Xometry to Go Public via $100M IPO

On June 6, 2021, custom on-demand manufacturing marketplace Xometry filed with the U.S. Securities and Exchange Commission (SEC) to list on the NASDAQ market under the ticker symbol XMTR. The Maryland-based company, which was founded in 2013 and has raised a total of $200 million through eight funding rounds, is looking to raise up to $100 million in its initial public offering (IPO). Net proceeds from the transaction will be used to repay outstanding debt and for “general corporate purposes,” including working capital, operating expenses, and capital expenditures, as well as possible future acquisitions, in line with its growth strategy to scale the company.

With more than six million parts manufactured through its platform, the company seeks to accelerate innovation by providing real-time, equitable access to global manufacturing capacity and demand, lowering entry barriers to the manufacturing ecosystem, and connecting customers with optimal manufacturing facilities. Since the first transaction in January 2014, the artificial intelligence (AI)-enabled marketplace for on-demand manufacturing has experienced significant growth. It has achieved several significant milestones, including launching the add-in integration program for Autodesk Inventor and the first seller service offering called Xometry Supplies.

Claiming to be the largest on-demand manufacturing marketplace by revenue, Xometry has connected over 43,000 unique buyers, including nearly 30% of the Fortune 500 companies, and almost 5,000 unique sellers of all sizes, succeeding in increasing year-over-year revenue since 2018 to reach $141.4 million in 2020. In an S-1 filing, the company revealed that for the three months ending March 31, 2021, its revenues increased by 65% year-over-year to $43.9 million, while net losses widened from $8.6 million in 2020 to $10.5 million, mainly due to rapidly growing expenses.

According to the filing, 95% of the company’s revenue has been generated from buyers and sellers in the United States. However, since 2020 it has added accounts in other countries and expects the geographic mix of revenue to change over time. Through an expansion in its European operations base, headquartered in Germany, it has made significant investments to grow the European network of buyers and sellers. Additionally, a small team in China manages the manufacturing network in the Asia-Pacific region, which Xometry expects to scale since the region has become a major hub for 3D printing opportunities.

For now, the company has not disclosed how many shares it plans to sell, the stock’s expected price range, or how many outstanding shares the company will have following the initial public offering. However, Xometry disclosed in its filing report that it will have Class A shares for the public, each entitled to one vote, and Class B common stock that will be entitled to 20 votes. The company CEO and CO-Founder Randolph Altschuler and Chief Strategy Officer and Co-Founder Laurence Zuriff will hold Class B shares.

Xometry raised $75 million in a Series E funding round last September led by Maryland investment management firm T. Rowe Price and now has a post-money valuation in the range of $500 million to $1 billion as of September 9, 2020, according to research company PrivCo. The company has now raised nearly $200 million in venture capital funding from investors like Dell Technologies Capital, BMW i Ventures, and GE Ventures.

With a customer base that includes NASA, the U.S. Army, Moderna, and ABL Space Systems, the company said it is committed to building the largest and most comprehensive global manufacturing marketplace. Customers of the online 3D printing service have access to over 70 metal and plastic manufacturing capabilities, including selective laser sintering, fused deposition modeling, stereolithography, direct metal laser sintering, PolyJet, Carbon DLS, binder jet metal, and HP’s Multi Jet Fusion technologies. In 2021, Stratasys Direct and Xometry partnered to offer new nylon materials and Selective Laser Sintering (SLS) 3D printing. The company already offered services from EOS, SLM Solutions, 3D Systems, ExOne, and more.

Co-founders Altschuler and Zuriff described in their S-1 filing that their vision was simple: “If there was a convenient web-based marketplace for books people write and read, why shouldn’t there be a similar marketplace for products people make and use?” Their goal has been to digitize manufacturing, connect supply with demand, and provide a better sourcing solution to buyers and sellers. Today, Xometry provides a “managed marketplace” to serve a $260 billion opportunity where buyers and sellers find common ground to interact, transact and collaborate to get things built faster, better, and more affordably.