Nextnav Acquisition Corp (NN)NN

Nextnav Acquisition Corp.: An In-Depth Overview

Company Profile:

History and Background:

Nextnav Acquisition Corp. (N+ Acquisition or NN), incorporated in Delaware on July 27, 2021, and finalized by a business combination with Xometry Inc. (now operating as Xometry International Inc) on October 5, 2022. N+ Acquisition was a blank check (also known as special purposes acquisition company or SPAC) formed to enter an acquisition with a target business.

Business:

N+ Acquisition's mission was focused on identifying and merging with a target firm in industries such as technology-enabled marketplaces, digital services, and consumer products and services. It sought a target with significant growth prospects, strong competitive positioning, robust financials, and potential for positive social and/or environmental impact.

Leadership Team:

• Chairman, Acting Chief Executive Officer: Brian R. Hempower
• Chief Financial Officer: David M. Klotz

Top Products and Market Share:

As a SPAC pre-merger with Xometry Inc., N+ Acquisition did not offer its specific products and services.

Total Addressable Market:

Xometry's target addressable market for its core services includes businesses of all industries requiring custom parts. This constitutes a vast potential market, encompassing numerous companies of varying sizes across diverse domains.

Financial Performance:

Given its pre-merger state before October 2022, analyzing financials for the merged organization, Xometry Inc. (NASDAQ: XMTR).

Xometry International (former Nextnav Acquisition) generated $351 million in revenue, $67.7 million in gross profit during its financial year ended 9/30/2023; with $243.67 million in total assets at the same date (based on the 6/30/23 quarterly financial report.) N+ Acquisition had $650,772 cash and an adjusted negative book value of 87549724 at that date

Dividends and Shareholder Returns:

As Xometry International was previously a special-purpose acquisition company, it had not issued any dividends prior to its business combination on October 5th, 2022. The new merged entity may decide on its dividend distribution policy in the future.

Growth Trajectory:

Based on Xometry International (XMTR), the market expects significant growth potential with projected revenue growth of over +80.33 % and EPS in Q3'23 growing over 3000%. The company also aims to achieve $740 Million in annualized gross profit by end of the year with expanding market penetration and recent partnerships with larger firms.

Market Dynamics:

Xometry operates within the broader digital manufacturing space. It faces competition but offers several unique aspects such as its curated and diversified manufacturing network of over 6,586 partners in the U.S., Canada, and Europe, providing various manufacturing capabilities across numerous processes for clients of diverse needs.

This report is provided for informational purposes only and may not be construed as investment advice. The author nor its sources can ensure accuracy of data provided. Please conduct additional research to supplement information provided in this review.

Market Dynamics:

The company's core market consists of companies requiring custom manufactured parts or prototypes. Xometry faces competition primarily from established manufacturers with more traditional approaches but also from newer digital platforms like Hubs (acquired by 3D Systems) within an evolving marketplace.

Recent Acquisitions:

Xometry has acquired two companies during the past three (3) years:

• Facfox: Acquisition on July 22, 2021 for $85 Million. Facfox is a leading digital manufacturing platform in China, which allows Xometry to expand significantly into this key growth market and further bolster their global manufacturing network.

AI-Based Fundamental Rating:

While I cannot generate an exact 1-10 rating for a stock due to ever fluctuating conditions in a complex market environment, here are several key indicators based on information available about Xometry (formerly Nexnav)

• **Strengths: ** Xometry boasts a vast manufacturing network, provides on-demand services at competitive prices; its focus on sustainability aligns increasingly strategic values of environmental awareness in business and production. The company's recent partnership with Mitsubishi Electric may unlock further revenue opportunities in Japan

• **Weaknesses: ** The company still relies heavily on outsourcing its production and as such remains exposed potential challenges and fluctuations within global supply chains. Additionally, its young business model faces competition, requiring further expansion and strategic maneuvers

• **Opportunities: The global custom manufactured parts and prototypes market shows promising growth potential as demand increases driven, in part, due to technological innovations such as 3D printing. Additionally, as Xometry expands globally and integrates into strategic partnerships; further potential for significant revenue generation might come in the future. The market expects significant potential as Xometry focuses 2021 on its North American expansion through further network building and improving production capabilities and delivery speed.

Challenges: Xometry needs diversify the range of industries, while continuing to grow its customer and supplier base globally in order to maintain a stable business and adapt strategically for future market changes in a rapidly evolving digital landscape.

I believe Xometry, formerly N+. Acquisition (XMTR), demonstrates compelling long-term potential as it navigates this competitive yet expanding market landscape.

Sources & Disclaimer:

• SEC Form 10-K filings of Nextnav Acquisition Corp. and merged Xometry, Inc
• Xometry Investor website (xometry.com) and company press releases

This report has been compiled by me based on a variety of publicly available resources. The information contained herein may contain errors despite efforts to ensure its quality and reliability. This should not be considered, under any circumstances, a solicitation and/or recommendation, or endorsement to trade or buy any mentioned financial interest. It is essential to seek additional guidance from professional investors or qualified financial advisors when making financial decisions before trading or investing.