Slide 1: AI-Enabled Marketplace Digitizing Manufacturing
AI-Enabled Marketplace Digitizing Manufacturing Q2 2024 Earnings Presentation | August 8, 2024 © 2024 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 2: Safe Harbor
Xometry | Q2 2024 Earnings ® Safe Harbor This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding the Company’s future results of operations and financial position, business strategy
Slide 3: Rapid Growth, Digitizing & Transforming Manufacturing
Xometry | Q2 2024 Earnings ® Rapid Growth, Digitizing & Transforming Manufacturing $502M $196M LTM Revenue LTM Gross Profit • Q2 2024 increased, +19% YoY • Q2 2024 Gross Profit, +21% YoY • Q2 2024 Marketplace growth • Q2 2024 Marketplace Gross Margin 33.5% +25% YoY +180bps YoY • Q2 2024 Marketplace
Slide 4: Key Highlights of the Quarter
Xometry | Q2 2024 Earnings ® Key Highlights of the Quarter Strong Q2 2024 Financial Progress on Key Performance Growth Initiatives Financial Outlook Record revenue of $133M driven by 25% Focusing on enterprise as Marketplace Strong durable growth outlook given Marketplace revenue growth. Accounts wi
Slide 5: Significant Growth at Scale
Xometry | Q2 2024 Earnings ® Significant Growth at Scale $ in millions Annual Revenue Quarterly Revenue • $463M FY23 Total Revenue, +22% YoY Growth • $133M Q2 2024 Total Revenue +19% YoY Growth • $395M FY23 Marketplace Revenue • $117M Q2 2024 Marketplace Revenue • +30% YoY Marketplace Revenue Growth
Slide 6: Large and Growing Marketplace of Buyers and Suppliers
Xometry | Q2 2024 Earnings ® Large and Growing Marketplace of Buyers and Suppliers • Marketplace growth has been driven by efficiently matching supplier capacity with buyer demand Active Buyers1,2 Active Suppliers3,4 YoY Growth 27% YoY Growth 36% 61,530 3,429 55,325 48,430 2,529 40,567 2,010 28,130
Slide 7: Expanding Wallet Share, Sticky Customer Base
Xometry | Q2 2024 Earnings ® Expanding Wallet Share, Sticky Customer Base • Growth in Marketplace Accounts with LTM spend of at least $50K reflects Xometry embedding itself in supply chains • Reliable land and expand customer dynamics drive Xometry’s highly reoccurring revenue from existing customer
Slide 8: Rapidly Growing Global Marketplace
Xometry | Q2 2024 Earnings ® Rapidly Growing Global Marketplace Strong International $20.4 Expanding Global Footprint Revenue Growth $19.3 • Q2 2024 +31% $17.6 $15.6 $15.5 EUROPE 2Q23 3Q23 4Q23 1Q24 2Q24 EU HQ: Munich, Germany ASIA ASIA HQ: Rapid Shanghai, China International Expansion and 15 Langua
Slide 9: Increasing Value from Existing Marketplace Accounts
Xometry | Q2 2024 Earnings ® Increasing Value from Existing Marketplace Accounts1 Revenue $ in millions for global accounts New Account Cohorts Through 2023 New Accounts Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 2016 $3.3M $5.4M $7.6M $13.7M $21.1M $30.1M $35.6M $42.2M 2017 $5.6M $8.8M
Slide 10: Strong Gross Profit Growth
Xometry | Q2 2024 Earnings ® Strong Gross Profit Growth $ in millions Annual Gross Profit and Margin Quarterly Gross Profit and Margin Annual Gross Quarterly Margin 26.2% 38.3% 38.5% Gross Margin 39.2% 39.9% Annual Quarterly Marketplace 25.1% 28.2% 30.8% Marketplace 31.7% 33.5% Gross Margin Gross Ma
Slide 11: Strong Marketplace Buyer Metrics
Xometry | Q2 2024 Earnings ® Strong Marketplace Buyer Metrics Improving advertising efficiency Active Buyers1,2 Net Active Buyer Advertising % of Adds2 Marketplace Revenue • Q2 2024 Active Buyer 61,530 58,504 +27% YoY 55,325 52,382 4,042 • Q2 Marketplace 48,340 3,889 Advertising Spend +9% 7.9% YoY 2
Slide 12: Non-GAAP Operating Expenses, Strong Q2 2024 Leverage
Xometry | Q2 2024 Earnings ® Non-GAAP Operating Expenses, Strong Q2 2024 Leverage % of Revenue Sales and Operations and Product G&A1,2 Marketing1,3 Support1,4 Development1 10.8% 12.6% 6.0% 11.7% 20.7% 20.3% 9.7% 9.5% 18.4% 8.8% 10.6% 18.2% 5.0% 5.1% 10.2% 4.5% FY22 FY23 1Q24 2Q24 FY22 FY23 1Q24 2Q24
Slide 13: Improving Operating Leverage
Xometry | Q2 2024 Earnings ® Improving Operating Leverage • Strong Q2 operating leverage driven by U.S. Marketplace. • Strong incremental Adj. EBITDA margin of ~25% in 1H 2024. Adj. EBITDA1 and Margin (18.2)% (11.8)% (5.9)% (6.1)% (2.0)% FY21 FY22 FY23 1Q24 2Q24 1. We define Adjusted EBITDA as net l
Slide 14: Guidance
Xometry | Q2 2024 Earnings ® Guidance $ in millions Q3 2024 NOTE Low High • Expect Q3 2024 revenue growth of 14%-16% YoY to $136-138 million. Expect Q3 2024 Marketplace growth of approximately 18-20% YoY. Revenue $136 $138 • Expect Q3 2024 Adjusted EBITDA loss of $1.5-$3.5 million. • Reaffirm 2024 M
Slide 15: Xometry Overview
Xometry Overview 15 © 2024 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 16: Marketplace: Global Supply Chain Solution
Xometry | Q2 2024 Earnings ® Xometry Marketplace: Global Supply Chain Solution Enabling Buyers to instantly access manufacturing capabilities through our Marketplace. Buyers Suppliers • Digital procurement • Digitally sell capacity • Instant access to supply • Access global demand at chain solutions
Slide 17: Marketplace: Investment Highlights
Xometry | Q2 2024 Earnings ® Xometry Marketplace: Investment Highlights • Leading digital marketplace for custom manufacturing • Large TAM with less than 1% penetration and long runway for growth • Track record of compounding growth in Buyers and Suppliers, driving strong revenue and gross profit •
Slide 18: Leading Digital Marketplace for Custom Manufacturing
Xometry | Q2 2024 Earnings ® Leading Digital Marketplace for Custom Manufacturing 61K+ ~7K $502M $196M Q2 2024 Q2 2024 Active LTM Gross LTM Revenue Active Buyers1 Paying Suppliers2 Profit Large, rapidly Leading global Q2 2024 +19% Q2 2024 +21% growing and Supplier YoY YoY diverse Buyer network base
Slide 19: Less than 1% Penetration Rates, Long Runway for Growth
Xometry | Q2 2024 Earnings ® Less than 1% Penetration Rates, Long Runway for Growth Category Vertical Suppliers CNC $52BN1 Aerospace $103BN2 Small Business Manufacturers 592K3 Toal U.S. Market Xometry Market Share 1. Beroe Inc. 2. Precedence Research 19 © 2024 Xometry and/or its affiliates. All righ
Slide 20: Marketplace Network Effects Drive Compounding Growth
Xometry | Q2 2024 Earnings ® Marketplace Network Effects Drive Compounding Growth YoY Active Buyers1,2 YoY Active Suppliers3 YoY Marketplace Revenue YoY Marketplace Gross Profit 48% CAGR 45% CAGR 51% CAGR 71% CAGR 55,325 3,429 $121 $395 11,527 774 $76 $14 2019 2023 2019 2023 2019 2023 2019 2023 1. W
Slide 21: AI Powers Xometry's Platform
Xometry | Q2 2024 Earnings ® Expanding Our Competitive Moat Selection Expanding categories with extensible tech platform AI Powers Xometry’s Platform Data Geography AI-enabled technology Broadening global optimizes pricing and footprint Machine learning driven matching AI-Powered AI platform powered
Slide 22: Expanding Selection with Extensible Technology Platform
Xometry | Q2 2024 Earnings ® Expanding Selection with Extensible Technology Platform Growing our Marketplace menu 3D Printing Sheet Metal Die Casting 3D Printing Sheet Metal Urethane CNC Casting Urethane Casting CNC Tube Finishing Cutting Injection Molding Die Casting Tube Injection Bending Addition
Slide 23: Strength and Breadth Across Many End Markets
Xometry | Q2 2024 Earnings ® Aerospace & Defense Automotive Consumer Products Education Strength and Electronics & Semiconductors Energy Breadth Across Engineering / Consulting Firm Many End Markets General Manufacturing Government Industrial Equipment Robotics/Automation Medical, Dental & Pharma Ot
Slide 24: AI Fuels Marketplace Gross Margin Expansion
Xometry | Q2 2024 Earnings ® AI Fuels Marketplace Gross Margin Expansion More quotes and orders matched with more suppliers drives higher gross margin Marketplace Gross Margin % 1,2 61,530 ACTIVE BUYERS 55,325 ACTIVE BUYERS 40,567 +10 pts Since 2020 28,130 Add 18,846 Active Buyers Chart 33.5% 30.8%
Slide 25: Thomas: Leading Manufacturing Digital Advertising Platform
Xometry | Q2 2024 Earnings ® Thomas: Leading Manufacturing Digital Advertising Platform Advertising & Marketing Services (AMS) Attractive Advertising Supported Platform Financial Profile AMS Revenue ~$60M FY23. ~5K Premium Paying Suppliers Gross Margin 85%+ 1.4M Registered Users 78K Categories Suite
Slide 26: Significant Monetization and Penetration Opportunities
Xometry | Q2 2024 Earnings ® Significant Monetization and Penetration Opportunities • Enhance experience for both Buyers and Suppliers • Increase Advertiser penetration ~500K and engagement on the platform from ~500K suppliers Suppliers • Improve platform monetization with dynamic bidding platform ~
Slide 27: Path to Profitability
Xometry | Q2 2024 Earnings ® Path to Profitability Demonstrated strong incremental Adj EBITDA margin of ~20-25% Financial Drivers • ~$600M annual revenue run Revenue Adj. EBITDA rate to reach Adj. EBITDA profitability $463 • Expect total Gross Margin of $381 38-40% • Strong Adj EBITDA margin flow th
Slide 28: Clear Strategy for Growth
Xometry | Q2 2024 Earnings ® Clear Strategy for Growth Expanding Buyer Driving deeper Further expanding Growing Enhancing Thomas and Supplier enterprise marketplace internationally Supplier Services networks management menu % of Revenue Gross Margin 40 – 45% Long-Term Operating Expenses 15 – 20% Mar
Slide 29: Appendix
Appendix 29 © 2024 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 30: Adjusted EBITDA Reconciliation
Xometry | Q2 2024 Earnings ® Adjusted EBITDA Reconciliation $ in thousands 1. Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP results of operations. 2. Represents the non-cas
Slide 31: Reconciliation of Non-GAAP Operating Expenses – Sales and Marketing
Xometry | Q2 2024 Earnings ® Reconciliation of Non-GAAP Operating Expenses – Sales and Marketing $ in thousands 1. Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP results of
Slide 32: Reconciliation of Non-GAAP Operating Expenses – Operations and Support
Xometry | Q2 2024 Earnings ® Reconciliation of Non-GAAP Operating Expenses – Operations and Support $ in thousands 1. Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP results
Slide 33: Reconciliation of Non-GAAP Operating Expenses – Product Development
Xometry | Q2 2024 Earnings ® Reconciliation of Non-GAAP Operating Expenses – Product Development $ in thousands 1. Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP results of
Slide 34: Reconciliation of Non-GAAP Operating Expenses – General and Administrative
Xometry | Q2 2024 Earnings ® Reconciliation of Non-GAAP Operating Expenses – General and Administrative $ in thousands 1. Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP resu
Slide 35: Reconciliation of Non-GAAP Cost of Revenue
Xometry | Q2 2024 Earnings ® Reconciliation of Non-GAAP Cost of Revenue $ in thousands 1. Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company’s GAAP results of operations. 35 © 2024 Xom