G2 Investment Partners Establishes a Fresh Stake in Xometry

G2 Investment Partners Acquires Shares in Xometry

On February 17, a SEC filing revealed that G2 Investment Partners Management LLC established a new investment in Xometry (NASDAQ: XMTR), purchasing 221,679 shares.

• Initiated a fresh stake in Xometry
• Post-acquisition, the holding totals 221,679 shares, valued at $13.2 million
• This position accounts for 3.1% of the fund's total assets under management (AUM)

Additional Insights

• Largest holdings following the transaction:
  • DAVE (NASDAQ): $29.4 million, representing 7.0% of AUM
  • PACK (NYSE): $18.1 million, or 4.3% of AUM
  • AEIS (NASDAQ): $17.3 million, making up 4.1% of AUM
  • CLS (NYSE): $14.7 million, equating to 3.5% of AUM
  • VIAV (NASDAQ): $14.7 million, also 3.5% of AUM

Xometry Key Metrics

About Xometry

Xometry operates a prominent online platform for custom manufacturing, connecting clients with a vast network of partners to deliver tailored parts and assemblies efficiently. Their technology-driven marketplace streamlines the sourcing process for a diverse customer base.

• Provides access to manufacturing services such as CNC machining, 3D printing, injection molding, and sheet metal fabrication
• Runs a digital marketplace linking buyers to numerous manufacturing partners
• Serves sectors including aerospace, automotive, electronics, medical, and industrial, catering to designers, engineers, and procurement teams

Implications for Investors

G2 Investment Partners rapidly increased its exposure to Xometry, making it one of the fund’s significant holdings. The firm had no shares as of September 30, but by December 31, its $13.2 million investment represented 3.1% of its managed assets, according to the SEC filing.

By the end of the year, G2 Investment Partners managed 71 positions with a total AUM of $420.7 million.

Although Xometry's stock has fallen 34.8% year-to-date (as of March 17), it has risen 50.9% over the past twelve months.

Despite being a specialized player in its industry, Xometry has demonstrated strong revenue growth. In the fourth quarter, revenue surged 30% year-over-year to $192 million. The company expanded its active supplier base by 17% and its buyer base by 20%.

However, Xometry has yet to achieve profitability under GAAP standards, reporting a fourth-quarter loss of $8.6 million, which is an improvement from the $9.9 million loss in the same period last year.

For sustained growth in share value, Xometry will eventually need to reach GAAP profitability.

Is Now the Time to Invest in Xometry?

Consider these points before purchasing Xometry shares: