XMTR - Earnings call 4 2023

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Operator

Hello, and thank you for standing by. Welcome to Xometry Q4 and Full Year 2023 Earnings Conference Call. I would now like to hand the conference over to your speaker, Shawn Milne.

You may begin.

Shawn Milne

Good morning, and thank you for joining us on Xometry's Q4 and Full Year 2023 Earnings Call.

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

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

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

Randolph Altschuler

gross our improved profit revenue. QX, full driven XX% growth grew Shawn. We had QX by margin manufacturing. AI-powered gross year-over-year basis year by year-over-year QX in Thanks, the we ongoing marketplace and QX and from Marketplace points Marketplace buyer In highest accelerating driven $XXX XXX active to XX% growth in in beating XX% revenue call. U.S. an order XXXX we contraction growth year-over-year. delivered marketplace and despite stronger Overall, increased gross marketplace. previous revenue XXXX, Xometry's morning, everyone, history, XXXX. Good earnings of year-over-year for our in profit highs XX% million, in

growth, We our profitability from by internationally. and driven XX% million, top QX our to gaining to adjusted as gross and offset significant partly share. On leverage, investments U.S. $XX.X goals. million, are QX operating year-over-year strong market by we continue $X.X our balance EBITDA in core by EBITDA QX profit by we significant revenue loss growth in improved a marketplace basis, marketplace adjusted On of leverage reducing improved

as provide technology made selected and to offer product grown for we now well customers At years, decision-making net few infrastructure our as work tools is and year-over-year development of significant in same acquisitions. networks marketplace buyers networks period, and in over further and Over growing have Active suppliers software active expanded globally, join buyers improve information and the both our to increased suppliers. and less the moat. strengthening we digitize our rapidly X% XXXX, increase strong past X,XXX. competitive suppliers buyers XXXX, XX% time, We we XX,XXX for investments as to our platform. spent advertising. added XXXX our over demand rapidly efficiency. In new even We the on expanded significantly an we and to XX% increase There

work to Marketplace over parts buyers cutting processes. for feedback adoption, made positive, processes, products. QX, significantly and strong progress including increased destination. large a revamped growth accounts investment product and development our expanded our in new of as Teamspace Xometry enabling high XXX Teamspace all least several XXXX, XX% in drove teams molding we including in additions from to advertising year-over-year buyers expanded offering. rapid into XX-month our technology, team Teamspace, work, in spend foundational quarterly strategy. and We expanded enterprise remains on our increasingly customers as sales to inserts, sheet and top our We of Thomas assemblies in a launch. the at an X,XXX $XX,XXX injection with an serve customers We including in to QX, platform menu, us quick-turn our one-stop Marketplace include a Our to individual assemblies platform. After certifications, saw the net production and We multipart moves of integrated new grew with Marketplace significant on pilot created such focus important instant focus and materials, procurement progress Xometry products and with including early finishes managing use. quoting across QX. In The QX, teams all-time last the customers X,XXX. on services added since In we successful

QX, we SOLIDWORKS We the Turkey. accelerating launched in with expand growth. plug-ins software U.K. internationally. XXXX In to customers ended aggressively We continue for CAD and EU,

we However, January particularly declined had than number the large orders was significantly. as anticipated, of much weaker

at and that be prudent, in be QX. While assumes that we than outlook to year, we Since February, providing slower a beginning Since marketplace similar revenue early we're so of trends to healthy, and are are Marketplace trend improved still from XX% for in year-over-year map. to full equates our in underlying This metrics growth onwards. we profitability least to growth the continue year. and year Marketplace want QX going QX to are on we road EBITDA as January QX in the a expect remainder adjusted execute will the

Marketplace and to We network will, well engagement; services long-term enhancing goals. In first, second, in expenses deeper five, technology margin tightly of operating these and and include; investments us the four, operating our internationally; growing and expanding as suppliers; driving supplier of make enterprise achieve course, help third, our control growth as buyers XXXX, active strategic menu; solutions. growth expanding

XXXX, We further growth year-over-year, even expect margins to net advertising drive profitability buyer operating focus profitability as goals. QX, growth higher strong. initiatives we In expect these ads. expect to balanced on we investments there improve remain against time. and In and byuer grew over our active we to quarter-over-quarter QX, on In active XX% be efficiency buyers to

our to efforts in enterprise continue invest sales We XXXX. in

they Over complex a help with grow companies several customers. we Fortune months, manage our expanded partner for supply force the progress and past fragmented this as to XXX sales to making and enterprise with first look We're our chains. technology service

of will existing networks engaged including marketplaces we Through AI-powered different new auto the functionality technology new quoting of with markets Marketplace xometry.eu, push We working and with XXXX, suppliers Xometry to as expand with menu, Xometry's languages, XX international Google well engine. In versus instant will partnership new to core to North we deployment xometry.uk continue and together our models localized deeper America. improve are xometry.asia, leveraged AI. into Europe and Asia our Verdicts quoting Marketplace accelerate in deeply entering and as Xometry's geographies. have provide across Google

advertising the services, including Finally, enhancing we platform. are supplier modernizing Thomas

easier journey on and it making start increasing for are an to of advertising Thomasnet. focused suppliers We adoption their

digital for we enhance For work the system center, our suppliers, to operating continue manufacturers.

the millions on accomplish improving the with required to market buyers. suppliers, experience of a a is for disrupting focusing We overall massive reducing Xometry addressable tasks. daily technology company their are effort

expand and other we Capitalizing to many can expect manufacturing. custom trends, years more of which the are in to industries, applications these so has buyers. breadth inevitable we we on and happened the the robust is digital, serving our many As for and AI in offer, thereafter. The more of what in XXXX continue growth increase we shift

by We proprietary expand upon buyers moat networks our increasing enlarging suppliers pricing lake, our data our continue our competitive our of and improving growing and to footprint. matching and algorithms, global

and Relations. extensive Investor to excellence that, scale Chief on help significant and announced in marketplaces, help previously I Before drive expanding operating call capitalize successfully call and offering, Yelp March our and Rolla. leadership margin our and want handing advertising Vice was our now us internationally. over to Jim, will be him Jim at across operational of well. Xometry Finance to was Senior I'll Jim help we executed wish growth President business, the Financial where X. James public will Today, manufacturing. digitizing effective has experience turn initial that long-term Milne new including targets. With position he Officer, brings achieve will and our He our in James and James the us to search over him thank

James Rallo

start with Randy, suppliers like AI-powered group has a phenomenal a connecting and been leading I'd such everyone. for the privilege dedicated buyers to by run. and a the to Xometry morning, X-year industry. manufacturing work out team good a thanking It in Thanks, building entire Marketplace,

is it know good as for set the continued in on Xometry sector. manufacturing well I up digitizing continues Xometry, hands leave I execute growth to As as as

adjusted revenue QX mentioned, gross significant Randy and in a improvement on As for was basis. a quarter year-over-year profit Xometry, record driving EBITDA

our XXX year-over-year of LTM with accounts historical one QX, spend to In included number immaterial include of XX% $XXX net accounts year revenue with for QX spend $X Marketplace Europe impacted to XX% materials. QX of versus driven with certain We in increased review corrections, approximately marketing balance XX% the tools our year-over-year the suppliers strong X% strong and year-over-year. year-over-year, impact XX% XX-month growth adjusted year-over-year against of targets. The accelerated paying results, Supplier addition from QX and previously active growth. exit tables revenue million as number increased materials to Marketplace QX. buyers. we growth was increased by at We business profitability last number to buyer basis, our increased have and year-over-year. QX of per active XXXX we in tools statements results Services Before buyers. the active cash by U.S. trailing at QX year-over-year. on year revenue XXXX strong by in active XX% increased Supplier net million, significantly on no driven of year-over-year issued active the $XXX of revenue XX-month Supplier in QX full reflecting immaterial and on least buyers revenue and platform million, quick QX. was QX. release of Marketplace full discontinued XX,XXX a in a declined Services for new XXXX financial $XX and QX The XXXX which QX additions of QX QX I materials XX,XXX a sales is discontinuation XX presentation. immaterial million X% was X,XXX. reduced in corrections. in revenue of tools decrease corrections Marketplace XX% QX to year-over-year U.S. the late of the and the note X,XXX earnings to spend sale of revenue X,XXX the XX,XXX a Services the There increased in and these number in negatively financials, earnings QX, in least revenue

one a gross XX of services number impact the gross million, is paying exit profit tools was and during the growing of gross marketing suppliers Marketplace business, of of of year-over-year. suppliers carried dollar driving focused Supplier for the roughly X,XXX increased more margin and XX.X%, basis materials gross high was points by basis gross gross Services gross year-over-year. XX.X%, Services Marketing growth. our XXX margin $XX.X of purchased an supplier financial Advertising year-over-year paying significant or profit margin QX on services. services margin increase Marketplace Active Thomas we to active who are the year-over-year the XX% sales increased including which points year-over-year, XX.X%. margin. digital margin the flat marketplace QX the services of lower gross Supplier have tools the of suppliers or Excluding was up due of last months. QX QX for gross XX% is profit and with financial discontinuation dollars and driven materials,

sales in our on QX compared increased marketing and Moving marketing QX, on is expand in increase the sales to year-over-year operating our QX total by QX strategy. largest as in $XX operating sales marketing and of to to hiring million. was million X% to costs. $XX.X salespeople and operating driven and non-GAAP to our expenses, X% In expenses expenses support The additional component. growth non-GAAP basis $XX.X Within a expenses year-over-year non-GAAP land million 'XX. increased

we XX.X% I QX adjusted revenue As XXXX. previously, year-over-year of XX% revenue decreased and or $X.X EBITDA X.X% loss balance mentioned was QX QX growth compared with as profitability adjusted advertising of declined million loss goals. million $XX.X reflecting QX as and our business. in cost The in services Advertising in gross EBITDA revenue growth Marketing year-over-year, savings profitability [Technical initiatives and as Thomas strong profit efficiency. well in operating and improving Difficulty] spend

$X.X and U.S. was was cash and operating and QX, $XXX.X million At of quarter, our segment marketable and and to $XXX respectively. respectively. million, guidance. $XX.X for revenue reporting. In segments the cash Turning end loss operating were securities equivalents international QX million and the moving our segments million, Segment million Now on $X.X from international from to fourth U.S.

We range of to representing in revenue year-over-year sale of QX of XX% XX% million, expect materials. $XXX discontinuation the and and excluding XXXX XX% to XX%, the of tools to the million growth $XXX

Marketplace of range be XX% to year-over-year. XX% QX the in growth expect We to

Marketplace QX number Randy a As revenue was large mentioned, slower of driven started orders. lower January, as in softer off growth by

adjusted be down we services and a of QX compared adjusted leverage supplier of materials will loss exit to approximately XXXX, basis profitability expect stock-based compensation expense year-over-year in $X QX, $X improving driven in we expect QX, investments of on a offset by be year-over-year 'XX. In we be further Marketplace supplier range million international million, in the from to business to million operating by $X in expect primarily due $XX.X enterprise. to EBITDA million, $X which services to million of partly loss exclude We and tools XX% and approximately the May in to EBITDA. to In

Marketplace year-over-year of driven growth the discontinuation For year-over-year, be XXXX, of supplier expect and and expect least to services we noncore of materials, the down and the services. XX% wind XX% of down approximately sales at by tools

mentioned, our QX the year. outlook persists Randy the throughout trend Marketplace As assumes

EBITDA in profitable XXXX. expect adjusted We be to QX

partly For fiscal for and year XXXX, please that, international investments. With by we leverage, can expect improved operator, up enterprise operating questions. you offset call open growth the

Operator

Ron Citi. Josey question from the first comes Our line Instructions] [Operator of with

Unknown Analyst

Best for Ron. of Jim, Jake is your all This for you, on And thank luck in all your endeavors. future partnership,

Teamspace. on question First

traction that's that us could now tell the winning adoption? and slightly fully a the decline on about what than enterprises in those know think being helpful. and orders? there then How and So to you're about more growth expected, integrated, in share larger in second, you more larger larger strength but your January And that macro, just you is that mentioned you contributing super the you seeing with XQ could be what softer is driving any I would color enterprises. weaker

Randolph Altschuler

Jake, it's Randy.

have QX. we been rolled since That's up added We X,XXX from in our launch. in we XXX Teamspace, teams as on QX. indicated, teams first, over have out So that

we're of team level. good viral within new So growth user that. an role overall engagement enterprise and Teamspace our happy our we're teams growth on platform about and the We're seeing plays seeing on organizations, important engagement in engagement the really

So is deeper that. as for Teamspace more into and enterprises a approach great we're selling more

we bigger from we it's larger those saw, In -- had And in about from of QX January talked and companies. orders particularly how we terms what really really it's we versus in kind QX. and of [indiscernible] partly January to drop

the in budget that holding beginning were people of year. the think I

an that's January. have we in seen We but February, what improvement in saw

Operator

from of Sachs. Sheridan comes Our Goldman with the Eric next question line

Eric Sheridan

you're on seeing. X-parter a buyer trend the Maybe active

growth about to beyond? XX, And cohorts longer-term active little love growth would how a should 'XX for the some as of to compared the around look bit confidence informing color XX ago? I on more buyers thinking the buyers First, active and funnel we today how get maybe XX, months the in of be

Randolph Altschuler

Eric, thank you.

first, we Slide analysis. on our the that X, So investor look actually at cohort updated you provided deck we if

we how And cohorts. actually so a of active new has our Eric, to revenue from behaving, record was -- question, your been about buyers got XXXX new of cohorts amount

So million. $XX over

we from and was of X million year a $XX in nice step our saw So that that 'XX up $XX cohorts. million

on our in And year cohorts being So platform. the and of our year -- our one. can contributing see every in then on the jump also, more as new had cohorts as more -- you 'XX nice up year inside an the that are revenue just a second cohorts that,

We continue expect buyers Marketplace. buyers. be -- active of of buyers in there that believe this market to huge we robust And millions a in to has number new the our

we continued that's robust levers that's Eric, years, the adoption. over that, we're to as see continuing confident growth that one So -- we go can we're about in, think our the and of

Shawn Milne

And Yes. Shawn. it's Eric,

on Just we advertising little spend to -- a we kind in piggyback talked XX%. that, of bit about QX did by cut

see reflected add. And so net you in can the that

We we also morning in investments. net adds normal resumed that we about quarter-over-quarter the as more improve to expect talked this marketing

Randolph Altschuler

Yes.

from metrics I the we change an particularly it underlying as think don't in metrics, talked new buyers. see about active we any relates to underlying before, adding

Eric Sheridan

forward, and of to I'll that thanks add best also luck Jim going the Jim.

Operator

of line question Blair. with from Drab comes Next Brian the William

Brian Drab

bit we're in pretty has better over understand first down. from And years, being and I revenue quarter, to the increased a January bit now step then December at and fourth a I end last and February. more quarter of looking was you a looking just and what significant to XX% wanted to X little talk saw try towards the -- the model, at your into year little the what

And pick what point? those at large you're you us, orders? seeing expect some do orders you that So to up just any and give in February? by And large color mean can what you January

Randolph Altschuler

taken in think were Brian, we I -- hadn't we mean by again, the Yes. January back I that. was expected drop

are And a to we so dollar us pretty but saw a orders I us, strong big want amount, large give and to January. in the important drop

that to We're the point, have year. as we guide that, prudent up We for a the than also to this the trying had months weaker-than-expected mean, January. be year. just in beyond. want think we at I picked about still February be for said full But X in and we're but QX we less prudent

Shawn Milne

just on Brian, let It's up follow Shawn. me that.

XX% that that again, assuming is for least we're improve. run So full at of not rate Marketplace -- year, the growth does the

So and that for the the to of taking here, we've current a outlook we're trends anchored prudent business.

Brian Drab

be pickup to a saw just a you're not to And bit clear, January, but of you're you that little February in pickup. saying relative incorporating

You're not assuming year pickup the continues through no? that the or

Randolph Altschuler

to in reach prudent, just this to going I we X to months anchoring it. February, in than us, were up January We that prudent. ourselves I we're just be want again, XX%. we're And a year. were But where keep mean, think yes. to less picked unexpected for we was things be point, that's but want at

Brian Drab

little harder positions you... with of a and building in And clear into it's you with large on up for just of this terms and to dig get you're a these kind operations their handle customers because to these maybe integrated quarters. territory new and deeper its large can orders the how not Is forecasting getting on gaining

Randolph Altschuler

going continue and people held budget the in look look stronger in at trends, our last those No. held historical it's -- one rolling but our for Brian, were us. comp. it's is back. mean I the enhance mean about were in this if trend. It's This and just It quarter. normal at back in was And where it as we will more, that. I we enlarge people on enterprise we not January. year, It's really, QX January. or about it's again, happens that to month related for January, the efforts as But that was -- back not is that people this not to we --

James Rallo

healthy. metrics mention The efforts. our did healthy. we call is marketing Marketplace all remaining -- the remain We've that the the resumed top on Brian funnel of the

active buyers be up We expect quarter-over-quarter. to

So their larger of healthy. spend. remains We pause the saw marketplace customers some

would rate full the up, year. frees that expecting that current so we're for we've run And if trend right but change, that now,

Randolph Altschuler

prudent. being just We're

Brian Drab

Yes. expected seeing in start slowly people I of don't participate the than such the lot a -- that as you spending to I more think end are year. customers markets

So out Can that's not surprise. that I pushed the just you profitability ask a huge target.

marketing? for for that's lower expectation us? just combination So of can combined more Or a that you maybe one increased revenue articulate with time

Randolph Altschuler

to tight to to by related really the mean, Brian, plan continue I be going the revenue. to on still margins. We're It's revenue. improve spend. still we're But driven going to make be We investments. our we'll it's --

Shawn Milne

anchored at least Brian, XX% comment Marketplace we've Randy's based growth. on to there,

about Marketplace We also expanding margin gross 'XX. talked in

dollar So very profit you're see going to growth. Marketplace gross healthy

Brian Drab

profit will Yes. grow revenue. our faster I gross than mean our

Operator

from Nick JMP. comes next Our with question the Jones line of Citizens

Nicholas Jones

to like just Like it the in think to going per to throughout down. buyer of to the of to Marketplace but converge guess Marketplace active expectation active post some volatility active step and Do of probably I it? be active right of guide? growth volatile revenue, it it Is like buyers on active way revenue about XQ there's think I buyers And Marketplace of kind year? kind was Marketplace kind kind XQ? you kind inputs that per revenue the will the now the the revenue rate, sounds customer buyer per expect the like and sounds stabilize in growth that Marketplace implied revenue to same that's

Randolph Altschuler

Yes.

great So Yes. question.

to revenue QX. -- actually larger lower will -- we going because orders, these anticipating in -- of to seeing buyer going So we're are per is the be you be

that out robust punky we of number year. the have the because asset growth sort rest that -- and -- And of through January. being We've got that tough prudent so still those in had think we've we buyers, pushed just but we'll

we're per January, the active basis. baking terms growth But this in smart, what full buyer into we're expect that number point, tough active a year being revenue just on still at buyers. of robust So we're to going in see

Nicholas Jones

business. the the Marketplace And gross kind of then following just profit margins up in on on

XX% prior Is target target that the think maybe XX%. kind 'XX the expectations? half of new of was On still by good? kind second revenue I to of

Randolph Altschuler

in margins. The of saw we are change Yes. that's drop We margins, a sort January, changed don't of outlook large Again, thing growth Supplier the strong. see those is that than year, got months at be to point, X orders anchoring our be just we're the right less that's in now, revenue we impacted here. to of at Service that per And our in any But where prudent margins we're prudent. Marketplace that XX%. in buyer. here terms only in We're thinking our ourselves least to

Operator

Our Carpenter from of the next comes question line Cory with JPMorgan.

Cory Carpenter

have I X.

to update And is Google XQ capabilities how is on Just the in middle? February, it was for levels could you then maybe get kind -- where of of secondly, just you kind wanted how still can an somewhere that out roll back XXXX? in in ask us to quickly it expect or and those you from out give and that Cloud quoting to instant partnership the softer,

Randolph Altschuler

Yes.

said stronger January. more we been said, than is February we We specific. as haven't So

leave that will And with them. there's on at doing that. lot We've some terms things work exciting there. got of just Google, I a So in we're -- of going it then hard

the I those models. think we before target of we'll a announced still on would for it we're when be we see partnership, months said that. number

on of yet. exact but target, us nailed new certainly, don't releasing to of deploy specific I That's to an the still date and yet, enabling quoting equally instant So we important, date even out down processes more even haven't want those throw expectation faster. additional but

Cory Carpenter

quick follow-up. And a just

think, And other down, stuff so, that I'm in potentially besides if You I what some winding Services tools-materials. curious, correct? just that is? Supplier mentioned Is

Randolph Altschuler

the not Supplier Services it's Thomas in significant. But The profitable It's aren't just year driven core. this minor. supplies just just the it's our significant all. historic at by offered some that It's of services not -- that drop business. -- and really drop It's discontinuation forecasted is ancillary

Operator

next Hedberg comes question Matt the RBC. from with line of Our

Matthew Hedberg

Randy, maybe expectations? in speaking, that that there it's be though. as Marketplace the around the some just guys there a revenue? assumptions volatility are things could some things are of done into follow-up, reduce to done can just maybe philosophically kind Are 'XX and a of baking Teamspace scale that what are And of factor you be

Randolph Altschuler

Yes.

we basis, rise shutter will of on you're an terms provide scale, So some to volatility. as and to efforts that continue look, in against right, ourselves we'll that of gain I think as embed enterprise volatility, our provide the some

So supply lot. further further into grow. the think I as chain, again, embed and And help continue deeper the that a into should to we just -- us we ourselves

In a of and we terms into about impact, Again, buyers, and of investments. buyers, both making and of effort. expect a But in active new its it's think have pushing to I Teamspace the the growth We've broader part part it perspective. effort robust we year from think this sales enterprise as active we our enterprise. are technology been those broader

Matthew Hedberg

to though, could line about help on the revenue weakness. for time And wondering free flow? you're some breakeven? sense you free lagging the then for here. bit think means any then And EBITDA, us I Jim, a pushing out of some what but for I'm flow it's EBITDA cash targets cash getting that little a know of for

James Rallo

Yes.

after think, get positive. we obviously come adjusted EBITDA to cash to I the free look, flow going is So

that's that to on little to out gave with. I going begin a We further. put So think a that never date really

So follow look, a I after to would or shortly positive, quarter X going probably be to expect we're that. that but after EBITDA that's adjusted

Operator

Palm of Greg from Craig-Hallum. question with Our line next the comes

Greg Palm

talked to I implied does buyer just number you clear, back a into versus want in does does some throughout in buyer year? assume the for moderation that revenue of that guide, lower a it terms outlook is take revenue per revenue that per to a QX is about, per not and overall? that pricing buyer, the go make lower just implied in Or of orders then I want we're solely to active sure buyers larger the due for And full broader QX? in or metric year, improvement implied flat sort stable the that account of to

Randolph Altschuler

year. So than we're are trying here. We're in through baking improvement. are guidance, -- clear, prudent not we point the with at our be less X an this to be Again, not to we months

and that We expectation. are just so prudent we being set to want here,

improvement make it in So that. doesn't an

in prices, accounts, those which said It is February, of in of broader had orders, but be, more not January. because we've of January better added, trade number is a We're of But we've seeing I have tell et for larger where think, is were growing it accounts which not also not the us. We number a we you record and would particularly larger $XX,XXX wanted about been XXX additions in cetera. an it is certainly than a I record down. We impact. orders, deflationary had to our was spend -- QX. XXX a really -- accounts. We that

So bigger are of those a those becoming revenue, and are our percentage accounts significant.

about [indiscernible]. to And term, held you we're going that. So with budgets their growth excited and when back January, help on people But are in that that's profitability. long

Greg Palm

Yes.

or if your to worse. 'XX, Okay. outlook numbers. QX I revenue And QX then as is I just could mean, twice compare almost levels flat same 'XX you're basically the guiding EBITDA loss, QX but

advertising or you a you tie that the higher lot that? can help majority that most it OpEx within or maybe that is maybe of out. think bridge more so on And entirely of sort Or the to side? when of due it about Is

Shawn Milne

there's our team. to and QX One, on the mean on the back go made sales I line. is it -- are call. a where about look we've in talked we investments We you expense QX, to couple you that If operating in really

then is And continue the public payroll QX late to companies, in is and costs the material saw then people a strong invest We should add efforts. which team That like of step-up a like into growth the towards thing, things we to strong third now. of couple us to years. the to And and very bit think in benefits of that. somewhat I fuel all continue business continue to year from internationally. see next really given and that which QX the growth right of is size that, of to we the terms Greg, secondly, just taxes enterprise want fuel for We internationally. end be We

Operator

of Our next Madhukar the question comes from UBS. line with Kunal

Unknown Analyst

questions. have Kunal for I This a from of UBS. is Jason couple on

of XXXX for terms I us you guidance, added, terms least leveraging customer unpack could assuming of what growth verticals help guys Marketplace revenue? guidance Marketplace understand And Also, follow-up. you guys in you one, please you XXXX first have the in revenue your the could much comment your the at are And a outlook XX% growth Thomasnet? how of is pricing? from then new recently on and So

Shawn Milne

It's Shawn, buyer active growth talked our we XXXX. I'll that. very take to Randy healthy remain in expect about,

into buyer our improve the from We number marketing expect to resumed investments. active QX the as add we net QX of

that's we in should after a talked week rate for you your per the the impact is we're lower strong revenue about does of And active So there. kind as which of what good year, then expect that January, buyers. buyer, growth rest in baking

think XX% And that that's So blocks for I that that anchor are we -- your those building of talked the follow-up question? about. sort was

Unknown Analyst

XXXX How much Thomasnet? of leveraging revenue from verticals, is new the

Shawn Milne

I menu. we lot have Look, the of marketplace to Yes. initiatives place a mean, in expand

of with We, Thomas. new Google. to trying add As from about, we're you categories partnership the course, new have talked continuing

later Randy with we As buyer, stand -- now, is February. that year. trends through for forecast per January in the categories into the efforts based year the as revenue but expect early today, Those we're work we deployment our expand in the deep here on to the of are new accelerate we to Google drive saw mentioned, and and

Unknown Analyst

question. second the For

regarding if softer that curious large orders, us was could comment drove decline the verticals help your I January which in specific orders? you understand on So

Shawn Milne

a It specific It more -- was the or talked place was of at. and where not to in about in an that there orders -- felt that's on their bake held today Randy but larger they've improvement, and widespread. Yes. as wasn't who think more they're we prudent any we vertical was it back typically customers we're budgets, really geography was larger pause,

Operator

showing concludes today's conference questions no the participation. you I'm that queue. further Ladies call. Thank for and your in gentlemen,

may disconnect. now You

Xometry (XMTR) 29 Feb 242023 Q4 Earnings call transcript