XMTR - Xometry: Persistent Demand Headwinds

2024-05-13 12:34:10 ET

Summary

• Xometry's Q1 results were ahead of expectations but still relatively soft, which appears to largely be the result of market conditions.
• Xometry is focused on expanding its marketplace, enhancing supplier services, driving deeper enterprise engagement, and growing internationally.
• The Supplier Services side of the business continues to struggle, which is starting to become a concern.
• Xometry's valuation is modest given likely growth in coming years but the near-term remains risky.
• Xometry will likely need financial conditions to ease or to move closer to breakeven before its share price moves meaningfully higher.

Xometry's ( XMTR ) Q1 results came in ahead of expectations but were still relatively soft. The question for investors at this point is how much of this is due to the macro environment and how much is the result of company-specific issues. Of particular concern is the poor performance of the Supplier Services side of the business....

For further details see: