Xometry, Inc. (NASDAQ:XMTR) Q3 2023 Earnings Call Transcript

Eric Sheridan: Thanks so much for taking the question. Maybe if I could just ask one that’s more, bigger picture, with the partnership with Google Cloud just to better understand a little bit of implementation of that partnership. How we should see it showing up in the numbers. As we look into 2024, and what do you think it was implied in your prepared remarks, but how we should be thinking about sort of bringing more density into the marketplace and potentially widening out some of the Vertical exposure? Thanks.

Randy Altschuler: Yes, Eric. Thanks. Thanks for the question. So we’re very excited about this partnership, and this will help us accelerate the expansion and deployment of new categories in our auto quoting engine and think about you know things that have taken us months to years will now go weeks to months, in terms of how quickly we can deploy things. And we think it will have a material impact on the number of categories and different processes that we can auto quote. It’s going to be happening over a period of months and as you see us deploy new category through that period, we can provide updates.

Eric Sheridan: Great, thank you.

Operator: Thank you. [Operator Instructions] Our next question comes from Rohan Joshi from Citi. Your line is open.

Rohan Joshi: Great, thanks for taking the question. I had two, maybe Randy, Jim, can you just walk us through a little bit more on the revenue per active buyer. I know it was down more here in 3Q, but then I think the guidance was for it be stable flat to stable in 4Q, which I would love to hear more insights on that in terms of what you’re seeing. And then any thoughts on just around the top 200 largest accounts, the penetration there, you’re seeing call it expansion of buyers across those active those top 200? Thank you.

Randy Altschuler: Yes, thank you. So just to, just to be clear, we saw last year, from Q3 last year was high watermark for us for revenue monthly revenue per active buyer marketplace. And then we saw a sharp reduction from Q3 of last year to Q4. Since Q4 of last year, our revenue per active buyer each quarter has been flat. So when we gave the comment about year-over-year. That was because last year was a high watermark, but most important, it’s been flat and we expect it to be flat again in Q4. So now as we are now in sort of a flat basis from Q4 of last year. That’s why we talked about how we expect, the growth in active buyers to mirror our growth in marketplace revenue. So we – and we’ve been trending there into 40% plus range throughout this year and we expect as we talked about in the call circa 40% marketplace growth in Q4. So since Q4 of last year, that metric has been very stable and we expect it to continue to be stable. On the second question.

Jim Rallo: Can you repeat the second question?

Rohan Joshi: Sure. It was just about expanding in the top 200 largest accounts, given, given the focus there. And Randy that was very helpful. On the revenue per active buyer comment, but just top 200 largest accounts and the progress there?

Jim Rallo: The one thing I mean the one thing I would say is, you know we saw very strong growth quarter-over-quarter in the U.S., part of that is we are. We’ve talked about focusing on the top 200 accounts and as Randy mentioned on the call, we just introduced Teamspace and that’s for all our buyers, but in particular, we think this is going to be very helpful for our top 200 accounts. And so, again we were really pleased with the traction thus far, and we’ll keep you up to date on that.

Rohan Joshi: Okay, thank you.

Operator: Thank you. Our next question comes from Cory Carpenter with JPMorgan. Your line is open.