XMTR - Earnings call transcript Q3 2024

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Operator

Good day, and thank you for standing by. Welcome to the Xometry Q3 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Shawn Milne, VP of Investor Relations.

Shawn Milne

Good morning, and thank you for joining us on Xometry's Q3 2024 Earnings Call.

Altschuler, Financial Executive Officer. Randy Miln, and are Chief our me our Officer; Chief James Joining

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

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

Randolph Altschuler

everyone, QX across morning, Good Shawn. and Xometry call. joining a earnings QX many Thanks, fronts. for XXXX was for you our strong quarter thank

record And multitrillion-dollar revenue, record record profitable, we profit gross gross which to to global industry. mission Our delivered manufacturing another custom digitize slightly the marketplace our AI-powered milestone margin. EBITDA expect and important marketplace be is in in adjusted QX,

value and across delivering expanded we increasingly In for are great strategic in and and market. chains, progress reliability deepening this within further cumbersome in driving $X our by Xometry scale operating continues gain secular We resiliency to expect continued we our as AI, the growth significant strong initiatives. and globally growth of leverage is accounts, QX our buyer QX, embedded on share beyond, supply driven We inefficient customer convenience and and realize buyers buyers. manufacturing value, and Powered marketplace to penetration as suppliers digitizing market in by our base. relationships key massive platform. processes made focused and billion our their

and reduces and QX, the of at of leveraging the supplier improve threefold surpassed Similarly, their minimal XXXX. technology Xometry for the burden since example, source as of This access for demand broader their move beginning technology Xometry's capacity, suppliers In platform cost. nearly X,XXX, profitability network. use their manufacturing suppliers largest a digitally and printing, monetize active to machining growing the their companies global For risk consumer products. is marketplace one maintaining global XD assembly

Our states to changing X network our customer to quickly enabling continents, react demands. spans all XX and marketplace

competitive with expands Our differentiator further and providing moat, key buyers a resilient supplier and supply is network our geographic chain flexibility. solutions

of increased a a injection sheet network released additive we marketplace the a In marketplace marketplace casting, engineering, tube gross profit urethane XX% network $XX.X increasing with and CNC, million, We capabilities, and quarter-over-quarter. million. robotics. record year-over-year, by revenue aerospace, record suppliers. end year-over-year QX, our bending QX to increasing molding, gross business. XX% broad including by robust year-over-year of XX% strong AI-powered and manufacturing including expanding year-over-year metal, many X% increased markets, and XX% QX consumer Our has cutting. across $XXX to saw recently range active growth and strength a marketplace grew our QX delivered driven profit revenue driven

on marketplace approximately market our Strong strong we EBITDA As gains, improvement from XX.X% we We we the better gross gross pricing an expanded initiatives. our learning order to profit drove AI $XXX,XXX. marketplace adjusted to model. basis loss growth delivered X growth to our fuels and share dollar in and marketplace scale. growth a In in to past our to years, drive leverage at revenue these are points international model which making profit margin matching, scale marketplace our marketplace In XX.X%. XX% record QX AI-driven in machine margin while record drive U.S. of focused the XXX gross and sustained year-over-year investments XX.X%, our data, power turn gross gets low underscoring expanded of a growth.

increased buyers with suppliers. network expanding of our active X,XXX. additions year-over-year XX% and net First, buyers active In over QX, of

and low. awareness millions of We expect buyers but to remain growth our active still there buyer brand is growing, as healthy Xometry's are potential

tooling-based we which, a of bending quality to over U.S. our serve of also reach cutting, key other X,XXX I increase processes breadth quoting customers. certifications network, anticipated tube production QX. needs our and with suppliers instant areas supplier expanded in in In larger of to base including growing our We're our and depth the support new mentioned supplier continue categories, in QX, tube as growth. earlier, focus to new the supplier adding the reached on We with

Second, expanding the menu. marketplace

goal that, provide primary we many accomplish materials manufacturing needs. customers' processes Our we to doing To QX, We our instant possible. which destination that, the as with driven progress help be to quoting continued laser a in differentiator for manufacturing tube cutting and these for need and as is and launched is quoting, chain our In processes. Vertex. by Google our tube partnership instant AI investments made large Next-Gen just and for supply bending

these for seeing including early strategic interest customer. a production are We customer aerospace from orders processes,

Third, deeper driving engagement. enterprise

our as QX, customers at are XX-month biggest to our X,XXX. of strong accounts In progress in world. made the with XX% last number of of $XX,XXX we Some increased marketplace land with largest the least spend expand efforts the companies year-over-year and

features EU opportunity terrific significantly growth manufacturing deliver of complex processes. strengthen accelerate site enable These annual of to procurement. supply Xometry's make technology accounts vehicles chain and our ERPs. Xometry continues unmanned a with fruit higher adoption that to APAC. solutions French and the procurement This including approaching and Xometry's an by prototype our including suppliers modernize approach Advertising and foundational of in XX% It Asia many choosing our marketplaces international recent in with bearing CNC across international robotics, we into English customers' integrating have happen, small orders. EU, collaboration America. design professionals Asia, their rate. assembly, well global an different XX% we in services these While to marketplaces. QX, with as and in of and core QX, Xometry $XXX Thomas marketplace operating specializing by expanded believe number solutions. the managers growing in a grew enhancing marketplace enterprise production Xometry Xometry In strong revenue leveraged marketplace with Xometry's its as revenue, XX XX% product platform. already collaborate company a of marketplace of Xometry's technology to Through Xometry. company leveraged and production the This revenue, project million networks and of been X-figure solutions. engineers, In costs Teamspace languages entire and launch is important growth consumer is years, there's In total move strong To in to order from to for over reduce directly other North internationally. with over their Technology quarters. of XD manufacturing first and to is Fourth, we a supplier has tools order QX, expand, now Currently, will invest Asia consistent to to to Europe. Europe localized work the provide U.K. and a streamlining Xometry Fifth, we've include a year-over-year, two-pronged can continued Australia APAC tools. of online in suite represent volume run addition manage XX% driven

margin We margin are the the Advertising and both opportunities plus growth By for opportunity. experience focused advertisers, enhance and users the contribution will restoring engagement. on XX% platform providing strong underlying given improving and for Thomas growth technology, we gross

of goals QX, self-serve is In platform, One platform. capabilities X% on we advertiser on advertising penetration listed is out of increasing XXX,XXX Thomas the drive roughly to on today which top the approximately Thomas. our suppliers the enhanced

for and leverage With advertising to and to, in enable to these marketplace the instantly and custom leveraging realize customers' aid to are us technology Modernizing between audiences. profitable be menu. all campaigns our marketplace the to sizes expanding businesses manufacturing and network Thomas to our our platform enable services limited can Thomas' one-stop services of our supplier targeted but grow businesses. the define reach further its destination include, These not efforts needs enhanced synergies supplier tools, will custom

fragmented the and marketplace outlook many suppliers. full and least we year XX%. digital. these launch marketplace can jump-started believe the XXXX, our cutting at in of deliver Driven range in the shift growth XX% for our XXXX, For ahead given opportunity to by of expect the tube XX% at example, market with We drive growth large XX% the of to we prior initiatives bending tube initiatives, processes Thomas secular to least growth of

of the proud collective to our we addition, expect XXXX. overall of that global efforts in of In growth I'm XXXX revenue exceed team.

digitize and significant continued making Our execution the we're to growth strong chains. demonstrates supply strides

suppliers the suppliers expansion. strong place platform, Our buyers growth extensible The buyers and fuel technology our to lake margin and momentum data in combination expanding and continue will Xometry. rapidly demonstrates networks trust and of growing of

a our now more to QX review for Our over competitive outlook. detailed of moat turn and call I'll business expanding James is the day. each

James Miln

Thanks, Randy, and morning, everyone. good

additions QX a increased mentioned, QX by revenue driven was Randy $XXX across supplier many revenue record at growth. services net and highest marketplace number QX highest to marketplace XX,XXX last year-over-year XX% million, net with strong our The addition and with new was XX% year-over-year marketplace Xometry XX-month quarter was share. our buyer X,XXX to fronts. us. accounts, with continue growth buyers revenue accounts increased active million new for As to year-over-year accounts active was their increased year. this increased of least revenue with platform capture flat a quarter-over-quarter increased revenue on QX QX XX% larger grew XX% year-over-year by as market accounts XX year-over-year, of and growth as marketplace accounts year. this X% accelerated $XX,XXX million. spend spend our net to driven QX buyers, international of active strong $XX.X we X,XXX execution, per net $XXX larger significant our with

of QX, Marketing We Advertising and end markets. wind lesser continue year-over-year a Thomas to and revenue grow down the in services many driven Services. accounts share declined by primarily wallet Supplier across with to extent, XX% services noncore

X% marketplace with leader on QX improving up gross gross trailing a the Services for As underscores gross marketplace dollars year-over-year. XXX optimizes with learning QX XX-month expansion AI-powered profit the in of QX, economic solutions. on and record with network. margin QX a an points industrial are gross The an paying million, XX% more for platform, X,XXX expanding gross sourcing, in year-over-year. a of year-over-year increase our XX.X%. supplier of basis, which which matching pricing machine suppliers marketplace was success supplier data increased margin active Randy year-over-year. mentioned, engagement and model, a basis profit number segment remains margin we of XX% Supplier our marketing XX.X%, was selection QX on decrease improves $XX.X was digital focused of

growth our on marketplace for gross line focus a and expansion. record focused and Marketing top gross QX profit XX.X%, higher margin driven margin are dollar We gross services the by gross was services. growth driving increasing on supplier Advertising margin through the Thomas combination of

increased QX revenue QX XX% well $XX.X Moving on to costs. growth. expenses operating operating million, to non-GAAP total year-over-year below

across was than of sales across operating X% third of QX balance Marketplace revenue, We and are year-over-year the driving of leverage QX year-over-year QX basis quarter-over-quarter, and improved was this the or resource operating and X.X% X.X% XX and we revenue, securities marketplace XX% year-over-year, profitability. spend and $XXX less strong expenses. our million rigor capital strong and a X% is loss driven efficiencies. million and applying loss of down quarter, marketable discipline to or and $X.X resulted teams. with cash which $X.X in points growth adjusted allocation of growing QX In other expenses in XXXX. marketing EBITDA were XXXX, revenue revenue non-GAAP as cash and increased end equivalents loss adjusted X.X% compared operating million. in by profit gross At growth advertising EBITDA

growth. strong spending. profit margin in conversion focused adjusted remain demonstrates year-over-year. asset-light capital have free the cash on We EBITDA are We we QX AI-powered X XX% plus and prior EBITDA to gross In given XXXX, our growth first deliver years, and adjusted working focused flow discipline our on and investing of efficiency expansion In our limited incremental improving year-over-year ability gross our margin months we margin. initiatives. capital delivered while incremental model XX% operating delivered marketplace of the expense

plus billion towards of continued expect EBITDA scale $X leverage. we adjusted we incremental As revenue, XX%

large investing operating market low driving and opportunity penetration we the with balance will future to rates, our Given continue leverage. in

to moving guidance. on Now

$XXX quarter, fourth range million revenue the of we $XXX the million. For in expect to

marketplace year-over-year. be XX% We growth QX expect to to XX% approximately

was reminder, up marketplace a comparison, XX% growth As year-over-year. XXXX QX strong a

QX marketplace marketplace profit expect to than We grow gross faster revenue.

to expect adjusted of million improving slightly initiatives, QX profitable in EBITDA year-over-year. from of $X.X supplier services QX continuing growth loss while In we to expect be invest approximately QX, be down XX% We XXXX. our a to in

adjusted to million an approximately payroll $X including compensation approximate or slightly we X% million We stock-based rate. to profitability approximately are revenue. reaching of revenue previous tracking ahead taxes, million at run In expenses, of $XXX EBITDA our expect target of be QX, $X related

growth the to range full our least we year prior For in XX% XXXX, the of at deliver of outlook expect marketplace ahead of to XX%. XX%,

drive with As growth marketplace expansion. opportunity, to at given least that and our initiatives wallet to Randy international we mentioned, expand strategic believe continue further large can accounts fragmented XX% in XXXX, market initiatives the growth share

gross marketplace grow expect We profit to revenue. faster than

growth revenue exceed in overall expect we addition, in to XXXX In XXXX. that

Lastly, the expect the XXXX. adjusted full positive we EBITDA for year

to open With helping chains around up Finally, for digitize our I'd like and to suppliers Their please strengthen is you thank manufacturing buyers worldwide. our the can and Xometry dedication operator, supply questions? us call world. that, colleagues the

Operator

[Operator Citizens Instructions] Jones Our first question comes from Nick from JMP Securities.

Nicholas Jones

to would I the driving I in spend are buyer, have around guess, it elaborate first, on or buyers? what clarity Any And can expectations more of then you to per be inputs additional growth speak 'XX Is key in a more higher 'XX? growth follow-up. kind versus helpful.

James Miln

seeing projected this James. XXXX we're the delivering it's XX%. with growth with really Nick, We're now performance marketplace pleased XX% year to that in at

growing network, making the continuing to and this performance initiatives, our in the across at menu, team of year, across and progress look it's buyer marketplace international that by develop we driven enterprise. the As great all execution really supplier

towards growth in look to at help those buyer. being buyers XXXX, themes playing revenue those I least the us And per and both year drive able role in we initiatives grow we that ahead. as think same So XX% can see a

Randolph Altschuler

is Nick, Randy. this

to key these now. emphasize, while these making investments Just in initiatives a for also been we've

them. from So the them we're dividends increasing out, pay seeing

the in we're continue including overall And on the we we've platform. the so and as said, as Thomas Advertising higher based modernizing making, expect in been the 'XX supplier in year we in that to growth services investments result revenue

Nicholas Jones

around And follow-up into had the that leads services. I supplier question

would expect indicate some year, maybe start investments to growth like the more going that sounds meaningfully? Any to on flip out we helpful. are and that see maybe specifically it of getting services advertising color next Does self-serve to So on rolled should like that? things be supplier

James Miln

James it's yes, Nick, again.

we're of foundations So the the supplier on model working Marketing improving services there. well Advertising of Thomas

is getting into to as projected initiatives plays a that flatten business still we quarter-over-quarter very that out looking are for Q-over-Q about we think team at and margin but into that highly And you have level 'XX that see QX, growth here the stabilize in gross the I to QX, as driving year-over-year basis back really as the that move XXXX. really on decline profitable out.

Operator

with Ron question next Citibank. Our comes from Josey

Ronald Josey

think I the XX more that has quickly, places, X, gross cetera? on I rates have improved there in we active given going gross it's et conversion suppliers that year talked -- of benefits on continents, quoting wanted this really margin XX%-ish all just James, XQ in menu, getting margins number please. sort the you just And hear Randy, understand driven have overall one. of exiting expanding the I often specifically, your marketplace and how around That's the marketplace available of then, maybe wanted more to that to in now that past, business for thoughts about to states, point instant mark. overall how I now forward.

Randolph Altschuler

the can as you quarter X,XXX. with rates. accomplish of helping expanding conversion for our instantly Ron, of new a we quote, couple that's we're number had what XXXX, highest this We menu One talked over about of is adds net things. us

attracting helpful to as And and attracting our So second then those we're thing conversion, customers. as it the we're they're existing we also expand getting coming processes into platform. deeper more those and new buyers, as more going as buyers, we're is converting not our improving only is,

annual XX. LTM $XX,XXX, in QX, highest accounts the and the than for year. number added So was In you with that of this we saw of that's an spend pickup Again, basis. a really more nice on

accounts expanding those menu trends. then and than net helping to in more marks certainly So X is overall And to high the for year this contribute both adds XX,XXX.

James Miln

gross James, margin And on Ron, question. the

milestone continual AI and Randy of the That's over the network our here. gross That X,XXX we in mentioned that network. supplier our transactions, driver So XXXX. prediction more AI data have expanding on is in the passed an the was important price at supplier We remarks as X,XXX based prepared more main improvements more machine learning end expansion. the margin of accuracy, getting the quotes,

of drive economic So the the model helps combination those things really here.

up QX we're year-over-year. XX.X%. record Margin was with XXX a so the points pleased That's basis super And performance.

believe more we're the basis year So each great we here, relatively look that us. before, that up And It quarter-over-quarter. this the really be have was work but as network said making linear year. always won't XX And we approaching still flat, the we strides. data points target doing, the as towards end drives level supply as exit of XX% of we the the a of we quarter,

still long-term we we look here marketplace the term, that think As the XX% the about to is to right for XX% range believe long to margin.

Operator

question comes Blair. Drab with William from next Brian Our

Brian Drab

Can profitability little in the guess, to I I'm -- about business international the more when looks business? have I'm And quite you talk the on business do you fourth reach for timing toward be is given the to overall business And is have a be just if U.S. you international to scale. just visibility going getting you're profitable. like that that can it going slightly profitable quarter, bit and visibility the wondering business that curious,

James Miln

the on Randy it and can of Brian, international. I'll here some then kick off on maybe longer-term initiatives add

very really pleased the from Iâ€™m well. think, team XX%, growth QX. with are executing quarter, The up the I in accelerating

expand still and footprint in in deals, highlights our the that We talked languages. on in the We're we've international. continue some prepared as terms continue products, deals of about production good to with we to was in early the as talked there nice big France It Asia-Pac to improvements good out as remarks of to about call. well see roll

think it's I be investments drive an seeing profitability marketing of So sales think years. area few and I part to and return an I the be and And we're to a in continue we're I us, that doing it the growth smart about think of over operations well there. that we'll as and investment as next development. product for will our important great think in And

Randolph Altschuler

is this Brian, Randy.

things. said, Just just couple what to add a to of James

perspective. in We're end adding EMEA in talked we we script to about we've automation right growth about Europe now as larger orders. on tools think some Europe, been facilitate the but see also an international, from more back in that in and it's operations I technology launching particularly the there

that So Europe noted, investments us business. we of Europe. growth we've in been in these X-figure But our technology primarily as off in really first paying has in are got That Asia-Pac. terms helping grow deal

International really getting as think It's there. investing So been been you growth driving the the in about segment, Europe in profitability overall that's been Asia-Pac. the we've

help seeing there that and come get great Growth to there. to been overall as to profitability we're us just going on, beginning you that's described. Now has

to we that rather later. So to get milestone than hope sooner

Brian Drab

at everyone's decelerate? that years more that is long if Where And how operating but think, really environment, you something one impressive. Randy, to one up going quarter numbers. on is in a do then in start the do a active you're catch that like just looking does a going And do the great buyers the can number is buyers year? does And you in And if to and great buyers you but of down of few on is where environment from that little wondering, where of been putting tick go? you expectation that I'm for probably the start accelerate potentially some quarter and can. added improves? that think just Like number any X,XXX number to is to question I for law you maybe large bit, envision if this thinking time, to account you're XX,XXX for the to hasn't number have numbers buyers serve the comment still now? going now, keep these point not at I The up that quarter. by added I you that growth moment I'm the with maybe of

Randolph Altschuler

certainly there and proud to do while about talked of better. we've look, producing, continue we millions better love And the we're So of we're to there. are buyers results out

of to we do So opportunity lot there's a that. think

perspective grow the to been buyer buyers are from think different now One we that. from that We've of customers. more, particularly sales with companies strategy there's I a about talked when and could teams. are buyers. land expand coming our how embed our Those parts like larger of Teamspace ourselves even some the into our about investing larger a huge largest in and world couple count with with we've technology the where customers, So many, to things deeper our enterprise companies is many

so even for to proud of growth a them, to way there with us there's go again, our long And though capture we're larger and buyers customers. lots of those from

bending the Second, we we're menu, then will third, our tube broadening cutting, international our added continue also instant growth. attract as new for platform. pricing buyers And and that to to

within we're count. Europe, As we're Asia-Pac, will that expand to to also buyer that continuing in be getting additive traction as

Shawn Milne

just bit. kind on it's Shawn. And And double-click a little to of Brian, that

about talked the operating You environment.

advertising you So sorry, as can -- that at dropped the And delivered quarter. look deck, the basis record was to advertising as and adds X.X%. the a we see or percent well a points marketplace down you'll highest in year revenue this XX in controlled net spend the of

profitability in So many disciplined environment. we're millions this out at just the same there time are -- of there said times, growth as We for us. being very balancing Randy and buyers in

Operator

question next with comes Our Sheridan from Sachs. Eric Goldman

Eric Sheridan

I if X, could. Maybe

AI the the to comments to set back First, just platform going evolve. coming and is how on the product

the of little sort deeper pretty to some the see the incremental folks as broadening bit to little asked and rate you about but critical bit. a look you the margin a broadly not accelerating already growth AI areas think in go but time on couple a platform, gross tied know towards only maintaining we theme out of just just As want of investments guess 'XX, X a I frame. ahead, of I year for have to And possibly if that multiyear I

here build versus that to you ahead margins the we incremental or breakeven levels than about revenue in balancing base, here revenue different the continue at about or coming more the of from about variable you And increased ahead do do leverage it from how had additional that Is level adjusted of think for think formula past? we in slightly scale? target on guys are maybe of years? margins as model Now the investments we a what in recent how the thought EBITDA

Randolph Altschuler

portion AI James and of it. the to take elements I'll it the for hand over then financial of it

I to take -- is Xometry think has a couple from inception. so just central -- know, back, a you done as AI to there So step are investing what almost its

And so we've been algorithms sets data these networks investing many for building our our now. proprietary and years buyers suppliers and and of in

we've had point, at nicely. to just we're we public we just XXXX, QX in went of -- had XX.X% so people, even And since that very remind as gross we reported XX.X% margins, and growing

So of that. we're really proud

And there Google of X to invest next that talked you're Vertex going we've are continue think us with I to algorithms. dimensions different and about. year see beyond, partnership to that in those We've investment. AI that got

network. instantly to is existing to deeper going So processes. our go help one quoted customers buyers That's and us more also attract our launching new within

us. has it. that slices menu. There's manufacturing and market So adjustable constantly of to a for expanding This opportunities many, large lots different many is

to going there. new we're So processes add continually

this suppliers. for a smarter question both to our buyers goes and our your margins, about little also Second, pricing bit making is and sure our

but on So supplier we algorithms matching then right to as supplier figuring are a very market, supplier, to out the that And and particular get algorithms, ability quality have know convert find the is behavior sure right our structure the prices one making job. the has for better, inefficient buyers a their side, who this and the a understanding opaque of also our for the customer. just the in part also a understanding are best also the our better. both what to AI with we And delivery given cost optimal perspective, from order a from

as gain Xometry. get transaction we make we be a profitable that enhance those and gives the but to as more for happy, to to we opportunity data, matching also as those for algorithms, that So more suppliers better, know more both our suppliers

James Miln

this about of important profitability we're Eric, Xometry to very And getting EBITDA, slightly in for that first the breakeven up longer-term ahead. adjusted that on coming all, passing we're question, excited I think to milestone

at over Now last the delivering has progress as adjusted the marketplace look range. as made closely around XX% we EBITDA around well of incremental our gross the margin about on making. approximately we've investments working strong XX% X the had the And discipline business, trends on team been reflective Year-to-date OpEx we're we've with we've the this been the year, it's that on as and years. the

scaling think $X we to with as coming this through incremental we to about billion, ahead about XX% move As thinking framework revenue. EBITDA look from adjusted we the business, right here that think that's to a

about think overall continuing margin we driving important be as in it, platform. is margin-wise, on we and XX% sales the to technology right think ops spend that enabler and an on being variable efficiency And well to continued support. ad variable XX% gross our contribution make going in investments our about range As as the to

in back ahead. through years to detail at 'XX and that February to the the of next to guidance of we year for year. think we'll see the suppliers. success and you now milestone, It's be drive pass network technology-led as able us And we increasing scale be of marketplace, and differentiation that us more quarters go come I for with look this right in the exciting in buyers in I to for think we plan will but also terms and pace time as a continuing as global as

Operator

from next Our with question RBC. Swanson Matt is

Matthew Swanson

been and time on bit year, Maybe share that to wallet about ramping wanted use to goes? building a bit Teamspace. on the kind people and opportunity I Could product? seeing but it's maybe if the expanded next usage of talk little expanded how little just see you enough any you're adoption or how And early click specifically a

Randolph Altschuler

This is Randy.

what's suited about ordering So Teamspace with think that was associated customers logistically has assembly parts, an opportunities. very particularly assembly together it, customer. entire all an is track can When to product those for that the and parts larger who parts the into keep sure they or putting larger important making entire of multiple arriving, you those are customers have

or project really and been adoption product, based customers together enables seeing on Teamspace And work great we've so particular of that. a to

and created. continue teams more to We have more

these more this hey, to the and a orders/production. enhance think should is larger LTM to you use. high companies larger customers testament That its basis, it, who watermark add customers, grow XX year too, something and it prior had look for of of, the to adopting $XX,XXX help adding part this of of an success this like Teamspace, but than going We're just Teamspace if accounts more and continue these I growth spend a functionality want bring in on larger more within other at quarter. to we with us us

Shawn Milne

Matt, it's Shawn, too.

good about, talked quarter, very growth. Teamspace. continue we see see the passed Randy to As teams continue to X,XXX good viral this created on We growth through

happy improve forward. features with So map, again, we're to the and and that product, road have functionality a going we

Matthew Swanson

maybe Gen And has du jour on of bit one more every call little be the AI. topic to a

just from some weren't buyer we've the it within able expanding about a previously? to set maybe allow durations users Are standpoint generative your who new create of be that anything buyer models potential side AI like the designs the be of to or designs that faster whether these So talked platform. created, from seeing you

Randolph Altschuler

There We'll to invested talk continue We're AI. all looking isn't and about in it now. we're to certainly at angles. from invest anything want AI, in we

about it. we're we So we'll And have I news, think it. talk as deep into more

Operator

with Cory comes Our next JPMorgan. question Carpenter from

Cory Carpenter

this guide how last was sequentially. XQ change. X% Xometry, of impacted us growth remind James, trade a X% during you the administrative or quarters. you, policies. potential implies the Perhaps X% wanted to elections to today, I at the changes Randy, It how around last from could the X about just level the policy all, thinking And ask high potential impact marketplace tariffs you're with at if

hoping difference talk you the drivers and us of could about just the So seasonality. there of remind any perhaps

Randolph Altschuler

I'll the one. second question I'll take let James first handle the and

there's if agree it's strength thing States, in importance manufacturing both parties particularly American the the manufacturing. So that and the in on, one only of United here strengthening

we and really change change see any wins, prior elections of who seen haven't well. in as we don't So any regardless

to think, have marketplaces remember, be XX the I world. And a locations our there's around could marketplace big model. we if reshoring, push frankly, beneficial that these different for in

a a is public larger able Remember, manufacturers. of company. that access phenomenon. network periods of vast supply small company. I'd could of uncertainty, that too, instability thing, the like particularly global say them other to customers, a they a a fact manufacturers, we're Xometry, So going or customers, that in be the reliability certainty, they're traditional chain With for to be public get but small the is

So that becomes even more times. attractive difficult in

Shawn Milne

give and U.S. and can to flex we to the remember, either or the they them where is choose Cory, we up option too, choose can product where in the from. down it their shipping coming just to buyers the made have

well the the So flexibility is marketplace suited. of

Randolph Altschuler

couldn't that something that's And provide. individual any manufacturer

helpful. So can't that's But manufacturing very about it. parties talking both and loves everybody stop

James Miln

And Cory, is this James.

it's as I at year been But to our that a look on the uncertain focused an So performed in to highlighted and We're at continued XX just has does again, talk QX about readings the in trailing growth have was QX for we here. for think the We seeing with XX% increasing in pleased that year great performing know the months, how taking marketplace how team be the that highest accounts we very in broad-based we're adds execution soft. we've industrial all clearly environment. the QX, worth look initiatives the the This XX. quarter see. there XX%, XX,XXX at growing despite environment. I being the net and been

basis, That's I we XX% specifically, of at as line against would we expect a to we're 'XX QX, gross here, were a think XX%. that overall growing people XX% really with including growth prior in And with the that ago our pleased we're on profit be full operating marketplace. environment at as we a look least outlook the QX the year where we're in. year And we at So on look to growth. strong QX we're with year-over-year considering where tougher year, dollar there's with the a Remind for driving. comp we're

think calendar macro well at have as it into into marketplace great that when that of we've holiday mindful see And account for good we've here our I time trends as shared, the the But so to guidance. we on comes to we're 'XX. as this uncertain for expectations got And taken just the QX, 'XX. are of year, we've and

Operator

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

Greg Palm

X-parter one a the on this global on base. Maybe supplier

you're like grow sounds softer more manufacturing their to own this year. you adding capacity that's environment, you're think at all suppliers continued meaning it So current benefiting because this in from business. Do open they have

want suppliers continued release certifications with talks kind your customers. capabilities of or about maybe And your So larger some adding I of the serve thoughts to just the sustainability growth then there. around new different specifically to get of

So hoping on as a you that can little well. expand bit

Randolph Altschuler

I buyer the think awareness I opportunities excited both on to of is giant drive this think our as on we very but higher side. Xometry true growth, the And that's market. one and awareness, our about we're think supplier in

most them. So and as for With attracted aware that of are -- platform. giving AI also offer and that us, to jobs can access profitable the that have more best we're on more the wouldn't jobs they what they're we're are to them jobs suppliers give them our AI, And access hoping to to we before. using we're

is capabilities. really manufacturing we've Workcenter, finding of spot system. execution them So manufacturing free the which a Plus, sweet their given

have more no on actually like out macro. makes driving, that of and a the recognizing them. Xometry for network, the wouldn't So is I lean value they're I it And supplier soft opportunity and look suppliers that our think at I other sense more and would and it's growth there it's adopting at say that as you it. Xometry, recognizing they there's

Greg Palm

certifications? the guess, broader intended scope about and service just light of what asking offering. or Maybe I do. in to new that's what I'm And capabilities that's

Randolph Altschuler

absolutely. Yes,

that capabilities. like as we're bending, got trajectory of those tube help as cutting and to with well, expanding production So of we're more new our capabilities, processes has Thomasnet this been thousands to a you suppliers know, and to that. more adding Thomasnet's manufacturers. those adding thousands One as of tremendous of tube huge just and add thing we're certifications, tens more hundreds with

capabilities as bending is and new So whether capabilities markets, a great tube to or additional production for new we're manufacturing us entering it's it's suppliers. find tube place these those cutting, like Thomasnet

Operator

now at in disconnect. questions and program, today's you further Thank may for no this conclude the time. showing participation This am conference. you I your does

Xometry (XMTR) 5 Nov 242024 Q3 Earnings call transcript