- Earnings call transcript Q3 2022

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Operator

Good day, and thank you for standing by. And welcome to the Xometry's Q3 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be question and answer session. [Operator Instructions]. today's being that advice be conference record. is Please hand over Vice to would of now speaker conference to like Milne, I your the today, Relations. Investor President Shawn Please go ahead.

Shawn Milne

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

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

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

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

Randy Altschuler

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

market leverage model. and into we fiscal expect significant the underscoring We share quarter-over-quarter operating and million are share value $X.X to to with gain marketplace another pleased record to record our delivered gross quarter growth QX. revenue XXXX. The revenue of to adjusted gains our profits. and those report year strong us EBITDA year-over-year $X.X million in We growth in We QX XXX% continue by and enabling loss our in is profit gross XX% reduced

depth driven strong our of quarter I Then on business results. turn QX provide trends third in a call performance, will Moving North platform Marketplace more revenue provide driven to growth the rapid buyers Europe. our key supplies initiatives. across by financial historical update year-over-year an for and review increase will over I on our marketplace services. nearly in strong Jim Likewise, QX and business, $XX.X a added in increased year-over-year, QX. to Xometry of a XX,XXX. by marketplace. Rallo of our growth a our CFO QX In revenue record Thomas. million marketplace guidance. prior experienced a continued both of We the $XXX.X review revenue robust the Xometry active over and services with financial our adoption growth active at and XX% of in the in QX buyers and QX by QX, the offered buyers year-over-year Marketplace to was revenue XX% we quarter-over-quarter XX% and XX% consists entirely in expanding was America million and and set processes manufacturing record with results of growth. larger different strong growth many addition accounts of marketplace supplier X,XXX We active had excluding

strongly of with increased number XX automation, food XX accounts verticals, spend multiple resonates automotive, QX. Our general to last year-over-year across value in months XX% manufacturing. strength strength and at in including education, robotics saw as accounts as ongoing customers. of and $XX,XXX XXX proposition beverage The We well least adding

land a to expand invest for enterprise sales in continue we our success the Given and strategy, engine.

step of pricing on the due the number become and their active throughout we activity see marketplace trends Xometry the change While supplier lower headwind did and a increased buyers level costs. quarter, late in quarter marketplace to the a

manufacturers Thomas, supplier vast of business, is in further and lower shortly. the the revenue health QX of marketing is in Thomas plus services historical We their marketplace financial was convenient monetary including cost dynamics revenue these discuss to supplies, detail acquired and we advertising access services $XX.X majority provide XXXX. to services. operations. enabling supplies of will December We But which services million, our strong. ecosystem overall supplier The

of also products. solutions. a growing cash advertising Thomas and of including FinTech flow services, our improve marketing basket We through we've basket their supplier With expanded

quarter-over-quarter. growth business added XX% Norwegian our we increasing with to revenue international and deliver continues to year-over-year, and site. Dutch languages Our XX% Polish In QX, strong European

with strong in to and expand success and continues underscoring margins, across new the energy medical, verticals universities. compression including Europe pleased biotech, gross technologies rapidly demand marketplace demand Additionally, as from for our geographies. and the including across We top remain Europe orders introduced new molding. Alongside we're casting and buyer seeing many production growth, line ramp vacuum China

and improvements and XXX% increased higher of profit services. basis driven margin in to expect gross significant We to increased marketplace in XX.X% strong contribute the margin gross XXXX. margin, QX, In growth significantly addition grew China year-over-year supplier year-over-year. to to XXX by of points revenue gross marketplace QX revenue top growth, quarter-over-quarter On in

three past years margin now has XX% over in grown the XXXX, from to Over XX%. gross marketplace

marketplace margins. expected. our match our for the driving of buyers number machine detail long in confidence to As pace faster become improve and XX% term same gross this suppliers more demand later our further continues grow, which XX% of smarter of continue marketplace about provide to of and up gross At network The helping and our suppliers, factors at these margin reaching Rallo gross a better active time, transactions will call. learning significant gives matches we and as scale, margins. to to our the supply in enables target the successfully combination us and improve Jim than previously ramp marketplace

convenient provide choice, and those the instinct who our and suppliers engine into high industrial work request and further the consuming to scalar trusted up done buyers, support. buy platform benefits integrating once benefit The customers including with Suppliers to Following work summit want and center and for now. for provides at buying on options. integrated and gets QX, heart networks. to rolled from it buyers the convenience of process, It end to the Thomasnet. advantage June. value Xometry engine to the including The In off quality of for take time suppliers was cumbersome from Xometry's of solution engine checkout high additional digitizes can new and it buying payment quoting the taking what secure and payment products buyer out an customer we exposure industrial options buyer quote of also

a of lets to revenue like to to Xometry stop businesses, manufacturing into services, orders. all a board the and aspects scalable improve all their suppliers execution creating to industrial with we job funnel for was remain what in centers center our of manufacturers as our and are work easy We to platform. of love buying buying based of of XXXX. our software incremental the across help new about one experience By the it buyers. and digitizing of all top four call financial pleased system industrial rolling Work their submitted brings one Thomas developed on QX, the of our acquisition and system. In their user suppliers With about engine. seeing creating activity, love the and all of popular grow to number and on they to version are do factory focus Also into projects early suppliers, in in stream operations, fully freemium buying healthy activity QX an continue and cloud one everything in with everything Xometry QX unified their experience one Thomasnet We're engine we use view digitize began continues center software featured operations. all grow. out buyers The new the the give thomasnet.com. attract the aspects suppliers work to need they action

are cash the work of non-Xometry the including instant payouts that of suppliers the can from their All work financial card their dashboard, all it advantage pay shop is best know suppliers of take One seamlessly benefits work track finances and suppliers in can products. pay, of work, our integrated our love fast center flow Xometry features advanced and Through to manage customers. use center. the

suppliers of suppliers of rollout not are platform, in with Xometry who activated We many work are the we've the including initial Thomas pleased as XXXXs partners. center

jobs are We the platform. on rapidly scale seeing

center States. With a and these products businesses to directly businesses their integrations systems, side Quick We unique platform, Books have in and over work with services to processes will XX functionality operating customization, enabling in incredibly manufacturing reflect our and from work invoice marketplace Oracle provide including those become center. enabling is workflow generation to XXX,XXX add opportunity easy accounting businesses. with United suppliers The system our most have NetSuite to supplier important of fewer use QX, than XX% accurately of prominently we tremendous the employees. fragmented several new and

XX%, Now to QX, grow over increased gross is XX%. in we and XX% XX% of turning in record trends. marketplace our active Use saw QX. of marketplace growth strong October, in buyer year-over-year. increasing. to October another new manufacturing buyer quarter grow Also current to over to marketplace and active revenue expect business orders additions expect continued We profit In

orders, and conditions, consequently marketplace, supplier activity access for Our We our them to as customers long and One September, are to which uncertain it August engine resulted faster a jobs are for macro environment buyers increasing accepted how rate jobs We may marketplace accelerated order rate. better and XX% on a step base believe AI measure suppliers to saw have cost attracted change provides taken significantly to accepted. growing orders. the job delivering market decline were value the algorithms in this our of increasingly behavior the a From as unprecedented change pricing rapidly frequency. of they at in be changing a the to more takes it dynamic. is of as responding to aggressively with matching at an quickly

our revenue growth As conversion declined, to our buyers, which in AI the marketplace rates our cost lowered boosted dampening term. driven while prices near

costs we've we optimize pricing While conversions recent growth order our in strong and can weeks, job observed lower algorithms. through maintaining changes in while our

pricing and of per will combination in robust marketplace grow to order the optimization buyer expect us our enabling revenue growth. early frequency deliver higher XXXX, We

Additionally, margin driving as growth XXXX we profit expand gross well. to in gross continue marketplace expect to robust

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

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

Jim Rallo

everyone. Thanks, morning Randy. And good

X% model strength the and active active as the of QX million mentioned, term account accounts. driven over supplier their on spend revenue buyers, transparency approximately our QX buyers increased spend on We joins $XXX.X dollar quarter of and in QX slight the from with up impacted efficiency XX,XXX. the Thomas increase year-over-year, supplier that created expecting spending end least the in well for services us quarter-over-quarter account metric QX, the business by and we as to a revenue million. revenue our strong was relationship underlying growth QX we repeat revenue increasing XXXX predictability. at Marketplace QX and revenue XX our revenue third declined of for including in this reflects accounts XX% The by The strong of and XXX year-over-year. U.S. reached $XX.X of growth was increasing of drag each. platform accounts services to despite of XX% XX%. strength goods over growth negatively by Supplier million and QX. financial The XXX% The $X.X In cost XX,XXX a increase was substantial buyers provided account marketplace U.S. million marketplace and purchase profit time. QX XX% percentage services. services the a for year-over-year. activities driven QX visibility continued platform. gross revenue expand number pricing decline are headwinds. by supplies existing quarter-over-quarter. the provides an with last and driven for up significant XX.X%. stickiness additional was QX, on for existing gross with points increase primarily margin from was of sold Randy basis Gross activity $XX.X XXX believe gross year-over-year our profit a of an marketplace results, that and XX.X% the As from leads to generated of addition revenue revenue. the with revenue XX by million was of the in Once near XXXX profit number lower year-over-year was and supplier spend of months accounts stronger at platform, margin was business, basis. existing aim Starting $XX.X of time. an underscoring QX, strong engagement and we dollar the disclosure We marketplace

as the smarter time. margin machine driving to growing mix gross grow by our our over Thomas our our As gross matches, was the expand margin transactions and gross due and driven the advertising lower of learning QX expanded scale financial better marketplace XX.X% marketing and quarter-over-quarter continues Supplier revenue. supplies of to services. services gross XX we margin points number suppliers supplier of increasing and services services becomes margin for high basis network of

the excluding company million The to and stock sales the growth strategy. QX marketing based to Moving to million marketing investments compensation to of XX% total operating year-over-year and QX expand sales operating of Within sellers were sales driven increase by and marketing a year-over-year hiring in sales continued and in marketing QX largest on our our in the and XXXX. amortization basis as in $XX.X component. investment operating business Thomas non-GAAP, is continued support on land non-GAAP operating costs, expenses, expenses compared $XX.X and and and expenses addition public driven costs, salespeople to expenses QX, network cost. non-GAAP In increased our QX variable of $X.X incremental was additional by buyers expand Thomas addition our strong million, costs, and of

on One million Our adjusted compared was quick in or loss XXXX. revenue note QX QX. revenue, $X.X X.X% of XX.X% EPS GAAP QX to for EBITDA of in

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

we a we In a which general record administrative and recorded $X million. result, charge adjusted is expenses, of excluded in charge As EBITDA. a from QX non-operating

and to $X.X segment $XX.X $X.X Turning operating was million international from for and respectively. QX U.S. from operating QX $XX.X In our and segments U.S. revenue Segment our reporting. million million segments was loss international respectively. and

year-over-year and were QX, cash FX to our cash invest continue in grew $XXX.X of third constant in currency basis. year-over-year and international end on million. the the marketable which business XX% XX% neutral, securities an At equivalents We and quarter

Now moving guidance. on to

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

QX, to in improve quarter-over-quarter. margin We expect marketplace gross

at as be expect rate revenue faster a would than we grows As supplier in QX. a total gross services margin reminder, than to marketplace lower QX

loss to in the we or EBITDA $X of be adjusted in expected will million will will compared the line our the million, the operating in expenses quarter-over-quarter X% of to the EBITDA $X QX lower XX.X% revenue is non-GAAP to QX, impact seasonality due trade of loss of in In publication expect there in due with adjusted magazine. approximately revenue Additionally, $XX.X to higher This loss of grow revenue, QX, be XXXX. while or of QX expectations. to Thomas their timing by impact business than range a X% prior quarter-over-quarter XXX,XXX. million to

Given opportunity grow massive our attractive unit to and economics share this to we're in continuing gain to market, business. our invest

term we prior we further will XXXX. profitable growth Based on in expect buyer on expect than QX, based marketplace driven stronger As $X an in XX% gross to mentioned, gross profit expectations and expect which adjusted our to we to EBITDA million, expense gross in marketplace versus gross stock gross growth we now of compensation expect trends in In half EBITDA. and margin long in adjusted a target XXXX million improvement exclude expected approximately in growth marketplaces. the range robust driving marketplace XXXX, to margins Randy $X now of from second reach be margin faster to strong We growth be order our XXXX. XX% of by profit

We open semi for expect that, questions? over costs. significant the With leverage fixed can including costs, company Operator, you call public please up fixed and

Operator

you, from line the Please question of comes Drab And our sir. from William show Instructions] Brain go Thank I first Blair. ahead. [Operator

Brain Drab

question. the Good morning. Thanks for taking

Randy Altschuler

Hey Brian.

Brain Drab

morning. Good

change So that mentioned change? 'XX. of the a restating in calling for expectation? is Jim, your you you that just are you a expectation expectation? the profitability Is the Are Or half in second out

Randy Altschuler

a making slight am I Yes, Brian. change here,

again, profitable earlier adjusted be entire EBITDA would we think I that said for year. the So we

think on the now. of really second looking at more half year we're that I the

Brain Drab

Okay, got it.

your further. been there then I pricing, able the of also, as you're detecting change parts the in that noticed, know quarters have some looking lead pricing, or long some and I mean, could that quantify couple is it Have as Because lead that's times that any at thing And change? all in you be here? your times, not. been you may the that one I actually times Okay. And decline manufacturing slightly, I'm don't to to last, true, I if at improved the for seem when lead

that. could Just you comment hoping on

Randy Altschuler

Yes, so Randy. it's hey, Brian,

to call, XX%. mentioned, we the acceptance, time as the on So dropped

And got unprecedented key is for faster, a us. things costs. driver acceptance to drop is taken So XX% which time of

to accustomed we that's dramatically. cost so And why So down went weren't again, that.

pricing. are optimizing working We on now

that of beginning sort of makes reverse order always we trend terms of working from buyer. those. pricing a And us we're confident And frequency year, revenue can in next the optimize the the in plus increased combination that on lead per perspective. to Again, on both conversion times

lever the it's want push optimize same well. share revenue at to our for our another we us customers, it's, So as as but grow market to get with time,

Brain Drab

Thanks.

mentioned of the quotes speed what which accepted. But talk being Thanks. you you terms at a resulted in about the So are that with decline in price? all can

Randy Altschuler

Yes. demand and a Sure. very again, just to healthy. let is back say, buyer And be step let take start and me me with just clear,

we be discovery. said, actually to expect has we as add that increasing cost or bigger even buyers well. that works added our that number way of of unprecedent The the And and frequency we order the active pricing do number top then we on quarter-over-quarter As is in QX. of been

unprecedentedly the margin we expected suppliers in when customer What algorithms in unexpectedly a we late and that. result, that our So suppliers jobs that take lower, cost as is have a much in discovery top taking order we when price, we will earlier happened And seen QX lower on were suppliers. and the have had do an schedule. a think was which than QX, cost past. And cost that accepts we, of at a our with then

for on we're healthy implementing of with the from And we've drives order. gathering in such your the your We're even revenue that drop this gross down process quickly. data. that margin that, weeks. out of We optimizations. And so dramatic play And never let now seen again, so top price a it some

to into tuning take unprecedented Now of that time acceptance. algorithms our in this account to decrease we're kind

Brain Drab

it. Got

up much give another way, that as might not value? of you said So

Randy Altschuler

we exactly. give Exactly, up drop We to we're had that's That's run take exactly. as we may Exactly. given let to get conversion wanted account. it into optimize to have as we need to don't we're data. and rates, that And didn't revenue. weeks. much now algorithms trying We We're want the to optimize. right. improving significant need for we And exactly kind our We up to, of

Jim Rallo

the Yes, and buyer as has been then never just has Randy supplier engagement the never like a click on double been that, stronger and stronger. Brian was saying, activity

at our much You pricing faster pace. got works. jobs know taken just The a off how

Brain Drab

Yes.

back Okay. All line. very Thanks right. in I'll get much.

Randy Altschuler

right. All Thanks, Brian.

Operator

from our line And you. Goldman the Eric of Thank from Please go ahead. Sachs. Sheridan next comes question

Eric Sheridan

that the can behavior question. element pricing on follow Thanks on for for understand forward the platform. potential some on taking Maybe up going we just of the I better the dynamics the

are macro of terms beyond quicker, happen accepted demand buyer of what volatile be growth pricing into sort in down well. as both if of getting bit feeding coming the thinking So a jobs little a of more elements can QX pricing and should that environment about slackens in of elements we to terms how

talking terms are the growth of and provider buyer you guardrails keep thinking year, what early a to in of and growth us more That'd revenue So maybe acquisition in base of know get But irrespective year, give buyer happens demand of mind we or volatile the we any into Thomas want to next little little thinking of dynamics a bit be I us into analysis case as And sort then environment? number about macro the macro lap 'XX. there how a mixture of in next it's be environment? pricing in be the should just your one. about Thanks. you thoughts about as growth

Jim Rallo

Eric. Thanks, Yes.

So going active have as in And again XXXX. our a to XXXX. think jump indicate we up Last XXXX. did QX recovered beyond have added been caller, that. net about And number we quarter was is we quarter on about this QX the we did XXXX look quarter, which that in ads in we buyers

next that more the coming revenue growth forward. their thing will has So amplitude we're and get active we active magnifying that macro moving to actually or continue buyers, strong growing uncertain buyers think is marketplace. it Xometry more And this environment, a multiplying seeing buyer into if you provider the in to we you're that as effect And back as goes as year. turn those good you and up, effect see

we strong. that think So very

also didn't didn't we We was not dramatic give accustomed take this to algorithm sort to just want But much that, describing We into earlier, move too sudden kind up again, been we did. our to drop. think it. as had of didn't account as Brian hastily need to make changes we to as of

we So reverse with QX as were going conversion, buyer. so anticipated of that per could confident when active we that gross you multiplying And larger buyers again QX that we'd have through a trend on base now into revenue go a XXXX. that we that on balancing can effect

Shawn Milne

click Shawn double it's just that. on Eric Hey to

number even we're your to year-over-year and in active with in going active Randy to said, in expect the play going out QX is seeing that see is buyers, at XXXX remain very starting strong. is what you're that as look you grow we model If buyer growth you

Eric Sheridan

for thanks color. the Great,

Randy Altschuler

you. Thank

Operator

I show. And

line from JP Our the of next Cory Morgan. question from Carpenter comes

Your line is open.

Cory Carpenter

China. geographies on international your Is still more Curious on revenue to based maybe I expansion. couple XX% A start of strength bit what time? long seeing about what in? informed talk also possibly And want view think, just a on then kind seeing that in about that Thanks. what to seeing you're over you're early you're how of the international right talks today? being these ballpark curious And based little

Randy Altschuler

Yes.

-- In terms your of

Shawn Milne

Shawn. growth. strong Hey Cory, It’s Very

neutral. the effects on XX% growth said Jim As call

were XXX% keep in up last year. going The other mind comp is a thing we to against we're

the trends Europe in So strong. demand are

We continue sales, in add Europe. new languages, new new people, to new geographies

the to with we and think Europe's add China, And on international we term. So no of of and We expect call, will in our as in going pleased term. be well. revenue growth remain we our certainly early XXXX revenue China from terms demand the change in perspective said long very long marketplace XX% to

Cory Carpenter

great. Okay,

Jim Rallo

a Jim, I right add things there. Hey Corey couple certainly would just of

dynamics the we when So we're couple last the now, of have China right over trajectory in at the of growth as look seeing we sort of same years. Europe

Additionally, are, the quarter added UK of but my did in those we the so we the I continue capability exactly marketplace remember can't as off And Europe. which add expand that languages. launched or head well. this three to four we different ones top

Cory Carpenter

Randy just for the of with been Thomas. you, last maybe, certainly And the you've busy integration quarters few

Thomas where as 'XX you the an gave just think we side we areas integration perspective Just product initial guardrails some a and be year? your focus from next curious financial on after but more us of to perspective, can expect biggest

Randy Altschuler

be addition. from to really am we Brennan caught Yes, chief sure excited us I with not mean, but and indeed, to it we a brought will continue from that on new I came product officer Stern, who

I the reported is we have site, key One about comments focuses. in center. work have And two activation. supplier you of we now XXXXs we think think when So overall, as

in work who suppliers processed as but the not we're weren't as about Thomas that's being suppliers it work that. Xometry, And Xometry/Thomas we're work well, was amount center, also using were uptick excited seeing of So non very Xometry center, in a only suppliers. it's nice

efforts. that, going And us the monetization then has products gives that which So offering out we're knock continue great really our ecosystem. as in sticky excited about invest got suppliers, a very also of financial that creates our our suite That effects on relationship with there. a we've we're throughout to to build

transact transact for then in Thomasnet. on easy it really to focus center. So to on And a to streamline very Thomasnet. the on And paying work lot Thomasnet that for revenue the searches to also think nicely Thomas Thomas suppliers likewise, on buyers are a comes up suppliers bump and IBE from lot continuing of in We coming who on of that ties just respond as make advertising. to times easy in and make it to well. the

As we that that think we will Thomasnet business. advertising on enhance more transactions do itself,

Cory Carpenter

both. Okay, great. Thank you

Randy Altschuler

you. Thank

Operator

Please RBC. the ahead. question Hedberg And go I from comes next show line our from of Matthew

Matthew Hedberg

what to earlier? Great. I that to guess Thanks taken thing orders But me, being think accepted fundamentally change? for causing quicker. orders I'm do double these on like taking to underpinning my bullish click be these is I wanted it feels Because Randy, questions. are is very you curious, that what a

Jim Rallo

change couple I a is things. Look, And us. it's a for it step really think of

which continuing algorithms, to getting optimize are on for part we're suppliers know matching our algorithm the matching That's which First side. to our is of good jobs.

it that stickier to cement work that. So continuing are our relationship. things center getting like with to we suppliers optimize help continues it we're that, just, Clearly, with

I important. it's a you And So as think very with weird then other companies. that's environment, know,

macro. be So in really that, long the very early this to we're term next there to it's but a for certainly, very impact know the about do year, Because that, us change positive dynamic. as may even Hard for entering happy us. well, some from

Matthew Hedberg

it. Got

to maybe then And on Okay. just double click Thomas.

about onto to of that a Xometry? And I look on maybe to excited there those you buyers to those bit more Xometry, are perhaps more bring center. to bit ability little work all things the further more and since a onboard of little optimize think we're that's granularity progressed how sellers

Jim Rallo

easier between the easier, just the I of that make trying constantly mean, out. them check it's streamline and the make to easier, think it's buyers user suppliers, just complete I we're same, just so communication Yes. experience to the more to transaction for

their overall business. the center work in their in capabilities build to particular manage continue out Our

more So shares. of we their can capture

if lots offering to UI of we're come, what products. all and doing of on doing daily So you we're those lots our we're just enhancements

Randy Altschuler

for center out Excel quarter and they prepared off typically with we're be to run QuickBooks on that's Matt all something with rolling shops and don't Yes, we and going machine great packages integrations it the this the they and these accounting out QuickBooks. business remarks, their Remember, work that's want simple accounting. spreadsheets just called but and

integrate So we'll that continue help that in to also the rollout. and with should

Matthew Hedberg

Thanks, guys.

Operator

moment next of Thank comes UBS. go our also One for from Please from our question. Karl Keirstead you. question line the ahead. And next

Karl Keirstead

last time quickly perhaps how for algo? you Randy ends ability it, tune how it half and up. Randy follow you how that you can make this up it about track? tune of So when you're In to get put we things comfortable quickly can back a two. were got other I've first the and algorithm Thanks can your with able can off comfortable street us the you a we as Jim, feel and Thanks. do will so to I've so fairly in modeling comfortable how got words, was on caught quickly can, to the get lot. on sort how print got if instance, posts 'XX depend as tune that then Xometry guard QX the suggesting,

Jim Rallo

the to the Karl, take situation timing let Jim. very quarter as the XXXX. second similar you in we take Yes, had this right, I'll if part. the as I'll back first it's And of Randy, But of a far retune. recall, first

how didn't talked we place that some materials. public, we about that was or We issues went if in to inflationary particularly before So going had stay that openly and know had about we not. going with on,

implemented we what we of dynamics that was protocols, new algorithm fix the understood there, situation. we happening once So and

it's a So very is similar give let details. now. right we to you I'll occurring some more Randy have what very,

Randy Altschuler

Karl. Hey

pricing customers. obviously over our control have our to We

for between price, from and few difficult in And do But in It's always important. QX What trying not elasticity, the to to unprecedented. very the seeing this such model was a these us. we're conversion rapid started that's we're we seen that when had of out of to end such short period it's decline bounce since trend in easy never, tradeoff weeks, never perspective. cost It's for again, We last that. this algorithm we've a the we literally rates. wanted time. change price So is to us that

will the be math we gathered to are we're of to bigger. is into and And confident, If hasty buyers, want feel and on said, good we to that that of that pricing. we're of didn't data, increases that we're we QX have changes now the too QX that, QX active and continue per as in weeks into we that buyer we've multiplying effect. process our why going So pretty revenue going with see That's optimize never been QX from confident the implementing simple. which to growing in has accelerate a base

Karl Keirstead

Got it.

you, it's just both. then Thank up. Jim, helpful. very math. Maybe you follow And my my That's checking Okay. for

revenue expecting I of XX%. XQ marketplace growth said that you're think for Randy XX%,

growth which profit midpoint, So you at of and marketplace get profit $XX the million that XX%, would gross would $XX to million. be gross

So if quarter. over from math third smidge I that you is wrong, be my actually in percentage margin you're $XX sounds did it million] up what unless the take me [$XX million that to gross to marketplace guiding of a XX%, would

to test math? want that stress Just

Randy Altschuler

to in will going gross QX and indicated continue. that we are for we've that margins marketplace have QX higher Yes

Karl Keirstead

both. you Thank terrific. Okay,

Operator

David Thank line & show ahead. from you. [Operator of I from comes our Instructions] Associates. question Silver go Please next And CL King the

David Silver

that more your track opening But to the we discussed I'm step the number buyers, of is I believe other effect Yes. your the than you wanted change” you kind let's I platform back point your at suppliers? of thank Thank on becoming you you in you. which remarks. that's of regularly? But the rate? acceptance discussed or engaged are kind quicker prepared in supplier In talked wondering similar comment just change that Hi, maybe discussed, to faster what words, step And go rate you. “a to that two in suppliers Or a a one activity. remarks? if was at to say

Jim Rallo

level, faster short and took in -- endured. the been change very that's of jobs faster active said, was their time has their change buyers, they much platform, Yes. we're take eagerness Absolutely, step them on we you always have really on a change, as just period persistent behavior their, but that there, activity just and the to more XX% a which the their that

stickier, like optimize comfortable we've that. So Things algorithms. trying it again matching are to work and more been, center we've they're the helping with just, been

in very been change. positive So a that's long really again, term, step And us. the the it's for trend

David Silver

wondering Okay, a just could the I trend. comment if trying comments. thank that. you make was just different than maybe your that earlier you And was for But if on clarify to just then beyond something

related but I sequentially. here factors? manner? and marketplace what some trend a bit, Or below trend it was revenue is due the rate little and Is to quite bit was in whatnot is discussed acceptance the to a it You've a down I guess modeling quicker also revenue that in the little bit just services other supplier

Randy Altschuler

supplies really grew to our to quarter-over-quarter, bit, so it And just So a due saw little bit it's Thomas you supplies materials We outside it's of that change business. which quarter-over-quarter our our why really a little that's sell can so business. dip. can somewhat a be

David Silver

you very Thank great. much. Okay,

Operator

Q&A further concludes call. you session queue. today's you. the in questions and for all participating. Thank no This sure Thank our I'm

You may all disconnect.

Xometry (XMTR) 10 Nov 222022 Q3 Earnings call transcript