Why did XMTR's EPS exceed forecasts in 2024?

Xometry's EPS exceeded forecasts in 2024 due to several key factors:

1. **Revenue Growth**: Xometry experienced significant revenue growth, driven by an 19% year-over-year increase in the third quarter of 2024, reaching a record $142 million. This growth was fueled by strong performance in its marketplace segment, which saw a 24% year-over-year growth. The company's marketplace revenue reached $127 million, reflecting robust growth and increased buyer engagement.
2. **Gross Profit Improvement**: The company's gross profit increased by 21% year-over-year to a record $55.8 million, driven by a 250 basis point improvement in marketplace gross margin to 33.6%. This improvement in gross margin indicates better operational efficiency and pricing strategies, contributing to the overall profitability of the company.
3. **Adjusted EBITDA Improvement**: Xometry's adjusted EBITDA loss improved significantly by 85% year-over-year, with a loss of $0.6 million, representing a record low 0.4% of revenue. This improvement suggests enhanced financial discipline and operational effectiveness, which has led to better earnings quality.
4. **International Growth**: The company's international revenue grew by 55% year-over-year, approaching a $100 million annual run rate. This strong international performance highlights the success of Xometry's global expansion efforts and the growing demand for its services outside the U.S.

In summary, Xometry's EPS exceeded forecasts in 2024 due to robust revenue growth, significant improvements in gross profit and adjusted EBITDA, and strong international performance. These factors collectively contributed to the company's financial success and exceeded market expectations.