On Tuesday, Citi revised its price target for Xometry Inc (NASDAQ:XMTR), a leading marketplace for on-demand manufacturing, reducing it to $24 from the previous $31, while retaining a Buy rating on the company's shares. This adjustment follows the company's first-quarter results for 2024, which showed revenues slightly exceeding consensus expectations by approximately 2%.
Xometry's performance in the first quarter was marked by a significant increase in active buyers, up 32% year-over-year. The company also reported a notable expansion in its Non-GAAP Marketplace gross margins, which grew by roughly 330 basis points year-over-year to 32.2%. The EBITDA loss of $7.5 million matched analysts' forecasts.
The firm observed positive developments, including a 25% year-over-year growth in accounts with a last twelve months (LTM) spend of over $50,000. Additionally, the adoption of Xometry's Teamspace feature was robust, with more than 2,300 teams created compared to 300 at its launch in the third quarter. International revenues were particularly strong, showing a 69% growth year-over-year and accounting for 16% of the company's total revenue.
Despite these strengths, Xometry experienced a quarterly decrease in Marketplace Revenue per Active Buyer by 10% quarter-over-quarter. However, the firm highlighted that trends showed improvement throughout the first quarter after a slower January, particularly for larger orders.
In recent developments, Xometry has appointed a new Chief Sales Officer, a move that is expected to enhance the company's penetration across top accounts and facilitate expansion across various industry verticals.
Citi's decision to maintain a Buy rating reflects confidence in Xometry's growth trajectory and market position, notwithstanding the lowered price target which reflects the broader uncertainty in the manufacturing sector's economic outlook.
InvestingPro Insights
As Xometry Inc (NASDAQ:XMTR) navigates the post-earnings landscape, real-time data from InvestingPro provides a deeper dive into the company's financial health and market performance. With a market capitalization of $773.48 million and a revenue growth of 19.42% in the last twelve months as of Q1 2024, Xometry shows a promising upward trajectory in sales. Despite a challenging economic outlook for the manufacturing sector, the company's gross profit margin stands at a solid 38.85%, underscoring its ability to maintain profitability in core operations.
InvestingPro Tips reveal that Xometry's stock is known for its high price volatility, which may be of interest to investors seeking dynamic trading opportunities. Additionally, while analysts have revised their earnings expectations downwards and do not foresee profitability this year, the company's liquid assets exceed its short-term obligations, indicating a degree of financial resilience. For those considering a deeper analysis, InvestingPro offers more tips to guide investment decisions. With the use of coupon code PRONEWS24, readers can gain an additional 10% off a yearly or biyearly Pro and Pro+ subscription, accessing a total of 9 InvestingPro Tips for Xometry Inc.
Citi's adjusted price target of $24, coupled with the InvestingPro Fair Value estimate of $16.77, provides a spectrum of valuation perspectives. As Xometry continues to grow its active buyer base and expand its international reach, these insights may help investors align their strategies with the company's evolving market position.
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