Risk Factors Update Summary

• Xometry's U.S. operating segment decreased by $4.9 million, now part of the International segment.
• Revenue decreased from $463,406k in 2022 to $380,921k in 2023, impacting financial performance.
• Added liability for poor quality parts even when supplier manufactures ordered parts.
• The Company abandoned leases in multiple locations, recognizing a one-time charge of $8.7 million.
• Amortization expenses changed: $3.4 million in 2022 to $3.3 million in 2023.
• Accumulated deficit increased from $249 million to $319 million as of December 31, 2022 to 2023.
• General and administrative expenses are expected to increase due to public company operations.
• Lease costs decreased in 2023 compared to 2022, with operating lease costs at $5.7 million.
• General and administrative expenses increased by $12.7 million, primarily due to one-time $8.7 million operating lease expense.
• Increase in interest equity from $249 million to $319 million is significant.
• The Company initiated a restructuring in 2023, incurring $0.7 million for employee termination costs.
• Addition of $22.1 million in stock-based compensation is material for financial reporting.
• Revenue increased from $381 million to $463 million during the years ended December 31, 2022 to 2023.
• Sales and marketing expenses increased by $9.3 million, driven by higher commissions and additional employees.
• Workforce reduced by approximately 10%, incurring $0.7 million in termination costs in 2023.
• Estimated amortization expenses for intangible assets changed: $3.6 million in 2023 to $3.6 million in 2024.
• Loss available to common stockholders decreased from $76 million to $67 million in 2022 to 2023.
• Product development expenses increased by $3.4 million, mainly due to hiring additional employees and software costs.
• Acquisition of noncontrolling interest in business combination for $1,036 is notable.
• Active Buyers increased from 40,664 in 2022 to 55,458 in 2023, a 36% growth.
• Net operating loss available increased from $224.6 million to $228 million to reduce future income.
• Adjusted EBITDA loss decreased from $39.8 million in 2022 to $27.8 million in 2023.
• Impairment of assets decreased by $0.4 million, reflecting improved asset management.
• Interest and dividend income increased by $7.5 million, primarily from dividend income.
• Net operating losses attributable to the acquisition of Thomas Publishing were $58.4 million.
• Non-GAAP net loss decreased from $43.1 million in 2022 to $19.4 million in 2023.
• Marketplace revenue increased by $91.5 million, driven by increased buyer activity.
• Cost of revenue increased from $285,147k in 2022 to $234,930k in 2023, impacting profitability.
• Impairment evaluation may lead to significant impairment of right of use assets or fixed assets.
• Supplier services revenue decreased by $9.0 million due to exiting the supplies business in the U.S.