Xometry, Inc. Reports Second Quarter 2021 Results

August 12, 2021

Reports 45% Growth in Year-Over-Year Revenue

ROCKVILLE, Md., Aug. 12, 2021 (GLOBE NEWSWIRE) -- Xometry, Inc. (NASDAQ:XMTR), a leading AI-enabled marketplace for on-demand manufacturing, today reported financial results for the second quarter ended June 30, 2021, including the following highlights:

  • Revenue grew 45% year-over-year from $34.8 million as of June 30, 2020 to $50.6 million as of June 30, 2021.
  • Active Buyers increased 66% from 14,460 as of June 30, 2020 to 23,942 as of June 30, 2021.
  • Percentage of Revenue From Existing Accounts was 95%.
  • Accounts with Last Twelve-Months Spend of at least $50,000 increased 54% from 330 as of June 30, 2020 to 508 as of June 30, 2021.
  • Gross Profit increased 44% year-over-year to $11.9 million as of June 30, 2021, as compared to $8.3 million as of June 30, 2020.
  • Net loss was $12.3 million for the quarter, an increase of $6.1 million year-over-year, and Adjusted EBITDA was negative $9.1 million for the quarter, reflecting an increase of $4.3 million year-over-year. Net loss for Q2 2021 includes $2.0 million of stock-based compensation expense. 
  • Cash and cash equivalents was $37.4 million at quarter end with $15.9 million in debt outstanding. On July 2, 2021, we completed our initial public offering, raising net proceeds of $325.3 million after deducting underwriting discounts and commissions.

“Buyers and sellers around the world are choosing the Xometry marketplace for on-demand manufacturing,” said Randy Altschuler, Xometry’s CEO. “Our focus is making it easier for our buyers to source customized manufacturing and enabling our sellers to more efficiently find jobs and run their operations in this massive, highly fragmented market.” 

“Second quarter results were strong across all key metrics. We delivered 45% year-over-year revenue growth, 66% year-over-year active buyer growth and sequentially improved gross margin over the first quarter of 2021.  While we are proud of these results, we are even prouder of the team that got us here, of the business we have built together, and of the great experiences that we deliver to our customers.” 

Unaudited Financial Summary
(In thousands, except per share amounts)
  For the Three Months
Ended June 30,
     For the Six Months
Ended June 30,
  2021  2020  %
  2021  2020  %
Revenue $50,589  $34,783   45% $94,510  $61,472   54%
Gross Profit  11,875   8,265   44%  21,710   13,631   59%
Net Loss  (12,264)  (6,119)  100%  (22,765)  (14,726)  55%
EPS—basic and diluted  (1.46)  (0.82)  78%  (2.79)  (1.99)  40%
Adjusted EBITDA (Non-GAAP1)  (9,073)  (4,788)  89%  (17,882)  (12,303)  45%

(1)   These non-GAAP financial measures, and reasons why we believe these non-GAAP financial measures are useful, are described below and reconciled to their most directly comparable GAAP measures in the accompanying tables.

Key Operating Metrics:

  As of June 30, 
  2021  2020  %
Active Buyers(2)  23,942   14,460   66%
Percentage of Revenue from Existing Accounts(2)  95%  94%  1%
Accounts with Last Twelve-Months Spend of at Least $50,000(2)  508   330   54%

(2)   Amounts shown for Active Buyers and Accounts with Last Twelve-Months Spend of at Least $50,000 are as of June 30, 2021 and 2020, and Percentage of Revenue from Existing Accounts is presented for the quarters ended June 30, 2021 and 2020.

Subsequent to Second Quarter 2021

On July 2, 2021, we closed our planned initial public offering ("IPO"), in which we issued and sold 7,906,250  shares of our Class A common stock. The initial offering price was $44.00 per share. We received net proceeds of approximately $325.3 million from the IPO after deducting underwriting discounts and commissions of $22.6 million.

Upon the closing of the IPO on July 2, 2021, 8,665,797 shares of our outstanding common stock were reclassified into Class A common stock, 27,758,941 shares of our outstanding convertible preferred stock were converted into Class A common stock, and 2,676,154 shares of Class A common stock were exchanged by our co-founders for an equivalent number of shares of Class B common stock pursuant to the terms of the exchange agreement.

Also on July 2, 2021, the Company reserved 402,658 shares of its Class A common stock, representing 1% of the Company's fully diluted capitalization as of the date of approval of our board of directors, for charitable contributions to non-profit organizations. These shares will be issued over the next five years, in an amount not to exceed 20% of the initial reserve amount per calendar year.

On July 9, 2021, we repaid our $15.9 million term loan outstanding and recorded a loss on extinguishment of approximately $0.3 million.

Financial Guidance and Outlook:

  Q3 2021  FY  2021 
  (in millions) 
  Low  High  Low   High 
Revenue $53.0  $55.0  $207.5  $211.5 
Adjusted EBITDA $(13.0) $(12.0) $(43.0) $(41.0)
  • In 2020, one customer, that produces masks, accounted for approximately 11% of our revenue with a majority of that revenue recognized in Q3 2020. Excluding revenue from that one customer, growth is expected to range between 66%-72% for Q3 2021, as compared to Q3 2020.

Use of Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), Xometry, Inc. ("Xometry", the "Company", "we" or "our") uses Adjusted EBITDA, a non-GAAP financial measure, as described below. This non-GAAP financial measure is presented to enhance the user’s overall understanding of Xometry’s financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The non-GAAP financial measure presented in this release, together with the GAAP financial results, are the primary measures used by the Company’s management and board of directors to understand and evaluate the Company’s financial performance and operating trends, including period-to-period comparisons, because they exclude certain expenses and gains that management believes are not indicative of the Company’s core operating results. Management also uses this measure to prepare and update the Company’s short and long term financial and operational plans, to evaluate investment decisions, and in its discussions with investors, commercial bankers, equity research analysts and other users of the Company’s financial statements. Accordingly, the Company believes that this non-GAAP financial measure provides useful information to investors and others in understanding and evaluating the Company’s operating results in the same manner as the Company’s management and in comparing operating results across periods and to those of Xometry’s peer companies.

The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense, or cash flows, that affect the Company’s financial performance and operations. An additional limitation of non-GAAP financial measures is that they do not have standardized meanings, and therefore other companies, including peer companies, may use the same or similarly named measures but exclude or include different items or use different computations. Management compensates for these limitations by reconciling these non-GAAP financial measures to their most comparable GAAP financial measures in the tables captioned “Reconciliations of Non-GAAP Financial Measures” included at the end of this release. Investors and others are encouraged to review the Company’s financial information in its entirety and not rely on a single financial measure.

Key Terms for our Key Metrics and Non-GAAP Financial Measures

The Company defines Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) as net income (loss) excluding interest (income) expense, income tax expense (benefit), and certain other non-cash or non-recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, stock-based compensation and impairment charges. Management believes that the exclusion of certain expenses and gains in calculating Adjusted EBITDA provides a useful measure for period-to-period comparisons of the Company’s underlying core revenue and operating costs that is focused more closely on the current costs necessary to operate the Company’s businesses, and reflects its ongoing business in a manner that allows for meaningful analysis of trends. Management also believes that excluding certain non-cash charges can be useful because the amounts of such expenses is the result of long-term investment decisions made in previous periods rather than day-to-day operating decisions.

Active Buyers: The Company defines “buyers” as individuals who have placed an order to purchase on-demand parts or assemblies on our platform.  The Company defines Active Buyers as the number of buyers who have made at least one purchase on our marketplace during the last twelve months.

Percentage of Revenue from Existing Accounts: The Company defines “accounts” as an individual entity, such as a sole proprietor with a single buyer or corporate entities with multiple buyers, having purchased at least one part on our marketplace. The Company defines an existing account as an account where at least one buyer has made a purchase on our marketplace.

Accounts with Last Twelve-Month Spend of At Least $50,000: The Company defines Accounts with Last Twelve-Month Spend of At Least $50,000 as an account that has spent at least $50,000 on our marketplace in the most recent twelve-month period.

About Xometry

Xometry, Inc. (NASDAQ: XMTR) is a leading AI-enabled marketplace for on demand manufacturing, transforming one of the largest industries in the world. Xometry uses its proprietary technology to create a marketplace that enables buyers to efficiently source on-demand manufactured parts and assemblies, and empowers sellers of manufacturing services to grow their businesses. Xometry's buyers range from self-funded startups to Fortune 100 companies. Learn more at www.xometry.com or follow @xometry.

Conference Call

The Company will discuss its second quarter and year to date financial results during a teleconference on (8/12/2021), at (5:00 PM ET/2:00 PM PT). The conference call can be accessed in the U.S. at (877-313-2061) or outside the U.S. at (470-495-9537) with the conference ID# (8195399). A live audio webcast of the call will also be available simultaneously at investors.xometry.com. Following completion of the call, a recorded replay of the teleconference will be available in the investor relations section of Xometry's website. The earnings webcast presentation will be archived within the Investor Relations section of Xometry's website. 

Cautionary Information Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this press release include, but are not limited to, our beliefs regarding our financial position and operating performance, including our outlook and guidance for the third quarter and full year 2021, and demand for our marketplace in general. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks and uncertainties related to: competition, managing our growth, financial performance, including the impact of the COVID-19 pandemic on our business and operations and our ability to forecast our performance due to our limited operating history and the COVID-19 pandemic, investments in new products or offerings, our ability to attract buyers and sellers to our marketplace, legal proceedings and regulatory matters and developments, any future changes to our business or our financial or operating model, and our brand and reputation. The forward-looking statements contained in this press release are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted, including those more fully described in our filings with the SEC, including our Quarterly Report on Form 10-Q for the period ended June 30, 2021. All forward-looking statements in this press release are based on information available to Xometry and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.

# # #
(Tables Follow)

Investor Contact: Media Contact:
Shawn Milne
VP Investor Relations
Ted Weismann
fama PR for Xometry

Xometry, Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)

  June 30,
  December 31,
Current assets:      
Cash and cash equivalents $37,351  $59,874 
Accounts receivable, less allowance for doubtful accounts of $0.6 million as of June 30, 2021 and December 31, 2020  21,432   14,574 
Inventory  1,503   2,294 
Prepaid expenses  6,183   913 
Other current assets  26,462    
Total current assets  92,931   77,655 
Property and equipment, net  7,638   6,113 
Operating lease right-of-use assets  2,275   1,922 
Other assets  285   788 
Intangible assets, net  1,521   1,652 
Goodwill  833   833 
Total assets $105,483  $88,963 
Liabilities, convertible preferred stock and stockholders’ equity      
Current liabilities:      
Accounts payable $13,138  $5,640 
Accrued expenses  39,200   13,606 
Contract liabilities  4,252   2,355 
Operating lease liabilities, current portion  920   1,013 
Finance lease liabilities, current portion  8   14 
Short-term debt  15,864   15,753 
Total current liabilities  73,382   38,381 
Operating lease liabilities, net of current portion  1,573   1,118 
Total liabilities  74,955   39,499 
Commitments and contingencies (Note 13)      
Convertible preferred stock      
Convertible preferred stock- Seed-1, $0.000001 par value. 4,200,000 shares authorized, issued and outstanding as of June 30, 2021 and December 31, 2020  4,200   4,200 
Convertible preferred stock- Seed-2, $0.000001 par value. 2,188,322 shares authorized, issued and outstanding as of June 30, 2021 and December 31, 2020  2,998   2,998 
Convertible preferred stock- Series A-1, $0.000001 par value. 4,211,094 shares authorized, issued and outstanding as of June 30, 2021 and December 31, 2020  8,704   8,704 
Convertible preferred stock- Series A-2, $0.000001 par value. 1,591,230 shares authorized, issued and outstanding as of June 30, 2021 and December 31, 2020  12,839   12,839 
Convertible preferred stock- Series B, $0.000001 par value. 4,132,055 shares authorized and 4,044,271 issued and outstanding as of June 30, 2021 and December 31, 2020  20,347   20,347 
Convertible preferred stock- Series C, $0.000001 par value. 3,754,201 shares authorized, issued and outstanding as of June 30, 2021 and December 31, 2020  26,004   26,004 
Convertible preferred stock- Series D, $0.000001 par value. 5,494,064 authorized, issued and outstanding as of June 30, 2021 and December 31, 2020  54,864   54,864 
Convertible preferred stock- Series E, $0.000001 par value. 2,400,000 shares authorized and 2,275,759 shares issued and outstanding as of June 30, 2021 and December 31, 2020  30,757   30,757 
Stockholders’ deficit      
Common stock, $0.000001 par value. Authorized 42,000,000; 8,665,797 and 7,755,782 shares issued and outstanding as of June 30, 2021 and December 31, 2020      
Additional paid-in capital  4,315   503 
Accumulated other comprehensive income  227   210 
Accumulated deficit  (134,727)  (111,962)
Total stockholders’ deficit  (130,185)  (111,249)
Total liabilities, convertible preferred stock and stockholders’ equity $105,483  $88,963 

Xometry, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share amounts)

  Three Months Ended
June 30,
  Six Months Ended
June 30,
  2021  2020  2021  2020 
Revenue $50,589  $34,783  $94,510  $61,472 
Cost of revenue  38,714   26,518   72,800   47,841 
Gross profit  11,875   8,265   21,710   13,631 
Sales and marketing  8,858   5,126   16,422   9,856 
Operations and support  5,489   3,173   9,820   6,466 
Product development  4,091   2,919   7,755   5,877 
General and administrative  5,238   2,773   9,562   5,510 
Total operating expenses  23,676   13,991   43,559   27,709 
Loss from operations  (11,801)  (5,726)  (21,849)  (14,078)
Other expenses            
Interest expense, net  (350)  (264)  (681)  (417)
Other expenses  (113)  (129)  (235)  (231)
Total other expenses  (463)  (393)  (916)  (648)
Net loss  $(12,264) $(6,119) $(22,765) $(14,726)
Net loss per share, basic and diluted $(1.46) $(0.82) $(2.79) $(1.99)
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted  8,390,088   7,473,918   8,158,753   7,414,295 
Comprehensive (loss) income:            
Foreign currency translation $(13) $22  $17  $(27)
Total other comprehensive (loss) income  (13)  22   17   (27)
Net loss  (12,264)  (6,119)  (22,765)  (14,726)
Total comprehensive loss $(12,277) $(6,097) $(22,748) $(14,753)

Xometry, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)

  Six Months Ended
June 30,
  2021  2020 
Cash flows from operating activities:      
Net loss $(22,765) $(14,726)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization  1,487   1,389 
Reduction in carrying amount of right-of-use asset  543   509 
Stock based compensation  2,480   386 
Non-cash interest expense  111   156 
Changes in other assets and liabilities:      
Accounts receivable, net  (6,874)  (768)
Inventory  778   (772)
Prepaid expenses  (5,270)  (3)
Other assets  500   13 
Accounts payable  7,522   (260)
Accrued expenses  (453)  2,080 
Contract liabilities  1,915   790 
Lease liabilities  (534)  (444)
Net cash used in operating activities  (20,560)  (11,650)
Cash flows from investing activities:      
Purchase of short-term investments  -   (17,711)
Proceeds from short-term investments  -   28,571 
Purchases of property and equipment  (2,748)  (1,966)
Net cash (used in) provided by investing activities  (2,748)  8,894 
Cash flows from financing activities:      
Proceeds from stock options exercised  1,332   163 
Proceeds from term loan  -   4,000 
Proceeds from other borrowings  -   4,783 
Payments on finance lease obligations  (6)  (6)
Payments in connection with initial public offering  (524)  - 
Net cash provided by financing activities  802   8,940 
Effect of foreign currency translation on cash and cash equivalents  (17)  (2)
Net (decrease) increase in cash and cash equivalents  (22,523)  6,182 
Cash and cash equivalents at beginning of period  59,874   40,122 
Cash and cash equivalents at end of period $37,351  $46,304 
Supplemental cash flow information:      
Cash paid for interest $659  $605 
Non-cash investing activity:      
Non-cash purchase of property and equipment $(150) $- 
Non-cash financing activity:      
Non-cash amounts incurred in connection with initial public offering $(25,938) $- 

Xometry, Inc. and Subsidiaries
Unaudited Reconciliations of Non-GAAP Financial Measures
(In thousands)

  Three Months Ended June 30,  Six Months Ended June 30, 
  2021  2020  2021  2020 
Adjusted EBITDA:            
Net loss $(12,264) $(6,119) $(22,765) $(14,726)
Add (deduct):            
Interest and other expense  463   393   916   648 
Depreciation and amortization(1)  753   700   1,487   1,389 
Stock-based compensation(2)  1,975   238   2,480   386 
Adjusted EBITDA $(9,073) $(4,788) $(17,882) $(12,303)

(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 expense related to stock-based awards granted to employees, as included in the Company’s GAAP results of operations. 

Xometry, Inc. and Subsidiaries
Unaudited Segment Results
(In thousands)

  Three Months Ended June 30,  Six Months Ended June 30, 
  2021  2020  2021  2020 
Segment Revenue:            
U.S. $47,228  $34,135  $88,526  $60,393 
Europe  3,361   648   5,984   1,079 
Total revenue $50,589  $34,783  $94,510  $61,472 
Segment Net Loss:            
U.S. $(9,440) $(4,548) $(17,602) $(11,991)
Europe  (2,824)  (1,571)  (5,163)  (2,735)
Total net loss $(12,264) $(6,119) $(22,765) $(14,726)

Xometry, Inc. and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Balance Sheet
(In thousands)

The following unaudited pro forma condensed consolidated balance sheet is provided to reflect our cash and capitalization had the IPO occurred on June 30, 2021. The following adjustments have been reflected in the pro forma balance sheet below:

  1. The issuance of 7,906,250 shares of Class A common stock in connection with the IPO and the receipt of $325.3 million of net cash proceeds;
  2. The repayment of our $15.9 million term loan outstanding;
  3. The reclassification and payment of all deferred IPO related costs recorded in Other current assets ($26.5 million) and Accrued expenses ($25.9 million) to Additional paid-in capital (not included is the payment of our remaining IPO related costs which we estimate to be between $3.4 million and $4.4 million);
  4. The conversion of 8,665,797 shares of our common stock to Class A common stock;
  5. The conversion of 27,758,941 shares of our convertible preferred stock to Class A common stock; and
  6. The exchange of 2,676,154 shares of Class A common stock held by our co-founders for an equivalent number of shares of Class B common stock.  

Xometry, Inc. and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Balance Sheet - continued
(In thousands)

        Unaudited Pro
  Unaudited     Forma 
  Condensed     Condensed  
  Consolidated     Consolidated 
  Balance Sheet     Balance Sheet 
  June 30,      June 30, 
  2021  Adjustments  2021 
Cash and cash equivalents $37,351  $309,399 (1)(2)$346,750 
Accounts receivable  21,432   -   21,432 
Other current assets  34,148   (26,462)(3) 7,686 
Total current assets  92,931   282,937   375,868 
Property and equipment, net and operating lease right-of-use assets  9,913   -   9,913 
Other assets  2,639   -   2,639 
Total assets $105,483  $282,937  $388,420 
Accounts payable $13,138  $-  $13,138 
Accrued expenses  39,200   (25,938)(3) 13,262 
Other current liabilities  5,180   -   5,180 
Short-term debt  15,864   (15,864)(2) - 
Total current liabilities  73,382   (41,802)  31,580 
Operating lease liabilities, net of current portion  1,573   -   1,573 
Total liabilities  74,955   (41,802)  33,153 
Convertible preferred stock - $0.000001 par value, 27,970,966 authorized, 27,758,941 issued and outstanding  160,713   (160,713)(5) - 
Common stock - $0.000001 par value, 42,000,000 authorized, 8,665,797 issued and outstanding  -   - (4) - 
Preferred stock - $0.000001 par value, 50,000,000 authorized, none issued and outstanding, pro forma  -   -   - 
Class A common stock - $0.000001 par value, 750,000,000 authorized, 41,654,834 issued and outstanding, pro forma  -   - (4)(5) - 
Class B common stock - $0.000001 par value, 5,000,000 authorized, 2,676,154 issued and outstanding, pro forma  -   - (6) - 
Additional paid-in capital  4,315   485,452   489,767 
Accumulated other comprehensive income  227   -   227 
Accumulated deficit  (134,727)  -   (134,727)
Total stockholders' (deficit) equity  (130,185)  485,452   355,267 
Total liabilities and stockholders' equity $105,483  $282,937  $388,420 

Xometry, Inc. and Subsidiaries
Unaudited Supplemental Information
(In thousands)

  Three Months Ended June 30,  Six Months Ended June 30, 
  2021  2020  2021  2020 
Summary of Stock-based Compensation Expense            
Sales and marketing $302  $37  $355  $60 
Operations and support  590   61   694   99 
Product development  417   88   491   143 
General and administrative  666   52   940   84 
Total stock-based compensation expense $1,975  $238  $2,480  $386 
Summary of Depreciation and Amortization Expense            
Cost of revenue $12  $58  $49  $118 
Sales and marketing  30   174   61   347 
Operations and support  56   47   88   98 
Product development  631   350   1,240   706 
General and administrative  24   71   49   120 
Total depreciation and amortization expense $753  $700  $1,487  $1,389