- Revenue grew 45% year-over-year from
$34.8 million as ofJune 30, 2020 to$50.6 million as ofJune 30, 2021 . - Active Buyers increased 66% from 14,460 as of
June 30, 2020 to 23,942 as ofJune 30, 2021 . - Percentage of Revenue From Existing Accounts was 95%.
- Accounts with Last Twelve-Months Spend of at least
$50,000 increased 54% from 330 as ofJune 30, 2020 to 508 as ofJune 30, 2021 . - Gross Profit increased 44% year-over-year to
$11.9 million as ofJune 30, 2021 , as compared to$8.3 million as ofJune 30, 2020 . - Net loss was
$12.3 million for the quarter, an increase of$6.1 million year-over-year, and Adjusted EBITDA was negative$9.1 million for the quarter, reflecting an increase of$4.3 million year-over-year. Net loss for Q2 2021 includes$2.0 million of stock-based compensation expense. - Cash and cash equivalents was
$37.4 million at quarter end with$15.9 million in debt outstanding. OnJuly 2, 2021 , we completed our initial public offering, raising net proceeds of$325.3 million after deducting underwriting discounts and commissions.
“Buyers and sellers around the world are choosing the
“Second quarter results were strong across all key metrics. We delivered 45% year-over-year revenue growth, 66% year-over-year active buyer growth and sequentially improved gross margin over the first quarter of 2021. While we are proud of these results, we are even prouder of the team that got us here, of the business we have built together, and of the great experiences that we deliver to our customers.”
Unaudited Financial Summary (In thousands, except per share amounts) | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||||||||||
Revenue | $ | 50,589 | $ | 34,783 | 45 | % | $ | 94,510 | $ | 61,472 | 54 | % | ||||||||||||
Gross Profit | 11,875 | 8,265 | 44 | % | 21,710 | 13,631 | 59 | % | ||||||||||||||||
Net Loss | (12,264 | ) | (6,119 | ) | 100 | % | (22,765 | ) | (14,726 | ) | 55 | % | ||||||||||||
EPS—basic and diluted | (1.46 | ) | (0.82 | ) | 78 | % | (2.79 | ) | (1.99 | ) | 40 | % | ||||||||||||
Adjusted EBITDA (Non-GAAP1) | (9,073 | ) | (4,788 | ) | 89 | % | (17,882 | ) | (12,303 | ) | 45 | % | ||||||||||||
(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) | 23,942 | 14,460 | 66 | % | ||||||||
Percentage of Revenue from Existing Accounts(2) | 95 | % | 94 | % | 1 | % | ||||||
Accounts with Last Twelve-Months Spend of at Least | 508 | 330 | 54 | % |
(2) Amounts shown for Active Buyers and Accounts with Last Twelve-Months Spend of at Least
Subsequent to Second Quarter 2021
On
Upon the closing of the IPO on
Also on
On
Financial Guidance and Outlook:
Q3 2021 | FY 2021 | |||||||||||||||
(in millions) | ||||||||||||||||
Low | High | Low | High | |||||||||||||
Revenue | $ | 53.0 | $ | 55.0 | $ | 207.5 | $ | 211.5 | ||||||||
Adjusted EBITDA | $ | (13.0 | ) | $ | (12.0 | ) | $ | (43.0 | ) | $ | (41.0 | ) | ||||
- In 2020, one customer, that produces masks, accounted for approximately 11% of our revenue with a majority of that revenue recognized in Q3 2020. Excluding revenue from that one customer, growth is expected to range between 66%-72% for Q3 2021, as compared to Q3 2020.
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 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 second quarter and year to date financial results during a teleconference on (8/12/2021), at (
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 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 37,351 | $ | 59,874 | ||||
Accounts receivable, less allowance for doubtful accounts of | 21,432 | 14,574 | ||||||
Inventory | 1,503 | 2,294 | ||||||
Prepaid expenses | 6,183 | 913 | ||||||
Other current assets | 26,462 | — | ||||||
Total current assets | 92,931 | 77,655 | ||||||
Property and equipment, net | 7,638 | 6,113 | ||||||
Operating lease right-of-use assets | 2,275 | 1,922 | ||||||
Other assets | 285 | 788 | ||||||
Intangible assets, net | 1,521 | 1,652 | ||||||
833 | 833 | |||||||
Total assets | $ | 105,483 | $ | 88,963 | ||||
Liabilities, convertible preferred stock and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 13,138 | $ | 5,640 | ||||
Accrued expenses | 39,200 | 13,606 | ||||||
Contract liabilities | 4,252 | 2,355 | ||||||
Operating lease liabilities, current portion | 920 | 1,013 | ||||||
Finance lease liabilities, current portion | 8 | 14 | ||||||
Short-term debt | 15,864 | 15,753 | ||||||
Total current liabilities | 73,382 | 38,381 | ||||||
Operating lease liabilities, net of current portion | 1,573 | 1,118 | ||||||
Total liabilities | 74,955 | 39,499 | ||||||
Commitments and contingencies (Note 13) | ||||||||
Convertible preferred stock | ||||||||
Convertible preferred stock- Seed-1, | 4,200 | 4,200 | ||||||
Convertible preferred stock- Seed-2, | 2,998 | 2,998 | ||||||
Convertible preferred stock- Series A-1, | 8,704 | 8,704 | ||||||
Convertible preferred stock- Series A-2, | 12,839 | 12,839 | ||||||
Convertible preferred stock- Series B, | 20,347 | 20,347 | ||||||
Convertible preferred stock- Series C, | 26,004 | 26,004 | ||||||
Convertible preferred stock- Series D, | 54,864 | 54,864 | ||||||
Convertible preferred stock- Series E, | 30,757 | 30,757 | ||||||
Stockholders’ deficit | ||||||||
Common stock, | — | — | ||||||
Additional paid-in capital | 4,315 | 503 | ||||||
Accumulated other comprehensive income | 227 | 210 | ||||||
Accumulated deficit | (134,727 | ) | (111,962 | ) | ||||
Total stockholders’ deficit | (130,185 | ) | (111,249 | ) | ||||
Total liabilities, convertible preferred stock and stockholders’ equity | $ | 105,483 | $ | 88,963 |
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share amounts)
Three Months Ended | Six Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | $ | 50,589 | $ | 34,783 | $ | 94,510 | $ | 61,472 | ||||||||
Cost of revenue | 38,714 | 26,518 | 72,800 | 47,841 | ||||||||||||
Gross profit | 11,875 | 8,265 | 21,710 | 13,631 | ||||||||||||
Sales and marketing | 8,858 | 5,126 | 16,422 | 9,856 | ||||||||||||
Operations and support | 5,489 | 3,173 | 9,820 | 6,466 | ||||||||||||
Product development | 4,091 | 2,919 | 7,755 | 5,877 | ||||||||||||
General and administrative | 5,238 | 2,773 | 9,562 | 5,510 | ||||||||||||
Total operating expenses | 23,676 | 13,991 | 43,559 | 27,709 | ||||||||||||
Loss from operations | (11,801 | ) | (5,726 | ) | (21,849 | ) | (14,078 | ) | ||||||||
Other expenses | ||||||||||||||||
Interest expense, net | (350 | ) | (264 | ) | (681 | ) | (417 | ) | ||||||||
Other expenses | (113 | ) | (129 | ) | (235 | ) | (231 | ) | ||||||||
Total other expenses | (463 | ) | (393 | ) | (916 | ) | (648 | ) | ||||||||
Net loss | $ | (12,264 | ) | $ | (6,119 | ) | $ | (22,765 | ) | $ | (14,726 | ) | ||||
Net loss per share, basic and diluted | $ | (1.46 | ) | $ | (0.82 | ) | $ | (2.79 | ) | $ | (1.99 | ) | ||||
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted | 8,390,088 | 7,473,918 | 8,158,753 | 7,414,295 | ||||||||||||
Comprehensive (loss) income: | ||||||||||||||||
Foreign currency translation | $ | (13 | ) | $ | 22 | $ | 17 | $ | (27 | ) | ||||||
Total other comprehensive (loss) income | (13 | ) | 22 | 17 | (27 | ) | ||||||||||
Net loss | (12,264 | ) | (6,119 | ) | (22,765 | ) | (14,726 | ) | ||||||||
Total comprehensive loss | $ | (12,277 | ) | $ | (6,097 | ) | $ | (22,748 | ) | $ | (14,753 | ) |
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
Six Months Ended | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (22,765 | ) | $ | (14,726 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 1,487 | 1,389 | ||||||
Reduction in carrying amount of right-of-use asset | 543 | 509 | ||||||
Stock based compensation | 2,480 | 386 | ||||||
Non-cash interest expense | 111 | 156 | ||||||
Changes in other assets and liabilities: | ||||||||
Accounts receivable, net | (6,874 | ) | (768 | ) | ||||
Inventory | 778 | (772 | ) | |||||
Prepaid expenses | (5,270 | ) | (3 | ) | ||||
Other assets | 500 | 13 | ||||||
Accounts payable | 7,522 | (260 | ) | |||||
Accrued expenses | (453 | ) | 2,080 | |||||
Contract liabilities | 1,915 | 790 | ||||||
Lease liabilities | (534 | ) | (444 | ) | ||||
Net cash used in operating activities | (20,560 | ) | (11,650 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchase of short-term investments | - | (17,711 | ) | |||||
Proceeds from short-term investments | - | 28,571 | ||||||
Purchases of property and equipment | (2,748 | ) | (1,966 | ) | ||||
Net cash (used in) provided by investing activities | (2,748 | ) | 8,894 | |||||
Cash flows from financing activities: | ||||||||
Proceeds from stock options exercised | 1,332 | 163 | ||||||
Proceeds from term loan | - | 4,000 | ||||||
Proceeds from other borrowings | - | 4,783 | ||||||
Payments on finance lease obligations | (6 | ) | (6 | ) | ||||
Payments in connection with initial public offering | (524 | ) | - | |||||
Net cash provided by financing activities | 802 | 8,940 | ||||||
Effect of foreign currency translation on cash and cash equivalents | (17 | ) | (2 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (22,523 | ) | 6,182 | |||||
Cash and cash equivalents at beginning of period | 59,874 | 40,122 | ||||||
Cash and cash equivalents at end of period | $ | 37,351 | $ | 46,304 | ||||
Supplemental cash flow information: | ||||||||
Cash paid for interest | $ | 659 | $ | 605 | ||||
Non-cash investing activity: | ||||||||
Non-cash purchase of property and equipment | $ | (150 | ) | $ | - | |||
Non-cash financing activity: | ||||||||
Non-cash amounts incurred in connection with initial public offering | $ | (25,938 | ) | $ | - |
Unaudited Reconciliations of Non-GAAP Financial Measures
(In thousands)
Three Months Ended | Six Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Adjusted EBITDA: | ||||||||||||||||
Net loss | $ | (12,264 | ) | $ | (6,119 | ) | $ | (22,765 | ) | $ | (14,726 | ) | ||||
Add (deduct): | ||||||||||||||||
Interest and other expense | 463 | 393 | 916 | 648 | ||||||||||||
Depreciation and amortization(1) | 753 | 700 | 1,487 | 1,389 | ||||||||||||
Stock-based compensation(2) | 1,975 | 238 | 2,480 | 386 | ||||||||||||
Adjusted EBITDA | $ | (9,073 | ) | $ | (4,788 | ) | $ | (17,882 | ) | $ | (12,303 | ) |
(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 | Six Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Segment Revenue: | ||||||||||||||||
$ | 47,228 | $ | 34,135 | $ | 88,526 | $ | 60,393 | |||||||||
3,361 | 648 | 5,984 | 1,079 | |||||||||||||
Total revenue | $ | 50,589 | $ | 34,783 | $ | 94,510 | $ | 61,472 | ||||||||
Segment Net Loss: | ||||||||||||||||
$ | (9,440 | ) | $ | (4,548 | ) | $ | (17,602 | ) | $ | (11,991 | ) | |||||
(2,824 | ) | (1,571 | ) | (5,163 | ) | (2,735 | ) | |||||||||
Total net loss | $ | (12,264 | ) | $ | (6,119 | ) | $ | (22,765 | ) | $ | (14,726 | ) |
Unaudited Pro Forma Condensed Consolidated Balance Sheet
(In thousands)
The following unaudited pro forma condensed consolidated balance sheet is provided to reflect our cash and capitalization had the IPO occurred on
- The issuance of 7,906,250 shares of Class A common stock in connection with the IPO and the receipt of
$325.3 million of net cash proceeds; - The repayment of our
$15.9 million term loan outstanding; - The reclassification and payment of all deferred IPO related costs recorded in Other current assets (
$26.5 million ) and Accrued expenses ($25.9 million ) to Additional paid-in capital (not included is the payment of our remaining IPO related costs which we estimate to be between$3.4 million and$4.4 million ); - The conversion of 8,665,797 shares of our common stock to Class A common stock;
- The conversion of 27,758,941 shares of our convertible preferred stock to Class A common stock; and
- The exchange of 2,676,154 shares of Class A common stock held by our co-founders for an equivalent number of shares of Class B common stock.
Unaudited Pro Forma Condensed Consolidated Balance Sheet - continued
(In thousands)
Unaudited Pro | ||||||||||||
Unaudited | Forma | |||||||||||
Condensed | Condensed | |||||||||||
Consolidated | Consolidated | |||||||||||
Balance Sheet | Balance Sheet | |||||||||||
2021 | Adjustments | 2021 | ||||||||||
Cash and cash equivalents | $ | 37,351 | $ | 309,399 | (1)(2) | $ | 346,750 | |||||
Accounts receivable | 21,432 | - | 21,432 | |||||||||
Other current assets | 34,148 | (26,462 | ) | (3) | 7,686 | |||||||
Total current assets | 92,931 | 282,937 | 375,868 | |||||||||
Property and equipment, net and operating lease right-of-use assets | 9,913 | - | 9,913 | |||||||||
Other assets | 2,639 | - | 2,639 | |||||||||
Total assets | $ | 105,483 | $ | 282,937 | $ | 388,420 | ||||||
Accounts payable | $ | 13,138 | $ | - | $ | 13,138 | ||||||
Accrued expenses | 39,200 | (25,938 | ) | (3) | 13,262 | |||||||
Other current liabilities | 5,180 | - | 5,180 | |||||||||
Short-term debt | 15,864 | (15,864 | ) | (2) | - | |||||||
Total current liabilities | 73,382 | (41,802 | ) | 31,580 | ||||||||
Operating lease liabilities, net of current portion | 1,573 | - | 1,573 | |||||||||
Total liabilities | 74,955 | (41,802 | ) | 33,153 | ||||||||
Convertible preferred stock - | 160,713 | (160,713 | ) | (5) | - | |||||||
Common stock - | - | - | (4) | - | ||||||||
Preferred stock - | - | - | - | |||||||||
Class A common stock - | - | - | (4)(5) | - | ||||||||
Class B common stock - | - | - | (6) | - | ||||||||
Additional paid-in capital | 4,315 | 485,452 | 489,767 | |||||||||
Accumulated other comprehensive income | 227 | - | 227 | |||||||||
Accumulated deficit | (134,727 | ) | - | (134,727 | ) | |||||||
Total stockholders' (deficit) equity | (130,185 | ) | 485,452 | 355,267 | ||||||||
Total liabilities and stockholders' equity | $ | 105,483 | $ | 282,937 | $ | 388,420 |
Unaudited Supplemental Information
(In thousands)
Three Months Ended | Six Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Summary of Stock-based Compensation Expense | ||||||||||||||||
Sales and marketing | $ | 302 | $ | 37 | $ | 355 | $ | 60 | ||||||||
Operations and support | 590 | 61 | 694 | 99 | ||||||||||||
Product development | 417 | 88 | 491 | 143 | ||||||||||||
General and administrative | 666 | 52 | 940 | 84 | ||||||||||||
Total stock-based compensation expense | $ | 1,975 | $ | 238 | $ | 2,480 | $ | 386 | ||||||||
Summary of Depreciation and Amortization Expense | ||||||||||||||||
Cost of revenue | $ | 12 | $ | 58 | $ | 49 | $ | 118 | ||||||||
Sales and marketing | 30 | 174 | 61 | 347 | ||||||||||||
Operations and support | 56 | 47 | 88 | 98 | ||||||||||||
Product development | 631 | 350 | 1,240 | 706 | ||||||||||||
General and administrative | 24 | 71 | 49 | 120 | ||||||||||||
Total depreciation and amortization expense | $ | 753 | $ | 700 | $ | 1,487 | $ | 1,389 |
Source:
2021 GlobeNewswire, Inc., source