Xometry, a digital platform for manufacturing services, reports strong year-on-year revenue growth of 31% for the fourth quarter of 2023. This development was driven by the Marketplace segment with an increase of 42%. In contrast, revenue from Supplier Services fell by 15%, which is largely due to the discontinued materials distribution division.
The gross margin in the core business increased by 500 basis points to 31.3% in the fourth quarter. Overall, gross profit grew by 39 percent, driven by the marketplace division. Xometry also succeeded in significantly reducing its adjusted EBITDA loss by 12.8 million dollars compared to the same quarter of the previous year. Randy Altschuler, CEO of Xometry, attributes this to “higher revenues, gross profits, operational efficiencies and further savings while investing in sales and international expansion”.
Growth drivers: AI, cooperations and acquisitions
The company is driving forward the further development of its AI-based instant quote engine. Ongoing improvements and the integration of additional production processes should provide customers with an even faster and more accurate service. Other growth levers include the expansion of the supplier and customer portfolio and the development of new markets. In 2023, a partnership with Alibaba’s trading platform 1688.com was announced and the Turkish manufacturer Tridi was acquired.
Despite a strong year overall in 2023, Xometry initially anticipates a slowdown in growth in 2024. Nevertheless, the company is confident that it can continue to grow profitably with its AI-supported platform and targeted investments.
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