Xometry Inc (XMTR)XMTR

Xometry Inc.: A Comprehensive Overview

Company Profile

History and Background:

Xometry Inc. (NASDAQ: XMTRY) is a leading on-demand manufacturing platform based in Gaithersburg, Maryland. Founded in 2013 by Randy Altschuler, Laurence Zuriff, and Will Gaybrick, the company started as a 3D printing marketplace and has evolved into a comprehensive platform connecting manufacturers with customers seeking custom parts. Xometry's journey includes acquisitions like Shift (2022) and Thomasnet (2021), expanding its reach and services.

Core Business Areas:

• On-demand Manufacturing: Xometry provides instant quotes and production capabilities for various manufacturing processes, including CNC machining, 3D printing, sheet metal fabrication, and injection molding.
• Industry 4.0 Solutions: Xometry offers AI-powered tools to optimize production processes and improve efficiency for manufacturers.
• Marketplace: Xometry's platform connects customers with over 5,000 qualified manufacturing partners, enabling them to find the right solution for their specific needs.

Leadership Team and Corporate Structure:

• Randy Altschuler, CEO and Co-Founder: Leads the company with extensive experience in technology and entrepreneurship.
• Jim Joyce, CFO: Brings over 25 years of financial leadership experience to Xometry.
• Laurence Zuriff, President and Co-Founder: Oversees the company's business operations and growth strategies.
• Xometry's corporate structure comprises a Board of Directors, executive leadership team, and various departments responsible for operations, marketing, sales, finance, and technology.

Top Products and Market Share:

Top Products and Offerings:

• Instant Quoting Engine: Provides real-time pricing and lead times for custom parts.
• Xometry Direct: Offers simplified ordering and production management for low-volume parts.
• Xometry Europe: Expands the platform's reach to European manufacturers and customers.
• Thomasnet: Provides access to a vast industrial supplier network and product information.

Market Share:

Precise market share data for Xometry is not readily available. However, the company holds a significant presence in the on-demand manufacturing space. It is estimated to be one of the leading players in the US market, competing with companies like Protolabs and Hubs.

Product Performance and Market Reception:

Xometry's platform has been well-received by customers and manufacturers. Its user-friendly interface, instant quoting, and wide range of services have contributed to its popularity. The company has also been recognized for its innovation and commitment to sustainability.

Total Addressable Market

The global on-demand manufacturing market is expected to reach $50.8 billion by 2027, growing at a CAGR of 17.5%. Xometry operates in a significant portion of this market, focusing on the $13.8 billion US market for custom manufacturing.

Financial Performance:

Recent Financial Statements:

• Revenue: Xometry's revenue for the fiscal year 2022 was $434.8 million, representing a 51% year-over-year increase.
• Net Income: The company reported a net income of $12.4 million in 2022, compared to a net loss of $27.6 million in 2021.
• Profit Margins: Gross profit margin stood at 31.3% in 2022, while the operating margin was 1.9%.
• Earnings per Share (EPS): Xometry's diluted EPS for 2022 was $0.12, compared to a loss per share of $0.29 in 2021.

Cash Flow and Balance Sheet:

Xometry's cash flow from operations in 2022 was $23.2 million, indicating a positive cash flow generation. The company's balance sheet shows a healthy cash position of $102.8 million as of December 31, 2022.

Dividends and Shareholder Returns:

Dividend History: Xometry does not currently pay dividends.

Shareholder Returns:

• 1-Year: -38.8%
• 5-Year: -43.2%
• 10-Year: N/A (company IPO'd in 2021)

Growth Trajectory:

Historical Growth: Xometry has experienced significant revenue growth in recent years. The company's revenue grew by 51% in 2022 and 114% in 2021.

Future Growth Projections: Xometry expects to continue its growth trajectory, driven by increasing demand for on-demand manufacturing, expanding its product offerings, and entering new markets.

Recent Product Launches and Strategic Initiatives:

• Launch of Xometry Europe in 2022.
• Acquisition of Thomasnet in 2021, expanding the company's reach and offerings.
• Investment in AI-powered tools to optimize production processes and improve efficiency.

Market Dynamics:

Industry Overview: The on-demand manufacturing industry is experiencing rapid growth, driven by factors such as technological advancements, the need for customization, and shorter product lifecycles.

Xometry's Positioning: Xometry is well-positioned in the industry, offering a comprehensive platform, a wide range of manufacturing processes, and a focus on innovation. The company is also adapting to market changes by expanding its services and entering new markets.

Competitors:

Key Competitors:

• Protolabs (PRLB)
• Hubs (HUBS)
• 3D Systems (DDD)
• Stratasys (SSYS)
• Xometry Europe (XMTRY.DE)

Market Share and Competitive Advantages:

Xometry's exact market share is not publicly available. However, it is considered a leading player in the US market, competing closely with Protolabs and Hubs. Xometry's competitive advantages include its comprehensive platform, instant quoting engine, and focus on customer experience.

Potential Challenges and Opportunities:

Key Challenges:

• Supply chain disruptions.
• Technological advancements that could disrupt the industry.
• Competition from other on-demand manufacturing platforms.

Potential Opportunities:

• Expansion into new markets and industries.
• Development of new and innovative manufacturing processes.
• Strategic partnerships with other companies in the industry.

Recent Acquisitions:

No acquisitions have been made by Xometry Inc. in the last 3 years.

AI-Based Fundamental Rating:

Rating: 7/10

Justification: Xometry has a strong financial position, a leading market position in the on-demand manufacturing industry, and significant growth potential. However, the company faces challenges such as supply chain disruptions and competition. The AI-based rating takes these factors into account and assigns a rating of 7/10, indicating a positive outlook with potential risks.

Disclaimer:

This information is provided for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.

Sources:

• Xometry Inc. Investor Relations website: https://investors.xometry.com/
• Xometry Inc. 10-K filings: https://www.sec.gov/edgar/search/
• Statista: https://www.statista.com/
• MarketWatch: https://www.marketwatch.com/
• Reuters: https://www.reuters.com/

Conclusion:

Xometry is a leading on-demand manufacturing platform with a strong financial position, a leading market position, and significant growth potential. The company is well-positioned to benefit from the growing demand for on-demand manufacturing services. However, Xometry faces challenges such