A U.S. B2B marketplace for on-demand industrial parts has big ambitions to grow globally
Revenue in the third quarter for Xometry Inc., a marketplace for on-demand industrial parts posted a health gain in revenue and active users. But the company’s net loss also was slightly bigger.
For the third quarter ended Sept. 30, Xometry reported revenue of $103.6 million, up 83% from $56.7 million in Q3 of the previous year. Net loss was $15.03 million vs. $14.711 million in the prior year.
“Marketplace revenue growth was driven by continued strong growth and active buyers and rapid adoption of our platform by larger accounts across both North America and Europe,” CEO Randy Altschuler told analysts on an earnings call based on a transcript from SeekingAlpha.com. “Likewise, we experienced strong year-over-year growth in many of the different manufacturing processes offered in our marketplace.”
The company, which says the number of active buyers in Q3 increased 40% to 26,187, also continues to expand internationally. “Our international business continues to deliver strong growth with revenue increasing 75% year-over-year, and 10% quarter-over-quarter and in Q3, we added Polish Norwegian and Dutch languages to our European site,” he told analysts. “Additionally, Europe introduced new production technologies including vacuum casting and compression molding. Alongside strong top line growth, Europe continues to rapidly expand gross margins, underscoring the success and demand for our marketplace across geographies.”
Xometry has yet to file its full quarterly financials with the U.S. Securities and Exchange Commission, but for the first six months of the year, international revenue totaled about $15.6 million, compared with $6.0 million in the first six months of 2021. “We remain pleased with the ramp and buyer demand in China as we’re seeing orders from across many verticals including medical, biotech, new energy and universities,” Altschuler told analysts. “We expect China to contribute to revenue growth in 2023.”
As the year winds up, Xometry also will continue to roll out new marketplace features at a brisk pace, he said.
“In Q3, we rolled out new products including the industrial buying engine and work center to provide an integrated solution for buyers and suppliers and to further scalar networks,” Altschuler told analysts. “The industrial buying engine provides buyer choice, including Xometry’s instinct quoting engine for those customers who want to buy it now — It also digitizes the cumbersome and time-consuming request for quote process.”
For the quarter Xometry also reported:
- Revenue for the first three quarters grew year over 87% to $282.9 million from $151.2 million from the prior year. Net loss was $51.60 million vs. $37.47 in the prior year.
- Marketplace accounts with of at least $50,000 in spending over 12 months increased 62% from 603 as of Sept. 30, 2021, to 974 in Q3 of this year.
In Q4, we expect marketplace revenue to grow 40% to 45%, and marketplace gross profit to grow over 55%,” he said, “We saw continued strong active buyer growth in October and expect another quarter of record new active buyer additions in Q4.”