Xometry(US:XMTR)2022-08-10 18:40Financial Data and Key Metrics Changes - The company reported Q2 2022 revenue of $95.6 million, representing an 89% year-over-year growth and a gross profit increase of 217% year-over-year [10][41] - Adjusted EBITDA loss was reduced by $4.4 million quarter-over-quarter to $8.3 million, indicating progress towards adjusted EBITDA positivity in 2023 [10][39] - Gross profit margin for Q2 was 39.4%, with marketplace gross margin at 29.2%, up 180 basis points quarter-over-quarter [44] Business Line Data and Key Metrics Changes - Marketplace revenue was $75.6 million, growing over 55% year-over-year and 17% quarter-over-quarter, driven by an increase in active buyers [17][41] - Supplier services revenue was $20 million, primarily from the Thomas marketing services and advertising business [21] - Active buyers increased by 40% year-over-year to 33,491, with a record addition of 2,808 in Q2 [18][42] Market Data and Key Metrics Changes - International revenue grew 136% year-over-year, with expansion in the UK, Germany, France, and Nordic regions [23] - The company launched its platform in China, expecting it to contribute to revenue growth in 2023 [24] Company Strategy and Development Direction - The company aims to build a leading global digital manufacturing marketplace, focusing on expanding its supplier services and enhancing its platform capabilities [11][12] - The introduction of the Industrial Buying Engine and Xometry Workcenter is intended to create a more integrated solution for buyers and suppliers [29][33] - The total addressable market (TAM) is over $2 trillion in the global manufacturing industry, with plans to expand marketplaces domestically and internationally [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth despite macroeconomic challenges, citing strong demand for their services [67][90] - The company anticipates being profitable on an adjusted EBITDA basis by 2023, with significant revenue and gross profit growth expected for the remainder of 2022 [54][72] Other Important Information - The company raised its revenue guidance for fiscal year 2022 to a range of $395 million to $400 million, reflecting strong marketplace growth [52] - Adjusted EBITDA loss for 2022 is expected to be in the range of $31 million to $33 million, an improvement from previous guidance [53] Q&A Session Summary Question: Reception and traction of the Industrial Buying Engine and Workcenter adoption - Management noted strong early activity and engagement from buyers and suppliers with the Industrial Buying Engine, expecting a significant increase in active buyers in Q3 [58][59] Question: Cross-sell opportunities with Thomas - Management highlighted the potential for strong increases in new active buyers from the Thomas historical buyer base, benefiting from product synergies [64][66] Question: Macro environment impact - Management indicated no significant macroeconomic factors are slowing growth, emphasizing the large market opportunity and continued traction [67][68] Question: Path to adjusted EBITDA profitability - Management reiterated the expectation of achieving adjusted EBITDA profitability by the end of 2023, driven by revenue growth and improved gross margins [72][73] Question: Activity of sellers shifting to the Xometry marketplace - Management confirmed increasing seller adoption rates, with a focus on providing multiple purchasing options for suppliers [86][88]