G2 Investment Partners Initiates a New Position in Xometry
Key Points
G2 Investment Partners created a new position in Xometry.
It owned 221,679 shares valued at $13.2 million.
The position represents 3.1% of fund AUM
According to a Securities and Exchange Commission (SEC) filing dated Feb. 17, G2 Investment Partners Management LLC reported a new stake in Xometry Xometry (NASDAQ:XMTR), acquiring 221,679 shares.
- New position in Xometry
- Post-trade stake: 221,679 shares valued at $13.2 million
- Position represents 3.1% of the fund’s AUM
What else to know
- Top holdings after the filing:
- NASDAQ: DAVE: $29.4 million (7.0% of AUM)
- NYSE: PACK: $18.1 million (4.3% of AUM)
- NASDAQ: AEIS: $17.3 million (4.1% of AUM)
- NYSE: CLS: $14.7 million (3.5% of AUM)
- NASDAQ: VIAV: $14.7 million (3.5% of AUM)
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $686.6 million |
| Net Income (TTM) | ($61.8 million) |
| Price (as of market close Feb. 17) | $55.83 |
Company Snapshot
Xometry is a leading digital marketplace for on-demand manufacturing, leveraging a broad partner network to deliver custom parts and assemblies at scale. Xometry enables a wide range of customers to source manufactured parts and assemblies using its technology-driven marketplace platform.
- Offers a marketplace for sourcing manufactured parts and assemblies, including CNC machining, 3D printing, injection molding, and sheet metal fabrication services.
- Operates a digital platform that connects buyers with a network of manufacturing partners.
- Serves industries such as aerospace, automotive, electronics, medical, and industrial sectors, targeting product designers, engineers, and procurement professionals.
What this transaction means for investors
G2 Investment Partners quickly ramped up its position in Xometry to become one of its largest holdings. It didn’t hold any shares on Sept. 30, but its holdings, valued at $13.2 million, made up 3.1% of its assets under management (AUM) on Dec. 31, according to its SEC filing.
The asset management firm held 71 positions with an AUM of $420.7 million at year-end.
While the shares have dropped 34.8% this year (through March 17), they have still gained 50.9% over the last year.
Xometry is a small-niche company in the industry, but it has been growing its revenue rapidly. Fourth-quarter revenue increased 30% year over year to $192 million. The company grew the number of active suppliers and buyers by 17% and 20%, respectively.
Still, Xometry doesn’t report a profit under generally accepted accounting principles (GAAP). It lost $8.6 million in the fourth quarter versus a $9.9 million loss in the year-ago period.
At some point, the company will have to become profitable under GAAP to fuel long-term stock appreciation.
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celestica, Viavi Solutions, and Xometry. The Motley Fool has a disclosure policy.