Xometry(US:XMTR)2024-05-09 20:10Financial Data and Key Metrics Changes - Revenue for Q1 2024 increased by 16% year-over-year to $123 million, driven by the Marketplace business which grew by 24% year-over-year [8][26] - Gross profit for Q1 2024 rose by 22% year-over-year, with Marketplace gross profit increasing by 37% year-over-year [9][30] - Adjusted EBITDA loss improved by 37% year-over-year, amounting to a loss of $7.5 million, or 6.1% of revenue [9][33] - Cash and cash equivalents and marketable securities at the end of Q1 were $254 million [34] Business Line Data and Key Metrics Changes - Marketplace revenue was $107 million in Q1, while supplier services revenue was $15.5 million, with the latter declining by 17% year-over-year [26][29] - Active buyers increased by 32% year-over-year to 58,504, with a net addition of 3,179 active buyers [27] - Marketplace revenue per active buyer decreased by 6% year-over-year due to a soft start for larger orders [28] Market Data and Key Metrics Changes - International revenue surged by 69% year-over-year, accounting for 18% of total marketplace revenue in Q1 [20][21] - The company expects international revenue to reach 30% to 40% of total revenue in the long term [21] Company Strategy and Development Direction - The company is focused on expanding its network of active buyers and suppliers, with a 36% growth in suppliers in 2023 [11] - Investments are being made to enhance the supplier services solutions and modernize the Thomas advertising platform [22] - The company aims to deepen enterprise engagement and has integrated new features into its Teamspace software to enhance customer experience [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential despite an uncertain manufacturing environment, citing strong performance across various end markets [9][38] - The company anticipates Q2 2024 revenue in the range of $127 million to $129 million, representing year-over-year growth of 14% to 16% [38] - Management highlighted the importance of leveraging AI to improve pricing and efficiency in the marketplace [35] Other Important Information - The company is beta testing new self-serve advertising tools for suppliers, aiming to enhance engagement and performance [22][48] - The partnership with Google's AI team is expected to expedite the deployment of new auto-quoted processes [14][56] Q&A Session Summary Question: Insights on Q2 guidance and trends - Management noted that Q2 guidance is based on observed trends and the overall health of the marketplace, considering both opportunities and risks [41][42] Question: Revenue per active buyer volatility - Management confirmed that active buyer growth was strong, but revenue was impacted by the mix of larger orders [43][44] Question: Advertising side opportunities - Management discussed enhancements to the Thomas advertising platform and the transition to a pay-for-performance model [46][48] Question: Sequential improvement in marketplace gross margin - Management explained that the gross margin improvement was due to better supplier pricing and increased data efficiency [52][54] Question: Impact of Google Cloud partnership - Management clarified that the partnership aims to enhance the speed of launching new quoting processes rather than altering existing algorithms [56][57] Question: Teamspace customer feedback and revenue visibility - Management reported positive adoption of Teamspace, with over 2,300 teams using the platform, enhancing customer engagement [59] Question: Macro implications on guidance - Management acknowledged the uncertain macro environment but emphasized strong internal trends influencing guidance [60]