Executive Summary

Record quarter: revenue $132.6M (+19% Y/Y), record gross profit $52.9M (+21% Y/Y), and record marketplace gross margin 33.5% (+180 bps Y/Y), with Adjusted EBITDA loss narrowing to $2.6M (2.0% of revenue) .
Q3 guide: revenue $136–$138M (+14–16% Y/Y) and Adjusted EBITDA loss of $1.5–$3.5M; FY24 outlook reaffirmed for marketplace revenue growth of at least 20% and supplier services down ~10% .
Structural margin expansion continued; management targets ~35% marketplace gross margin by year-end 2024, citing AI-driven pricing/matching and supplier network scaling .
Product catalysts: beta instant quoting for tube cutting/bending leveraging Google Cloud Vertex AI, expected Q3 rollout; continued Teamspace adoption (3,300+ teams) supports enterprise penetration .

What Went Well and What Went Wrong

What Went Well
- Record topline and profitability metrics: “record revenue, record gross profit and record gross margins” driven by 25% marketplace growth; Adjusted EBITDA loss improved 70% Y/Y to $2.6M (2% of revenue) .
- Marketplace unit economics: marketplace gross margin reached 33.5% (record), with management “target[ing] towards 35% by the end of the year,” attributing gains to AI price prediction and optimal supplier matching .
- Enterprise and buyer growth: active buyers +27% Y/Y to 61,530; accounts with LTM ≥$50K +24% Y/Y to 1,436; management: “we are increasingly becoming embedded across our customer supply chains” .
What Went Wrong
- Supplier services headwind: revenue down 13% Y/Y as tools/materials exit and non-core wind-down continue; active paying suppliers down 7% Y/Y to 6,992 .
- Profitability still negative on GAAP basis: net loss of $13.7M; SBC of $8.1M, payroll tax on SBC $0.8M, D&A $3.3M; Adjusted EBITDA definition updated to exclude payroll tax related to SBC .
- Guide implies slower Y/Y growth vs H1 due to tougher comps; management highlighted Q4’23’s +42% marketplace comp and maintained “at least 20%” marketplace growth stance amid macro uncertainty .

Financial Results

Headline P&L (oldest → newest)

Metric	Q4 2023	Q1 2024	Q2 2024
Revenue ($M)	$128.1	$122.7	$132.6
Gross Profit ($M)	$49.1	$47.9	$52.9
Gross Margin (%)	38.3%	39.0%	39.9%
Marketplace Revenue ($M)	$112.1	$107.2	$117.3
Supplier Services Revenue ($M)	$16.1	$15.5	$15.3
Marketplace Gross Margin (%)	31.3%	32.0%	33.5%
Supplier Services Gross Margin (%)	87.3%	87.9%	88.9%
Net Loss ($M)	$(10.6)	$(16.6)	$(13.7)
GAAP EPS ($)	$(0.22)	$(0.34)	$(0.28)
Adjusted EBITDA ($M)	$(2.9)	$(7.5)	$(2.6)
Non-GAAP Net Loss ($M)	$(0.4)	$(5.7)	$(0.6)
Non-GAAP EPS ($)	$(0.01)	$(0.12)	$(0.01)
Cash + Marketable Securities (end) ($M)	$268.8	$254.0	$241.0

Estimate context (Actual vs Estimates vs Guidance)

Item	Q2 2024 Actual	Q2 2024 S&P Global Consensus	Q2 2024 Guidance (given May 9)
Revenue ($M)	$132.6	N/A – S&P Global data unavailable at time of request	$127–$129
Adjusted EBITDA ($M)	$(2.6)	N/A – S&P Global data unavailable at time of request	$(6)–$(8)

Note: S&P Global consensus data were unavailable due to request limits at retrieval time. Values would normally be sourced from S&P Global.

Segment revenue (oldest → newest)

Segment Revenue ($M)	Q4 2023	Q1 2024	Q2 2024
U.S.	$110.6	$103.4	$112.2
International	$17.6	$19.3	$20.4
Total	$128.1	$122.7	$132.6

KPIs (as of period end)

KPI	Q4 2023	Q1 2024	Q2 2024
Active Buyers	55,458	58,504	61,530
% Revenue from Existing Accounts	96%	95%	96%
Accounts with LTM ≥$50K	1,331	1,381	1,436
Active Paying Suppliers	7,271	7,159	6,992

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q3 2024	—	$136–$138	New issuance
Adjusted EBITDA ($M)	Q3 2024	—	$(3.5)–$(1.5)	New issuance
Marketplace Revenue Growth	FY 2024	≥20% Y/Y (May 9)	≥20% Y/Y reaffirmed	Maintained
Supplier Services Revenue	FY 2024	Down ~10% Y/Y (May 9)	Down ~10% Y/Y reaffirmed	Maintained
Adjusted EBITDA Profitability Timing	2024	“Expect to be Adj. EBITDA profitable in Q3’24” (Feb 29)	“At ~$600M annual revenue run-rate” (no specific quarter)	Updated methodology; Q3 timing removed
Q2’24 Revenue vs Guide	Q2 2024	$127–$129 (May 9)	Actual $132.6	Beat vs guidance
Q2’24 Adj. EBITDA vs Guide	Q2 2024	$(6)–$(8) (May 9)	Actual $(2.6)	Beat vs guidance

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’23, Q1’24)	Current Period (Q2’24)	Trend
AI/Instant Quoting (Vertex AI)	Partnership with Google Cloud Vertex AI; expanding instant quoting scope . Added Vacuum Casting; testing multiple new auto-quote models planned for Q3	Beta testing tube cutting/bending; release expected later Q3; leveraging Vertex AI to accelerate development	Accelerating
Marketplace Margins	Marketplace GM 31.3% (Q4’23) ; 32.0% (Q1’24)	Record 33.5%; management targeting ~35% by YE	Improving
Enterprise/Teamspace	Teamspace launched; 1,500+ teams (Q4’23)	2,300+ teams (Q1’24)	3,300+ teams; ERP integration with large medical device firm
International	Launch of xometry.uk; intl rev $17.6M (Q4’23) ; +69% Y/Y in Q1; 18% of marketplace	+31% Y/Y; APAC expansion (AU/SG/NZ), WeChat service; 15 languages; 15% of marketplace	Strong growth, tough comps acknowledged
Supplier Services (Thomas)	Expanded self-serve and bundles (Q4’23)	Beta testing self-serve ad tools (Q1’24)	Modernizing platform; 88.9% GM; new partnerships (Machines Italia), expanded accounts (American Crane)
Macro/End-Markets	Strength in semis, industrial, A&D, auto (Q1’24)	Continued strength incl. semis; management highlights comp headwinds and macro uncertainty	Resilient vs macro

Management Commentary

CEO: “We delivered record revenue, record gross profit and record gross margins as our AI-powered marketplace continues to gain market share” .
CEO: “We grew our marketplace revenue 25%…and a record 33.5% marketplace gross margin as more customers turn to Xometry for their supply chain solutions” .
CFO: “Q2 gross margin for marketplace was a record 33.5%… We still think we can target towards 35% by the end of the year” .
CFO: “We expect to reach adjusted EBITDA profitability at the $600 million revenue run rate” .
CEO: On enterprise adoption: “a top global medical device company embedded the Xometry marketplace directly into their procurement program” .
CTO press statement: Vertex AI “accelerate[s] the pace at which we develop and bring to market new auto-quote methods and models” (tube cutting/bending) .

Q&A Highlights

Margin outlook and drivers: Management reiterated a path toward ~35% marketplace GM by YE 2024, citing AI-driven pricing, better supplier matching, and data scale as key levers .
Growth cadence and comps: Underlying metrics remain strong; team maintained “at least 20%” marketplace growth view and highlighted very tough Q4’23 comp (+42% Y/Y) that will weigh on optics .
Buyer behavior: Revenue per active buyer decreased ~1% Y/Y but rose ~4% Q/Q; net adds of ~3,000 buyers; growing ≥$50K accounts supports deeper enterprise penetration .
International: Trends “very strong”; apparent deceleration versus Q1 driven by prior-year comp, not demand; semiconductors cited as a strong end market, including AI-related tailwinds .
EBITDA bridge/guide: Q3 EBITDA loss $(1.5)–$(3.5)M reflects continued investment balancing with leverage; long-term profitability tied to scale and operating discipline .

Estimates Context

S&P Global consensus estimates could not be retrieved at the time of analysis due to request limits; as a result, explicit beats/misses vs Street consensus cannot be asserted. We anchored guidance and results to company disclosures and will update vs-consensus deltas when S&P Global data are accessible .

Key Takeaways for Investors

Marketplace flywheel strengthening: AI-led pricing/matching plus supplier network scaling is expanding gross margins (33.5% in Q2; ~35% YE target), a key driver of earnings power as volume ramps .
Operational leverage improving: Adjusted EBITDA loss narrowed to 2% of revenue; company beat its own Q2 revenue and EBITDA guidance, underscoring execution .
Near-term optics: Q3 guide (+14–16% Y/Y) reflects tougher comps rather than fundamental deceleration; model gross profit dollars accelerating in H2 given margin gains .
Enterprise penetration rising: Teamspace adoption (3,300+ teams) and ERP integrations support larger accounts (≥$50K LTM +24% Y/Y), improving stickiness and share of wallet .
Product catalysts: New instant-quote categories (tube cutting/bending) and APAC/Europe enhancements should broaden TAM and improve conversion/retention .
Mix headwind persists: Supplier services revenue declines (while high-margin) remain a top-line drag; modernization aims to stabilize and restore growth over time .
Liquidity and runway: ~$241M cash and marketable securities supports continued investment and path to Adjusted EBITDA breakeven at ~$600M revenue run-rate .

Additional notes

Non-GAAP definitions changed in Q2’24 to exclude payroll tax expense related to stock-based compensation; consider for period-to-period Adjusted EBITDA comparability .

Xometry, Inc. (XMTR)·Q2 2024 Earnings Summary