SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “can,” “will,” “would,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “forecasts,” “potential,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Annual Report on Form 10-K include, but are not limited to, statements about:
You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Form 10-K primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled Risk Factors Part I, Item 1A, and elsewhere in this Form 10-K. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Form 10-K. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Form 10-K. And while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
The forward-looking statements made in this Form 10-K relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Form 10-K to reflect events or circumstances after the date of this Form 10-K or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
A Letter from our CEO
A Marketplace Powering Our Collective Future
Dear Shareholders –
2021 was a phenomenal year for Xometry. At the same time we grew revenue by 54% year over year, we grew gross profit at an even faster rate of 72%. Xometry’s proprietary AI engine powers our marketplace and continues to deliver tremendous value to our customers.
We released numerous new technology features, rapidly expanding the breadth of our marketplace. We went public in June, and committed 1% of our equity over time to support charitable organizations that strive to improve educational opportunities for all, reduce global CO2 output, and help train and expand the horizons of the next generation of inventors. Completing the acquisition of Thomas in December created an unparalleled scale of buyers and sellers, enabling further growth in 2022.
The whole Company is proud of what we accomplished in 2021, but we also know our work has just begun. Tragic global events are having devastating humanitarian consequences, while also crippling supply chains, spurring product shortages and limiting access to raw materials – all of which underscore the need for the rapid digital transformation of the manufacturing industry.
Our global marketplace model is playing an instrumental role in accelerating the digitization of the industry, helping buyers create resilient and robust supply chains and supporting manufacturers with a portfolio of fin-tech, digital marketing products and enterprise software.
Our game plan is simple: Become the enterprise solution for buyers and sellers of custom manufacturing, driving value for both sides in a wildly inefficient $2 trillion market. For buyers, we save them hours, days and weeks by using artificial intelligence to find the optimal solution for their needs in just seconds.
Buyers will be able to order seamlessly from anywhere they want, whether through their own ERP, popular 3D CAD programs or our embedded quoting engine in other websites. Likewise, small and medium manufacturers will be able to manage their businesses and grow through access to the Xometry platform.
With an increasing number of jobs available from our marketplace, and a portfolio of services to help them manage costs and cash flow, sellers can confidently add equipment and people to grow their businesses. In the United States, we are committed to playing a pivotal role in revitalizing and strengthening our domestic manufacturing base. In contrast to the ineffectual “supporting” American manufacturing rhetoric, Xometry is helping in tangible ways, producing the revenue-generating and operating tools that are critical to enabling these small and medium-sized businesses to flourish.
Who helps make this happen? It starts with my colleagues. The powerful combination of their unique knowledge and abilities drives Xometry and its marketplace. It is an eclectic bunch, from PhD data scientists to aerospace engineers to self-taught programmers. They are all motivated and united by our mission.
Of course, our buyers and sellers are critical participants. Buyers are coming to us in growing numbers. Instead of worrying about their supply chains, designers, engineers and procurement professionals can focus on building amazing things. Likewise, sellers don’t have to struggle to find customers, and can now focus on what they love to do – make parts!
An emerging, important stakeholder are partners who have software, financial products and supplies to sell to manufacturers. Xometry has fostered a unique community, one of the few places to find such a large group of small- and medium-sized manufacturers connected in a marketplace. Working with Xometry, these partners have a valuable sales channel, offering our sellers terrific deals.
Our stakeholders expect us to be good stewards not only of our business but of the broader communities in which we all live. With the Xometry Go Green initiative, we purchase carbon credits to offset 100% of the estimated impact of the shipment of parts. We offer buyers the ability to instantly calculate the price-to-purchase carbon credits to offset the CO2 emitted through the manufacturing of their parts. Through Xometry’s Donor Advised Fund (DAF) we have embraced the Pledge 1% movement. We are using our DAF to donate to educational institutions and not-for-profit organizations focused on training a new generation of mechanical engineers, machinists and technicians.
Our marketplace is helping tens of thousands of customers manufacture products that are notable in everyday life and what our shared world will look like tomorrow. From life-saving medical devices to electric vehicles to satellites in space, Xometry is powering the present and future. We are relentless in delivering increasing value to our buyers, sellers, employees, communities and shareholders. If you haven’t already, we hope you will join us on this exciting journey.
Sincerely,
Randy Altschuler, CEO
Item 1. Business.
Xometry, Inc. (Xometry, the “Company”, “our”, “we”) is a leading AI-enabled digital manufacturing marketplace, transforming one of the largest industries in the world. We use our proprietary technology to create a marketplace that enables buyers to efficiently source manufactured parts and assemblies, and empowers sellers of manufacturing services to grow their businesses.
We define “buyers” as individuals who have placed an order to purchase parts or assemblies on our platform. Our buyers include engineers, product designers, procurement and supply chain personnel, inventors and business owners from businesses of a variety of sizes, ranging from self-funded start-ups to Fortune 100 companies. We define “accounts” as an individual entity, such as a sole proprietor with a single buyer or corporate entities with multiple buyers, having purchased at least one part on our marketplace. We define “sellers” as individuals or businesses that have been approved by us to either manufacture a product on our platform for a buyer or have utilized our seller services, including our digital marketing services, data services, financial services or supplies.
Manufacturing is one of the largest industries globally and is in the early stages of digitization. Buyers looking to source manufacturing processes are faced with a highly fragmented and regionalized base of sellers that are prone to supply chain disruptions and are difficult to efficiently manage. Opaque pricing structures, long lead times and a lack of quality controls contribute to a procurement process that is inefficient, unpredictable and unreliable. Conversely, sellers of specialized manufacturing services are faced with limited ability to source customers, inconsistent demand, volatile operating costs and resource constraints that put their businesses under significant financial pressure. For supply chains around the world to become more reliable and resilient, buyers and sellers need a more efficient, agile way to transact.