XMTR - Xometry slumps 40% on Q4 miss amid cost saving measures; outlook below estimates

Xometry ( NASDAQ: XMTR ) stock fell ~43% on Wednesday after Q4 results missed estimates and the company's revenue outlook was seen below consensus.

Non-GAAP net loss widened to -$13.73M, compared to -$11.41M in Q4 2021. Meanwhile, revenue increased +46.3% Y/Y to $98.2M. However, both top and bottom line missed analysts expectations.

William Blair Analyst Brian Drab noted that the firm believes that the changes XMTR's management implemented in the pricing algorithm have recently taken hold and leading to a steady increase in average price, and due to this, an increase in revenue per buyer, according to Bloomberg.

The SA Quant Rating on XMTR is Hold , which is in contrast to the average Wall Street Analysts' Rating of Buy .

Xometry CEO Randy Altschuler said in the Q4 earnings release that the company is implementing a 5-point strategic plan for growth.

"These steps include realigning our sales efforts to improve our focus on our top 200 accounts who represent significant revenue opportunities and who depend on Xometry to strengthen their crucial supply chains; continued expansion of processes and materials with a deeper integration with Thomas; rapid international expansion and growth; and further enhancements and adoption of new products, including Workcenter," Altschuler noted.

The company is also reducing operating expenses, which included a 6% reduction in workforce in January. In December 2022, the company had started a restructuring action.

Xometry added that for the year ended Dec. 31, 2022, it incurred $1.5M for employee termination costs, majority of which will be paid by the company in Q1 2023.

The company expects the reduced workforce will cut operating expenses by about $8M on a full year basis.

Q4 Marketplace revenue grew +32% Y/Y to $79.1M. Supplier services revenue was $19.1M in Q4 2022.

Outlook :

Q1 : Xometry expects Q1 2023 revenue to be between $100M and $102M ( consensus $113.09M). Adjusted EBITDA is anticipated in the range of -$11M to -$9M.

Full year 2023 . The company expects FY23 revenue to be between  $470M and $480M ( consensus of $517.65M). Adjusted EBITDA is anticipated in the range of -$22M to -$20M.

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