Executive Summary

Q1 2024 revenue was $122.69M, up 16% YoY; marketplace revenue grew 24% YoY to $107.19M, and total gross profit rose 22% YoY to $47.90M; adjusted EBITDA loss improved 37% YoY to $(7.46)M but worsened sequentially vs Q4 due to higher OpEx and a weaker start to January .
Marketplace gross margin expanded to a record 32.0% (+320 bps YoY, +70 bps QoQ), driven by AI-powered pricing/matching and supplier network scale; supplier services margin was 87.9% after exiting low-margin tools/materials .
The company beat prior Q1 guidance (guided revenue $118–$120M vs actual $122.69M), and set Q2 guidance at $127–$129M with adjusted EBITDA loss of $(6)–$(8)M; FY24 outlook calls for ≥20% marketplace growth and ~10% YoY decline in supplier services revenue (policy-driven) .
Management emphasized enterprise engagement (Teamspace), international growth (EU expansion, 15 languages) and AI partnerships (Google Vertex AI) as catalysts; consensus estimates from S&P Global were unavailable, but the “beat vs company guidance” plus margin expansion are potential stock reaction drivers .

What Went Well and What Went Wrong

What Went Well

Record marketplace gross margin at 32.0% (+320 bps YoY; +70 bps QoQ), reflecting algorithmic pricing/matching improvements and supplier scale: “Powered by AI, our marketplace continues to gain significant market share…” .
Active Buyers up 32% YoY to 58,504 with net additions of 3,179 in Q1; enterprise traction with Teamspace (2,300+ teams) and a medical device production program win .
International revenue up 69% YoY; localized marketplaces expanded (Czech language, 15 languages total), with long-term target of 30–40% international mix .

What Went Wrong

Sequential step-down from Q4: revenue $128.15M → $122.69M, adjusted EBITDA loss $(2.85)M → $(7.46)M as January saw a pronounced decline in large orders and OpEx stepped up (sales force, international growth, payroll/benefits) .
Supplier Services revenue down 17% YoY to $15.50M due to the prior exit of tools/materials; Active Paying Suppliers declined 6% YoY (down ~2% ex tools/materials) .
Revenue per Active Buyer decreased 6% YoY, reflecting mix pressure from fewer large orders early in the quarter; management anchored FY24 marketplace growth to ≥20% amid macro uncertainty .

Financial Results

Core P&L and Profitability (chronological: Q3 2023 → Q4 2023 → Q1 2024)

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$118.93	$128.15	$122.69
Gross Profit ($USD Millions)	$46.25	$49.09	$47.90
Adjusted EBITDA ($USD Millions)	$(4.22)	$(2.85)	$(7.46)
EPS (GAAP, $)	$(0.25)	$(0.22)	$(0.34)
EPS (Non-GAAP, $)	$(0.05)	$(0.01)	$(0.12)

Segment Mix and Margins

Metric	Q3 2023	Q4 2023	Q1 2024
Marketplace Revenue ($USD Millions)	$102.47	$112.09	$107.19
Marketplace Gross Margin (%)	31.1%	31.3%	32.0%
Supplier Services Revenue ($USD Millions)	$16.45	$16.06	$15.50
Supplier Services Gross Margin (%)	87.2%	87.3%	87.9%

Geographic Segments

Metric	Q3 2023	Q4 2023	Q1 2024
U.S. Revenue ($USD Millions)	$103.38	$110.57	$103.36
International Revenue ($USD Millions)	$15.55	$17.57	$19.33

KPIs

KPI	Q3 2023	Q4 2023	Q1 2024
Active Buyers	52,467	55,458	58,504
% Revenue from Existing Accounts	96%	96%	95%
Accounts with LTM Spend ≥ $50K	1,223	1,331	1,381
Active Paying Suppliers	7,415	7,271	7,159

Estimates Comparison

Consensus estimates from S&P Global were unavailable at time of writing due to an SPGI retrieval error; therefore, formal Revenue/EPS/EBITDA comparisons vs Street are not shown here. Company-level comparison: Q1 revenue exceeded prior company guidance ($118–$120M) with actual $122.69M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q1 2024	$118–$120	Actual: $122.69	Beat vs guidance
Adjusted EBITDA ($USD Millions)	Q1 2024	$(7)–$(9)	Actual: $(7.46)	Within range
Revenue ($USD Millions)	Q2 2024	—	$127–$129	New
Adjusted EBITDA ($USD Millions)	Q2 2024	—	$(6)–$(8)	New
Marketplace Revenue Growth	FY 2024	≥20% YoY	≥20% YoY	Maintained
Supplier Services Revenue	FY 2024	Down ~10% YoY	Down ~10% YoY	Maintained
Adjusted EBITDA Profitability Timing	Q3 2024	Expected positive	Not reiterated in Q1 materials; focus on breakeven at ~$600M run-rate	Not reiterated

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2023 and Q4 2023)	Current Period (Q1 2024)	Trend
AI/technology initiatives	Announced Google Cloud Vertex AI partnership to accelerate instant quoting; Teamspace launched/integrated broadly	Continued AI-powered margin gains; expect testing of new auto-quoting models in Q3; Teamspace enhanced with tooling dashboard; 2,300+ teams	Building momentum; productization progressing
Enterprise engagement	Rapid Teamspace adoption; record net adds of accounts ≥$50K in Q4 (108)	Enterprise wins (medical device injection molding production program; multi-year EU customer); expanding enterprise sales bench	Strengthening enterprise traction
International growth	Strong acceleration in late 2023; SOLIDWORKS plug-ins; acquisitions/expansion in EU/Asia	International revenue +69% YoY; added Czech language; long-term mix target 30–40%	Continuing robust growth
Macro/supply chain	January softness: large orders paused; prudent FY24 growth anchoring; buyers’ budgets held back	Q1 early softness in large orders; guidance reflects uncertain manufacturing environment	Mixed: cautious near term
Supplier services (Thomas)	Modernization and pay-for-performance; self-serve bundles, verified profiles	Beta-testing self-serve campaign tools; aiming to restore growth; margin >85%	Rebuild phase; high-margin leverage
Product performance/menu expansion	Quick-turn injection molding; instant quoting of inserts/assemblies/sheet cutting	EU Vacuum Casting added; injection molding tooling dashboard; expanding instant quoting coverage	Broader capabilities rolling out

Management Commentary

“Powered by AI, our marketplace continues to gain significant market share… In Q1 2024, we delivered better than expected revenue driven by strong 24% marketplace revenue growth… robust 32% growth in Active Buyers.” — CEO Randy Altschuler .
“Q1 marketplace gross margin was a record at 32.0%, up 320 basis points year-over-year and up 70 basis points quarter-over-quarter.” — CFO James Miln .
“Adjusted EBITDA breakeven as we surpassed an approximately $600 million annual revenue run rate… targeting a gross margin of 38% to 40%.” — CFO James Miln .
“We signed a multiyear agreement with a European customer… using the network of suppliers in the Xometry marketplace, this customer doesn’t need to build and manage their own supply chain.” — CEO Randy Altschuler .
“International revenue accounted for 18% of total marketplace revenue… we believe international can reach the 30% to 40% level in the long term.” — CEO Randy Altschuler .

Q&A Highlights

Guidance framing: Q2 revenue guidance ($127–$129M) balances healthy marketplace trends vs macro uncertainty; Q1 outperformed due to large orders improving after a soft January; FY24 anchored to ≥20% marketplace growth .
Revenue per Active Buyer volatility: lower due to weaker large orders mix; conversions/pricing trends remained consistent; expect active buyer growth to remain robust .
Thomas/advertising: modernization with pay-for-performance model; beta self-serve tools underway; aim to improve search accuracy/display and supplier ROI .
Google Cloud/Vertex AI: partnership accelerates new auto-quote models; no impact on current algorithms in Q1; tests expected in Q3 2024 .
Teamspace adoption/enterprise penetration: over 2,300 teams; used to manage tooling workflows; supports deeper enterprise engagement and revenue visibility .
Profitability path: breakeven at ~~$600M run-rate, with operating expense discipline and supplier services efficiencies (~~$1M/quarter improvement in 2H24 vs 1H24) .

Estimates Context

Wall Street consensus estimates from S&P Global were unavailable due to a retrieval error; as a result, formal comparisons to Street Revenue/EPS/EBITDA are not provided here.
Company-level comparison: Q1 revenue exceeded prior company guidance ($118–$120M) with actual $122.69M; adjusted EBITDA loss fell within guided $(7)–$(9)M .

Key Takeaways for Investors

Marketplace execution remains strong: record margin (32.0%) and robust Active Buyer growth suggest Xometry’s AI pricing/matching is compounding advantage; watch mix normalization of large orders as a near-term swing factor .
Sequential softness was largely timing/mix: January large-order pause and OpEx step-up drove QoQ EBITDA deterioration; February improved vs January; guidance prudently embeds macro uncertainty .
Growth catalysts: enterprise adoption (Teamspace, ERP integrations), international expansion, and Google Vertex AI models expected to broaden instant quoting in 2H24; these should support revenue per buyer and margin over time .
Supplier services is a margin lever: Thomas modernization and exit of low-margin tools/materials lifted gross margins (>85%); revenue headwinds persist near term, but self-serve advertising tools could restore growth .
Profitability framework: management targets adjusted EBITDA breakeven at ~$600M revenue run-rate and 38–40% gross margin; near-term focus on operating leverage with FY24 marketplace growth ≥20% .
Evidence of market share gains: strong growth in semiconductors/industrial/aerospace/auto end-markets and expanding enterprise relationships underscore structural share capture .
Tactical positioning: in the absence of Street comparisons, the “beat vs company guidance” and margin expansion are positive signals; monitor Q2 mix of large orders and international momentum for confirmation of trajectory .

Additional materials reviewed:

Q4 2023 results and prior guidance (context for sequential comparisons) .
Q3 2023 results (trend context) .
Other PR (June 27, 2024) related to brand campaign and injection molding customer use case (context to enterprise/production capabilities) .

Xometry, Inc. (XMTR)·Q1 2024 Earnings Summary