Slide 1: AI-Enabled Marketplace Digitizing Manufacturing
AI-Enabled Marketplace Digitizing Manufacturing Q2 2023 Earnings Presentation | August 9, 2023 © 2023 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 2: Safe Harbor
Xometry | Q2 2023 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 2023 Earnings Rapid Growth, Digitizing & Transforming Manufacturing $418M $160M LTM Revenue LTM Gross Profit • Q2 2023 increased, +16% YoY • Q2 2023 Gross Profit, +16% YoY • Q2 2023 Marketplace growth • Q2 2023 Marketplace Gross +24% YoY Profit +34% YoY 48K+ 7.5K+ Q2 2023 Active Buyers1
Slide 4: Growth Fueled by Marketplace-Powered AI
Xometry | Q2 2023 Earnings Growth Fueled by Marketplace-Powered AI YoY Active Buyers1 YoY Marketplace Revenue YoY Marketplace Gross Profit 52% CAGR 59% CAGR 82% CAGR 40,664 $303.1 $86.8 11,527 $75.5 $14.4 2019 2022 2019 2022 2019 2022 1. We define Active Buyers as the number of Buyers who have made
Slide 5: Significant Growth at Scale
Xometry | Q2 2023 Earnings Significant Growth at Scale $ in millions LTM Revenue $111.0M Quarterly Revenue and YoY Growth • $343.3M Marketplace Revenue • $93.5M Marketplace Revenue • +35% YoY Marketplace Revenue Growth • +24% YoY Marketplace Revenue Growth • $17.5M Supplier Services Revenue $418.1 $
Slide 6: Large and Growing Marketplace of Buyers and Suppliers
Xometry | Q2 2023 Earnings Large and Growing Marketplace of Buyers and Suppliers Xometry's growth has been underpinned by efficiently matching supplier capacity with buyer demand Active Buyers1 Active Suppliers2 YoY YoY 63% 49% 45% 44% 82% 43% 22% Growth Growth 48,294 2,447 ’19 – ’22 CAGR ’19 – ’22
Slide 7: Large, Sticky Customer Base
Xometry | Q2 2023 Earnings Large, Sticky Customer Base • Growth in Accounts with LTM spend of $50K reflects Xometry successfully embedding itself in customer supply chains • Reliable land and expand customer dynamics drive Xometry’s highly reoccurring revenue from existing customers Accounts with LT
Slide 8: Rapidly Growing Global Marketplace
Xometry | Q2 2023 Earnings Rapidly Growing Global Marketplace International Revenue $33.2 Expanding Global Footprint and Growth International Revenue +104% YoY $16.3 $15.6 $7.9 +96% YoY EUROPE $3.1 EU HQ: Munich, FY20 FY21 FY22 2Q22 2Q23 Germany ASIA ASIA HQ: Shanghai, China International Revenue Sp
Slide 9: Increasing Value from Existing Marketplace Accounts
Xometry | Q2 2023 Earnings Increasing Value from Existing Marketplace Accounts1 Revenue $ in millions for global accounts New Account Cohorts Through 20202 New Account Cohorts Through 2022 New 2020 New 2022 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Accounts
Slide 10: Strong Gross Profit Growth
Xometry | Q2 2023 Earnings Strong Gross Profit Growth $ in millions Annual and LTM Gross Profit and Margin Quarterly Gross Profit and Margin • 31.7% Marketplace Gross Margin • 79.8% Supplier Services Gross Margin 18.4% 23.5% 26.2% 38.7% 38.2% 39.4% 39.2% $43.6 $159.9 $37.7 $147.6 +34% YoY +51% YoY M
Slide 11: Non-GAAP Operating Expenses, Improving Leverage
Xometry | Q2 2023 Earnings Non-GAAP Operating Expenses, Improving Leverage % of Revenue Sales and Operations and Product G&A1,2 Marketing1,3 Support1, 4 Development1 13.2% 13.0% 10.8% 7.1% 12.5% 10.3% 10.4% 20.4% 9.7% 9.6% 11.5% 19.6% 18.4% 6.1% 6.0% 17.4% 5.4% 5.4% 15.4% 8.1% FY20 FY21 FY22 1Q23 2Q
Slide 12: Improving Operating Leverage
Xometry | Q2 2023 Earnings Improving Operating Leverage Adj. EBITDA1 and Margin (18.2)% (16.6)% (11.0)% (11.2)% (7.8)% FY20 FY21 FY22 1Q23 2Q23 1) We define Adjusted EBITDA as net loss, adjusted for interest expense, interest and dividend income and other expenses, income tax expense, and certain ot
Slide 13: Path to Adjusted EBITDA Profitability
Xometry | Q2 2023 Earnings Path to Adjusted EBITDA Profitability $ in millions Q4 22 Q1 23 Q2 23 2H of 2023 Focus • Higher $ growth in International revenue in 2H vs 1H Revenue $98.2 $105.3 $111.0 • Strong Active Buyer growth • Increasing Active Paying Suppliers as a result of investment in ThomasNe
Slide 14: Guidance
Xometry | Q2 2023 Earnings Guidance $ in millions Q3 2023 FY 2023 Low High Low High Revenue $119 $121 $464 $474 Adjusted EBITDA $(6.5) $(5.5) $(27.0) $(25.0) Note: Xometry’s third quarter and full year 2023 guidance reflects the impact of exiting the supplies business in the U.S. lowering revenue by
Slide 15: Financial Guidance
Xometry | Q2 2023 Earnings Xometry Financial Guidance $ in millions Total Revenue Adjusted EBITDA and Margin1 $464-474 (18.2)% (11.0)% (5.3)%-(5.8)% $381.1 FY Guidance FY 2021 FY 2022 2023 YoY Growth $218.3 22-24% $(25)-(27) FY 2021 FY 2022 FY Guidance $(39.8) 2023 $(41.8) 1) We define Adjusted EBIT
Slide 16: Xometry Overview
Xometry Overview 16 © 2023 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 17: Manufacturing is a Massive, Highly Inefficient Market
Xometry | Q2 2023 Earnings Manufacturing is a Massive, Highly Inefficient Market Buyer Pain Points Supplier Pain Points Highly fragmented, regionalized base of Geographic isolation and limited access to manufacturers; 75% of American customers manufacturers have fewer than 20 employees Chaos of manu
Slide 18: Xometry's AI-Enabled Marketplace
Xometry | Q2 2023 Earnings Xometry Marketplace AI-powered platform for Buyers to access custom manufacturing Xometry’s AI-Enabled ThomasNet Marketplace Marketing and growth Digitizes solutions for Suppliers Manufacturing Workcenter Business and workflow management platform for Suppliers 18 © 2023 Xo
Slide 19: The Marketplace for Custom Manufacturing
Xometry | Q2 2023 Earnings The Marketplace for Custom Manufacturing Travel Retail Payments Transportation Manufacturing 19 © 2023 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 20: Artificial Intelligence is at the Heart of Xometry's Platform
3D Geometry and Feature Recognition Xometry | Q2 2023 Earnings enhancing pricing accuracy and identifying issues Artificial Matching Intelligence is Instant pricing and lead of buyers and time quotes for suppliers based on at the Heart buyers and suppliers in Competitive Moat with Millions of Data I
Slide 21: AI-Enabled Extensible Platform
Xometry | Q2 2023 Earnings AI-Enabled Extensible Platform CNC Machining Assemblies and Sheet Metal Weldments Fabrication • Uniting AI / ML technology on a cloud-based marketplace that provides buyers access to Urethane Injection thousands of vetted suppliers worldwide Casting AI Technology Molding •
Slide 22: Extensible Platform Providing One-Stop Shop
Xometry | Q2 2023 Earnings Extensible Platform Providing One-Stop Shop Xometry’s marketplace supports major industries and manufacturing processes across North America, Europe, and Asia Prototyping Production Aerospace Medical Retail Test Parts End Market Parts Robotics and Tech The Xometry marketpl
Slide 23: Extensible Marketplace
Xometry | Q2 2023 Earnings Extensible Marketplace Xometry’s marketplace supports production across many industries and manufacturing processes Customer Industry Process Description Agriculture Multi-technology and assembly Full electro-mechanical robotic assemblies Aerospace and Defense CNC Landing
Slide 24: Growing Customer Share of Wallet
Xometry | Q2 2023 Earnings Growing Customer Share of Wallet From prototype to production g tampin Die C Sh e Metal S Fa et & astin n br T sio ica ub g t ru tio e n Ex t CNC aterje Mac r&W Lase Cutting hinin g Shee t As we leverage 500K Suppliers on ThomasNet, we will meet even 3D Pr inting Tube Cutt
Slide 25: Realizing an Effective Land and Expand Strategy
Xometry | Q2 2023 Earnings Realizing an Effective Land and Expand Strategy Annual spend ($ in thousands) Global E-Commerce Leader Government Agency Multinational Tech Conglomerate Electric Vehicle Manufacturer 223% CAGR 415% CAGR 268% CAGR 121% CAGR $6,774 $5,683 $1,158 $1,183 $2 $2 $2 $22 2015 2022
Slide 26: Platforms that Enable Suppliers to Grow and Manage Their Business
Xometry | Q2 2023 Earnings Platforms that Enable Suppliers to Grow and Manage Their Business Operations Marketing Financial Workcenter is a cloud-based ThomasNet subscription-based Financial solutions, including Advanced platform that enables Suppliers to advertising and marketing services, Card and
Slide 27: Significant Opportunities for Long-Term Growth
Xometry | Q2 2023 Earnings Significant Opportunities for Long-Term Growth 2023 Strategy for Growth 2022 • Launched Xometry UK Expand extensible marketplace • Further EU expansion via with XOM AI acquisition of Tridi • Expansion of Supplier • Introduced team functionality services and marketing via f
Slide 28: Appendix
Appendix 28 © 2023 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 29: Adjusted EBITDA Reconciliation
Xometry | Q2 2023 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 30: Reconciliation of Non-GAAP Operating Expenses – Sales and Marketing
Xometry | Q2 2023 Earnings Reconciliation of Non-GAAP Operating Expenses – Sales and Marketing $ in thousands (3) (4) (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 31: Reconciliation of Non-GAAP Operating Expenses – Operations and Support
Xometry | Q2 2023 Earnings Reconciliation of Non-GAAP Operating Expenses – Operations and Support $ in thousands (3) (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 resul
Slide 32: Reconciliation of Non-GAAP Operating Expenses – Product Development
Xometry | Q2 2023 Earnings Reconciliation of Non-GAAP Operating Expenses – Product Development $ in thousands (3) (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 – General and Administrative
Xometry | Q2 2023 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 resul
Slide 34: Reconciliation of Non-GAAP Cost of Revenue
Xometry | Q2 2023 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. 34 © 2023 Xome
Slide 35: Adjusted EBITDA Reconciliation
Xometry | Q2 2023 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