It was a busy third quarter for Xometry Inc., an online marketplace used by thousands of manufacturers to buy and sell manufacturing services.
In addition to growing revenue and the number of active marketplace buyers, Xometry also made a pair of deals to acquire innovative technology.
On Nov. 5, Xometry—a marketplace for digital manufacturing that connects thousands of buyers and suppliers—acquired for $6.3 million in cash and stock key assets of FactoryFour, a Los Angeles developer of cloud-based applications and services aimed at improving factory floor productivity through real-time manufacturing data. FactoryFour’s software-as-a-service (SaaS) applications help manufacturers plan, prioritize, and monitor production orders and help automate scheduling for operations and distribution schedule changes.
Xometry made the deal to add more marketplace services that help manufacturers use digital tools and data to make production more efficient, the company says.
Specifically, FactoryFour’s applications enable manufacturers to configure a unique production process, capture real-time labor and quality data, and analyze the results to better understand production floor problems and challenges. “FactoryFour will provide a SaaS-based solution to help manufacturers in the Xometry marketplace improve lead times and make strong, data-driven decisions through real-time production tracking,” Xometry CEO Randy Altschuler told analysts on a recent earnings call. “We expect these acquisitions to make an impact on our product offering beginning in 2022.”
On Nov. 1, Xometry purchased assets from Big Blue Saw LLC, an Atlanta online waterjet and laser cutting service in a cash and stock deal valued at $2.5 million. “It’s a very small company and was founded over 15 years ago by a software engineer, and he has built some terrific instant quoting capabilities for laser jet and for water jet,” Altschuler said. “We want to take that technology, that great instant quoting technology, as well as the data that he’s accumulated and use that to enhance our instant quoting engine for our large customer base or a large user base.”
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 continued to grow in the third quarter. For the quarter ended Sept. 30, Xometry reported:
- Revenue grew 35.3% to $56.7 million from $41.9 million in the third quarter of 2020.
- The number of active buyers was 26,187, compared with 16,266 in Q3 2020.
- Net loss was $14.7 million compared with a net loss of $6.2 million in the prior year.
“Seller services had a strong Q3 as we made improvements to our supplies business and drove increasing adoption across our basket of fintech products,” Altschuler said. “In August, we relaunched Xometry Supplies, including a site redesign and implementation of a new ecommerce software platform. The new site expands our product offering from 30 to 145 categories, and we plan on significantly expanding our SKU selection in early 2022.” Manufacturers that provide manufacturing services through Xometry.com can use Xometry Supplies, at Supplies.Xometry.com, to purchase manufacturing materials and supplies.
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