Slide 1: AI-Enabled Marketplace Digitizing Manufacturing
AI-Enabled Marketplace Digitizing Manufacturing Q3 2023 Earnings Presentation | November 9, 2023 © 2023 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 2: Safe Harbor
Xometry | Q3 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 | Q3 2023 Earnings Rapid Growth, Digitizing & Transforming Manufacturing $433M $165M LTM Revenue LTM Gross Profit • Q3 2023 increased, +15% YoY • Q3 2023 Gross Profit, +13% YoY • Q3 2023 Marketplace growth • Q3 2023 Marketplace Gross +22% YoY Profit +25% YoY 52K+ 7.4K+ Q3 2023 Active Buyers1
Slide 4: Key Highlights of the Quarter
Xometry | Q3 2023 Earnings Key Highlights of the Quarter Strong Q3 2023 Financial Significant Progress Accelerating Growth & Operating Performance with 5-Point Strategic Plan Leverage Strong 22% Marketplace revenue growth Increasing focus on Top 200 Accounts; launched Accelerated YoY revenue growth;
Slide 5: Significant Growth at Scale
Xometry | Q3 2023 Earnings Significant Growth at Scale $ in millions LTM Revenue $119M Quarterly Revenue and YoY Growth • $362M Marketplace Revenue • $102M Marketplace Revenue • +27% YoY Marketplace Revenue Growth • +22% YoY Marketplace Revenue Growth • $16.5M Supplier Services Revenue, flat QoQ Pro
Slide 6: Large and Growing Marketplace of Buyers and Suppliers
Xometry | Q3 2023 Earnings Large and Growing Marketplace of Buyers and Suppliers • Xometry's growth has been underpinned by efficiently matching supplier capacity with buyer demand • Q3 2023 record additions in Net Active Buyers (+4,173) Active Buyers1 Active Suppliers2 YoY 63% 49% 45% 43% YoY 82% 4
Slide 7: Large, Sticky Customer Base
Xometry | Q3 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 | Q3 2023 Earnings Rapidly Growing Global Marketplace International Revenue $33.2 Expanding Global Footprint Growth +104% YoY $16.3 $15.5 $8.7 +78% YoY EUROPE $3.1 EU HQ: Munich, FY20 FY21 FY22 3Q22 3Q23 Germany ASIA ASIA HQ: Shanghai, China International Revenue Split by $141M $433M 14 Lang
Slide 9: Increasing Value from Existing Marketplace Accounts
Xometry | Q3 2023 Earnings Increasing Value from Existing Marketplace Accounts1 Revenue $ in millions for global accounts New Account Cohorts Through 2022 New Accounts Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 2016 $3.3M $5.4M $7.6M $13.7M $21.1M $30.1M $35.6M 2017 $5.6M $8.8M $11.6M $16.1M $
Slide 10: Strong Gross Profit Growth
Xometry | Q3 2023 Earnings Strong Gross Profit Growth $ in millions Annual and LTM Gross Profit and Margin Quarterly Gross Profit and Margin • 31.1% Marketplace Gross Margin • 87.2% Supplier Services Gross Margin 18.4% 23.5% 26.2% 38.7% 38.1% 39.5% 38.9% $46.2 $165 $40.9 $148 +25% YoY +25% $57.1 Mar
Slide 11: Strong Marketplace Metrics
Xometry | Q3 2023 Earnings Strong Marketplace Metrics Improving Advertising Efficiency Active Buyers Net Active Buyer Advertising % of Adds2 Marketplace Revenue 4,173 12.9% 4,052 • Q3 2023 record 52,467 3,875 48,294 additions in Net 44,716 3,578 3,298 Active Buyers 40,664 9.9% 9.4% 36,789 • Efficien
Slide 12: Non-GAAP Operating Expenses, Improving Leverage Across Every Category
Xometry | Q3 2023 Earnings Non-GAAP Operating Expenses, Improving Leverage Across Every Category % of Revenue Sales and Operations and Product G&A1,2 Marketing1,3 Support1,4 Development1 13.2% 13.0% 10.8% 12.5% 10.3% 10.4% 6.1% 6.0% 20.4% 11.5% 19.6% 9.6% 5.4% 5.4% 10.8% 18.4% 8.9% 17.4% 17.8% 4.9%
Slide 13: Significant Reduction in Adjusted EBITDA Loss
Xometry | Q3 2023 Earnings Significant Reduction in Adjusted $2.7M EBITDA Loss Gross Profit Q3 2023 Adjusted EBITDA QoQ Bridge 51% Reduction $(0.7)M S&M Investment • Enterprise investments Sales & Mktg Q2 2023 Gross Profit Investment Op Exp Savings Q3 2023 $2.7 $2.5 $2.5M Op Ex Savings1 • Exit of su
Slide 14: Improving Operating Leverage
Xometry | Q3 2023 Earnings Improving Operating Leverage Adj. EBITDA1 and Margin (18.2)% (11.0)% (11.2)% (7.8)% (3.5)% FY21 FY22 1Q23 2Q23 3Q23 1) We define Adjusted EBITDA as net loss, adjusted for interest expense, interest and dividend income and other expenses, income tax provision (benefit), and
Slide 15: Guidance
Xometry | Q3 2023 Earnings Guidance $ in millions Q4 2023 Low High Revenue $126 $130 Adjusted EBITDA $(2) $0 Note: Reconciliation of Adjusted EBITDA on a forward-looking basis to net loss, the most directly comparable GAAP measure, is not available without unreasonable efforts due to the high variab
Slide 16: Xometry Overview
Xometry Overview 16 © 2023 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 17: Xometry is Digitizing Manufacturing: Solutions for Buyers and Suppliers
Xometry | Q3 2023 Earnings Xometry is Digitizing Manufacturing: Solutions for Buyers and Suppliers Marketplace Supplier Services 52K+ Active Buyers1 7.4K+ Active Paying Suppliers AI-powered platform for Buyers to access custom manufacturing Advertising & Marketing and Financial Services 1. Active Bu
Slide 18: Custom Manufacturing is a Massive, Highly Inefficient Market
Xometry | Q3 2023 Earnings Custom Manufacturing is a Massive, Highly Inefficient Market Buyer Pain Points Supplier Pain Points Highly fragmented US manufacturing (600K+ Geographic isolation and limited access to Suppliers); 75% have <20 employees customers Inefficient, procurement process; difficult
Slide 19: Artificial Intelligence is at the Heart of Xometry's Platform
Xometry | Q3 2023 Earnings Expanding Our Competitive Moat Artificial Selection • Extensible technology Intelligence is platform adding manufacturing processes with no CAPEX at the Heart of Xometry’s Data Geography Platform • Machine learning continuing to improve • Broadening global footprint pricin
Slide 20: Growth Fueled by AI Powered Marketplace
Xometry | Q3 2023 Earnings Growth Fueled by AI Powered Marketplace 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 $14.4 2019 2022 2019 2022 2019 2022 1. We define Active Buyers as the number of Buyers who have made
Slide 21: Land and Expand Strategy
Xometry | Q3 2023 Earnings Land and Expand Strategy Growing Wallet Share with Largest Accounts Annual spend ($ 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
Slide 22: Thomas: A Leading Manufacturing Sourcing Platform
Xometry | Q3 2023 Earnings Thomas: A Leading Manufacturing Sourcing Platform Advertising & Marketing Services (AMS) Attractive Advertising Supported Platform Financial Profile AMS Revenue ~$64M TTM. 5K+ Premium Paying Suppliers (Annual Subscription) Gross margin 85%+ 1.4M Registered Users 79K Catego
Slide 23: Significant Penetration & Growth Opportunities
Xometry | Q3 2023 Earnings Significant Penetration & Growth Opportunities • Enhance experience for both Buyers and Suppliers • Grow leads and improve monetization with modernized pay-for- 500K performance ad platform Suppliers • Drive new paying Suppliers through revamped sales and product 5K+ Q3 20
Slide 24: Growth and Long-Term Margin
Xometry | Q3 2023 Earnings Growth and Long-Term Margin Expand extensible marketplace Long-Term Margin Outlook2 with XOM AI Attract new Buyers and expand % of Revenue Sustained enterprise offerings Profitable Gross Margin Growth Rapid International expansion 40 – 45% Underpinned by… Operating Expense
Slide 25: Appendix
Appendix 25 © 2023 Xometry and/or its affiliates. All rights reserved. Confidential.
Slide 26: Adjusted EBITDA Reconciliation
Xometry | Q3 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 27: Reconciliation of Non-GAAP Operating Expenses – Sales and Marketing
Xometry | Q3 2023 Earnings Reconciliation of Non-GAAP Operating Expenses – Sales and Marketing $ in thousands (3) (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
Slide 28: Reconciliation of Non-GAAP Operating Expenses – Operations and Support
Xometry | Q3 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 29: Reconciliation of Non-GAAP Operating Expenses – Product Development
Xometry | Q3 2023 Earnings Reconciliation of Non-GAAP Operating Expenses – Product Development $ in thousands (3) (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 resu
Slide 30: Reconciliation of Non-GAAP Operating Expenses – General and Administrative
Xometry | Q3 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 31: Reconciliation of Non-GAAP Cost of Revenue
Xometry | Q3 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. 31 © 2023 Xome