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In Q1, Xometry grew active buyers on its marketplace 32% year over year and 8% quarter over quarter.

Xometry Inc. reported growth in revenue in its first quarter of fiscal 2024. That result followed a slow start to the year when CEO Randy Altschuler warned of a potentially weak Q1.

“Powered by AI, our marketplace continues to gain significant market share as buyers and suppliers realize the value, convenience and resiliency of our platform,” Altschuler, said in a written statement. “In Q1 2024, we delivered better than expected revenue driven by strong 24% marketplace revenue growth. Marketplace growth was driven by robust 32% growth in Active Buyers. We expect our current initiatives to continue to drive long-term growth.”

Xometry is a B2B marketplace for manufacturers using artificial intelligence (AI), based in Bethesda, Maryland. It facilitates sales across industries including aerospace, robotics, automotive and others.

Xometry Q1 results

In the first quarter ended March 31, Xometry revenue grew 16% to $123 million. That was largely driven by marketplace growth of 24% year over year to $107 million.

Meanwhile, supplier services revenue declined 17% to $15.5 million, due to Xometry’s discontinuation of the lower-margin tools and materials business. That negatively impacted revenue by about $2 million, it said.

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Active buyers on the marketplace increased year over year by 32% to 58,504. That number also grew 8% quarter over quarter, Altschuler told investors. Active suppliers, however, decreased 6% to 7,159.

Net loss was $16.6 million for Q1, a decrease of $1.7 million from the year-ago period. That includes $6 million of stock-based compensation, Xometry said.

International revenue outpaced total revenue, growing 69% year over year thanks to strong growth in Europe. International sales accounted for 18% of total revenue. Xometry projects it will eventually make up 30% to 40% of revenue in the long term, it said.

These results put Xometry right on track with its plan, chief financial officer James Miln said. “We expect to continue to improve our year-over-year progress towards profitability in 2024 through operating leverage, partly offset by international and enterprise growth investments.”

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Xometry Q1 technology updates

Xometry introduced several updates to the Teamspace collaboration tool. It first launched Teamspace in October 2023 as a way to streamline order management and create efficiency across projects in Xometry’s platform. 

New order management tools and quote history displays within Teamspace move the focus of Xometry’s marketplace from individual buyers to procurement teams, it said. Since the tool launched, Xometry said 2,300 teams have been created.

Xometry also added a new dashboard for injection molding that marketplace buyers can access. It gives procurement professionals an easier way to access details about different tools, as well as a centralized place to track quotes, design, and parts production.

The marketplace began beta testing a number of features for Thomasnet.com, the B2B marketplace it acquired in 2021. One of those tools is a self-service way for suppliers to create custom advertising campaigns. Suppliers can select from nearly 80,000 categories based on their products, services and budgets.

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Updates on Google collaboration

In 2023, Xometry announced a partnership with Google Cloud to use its Vertex AI platform for Xometry’s AI-powered Instant Quoting Engine. Progress so far has been “encouraging,” Altschuler said. He added that by Q3 of fiscal 2024, Xometry plans to test several new auto-quoting models with U.S. and European customers. 

Xometry Inc. earnings

For its fiscal Q1 ended March 31, Xometry reported:

  • Revenue increased 16% to 123 million.
  • Active buyers on the marketplace increased year-over-year by 32% to 58,504.
  • International revenue grew  69% year over year and accounted for 18% of total revenue.

Check back for more earnings reports. For reference, here’s last quarter’s update on Xometry.

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