Xometry, Inc. (XMTR): Business Model Canvas [11-2024 Updated]
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Xometry, Inc. (XMTR) Bundle
In an era where innovation meets efficiency, Xometry, Inc. (XMTR) stands out with its unique business model canvas that reshapes how custom manufacturing is approached. By leveraging a robust network of suppliers and cutting-edge technology, Xometry offers a streamlined marketplace that connects buyers and suppliers seamlessly. Discover how this dynamic company enhances value for its customers and partners through strategic activities and resources.
Xometry, Inc. (XMTR) - Business Model: Key Partnerships
Collaborations with a diverse network of suppliers
Xometry operates a vast network of suppliers, which is crucial for fulfilling customer orders. As of September 30, 2024, Xometry reported having 6,762 Active Paying Suppliers, reflecting a decrease of 9% from the previous year due to the exit from the tools and materials business. This network enables Xometry to provide a wide range of manufacturing services, enhancing its marketplace offerings.
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Active Paying Suppliers | 6,762 | 7,415 |
| Revenue from Marketplace | $126.965 million | $102.473 million |
| Cost of Revenue from Marketplace | $84.347 million | $70.578 million |
| Gross Profit from Marketplace | $42.618 million | $31.895 million |
Partnerships with technology providers for AI and machine learning
Xometry leverages partnerships with technology providers to enhance its AI and machine learning capabilities. This focus on technology has resulted in improved gross margins. For the three months ended September 30, 2024, the gross margin for marketplace services improved to 33.6%, up from 31.1% in the same period the previous year. The AI-driven platform optimizes pricing for buyers and suppliers, making the marketplace more efficient.
Integration with platforms like Thomasnet for supplier services
Xometry integrates with platforms such as Thomasnet to provide enhanced supplier services. Revenue from supplier services decreased 10% year-over-year, from $16.454 million in Q3 2023 to $14.733 million in Q3 2024, primarily due to reductions in non-core services. The integration allows Xometry to offer marketing and advertising services, strengthening its value proposition to suppliers.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Supplier Services Revenue | $14.733 million | $16.454 million |
| Cost of Revenue from Supplier Services | $1.526 million | $2.100 million |
| Gross Profit from Supplier Services | $13.207 million | $14.354 million |
| Gross Margin for Supplier Services | 89.6% | 87.2% |
Xometry, Inc. (XMTR) - Business Model: Key Activities
Development and maintenance of the AI-powered marketplace
Xometry's core activity revolves around its AI-driven marketplace, which significantly enhances the efficiency and effectiveness of connecting buyers with suppliers of manufacturing services. As of September 30, 2024, Xometry's marketplace revenue reached $351.4 million, reflecting a 24% increase from $282.7 million in the prior year. The gross margin for the marketplace was 33.1% for the nine months ended September 30, 2024, compared to 30.6% in the same period of the previous year.
Facilitating transactions between buyers and suppliers
Facilitating transactions is a critical aspect of Xometry's operations. The company reported total revenue of $397 million for the nine months ended September 30, 2024, which is an 18% increase from $335.3 million for the same period in 2023. The cost of revenue increased to $240.4 million, up from $206.1 million, driven by higher marketplace activity. Additionally, Xometry's marketplace cost of revenue was $235.3 million for the nine months ended September 30, 2024, indicating a strong demand from buyers utilizing the platform.
Marketing and advertising services for suppliers
Xometry invests significantly in marketing and advertising to enhance supplier visibility and engagement. Sales and marketing expenses for the three months ended September 30, 2024, were $27.2 million, a 17% increase from $23.2 million in the same period of 2023. Advertising costs specifically rose by 22%, totaling $9.4 million for the third quarter of 2024, up from $7.7 million in 2023. This investment aims to attract more suppliers and improve the overall marketplace experience for users.
| Activity | Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|---|
| Marketplace Revenue | Revenue | $126.965 million | $102.473 million | 24% |
| Marketplace Gross Margin | Gross Margin (%) | 33.6% | 31.1% | 2.5% |
| Total Revenue | Revenue | $141.698 million | $118.927 million | 19% |
| Sales and Marketing Expenses | Expenses | $27.204 million | $23.210 million | 17% |
| Advertising Expenses | Expenses | $9.4 million | $7.7 million | 22% |
Xometry, Inc. (XMTR) - Business Model: Key Resources
Proprietary technology and AI algorithms
Xometry, Inc. leverages its proprietary technology and AI algorithms to enhance operational efficiency and optimize pricing across its marketplace. The company has reported a gross margin for marketplace services of 33.6% for the three months ended September 30, 2024, an increase from 31.1% in the prior year, attributed largely to these technological advancements.
In the nine months ended September 30, 2024, Xometry's marketplace gross margin improved to 33.1%, compared to 30.6% for the same period in 2023, reflecting the effectiveness of its AI-driven pricing optimization.
Extensive supplier network for manufacturing services
Xometry's business model is bolstered by an extensive supplier network, which is critical for fulfilling customer orders across various manufacturing processes. For the three months ended September 30, 2024, the total revenue from marketplace services was $126.97 million, with marketplace cost of revenue recorded at $84.35 million, leading to a gross profit of $42.62 million.
For the nine months ended September 30, 2024, marketplace revenue reached $351.44 million with a corresponding cost of revenue of $235.28 million, resulting in a gross profit of $116.16 million.
Human capital in sales, marketing, and technology development
Xometry's human capital plays a vital role in its growth and operational success. The company reported a sales and marketing expense of $27.20 million for the three months ended September 30, 2024, which is a 17% increase from $23.21 million in the same period the previous year. For the nine-month period, sales and marketing expenses totaled $81.89 million, up from $68.32 million.
Additionally, the workforce has been expanded to support these initiatives, with increased compensation costs, including stock-based compensation, contributing to a more skilled and capable team focused on technology development and market outreach.
| Key Resource | Details | Financial Impact |
|---|---|---|
| Proprietary Technology | AI algorithms for pricing optimization | Gross margin improved to 33.6% in Q3 2024 |
| Supplier Network | Extensive network for diverse manufacturing processes | Marketplace revenue of $126.97 million in Q3 2024 |
| Human Capital | Sales, marketing, and technology development workforce | Sales and marketing expense increased to $27.20 million in Q3 2024 |
Xometry, Inc. (XMTR) - Business Model: Value Propositions
Rapid access to custom-manufactured parts and assemblies
Xometry provides rapid access to custom-manufactured parts and assemblies through its advanced marketplace platform. In the nine months ended September 30, 2024, the marketplace revenue reached $351.4 million, reflecting a 24% increase from $282.7 million during the same period in 2023. This growth is driven by increased buyer activity and enhanced operational efficiency, which allows Xometry to deliver parts quickly to customers, addressing their need for speed in manufacturing.
Streamlined sourcing process for buyers
The sourcing process for buyers on Xometry's platform is notably streamlined. The average gross margin for marketplace operations improved to 33.1% for the nine months ended September 30, 2024, compared to 30.6% in the prior year. This improvement is attributed to Xometry's AI-driven platform that optimizes pricing and enhances the user experience, allowing buyers to efficiently source parts while minimizing the time spent on procurement.
| Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Marketplace Revenue | $127.0 million | $102.5 million | 24% |
| Average Gross Margin | 33.6% | 31.1% | 8% |
| Total Revenue | $141.7 million | $118.9 million | 19% |
Growth opportunities for suppliers through expanded market access
Xometry's platform offers substantial growth opportunities for suppliers, evidenced by the number of accounts with last twelve-month spend of at least $50,000, which increased by 23% to 1,506 as of September 30, 2024, from 1,223 in the previous year. This indicates that suppliers are finding significant value in accessing a growing customer base through Xometry's marketplace, which not only enhances their revenue potential but also fosters long-term business relationships.
Furthermore, the number of active paying suppliers decreased to 6,762 as of September 30, 2024, down from 7,415 the previous year, primarily due to Xometry's exit from lower-margin segments. This strategic decision allows the remaining suppliers to benefit from a more focused marketplace, optimizing their engagement and profitability.
Xometry, Inc. (XMTR) - Business Model: Customer Relationships
Focus on long-term relationships with repeat customers
Xometry places a strong emphasis on cultivating long-term relationships with its customers. For the quarter ended September 30, 2024, a remarkable 97% of the company's revenue was generated from existing accounts. This high percentage indicates a robust repeat purchase behavior, showcasing the loyalty and trust customers have in Xometry's services. Additionally, the number of accounts with a last twelve-month spend of at least $50,000 reached 1,506 as of September 30, 2024, representing a 23% increase from 1,223 in the same period of 2023.
Support services via phone, email, and chat
Xometry offers comprehensive support services to enhance customer experience, available through multiple channels including phone, email, and chat. This multi-channel approach is essential for addressing customer inquiries promptly and effectively. The company has seen a consistent increase in customer engagement, with the number of active buyers growing to 64,851 as of September 30, 2024, a 24% increase from 52,382 a year earlier.
Data-driven insights to improve customer engagement
Xometry utilizes data-driven insights to enhance customer engagement. The company’s AI-driven platform provides valuable analytics on customer interactions, enabling personalized service delivery. The gross profit margin for the marketplace increased to 33.6% for the three months ended September 30, 2024, up from 31.1% in the same period of the previous year, indicating improved efficiency in customer service and operations. Furthermore, the total revenue for the three months ended September 30, 2024, was $141.7 million, compared to $117.6 million for the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue from Existing Accounts | $137.6 million | $100.5 million | ~36% |
| Active Buyers | 64,851 | 52,382 | ~24% |
| Accounts with LTM Spend ≥ $50,000 | 1,506 | 1,223 | ~23% |
| Gross Profit Margin (Marketplace) | 33.6% | 31.1% | ~2.5% |
| Total Revenue | $141.7 million | $117.6 million | ~20.5% |
This data underscores Xometry's commitment to building enduring customer relationships, leveraging technology and data analytics to foster engagement and satisfaction among its clientele.
Xometry, Inc. (XMTR) - Business Model: Channels
Online marketplace for direct transactions
Xometry utilizes a robust online marketplace that connects buyers with a vast network of suppliers. For the three months ended September 30, 2024, Xometry reported marketplace revenue of $126.965 million, a significant increase from $102.473 million in the same period of 2023, representing a growth of 24%. The gross profit from marketplace transactions was $42.618 million, leading to a gross margin of 33.6%.
Digital marketing and advertising platforms
Xometry's digital marketing strategy is a critical channel for customer engagement and acquisition. Advertising expenses rose by 22% to $9.4 million for the three months ended September 30, 2024, compared to $7.7 million in the prior year. This increase is a result of intensified efforts to promote both marketplace and supplier services, contributing to an overall increase in buyer activity on the platform.
Supplier services provided through the Xometry network
The supplier services segment has been an important aspect of Xometry's business model. Revenue from supplier services decreased to $14.733 million for the three months ended September 30, 2024, down from $16.454 million in the same period of 2023. The gross margin for supplier services improved to 89.6% from 87.2% year-over-year. This segment includes digital marketing services and other offerings, which are essential for maintaining supplier engagement and expanding the service portfolio.
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Marketplace Revenue | $126.965 million | $102.473 million | +24% |
| Gross Profit (Marketplace) | $42.618 million | $31.895 million | +33% |
| Supplier Services Revenue | $14.733 million | $16.454 million | -10% |
| Gross Margin (Supplier Services) | 89.6% | 87.2% | +2.4% |
| Advertising Expenses | $9.4 million | $7.7 million | +22% |
Xometry, Inc. (XMTR) - Business Model: Customer Segments
Engineers, product designers, and procurement professionals
Xometry serves a diverse range of customer segments including engineers, product designers, and procurement professionals. These customers utilize Xometry’s platform to source custom-manufactured parts and assemblies. As of September 30, 2024, Xometry reported an increase in Active Buyers to 64,851, up 24% from 52,382 in the previous year.
Small businesses to Fortune 100 companies
The platform caters to a wide spectrum of clients, ranging from small businesses to Fortune 100 companies. The revenue from these segments reflects the platform's scalability and versatility. The number of accounts with Last Twelve-Month (LTM) Spend of at least $50,000 reached 1,506 as of September 30, 2024, representing a 23% increase from 1,223 in the prior year.
Diverse industries including aerospace, automotive, and healthcare
Xometry serves various industries including aerospace, automotive, and healthcare, among others. The company reported total revenue of $396.98 million for the nine months ended September 30, 2024, which includes $351.44 million from marketplace revenue, an increase of 24% compared to the previous year.
| Customer Segment | Active Buyers (as of Sept 30, 2024) | Accounts with LTM Spend ≥ $50,000 (as of Sept 30, 2024) | Marketplace Revenue (9M 2024) | Total Revenue (9M 2024) |
|---|---|---|---|---|
| Engineers and Product Designers | 64,851 | 1,506 | $351.44 million | $396.98 million |
| Small to Medium Enterprises | Data not specified | Data not specified | Data not specified | Data not specified |
| Fortune 100 Companies | Data not specified | Data not specified | Data not specified | Data not specified |
| Aerospace | Data not specified | Data not specified | Data not specified | Data not specified |
| Automotive | Data not specified | Data not specified | Data not specified | Data not specified |
| Healthcare | Data not specified | Data not specified | Data not specified | Data not specified |
Xometry, Inc. (XMTR) - Business Model: Cost Structure
Costs associated with supplier payments and manufacturing
The total cost of revenue for Xometry, Inc. increased by $34.3 million, or 17%, from $206.1 million for the nine months ended September 30, 2023, to $240.4 million for the same period in 2024. This increase was primarily driven by marketplace cost of revenue, which rose to $235.3 million from $196.2 million year-over-year.
For the three months ended September 30, 2024, the total cost of revenue was $85.9 million, up from $72.7 million in the same quarter of 2023. The marketplace cost of revenue was $84.3 million, while supplier services accounted for $1.5 million, down from $2.1 million in the prior year.
| Period | Total Cost of Revenue (in millions) | Marketplace Cost of Revenue (in millions) | Supplier Services Cost of Revenue (in millions) |
|---|---|---|---|
| Q3 2024 | 85.9 | 84.3 | 1.5 |
| Q3 2023 | 72.7 | 70.6 | 2.1 |
| 9M 2024 | 240.4 | 235.3 | 5.1 |
| 9M 2023 | 206.1 | 196.2 | 9.8 |
Sales and marketing expenses
Sales and marketing expenses for the nine months ended September 30, 2024, totaled $81.9 million, an increase of $13.6 million, or 20%, from $68.3 million in the comparable period of 2023. In the third quarter of 2024, these expenses rose to $27.2 million, up from $23.2 million in Q3 2023.
Advertising expenses specifically increased from $23.4 million in the nine months ended September 30, 2023, to $26.5 million in 2024, reflecting a 13% rise. The percentage of total revenue allocated to sales and marketing expenses was 20.6% for the nine months ended September 30, 2024, compared to 20.4% in the previous year.
| Period | Sales and Marketing Expenses (in millions) | Advertising Expenses (in millions) | Percentage of Total Revenue |
|---|---|---|---|
| Q3 2024 | 27.2 | 9.4 | 19.2% |
| Q3 2023 | 23.2 | 7.7 | 19.5% |
| 9M 2024 | 81.9 | 26.5 | 20.6% |
| 9M 2023 | 68.3 | 23.4 | 20.4% |
Operating costs for technology and support services
Operating expenses related to technology and support services increased from $39.5 million for the nine months ended September 30, 2023, to $42.9 million in 2024, marking a 9% increase. For the third quarter, operations and support expenses rose to $14.7 million from $12.6 million year-over-year.
The percentage of total revenue attributed to operations and support expenses decreased to 10.8% for the nine months ended September 30, 2024, down from 11.8% in the previous year.
| Period | Operations and Support Expenses (in millions) | Percentage of Total Revenue |
|---|---|---|
| Q3 2024 | 14.7 | 10.4% |
| Q3 2023 | 12.6 | 10.6% |
| 9M 2024 | 42.9 | 10.8% |
| 9M 2023 | 39.5 | 11.8% |
Xometry, Inc. (XMTR) - Business Model: Revenue Streams
Marketplace revenue from sales of parts and assemblies
Xometry's marketplace revenue is a significant component of its overall income, primarily derived from the sales of custom-manufactured parts and assemblies. For the three months ended September 30, 2024, the marketplace revenue was $126.965 million, compared to $102.473 million for the same period in 2023, reflecting a growth of 24% year-over-year.
For the nine months ended September 30, 2024, marketplace revenue reached $351.438 million, an increase from $282.664 million in the prior year, marking a 24% increase. The gross margin for the marketplace segment was 33.6% for the third quarter of 2024, up from 31.1% in the same quarter of 2023.
Supplier services revenue from marketing and advertising
Supplier services revenue includes income generated from advertising and marketing services targeted at suppliers. For the three months ended September 30, 2024, supplier services revenue totaled $14.733 million, a decrease from $16.454 million in the same quarter of 2023, indicating a decline of approximately 10%. This decline is attributed to reductions in non-core services and advertising services related to the Thomas platform.
For the nine months ended September 30, 2024, supplier services revenue was $45.545 million, down from $52.597 million in the previous year. The gross margin for supplier services was significantly higher at 89.6% for Q3 2024, compared to 87.2% in Q3 2023.
Financial services and SaaS solutions for suppliers
Xometry also provides various financial services and Software as a Service (SaaS) solutions aimed at enhancing supplier operations. While specific revenue figures for these services are not extensively detailed in the reports, they contribute to the overall supplier services revenue. The company has focused on integrating financial service products within its platform, which includes tools for suppliers to manage their operations more effectively.
As of September 30, 2024, the total revenue for Xometry reached $396.983 million, with a notable contribution from both marketplace and supplier services. The overall growth in revenue reflects increased buyer activity on the platform, enhancing both segments' performance despite challenges in supplier services revenue from non-core activities.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) | Gross Margin (%) |
|---|---|---|---|---|
| Marketplace Revenue | $126.965 | $102.473 | 24% | 33.6% |
| Supplier Services Revenue | $14.733 | $16.454 | -10% | 89.6% |
| Total Revenue | $141.698 | $118.927 | 19% | - |
In summary, Xometry's revenue streams are driven by marketplace transactions and supplier services, with a significant focus on enhancing supplier capabilities through financial and SaaS solutions. The overall revenue growth demonstrates the effectiveness of Xometry's business model in the competitive landscape of manufacturing services.
Updated on 16 Nov 2024
Resources:
- Xometry, Inc. (XMTR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Xometry, Inc. (XMTR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Xometry, Inc. (XMTR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.