Earnings call transcript Q2 2023

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Operator

Good day and thank you for standing by. Welcome to the Xometry Q2 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. conference recorded. today's advised be is being Please

I to Vice your like to President conference over hand the ahead. speaker go Investor Shawn, would Relations. now of please today, Shawn Milne.

Shawn Milne

joining and morning Xometry's earnings thank for Good us you QX on XXXX call.

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

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

related will long-term make expected forward-looking future During to today's statements future strategy, the of including results, prospects. call, growth, business, our we performance statements, overall financial and

Such actual statements statements identified are results. such to which terms These risks expect, to them as uncertainties, and believe, may be subject could may. from intend, materially and cause by differ

those Form press available Securities year later market for concerning that ended filings risks the before June in will our earnings XXth, US XXXX, ended with XXst, XX-Q today and filed the distributed including XX-K quarter our opened Commission, in today. our the release and be Form and XXXX, for the December Exchange our is Information

forward-looking or We as new caution place undue any undertake no result reliance a to changes events duty in or you our information, to update forward-looking future statements of obligation on not and statements expectations.

to a as non-GAAP measures and internally financial evaluate today's like call, and non-GAAP these use decision-making we to point purposes on also out that period-to-period and for We'd We will report results. GAAP means operating comparisons. financial

with in of performance a or measures substitute are GAAP. financial measures as presented accordance in superior financial to addition not and Non-GAAP prepared to US

today's today which our earnings will non-GAAP our also posted on measures, Investors are our investor at section replay press of on be presentation, reconciliation release refer please the of of A these to investors.zoometry.com. see website website. the call of available both our in distributed To

the call Randy. to like over With that, to I'd turn

Randy Altschuler

QX, call. QX we revenue and for from of and history, Shawn. gross you Thanks QX had us Xometry's earnings highs profit Good for highest thank XXXX year. previous joining in In this our morning, everyone, our the beating

we continue QX $X.X by reducing operating leverage adjusted in addition, or In our million. EBITDA to QX loss improve from XX% our

XX% Let's revenue marketplace accounts marketplace growth start buyers growth existing underpinnings revenue in in including the The revenue. include stronger-than-expected with We as this growth well of QX. XX% XX% of year-over-year year-over-year contributing grew year-over-year revenue. in active XX% as

started strong has marketplace continued QX with in momentum growth.

expect marketplace We of growth XXXX. in to XX% XX%

including to excellent largest strength we're addition orders, our multiyear large history. in In order seeing the order in growth, production

in gross XX% XX% We year-over-year, high profit is basis an Marketplace all-time XXX points and strong grew by QX. growth from profit. profit. basis Next gross including increase an were of by XXX and gross year-over-year marketplace margins points gross XX.X%

and XX year. points an expect gross services high first XX.X%, of gross In from all-time half than basis margins an were by and basis half points marketplace Supplier increase in the higher services XXXX, those to QX. we the supplier be both second of XXX the the margins of

our adjusted Finally is EBITDA.

our reducing QX, we've that from and noted This to making or million. EBITDA profits adjusted improve QX our been and of revenue $X.X fixed in result leverage, I cuts a our earlier, in XX% continued operating by higher As costs. gross we loss is

in office is Rallo QX, leverage operating in the Jim approximately by CFO, our our and reduction in we X% As with in force workforce space. will reduced had Combined we further his our remarks, discuss QX, improving. consolidated our

shifted fixed we costs we continue to our gross and to to see with commensurate leverage revenue reduce In QX, further and be operating of more expenses as their expect profit.

components industries electric devices critical rockets to to parts to vehicles Xometry's through learning, from to machine satellites our Using medical customers empowering build AI robotics. XX,XXX-plus and in next-generation and

the solutions reach internet cloud-based of medium-sized around suite and thousands small marketplace manufacturers world. in tail of digital and United of our to the the enabling finally States long important, Equally are and the

lead-times generate to significantly marketplace, fill market we and their prices supply our small buyers and their capacity algorithms strengthen instant can their the time profitability. Xometry buyers AI-powered our chains. work and optimize and match between Likewise, their suppliers. boost that reduce medium-sized growth help and For and manufacturers with helps

Over technology past significant the development our and rapidly selective infrastructure few the we've globally. product and we've been made network years, growing and in At time, acquisitions. marketplace investments expanded our same

as for improve work both to as for We tools efficiency. and now and offer suppliers software provide well buyers to customers digitize and decision-making information increase

of years global to market $X footprint total trillion, come. and our grow a to position rapidly increasingly expect to With we addressable continue and market-leading many for

XX% In across robotics. year-over-year revenue demand marketplace year-over-year manufacturing, increased growth. verticals, strong energy, was and $XXX XX% QX, million, $XX.X saw We many QX aerospace, including to revenue general million.

the conversion across increasing was Recent have beginning injection processes expanding fruits pipeline and efforts these people and injection Growth of sharpened offering strong in all technology, in reap rates processes, business. we are particular, with key of molding. investments molding and to our

leverage Supplier services XX% as a gross million, In services and on year-over-year in QX. Supplier basis of US the forward. reduced we move exited our $X.X part $XX.X margin segment, supply enhances year-over-year. This million revenue supplier our which going Services was down improves May, revenue operating by

this the platform. remained the supplier advertising expanding services and later Jim services, impact the on will detail stable Within revenue move are in we outline marketing our in ecosystem core more call. of the

increased growth marketplace gross Gross gross quarter-over-quarter. by XX% XX% XX% $XX.X in profit. driven profit million, QX to marketplace increased profit year-over-year

our at is marketplace allowing interaction. learn heart AI the operations, from every our of to

that complicated other quotes XD expansive universe accurate an and ever learning multipart as well design instant as machine and important unique and of providing finishes, parts, processes, insight Our particularly for algorithms gives to into variables are critical jobs. us data

AI for XX,XXX. provide to both of Additionally, base, marketplace Active suppliers. we our growth. increased XX% gross the supplier are our continue These critical match our rapidly to expand enabling our buyers optimal the buyers profit year-over-year and to drivers

the and in US both growth, internationally. buyer active strong delivering are We

organic in we've part Since our our growth marketing in strong QX, increased efficiency search. of because

investments profitability balancing against goals. advertising We our are

grew ecosystem, self-serve in paying year-over-year and QX basis growth approximately suppliers customers. build Thomas impacted business as XXX suppliers Exiting X,XXX points. active in the we tools growth XXXX to to continue by including materials X% Net of year-over-year of selling out the Active paying marketing

revenue International business. growth At are in year-over-year our the driven XX% we by we entirely same UK. revenue grew to in in time, invest driven markets and European European almost our the growth Turkish existing grew International early the platforms. XX% strong progress China quarter-over-quarter, making continue in by and

our made on In XXXX. QX, five-point in we early strategic that significant outlined progress we plan

and adjusted EBITDA delivered in our losses. growth we again sequential gross marketplace a result, As strong margins, revenue, marketplace reduced

of For revenue, expect a operating remain we marketplace to strong in growth, mode and second XXXX, profit half deliver leverage. improving the gross and growth healthy marketplace

our spend accounts plan. One, on top far Xometry's of five-point sales XXX on XXX a Here's marketplace our exceeds brief revenue. we which these marketplace represented accounts, The US efforts XXXX strategic refocused on of collective approximately update current XX% manufacturing revenue.

support In early XXXX, redirected salespeople to customer them. we and

accounts higher that significantly Given deeper the come, the these them. in pushing wider grow to have the we spend potential and and into spend with to we years are

us business their their to spend. increasingly engaging production manage are to and Accounts support tail

transactions these is While from the are spend efforts the cycle longer, for these significant. sales potential

collaborate Center with In late Xometry's engineers projects professionals the and platform manufacturing Xometry marketplace. procurement Team QX, Center. functionality on organization chain we teams manage Team within and allows of the to supply of expanded an

and marketplace focus status managing providing individual provides to Team by of parts and and to Center supply other efficiency Team across organization. enables customers tools projects. the on a order a chain real-time moves the buyers Xometry Center individual from suite productivity that teams increase data

coming customers. enterprise In positive is we some in and functionality early QX, top early began premium testing large XXX expect enable The across accounts to with we beta our this months. feedback

cross-selling engagement the with our Center to opportunity Team Xometry, top and improve For provides accounts.

joined most of has Senior enterprise Enterprise as ZoomInfo. Weston President Vice Xometry and has at Head sales Sales. of recently Norris Enterprise experience, as strong sales Strategic our West the

several Additionally, sector. West Salesforce, including in manufacturing he sales years force leading where technology, spent practice in the the enterprise large business out the industrial built at

further our menu. Two, in made QX, we expanding progress marketplace

our we of finishes, increasingly As destination. the to materials can one-stop as and are able serve offer customers, we number their grow we processes,

In The and sheet and assemblies of the get also CNC, production instant buyers analyzing expanded instantly on to engine Xometry Xometry's QX, include multipart inserts parts with instant multipart processes. allow sheet further lead-times expanded quoting cut sheet metal assembly we features assemblies, and to AI-powered enhanced while pricing cutting accelerating quoting inserts, standard work.

a This rubber service include composite expansion also to a materials waterjet can sheet of cutting using technologies. cutting options variety wide delivers cutting sheet laser the and metal, expanded cut materials. of array Xometry latest and

expand to delivered continue internationally. with aggressively Europe brand we across increasing strong growth We awareness. Three,

UK orders and at markets ramping solid launched Additionally, the recently are pace customers in and Turkey. in a

quoting for instant parts Asia, Xometry AI-powered real-time sole XXXX.com, engine Alibaba instant provider BXB QX, technology marketplace. XXXX's the with custom XXXX.com. our in Xometry's wholesale quoting and pricing collaboration on launched lead times is Group of on In

Product XX further networks app. North into development languages leveraged the as and core technology Xometry's well efforts customer XXXX embed xometry.eu, continue the Xometry provide we different mobile and to America. marketplaces to journey, Through xometry.asia, the of Asia have as used widely including Europe xometry.uk, localized technology in suppliers with across

and Industrial footprint enhanced both we products, and us Four, Team Work and Engine our and Center, to including scale effectively. enabling of platforms the with QX, continued in increasing adoption drive buyers introduced suppliers new Buying to cost Center

system we QX, that suppliers, experience. production In the and enhance work our to notification improved rolled operating is digital workflows center, foundation support manufacturers. we the SaaS-like out For for custom for continue

and accounting job In QX, we will continue to including integrations. center scheduling capabilities, work and expand

the focusing also on We accomplish effort their are the to overall tasks. reducing for experience required suppliers, improving daily

that with into of work doing ordered we in Xometry better are partners investing parts. For of status features Xometry the insight the on behalf marketplace, provide

Industrial the buyers, we Buying to continue For Engine. improve

thomasnet.com. The quote and what digitizes the into process, Buying off taking request time-consuming once Engine Industrial heart cumbersome for was integrating of platform and it the

send IBE it supplier communicate transact buyers In QX, Suppliers IBE. and quotes suppliers using experience, IBE the further the of the streamlined even buyers and now for Thomas on transact buyer to easier regardless discovered can using with Net. we whether and making

thomasnet.com one-stop While tightly yet the can be our integrate with a we increase our shop. transaction share revenue their of as more revenue fees from engine, significant engine the we industrial in instant not buying stream, wallet quoting are and buyer

and advertising to products on advertising self-serve for modernize start it to easier suppliers their journey. platform, expand continue options making the We thomasnet.com

to a with XXXX, our thomasnet.com. bundled of on subscription pay-for-performance further self-serve investments In expanded to packages move offerings advertising we we're QX, video. half making include the In second model advertising to

relevancy In and the continue of improve addition, results. search we match to quality

higher-margin engagement, industrial our use buying This growth expect upgrade of will as engine. drive buyer the to for enhancing boost help services we the higher a our of As opportunity of level search well see capability, supplier search we monetization. as

executive with [Indiscernible] marketplaces, Supplier In experience Services sales HomeAdvisor joined QX, spent Cass Cassandra years Cass with leadership an roles. new sales online extensive HomeAdvisor. the of and XX VP key us accomplished Vacasa sales. held is including at and as

our efficiency by continuing our leverage. and across from Five, QX, we reduced and QX, are in growth In marketplace profit organization. we operating EBITDA loss increase adjusted gross by expenses driven $X.X to million improved reduce strong

previously supplies mentioned, we in supplier the which and services expenses. May, I the gross operating As exited improve will in business lower US margin

our office also space and additional in QX. workforce in consolidated an We made targeted reduction

fixed provide later finding are Jim these more including of savings, the changes EBITDA will positive call. progress become costs to throughout We Xometry help the to continue in year our QX adjusted to context in additional XXXX.

gains. to custom analytics growth we remain as benefit of two-sided vertical solutions leading in The share drive and in momentum to to provider from software, and strong global accelerate our expect information, inevitable. QX, to market shift. shift continuing mode marketplace digital is continue technology products to is and positioned marketing, our massive from Xometry, a this manufacturing well as we For

CEO future the As never and about company. Co-Founder optimistic of been more of our I've Xometry, the

facto custom We executing and confident one for the on vision The giant, is manufacturing. we de winners. our becoming steadily opportunity are the of be will methodically we of are and rails digital

With that, results closer outlook. call and turn financial Jim at I'll the look a business second CFO, quarter Rallo, for over our to

Jim Rallo

morning Randy good Thanks and everyone.

XX% for marketplace Xometry. growth. record As QX by revenue a strong gross increased was quarter year-over-year QX driven to Randy and $XXX million, revenue profit mentioned,

changes On marketplace reflecting to supplier margin discontinuation we materials the selling the of partners, In quarter. QX we million them accordingly, offer discontinued gross QX the revenue the significantly $XX.X $XX.X were going services staffing revenue call, the of of and indicated was sale that in proactively service. was low of this million, in our supplies our will altogether tools result we for sale profitability better QX, to made Xometry. not and which manufacturing given

offset by in basis. growth XX% of active buyers, increased on strong average revenue a revenue year-over-year driven buyer lower by marketplace a the QX year-over-year partly number per

X,XXX QX year-over-year growth revenue growth buyers. active to QX. Our buyers active XX% buyer and active reported XX,XXX than with in increased stronger order much were new

efficiency QX, that our stickiness In increasing of spend the accounts and XX%, leads existing transparency of from was account to over the revenue underscoring percentage and time. model business

increase an of account joins platform, platform we spend at account end and aim accounts spending number over year-over-year. XX% time. XX last engagement our up The reached the the relationship on XX,XXX the and QX, our Once of expand activities the from least months X,XXX of at to with

in services QX. which supplier declined approximately middle $X.X million. revenue in of We sale the Supplier supplies QX, by the negatively XX% US year-over-year the services discontinued impacted in revenue

expand plan products Services the Marketing XXXX Our our core modernize in it. thomasnet.com and of marketing self-serve advertising the strategic is Part for platform stable to Thomas on revenue remained QX.

to to them, of our number leverage XXXX grow X,XXX spend. QX, paying sales efforts X% reduce additional the marketing and active an of the basis, with operating suppliers increase these expect sales a providing of for trailing The year-over-year. digital number costs was of customers associated XX-month marketing We and acquiring on

of services, XXX marketing understand will points. approximately is this by basis help believe services of segment exit the one purchased supplies supplier its during financial suppliers or year-over-year the the supplier track performance. We last or better who have more business and XX suppliers services, of paying to KPI number how our investors the services operate we digital services growth including months. data The impacted supplies Active

million, XX% year-over-year. QX was was of marketplace XX.X%, an margin XX.X%. up gross $XX.X year-over-year points increase points quarter-over-quarter. XXX Total QX for was basis margin basis gross profit profit XXX gross and

gross QX marketplace year-over-year. profit increased XX%

services. profit growth. services gross We margin and are Marketing XX.X%, an the gross high services advertising by growing for high Thomas all-time marketplace gross supplier and of focused driving margin financial dollar driven QX on of was

lower margin due which carried supplies, Supplier basis the a points gross XXX increased services discontinuation of quarter-over-quarter significantly gross of sale to the margin.

operating on to the in with previously increased investments a QX reduction top to actions driven in QX on continued business public X% operating Moving operating and In in expenses we further non-GAAP X% to of million, year-over-year announced $XX.X total workforce reduce QX. costs. QX, costs, XX% company took expenses by the

actions Additionally, half of space, path will lowering by the we $X.X aid on lease in our consolidated basis. our further profitability million expense to office office annual in second an These XXXX.

enterprise fixed with these operating investments We our teams. expenses, are important our sales marketing balancing and Within sales our in cost international is reductions and largest component.

and sales sales and compensation were excluding and expenses In as Non-GAAP in QX, marketing expenses non-GAAP $XX.X million million, to XXXX. $XX marketing QX charge. stock-based XX% compared and restructuring amortization increased

to hiring basis expand strategy. increase to salespeople our and expenses growth driven of non-GAAP This network of additional by was and on sales a land-and-expand year-over-year continued our investment suppliers and in support buyers in strong marketing

year-over-year. increasing brand We delivered marketing strong declined in X% active QX, spend approximately growth buyers leveraging advertising efficient as spend awareness in new and

million $X.X $X.X in of of with XXXX. as QX X.X% we million office QX QX. excludes revenue in abandonment X.X% adjusted was consolidated of EBITDA loss costs adjusted EBITDA or space compared lease QX revenue

workforce for reduction path Additionally, costs These excludes million EBITDA are of operating focus with improve QX moves $X.X of adjusted million and restructuring part profitability. the and the leverage of $X.X to exit strategic our to associated supplies. in

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

year-over-year to in international We which invest in revenue business XX% our continue grew QX.

of the cash $XXX.X and end million. equivalents quarter, cash were and At second securities the marketable

on moving guidance. Now, to

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

revenue remain marketplace expect strong QX growth in XXXX. We to

the supplies exit to QX by impact revenue $X approximately expect million. XXXX of We

supplies Year-over-year is growth, be excluding expected XX%. to XX% to

higher supplier to of improve and sales the We the discontinuation QX margins FinTech services expect Thomas supplies. Services revenue in gross reflecting quarter-over-quarter, the and of Marketing margin

marketplace profit, to significant be in million adjusted range In to EBITDA a loss improvement lower QX, by to QX in we expenses, XX% million, measures to revenue, cost. quarter-over-quarter. particularly and loss fixed growth of the tighten be improving expect driven quarter-over-quarter, gross adjusted EBITDA operating marketplace XX% further sequential $X.X will $X.X

$X compensation expect QX, exclude will approximately we In which to to from be million, we stock-based adjusted expense $X EBITDA. million

marketplace growth As gross robust and Randy XXXX. expect we profit growth mentioned, in

year revenue for XX% We full growth expect marketplace of the XXXX. XX% to

XXXX the on impact not will impact are US We $XXX million approximately dollars. to profit this $XXX supplies We $X of adjusting revenue guidance in million to by to to revenue $XXX of reflect million $XXX million sale year have million to from a basis. discontinuation do material gross on expect the a full which the

expect adjusted XXXX. in We to QX basis on an profitable be EBITDA

significantly on XXXX, leverage in gross expect revenue driven by services higher operating both and margins of basis. marketplace improved growth supplier half the year-over-year on marketplace a and We second profit strong

We semi-fixed At our the into leverage same related and the as for and leverage we stronger reduced profit, or setting XXXX to time, operating public fixed expect stage directly gross have generating significant not over revenue expenses operating costs, such company XXXX. through costs.

With open questions? for please that, you up operator, call the can

Operator

you. Thank

question-and-answer will [Operator now the We session. Instructions] conduct

our first comes And Goldman Eric question from Sachs. from Sheridan

Eric Sheridan

much could. you Maybe questions. Thank two, taking I so my for if

or First sort environment it had seeing, out, the that from out? want you whether characterize just to what's initiatives broadly you of you happening broader growth away in from of macro of the you're environment laid how would industry some initiatives growth the the verticals. by away you certain some Curious laid geographies characterize since

or growth the should you're of either of about so around strategy what to in excited back Thanks we about inflecting per terms the how buyer? that coming much. strategy of spend timeline buyer laid most and out, then implementation And be implementation thinking

Randy Altschuler

and question. the Yes, good for thanks morning

continuing. we off QX and talked is strength manufacturing QX, we're And is molding. So, particularly seeing across as index as industries about and our a as start to about, marketplace and across in strong momentum technology well, we talked

as And the and a offer we're on we've breadth increasing been part plan, of investments five-point making, our as you of we platform. can know, what

So, seeing QX growing strong some strong and baking in while I improvement momentum a only macro, the in also can't we're start. to in not we're any speak our off is numbers, but not overall QX,

Shawn Milne

couple add XX% launched know, markets I growth in talked early pleased up were we Eric, with early a Shawn. Turkey, too, just international. lot Yes. with there. And and we're pleased Very the would a you about the new as We in And and Europe. the in it's UK year-over-year. of year ramp and we

So, see to we growth to international expect in strong continue.

Randy Altschuler

And then question in also, the your about offer our are bring in that we question we're the our [indiscernible] things the buyer offered what One Eric, I We -- your about -- we know of marketplace. talked was spend customers. call earlier things second Xometry broader can expanding per

engineers organizations our to Likewise, number well. and we go able number users as to with expand on initiative, talked also but procurement we've those to and on within successfully XXX we're the about this new working coming our teams, initiative product we'll deeper expand got that that as organizations work months. professionals historically able largest that with piloting accounts be of in only of and will not with large us expect been much more to we new think this the teams help We customers, of projects, Xometry has focused a with new individuals,

Eric Sheridan

you. Thank

Operator

William Brian from Blair? Blair. comes Our William William from Drab next Brian. Brian from question ahead -- from Go

Randy Altschuler

hear can't we you. Brian,

Shawn Milne

next the try operator? we don’t question Why

Randy Altschuler

back in please. question, go the next we question, next queue. can please. the Brian just to We'll Operator, Put try

Operator

from from question Rohan next comes Citi. Our Joshi

Rohan Joshi

just trends, I buyers. the of active buyer a had ask active the taking to for buyer, new two. then Thanks guys. questions wanted Maybe, follow-up the about Great. I to growth specifically the active for Randy,

helpful. to about understand ramp just be expansion And on us insights buyers? the of seeing accounts, revenues past, the just I any given existing seen as we've would of of cohorts, talk from but newer the in market, active cetera, trends et new the growth in Are the buyers you XX% coming to similar

XXXX do just on seen since quarter-to-quarter marketplace? Thank margins, that expect that XX%-plus obviously, gross really we've And then XQ. for the mid great But same we margins it's you. since guidance still for gross expand

Shawn Milne

the we our to one call Hey see active I Rohan, out take buyers. were of in strong we just I'll new thing investments. marketing continue did balancing growth. some The we buyer mean this growth quarter, very

year-over-year. We're And our actually as script, is organic strong spend search. more in the our growth efficient. But Jim advertising in marketing said X% becoming seeing was the down

quarter healthy very front. the So our a across this But again, were we balancing active buyer ad bit. spend

Randy Altschuler

Rohan, the deck slide -- about been Yes. new to just our about very think We've accounts talk look about reading analysis. we're where in cohorts, you new we've talking that, to And excited the that I and the a at the we you're add on board. cohort got when

cohorts one been every as And year our has year you've the seen from revenue growing. new

us. So, that's always very exciting for

our In terms We gross QX. for from had marketplace, to XX.X% gross of we up huge went margins, a highest. margins jump

there's in XX% change of that expect the so end year our where by no -- the we And to XX%. guidance next year

Jim Rallo

year Yes, second of of year margins the than higher half first marketplace Rohan, when well the as margins, be I both as now half and applied services. look the would the say seller will that at you the

seller exited So, you'll we the business. supplies services jump see up as margin

have services. exit, that better margin. seller that carried margin a much So obviously in lower a again, business Would we'll

Rohan Joshi

guys. you Thank Great.

Randy Altschuler

Thanks Rohan.

Operator

from Our next Jones Nick Securities. JMP comes question from

Nick Jones

much Good continue you the from, processes processes offerings, of breadth number not much increase you or are offerings the that for Why not in a hearing to Great. increasing today? breadth processes spend? are morning. site. kind the site I And of buyers of on that looking on guess, how is the How factor or the of manufacturing

Randy Altschuler

procurement or goes underneath. As spend have this those -- teams and of new also multiple with not we working have kinds only some of into professionals of procurement professionals, functionality continue the engineers we

in So, they're manufacturing multiple buying categories.

can Xometry of that's and very makes we of more their it are one-stop them. increasing expand procurement shop numbers who attractive ability people to what to our easier And can more and So, offer them. we're if for can spend we to the of of that, trying be seeing menu more offer consolidate

our that that that customers, and noticing to some from you we what and ways they us now. built as they're menu getting looking then but feedback on adding that our -- talk seeing we're tell of into what our based are So, not is we're about right various for UI, we're have

then so it marketplace. And actively feedback our get we're to we adding then that and then

Jim Rallo

add I we our that suppliers that, really do of Thomas too, strong the the to to ability to would just be that have in that continues network. because

haven't a we've to network. Xometry lot So, got historically that we capabilities suppliers that had of bring network in Thomas

So, again, just taking advantage of some of the synergies from that acquisition.

Randy Altschuler

Yes. you And and us we also, AI, then our add, also that use very just to us said technology offer well. when our scale can of look helps we at helps as extensible what

Nick Jones

think Great. I mean, Maybe over I from here, I about to I that. offering? is increasing how guess, we much I time? kind mean it? how there chop wood from here breadth of mean, can mean, the double a follow-up the you should on of

Randy Altschuler

new to There's technologies number the of offer. we're processes looking amount can we ways a work. and of that at tremendous accelerate And

helpful base So, Jim -- leveraging supplier the the on we're done they've data us their Net to Thomas and from as the it's menu. as be customers transactions alluded getting going we're with it's tremendous for expanding to, that

lots to come. So,

Nick Jones

Great. Thank you.

Operator

William question Brian from Drab comes Blair. next our from And

Brian Drab

All calls I'm morning. phone like a different at on trying Good once. three right. I'm now. conference

speed which with received you that talk the last are over work. quarters being guess, orders base? of found bit the the you've what little doesn't Can in a phone about supplier So, a couple terms learned by I of

acceptance about improves maybe learned supplier capacity the begins that to macro the and across you've speed a and what impacts happens macro base? bit tighten the to how little what And when

Shawn Milne

change growth. said we're in order revenue to hey Yes, Jim talked I Randy Shawn. Brian, about, are drive mean you no mean stronger faster growth, as than really as order growth. our prepared our mean, much his I buyer I -- it's trying know, and really we consistent. remarks, Obviously, as growth

ARPU And at our it's macro. and look stable. we strong plan forth execute happening you in if -- what's business matter drive to quarter-over-quarter, We're put really order no growth the our seeing in the

that's we But now. of under So, to where kind is right our it see environment. plan different execute

we're what that's So, working on.

Brian Drab

this versus and on, the talked early well business business the domestically you international regarding quarter-on-quarter scale? growth, lines? about quarter. catching in Or Can company all in are profitable actually any showed like international comment some XX% with it's that for profitability is terms at really us you international of comment more those information doing the US we than And -- Okay. piece EBITDA again the along you about the in up is and at

Jim Rallo

take I'll Brian, that, Yes, Jim. it's

think, I are certainly US, not look, in in point this profitable the EBITDA at So, time. we adjusted

As anticipate right dynamics good in that some look, will And we there's QX. happen on we said, now. going

about think you If it.

So, we a did obviously that. our have consolidation of We real discussed estate.

much. We smaller things. quarter. last in the those And get the very even bit we RIF also discussed really a of of A not the little things, benefit those benefit in last but quarter,

year. on So, the half second the that's going through carry of to

the said be both to I half in expect marketplace and on our margins earlier, the as again, second of then we stronger services. year And seller

be think out, we've as growth by So, both and to the the from continued get the the well second increased in year, half able QX. should that there we cost-saving as margin the international initiatives I laid of and US

Brian Drab

ask and opportunity of Okay. explored couple us? you've that calls. work -- any I there's for said you around one I can more can made But more? you I slip between Again, And done comment you software a I of learn that about or opportunity, mention as being did kind think sizing have Alibaba. that hear some And you

opportunity, incredible does no potentially this and how like just huge have but me. I this nebulous neither any size to idea feels just called It investor that's

you kind what expectations that can XXXX for from potentially of anything So, like revenue see business? and

Randy Altschuler

Randy And Yes. again. it's Brian,

call about our are integration of the integration in the we're One with so in on mobile together things. with that very their working the on important, people and mobile app. two is put mobile we're So app. continuing expand Alibaba remarks, into talked A lot to Alibaba, actively particularly our using to is we it

But we robust second driven have that's growth not we're the to in strong terms growth this that, the there. relationship. be we right now of Europe year. international It's seeing to continue expect the by Alibaba the coming from half we're expect In to continued really going in -- that and year, baking of

think -- I it's than of but segment how see we'll don't point right at yet. because know play that early Europe, international other potential, our great this can to but strong still still out. It's too we we're super now, really So, give remains for a a us readout

Brian Drab

Okay. Thanks All much. right. very

Operator

next our RBC. William from from Hedberg question -- Matt And comes from

Matt Hedberg

near talking Randy, top questions. Hey I great. taking large customer strengthened Thanks my about call for you sort the customer. of the think or large started out

In -- of think wanted of largest maybe larger do you I And fact, about of maybe some how some more little that, production one one there. pipeline I your customers? bit the of drill had think you to on these runs. in a specifics kind

Randy Altschuler

mentioned we customer And from a commitment on our Yes. the in -- I my multiyear in history. just our remarks, that had largest

definitely we're can more saw larger So, seeing be those multiple we that orders, years and more and example. as in

a So does that nice pipeline. provide

ability products, engineers changes some of that, in also teams got technology we've our we've and procure to making with products, we professionals. think talked recognition that our this in of I been of about integrate

production imagine, still around we're and you as imagine, can those you as in projects. revolve beta-testing can often, those but there, And often

Sometimes those times. be for of extended to periods going are

strength those tools be And in then the for And more production side those used when typically talk multiple about -- on we can typically and molding. those finally, injection years. be are can

a on period for provides of longer time nice certainly outlook that us. a So,

Matt Hedberg

be changes sounds additional any how guys. it. a that good enterprise Weston, with it for sort impacting And Any background just sort of do -- would like then on him of mean, you perhaps I you or or helpful? any sales details about think Got bringing

Randy Altschuler

more categories. and organizations involving in We're in and to spend to with working the go more question about we're earlier a Yes, back committed call. multiple

So, folks enterprise it's an who background or come deep enterprise from that. whether in software, others experience have

those so And that Wes effort great we think be that, for for we're investing a developing and in efforts. will our leader

Matt Hedberg

Thanks Randy.

Operator

today's concludes Thank This call. participating. you for conference

may You disconnect. now

Xometry (XMTR) 9 Aug 232023 Q2 Earnings call transcript