- Revenue grew 35% year-over-year from
$42.0 million as ofSeptember 30, 2020 to$56.7 million as ofSeptember 30, 2021 . Revenue increased 77% year-over-year in Q3 2021, when excluding sales of masks by one customer from both periods. - Gross profit increased 42% year-over-year to
$14.5 million as ofSeptember 30, 2021 , as compared to$10.2 million as ofSeptember 30, 2020 . Gross profit margin improved to 25.6% as of September 30, 2021 from 24.3% as ofSeptember 30, 2020 . - Active Buyers increased 61% from 16,266 as of
September 30, 2020 to 26,187 as ofSeptember 30, 2021 . - Accounts with Last Twelve-Months Spend of at least
$50,000 increased 67% from 361 as ofSeptember 30, 2020 to 603 as ofSeptember 30, 2021 . - Percentage of Revenue from Existing Accounts was 95%, consistent with the prior quarter.
- Net loss was
$14.7 million for the quarter, an increase of$8.5 million year-over-year, and Adjusted EBITDA was negative$10.0 million for the quarter, reflecting an increase of$5.4 million year-over-year. Net loss for Q3 2021 includes$2.3 million of stock-based compensation expense and$1.2 million of expense for charitable contributions. Xometry expects business momentum to continue and is providing guidance for Q4 2021 of 58%-63% revenue growth year-over-year. Q4 2021 revenue when excluding sales of masks by one customer from both periods, is expected to be 75%-80% year-over-year.- Cash and cash equivalents and marketable securities were
$324.5 million as ofSeptember 30, 2021 .
“Xometry’s third quarter 2021 performance was outstanding as we saw accelerated demand from larger customers across many verticals on our platform”, said
“We remain in the early innings of the secular digitization of the manufacturing industry, one of the largest industries in the world. We continue to grow our great team to build out the leading global on-demand manufacturing marketplace including the recent acquisitions of Big Blue Saw and FactoryFour. Big Blue Saw extends our marketplace capabilities in water jet and laser cutting while FactoryFour will provide a SaaS based solution to help manufacturers in the
“Marketplace trends remain robust in Q4 and we expect revenue growth of 75-80% year-over-year excluding sales of masks by one customer in both periods. Our machine learning pricing algorithms continue to drive improving gross margins and we expect that trend to continue with sequential growth in gross margins from Q3 to Q4.”
Unaudited Financial Summary
(In thousands, except per share amounts)
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||||||||||
Revenue | $ | 56,727 | $ | 41,953 | 35 | % | $ | 151,238 | $ | 103,425 | 46 | % | ||||||||||||
Gross profit | 14,494 | 10,175 | 42 | % | 36,205 | 23,806 | 52 | % | ||||||||||||||||
Net loss | (14,711 | ) | (6,183 | ) | 138 | % | (37,476 | ) | (20,909 | ) | 79 | % | ||||||||||||
EPS—basic and diluted | (0.33 | ) | (1.99 | ) | (83 | )% | (1.87 | ) | (3.98 | ) | (53 | )% | ||||||||||||
Adjusted EBITDA (Non-GAAP)(1) | (10,024 | ) | (4,605 | ) | 118 | % | (27,905 | ) | (16,910 | ) | 65 | % |
(1) These non-GAAP financial measures, and reasons why we believe these non-GAAP financial measures are useful, are described below and reconciled to their most directly comparable GAAP measures in the accompanying tables.
Key Operating Metrics:
As of | ||||||||||||
2021 | 2020 | % Change | ||||||||||
Active Buyers(2) | 26,187 | 16,266 | 61 | % | ||||||||
Percentage of Revenue from Existing Accounts(2) | 95 | % | 96 | % | (1 | )% | ||||||
Accounts with Last Twelve-Months Spend of at Least | 603 | 361 | 67 | % |
(2) Amounts shown for Active Buyers and Accounts with Last Twelve-Months Spend of at Least
Subsequent to Third Quarter 2021
On
On
Financial Guidance and Outlook:
Q4 2021 | |||||||||
(in millions) | |||||||||
Low | High | ||||||||
Revenue | $ | 60.0 | $ | 62.0 | |||||
Adjusted EBITDA | $ | (12.0 | ) | $ | (11.0 | ) |
- In 2020, one customer, that produces masks, accounted for approximately 10% of our revenue in Q4 2020. Excluding revenue from that one customer, growth is expected to be between 75%-80% for Q4 2021, as compared to Q4 2020.
- The acquisitions of Big Blue Saw and FactoryFour are not expected to materially impact our Q4 2021 revenue and Adjusted EBITDA guidance.
Use of Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in
The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense, or cash flows, that affect the Company’s financial performance and operations. An additional limitation of non-GAAP financial measures is that they do not have standardized meanings, and therefore other companies, including peer companies, may use the same or similarly named measures but exclude or include different items or use different computations. Management compensates for these limitations by reconciling these non-GAAP financial measures to their most comparable GAAP financial measures in the tables captioned “Reconciliations of Non-GAAP Financial Measures” included at the end of this release. Investors and others are encouraged to review the Company’s financial information in its entirety and not rely on a single financial measure.
Key Terms for our Key Metrics and Non-GAAP Financial Measures
The Company defines Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) as net income (loss) excluding interest income (expense), income tax (expense) benefit, and certain other non-cash or non-recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, stock-based compensation, charitable contributions and impairment charges. Management believes that the exclusion of certain expenses and gains in calculating Adjusted EBITDA provides a useful measure for period-to-period comparisons of the Company’s underlying core revenue and operating costs that is focused more closely on the current costs necessary to operate the Company’s businesses, and reflects its ongoing business in a manner that allows for meaningful analysis of trends. Management also believes that excluding certain non-cash charges can be useful because the amounts of such expenses is the result of long-term investment decisions made in previous periods rather than day-to-day operating decisions.
Active Buyers: The Company defines “buyers” as individuals who have placed an order to purchase on-demand parts or assemblies on our platform. The Company defines Active Buyers as the number of buyers who have made at least one purchase on our marketplace during the last twelve months.
Percentage of Revenue from Existing Accounts: The Company defines “accounts” as an individual entity, such as a sole proprietor with a single buyer or corporate entities with multiple buyers, having purchased at least one part on our marketplace. The Company defines an existing account as an account where at least one buyer has made a purchase on our marketplace.
Accounts with Last Twelve-Month Spend of At Least
About
Conference Call
The Company will discuss its third quarter and year to date financial results during a teleconference on 11/10/2021, at 5:00 PM EST/
Cautionary Information Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this press release include, but are not limited to, our beliefs regarding our financial position and operating performance, including our outlook and guidance for the third quarter and full year 2021, and demand for our marketplace in general. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks and uncertainties related to: competition, managing our growth, financial performance, including the impact of the COVID-19 pandemic on our business and operations and our ability to forecast our performance due to our limited operating history and the COVID-19 pandemic, investments in new products or offerings, our ability to attract buyers and sellers to our marketplace, legal proceedings and regulatory matters and developments, any future changes to our business or our financial or operating model, and our brand and reputation. The forward-looking statements contained in this press release are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted, including those more fully described in our filings with the
(Tables Follow)
Investor Contact: | Media Contact: |
VP Investor Relations 240-335-8132 shawn.milne@xometry.com | fama PR for 617-396-7740 xometry@famapr.com |
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
2021 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 57,778 | $ | 59,874 | ||||
Marketable securities | 266,739 | — | ||||||
Accounts receivable, less allowance for doubtful accounts of | 25,157 | 14,574 | ||||||
Inventory | 1,427 | 2,294 | ||||||
Prepaid expenses | 4,988 | 913 | ||||||
Total current assets | 356,089 | 77,655 | ||||||
Property and equipment, net | 8,615 | 6,113 | ||||||
Operating lease right-of-use assets | 3,101 | 1,922 | ||||||
Other assets | 204 | 788 | ||||||
Intangible assets, net | 1,455 | 1,652 | ||||||
833 | 833 | |||||||
Total assets | $ | 370,297 | $ | 88,963 | ||||
Liabilities, convertible preferred stock and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 5,198 | $ | 5,640 | ||||
Accrued expenses | 17,487 | 13,606 | ||||||
Contract liabilities | 3,379 | 2,355 | ||||||
Operating lease liabilities, current portion | 1,108 | 1,013 | ||||||
Finance lease liabilities, current portion | 5 | 14 | ||||||
Short-term debt | — | 15,753 | ||||||
Total current liabilities | 27,177 | 38,381 | ||||||
Operating lease liabilities, net of current portion | 2,197 | 1,118 | ||||||
Total liabilities | 29,374 | 39,499 | ||||||
Commitments and contingencies (Note 12) | ||||||||
Convertible preferred stock | ||||||||
Convertible preferred stock, | — | 160,713 | ||||||
Stockholders’ equity (deficit) | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | — | — | ||||||
Class A Common stock, 41,714,711 shares and zero shares issued and outstanding as of | — | — | ||||||
Class | — | — | ||||||
Additional paid-in capital | 490,175 | 503 | ||||||
Accumulated other comprehensive income | 186 | 210 | ||||||
Accumulated deficit | (149,438 | ) | (111,962 | ) | ||||
Total stockholders’ equity (deficit) | 340,923 | (111,249 | ) | |||||
Total liabilities, convertible preferred stock and stockholders’ equity | $ | 370,297 | $ | 88,963 |
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share amounts)
Three Months Ended | Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | $ | 56,727 | $ | 41,953 | $ | 151,238 | $ | 103,425 | ||||||||
Cost of revenue | 42,233 | 31,778 | 115,033 | 79,619 | ||||||||||||
Gross profit | 14,494 | 10,175 | 36,205 | 23,806 | ||||||||||||
Sales and marketing | 9,828 | 5,986 | 26,250 | 15,842 | ||||||||||||
Operations and support | 5,775 | 3,671 | 15,594 | 10,138 | ||||||||||||
Product development | 4,376 | 3,003 | 12,131 | 8,879 | ||||||||||||
General and administrative | 8,778 | 3,282 | 18,343 | 8,792 | ||||||||||||
Total operating expenses | 28,757 | 15,942 | 72,318 | 43,651 | ||||||||||||
Loss from operations | (14,263 | ) | (5,767 | ) | (36,113 | ) | (19,845 | ) | ||||||||
Other (expenses) income | ||||||||||||||||
Interest expense | (79 | ) | (309 | ) | (799 | ) | (939 | ) | ||||||||
Interest and dividend income | 417 | 2 | 457 | 215 | ||||||||||||
Other expenses | (786 | ) | (109 | ) | (1,021 | ) | (340 | ) | ||||||||
Total other expenses | (448 | ) | (416 | ) | (1,363 | ) | (1,064 | ) | ||||||||
Net loss | (14,711 | ) | (6,183 | ) | (37,476 | ) | (20,909 | ) | ||||||||
Deemed dividend to preferred stockholders | — | (8,801 | ) | — | (8,801 | ) | ||||||||||
Net loss attributable to common stockholders | $ | (14,711 | ) | $ | (14,984 | ) | $ | (37,476 | ) | $ | (29,710 | ) | ||||
Net loss per share, basic and diluted | $ | (0.33 | ) | $ | (1.99 | ) | $ | (1.87 | ) | $ | (3.98 | ) | ||||
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted | 43,962,863 | 7,546,458 | 20,092,600 | 7,458,671 | ||||||||||||
Comprehensive loss: | ||||||||||||||||
Foreign currency translation | $ | (41 | ) | $ | (65 | ) | $ | (24 | ) | $ | (92 | ) | ||||
Total other comprehensive loss | (41 | ) | (65 | ) | (24 | ) | (92 | ) | ||||||||
Net loss | (14,711 | ) | (6,183 | ) | (37,476 | ) | (20,909 | ) | ||||||||
Total comprehensive loss | $ | (14,752 | ) | $ | (6,248 | ) | $ | (37,500 | ) | $ | (21,001 | ) |
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
Nine Months Ended | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (37,476 | ) | $ | (20,909 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 2,304 | 2,256 | ||||||
Reduction in carrying amount of right-of-use asset | 912 | 770 | ||||||
Stock based compensation | 4,747 | 679 | ||||||
Non-cash interest expense | 111 | 238 | ||||||
Loss on debt extinguishment | 272 | - | ||||||
Donation of common stock | 1,157 | - | ||||||
Unrealized loss on marketable securities | 239 | - | ||||||
Changes in other assets and liabilities: | ||||||||
Accounts receivable, net | (10,645 | ) | (4,381 | ) | ||||
Inventory | 842 | (618 | ) | |||||
Prepaid expenses | (4,080 | ) | 88 | |||||
Other assets | 580 | (544 | ) | |||||
Accounts payable | (400 | ) | (3,142 | ) | ||||
Accrued expenses | 3,931 | 8,100 | ||||||
Contract liabilities | 1,053 | 1,038 | ||||||
Lease liabilities | (917 | ) | (720 | ) | ||||
Net cash used in operating activities | (37,370 | ) | (17,145 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchase of marketable securities | (266,978 | ) | - | |||||
Purchase of short-term investments | - | (17,711 | ) | |||||
Proceeds from short-term investments | - | 28,571 | ||||||
Purchases of property and equipment | (4,625 | ) | (2,888 | ) | ||||
Net cash (used in) provided by investing activities | (271,603 | ) | 7,972 | |||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of Series A-2, Series B, Series C, Series D and Series E convertible preferred stock, net of issuance costs | - | 52,409 | ||||||
Repurchase of Series A-2, Series B, Series C and Series D convertible preferred stock | - | (12,852 | ) | |||||
Deemed dividend to preferred stockholders | - | (8,801 | ) | |||||
Proceeds from initial public offering, net of underwriters' discount | 325,263 | - | ||||||
Payments in connection with initial public offering | (3,995 | ) | - | |||||
Proceeds from stock options exercised | 1,787 | 405 | ||||||
Proceeds from term loan | - | 4,000 | ||||||
Repayment of term loan | (16,136 | ) | - | |||||
Proceeds from other borrowings | - | 4,783 | ||||||
Repayment of other borrowings | - | (4,783 | ) | |||||
Payments on finance lease obligations | (9 | ) | (9 | ) | ||||
Net cash provided by financing activities | 306,910 | 35,152 | ||||||
Effect of foreign currency translation on cash and cash equivalents | (33 | ) | (9 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (2,096 | ) | 25,970 | |||||
Cash and cash equivalents at beginning of period | 59,874 | 40,122 | ||||||
Cash and cash equivalents at end of period | $ | 57,778 | $ | 66,092 | ||||
Supplemental cash flow information: | ||||||||
Cash paid for interest | $ | 907 | $ | 970 | ||||
Non-cash investing activity: | ||||||||
Non-cash purchase of property and equipment | $ | (19 | ) | $ | - |
Unaudited Reconciliations of Non-GAAP Financial Measures
(In thousands)
Three Months Ended | Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Adjusted EBITDA: | ||||||||||||||||
Net loss | $ | (14,711 | ) | $ | (6,183 | ) | $ | (37,476 | ) | $ | (20,909 | ) | ||||
Add (deduct): | ||||||||||||||||
Interest expense, interest and dividend income and other expense | 448 | 416 | 1,363 | 1,064 | ||||||||||||
Depreciation and amortization(1) | 816 | 869 | 2,304 | 2,256 | ||||||||||||
Charitable contribution of common stock | 1,157 | — | 1,157 | — | ||||||||||||
Stock-based compensation(2) | 2,266 | 293 | 4,747 | 679 | ||||||||||||
Adjusted EBITDA | $ | (10,024 | ) | $ | (4,605 | ) | $ | (27,905 | ) | $ | (16,910 | ) |
(1) Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP results of operations.
(2) Represents the expense related to stock-based awards granted to employees, as included in the Company’s GAAP results of operations.
Unaudited Segment Results
(In thousands)
Three Months Ended | Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Segment Revenue: | ||||||||||||||||
$ | 51,739 | $ | 41,145 | $ | 140,266 | $ | 101,537 | |||||||||
4,988 | 808 | 10,972 | 1,888 | |||||||||||||
Total revenue | $ | 56,727 | $ | 41,953 | $ | 151,238 | $ | 103,425 | ||||||||
Segment Net Loss: | ||||||||||||||||
$ | (12,550 | ) | $ | (4,101 | ) | $ | (30,152 | ) | $ | (16,092 | ) | |||||
(2,161 | ) | (2,082 | ) | (7,324 | ) | (4,817 | ) | |||||||||
Total net loss | $ | (14,711 | ) | $ | (6,183 | ) | $ | (37,476 | ) | $ | (20,909 | ) |
Unaudited Supplemental Information
(In thousands)
Three Months Ended | Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Summary of Stock-based Compensation Expense | ||||||||||||||||
Sales and marketing | $ | 335 | $ | 46 | $ | 690 | $ | 106 | ||||||||
Operations and support | 670 | 75 | 1,364 | 175 | ||||||||||||
Product development | 488 | 109 | 979 | 253 | ||||||||||||
General and administrative | 773 | 63 | 1,714 | 145 | ||||||||||||
Total stock-based compensation expense | $ | 2,266 | $ | 293 | $ | 4,747 | $ | 679 | ||||||||
Summary of Depreciation and Amortization Expense | ||||||||||||||||
Cost of revenue | $ | 21 | $ | 60 | $ | 70 | $ | 178 | ||||||||
Sales and marketing | 26 | 161 | 88 | 508 | ||||||||||||
Operations and support | 31 | 46 | 118 | 144 | ||||||||||||
Product development | 672 | 514 | 1,913 | 1,220 | ||||||||||||
General and administrative | 66 | 88 | 115 | 206 | ||||||||||||
Total depreciation and amortization expense | $ | 816 | $ | 869 | $ | 2,304 | $ | 2,256 |
For the three and nine months ended
Source:
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