Xometry, Inc. CEO and CFO Discuss AI-Powered Custom Manufacturing Marketplace and Growth Strategies at JPMorgan Global Technology Conference
Key Takeaways
TL;DR: Xometry (XMTR) emphasizes AI-driven marketplace leadership in custom mfg. ($2T+ TAM), +27% YoY Q1/25 marketplace growth, accelerating production work (7K Teamspace users), LT 35-40% GP margin target, raised FY25 guidance (marketplace ≥22% growth). Int’l expansion (15% revs; EU/Asia focus), Thomasnet cross-sell (90% GP margins), and AI-driven supplier matching bolster durable growth & profitability.
1. AI-Powered Marketplace & Growth Drivers
- $2T+ TAM: Fragmented custom mfg. industry, optimized via AI pricing/supplier matching across 18 localized marketplaces. Instantly quoted categories (e.g., injection molding in EU) enhance buyer stickiness.
- Shift to Production: +40% growth in accounts spending >$500K LTM. 7K Teamspace users (vs. 0 in 2023) enable complex production workflows (~1.5K >$50K spend accounts).
- Int’l Expansion: 15% of revs (↑ faster than U.S.), targeting 30% LT. China contribution grows in 2025; EU/Asia diversifies post-tariff supply chains.
2. Product & Tech Differentiation
- Workcenter: Free MES software for suppliers → ↑ visibility into job status (material orders, QC) + cross-sell potential (monetizes ~500K Thomasnet suppliers).
- GenAI Focus: Core to scaling InstaQuote capabilities (e.g., EU injection molding). Google collab accelerates model deployment.
3. Financials & Profitability
- Raised FY25 Guide: Marketplace growth to ≥22% (prev. ≥20%) on +27% Q1 growth (+30% U.S.).
- Margin Upside: Q1 GM dampened by new market spend (recovery in Q2), exit FY25 ~35% GM (vs. 34.5% in Q4/24).
- Adj. EBITDA+: Profitable in Q4/24 and Q1/25. Path to 20-30% LT adj. EBITDA margins via scale ($1B+ revs) + levered opex.
4. Tariffs & Supply Chain Tailwinds
- Post-“Liberation Day” Oppt'y: Minimal near-term rev. impact but drives awareness for supply chain resilience. 71K buyers gain options across 50 countries.
- U.S. Domestic Shift: Majority of U.S. orders already domestic; slight ↑ in reshoring.
5. Thomasnet Synergies