Xometry Inc., an online marketplace used by thousands of manufacturers to buy and sell manufacturing services, is telling current and future investors that its financial future looks solid.
In the company’s just-posted September financial presentation, which features numbers for the second quarter ended June 30 and some sales projects for the full year, Q2 revenue grew year over by 45.6% to $50.6 million from $34.8 million in Q2 2020. For the full year, Xometry, which made its debut as a public company in June, is projecting sales to range from $207.5 million $211.5 million, an increase of about 50% over 2020.
Xometry’s Q2 gross profit was $11.9 million compared with $8.3 million in the second quarter of 2020. “We had a strong Q2 with as we continue to see rapid adoption of our marketplace by both buyers and sellers,” says CEO Randy Altschuler.
Xometry has grown steadily since launching in 2013 as an online marketplace, where more than 43,000 buyers from companies, including auto manufacturer BMW, pharmaceutical company Moderna and ABL Space Systems, purchase manufacturing services through an international network of more than 5,000 manufacturers of all sizes.
The company says it plans to continue driving its growth through further development of its technology platform and its presence in international markets. In addition to its markets in Europe and Asia, Xometry says it is entering other markets worldwide. Over the past two years, it says it has completed sales to customers in 51 countries, “with over 95% of our revenue generated from buyers located in the United States.”
“In the first half of 2021, we added over 60 new materials, finishes and processes to our instant quoting engine,” Altschuler says. “This allows us to widen the use cases for all of our buyers across key manufacturing processes and to attract new buyers, which underscores the extensibility of our on-demand manufacturing marketplace.”
The secret to Xometry’s financial success is recurring revenue from users that annually spend $50,000 or more on the marketplace, the company says. Through the end of the second quarter, these users, which Xometry calls last 12-month amounts, or LTMs, totaled 508 LTMs compared with 330 such accounts in the second quarter of 2020.
“The power and value of our marketplace is evidenced by over 23,000 active buyers, including leading brands in aerospace, defense, robotics, medical devices, consumer products, automotive, and space,” Altschuler says. “At the same time, we continue to ramp up our network of active sellers, which grew 82% from 2019 to 2020 to over 1,410 active sellers.”
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