Xometry's Q4 2024: Contradictions in International Revenue and Gross Margin Outlook

These are the key contradictions discussed in Xometry's latest 2024Q4 earnings call, specifically including: International Revenue Mix and Gross Margin Expectations:



Strong Q4 and 2024 Performance:
- Xometry's Q4 revenue increased by 16% year-over-year to $149 million, with marketplace revenue growing 20% year-over-year to $135 million.
- The growth was driven by a 23% increase in active buyers, reaching over 68,000, and a 42% increase in international revenue.

Marketplace and Gross Margin Expansion:
- Marketplace gross margin rose to a record 34.5%, up by 320 basis points year-over-year.
- This expansion was due to the optimization of pricing and matching algorithms fueled by an expanding supplier network.

Enterprise Segmentation and Growth:
- Revenue from marketplace accounts with at least $500,000 annual spend increased by 40% year-over-year.
- This growth was attributed to investments in enterprise sales capabilities and deeper adoption by large companies.

International Expansion and Strategy:
- International revenue represented 18% of total marketplace revenue, with Europe achieving a $100 million annual run rate.
- The focus on EMEA and APAC regions is expected to increase this percentage to 30% to 40% of marketplace revenue over time.