10-Q
0.0000010.000001P3Y0.0000010.0000010.0000010.0000010.0000010.0000010.0000010.0000010.000001Q3false--12-310.00000100016575730001657573us-gaap:IPOMemberus-gaap:CommonClassAMember2021-07-020001657573us-gaap:TechnologyEquipmentMember2020-12-310001657573us-gaap:CustomerRelationshipsMember2020-12-310001657573us-gaap:RetainedEarningsMember2020-07-012020-09-300001657573srt:MaximumMember2021-01-012021-09-300001657573us-gaap:TradeNamesMember2021-09-300001657573us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001657573us-gaap:IPOMember2021-07-012021-09-300001657573us-gaap:LeaseholdImprovementsMember2021-09-300001657573xmtr:BusinessImprovementSystemsIncMemberxmtr:ConsultingAgreementMember2021-07-012021-09-300001657573xmtr:HerculesCapitalIncMemberus-gaap:PrimeRateMemberxmtr:TermLoanMemberxmtr:AmendedAndRestatedLoanAndSecurityAgreementMember2021-01-012021-09-300001657573us-gaap:SellingAndMarketingExpenseMember2020-07-012020-09-300001657573xmtr:BigBlueSawLlcMemberus-gaap:SubsequentEventMemberxmtr:AssetPurchaseAgreementMember2021-11-010001657573us-gaap:CommonClassAMember2021-09-300001657573us-gaap:CommonStockMemberus-gaap:IPOMember2021-01-012021-09-300001657573us-gaap:SoftwareDevelopmentMember2020-12-3100016575732021-01-012021-09-3000016575732020-07-012020-09-300001657573country:US2021-09-300001657573us-gaap:RetainedEarningsMember2021-01-012021-09-300001657573us-gaap:DomesticCountryMember2020-12-310001657573xmtr:BusinessImprovementSystemsIncMemberxmtr:ConsultingAgreementMember2020-01-012020-09-300001657573us-gaap:ForeignCountryMember2020-12-310001657573xmtr:ConvertiblePreferredStockSeriesEMember2020-12-310001657573us-gaap:DevelopedTechnologyRightsMember2021-09-300001657573us-gaap:FurnitureAndFixturesMember2021-09-300001657573us-gaap:CostOfSalesMember2021-07-012021-09-300001657573us-gaap:CostOfSalesMember2020-01-012020-09-300001657573xmtr:ConvertiblePreferredStockSeriesCMember2020-12-310001657573us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001657573us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300001657573us-gaap:LeaseholdImprovementsMember2021-01-012021-09-300001657573xmtr:VendorRelationshipsMember2021-01-012021-09-300001657573xmtr:VendorRelationshipsMember2020-12-3100016575732020-01-012020-12-310001657573us-gaap:AdditionalPaidInCapitalMemberus-gaap:IPOMember2021-01-012021-09-300001657573xmtr:OperationsAndSupportMember2020-01-012020-09-300001657573xmtr:ProductDevelopmentMember2020-01-012020-09-300001657573us-gaap:CommonStockMember2021-06-300001657573us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-09-300001657573xmtr:VendorRelationshipsMember2020-01-012020-12-310001657573us-gaap:AdditionalPaidInCapitalMember2020-06-300001657573us-gaap:AdditionalPaidInCapitalMemberus-gaap:IPOMember2021-07-012021-09-300001657573us-gaap:CommonClassBMember2021-09-300001657573xmtr:HerculesCapitalIncMemberxmtr:TermLoanMemberxmtr:AmendedAndRestatedLoanAndSecurityAgreementMember2020-01-300001657573us-gaap:CommonClassAMember2021-07-012021-09-300001657573us-gaap:RetainedEarningsMember2021-09-300001657573xmtr:ConvertiblePreferredStocksSeedOneSeedTwoSeriesAOneSeriesATwoSeriesBSeriesCSeriesDSeriesEMember2021-06-300001657573us-gaap:CustomerRelationshipsMember2020-01-012020-12-310001657573us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMember2020-01-012020-12-3100016575732019-12-310001657573us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001657573srt:MinimumMember2021-01-012021-09-300001657573us-gaap:DevelopedTechnologyRightsMember2020-01-012020-12-310001657573us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001657573us-gaap:CommonStockMember2020-06-300001657573us-gaap:SellingAndMarketingExpenseMember2021-07-012021-09-300001657573us-gaap:TradeNamesMember2020-01-012020-12-310001657573us-gaap:NoncompeteAgreementsMember2020-12-310001657573xmtr:OneYearLeaseTerminationMember2021-09-300001657573xmtr:ConvertiblePreferredStockSeriesBMember2020-12-310001657573xmtr:OperationsAndSupportMember2021-01-012021-09-300001657573xmtr:BusinessImprovementSystemsIncMemberxmtr:ConsultingAgreementMember2020-12-310001657573srt:AffiliatedEntityMember2021-01-012021-09-300001657573xmtr:ConvertiblePreferredStockSeedOneMember2020-12-310001657573us-gaap:SubsequentEventMemberxmtr:AssetPurchaseAgreementMemberxmtr:FusiformIncMember2021-11-052021-11-050001657573us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001657573xmtr:ConvertiblePreferredStockSeedTwoMember2020-12-310001657573xmtr:SeriesBConvertiblePreferredStockMemberxmtr:HerculesCapitalIncMemberxmtr:AmendedAndRestatedLoanAndSecurityAgreementMember2020-01-012020-01-3000016575732020-09-300001657573us-gaap:CommonStockMember2020-09-300001657573us-gaap:CommonStockMember2020-12-310001657573us-gaap:CommonClassBMember2021-07-0200016575732021-07-022021-07-020001657573country:US2020-01-012020-09-300001657573us-gaap:FurnitureAndFixturesMember2021-01-012021-09-300001657573xmtr:ConvertiblePreferredStockSeriesAOneMember2020-12-310001657573xmtr:ThreeYearLeaseFacilityMember2021-06-300001657573us-gaap:WarrantMember2020-01-012020-09-300001657573xmtr:ConvertiblePreferredStockSeriesDMember2020-12-310001657573xmtr:ConvertiblePreferredStocksSeedOneSeedTwoSeriesAOneSeriesATwoSeriesBSeriesCSeriesDSeriesEMember2020-06-300001657573us-gaap:CommonStockMember2020-07-012020-09-300001657573us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001657573us-gaap:RetainedEarningsMember2020-12-310001657573us-gaap:CommonStockMember2021-01-012021-09-300001657573us-gaap:SellingAndMarketingExpenseMember2020-01-012020-09-3000016575732021-04-012021-04-300001657573xmtr:VendorRelationshipsMember2021-09-300001657573xmtr:TwoThousandSixteenEquityIncentivePlanMember2021-01-012021-09-300001657573xmtr:BigBlueSawLlcMemberus-gaap:SubsequentEventMemberxmtr:AssetPurchaseAgreementMemberus-gaap:CommonClassAMember2021-11-012021-11-010001657573us-gaap:PatentsMember2020-12-310001657573xmtr:BusinessImprovementSystemsIncMemberxmtr:ConsultingAgreementMember2020-07-012020-09-300001657573us-gaap:CommonClassAMember2020-12-310001657573us-gaap:AdditionalPaidInCapitalMember2021-06-300001657573us-gaap:NoncompeteAgreementsMember2021-01-012021-09-300001657573srt:AffiliatedEntityMember2020-07-012020-09-300001657573us-gaap:IPOMemberxmtr:ConvertiblePreferredStocksSeedOneSeedTwoSeriesAOneSeriesATwoSeriesBSeriesCSeriesDSeriesEMember2021-07-012021-09-300001657573us-gaap:AdditionalPaidInCapitalMember2020-12-3100016575732021-08-012021-08-310001657573us-gaap:GeneralAndAdministrativeExpenseMember2020-07-012020-09-300001657573srt:EuropeMember2020-01-012020-09-300001657573country:US2021-01-012021-09-300001657573us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2021-07-012021-09-300001657573us-gaap:CommonClassAMember2021-01-012021-09-300001657573us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-01-012021-09-300001657573srt:MaximumMember2021-09-300001657573us-gaap:PatentsMember2021-01-012021-09-300001657573us-gaap:IPOMember2021-01-012021-09-300001657573us-gaap:EquipmentMember2020-12-310001657573us-gaap:RetainedEarningsMember2020-09-300001657573xmtr:ConvertiblePreferredStocksSeedOneSeedTwoSeriesAOneSeriesATwoSeriesBSeriesCSeriesDSeriesEMember2020-01-012020-09-300001657573srt:AffiliatedEntityMember2020-12-310001657573us-gaap:IPOMember2021-07-0200016575732021-06-300001657573us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001657573xmtr:TwoThousandTwentyOneEquityIncentivePlanMember2021-07-020001657573us-gaap:RetainedEarningsMember2020-06-300001657573us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001657573xmtr:BusinessImprovementSystemsIncMemberxmtr:ConsultingAgreementMember2021-09-300001657573xmtr:HerculesCapitalIncMemberxmtr:TermLoanIfRepaidPriorToNovemberOneTwentyTwentyOneMemberxmtr:AmendedAndRestatedLoanAndSecurityAgreementMember2021-09-300001657573us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001657573us-gaap:CommonStockMemberus-gaap:IPOMember2021-07-012021-09-300001657573us-gaap:DevelopedTechnologyRightsMember2021-01-012021-09-300001657573us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2020-07-012020-09-300001657573us-gaap:CommonClassBMemberus-gaap:IPOMember2021-07-022021-07-020001657573us-gaap:CommonClassBMember2020-12-310001657573us-gaap:CommonClassAMember2021-07-020001657573xmtr:BigBlueSawLlcMemberus-gaap:SubsequentEventMemberxmtr:AssetPurchaseAgreementMember2021-11-012021-11-010001657573xmtr:TwoThousandSixteenEquityIncentivePlanMember2021-09-300001657573us-gaap:EquipmentMember2021-09-300001657573xmtr:BusinessImprovementSystemsIncMemberxmtr:ConsultingAgreementMember2021-01-012021-09-300001657573us-gaap:DevelopedTechnologyRightsMember2020-12-310001657573us-gaap:FairValueInputsLevel1Member2021-09-300001657573xmtr:HerculesCapitalIncMembersrt:MaximumMemberxmtr:TermLoanMemberxmtr:AmendedAndRestatedLoanAndSecurityAgreementMember2021-09-300001657573us-gaap:CommonClassBMember2021-07-022021-07-020001657573xmtr:ConvertiblePreferredStockSeriesATwoMember2020-12-310001657573xmtr:ProductDevelopmentMember2021-01-012021-09-300001657573xmtr:ProductDevelopmentMember2021-07-012021-09-300001657573xmtr:ConvertiblePreferredStocksSeedOneSeedTwoSeriesAOneSeriesATwoSeriesBSeriesCSeriesDSeriesEMember2020-07-012020-09-300001657573us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-09-300001657573us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001657573us-gaap:SubsequentEventMemberxmtr:AssetPurchaseAgreementMemberus-gaap:CommonClassAMemberxmtr:FusiformIncMember2021-11-052021-11-050001657573xmtr:OperationsAndSupportMember2020-07-012020-09-300001657573xmtr:ToolsMember2020-12-310001657573us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001657573us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001657573us-gaap:SellingAndMarketingExpenseMember2021-01-012021-09-300001657573xmtr:ConvertiblePreferredStocksSeedOneSeedTwoSeriesAOneSeriesATwoSeriesBSeriesCSeriesDSeriesEMember2019-12-310001657573us-gaap:CommonStockMember2020-01-012020-09-300001657573us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-3000016575732021-09-3000016575732021-04-300001657573us-gaap:CostOfSalesMember2020-07-012020-09-300001657573us-gaap:EquipmentMember2021-01-012021-09-3000016575732021-07-020001657573xmtr:BusinessImprovementSystemsIncMemberxmtr:ConsultingAgreementMember2018-02-012018-02-280001657573us-gaap:LeaseholdImprovementsMember2020-12-310001657573us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001657573us-gaap:CustomerRelationshipsMember2021-01-012021-09-300001657573us-gaap:TechnologyEquipmentMember2021-09-300001657573us-gaap:CommonClassBMemberus-gaap:IPOMember2021-07-012021-09-300001657573us-gaap:RestrictedStockUnitsRSUMemberxmtr:TwoThousandTwentyOneEquityIncentivePlanMember2021-01-012021-09-300001657573us-gaap:SubsequentEventMemberxmtr:AssetPurchaseAgreementMemberxmtr:FusiformIncMember2021-11-050001657573us-gaap:AdditionalPaidInCapitalMember2021-09-3000016575732020-01-012020-09-300001657573xmtr:HerculesCapitalIncMemberxmtr:TermLoanMemberxmtr:AmendedAndRestatedLoanAndSecurityAgreementMember2021-09-3000016575732021-11-020001657573us-gaap:IPOMemberxmtr:ConvertiblePreferredStocksSeedOneSeedTwoSeriesAOneSeriesATwoSeriesBSeriesCSeriesDSeriesEMember2021-01-012021-09-300001657573us-gaap:PreferredStockMember2021-07-020001657573xmtr:TwoThousandTwentyOneEquityIncentivePlanMember2021-09-3000016575732020-12-310001657573us-gaap:RestrictedStockUnitsRSUMemberxmtr:TwoThousandTwentyOneEquityIncentivePlanMember2021-09-300001657573xmtr:ConvertiblePreferredStocksSeedOneSeedTwoSeriesAOneSeriesATwoSeriesBSeriesCSeriesDSeriesEMember2020-12-310001657573xmtr:HerculesCapitalIncMemberxmtr:TermLoanMemberxmtr:AmendedAndRestatedLoanAndSecurityAgreementMember2021-07-092021-07-090001657573us-gaap:FurnitureAndFixturesMember2020-12-310001657573us-gaap:NoncompeteAgreementsMember2020-01-012020-12-310001657573us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001657573xmtr:TwoThousandSixteenEquityIncentivePlanMember2020-12-310001657573us-gaap:IPOMemberus-gaap:CommonClassAMember2021-01-012021-09-300001657573xmtr:HerculesCapitalIncMemberxmtr:TermLoanMemberxmtr:AmendedAndRestatedLoanAndSecurityAgreementMember2020-12-310001657573us-gaap:CommonClassAMember2021-07-022021-07-020001657573xmtr:ToolsMember2021-09-300001657573us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001657573us-gaap:RestrictedStockUnitsRSUMember2021-09-300001657573srt:MaximumMember2021-04-012021-04-300001657573us-gaap:PatentsMember2021-09-300001657573us-gaap:CustomerRelationshipsMember2021-09-300001657573us-gaap:IPOMemberus-gaap:CommonClassAMember2021-07-012021-09-300001657573xmtr:UnvestedRestrictedStockUnitsMember2021-01-012021-09-300001657573us-gaap:CommonClassBMemberus-gaap:IPOMember2021-01-012021-09-300001657573country:US2021-07-012021-09-300001657573srt:AffiliatedEntityMember2020-01-012020-09-300001657573us-gaap:RetainedEarningsMember2021-06-300001657573xmtr:TwoThousandFourteenEquityIncentivePlanMember2021-01-012021-09-300001657573us-gaap:IPOMember2021-07-022021-07-0200016575732020-06-300001657573us-gaap:RetainedEarningsMember2021-07-012021-09-300001657573xmtr:ConvertiblePreferredStocksSeedOneSeedTwoSeriesAOneSeriesATwoSeriesBSeriesCSeriesDSeriesEMember2020-09-300001657573country:US2020-07-012020-09-300001657573srt:EuropeMember2020-07-012020-09-300001657573xmtr:SharesReservedForCharitableContributionMember2021-01-012021-09-300001657573us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001657573us-gaap:TradeNamesMember2021-01-012021-09-300001657573us-gaap:NoncompeteAgreementsMember2021-09-300001657573xmtr:HerculesCapitalIncMemberxmtr:TermLoanMemberxmtr:AmendedAndRestatedLoanAndSecurityAgreementMember2021-01-012021-09-300001657573us-gaap:WarrantMember2021-01-012021-09-300001657573us-gaap:AdditionalPaidInCapitalMember2020-09-300001657573srt:MinimumMember2021-09-3000016575732021-07-012021-09-300001657573xmtr:SeriesBConvertiblePreferredStockMemberxmtr:HerculesCapitalIncMemberxmtr:AmendedAndRestatedLoanAndSecurityAgreementMember2020-01-300001657573us-gaap:AdditionalPaidInCapitalMember2019-12-310001657573us-gaap:RetainedEarningsMember2019-12-310001657573us-gaap:CommonStockMember2019-12-310001657573us-gaap:TechnologyEquipmentMember2021-01-012021-09-300001657573country:US2020-12-310001657573us-gaap:TradeNamesMember2020-12-310001657573us-gaap:SoftwareDevelopmentMember2021-09-300001657573srt:EuropeMember2021-01-012021-09-300001657573xmtr:OperationsAndSupportMember2021-07-012021-09-300001657573us-gaap:SoftwareDevelopmentMember2021-01-012021-09-300001657573us-gaap:RetainedEarningsMember2020-01-012020-09-300001657573srt:EuropeMember2021-07-012021-09-300001657573us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001657573us-gaap:CostOfSalesMember2021-01-012021-09-300001657573us-gaap:IPOMemberus-gaap:CommonClassAMember2021-07-022021-07-020001657573xmtr:ProductDevelopmentMember2020-07-012020-09-30xbrli:purexmtr:Customerxbrli:sharesxmtr:Segmentxmtr:Leaseiso4217:USDxbrli:sharesiso4217:USD

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 001-40546

 

XOMETRY, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

32-0415449

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

 

7529 Standish Place

Suite 200

Derwood, MD

20855

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (240) 335-7914

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A common stock, par value $0.000001 per share

 

XMTR

 

The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No ☐

As of November 2, 2021, the registrant had 41,744,740 shares of Class A common stock, $0.000001 par value per share, outstanding.

 

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets

1

 

Condensed Consolidated Statements of Operations and Comprehensive Loss

2

 

Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficit)

3

 

Condensed Consolidated Statements of Cash Flows

5

 

Notes to Unaudited Condensed Consolidated Financial Statements

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

19

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

33

Item 4.

Controls and Procedures

33

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

34

Item 1A.

Risk Factors

34

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

34

Item 3.

Defaults Upon Senior Securities

34

Item 4.

Mine Safety Disclosures

34

Item 5.

Other Information

34

Item 6.

Exhibits

35

Signatures

36

 

 

i


 

 

 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), 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,” “can,” “will,” “would,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “forecasts,” “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 contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

 

 

 

our expectations regarding our revenue, expenses and other operating results;

 

 

 

the anticipated growth of our business, including the anticipated growth of revenue from seller services, our ability to effectively manage or sustain our growth and to achieve or sustain profitability;

 

 

 

the ongoing effects of the COVID-19 pandemic and the associated global economic uncertainty or other public health crises;

 

 

 

future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements;

 

 

 

our ability to attract new buyers and sellers and successfully engage new and existing buyers and sellers;

 

 

 

the costs and success of our sales and marketing efforts, and our ability to promote our brand;

 

 

 

our reliance on key personnel and our ability to identify, recruit and retain skilled personnel;

 

 

 

our ability to effectively manage our growth, including any international expansion;

 

 

 

our ability to obtain, maintain, protect and enforce our intellectual property or other proprietary rights and any costs associated therewith;

 

 

 

our ability to compete effectively with existing competitors and new market entrants; and

 

 

 

the growth rates of the markets in which we compete.

 

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled Risk Factors Part II, Item 1A, and elsewhere in this Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Form 10-Q. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Form 10-Q. And while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

The forward-looking statements made in this Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Form 10-Q to reflect events or circumstances after the date of this Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

ii


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

XOMETRY, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share and per share data)

 

 

 

September 30,
2021

 

 

December 31,
2020

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

57,778

 

 

$

59,874

 

Marketable securities

 

 

266,739

 

 

 

 

Accounts receivable, less allowance for doubtful accounts of $0.7 million as of September 30, 2021 and $0.6 million as of December 31, 2020, respectively

 

 

25,157

 

 

 

14,574

 

Inventory

 

 

1,427

 

 

 

2,294

 

Prepaid expenses

 

 

4,988

 

 

 

913

 

Total current assets

 

 

356,089

 

 

 

77,655

 

Property and equipment, net

 

 

8,615

 

 

 

6,113

 

Operating lease right-of-use assets

 

 

3,101

 

 

 

1,922

 

Other assets

 

 

204

 

 

 

788

 

Intangible assets, net

 

 

1,455

 

 

 

1,652

 

Goodwill

 

 

833

 

 

 

833

 

Total assets

 

$

370,297

 

 

$

88,963

 

Liabilities, convertible preferred stock and stockholders’ equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

5,198

 

 

$

5,640

 

Accrued expenses

 

 

17,487

 

 

 

13,606

 

Contract liabilities

 

 

3,379

 

 

 

2,355

 

Operating lease liabilities, current portion

 

 

1,108

 

 

 

1,013

 

Finance lease liabilities, current portion

 

 

5

 

 

 

14

 

Short-term debt

 

 

 

 

 

15,753

 

Total current liabilities

 

 

27,177

 

 

 

38,381

 

Operating lease liabilities, net of current portion

 

 

2,197

 

 

 

1,118

 

Total liabilities

 

 

29,374

 

 

 

39,499

 

Commitments and contingencies (Note 12)

 

 

 

 

 

 

Convertible preferred stock

 

 

 

 

 

 

Convertible preferred stock, $0.000001 par value, Seed-1, Seed-2, Series A-1, Series A-2, Series B, Series C, Series D and Series E. Authorized; zero shares and 27,970,966 shares, zero shares and 27,758,941 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

 

 

 

 

 

160,713

 

Stockholders’ equity (deficit)

 

 

 

 

 

 

Preferred stock, $0.000001 par value. Authorized; 50,000,000 shares and zero shares; zero shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Common stock, $0.000001 par value. Authorized; zero shares and 42,000,000 shares; zero shares and 7,755,782 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Class A Common stock, $0.000001 par value. Authorized; 750,000,000 shares and zero shares
 
41,714,711 shares and zero shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Class B Common stock, $0.000001 par value. Authorized; 5,000,000 shares and zero shares, 2,676,154 shares and zero shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

490,175

 

 

 

503

 

Accumulated other comprehensive income

 

 

186

 

 

 

210

 

Accumulated deficit

 

 

(149,438

)

 

 

(111,962

)

Total stockholders’ equity (deficit)

 

 

340,923

 

 

 

(111,249

)

Total liabilities, convertible preferred stock and stockholders’ equity

 

$

370,297

 

 

$

88,963

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

1


 

XOMETRY, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except share and per share data)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

56,727

 

 

$

41,953

 

 

$

151,238

 

 

$

103,425

 

Cost of revenue

 

 

42,233

 

 

 

31,778

 

 

 

115,033

 

 

 

79,619

 

Gross profit

 

 

14,494

 

 

 

10,175

 

 

 

36,205

 

 

 

23,806

 

Sales and marketing

 

 

9,828

 

 

 

5,986

 

 

 

26,250

 

 

 

15,842

 

Operations and support

 

 

5,775

 

 

 

3,671

 

 

 

15,594

 

 

 

10,138

 

Product development

 

 

4,376

 

 

 

3,003

 

 

 

12,131

 

 

 

8,879

 

General and administrative

 

 

8,778

 

 

 

3,282

 

 

 

18,343

 

 

 

8,792

 

Total operating expenses

 

 

28,757

 

 

 

15,942

 

 

 

72,318

 

 

 

43,651

 

Loss from operations

 

 

(14,263

)

 

 

(5,767

)

 

 

(36,113

)

 

 

(19,845

)

Other (expenses) income

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(79

)

 

 

(309

)

 

 

(799

)

 

 

(939

)

Interest and dividend income

 

 

417

 

 

 

2

 

 

 

457

 

 

 

215

 

Other expenses

 

 

(786

)

 

 

(109

)

 

 

(1,021

)

 

 

(340

)

Total other expenses

 

 

(448

)

 

 

(416

)

 

 

(1,363

)

 

 

(1,064

)

Net loss

 

 

(14,711

)

 

 

(6,183

)

 

 

(37,476

)

 

 

(20,909

)

Deemed dividend to preferred stockholders

 

 

 

 

 

(8,801

)

 

 

 

 

 

(8,801

)

Net loss attributable to common stockholders

 

$

(14,711

)

 

$

(14,984

)

 

$

(37,476

)

 

$

(29,710

)

Net loss per share, basic and diluted

 

$

(0.33

)

 

$

(1.99

)

 

$

(1.87

)

 

$

(3.98

)

Weighted-average number of shares outstanding used to compute
   net loss per share, basic and diluted

 

 

43,962,863

 

 

 

7,546,458

 

 

 

20,092,600

 

 

 

7,458,671

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

$

(41

)

 

$

(65

)

 

$

(24

)

 

$

(92

)

Total other comprehensive loss

 

 

(41

)

 

 

(65

)

 

 

(24

)

 

 

(92

)

Net loss

 

 

(14,711

)

 

 

(6,183

)

 

 

(37,476

)

 

 

(20,909

)

Total comprehensive loss

 

$

(14,752

)

 

$

(6,248

)

 

$

(37,500

)

 

$

(21,001

)

 

See accompanying notes to the unaudited condensed consolidated financial statements.

2


 

XOMETRY, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(Unaudited)

Nine Months Ended September 30, 2021 and 2020

(In thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seed-1, Seed-2, Series A-1, Series A-2, Series B, Series C, Series D, Series E

 

 

Common Stock

 

Class A - Common Stock

 

Class B - Common Stock

 

Additional Paid-In

 

Accumulated Other Comprehensive

 

Accumulated

 

Total Stockholders'

 

 

Shares

 

Amount

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Income (Loss)

 

Deficit

 

(Deficit) Equity

Balance, December 31, 2020

 

27,758,941

 

$160,713

 

 

7,755,782

 

$—

 

                —

 

$—

 

 

 

$—

 

$503

 

$210

 

$(111,962)

 

$(111,249)

Conversion of convertible preferred stock in connection with the initial public offering

 

(27,758,941)

 

(160,713)

 

 

               —

 

             —

 

27,351,633

 

             —

 

407,308

 

        —

 

160,713

 

                             —

 

                  —

 

160,713

Exercise of common stock options

 

               —

 

                —

 

 

910,015

 

             —

 

39,744

 

             —

 

              —

 

        —

 

1,787

 

                             —

 

                  —

 

1,787

Conversion of common stock in connection with the initial public offering

 

               —

 

                —

 

 

(8,665,797)

 

             —

 

6,396,951

 

             —

 

2,268,846

 

        —

 

                      —

 

                             —

 

                  —

 

                      —

Issuance of common stock in connection with the initial public offering, net of underwriters' discount

 

               —

 

                —

 

 

               —

 —

             —

 

7,906,250

 

             —

 

              —

 

        —

 

325,263

 

                             —

 

                  —

 

325,263

Donated common stock

 

               —

 

                —

 

 

               —

 

             —

 

20,133

 

             —

 

              —

 

        —

 

1,157

 

                             —

 

                  —

 

1,157

Costs of initial public offering

 

               —

 

                —

 

 

               —

 

             —

 

                —

 

             —

 

              —

 

        —

 

(3,995)

 

                             —

 

                  —

 

(3,995)

Stock based compensation

 

               —

 

                —

 

 

               —

 

             —

 

                —

 

             —

 

              —

 

        —

 

4,747

 

                             —

 

                  —

 

4,747

Comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

               —

 

                —

 

 

               —

 

             —

 

                —

 

             —

 

              —

 

        —

 

                      —

 

(24)

 

                  —

 

(24)

Net loss

 

               —

 

                —

 

 

               —

 

             —

 

                —

 

             —

 

              —

 

        —

 

                      —

 

                             —

 

(37,476)

 

(37,476)

Total comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(37,500)

Balance, September 30, 2021

 

               —

 

$—

 

 

               —

 

$—

 

41,714,711

 

$—

 

2,676,154

 

$—

 

$490,175

 

$186

 

$(149,438)

 

$340,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2019

 

25,483,182

 

$121,156

 

 

7,289,571

 

$—

 

                —

 

$—

 

              —

 

$—

 

$4,512

 

$—

 

$(77,609)

 

$(73,097)

Repurchase of convertible preferred stock

 

(2,246,886)

 

(12,852)

 

 

               —

 

             —

 

                —

 

             —

 

              —

 

        —

 

(5,429)

 

                             —

 

(3,372)

 

(8,801)

Issuance of convertible preferred stock

 

4,522,645

 

52,409

 

 

               —

 

             —

 

                —

 

             —

 

              —

 

        —

 

                      —

 

                             —

 

                  —

 

                      —

Exercise of common stock options

 

               —

 

                —

 

 

276,759

 

             —

 

                —

 

             —

 

              —

 

        —

 

405

 

                             —

 

                  —

 

405

Stock based compensation

 

               —

 

                —

 

 

               —

 

             —

 

                —

 

             —

 

              —

 

        —

 

679

 

                             —

 

                  —

 

679

Comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

               —

 

                —

 

 

               —

 

             —

 

                —

 

             —

 

              —

 

        —

 

                      —

 

(92)

 

                  —

 

(92)

Net loss

 

               —

 

                —

 

 

               —

 

             —

 

                —

 

             —

 

              —

 

        —

 

                      —

 

                             —

 

(20,909)

 

(20,909)

Total comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,001)

Balance, September 30, 2020

 

27,758,941

 

$160,713

 

 

7,566,330

 

$—

 

                —

 

$—

 

              —

 

$—

 

$167

 

$(92)

 

$(101,890)

 

$(101,815)

See accompanying notes to the unaudited condensed consolidated financial statements.

 

3


 

XOMETRY, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(Unaudited)

Three Months Ended September 30, 2021 and 2020

(In thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seed-1, Seed-2, Series A-1, Series A-2, Series B, Series C, Series D, Series E

 

 

Common Stock

 

Class A - Common Stock

 

Class B - Common Stock

 

Additional Paid-In

 

Accumulated Other Comprehensive

 

Accumulated

 

Total Stockholders'

 

 

Shares

 

Amount

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Income (Loss)

 

Deficit

 

(Deficit) Equity

Balance, June 30, 2021

 

27,758,941

 

$160,713

 

 

8,665,797

 

$—

 

                  —

 

$—

 

                  —