Zometry Stock Surges 18% as Q3 Revenue Exceeds Expectations, Eyeing Profitability Milestone

Revenue Beats and Growth Projections

In Q3, Zometry’s revenue reached $142 million, marking a 19% year-over-year increase and beating the company’s guidance of $138 million. This outperformance fueled investor confidence, with Zometry now projecting a 14% revenue increase for the upcoming fourth quarter, despite slower growth compared to the 31% surge seen in Q4 of 2023.

This performance showcases a steady demand in the manufacturing sector, with Zometry leveraging its software to streamline the process for clients seeking instant pricing on manufacturing jobs. Zometry’s business model, which outsources work to smaller shops, generates gross profit from the price margin between client bids and shop payments.

Positive Adjusted EBITDA Target in Sight

Zometry’s Q3 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a loss of less than $1 million — a notable improvement from previous quarters. For Q4, Zometry expects to achieve adjusted EBITDA profitability, a milestone it has not yet reached and one that has thrilled investors looking for long-term profitability signs.

Key Business Metrics Drive Performance

Several other business metrics signal positive momentum for Zometry’s marketplace. Most notably, the gross margin of its marketplace business improved during Q3, which is a core focus area for investors. Additionally, Zometry’s base of active buyers grew by 24% year-over-year, totaling nearly 65,000 by the end of Q3. This impressive expansion of its customer base highlights the effectiveness of Zometry’s platform in meeting market demand.

Growing Customer Base and Efficient Software Fuel Optimism

With a rapidly growing customer base and increasingly refined software solutions, Zometry’s potential for long-term growth is on the rise. Its software’s ability to offer competitive job pricing is driving revenue and fostering customer loyalty. As Zometry continues to streamline its operations, investors are optimistic that it will solidify profitability and scale effectively.

As Zometry moves forward, maintaining this growth and improving profitability could solidify its standing as a leader in the manufacturing marketplace, a prospect that has fueled Tuesday’s impressive stock rally.