XMTR - Earnings call transcript Q4 2021

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Operator

Hello, and thank you for standing by, and welcome to the Xometry, Inc. Q4 2021 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference may be recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Shawn Milne, Head of Investor Relations. Please go ahead.

Shawn Milne

you us thank XXXX Xometry's and Call. Earnings afternoon, for on joining QX Good

Randy Chief Altschuler, Jim are me Joining our Chief Officer. Rallo, Executive Financial our and Officer;

the review During we guidance for and XXXX our fourth quarter our quarter first year financial and today's discuss and will results full call, the year full for XXXX.

by available close statements be call, to as press in the forward-looking XX-K undue results, of Such for in statements performance expect, information, could future release financial be and and filings in future are XX, financial point the not strategy, that and results. superior measures materially to future we SEC. We forward-looking today's growth may earnings GAAP. To means are market these accordance on new our comparisons. financial both our presented make are of investor overall to concerning intend financial in see presentation, statements, subject reconciliation to measures, out December to filed forward-looking release a of purposes caution call, performance to which as of our non-GAAP will Information evaluate from changes them on with terms uncertainties, which the ended in after our of report distributed substitute those like in Investors today update internally will refer distributed press also result XXXX, today's and section please to believe, the and period-to-period U.S. website. a such a available our these use expected may. We During call like risks actual turn will With Randy. as results. to non-GAAP including prepared of related These We'd risks the or to or the and non-GAAP on also GAAP to today to statements website long-term statements measures cause you call be of identified and included is business, addition undertake prospects. decision-making posted place earnings A Non-GAAP that will today's as differ any events replay not expectations. reliance with and our the financial Form SEC duty obligation in no operating our statements for our over to we that, or measures at year and investors.xometry.com. and I'd

Randy Altschuler

for and afternoon, Good you Shawn. our everyone, us Thanks, earnings for XXXX joining call. thank QX

strong high year another entered company year-over-year as XX% on profit first growth QX. and revenue public XXX% report to We quarter. pleased gross our in are a a We note, delivering growth

to rapidly transforming are our marketplace, leading in a of the We industries world. manufacturing delivering largest global one the build on mission digital

the the this needs verticals, capabilities. for innings chains access supply to strategies. and our seller over positioned events in positioned platform be need sellers. to we last Likewise, the our the While to cloud-based With Fortune through across of their rethinking needs uniquely companies are meet increasingly industry. digital the of manufacturing, operating of manufacturing the of meet are early years sellers manufacturing the through the Xometry limited platform, uniquely rapid breadth digital raw our processes we're still transformation X XXXX for to of Global shift secular our we materials, of their and supply is suite shortages for services. have software of the thousands spurred hundreds aim system crippled product and to chains, underscoring

COVID, tragedy disruptions X-sided X of marketplace and ongoing chain exceptionally has past Our current volatility the including well through the Ukraine. performed the in manufacturing years, supply

majority periods reliable pricing of to our volatile updates pricing even during our fulfilled customers weekly match vast and of offer events. macro abroad, related to Thomas supplier domestically The irrespective our Likewise, our durable model predictable and our are and the shipping capabilities. chains time only in orders AI-driven supply prices. real enhances network ability buyers to commodity with provides country addition overseas of our of Our margins delays, in expanding we alleviating suppliers and issues

in While go do or Europe. thoughts affected growing by the out experienced have Russia, those tragically sellers our to not have have and a business or Xometry in business buyers Ukraine strong continues to any in war We Ukraine, and interruption. not

our turn review to results to review will I continue Thomas. of our update of with results. sellers, I well a an a quarter both QX fourth call Then strong and key the We our our of to we $XX.X million will for completing on business outlook. buyers over QX and had a see the X. Jim provide as and revenue integration performance as strong acquisition by of of on December Thomas financial adoption as marketplace strategic in-depth the on including Moving rapid with provide initiatives, more

million. year-over-year strong from grew increased Xometry acquisition quarter-over-quarter. Excluding QX XX% time XX% in was $XX revenue the revenue of $X.X to Thomas and Thomas, a million the

little earnings The across growth While adoption are of set and strong will outline larger I a access ago, instant road revenue accounts in than seller capabilities. robust of both acquisition the later continued start. in progress large America provides map our marketplace and a active months and rapid by in buyers the presentation. to we broad more platform X off flexibility growth completed the the QX call Europe. and Xometry our to North efforts our Xometry by and a driven was integration

lower supplies, Additionally, enabling operations. to we cost their of provide convenient our sellers to access them

also In ongoing devices year-over-year. well of verticals, products, consumer XX% strength saw products. including QX, through We We and fintech robotics, manufacturing. basket across increased flow buyers semiconductors, and general medical many strength our as their in active electronics improved cash as

at to that a metric XX-month an XX QX. $XX,XXX robust Additionally, large in adding the within of least orders, accounts and drove XX% existing production. of strategy to spend our by year-over-year in powered number land-and-expand with we record The growth accounts including increased accounts increase last XXX,

success workflows. and buyer large in a term. for Xometry product and a upload part procurement rapidly and Given our working investing become in experience strategy, we Autodesk Fusion of October, to expand the active platform. X.X have the our multiple feedback we of in effort app improving the enterprise and CAD XXX, user design X.X the embedded we Within In significant designers an manufacturability Fusion launched land-and-expand solution, growing sales our to design are leading for engineers enterprise Version opportunity near Version offers XXX. base, features,

The to which improve, revenue, financial our our the launched of fall. continue including and supplies We our including to continue basket products in seller expand InstantPay, to business improvements services fintech our products. of usage

flows financial engagement Our products improved and sellers' levels. cash

In to international QX, continues in Our over business XXX% team year-over-year. in revenue the growth by driven Europe. Europe increased deliver strong

we QX, team a our manager and up in Additionally, for general our hired scale platform. Pacific quickly Asia to business

region launch marketplace in that QX the begin a formally in to of expect localized and We orders by taking end QX.

revenue opportunity, gross profit and We could revenue million marketplaces, in and XX% next total years. the as top are have with XXX% future over U.S. for online On several We grew expansion revenue $XX.X global other grew tremendous to in International is year-over-year. sales opportunity the a of just of an see million to over growth, international investing more XX% be for over or XXXX. of XXXX, generated international enormous XXX% revenue growth. over $X Currently, our up to from leading drive up strong

gross Excluding AI-powered matching Thomas, QX our and to driven in year-over-year in from pricing dollars Xometry seller profit marketplace. by XX% XX% QX increased improvements XXXX, and

time, for as supplier acquisitions, leading buyers results, and FactoryFour including our and and growth to helping in number made becomes to marketplace, of X scale opportunities. the our marketplace buyers scale At and product match growth these Blue buyers we The accelerates improve of is our continues As platform exceptional active gross Xometry's QX, Saw, gross our for and addition online sellers sellers creating margins. financial transform demand our strategically and to marketplace improve and of Thomas network market learning the and Big industrial supply continue experience and machine Thomas top marketing which Thomas and transactions a our better grow, further of driving same strong up improve matches margins. to enables services. successfully ramp for of On marketplace sourcing, the smarter, manufacturers. selection and we sellers, of

seller accelerates suite established including marketing and services. of advertiser an Thomas path our is services, and end-to-end have digital profitability. margins We products to our to accretive

company. executing plan against are go market we integration X as now We to as our

marketplace integrated our them teams, have around and seller centering We services.

and have on strive for focused robust solution a driving to become marketplace enterprise sellers product We an both. more we roadmap as to buyers the

XX and integration platform Thomas instant this up Xometry For registered buyers, opening be in on marketplace. is quoting users can we million-plus Xometry's our any integrated to the technology annual to website. technology The unlock expect our Thomas' quoting virtually our based integrate which QX, sourcing to instant sessions X.X minutes in on in million Everywhere initiative, behind

Everywhere We Xometry March. in are launching later

Sign-On. on local in not to will the choose and expand easily and suppliers QX, find from to is Also, will with categories categories suppliers be enterprise diversity One only data expanded XX,XXX able but Additionally, rollout quoting choose increasingly processes, suppliers, that Identity set to based to Also, network. an important into able the a will by capabilities Thomas be of new buyers QX, Single category will over our able of Buyers certifications. more certified and we from from we the our buyers. be end expanded

One able cart buyers purchase Thomas shopping RFQ sign-on. single Xometry a will payment. to Identity with platforms to quote and be a will create easily across facilitate Our unified instant and across seamlessly purchase

provides advertising and new profile. we on the Thomas sellers, buyer's engagement in we the data for which introduced Recently, self-service services in platform. dashboard the a option on Thomas market analytic supplier are a suppliers buyers real-time with for services to Thomas purchase For that sellers supplier introduced the platform,

components and which to are option and Our at actively significantly the engage grow for point options dashboard marketing friction new suppliers and a removes new price the with advertising frequency the entry new customers offerings. of self-service introduces strategy they number and our our platform. new Thomas The foundational premium service for of self-service

QX, their base. seller the all services into marketplace. XXX,XXX of we orders. suppliers the software software platform. deep We expand and marketplace to within there look as The Also sellers, with sellers seamlessly view the number the of in engagement will of Thomasnet.com seller expect one-stop drive as in of platform on given on freemium adoption roughly further new to giving expect management our a drive we the operating deliver integrate to that premium to our of order the sellers Xometry a with the end for to a registered manufacturers rapidly and from release system launch base QX platform, will serve X,XXX are to version At today the of basket we version our our of our platform

revenue drive more We detail expect that $XXX which and balance release remain call. provide We our our Jim plan in will later the XXXX. additional product to to the revenue of up will synergies for confident in deliver in schedule on XXXX, in million growth

We buyers and suppliers. fuel abroad marketplace we'll This growth. and have expand additional our opportunities and year, us our to domestically limitless deliver to see services

in Our is trillion $X industry. global the massive manufacturing TAM $XX trillion over

We and fourfold that to with our the business at $XXX to time, outlook. we further as the look In we're I'll for results and over the our $XXX significant to gross expect same to Jim financial we grow quarter to XXXX, just our Rallo, expansion, triple leading CFO, getting X-sided million. our And over that, was In nearly turn capitalize at marketplace. revenue started. margin will closer on a position million. continue fourth dollars call With expect invest gross to profit XXXX,

Jim Rallo

Thanks, good everyone. afternoon, Randy, and

marketing to lead and our strength time. from efficiency We the last the had underscoring As of increase account QX existing profit strong are at our QX, Randy spending increasing Thomas. spend on QX a and and of In buyers for XXXX, and continued from by of accounts We aim at year-over-year. we the us and purchase in Xometry we predictability. existing with of reached up revenue contributed of our model in QX Thomas as of driven attractive In XX% we business to XX an buyers from of year-over-year. Once spend reflects spend $X.X our $XX.X continued XX,XXX. end year-over-year, $XX,XXX an profit buyers, QX growth increase increased in the X, was accounts QX activities gross the over that million, revenue percentage KPIs the account as business our revenue gross December relationship of quarter year-over-year. the XX% in million, the number on platform increasing the of This on time fourth accounts visibility substantial active we're margin Xometry account existing time. XXXX. revenue the underlying profit least provides was as The transparency economics, and and increase was of activity generated was over QX, repeat and on believe revenue revenue with Thomas. generated a engagement million Gross XXXX, well of excluding up mentioned, expand from $XX.X $XX XX%, acquisition significant the million, excluding XX.X%. XXX% XXX growth investment number stickiness our platform, growth XXXX. resulting months joins expecting strong and active leverage revenue and QX reported year-over-year stand-alone XX% basis sales unit our to platform. their from In XX%

profit excluding Thomas, Thomas. for basis XXX QX XXX points Xometry was Excluding XX.X%, increased Xometry XXXX, gross from basis year-over-year QX XX% gross QX compared points margin XXXX. margin in up to

in to becomes smarter, marketplace machine over time. grow, sellers of better driving matches number increasing margin scale and continues buyers our the transactions as for gross learning our As our and

operating Moving XXX% compensation to XXXX $X.X million XXX% that expense date QX million year-over-year and Thomas expenses QX from a costs our SG&A of expenses QX non-GAAP expenses $X.X allocated On related is $XX.X QX the costs operating across of basis, million. the QX costs. acquisition. to operating transaction total to stock-based increased on lines. include operating increased acquisitions year-over-year. XXXX included of operating

million is variable and approximately contribution. expenses $X.X our costs Within Additionally, largest QX charitable operating marketing to our include and of $X.X company million operating expenses, related our public component. sales

of marketplace increase Non-GAAP TAM continue large investment we our million invest expanded network QX, buyers in an and of our and to $XX.X and and year-over-year, sellers. XX% in continued buyers our driven by trillion, marketing were Given will growing sellers. sales $X costs expand to of of

the the salespeople hiring million material was Our for December QX Thomas adjusted Thomas occurred or of not XX.X% of on to acquisition, QX from was and additional our X. $XX.X EBITDA adjusted revenue. as the acquisition loss X.X million EBITDA

marketing and and the One QX adjusted higher company EBITDA million expansion in GAAP sales was and Asia Our $X.X international on due loss public investments quarter-over-quarter in Kingdom. costs note approximately to Pacific and additional EPS. United

included million EBITDA. are Our transaction-related in which $X.X QX from excluded EPS GAAP costs, QX adjusted

majority In $XX.X operating our Turning It U.S. to Thomas segment million million, reporting. is the $XX.X worth respectively. noting from in operating revenues QX respectively. revenue from our million, was and and $X.X segments loss U.S. Europe Segment the of was U.S. Europe and million QX, that and $X.X are segments for

$XXX.X of as and with from In million, early net European we XXX% our with million grew over the in February, were At invest quarter, to continue increased. QX, $XXX.X approximately business, debt. securities our We cash notes in convertible end gross year-over-year improving offering. margins which in proceeds equivalents and raised marketable the volumes transaction cash fourth no

Now guidance. moving to on

$XX representing growth QX expect of XXXX of in the We $XX to revenue to range million, XX%. year-over-year XX% million

Given mix Thomas, QX our for profit purposes, we the for of in with change are margin modeling ranges providing and business XXXX. gross

services. will we range services. each. for QX financial be report cost in of the included XX%. We and sold with gross will supplier profit Starting marketplaces QX and Thomas provide expect results, XXXX We disclosure additional of goods XX% in margin to revenue an for supplier

There our $XX.X $XX.X we and we quarter-over-quarter through improve to in million In increase international EBITDA million. be million is leverage to employees $X an sales, contributors: range QX, in as investments cost in approximately spend expect to environment; in X are reflecting the adjusted operating are of compensation overall XXXX. primary loss and inflationary individual incremental expect making First increasing QX second, the We for are by expansion. technology we

sales including we land-and-expand our significant strategy. team seeing As expanding our in Randy sales, invest in continue mentioned, enterprise on the based to are we progress

that robust investing are product schedule Randy QX. the mentioned, technology in Given also in release heavily we more

launch expansion, specifically our the U.K. international to local further in the in of marketplace China invested including and Europe, we in further expansion Additionally, drive

we running the of We QX. expense from acquisition adjusted $X and and in In be be live $X EBITDA. compensation will to in range QX, will excluded stock-based up expect the in beginning to be stock-based XXXX QX reflects million, China million of Thomas. which compensation

approximately to for as organizations. XXX,XXX pledged shares charitable company's part we of the Additionally, Xometry.org capitalization of or contributions the nonprofit IPO, to X%

As a we million, and expect similar in be record charge this result, quarter, $X.X this to QX. and QX, we each which exclude will expenses, EBITDA. a nonoperating was number administrative adjusted general through In from we will charge

Before I want our influencing XXXX for guidance, top to take factors of year organic growth. I explain of strong to provide moment on balance X full the a revenue

First, synergies by acquisition release in the conversion balance of marketplace. commence through the Thomas we revenue build revenue Thomas expect to our timing product to Based of buyers to of we roadmap, Xometry of users on expect and the majority the on XXXX. the the from the be QX synergies driven

we strong seeing with shift a LTM biggest notable of seen are in This shift the our orders $XX,XXX. can customers. least many at to Second, spend production accounts of growth be in from

as accounts result, ramp these significantly up revenue progresses. a will the from As year

range For XX% of fiscal XXXX, of $XXX to million, $XXX year-over-year year we million the revenue XX%. expect in representing growth to

the for Thomas. growth well including acquisition We for expect as marketplace strong growth strong of as the seller services,

of are margin XX% We to XXXX. gross range for XX% targeting a

$XX range to loss $XX EBITDA adjusted to XXXX expect million. We the in million be of

growth profit Thomas. operating IPO. On of our leverage the of we public expect the top and going driven improving of from operating costs Xometry leverage, profitability for year, June the improving second gross half and especially strong company in to expect our revenue XXXX forward, We by improve anniversary

be to basis expect please adjusted XXXX. on questions. profitable that, for operator, With can the up you We call EBITDA in open an

Operator

Sterling JPMorgan. [Operator Auty Instructions] Our from first question comes with

Sterling Auty

significant in seeing potentially marketplace? start, very to are the from that's the I'd network coming curious What of number to benefit So increase before be get Thomas to -- you even the you attracting on the more of sellers. sellers sellers

Randy Altschuler

Sterling, speak great Randy, with you. and it's to

So been is, base attracted time. own of algorithms tremendous what at experience opportunity sellers to matching to to historically the get really. and user and of their irrespective better better. any I factors, a particularly sellers, to think, We've they've and I them One improvements for our also customer our continue it's think work number done making get terrific are

to a when come to on they're right we've fits likely into top spot. of very been And seller that's does So of something seller our that, find marketplace, our basket expanding then and also attractive. more services, their that sweet

better, great finding between get that, scale customers their to we services we goodwill businesses a them think and them more value-add of and by attraction and that's make as being giving and So I reliable and more them. of lot creating more more as

Sterling Auty

follow-up. to in impacts the That bit a help supply remarks, continue? sense. you further maybe it you Can you're makes bit And us little on that the chains a that little around open then tight X from maybe business the go but prepared the understand, seeing

Randy Altschuler

Yes.

we impact supply So our this -- durable model. a chain, on before COVID, any Xometry And very geopolitical, during COVID, throughout is during business. haven't seen during

to we kind is all, most some got We've these in-country. networks. so the of what got And access done We've -- give first laid we customers do behind localized of of -- of that. out reasons we

an that to so it the source, like option increasing if predictability fact, has need down a world. the of for customers, it world sort in -- it’s more just the an in there's to have double impact. just and need Xometry there's they in And challenges And

why supply heavily accounts seen also I using $XX,XXX facto reasons more you've spend. one in that's us increase of de into So the -- of that as than more leaning More and are customers of nice think heavier their chain.

Operator

comes question next Sheridan Goldman Sachs. with Eric from Our

Eric Sheridan

team. hope if Maybe I X, can. well the I is everyone on

case by builds Can little Thomas. base base a company? the What's sort year? talk have question. opportunity ahead? #X. through case you Any thinking the the how to the #X, moving expansion, back the revenue assumption that as coming you execute how years the what as are you be contribution And the about to about could international That cause assumption move bit First, more variability would through international bigger picture of And we update the year? on in

Jim Rallo

have go onto that buyers get a remarks their we of grow Thomas, out when we through to revenue the the on just think lot back Xometry prepared to going from are help synergies us converting our that's revenue products accruing just Eric, really the new about coming Yes. the platform. you XXXX. Thomas as But business,

the So for to that's year. think way of the outlook the balance about growth the

Randy Altschuler

roadmap, if that, quoting lot something embed know in deck, our Eric, of using people, you to And launching Everywhere if our Xometry at and going look at product you end just a we to called instant launch look we're to add I the engine that's We're technology in Thomasnet. momentarily the but slide threw here that to at quarter. this

Thomas users as this we that go be million again, there registered And talk be so that the ready buyers, technology quarter, for helpful. places so it other to will will converting releasing going later right and their be that be we're environment. next And in we'll to behind very month, Xometry X.X and in about

Jim Rallo

On updates there. this expansion, Jim. international is Yes, couple Eric, so of a

in network said is actually network of in great a have we've buyers sellers And we remarks had had already is China, go developed have China. for launched why China. not Randy significant in we because this his We've a transaction a through. but in As earlier, of us

there got -- on the now. we've ground a So on team still

you when grow of that size as trying at are opportunity the significantly obviously team far China the Obviously, over quarters. as is GMP the next in opportunity We look there. the couple the to dramatic of

really the bigger and of we're folks office other our sales Europe. headquarters groups additionally. when to now, our in corporate launching main there just is our you Germany. in one Europe, we're That's team so expanding think sales but based U.K. I Europe, in countries. Europe is look remind in at there,

to land-and-expand, think idea back right, to is the Asia in it's now. I we're -- We're So right? going the

in We're we're Our to in China. headquarters to to the making there. expand going in continue to Europe investments are Shanghai. expand And continue again,

Randy Altschuler

to you just China and up the can to site in as launched, Eric, can go -- there. that, running to you just xometry.asia, And we're add to Jim go said, so and

about So very that. excited

Operator

comes Our William with Brian Drab from Blair. next question

Brian Drab

talk Can give expenses? Is the in growth 'XX. clarity for us more revenue -- Or what Just last you at you I slowdown and on is This my picture, combined going of step gets a to the obviously, comment with, guess, leverage in there? in yes. increase you that you a A in such about XXXX terms EBITDA, is Jim. not question harder, million that 'XX you function could the my can in is be what breakeven. said EBITDA little negative guidance -- made, of and be to -- the I still to breakeven think, we $XX how little seeing to midpoint like you slightly do harder after get it on

Jim Rallo

Yes, next get We're year. Brian, question. -- be loss EBITDA that up. the significant get we really we're in we number. from Thomas. ramping understand throughout say we'll I certainly down, now got ramping the adjusted And think we've right to feel going I to can synergies confident When XXXX that But I

a profitability is add actually that. in when and jump though, clear, be talk on basis. XXXX, here I'll being an me let I let say that adjusted number, little Shawn EBITDA bit what about talking think And I about we profitable when around more color Now we're for

Shawn Milne

and fixed several our leverage operating you Brian, public the G&A, against really the to be a seeing take your significant our big in and middle in to year, half to of into the model, out the see the stronger of step you're XXXX, second up about in especially going in that's going path profit is we and revenue for think operating next map to in way last XXXX. anniversary that it growth in quarters glide And costs strong in gross of if lot growth costs you're dollars.

picture. can we little that's So of basic a that offline, take bit but the

Brian Drab

just that's Yes, you you're what are will about now. we that go available find services able really engine X a talk else wondering, then for? then the also you can comment little And if to the engine for been don't in And quoting do have on to quoting could be to the participate? the quarter, just live engine bit having get sellers what terms insert have going I'm getting to platform in helpful. second that look you what will Thomas. go know In or like? follow-up work that on to I to quoting that of Like Thomas

Randy Altschuler

Yes. And talk Xometry before participate Brian, just I as from work taking about in answer, you customers?

Brian Drab

get the connected in Yes. the would Seller I'm old connected. just Thomas they thinking in model, just days, gets with someone.

seller Now the engine. is getting work quoting through a

them, picture again. that for to and So different trying it's a I'm

Randy Altschuler

Yes.

questions for both you. So answer let on me

to instant of Xometry what Thomasnet. Thomasnet, as kind the into said the So is place of be in of the we're going to underpinning very earlier, I putting that Everywhere soon, and launching technology quoting to that technology, using going terms into be we're

that And of from current our Those today. that all works. we So perspective offered that all will that, tech be services Brian, will in that. have offer, we're confident Xometry.com very a on

manufacturing in We part the of that in road base to also mentioned or that breadth Thomas. the in map seller terrific services, resides leveraging we're the be those of going expanding large

offer the see expand be engine we later processes in So the see geometry quarter you that then the there. will in embedded you'll quoting us and Thomas, existing

have perspective, And registered-users. Thomas customer user down. sure We're from just the got tech make on we'll users, good experience very a a feeling for good that that's So their side. we've and we about registered that,

side, supplier glass to get for seller Xometry. enable we and suppliers get RFQs the side, releasing FactoryFour from talked of X On to also Thomas-listed pane work to about

got about button. ability of or also So it's also click from to not a from people to that think with the want Xometry, direct, button going of only get the the work accept RFQs has X she supplier. He click but if they

X in them, really it we're place. So for that experience making and easy all we're putting

glass, well. not the And that as their can X also they're of in own So between work manage swizzle pane both. they

giving of So that's to available we the system about away end talked we're QX basis, so premium the why and all Thomas. by that as listed will a in suppliers the be on of

Operator

comes RBC Hedberg Capital. next Matt Our from question with

Matt Hedberg

work volatility guess, there's your pricing set it's does underlying I that commodity a in some commodity perspective? and if from longer lead price prices, on model a how changes Maybe Randy, a dramatically. based time given

of sort the the and that works curious buyers relationship Just how sellers. for

Randy Altschuler

Yes.

know to So I it's that every week. important repricing think we're our model

there right labor. into any And customer to that, quote and in the And we're the the back when in the the account customer we materials raw the manufacturers. remember, to if changes seller, give of to are giving the buys so takes that quote or

hand are X what The the price be the predicting the in hand. X sellers. us will from produced buyer So is produced

or that's updating So as train model new model that the we sellers. week, for we prices that adapt every offer buyers with and data

even great get our that as more That's actually see, that's inflationary we and as data, -- gross well. we environment, So more you're in more and why efficient. why we you growth likewise, margins seeing in buyers And the seeing get we're business. as also an And get helps as more improve.

this had any using machine updating hasn't we're So it that's because week work. impact it every to really make learning just

Matt Hedberg

the revenue? the sense. I it should line did announced the assumption acquisition, at was of XXXX, the base $XX of lot a think I with sort be Jim, revenue. Was when revenue makes growing Thomas Thomas kind I That in in that it. of And assumption? roughly of the you about core I Xometry sort -- that million XX-month thinking trailing baseline on believe the about think you time, then, guys of Got said And guess impact

Jim Rallo

Not exactly.

Let that. me explain

So to had we've a what we the expect what growth have the similar said was than would rate combined we that business in past.

So we're to work Most buyers that's marketplace. on Xometry with of going leverage how to the will to is those going synergies the sellers the our and occur Thomas, right? with ability transactions -- of

transactional benefits the hasn't growth don't expect Again, remarks, that's, one So. we we the the On marketplace. Thomas that. issues And really -- a see from be we standpoint. a synergies it changing basis, with well. to see combined Randy a as the of see of transactional his as do We're don't that's way operating in is been we'll and said continuing,

Operator

with next Schindler Our Nat Bank question America. from of comes

Nat Schindler

Yes.

prices, mitigates profit impact which what you contract chance before the With is guaranteed to of ahead time What give change the in and been a rather gross fast commodity has price and is your recent when volatile. completed? a

Randy Altschuler

Yes.

So we train week. our pricing every

we've got repricing we're so and the using we're every learning, machine week. So model --

and the incorporates And do changes so And the costs, materials, our any ensures cetera. both that producing raw the when pricing we're sellers. labor that, for prices in buyers et that we

-- of the price, a it. within we so that the price, when make looks can period and think at we're for that what consideration she if to a buyer taking we site giving comes our So manufacturers -- that her into sellers,

risk sellers of any pricing the really But and we the irrespective we're same happening environment, more also data all buyers us why and we're at of have more time. actually it's getting and that's we're at So even us because as gross as margins, same inflation time. That's you've catching don't seen virtually more grow the for buyers macro getting well. our and active

Nat Schindler

percentage Or what -- typical mostly a of contract it is labor? And it Is material? raw is

Randy Altschuler

a it. it, part small of not part It's big so. It's a of

Nat Schindler

So volatility total, and only profit not big small no in a short-term gross relatively effect already what on on percentage obviously, to of extreme have when contracts engine it's this a accounts? it's matter the your even going

Randy Altschuler

right. exactly That's

Operator

UBS. next Our comes question Karl from with Keirstead

Karl Keirstead

shift revenue what Can $XXX just And I of in $XXX the that mix you a by meant of is you largest million, your you profitability thing to heard Okay. clarify -- some what were from shift the production perhaps through couple. thinking Jim, you you buyers. you might to Great. when you guidance orders. what and Maybe that shift? a be remarks, your called the revenues a correctly, million mentioned X you during that framing on if mentioned impact and were

Jim Rallo

Yes.

time you -- periods. I get over certain production they orders, think tend think when what about Karl, delivered they to

we when we So revenue ship. record those orders,

more So the what going because one, to is, a we're got to there's lot ship. -- the when predict we're ship, exactly with we ability, to we know happens going amount we've that right, know

for Those got that right? about orders a think almost manufacturing, real larger. to locked that, it's you SaaS We've be tend So model like in. also almost

a could they clear a over just delivering we period in they X orders can different that make about we're certain record revenue revenue so quarter want roll think possibly on sure to over time, We we larger So quarter, of hit forth. and all But ship. to recognition. when

out, a over dollars both over that's runs more or if number larger, in the getting manufacturing called you $XX,XXX, accounts $XX,XXX spend absolute say that jumping reason in open area. like look the this is you up our if that's for is. more, again, would of why the at real lot, accounts in these us I and what the We're and also we at look While with our --

Randy Altschuler

Yes. in little just bit. a to And Karl, jump

added we've to the production marketplace, like like die injection molding, manufacturing Xometry So level stamping. like casting, technologies

technologies our we've more seen as And orders. solution. deeper those. greater enterprise these that production of really of customers, so go that And into become an They're those we adoption embracing are creating

medical lot example, of more a We're companies. stamping devices. So for for injection molding doing we're vehicle electric doing

exciting an that's we continue for to us customers trend expect as more embrace So more. and us, trend and that

Karl Keirstead

it. Got

Jim Rallo

And really been marketplace. for the the about talking is while, Karl, evolution we've is of a what which this

Karl Keirstead

it. Got

news. like That sounds good Okay. net

a the then maybe didn't identify But And revenue the gave your specifically go margin, just year terms us in you that, contribution 'XX contribution. to I Okay. gross if you EBITDA. full could Jim, as of calendar Thomas, adjusted follow-up, Thomas back of

Is $XX on gross good I about 'XX. EBITDA and adjusted million people loosely talk a can the that estimate? are least you line think And on qualitatively, Thomas maybe impact from margins? in the most calendar at thinking

Shawn Milne

you're great growth mean, that start XXXX. way guidance. to thinking of curve products about And that. we've specific it lot take a over bend think the Thomas, I'll I I we'll Shawn. from won't growth and we services It's there, makes got rate out But the Thomas sense. coming give and

into around time. knew we year prepared the of the remarks, it Jim breakeven time, roughly at comment. that's was in see I can improve half said the sort of seen of part over our we options and margins that like you revenue, of what you've XXXX back acquisition, new and our we and the mean, have in filing his As in self-serve, And Thomas as grow we

Operator

Silver question David comes next from CL Our with King.

David Silver

you of you I'd it Jim function. other question, expect like to a drive to kind follow that sellers And to from think, to I just mentioned Thomas overall I the element strategy understand mean, Xometry I quite think why be curious point, adoption users X that that was in who what buyers of to key And the as guess, how think the mentioned Thomas the combination. users use converting over up, about the enthusiastic paying is I Xometry the strategy of to of getting on I But wondering Xometry? the I'm first platform. I base particular, paying directly Xometry you're to over element just the the do those implement users elements But not or thinking for this that, of about Everywhere would to become platform? are service

Randy Altschuler

question. great and Yes,

X.X million about registered let me this So talk users.

was -- buyers Xometry, -- we QX. Let That as active had me XX,XXX. we start by a of a reported, also in record saying just number number had and Thomas

Jim Rallo

XX,XXX.

Randy Altschuler

been has years. So for that users, around got they've perspective, just put to X.X XXX and registered million Thomas

So there's still people a know don't Xometry. about who lot of

immediately Thomas know users of they and exposure, even and Xometry technology off our that, integrating into Thomasnet, us integrating those right So Everywhere by give yet. that will don't

tools off going user-friendly Thomasnet. got very great the good make it them opportunity for help But Thomas they that So the then go experience news to that's when is to easier it and to right other other buy make we've we're our for to that, users. a a

announced in about enhanced CAD CAD XXX. Fusion popular programs remarks, -- with got we've So just our our for programs, integrations X.X the like an SOLIDWORKS. We

of we user's then those so or more to integrating out. into integrations our buyers' directly And come systems. also ERP have our we're And

we anywhere. programs, they're systems. us on Ariba for making in ERP, or or user, and the And they again, easy So not whether integrations using not Thomas can they in CAD Coupa, that just or or convert successfully it or in are whether whether site, Thomas find their completed that Thomas and XD other user’s not really

David Silver

and but it's Okay. I’ll That's question, advance about One great. if January. this your from in other a little apologize raise naive, capital sounds

So your cash fourth year a at certain when there, your guidance. there's balance sheet, amount I I at -- December XXXX XX fiscal look look of and your

timing of just little elaborate fund situation more you for behind you? maybe I'm what to the just does you be maybe But this you size financial that current on additional the So operations time. bit and me, wondering could is a it where to from bring allow able cash the this your was typical you in a amount on words, hand to considerable do the a of the other could In capital outlook? raised. going thinking to or table capability wouldn't to that with do fiscal it wasn't for What if 'XX

Jim Rallo

don't around enough think cash We XXXX. us certainly frankly had the Yes, balance to profitability. sheet it specifically David, I on get to was

was long over confident very growth our We're it -- opportunistic a around the in for us, think time stock period the the of I market debt. time. convertible at for the of

the factor certainly we into got believe place we rate. conversion also, taken a will X% so interest be And And there.

to the think with look trying think little our macro concerned capital raise And were when as we a So for of And that be with at very global environment. capital cost appropriate. you bit can I environment the was timing frankly, and as cost shareholders. the efficient and macro I our of we

it we was whatever to, after, do sheet powder sure to balance to we want grow so business. And about about year worrying on next or it about our wasn't the making the had enough year

Operator

participating. call. concludes conference for Thank that And you. Thank you today's

may You disconnect. now

Xometry (XMTR) 18 Mar 222021 Q4 Earnings call transcript