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Dec 31, 2022
Xometry Q4 2022 Earnings Report
Xometry reported strong marketplace growth and implemented a strategic plan to drive future growth and reduce operating expenses.
Key Takeaways
Xometry's Q4 2022 revenue increased by 46% year-over-year, driven by marketplace growth of 32% and the acquisition of Thomas. The company is implementing a 5-point strategic plan to focus on top accounts, expand the marketplace menu, grow internationally, drive adoption of new products, and reduce operating expenses.
Q4 revenue increased 46% year-over-year, driven by 32% marketplace growth and supplier services including the acquisition of Thomas.
Q4 gross profit increased 72% year-over-year, driven by 30% growth in marketplace gross profit and the addition of Thomas, partly offset by price optimization efforts.
The company expects Q1 revenue growth of 20%-22% year-over-year, reaching $100-$102 million, driven by healthy marketplace growth.
Q4 Adjusted EBITDA loss was $14.2 million, reflecting a revenue shortfall and lower gross margins. The company expects improved operating leverage through expense reduction, including a 6% workforce reduction in January 2023.
Forward Guidance
Xometry anticipates revenue between $100 million and $102 million and adjusted EBITDA loss between $11 million and $9 million for Q1 2023. For the full year 2023, Xometry projects revenue between $470 million and $480 million and adjusted EBITDA loss between $22 million and $20 million.
Positive Outlook
- Expect Q1 revenue growth of 20%-22% year-over-year to $100-$102 million.
- Healthy marketplace growth in the mid to high 20% range year-over-year is expected.
- Improved operating leverage is anticipated going forward.
- Steps are being taken to lower operating expenses.
- A 6% reduction in workforce was implemented in January 2023.
Challenges Ahead
- Revenue shortfall in Q4.
- Lower gross margins quarter-over-quarter in Q4.
- Adjusted EBITDA loss of $14.2 million in Q4.
- Macroeconomic conditions are increasingly challenging.
Historical Earnings Impact
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