Xometry Inc. has announced record financial results in its Q3 2023 earnings call, including the highest revenue and gross profit in the company’s history. The company is on track to potentially break even in Q4, following a 51% reduction in its adjusted EBITDA loss from the previous quarter. Xometry also announced the launch of Teamspace, a collaboration tool, and a partnership with Google (NASDAQ:GOOGL) Cloud to leverage Vertex (NASDAQ:VRTX) AI for instant quoting on its marketplace.

Key takeaways from the call include:

• Xometry’s Q3 revenue grew 15% YoY to $119 million, driven by a 22% YoY increase in marketplace revenue.
• The company expects overall revenue growth of around 30% in Q4.
• Gross profit increased 13% YoY to $46.2 million, with marketplace gross margin expanding by 550 basis points over the past two years.
• Xometry anticipates marketplace gross margins to increase sequentially in Q4.
• The company aims to achieve adjusted EBITDA profitability in 2024 and expects robust growth in the coming years.
• The number of active buyers increased by 43% year-over-year to 52,467, with a record net addition of 4,173 active buyers.
• Xometry expects marketplace revenue growth and active buyer growth to converge in Q4, driving overall marketplace revenue growth of approximately 40% year-over-year.
• The company reported a 15% increase in revenue year-over-year to $119 million, driven by strong marketplace growth.
• Supplier services revenue declined by 16% year-over-year in Q3 due to the discontinuation of the sale of supplies.
• The company expects revenue in the range of $126 million to $130 million in Q4, representing year-over-year growth of 28% to 32%.
• They expect adjusted EBITDA to be in the range of breakeven to a loss of $2 million in Q4.

CEO Randy Altschuler discussed the performance and trends in various service lines, noting strong growth across all categories. He also highlighted the company’s partnership with Google Cloud, which will help accelerate the expansion and deployment of new categories in their auto quoting engine. Altschuler expects this partnership to have a material impact on the number of categories and different processes they can auto quote.

Looking ahead to 2024, Xometry anticipates robust growth in net active buyers, stable marketplace revenue per active buyer, and growth in supplier services. The company has seen strong penetration in their top 200 accounts, with Teamspace being the fastest adopted product in company history.

In terms of financials, the company is mindful of recent currency changes potentially impacting Q4 revenue. They are considering adding metrics for accounts with higher spend amounts and are investing in enterprise sales efforts to drive committed spend from their largest customers.