Xometry (Nasdaq: XMTR) closed out 2024 on a high note, with growth in its 3D printing marketplace, best-ever gross margins, and positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).As demand for on-demand 3D printing services continues to rise, Xometry’s AI-powered platform attracted more buyers and suppliers, reinforcing its position as a key player in the digital manufacturing ecosystem.Despite ongoing economic challenges and shifting trade policies, the company’s investment in additive manufacturing (AM) capabilities, enterprise adoption, and international expansion helped drive another strong quarter.
Revenue for the fourth quarter of 2024 grew 16% year-over-year to $149 million, beating management’s guidance and analyst expectations.Xometry’s overall marketplace remained a major growth driver, with marketplace revenue rising 20% to $135 million, fueled by a 23% increase in active buyers, reaching over 68,000 by the end of the quarter.Xometry’s marketplace is an online platform where businesses can order custom-manufactured parts from a vast network of suppliers.
It includes many manufacturing processes, like CNC machining, sheet metal fabrication, injection molding, and 3D printing, with AM playing a key role in its expansion.The company’s supplier base also expanded, growing 28% year-over-year to 4,375, as more manufacturers turned to Xometry’s platform for industrial 3D printing and CNC machining services.Xometry made more money per order, reaching a 34.5% marketplace gross margin, thanks to its AI-driven pricing models and connecting buyers with the right suppliers.
For the first time, Xometry delivered a positive adjusted EBITDA of $1 million, a $3.9 million improvement year-over-year.This milestone highlights the scalability of Xometry’s AI-powered marketplace, particularly in AM, where streamlined processes and expanded supplier access continue to drive profitability.However, net loss for the quarter was $9.9 million, a slight improvement over the prior year, primarily due to stock-based compensation expenses.
Xometry Integrates Teamspace Collaboration Tool Into Its AI-Powered Marketplace.Image courtesy of GlobeNewsWire.The company continued to grow its enterprise accounts, with customers spending at least $50,000 annually on the platform, increasing 12% year-over-year.
Meanwhile, accounts spending over $500,000 saw revenue growth of 40%.International expansion played a vital role in the quarter’s performance.Revenue from global operations grew 42% year-over-year, with significant traction in Europe, Turkey, and India.
The introduction of international economy pricing for AM processes further solidified Xometry’s position as a truly global marketplace.“In 2025, we plan to enhance our customer segmentation efforts, leveraging AI capabilities in our advertising tech stack to increase marketing efficiency through better personalization, targeting, and customer engagement.We’re also improving the supplier experience through our work center software as we rapidly scale our global network, including new regions such as India,” CEO Randy Altschuler told investors during an earnings call.
“We’ve grown our active supplier network by over threefold since the beginning of 2021 as our technology allows manufacturers to digitally monetize their manufacturing capacity, improve their profitability, and access global demand at minimal cost.” Management still expects international revenue to eventually represent 30% to 40% of the company’s total revenue, up from 16% in 2024 Xometry celebrates going public on the NASDAQ on June 29, 2021.Image courtesy of Xometry.A key driver of Xometry’s success has been its investment in AI-powered tools, particularly its Instant Quoting Engine, which now holds 12 U.S.
patents.The company’s proprietary algorithms continue to refine pricing models, increasing efficiencies for both buyers and suppliers.AI-driven automation and an expanded supplier network have allowed Xometry to improve marketplace economics while maintaining high service quality.
It also retained key industry certifications to improve credibility among large enterprises.Its certifications now cover automotive, aerospace and defense, and medical devices.Xometry’s titanium 3D printed parts.
Image courtesy of Xometry.In Q4 2024, Xometry made 3D printing faster and more affordable.It introduced a 1-day turnaround for HP Multi Jet Fusion (MJF) printing and added lower-cost global options for customers willing to wait longer.
The company also improved its platform with better order tracking and collaboration tools, making it easier for teams to manage 3D printing projects.Furthermore, the company expanded its supplier network by 34%, adding 780 new partners to increase 3D printing capacity.While it didn’t make big acquisitions, it secured a major deal in the Asia-Pacific region (APAC), which included 3D printed parts for production use.
Looking ahead, Xometry expects revenue growth in 2025 to outpace 2024’s 18% growth rate, with marketplace revenue expected to increase at least 20% every quarter.The company’s first quarter 2025 guidance anticipates revenue between $147 million and $149 million, reflecting a 20% to 21% year-over-year increase.However, it expects to lose $1.5 million (in adjusted EBITDA) in the first quarter of 2025 because it is investing more in expanding its marketplace internationally, especially in India and Turkey.
“As part of our strategy, we’ve expanded our supplier network.We’ve got a network of nearly 4,400 suppliers globally.We’ve been expanding that into different geographies, like India and Turkey.
We continue to do that, but we’ve accelerated some of that, and the volume going to those geographies in Q1 is having some dampening impact on a quarter-over-quarter basis for gross margin,” Altschuler told investors.In his quarterly analysis of Xometry, William Blair analyst Brian Drab explained that the company’s international marketplace is still in its early stages, which is temporarily lowering profit margins.Since Xometry’s AI-powered pricing system works best with large amounts of data, the newer international marketplace doesn’t have as much information yet to “optimize pricing as effectively as in more established regions.” Additionally, Xometry’s supplier network in India and Turkey is still growing, so there are fewer options to match buyers with the most cost-effective manufacturers.
Because of this, the company is making less profit per order in these regions, leading to a dip in marketplace gross margin in Q1.However, Drab expects this to be temporary, with margins rebounding in the second quarter and improving throughout 2025 as Xometry gathers more data and refines its supplier network.Carbon Digital Light Synthesis (DLS) 3D Printing Service by Xometry.
Image courtesy of Xometry.Following the earnings report, Xometry’s stock declined about 9%, likely due to Q1 guidance coming in slightly below consensus expectations.Despite this short-term reaction, analysts remain positive about the company’s long-term trajectory.
William Blair reaffirmed its Outperform rating on Xometry, citing its strong marketplace expansion, increasing enterprise adoption, and AI-driven operational efficiencies.Drab also highlighted Xometry’s growing engagement with several of the world’s largest companies, including those in the Magnificent Seven tech group, as a strong indicator of future growth potential.He anticipates that Xometry will add approximately $100 million in revenue and $20 million in adjusted EBITDA in 2025.
Margins may be lower in Q1 2025, but Xometry’s long-term plan is still on track.Subscribe to Our Email Newsletter
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