Xometry, a Maryland based- Service that connects companies with manufacturers with greater production capacity around the world, Filed an S-1 form The US Securities and Exchange Commission announced its intention to become a public company.
Growth aside, it’s clear that Xometry is no modern software business, at least from the revenue-quality profile.
As global supply chains tighten during the pandemic in 2020, a company that helped find additional manufacturing capacity was likely to be in high demand. CEO and co-founder Randy Altschuler described his company to Nerdshala last September at the announcement of a $75 million Series E investment:
“We have created a marketplace using artificial intelligence to power it, and provide an e-commerce experience for buyers and suppliers of custom manufacturing to deliver that manufacturing,” Altschuler said at the time. Axometry raised about $200 million while private, per crunchbase data.
With axiometry, companies that manufacture custom parts now have the ability to do so digitally. Instead of working over the phone or starting an email chain, they can go to the axiometry marketplace, define parameters for their project and find a qualified builder who can handle the work at the best price.
As of last September, the company had built relationships with 5,000 manufacturers around the world and had 30,000 customers using the platform.
At the time of that funding round, it was probably no coincidence that the company’s principal investor was T. Rowe Price. When an institutional investor joins a late-stage round, it’s usually a sign that the company is ready to start thinking about an IPO. Altschuler said it was definitely something the company was considering and also brought in a CFO, another sign that a company is ready to take the next step.
So what does Axiometry’s financial position look like as it dominates the public markets? We took a look at the S-1 to find out.
Zometry makes money in two ways. The first comes from a segment of its market in which the company generates “substantially”. [its] revenue” from “buyers on its platform.” Another way Axometry provides top line is seller-related services, including financial functions. The company notes that seller-generated revenue is just 5% of its 2020 total revenue. Although it expects that figure to rise.