Xometry, Inc. — FY2021 Form 10-K
Reporting period: Fiscal year ended December 31, 2021. This is an annual filing; it does not provide a clear standalone set of fourth-quarter financial statements. Amounts below are in U.S. dollars.
Business context
Xometry operates an AI-enabled digital manufacturing marketplace, matching buyers of custom parts and assemblies with a distributed network of manufacturers. It generally contracts as the seller to buyers and bears pricing, fulfillment, and product-quality risks. Substantially all 2021 revenue came from marketplace sales; seller services contributed approximately 6%.
During 2021, Xometry completed its IPO and acquired Big Blue Saw, FactoryFour, and Thomas Publishing Company. Thomas was acquired on December 9 for stated consideration of approximately $300 million, payable in cash and stock. Thomas contributed $4.1 million of revenue after acquisition during 2021.
Key financial results
| Metric | FY2021 | FY2020 | Change / context |
|---|---|---|---|
| Revenue | $218.3 million | $141.4 million | Up 54% |
| Gross profit | $57.1 million | $33.3 million | Up 72% |
| Gross margin | 26.2% | 23.5% | Up 2.7 percentage points |
| Operating expenses | $115.8 million | $62.5 million | Up 85%; G&A rose substantially |
| Operating loss | $58.7 million | $29.2 million | Loss widened |
| Net loss | $61.4 million | $31.1 million | Loss widened; FY2021 loss per share was $2.33 |
| Adjusted EBITDA (non-GAAP) | $(39.8) million | $(23.5) million | Margin worsened to (18.2)% from (16.6)% |
| Cash used in operating activities | $68.6 million | $22.0 million | Cash use increased |
Management attributed revenue growth principally to a 49% increase in active buyers and higher spend from existing buyers. Active buyers reached 28,130, up 49%; active sellers reached 2,010, up 43%. Accounts with at least $50,000 of trailing-12-month marketplace spend reached 701, up 80%. Existing accounts generated 95% of revenue in Q4 2021.
Liquidity, debt, and cash flow
- At December 31, 2021, cash and cash equivalents were $86.3 million and marketable securities were $30.5 million, totaling $116.7 million. Current assets were $163.4 million and current liabilities were $57.0 million.
- Operating cash outflow was $68.6 million. Investing cash outflow was $212.7 million, including $174.6 million of acquisition payments and net purchases of marketable securities. Financing cash inflow was $307.8 million, primarily from the IPO.
- Xometry repaid its $15.0 million term loan in July 2021, paying $16.1 million including related amounts; there was no short-term debt on the year-end balance sheet.
- After year-end, Xometry issued $287.5 million of 1.00% convertible senior notes due 2027 and received approximately $278.9 million net proceeds. These are subsequent-event borrowings, not year-end debt.
- Management said existing liquidity was expected to cover working capital and capital expenditure requirements for at least 12 months. The filing cautions that actual cash needs could exceed estimates.
Material changes, outlook, and risks
- Gross margin improved, which management attributed to more effective AI pricing and a larger seller network. However, operating costs grew faster than revenue, and adjusted EBITDA losses widened.
- Sales and marketing expense rose 75% to $39.4 million; G&A rose 190% to $34.9 million, reflecting public-company costs, added personnel, acquisition transaction costs, and a $2.2 million charitable stock contribution. Acquisition transaction costs were $5.7 million.
- Other expenses included a $2.0 million unrealized loss on marketable securities and a $0.3 million loss on debt extinguishment. The company reported no 2021 goodwill or intangible-asset impairment.
- Management expects seller-services revenue to grow substantially in 2022 and beyond, including Thomas marketing and data offerings, and believes higher seller-services revenue may benefit gross margin. The filing provides no specific revenue, earnings, or cash-flow guidance.
- Key risks include persistent losses and uncertain path to profitability; dependence on buyer and seller growth and third-party manufacturers; quality, pricing, and fulfillment exposure; competition; acquisition integration and preliminary purchase-price accounting; cybersecurity, privacy, and platform availability; supply-chain, shipping, and raw-material disruption; and geopolitical effects related to Russia’s invasion of Ukraine. The company disclosed contractors in Russia and Ukraine and possible exposure to materials sourced from Russia.
- Thomas added substantial goodwill: $246.7 million, with the acquisition valuation and purchase-price allocation still preliminary. Management had not completed its evaluation of limitations on $67.3 million of Thomas tax-loss carryforwards.
- The company reported an audited clean opinion on its financial statements and said disclosure controls were effective. It was not yet required to include management’s formal internal-control assessment or auditor attestation under the applicable newly public company transition rules.
Important facts for investors to verify
- Whether the Thomas acquisition delivers buyer, seller-services, and revenue synergies, and how its preliminary purchase-price allocation changes.
- Whether improving gross margin and growing seller-services revenue can offset operating-expense growth and reduce losses and cash burn.
- How much of reported growth is organic versus acquired, and how buyer retention, account expansion, and seller activity trend after 2021.
- The cash-flow, dilution, and refinancing implications of the $287.5 million convertible notes, alongside the company’s stated liquidity needs.
- Whether supply-chain, geopolitical, shipping, cybersecurity, and quality risks materially affect order fulfillment, costs, or customer retention.