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Xometry (XMTR)

Participants
Shawn Milne Vice President-Investor Relations
Randy Altschuler Chief Executive Officer
Jim Rallo Chief Financial Officer
Sterling Auty JPMorgan
Mike Ng Goldman Sachs
Brian Drab William Blair
Karl Keirstead UBS
Nick Jones Citi
Nat Schindler Bank of America
Matt Hedberg RBC Capital Markets
Call transcript
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Operator

Good day, and thank you, for standing by. Welcome to the Xometry Second Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker, Shawn Milne, Vice President, Investor Relations.

Shawn Milne

you us thank XXXX Xometry's and Call. Earnings afternoon for on joining QX Good

Randy Chief Altschuler, Jim are me Joining our Chief Officer. Rallo, Executive Financial our and Officer;

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

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

Randy Altschuler

and earnings business, everyone, us thank progress. are a for you our new company. you after second introducing afternoon business Good financial our Xometry, reviewing to performance many our for time and Sean. quarter spend first you public joining I'll Thanks, Since to some call of as

our with existing our I'd like as take QX one the for million begin, by to points of growth see for $XX.X to On improvements existing increased review we continue rapid margins with of in of to represents year-over-year going second increased with QX, Xometry XXX start a XX% revenue robust we top by as In We also and was expanding XX% global would XX% to XX% of to year-over-year buyers gross the we our spend $XX,XXX, strong well Before thank I digitize to this of to of Alongside XX-month quarter-over-quarter matching driven driven investors The by on see last performance. with profit investors, strong thank marketplace. our revenue, a our continue buyer of support. strong market public sellers. quarter new quarter-over-quarter. AI-powered had their the our XX% as as I'm pricing adoption the basis growth, of on-demand buyers increased to XXX. our and like opportunity revenue marketplace our leading marketplace buyers employees economy. at sellers, we and our to least within our mission sectors making new growth, growth further and both number largest of manufacturing, for accounts, This land-and-expand active year-over-year. XX.X%. strategy. seller gross This accounts

Board their increases Xometry is our our bring prestige, We services. Clark, visibility into first and our our us our sellers for XXXX, underscores widen the guide matches products. and buyers new half and attract continues marketplace. Marketing of Banking scale, becomes materials buyers. added improve a buyers seller over and XX quoting we to marketplace. In for in to storefront our As the the own professional new at Recently, our grow, former of use extensibility our sellers finishes Ranjana learning strategy. monetize growing to PayPal driving and number across the storefronts, the presence transactions through Transaction payment to offering to basket gross processes cases latest Global their look they This marketplace financial and Directors transaction overall for The who Mitsubishi quarter, instant help to Financial to and Head we is of of helping digital joined better UGI and integrated payment Group, of as Officer buyers margins. transactions Chief In Adding machine manufacturing efficiently these smarter, the processes is as to our our Xometry new on-demand second released of the our allows key enabling engagement, all transactions and currently sellers, attract engine, and customized digital engine. us the which Customer our buyers, of manufacturing

key XX% to new areas earlier, growth a story, companies you XXX few overview with many to As buyers. million to discuss a are manufacturing for Since like growth roughly I in to and our Xometry has opportunities take growth founding XXXX, to XXXX of brief investment. I'd of marketplace. mentioned the since in are compounded $XXX including Fortune of of been minutes from is marketplace on-demand Xometry leading XX% revenue the our provide XXXX, in XXXX. Today, tremendous, annual of

real-time to innovation equitable accelerate providing manufacturing demand. global capacity and by is to mission Our access

and world. entry industries Our vision corporation market of to to is and digitize online through drive and disruption their focus the sellers an more largest parts The is sellers experience. ecosystem, operations. the from times fragmented buyers to of in efficiency, a sustainability Xometry chains platform the X.X produce manufacturing for lowering marketplace procurement innovation by increased of a and custom regionalized process highly traditionally direct expensive, ripe as the to manufactured transparent is emissions a on ESG one connecting buyers. barriers The is and Not there's base for with buyers opaque inefficient than slow and digitization highly only supply issues two-sided

provide delivery buyers, and quality assurance. we immediate For estimates, pricing,

more seller sellers, basket small shops, we global to financial and businesses, to shipping our local Underpinning is run artificial For our provide of including access machine intelligence. proprietary marketplace of products. services a suite and supplies, and help their buyers growing efficiently jobs, a

software, geometry enables AI-powered finishes. processes, and competitive a Our materials feature and choices enables constantly XD combinations with instant starts of marketplace pricing and increasing our which in lead It across number recognition. of times

a to transaction, with huge on and become learning revenue, efficiency of higher each the driving number smarter machine margins. algorithms Our features, train enabling platform

The value a higher lead to consumer resulting resilience our engagement pricing has and to base. powerful leading seller for automotive active sellers, ramp-up proved we and for robotics, continue buyers, space. With creating chains, marketplace Xometry. the effect As and buyers in expanded to XX% At products, improve, our devices, X,XXX by more the to over more evidenced in aerospace, power grew global our so which sellers, our is disruptions network times crucial and to defense, we time, over demand XXXX of same including XX,XXX network XXXX many breadth and drive brands our of sellers. active of buyer active network supply from medical

is a Our manufacturing, global TAM industry. $XXX with of custom billion a the dollar in on-demand massive, of market manufacturing multitrillion subset opportunity

aggressive getting the our enterprise workflows. investments. rapidly started. bold marketplace our in and opportunity buyer scalable active to significant procurement product and sales, Within a opportunity will design solution, marketing become embedded large platform, our we massive be we technology have market just We're base, and Given and and growing in an

leading pricing and instant CAD March including Autodesk XXXX platforms, of Inventor, estimates with SolidWorks, to our time new users with recent a and Xometry partnerships get integration XXX. enables lead launch without have Fusion Fusion We from XXX, which leaving

cards which quickly Xometry. financial is our gives we enables their value capital of XometryPay, launched In Another Seller introduced supplies, we allows year, this terms to the operations. and of to for offer card, giving and key focus beginning brands. from services. of products for accept. to payment the Xometry-Advance buy flow expenses other priced buy of launched to mid-XXXX, the financial seller they leading we cash Services These business expanding offer new March sellers Xometry to XX% products goods needed in our access opportunity credit that competitively by backed Xometry including which materials sellers them payment recently the improve with And jobs immediate their a area sellers suite In tooling accept sellers products customers of basket of XXXX,

Europe been we've as In seen Since of a acquired to platform or supplies small have that leverages Germany learnings Munich our at active the late Our financial XXXX. operations. in utilizing strong we in ramp received of seller products from XXXX, team well one XX% launch US purchasing time, in sellers with services revenue our marketplace. least our AI in European a our that

massive XXXX just generated over million has International half rapidly United of year a to opportunity operations opportunity for roughly revenue scaling in our is Asia out generated have intend and $X the for similar build Currently, and capabilities of are was alone. revenue XXXX growth. an in and first million enormous the XX% We in seen the We've international global up over States. Pacific. Europe in $X our

and pro sales to add basket over opportunity International our other leading we're global of position dedicated Xometry million, the strategic of sustainability investments platform fragmented is across services the our providing including focused tuck-in increasing committed footprint or with our new $XXX also and application new up in our in total In could our a their the XXX% efforts buyers geographies balance the offset to our roughly our QX of is of marketplaces, of our online of sales Xometry-GoGreen We're organically manufacturing. seller throughout carbon them to initiative And acquisitions parts. $XXX.X machine purchased to nature including services stepping billion channels, and environmental strong of cash more and Asia purchase capitalize to by QX through the XX% estimated the we services. reducing the With to impact the marketplace. new our offer to and the public be investments promoting revenue the Pacific. in expand creating for parts. price team emitted our accelerating we manufacturing liquidity business to international marketing instantly of algorithms to several of next offering, learning the ability carbon credits geographies market on years. grow offset carbon to shipment Post the our forma small calculate to new on or COX As in leadership credits going

expect the not only stakeholders business which stewards live. us we to in but all Our world of good be our of

I'll founded second Xometry.org that, recent turn results business quarter over the closer to and organizations. our our X% at our call our Jim outlook. financial for to pledge over charitable support supports we Rallo equity movement and IPO, the with time look a committing With is So CFO, which

Jim Rallo

as everyone. and to public Thanks, share echo Randy, good excited the like a comments to business. we're that and I'd our to discuss our company for outlook results first Randy's afternoon

As of increase number Randy in our increase of our mentioned, XX% resulting active in growth we XX% generated a $XX.X quarter-over-quarter. was marketing we by million, from driven buyers as QX attractive up continued and investment strong revenue This leverage year-over-year and sales economics. the unit

approximately was reminder, from accounted customer of Revenue that growth for excluding in QX that with PPE we one associated products XX% disclosed revenue a S-X in XX% in our revenue one customer. As XXXX XXXX.

of increased buyers over time. XX,XXX compared joins activity at business of relationship XXXX, us from repeat aim substantial spend the our down in and from XX.X% QX our with We As model year. The of margin QX to end In increased increasing stickiness our accounts existing increase revenue account to year-over-year of rapid XXXX, XXX of from we our the business our XX,XXX and revenue of of impact underscoring that and XXX Once up algorithms the in XX% to pricing strength we reflects to QX believe XXXX. underlying early points account QX XXXX. XX% accounts lowering QX. was account transparency active spend QX start predictability. basis quarter-over-quarter. the leads percentage gross points purchase gross XX.X% commodity on from The platform Randy mentioned, out time. at the buyers, to number the accounts and that an at dampened with visibility and and XX% the margin in and year-over-year provides efficiency QX the existing spending engagement least gross increases margin our to of over price expand basis QX XX.X%, activities last the XX-month XX was reached platform, smooth

quarter-over-quarter. end of reversed the QX, driving the margins Towards dampening gross adjustment, improved we

QX. QX gross margin to trend continue in and quarter-over-quarter this expect We improvement of

transactions scale margin better time. our smarter, and increasing our for buyers sellers As our to and continues number as learning machine gross our the matches becomes marketplace of grow, and driving over

costs. that across to is XX% $XX.X allocated total expenses included QX items. year-over-year line compensation stock-based of revenue. operating SG&A million, XX.X% on expenses $X Moving to operating operating million XXXX, QX QX XXXX of expense representing increased

expenses costs. company million component. Additionally our our operating Within public approximately is in include marketing expenses, sales QX, operating $X.X largest and variable

Given grow were networks. and Sales buyer of investment aggressively buyers an of driven TAM, $XXX our to year-over-year, by including network our intend costs XX% sellers. and continued billion marketplace marketing seller $X.X and our QX, to in expand million increase large we

same Sales and stock-based salespeople to XX.X% and compensation the a of compared additional as marketing percentage a expense. increased in was of year revenue period hiring ago. XX.X% Our

channels, and aggressively further digital half to sales in expect invest in marketing the team. increased marketing of hiring more We in and sales including second our marketing XXXX, new

$X.X $X.X Europe operating QX, our or respectively. Our revenue and QX XX.X% million segments million, segments adjusted of for respectively. was was and QX Segment from million million for million, and revenue. $X.X and from EBITDA Europe operating loss was our $XX.X U.S. $X.X loss In US

We continue volume margins million cash with as raised IPO of second growing which improving $XXX cash XX, is million the debt million $XX.X were and our July $XXX.X million. cash increases. to of equivalents business, net debt. In down approximately gross early have in a invest in end European our in rapidly At the subsequently we XXXX June leaving our balance in and quarter, $XX.X proceeds paid from forma pro transaction

to moving guidance. Now on

of expect million $XX $XX growth revenue to QX to representing XX%. We the year-over-year range XX% million, in of

QX with As I mentioned majority previously, revenues one customer accounted for XX% of of revenue in in the XXXX XXXX. those

growth for as XXXX. is Excluding revenue from customer, that revenue XX% to guidance compared to XX% QX QX XXXX

revenue Our one assumes that XXXX minimum revenue customer. guidance QX from

which to QX, from be forward. expect adjusted to estimate $X.X EBITDA. international of sales the million, higher In $XX QX the million we accelerated reflecting range to We million, previously in $X be we the and marketing, of moving expect per higher EBITDA loss range compensation that adjusted million to around approximately will spending we mentioned quarter stock-based costs company expense in investments $XX million public exclude and $X

Additionally, the for previously part X% XXX,XXX IPO, as as shares charitable organizations. of to company's to Randy nonprofit pledged we capitalization the or of contributions discussed xometry.org approximately

to a will each a $X.X $X.X million excluded will administrative non-operating estimate through XXXX general we be quarter As in record charge adjusted expenses, this result, will EBITDA. QX that from approximately which We charge and be million.

expect range full For of $XXX.X revenue year $XXX.X growth year, of XX% the representing the XX%. XXXX we to fiscal year-over-year million to million, in

you open range to in questions? further fiscal please of EBITDA operator, mentioned reflecting We costs to marketing. call sales the With previously the company year XXXX that, public million in loss for $XX up the can adjusted and investments expect and be higher million, $XX

Operator

Auty comes JPMorgan. Our Instructions] first Sterling [Operator Certainly. question with with

Sterling Auty

Yes. guys. Hi,

XX% you're welcome So companies. the experience did those well, of XXX you first I'm of all, you talk public What the of in us customers. then, to within trends if especially question, in to here terms the curious larger about you the quarter? markets. And Fortune penetration, that about how the talked our increasing could of

Randy Altschuler

a Yes. now. Excited thank and company for Hey, you be Sterling, it's to public question. the Randy

as you land-and-expand been XXX $XX,XXX of we've accounts earlier we more So, think an accounts with on are great basis. mentioned And I larger imagine most can corporations than saw strategy. uptick, increase to as those focusing of XX% a we LTM on, where our

very Plus those corporations. that's technology And as think shop I and one-stop relationships and more be materials also So ERT what amount punch been QX, in successful. added which outs, also finishes rolling processes, we also us to we've allows the is over grow or and out those begun including for making integrations stickier. people that of tools more call the we XX tools that new materials systems,

Sterling Auty

as making, of are the then, scale needed investment international the follow-up, where in in you're the you be do a presence region to And Great. you that about to business? feel terms you talked able that

Randy Altschuler

Yes.

excited very that. we're So

focused at of look we've months months first six of first you the If of Xx. XXXX months, the the growth in seen XXXX, six versus and in six the first revenue Europe been we've over

So think move number we a got that do of sellers where have advantage that's success we've we there and even and presence. we don't of domestic particularly but a in we not quicker, where Asia small -- take can great Pacific,

that terrific think there. some seen We've we in we opportunities Europe. great have So success

faster in particular. we're So to Asia going we're work in to duplicate of that success going to kind Pacific

Sterling Auty

it. Thank you. Got

Operator

Thank you.

from with Our Mike Sachs. next Goldman comes question Ng

Mike Ng

little you could for just Jim, and adjustments you. expand little gross trajectory and public of I the company. you afternoon mentioned dampening on was the the more. was Thank margin first congratulations talk if you and sequential Good if could the a gross the wondering as bit a about a margins on I that Hey. the bit just year. wondering rest quarter more improvement.

Jim Rallo

Mike. Thanks No problem. Sure.

a happened I not at quarter. model what the quick We saw and the pricing first a when you commodity the going basis is continue. pretty improvement beginning about in And then, off think to continue see you the second quarter XXX in that seeing gross decided talked climb that dampening is -- actually move the this the inflation started point again. margins model. we look of So quarter-over-quarter that realize We we isn't This We -- to therefore that which is pricing through about that's in that significant of onetime had the the commodity quarter year. thing. what remove we dampen quarter, a was points of at right? And right trend to the right this beginning we're in this again, as

So the increase It's the do. adjusting what those supposed model is in is. of for doing commodities that it's prices to

we so, the performance And around see rest year. expect the to over continued of that

being would QX, to QX, our I margins growth profit gross So And tell able and in very model you to continue feel there. out expect confident to put get improvement we achieve again, in margin. that we that we the long-term

Mike Ng

you. Great. that reopening momentum? happen? some platform. shoring and that the changes those either to are Thank proliferation seeing I whether talk more there deglobalization on-demand of just any could near you trends that to was Are And you're mega that's of SKUs. about still help continues the a will wondering little as seeing of things if bit you or the And

Randy Altschuler

Yes.

technology benefits we're to into -- very beginning of it's I marketplace one We're secular we see extensible. of the digital were manufacturing. a think shift our also

to of out a as call an QX in different And industry -- and lot well. we're a particular such in in verticals. in space our as success also So we've seeing consumer. couple technology emerging green seen as And

seeing you're manufacturing think there's to more shift digital sort greater again and a secular acceptance of of industries sort this. more or And model. adopting I So a

Jim Rallo

to that us. exactly we're Yes. And trying now right build affect infrastructure will still understand said was how passed Mike the I

the obviously think for our better on on going we surface to it's manufacturing. of US be like there's feel small the I going empowering But on next we're clearly business not to be going We'll through businesses. the coming dollars certainly is that an on obviously negative. focused a be to have call. positive try A update infusion to businesses. on small going And of economy. to It's that focused lot be

give some So see do the we call. again, more bill for expect feedback impact we to study on that. and that positive to But you need we'll really nice

Mike Ng

Jim much Thank Randy. and Excellent. really thoughts, it, the so you for appreciate

Operator

from Thank And you. Drab comes Brian with Blair. next our question William

Brian Drab

I'm on two the Hi, thanks conference for taking same at time. calls my question.

ask I IPO of step the half in then just or in two looked fourth revenue to in about of case to in the the Are the year of like remind me more my attachment here the need terms third let generating second that to still quarter a you with sellers? create of it expecting in digital the other ahead showed second. case? how So expecting that still question the XX% you're is can presentations is jump you're one the you margin just second service, the you questions for kind that the Is storefront gross and And is quarter? to me that handling a service more up Thanks.

Randy Altschuler

Brian. Thanks Yes.

continue will said sequential gross that as we to we're estimating see from as And from think that continue QX and improvement QX QX margin then well. Jim QX. to we'll to beyond from I So --

store my as of I continue. powered So are expect mentioned in to And trend our and of very products. fronts we're by seeing exciting. remarks nice sort we there financial are being The a that digital suite they

we charge to are no -- front and there's a with our through monetize their go while we front transactions the do sellers digital able financial store products to to that So those. store have that

Operator

question? Brian answer did that your

Randy Altschuler

on He to may call operator. be his other

Brian Drab

very much. you Thank

Randy Altschuler

Brian. Thanks

Operator

Thanks Brian.

Next Karl UBS. from comes Keirstead question with

Karl Keirstead

sequentially drive overseas those business. is frame time and understand so then negative you you, quarter. Jim. perhaps between could translate to revenues? for of implies into to sequential fourth a the about to to dynamics. expected XQ you what describe this I'll growth you. growth the Maybe when them congrats expect times talked of question second on wondering both you if just would Xometry's the it I'm just first I Thank gave investments one the just couple the of invest a for And X%. Randy XX%. desire the The you both and Jim sort quarter XQ guidance to on 'XX, In was of revenue needle-moving about ask impact lag

big So difference. a quite

answer so client that was so different perhaps given described a perhaps one why the pulled the think just to revenues it's big from I and 'XX you XQ that is for that reasons XQ.

And compare. much makes that tougher just the in for sure to it? so think both. sequential that But a make to about Thank right you that's way want I fact

Randy Altschuler

Yes.

So let me answer to the first question, Karl I'll thank you the it hand for second. for that, and off then Jim

platform locally expect six we next generate Asia now revenue And the our it within in the within we'll months market Pacific I'll to Asia question. that's So on when off Jim, to Pacific. launch begin second formally I to hand locally the and think

Jim Rallo

Karl. Yes,

about accounted we customer for had about think I as we year significant our revenue. that talked XX% one So of last

rates revenue So before. to back as highlighted backing I that out the see obviously, the growth. don't would I growth it be stronger

that beyond. continue point see of don't that this a in, grow really grow and is strongly. we revenue at and strongly confident QX We slowing we to So growth. feel QX We'll

Karl Keirstead

Got it Jim.

maybe guidance fourth normalized the sounds company. implied a quarter the growth it revenue like more for So is

Jim Rallo

Agreed.

Karl Keirstead

Yeah.

Okay. you, Terrific. both. Thank

Operator

comes with Jones Our Citi. Nick next from question

Nick Jones

off platform. a supply get you kind what it the about of the Great. that? how more they are dynamics churn and demand to getting would constraint it to versus to of bigger the picture on pressures guess, of the in Thanks platform talk today trying marketplace. on, working understand Thanks. kind why you're -- the the stay on question Maybe of to kind challenges Can supply I solve Is them is and come on

Randy Altschuler

Yes. Thanks Nick.

very We're we've marketplace. a the already sellers network I think in -- things. got a couple of of robust

focuses grow to is our to their new of We're And financial so new that others attracting also of share continue and as marketplace. such of are services, -- introducing capacity. sellers but our one to basket services

we're sellers, in we're also growth And and go successful. their both both and to. attracting sellers. ends the We're been very that's growing think capacity I So we're existing seeing their new spend within

to last on more our sort year the and products. that that of reasons, of of force XX% and we this multiple We're one sales small a use gasoline working year even fire. for success fact, In saw grow direct on kind sellers of invest

Nick Jones

can the rate you Great. And who of using those? And you you're that have kind services as sellers and on seeing well? ancillary uptake Thanks. just maybe some what of the are touch on attach

Jim Rallo

Yes sure. take Nick. I'll that

we the our supplies of as uptick our give adopted so in includes our XX% We'll see We've recently. buying end an that adopting our marketplace towards we services, improvement continue seller on sellers forth. had year all of So we we seen when that number but S-X last obviously financial of to seller year, in of which get disclosed stronger update and, the the a in number sellers our services. products

Nick Jones

Great. Thank you.

Operator

you. Thank

Schindler Nat Bank Our comes from next question America. of with

Nat Schindler

than look is on, Hi, there move was But engineers on guys. or the to online impacts of broader COVID Thank you. direct has which any sale, an detail by more early changes, any bit you I other other PPE just business impacted for hoping the lockdown? if of how COVID could were because give impact. design a obvious products little

Randy Altschuler

Yes.

mentioning the and the of of back potential digital manufacturing chain fragility sort now this before, of I of COVID what that or a was because summer. I climate and lot think adoption secular concerns seeing of to just supply changes. to impact go We're about

I and particularly more more larger concerned corporations. about think people certainly that, are

case will of continue state in in a shift or robustness see you chains towards region and or towards give particular there's backup one think supply digital world. resiliency failure I to and a Xometry marketplace the you like that So the

Jim Rallo

manufacturers. focused is Yes. or the I the what be typical is their say And No COVID, were one time we COVID. what problematic chains customers had concentrated with right supply that supply COVID. would thing proved right was open to for business chains during the happened we from learned during entire that That

And the down our for our US open not down, parts flex we right first, than shut to because We're in states. open mean right? world and Europe certain well and US, of right? states parts in time is the customers. the business able global China were be shut obviously, So for network to all use certain I network that in of the

are what seen of of of It's the people the resilience uptick And marketplace why them provides COVID, you've that and that increases. that was the stickiness an drive right happened operate the is active the So right, and number like right LTM during marketplace the that KPIs, that's that over we realized helping buyers they resilience lot that right? the of a which spending XX,XXX, marketplace need. we those proved accounts in

Nat Schindler

have, to that build you need Can you is or time – let's how just related much the – local base Great one buyer say more side you to internationally, this not equation that side? side necessary? just you that seller up you the Europe. buildup move marketplace business by when do global to and move on of of with the manufacturing, sales just pushing that Do

Randy Altschuler

want customers, I and we both a local option. offer – to an buyers international think you

reasons locally, for be within I needs data time, there's or various So for be definitely think et region. there where purchased may country cetera, to within it issues,

about well. maximum important And platform a to I providing about as the think them. with buyers to just our that able I the and and our optimal number build of we're have options experience for we when that's So with local it's think great network technology think

Nat Schindler

Thanks. Great.

Operator

comes question next Hedberg our Markets. RBC And you. Matt with Thank from Capital

Matt Hedberg

I'm – question my sellers one to in that XX% active more, they those comment. a use taken questions they then taking of that it sellers started where When wanted service. purchased Was advantage use more. of leveraged IPO. circle prior they to on look purchase and some the realize, you or aha that. words, financial there Jim moment have I back your for lot purchasing an more suppliers, of this at we've to Thanks and a going had, to who other even of and really congrats

Just what of curious was sort that point maybe usage. expanded on tipping

Jim Rallo

Yes.

I think out Matt. products look, we've rolled sequentially our

I we've continued an seen products. what is the adoption out in think to we've roll So we've seen as uptake

continued that's right Randy adoption. his we've As continued earlier roll and in to described driving comments, products out

And continue. that so to expect we would

expanded MRO network we've of just additional We've out products. financial So supplies rolled providers. our of

rate will we confident that So adoption feel continue. that

the for of very business earlier, us the about high talked is we piece services, margin. As financial

And So in to business getting traction XX% and good gross the XX% the that from area again, profit we're sellers. margins.

Randy Altschuler

just -- get they little pay bit think seller bit a example product, fee question deeper quicker. when paid I that little your starts answer even into a our for a And using a to Yes. to where dig FastPay

that see most seller use using once starts the or she he of they it You'll future transactions. it for

quite one So the is addictive. when a of investments, seller because force reasons sellers fast as those small to more investing sell to where it in services to we're our of sales we making talk becomes into it get about we're

has stickiness -- the been our of rate really very high. the So them strong using been and biggest it repeat has

So more we it. they'll is... use to just got continue Awareness then hopefully to to people and it get taste

Matt Hedberg

die And look more. great, you and want confirm manufacturing key success you've cast they molding injection I et processes support Randy. That's several cetera. lot sample of of I'm aspects they just maybe how looking Once platform interesting of And you curious then think just, Randy when guys might see in of, you had some I'm that. forward most that sort curious future change? where what to the process? forward leveraging of of maybe to additional manufacturing people and today maybe adoption the are sort the do a

Randy Altschuler

different an of growth a seen strong our technologies overall -- of and We're growth It's in across all the sort we've been processes. really board.

look $XXX and different many with and -- think billion still of this lots I market, what's think at I flavors. use it's but different when cases you

as So over more, we to technologies, finishes quarter. think we XX processes more add I added continue more last

as customers, to for of number products And options big them. available that key that seeing trying we're you basket trying the a $XX,XXX one-stop that to of we're as as what that's to to shop part products think is be and also of I that well. grow move will end-use -- BXB accounts we're important particularly increasingly becomes have to that production

marketplace that's their And our suited so and for why infrastructure ideally it's technology it. again with approach

Matt Hedberg

too. a Thanks the it. on lot. Congrats Got results

Randy Altschuler

Thank you.

Jim Rallo

Thank you.

Operator

and now you Thank this We wonderful a may thank disconnect. Have you. And gentlemen, today. program our you ladies your participation concludes and for day. Q&A for and