What drives XMTR's EPS outperformance in Q3 2024?

Xometry's EPS outperformance in Q3 2024 can be attributed to several key factors:

1. **Revenue Growth**: Xometry experienced a 19% year-over-year increase in revenue, reaching a record $142 million for the quarter. This growth, which surpassed the company's own guidance of $138 million, was driven by strong marketplace performance and international expansion.
2. **Marketplace Growth**: The company's marketplace revenue surged by 25% year-over-year, reaching $117 million. This significant growth in marketplace revenue contributed to the overall revenue outperformance and improved gross margins.
3. **Gross Margin Improvement**: Xometry reported a record gross profit of $52.9 million for the quarter, with a gross margin of 39.9%. The company's focus on high-gross-margin services, such as Thomas marketing and advertising, contributed to this improvement.
4. **Operating Leverage**: The company's adjusted EBITDA loss improved by 70% year-over-year, representing only 2.0% of revenue. This improvement in operating efficiency, often referred to as operating leverage, can lead to better profitability and cash flow.
5. **Strategic Initiatives**: Xometry's strategic initiatives, such as expanding buyer and supplier networks and enhancing supplier services, have been successful in driving growth and improving marketplace efficiency.

In summary, Xometry's EPS outperformance in Q3 2024 is driven by strong revenue growth, particularly in the marketplace segment, improved gross margins, operating leverage, and strategic initiatives that have enhanced the company's profitability and cash flow.