Suppliers • Grow leads and improve monetization with modernized pay-for- 500K performance ad platform Suppliers • Drive new paying Suppliers through revamped sales and product ~5K Q1 20
Slide 22: Growth and Long-Term Margin
Xometry | Q1 2024 Earnings Growth and Long-Term Margin Expand extensible marketplace Long-Term Margin Outlook2 with XOM AI Attract new Buyers and expand % of Revenue Sustained enterprise offerings Profitable Gross Margin 40 – 45% Growth Rapid International expansion Underpinned by… Operating Expense
Slide 23: Appendix
Appendix 23 © 2024 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 24: Adjusted EBITDA Reconciliation
Xometry | Q1 2024 Earnings Adjusted EBITDA Reconciliation $ in thousands (1) Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP results of operations. (2) Represents the non-cas
Slide 25: Reconciliation of Non-GAAP Operating Expenses – Sales and Marketing
Xometry | Q1 2024 Earnings Reconciliation of Non-GAAP Operating Expenses – Sales and Marketing $ in thousands (1) Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP results of o
Slide 26: Reconciliation of Non-GAAP Operating Expenses – Operations and Support
Xometry | Q1 2024 Earnings Reconciliation of Non-GAAP Operating Expenses – Operations and Support $ in thousands (1) Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP results o
Slide 27: Reconciliation of Non-GAAP Operating Expenses – Product Development
Xometry | Q1 2024 Earnings Reconciliation of Non-GAAP Operating Expenses – Product Development $ in thousands (1) Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP results of o
Slide 28: Reconciliation of Non-GAAP Operating Expenses – General and Administrative
Xometry | Q1 2024 Earnings Reconciliation of Non-GAAP Operating Expenses – General and Administrative $ in thousands (1) Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP resul
Slide 29: Reconciliation of Non-GAAP Cost of Revenue
Xometry | Q1 2024 Earnings Reconciliation of Non-GAAP Cost of Revenue $ in thousands (1) Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP results of operations. 29 © 2024 Xome