XMTR - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Xometry Inc. Q4 2024 Earnings Call. [Operator Instructions]. Please be advised that today's conference is being recorded. to Shawn conference Relations. Milne, like first to now today, speaker VP would hand over the your I of Investor

Shawn Milne

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

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

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

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

Randolph Altschuler

outlook moment. Powered call. The their convenience to buyers our as marketplace cycle. and to platform. suppliers marketplace in customers and AI, our and QX, Thanks, a value, full strong market needs more Shawn. results XXXX had continues globally will joining the and life our fulfill go the resilience by of start earnings I manufacturing just share our and across all strong gain into QX Good morning, our we're realize enables everyone, Xometry significant a off We for XXXX. you to thank in detail a in

a We're QX, QX, XX% the strength in introduced tailored strong increasingly customers Our International surety driving we Active of and supply Driven companies extensible customers initial growth added profits delivery. large XXXX, express end improves growth XX% consumer, for grew of throughput many deep a delivery million and reaching buyer volatile driven with marketplace teams, suppliers. dates revenue profitability. ahead dozens for deeper materials as saw Xometry gross gross AI-powered margin. we provides XX,XXX. engineering. Marketplace reducing adjusted multitrillion-dollar providing In net for options for adoption even reaching technology EBITDA, increasing across their that more by revenue new We solutions fronts, across fabrication. QX materials, global rate. many X,XXX record scale revenue Xometry $XXX quarter markets, chains, including reduces strength metal needs. generated and we enterprise Xometry sheet The expectations, year-over-year, times adjusted We platform our costs manufacturing manufacturing provides Europe additions in XXXX, to expanded across In for finishes, CNC revenue, marketplace custom and year run digitize year by EBITDA scale over and resilient million. delivered marketing in and a of manufacturing a In machining in for XX% over efficiency. to In our results quarter driven with leverage industry. record network in and to strong supply marketplace Europe as active our market. industrial Teamspace grew by marketplace XX% with through dozens QX, contraction. the broad, auto-quote we our increase new $XXX important to and and options year-over-year, of features. and equipment milestone in world to our buyers, record of full in QX collaboration our in was ahead strong record speed growth XXXX. the an technology in mission and increasing our chains customers offerings manufacturing strongest execution the positive year-over-year growth capping confidence XX% QX, pivotal build increasingly marketplace a were and improved of the the global robust aerospace, enhanced underscore supplier was profit XXXX, delivered Xometry despite expectations record XX% our of lead

our expanded enterprise us giving on and key more accelerating to and reasons management. our rely expand accounts land customers sales life also strategy for cycle capabilities, We with

of our strong least with paying our buyer XX% growth at annual year-over-year largest underscores $XX million. many record which medical suppliers. aerospace clearly of across are increasing growth investments QX gross earnings from highlighted increased Our and XX% In profit accounts gross off, a year-over-year, driven we active marketplace robust XX% enterprise with AI-powered several case and marketplace profit a revenue robust network studies, verticals, spend revenue including increased to presentation, our in Xometry $XXX,XXX. XXXX QX and given QX by devices.

scale dollar machine gross matching As our in turn We gets driving fuels grew AI active X,XXX learning growth. improvements profit which pricing our by model year-over-year matching, AI data, manufacturers, in better and our we to algorithm. suppliers XX%

a year-over-year As basis margin a to XXX result, marketplace QX. XX.X% in expanded gross points record

our we growth $X revenue gross expanded the and a Over of marketplace XX.X% million, profitability model. Strong XX from X over QX, of adjusted million years, XX.X% EBITDA year-over-year. in $X.X marketplace margin by power points our underscoring AI-driven marketplace the profit drove improvement gross to last

ahead executives the our As I e-commerce I'm to proven our look to marketplace. excellence team. businesses XXXX, and These also the marketplace and operational excited and additions scaling automation help across experience executive have will us global rest further about of drive recent

to great market, is growth on in goal. global and digital be to towards strides In vision we and buyers continue Our the XXXX, rails suppliers trillion custom make key initiatives. for our we the focused marketplace, that manufacturing the $X remain

supplier First, expand our and networks. buyer

In customer brand our of their center segmentation as We've engagement. our targeting AI beginning through globe, as efficiency software growth capabilities the the to growing, experience regions the such network active scale increase technology marketing still since customer as manufacturers potential our digitally also in XXXX, we leveraging our global our low. we is their and network are including millions tech supplier through there awareness better profitability capacity, threefold to and healthy plan India. our improve XXXX We're stack buyer efforts, personalization, active of as expect advertising minimal to demand buyers across rapidly monetize access improving Xometry's cost. but enhance over remain to supplier We work manufacturing new at our grown and by allows

quickly enabling stands Our reach, to due trade supplier demands to spanning customers global continents, and X size policy. its changing network customer and our out react to

Second, drive enterprise deeper engagement.

Some biggest platform marketplace in the manufacturing. are our largest the increasingly becoming go-to is The custom of the trusted world. Xometry companies in customers

with four XX% nearly CAGR XXXX. past at approximately marketplace grown in to we least years, X,XXX by a the XX-month spend Over have $XX,XXX of accounts last

As I XXXX, driving XX% $XX year-over-year penetration are at of we In largest at paying increased further each XX by $XXX,XXX spend our as investments accounts least with least strong from last million on are in mentioned, in with potential an XXXX. dividends accounts, over marketplace our spend focused enterprise annually. months revenue of estimated

Third, expand menu. the marketplace

to the supply Our goal and customers' needs. is be primary for manufacturing destination our chain

as launched Instant processes tube possible. In cutting Our bending. for pricing we for laser leverage Instant and materials and AI tube to sourcing XXXX, many models as provide Quoting and Quoting manufacturing

of and market are We marketplace marketplace, processes expect manufacturing investing to add our and Within behavior, complexities cost segmentation, on lead cutting-edge working generative real-time marketplace customer applications models AI optimization. our in in to We're XXXX. our to we next-generation to to incorporate time enhanced AI new data algorithms. improve

Xometry and to and internationally. CAD leader viral Fourth, fully models to such images, can a from support as process at of text In data, types in manufacturing. same to addition, be the more we the believe allowing XD developing applying that Xometry time, workflow different design multimodal growing

expect online on marketplace to can In XXXX. We in revenue, drive we marketplace penetration material to a become believe APAC increased XX% revenue with revenue. XXXX, within to to Long to our will XX% other of represent enterprise supplier accounts. large global term, revenue more total continue marketplaces. Fifth, in services. continue and enhancing in international ramp driver represented XXXX, growth of investments we many Based growth Europe overall consistent international XX% with

underlying server we aim for advertisers, strong Thomas. a experience will and to improve the monetization improved We launching contribution and platform given both engagement ad We're engagement. gross in restore margin enhance supplier growth and as drive advertising are the opportunities XXXX technology, By XX% platform technology of we Thomas the users to margin opportunity. investing growth for providing to improving plus new

Thomas. faster grow XXXX. goals advertiser is initiatives, drive is increasing One on of roughly Together, to top in today than the of suppliers XXXX XXX,XXX approximately on to which on these our platform, we X% the revenue listed expect based penetration

AI. to lake our share the and strong to accelerate technology growth. expect to innings of companies is which in remain need trade they will Through and of to growth by gains outlook. to their digital expanding QX companies continue turn one largest to fueling XX%. about us our manufacturing, Many of suppliers Xometry a buyers technology create improved talent, rapidly extensible we turn continue to strong As over now James call in operating XX% the off I advantage and marketplace. QX said, powered of is supply revenue are drive strong AI, AI, proud online is I'm automation global and profitability. and data we we powering leading platform, I'll chain Xometry a accomplishments, led of world's to and Many scale, drive that start, of will year-over-year to our talk leverage. our and by increasingly total sectors, team's the to We together the growing our improving drive shift network dynamic and secular market competitive the to early expect review and an global greatest business detailed innovation resiliency for more the economic environment.

James Miln

Thanks, Randy, and good morning, everyone.

addition to quarter QX fronts, supplier growth. was growth continue revenue million strong strong revenue $X XX% and by $X.X since a a with to was to active Xometry XX% As record we growth active additions QX increased stronger XX,XXX buyers, XX% X,XXX buyer buyers guidance XXXX. in on accounts year-over-year was at $XX,XXX X% quarter-over-quarter. U.S. we revenue driven million. marketplace our expect XXXX. QX November our market spend to view the revenue funnel. net by increased marketplace spend revenue X% least QX million and In in year-over-year the accounts with on continue marketplace accounts growth XX% due QX of by driven QX larger significant platform services to dollar as million, XX-month up with we capture $XXX year-over-year Randy QX expectations, XX% operating active to was to year-over-year, X. highest a per and net provided to QX down approximately a increased of to comparison million and $XXX last revenue We of X,XXX. many mentioned, leverage marketplace across marketplace year-over-year of for and $XX QX share. international enterprise XX% at tough $XX,XXX of execution, as due number impacted the significant our increased with top from was least QX, XXXX ahead

XX-month grow continue least strong this We spend expect marketplace over with to base increasing at $XXX,XXX. of time. enterprise with over of last Growth in accounts to accounts was XX% XXXX, for revenue in

largest our revenue in down to on Supplier in focused advertising Thomas services account by our contraction the the declined to strategy which wind $XX enterprise annual in year-over-year U.S. our due driven services XX% and accounts, have plus we extent, mentioned, a services noncore million Randy QX, and As primarily revenue. of believe lesser manufacturing each potential marketing

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

are dollar driven QX expansion. margin by growth services gross gross the our supplier margin services. on marketplace and and remained of advertising profit at gross top on growth We increasing strong line combination higher focus gross Thomas XX.X%, margin through the focused for marketing driving

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

points leverage discipline year-over-year, non-GAAP uncertain was quarter-over-quarter, marketplace and across across our balance In of million growing was revenue, X.X% are We with we in strong allocation and resource than EBITDA improved profit QX an QX and growth adjusted expenses strong applying marketing and of compared revenue, to operating growth gross other down sales EBITDA X% rigor adjusted loss this $X.X of capital from driven efforts, $X in year-over-year resulted driving less or macro. revenue XXXX, profitability X% in and XXX in a QX operating teams. investing expenses. year-over-year sales revenue XXX After marketing enterprise leverage in spend which advertising of is X.X% million $X.X QX XXXX. basis sales XXXX. we our or delivered as QX points million of and and and QX X.X% to Marketplace efficiencies. basis operating by decreased

$XXX X.X% Starting For International revenue, International operating margin QX, XXXX year-over-year, incremental adjusted EBITDA strong was in loss $X.X adjusted $X a improvement slightly U.S. cash of $X.X end XXXX, Asia and million $X we million higher fourth with adjusted we our in of were by sales a million in in and provided million, adjusted driven we payments of partner $X QX XXXX securities changes compared the adjusted or EBITDA capital segment QX, million further $X.X both cash segment than million, working increasing driven loss of million XX%, as expanding EBITDA in due million for aligned technology to margin and in was of in In and gross closely operating Europe QX to more positive to our leverage. drive delivered U.S. CapEx was positive scale Pacific. from target At expense of of investments cash EBITDA the and receivable the long-term QX days. XX%. EBITDA The increase and XXXX. segments. and marketable quarter, by equivalents $X.X

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

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

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

Now to moving guidance. on

the We in the XX% million estimate acceleration will million approximately XXXX. the XX% For of by QX dollar to $X that impact U.S. stronger to $XXX revenue a revenue on first QX year-over-year, million quarter, expect basis. from we in or $XXX XX% year-over-year negatively growth range an

from We QX year-over-year, be to in XX% expect approximately acceleration QX XXXX. marketplace an XX% XX% to growth

is mentioned, off Randy a As XXXX strong start. to

We our policies, flat expect we suppliers to geographies. in In of volatile XXXX, approximately scaling early the in global up accelerated be Services trade QX sourcing strategy, different quarter-over-quarter. face Supplier including global

dampened investment volume up As in margin quarter-over-quarter temporarily in a these we ramp order geographies, gross has QX this on basis.

of In We margin expect into million improve approximately loss $X.X XXXX. QX, $X.X adjusted to EBITDA marketplace expect gross to and in margin in year-over-year expect QX XXXX. loss continue gross expand of compared million QX to to a marketplace we

we XX% QX approximately expenses, incremental $X approximately including revenue. to We X% be year-over-year. million XX% taxes $X margin of stock-based be X% to to payroll QX, In to adjusted approximately - expect compensation related million expect EBITDA or

on could on We stronger expect rates to approximately in estimate the revenue quarter-to-date, basis. impact that year-over-year XXXX XXXX $X we by a growth. Based overall exceed XXXX growth dollar in million FX U.S. revenue

For by the XXXX, each our at fragmented least initiatives our expect marketplace full large quarter, of driven growth across XX% growth we year in market.

continued the want can mission I suppliers of and approximately questions. With our buyers growth of instrumental the core manufacturing. close our digitizing and world. We Their on for Xometry dedicated expect approximately year gross growth line XXXX We the incremental year-over-year. expect down positive expansion. driving gross marketplace remain EBITDA combination to And be growth adjusted expect full our open services up to XX% supplier X% adjusted and our around operator, margin be XX% for lastly, team by you please to to top call we for profit XXXX. through to EBITDA and is the focused thanking margins commitment of members dollar to to that,

Operator

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

Eric Sheridan

we built? that to pathway a you maybe could. back the be about thinking Coming about you to priorities talk to revenue in the bit about the then numbers kind one. of What needs mix quick laid out, What international second a just that little your Two, needs internationally be scaled? you do penetration continuing ahead? And how if from the out of or How mix should I years evolve there? to maybe to pointed be think to

You well. we buyer bit from of conversion might of improve process? where how and process little blocks helping today a buyer process multimodal more AI to and building it buyer and talk the the as the threw AI of capture Can about are you the friction getting out multimodal

Randolph Altschuler

Eric, it's Randy.

that about XX% that revenue, about international, to expect our consistent to talked of you with what XX% of global we with be we marketplaces. marketplace sort So, other see

think there's One, I of in twofold. sort some we've EMEA, strong had growth.

think growth last We Asia We in expect we and out more that make in XXXX, even did in Pac, to lots XX the international continue. back from going that's in revenue it's $XXX play XXXX, early gone And rate we run to of to now still today in there's growth. $X still that in to there. our And days million of room that a a to EMEA. grow meaningful though we've bigger role and bigger months, call million impact also expect then

file In a gets CAD site, your and file just Xometry instant need multimodal, CAD they terms when we XD upload somebody quote the on of quote. an the about generate so question that to today, the

quote drawing to a versus have just a instant move and an we get flat to file. a customers file, multimodal XD from file that CAD or the a using ability model, As would they upload

friction. there's parts users, parts still in are there manufacturing, of done many are CAD that legacy this that of experience. open world our particularly will of a more it's parts, in site. XD XD the and there It still large up customer that profitable get just millions us, a instant aren't just There quote It for in are but CAD. many So, a will, And better it's will universe things reduce drawing. can

Operator

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

Cory Carpenter

a I Randy, you had follow-up James, one you. for maybe and for

a you strong to mentioned XXXX Randy, off times So a start. few

bit impacting environment is manufacturing a the what buyers landscape you're on expand conversations changing in broader and suppliers? tariff could you with seeing and hoping your the how Just

Randolph Altschuler

Yes.

seeing sort segment of increasing One So, things. this the and of in couple our talked I enterprise think in is, a our we business. about transcript, success of we're

reaction being our Teamspace. That well I and We've features customers think CAD received it's to our add-in. also, particularly and adding XD our first, ERP that's, more our our is customers. enterprise technology very customers, our but that. systems of integrations from from And by more all with been

reducing very So powerful that's frictions.

are the Our And And embracing a dominated across many we there. seeing volatile have our We're we have historically by a there that is in enterprise in those. heavily strength, that increasingly to has manufacturers, company safety. this really customers growth appealing small then a market, Xometry environment, local customers been this fact wonderful public technology verticals. which customers and is backbone, also for fragmented push for that's

Cory Carpenter

comments XQ you on your And more were that, bit how strategy you talk and James, guide? that about sourcing uncertainty. guidance accelerating XQ that's the you given a mentioned in that expand just your Could global little impacting

James Miln

Yes. Thanks, Cory.

we're So, In to we're QX here, XX%. here. of growth the XX% to about marketplace guiding excited growth ahead

with enterprise So, Randy was we're good saying, penetration good seeing, momentum there. accounts, as

As our supplier been We've it's X,XXX networks been into know nearly talked network. part Turkey. got about supplier strategy, you We that India, We've geographies. globally. different our and expanding to expanding of

and for some really of because geographies adjusted margin. in quarter-over-quarter $X.X some is volume that we that's But having those to accelerated of terms for component million in we guide of highlight so, EBITDA, And loss going that the basis that. continue to dampening to QX. that's wanted that. do And on of a a And we've our that gross impact

our environment gross to combination the great drive profit of as dollars. margin enables mean, from Xometry us positioned data pick supplier gross well of our the over margin have We I us And dollars. data expect strong gross about day, year. and and our in profit be improvement our the supplier expect this QX with into to to network this is to all really, this continue improve flexible, driving at healthy end as network algorithms help continue solution a us customers gross network the to will the a and QX as to the up on resilient

Randolph Altschuler

And Cory, this Randy. is

Let extra with couple well. me just jump in of as things a

on remind So lost year, an in just EBITDA million we adjusted basis. everybody, to $X.X QX last of

this think we So, in just and also, an you'll and be this first of quarter, that of at XXXX from you perspective see a margin, XX% 'XX. in perspective incremental guidance. will EBITDA expect James midpoint on, higher a picked a temporary both obviously, And the is margin our approximately adjusted margin the we dollar had gross from than in

investment it the in So, an first is the and that worthwhile year start, the benefit was that making we'll continue was progresses. quarter. year off to And said, from as I strong a as to

Operator

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

Brian Drab

been was the could has sense order give any us and how And for you increases any price? order insight between in quarter, XXXX growth into growth overall? difference I wondering fourth the if in

Randolph Altschuler

of about Brian, over usually want active we ads to X,XXX. XXXX buyers don't order for I of record had talk per number of do point growth se. we that a out

add for was quarterly a that in XXXX. record us So

So, we're seeing an buyers. base expanded of

orders, seeing we're obviously, enterprise also growth particularly in business. but And we're other segments so, our in and seeing of growth

it's strong. well. a QX as start in is So, strong also 'XX, indicated I'd I the board, And across off to say the of 'XX as call, been

good. been it's So,

Brian Drab

Great.

to quarter So in say strong for XXXX, orders just expecting, strong so does that first have a growing expectation clear, to be you well start, 'XX off you're orders include year-over-year? been when and

Randolph Altschuler

Brian, our in of again, yes, in again, fourth And I record ad growing report don't orders QX. Yes. mean, We the active the QX, specifically, count. order and we're to we're we growth quarter in just obviously, grew point orders, but QX, to the growing buyers order for year. in

board. across So yes, we're strength seeing the

Brian Drab

macro it's industrial Okay. still mean just very and a tough a environment tough generally I obviously Great. Yes. environment.

that the Thomas, about legacy orders little wanted imagine where business a ask accelerate. I between somewhat for to and stand Can and better, talking rapid quoting talking And will creating just So the I you that bit as today. we business like just gets the then relationship when feels Thomas it now? we're and when the Thomas. separate opportunity of leads about from Xometry's talk about, the about Thomas it kind just Is we're legacy

Randolph Altschuler

I guiding and clear, marketplace the And just XX%. to fourth are growth accelerated want revenue anywhere let's to of I Yes. then Brian, mean, growth where QX, in we report be of do XX%, from we quarter XX% back, from were XX% in

on seeing Thomas, in do again, do integration only orders have our your and and going referrals. between side customers and growth terms on ad we're enterprise a Xometry some the new revenue back great just focus right get in But of the not between synergies in marketplace what platform. expecting our about the but now, So In the plan more technology. we to customers, QX, platform Thomas QX. the and We growth, long-term question original the of is new server we're

are advertisers. business a X% listers on the So site right of That's get that's our about at high-margin very focus now. We to want for Thomas higher penetration. us. only We're the

broader synergies prioritization, integration we And Xometry integrations to up technology So, get number. ramp completed, as let's then turn that and we let's about will, of those think the course, ecosystem. that with

Operator

with Our line from the Josey of next question Ronald comes Citigroup.

Ronald Josey

about in land progress to and drive has in menu would that the I expand just remarks accounts core that. this made how helped love to on focus understand your increasing have expanding and/or penetration the changes the the you you marketplace just driven Randy, to opening and selling year. motion to talked improve

thus improve? you new that's more. gross understand confidence in and and expanding. any in seeing understood far changes can If the I wondering bit understand to I little gross investments unpack a you then, I impacting everything function XQ. I marketplace And see give wanted that geographies, but helpful. the going to scale improvements hear be in sales geos would want we'll and that what confidence gives to difference that else, new really volumes James, if you're in margins the menu, between these margins margins

Randolph Altschuler

on me question. that first jump Yes, Ron, let

So, when success in with about segmentation. we far so mentioned our talk enterprise, we remarks about their

it been is as about sales in investing technology year, CAD we tools, are our it's plug-in. the team as ERP It's the we've enterprise So, all which Teamspace, last investing well talked critical. integrations,

making an married our So and this. sales this that as team that it package whole with to we're segmentation of increased sure approach taking together economic

of those We with a called a those number and out So $XXX,XXX resources us. now of applying strong accounts for enterprise really that's number to accounts. LTM more spend, than

think that have investments throughout the us. team that been made So, and XXXX for we segmentation sales reaping focus in and enterprise I the benefits that

side you In the terms site And combine cutting. I the approach materials, constantly and bending segmented features. when together new of at did we tube itself, think adding Teamspace made We're expand on the and that, on that enterprise we've new with side. tube that the in also forward. growth into that moving huge a identified enterprise, investments for engine greater And can us be and that's the on sales we've success rolled

James Miln

this And Ron, James. is

supplier margin, year-over-year. gross remind gross on at record over up we margin years. QX We've just to XXX a last the year progress basis few margin XX.X%, We opportunity fantastic us the algorithms points the ended growing us, right So, grown saw annual by orders, data, XX That to our manufacturing. points. our out growing giving of right out combination for more more match a the is supplier to network, our

that's So the strategy we're on.

that. do to continue We

a global accelerate volatility we now what into those global on of we're faster. up think and some policies, trade our the sourcing, geographies wanted we're right more is of scaling different seeing face to in I bit

continuing what data on And to had over know full that of that confidence we we're of supply through drive what us we the QX. our of to margin year it's think the to We margin. ongoing, record to menu learn, track is gross is doing to network up as on profit so, the of a continuing the years improvement. dollars improve I thing development product ahead. more going and position But gross marketplace think of our we've algorithms as right gross temporary last continue top revenue underlying us the do dampening there and again, and the margin the for line us a few the combination here, in increasing is of our gives path ramp that, And then

Randolph Altschuler

In record track look marketplace we're if XXX points. that Ron, consistently just linear by growing to, that at our so James gross on X.X you gross you again, margin to just back quarter-to-quarter. is points, to And margin. that Yes. the referred if that, year-over-year, double-click XXXX, grew And can look at not basis

we'll see to 'XX, see you'll increase that QX continue 'XX growth confident versus we're in to QX. and from So, jump

if adjusted at, X.X% was showing you just XX% we look investment to -- a a again, it make. good We're and adjusted of incremental of loss still to So, thought margin last year, just X.X%. versus EBITDA

So, well think it. we worth that's

Operator

from next with the Matthew comes RBC line Capital Our Swanson question Markets. of

Matthew Swanson

current the situation. about of kind Two tariff

reactive tariff how you of in very changing the for get the segment, evolving any to unevolving The with be, in first, you want just they quickly then starting to are this proactive being specifically with them landscape? your sense guess, more I And and guess, seeing terms deal, landscape? enterprise or to would are I enterprise conversations customers,

Randolph Altschuler

Yes.

top think of customers. mind for And about I it's it's them, certainly risk for many mitigation.

so asset-light an integrated of about So the we're technology a marketplace, that's vertically company. our we're that's the manufacturer, fact but things one attractive that not

different the into appealing. accelerated I in larger is with deploy to what QX growth, here think them And to customers. for seeing we're particularly strong QX ability customers, going very those geographies that's just to the the seamlessly with So, our and again, certainly back appealing Xometry

James Miln

think I stage, Yes. at how Matt, of guidance, think this I I it's it's like in our just, impacting still early. And terms

we're so, the situation. watching And I think carefully

just about core the as our customers in solution. to year we a finished I As we But feel as said, we're here. good a as good and service flexible positioned able adapt ourselves and how I we business, think Xometry think resilient be And position starting. then best, and think we I on to well our

Matthew Swanson

nice And the you've an general the they of some it was That's ads benefit features seem helpful. of would Do like kind to Or awareness from that's the then Teamspace. from for tools acceleration? really you in acceleration Collaboration added? is of part of and more think about complexity the Teamspace current absolute that see any the number it of environment.

Randolph Altschuler

customers, enterprise I parts think And as in more also, and we it's moving probably away to penetrate products. we're of more more about assemblies awareness. entire these single just from deeper

in look some gave of coming we system. gave, We earnings that some examples also orders the through the you nice these deck, if Xometry are of larger

think we to mentioned, that I adding nicely. just features Teamspace we've constantly also And facilitates it. So, been as really

reducing more think it's risk. I it customer, making So, friction for reducing easier, just the

Operator

from with comes question Gregory Palm the next Group. Our line of Craig-Hallum Capital

Greg Palm

buyer Are of some lines. given things? seeing that's just changes note sourcing you of in of to Maybe than from tariff geographies what's parts the any Anything mean, rhetoric. sort I the up of time kind behavior your they different side just following whether on? previously on buyers going from shipping on were

Randolph Altschuler

Yes.

and multiple mitigate some are awareness using, by a cases, definitely our customers looking there's in more definitely to think risk much geographies. I

from switching to about it's international sourcing. domestic Sometimes sourcing

And where very Sometimes are. into to and we're different customers our it's geographies. about meeting that, again, suited we're well moving they

great So Xometry. there's yes, it's awareness and increased I definitely a opportunity there, think for

James Miln

continuing Greg, are. Yes. out, us to, sourcing as again, the to our just Randy that well our global build said, and And they meet positions where obviously, side strategy on customers

Greg Palm

from focus able And to revenue the us on that whole are the is of of or is Or and different? India, going of is geographies the that's sourcing here? supplied give other investments move terms that China in part currently like on something proportion network, supplier imported the, it being what's to in you countries specifically? And

James Miln

we out. that break Well, don't

by Greg, marketplace that, of the supply terms positioned most having though positions think I again, marketplace a global that and source in as provide multiple positive able being and is customers. our geographies to to internationally, the countries value to this

some tariffs. and we're resilient for We've changes. it's, any seen positioned initial well flexible with So, being

the to be As in those and platform progress, in those our we're decisions. those able and marketplace help reflected make our buyers pricing have onto those input

that of grow our the X,XXX and growing so So, at strategy always healthy been suppliers here that over can more has offer more very even today. been that we'll year. choice end last and last the is That's flexibility, we over so continue which few our customers years, but to we're important,

Operator

from UBS. Our line question of Joshua the Chan with next comes

Joshua Chan

two guess. I ones, Just quick

and what factors continuing into those guess You X,XXX do is potentially confidence quarter. on of the in track guess kind what's mentioned gross marketing algorithm margin I terms temporary about this in how you initiatives? my QX? to that one guess, learn gross for the buyers headwind it QX, after think And second dynamics went active right margin original your takes adding of I quarter XXXX? back progresses new the to And the that then the X I

Randolph Altschuler

Yes.

both jump of me those let into questions. So

So, led in first, of buyers, I really seeing of new think terms product-led in new you're buyers by quarter that what growth. the record XXXX add active for is

platform, what we're United all solutions, making Pac, it normally Teamspace, Our are things We're States from it's or enhancing sorts the very, these appealing easier. customers for Europe ones marketplace We're of reducing would are they Asia when or in very very technology technology-led whether friction. differentiated in find. looking and our

paying over I that investments we've really technology years in those been the making So, think off. are

getting also smarter thinking more we're think about as reaping benefits. I personalization, well marketing also we're segmentation, as our about higher that's

the deal margin We to XX%, QX investment. that made of QX, don't be we've terms gross again, a year. every In expect going grow done this consciously to over in 'XX. XX% We've expect we because into big

geographies. to, customers of do see to be So, it's this environment, we not, they want But face in the that want certain in it's an deeper incidental thing. unsteady

confident seen every public trend now growing and we're that And so, right a very year you've of see that we away continue margin. investment. QX conscious in profit uptick and a that we'll But we went it's that nice decision, gross since made

Operator

participation showing time. does This at conference. program. further conclude questions the today's in Thank I'm no this you for your

You may now disconnect.

Xometry (XMTR) 25 Feb 252024 Q4 Earnings call transcript