Hang like her and look like him. Okay. On that note, I think we're going to get going with our next fireside chat. It's my pleasure to welcome the team from Xometry. If you've heard of the conference this year, they've actually been part of this conference every year over the last couple of years. That's been a great consistency, and we always appreciate it when they come. Randy Altschuler, CEO, James Miln, CFO, also Shawn Milne from the IR team here as well. Guys, thanks for coming to the conference. Thanks so much for having us here. Okay. I think I always do like to level set a little bit and give you the opportunity. You know, the company has done so many interesting, innovative things over the last couple of years. Talk a little bit about the journey the company's been on and sort of reflect back a little bit before we have a lot of questions and a lot of conversations about where we're going over the next couple of years. Yeah, look, I mean, just first to level set, you know, 2025 has been a strong year for Xometry where we've seen accelerated growth. I think, you know, that's for a number of reasons. First, we're continuing to penetrate even deeper within our enterprise customers. When we started Xometry, I'm the Co-Founder of the business back in 2013, you know, we obviously started with smaller companies, but as time has developed, we're getting deeper, deeply, more and more deep embedded with larger customers, these enterprise customers. That journey has continued. As we've built technology tools that enable us to embed in those customers, plus we've developed a sales team that has expertise in going to market with enterprise customers, those have grown and grown and are fueling our growth. We expect that trend to continue. We're also seeing a lot more output from our software development and developing our platform, our user experience, the marketplace, the number of things that we can instantly quote for a customer. Our selection, the different options that we're fulfillment options that we're offering, sourcing across the United States, across the world, giving customers that flexibility. Particularly as there's been more and more over the recent years, more and more focus on supply chain resilience, multi-sourcing, concerns about macro issues, Xometry's marketplace is gaining more and more traction because we provide that to people digitally. Also, the trend towards digitization. You're seeing more and more, you've seen that in other industries, but over the last few years and since we started Xometry, that trend is becoming more and more to manufacturing. It's been in so many other industries, but manufacturing largely remains offline. Now that's increasingly, and AI is just accelerating that push. For us, AI is valuable in many places, and we use it. We'll talk later about all the different ways that we use AI on our platform, but just the trend towards AI is good for us, for both our buyers and our suppliers in manufacturing. Understood. You recently welcomed a number of new executives into the company. I've also gotten questions from investors that have seen some of those announcements and tracked such things on LinkedIn. Talk a little bit about who you brought into the organization, why they were the right people, and how those individuals align with where you want to go from a priority and a growth standpoint. Yeah. Look, we started a company, me and Lawrence here, from zero. This is a true startup. We had a wonderful team of folks that helped us get to that $0 to $500 million of revenue. Now, as we're accelerating beyond that, we're going to get to that billion-dollar mark and beyond. It was a good idea now to bring in a different team that was used to larger marketplaces and had scaled way beyond where we are today. Those are the folks I want next to me to help us inform both our product roadmap, our sales roadmap, and how we're going to execute. We made a lot of changes from our CFO, James Miln, who joined us at the beginning of last year. We brought in a new President from Wayfair, Sanjeev Singh Sahni. We brought in a new CTO, Vaidi, a new CMO, Stephanie. Brought in folks. What do they have all in common? They're from larger companies, ones that have multi-billion dollars' worth of revenue, companies that have successfully scaled also in relatively short periods of time, and companies that have product-led growth. Sales teams are critical. They're obviously critical, but have product-led growth and the marketing is layered into helping that journey happen. We're very excited about how many people use Xometry today, but there are potentially millions of buyers out there who are buying manufacturing. We want our numbers to include those, and this is the right team to help make that happen. Great. That's super interesting. Okay. Let's come back to the marketplace. Continue to put up good, strong growth. You had a very good most recent quarter. Talk about the key levers that are driving the momentum around the marketplace and how to think about both sides of the marketplace between buyers and sellers and what some of the building blocks of that momentum are. I think first and foremost, it's our technology that's helped us accelerate growth this year. When we gave our Q2 numbers, we talked about how Q3 started strong as well. As we're delivering that product roadmap, we're getting rewarded for that by our buyers, our customers. That means, as I mentioned before, that means instantly quoting more things. In an instant, I can buy something with more and more complexity. It's talking about offering many different options for customers when they think about sourcing. A lot of trends around, "Hey, I source internationally. Maybe I want to look domestically, or I want to source in multiple locations. Can I do that from my computer? Can I do that from my phone?" Yeah, you can do that with the Xometry marketplace. As we're delivering that, then you're getting more and more. We're embedding more and more within our enterprise customers. When you think about our, we talked about that last year we had over 100 accounts or companies that spent more than $500,000 with us on an LTM basis, and those customers grew 40% last year. Why are they growing 40%? These are some of the largest companies in the world because they see the value of managing their supply chain, which is vast, with the Xometry marketplace. We're giving them tools to make that easier. We're embedding in their procurement software, whether it's Ariba or Coupa, et cetera, so they don't even have to come to the Xometry site to order. Those just reducing friction, making it easier where we have add-ins or plugins to their CAD software. If you're an engineer at one of these large corporations, you can use Xometry's functionality right within the CAD software. Those sorts of deployment of technology are just making it easier for these large enterprise customers to default to using Xometry. Finally, our enterprise sales team, we brought in last year, Subir Dutt, who had come from Google and has vast experience on the enterprise side. We've been investing in our enterprise sales team. You marry that enterprise sales team with our enterprise technology tools, the overall improvement of our marketplace that's helped us do really well. Okay. I do want to maybe just follow up quickly on the enterprise and think about one of the relevant... When you think out over the multiple period of time, what are the key unlocks to scale enterprise into a% of the mix? Because I think you've talked about this on prior earnings calls, right? It's one thing to be one-off buyers, one-off sellers on each side of the marketplace. Building scaled repeat, almost always on business, I think has been a theme you've talked about. Just talk a little bit about what that might look like from a mix perspective. Yeah. Xometry started as being a very transactional business for our customers. One-offs looking for us finance on a one-off basis. The user experience was very one-off. Over time, we've been doing things that, first of all, enable groups of customers who are working together on either an entire product or an assembly to be able to interact with Xometry. We launched something called TeamSpace a couple of years ago, and that's gained, I think we are past 8,500 teams today. That enables groups of engineers, groups of procurement people within companies to work with us. It also enables them to invite other people within the company to join that team. It's a great way organically, like when Slack came out and everybody was inviting each other to join Slack, it's the same thing with TeamSpace. That's one thing that's enabled us to get that tracked from the enterprise buyers. I talked about those integrations, those punch-outs with their ERP systems and the integrations with the CAD files. Also, just the kinds of things people are buying from us. We've moved from one-off to, "Hey, I've got a supply chain here. There are certain categories of things that I'm purchasing on a recurring basis." It could be large multi-year contracts. It could also be just an entire category of things, end-use parts that are critical for the functionality for the success of my own business. I'm going to use the Xometry marketplace to buy those. I'm going to take part of my supply chain and stick it into the Xometry marketplace. That's gaining traction, and that's enabling us to not only grow revenue, but also just become more profitable. We've seen our gross margin spike up nicely. It's just making it easier and easier for our customers to buy and for us to execute. Okay. To Randy's point before, 100 customers over $500,000 spent last year, growing at 40%. We had some case studies that we talked about and show in our investor deck where we have companies in the high single millions of dollars. We believe that with what Randy outlined and the combination of sales and technology, we can get to $10 million plus in those accounts over time. I think that there's a really exciting opportunity as we deliver ourselves as a solution beyond just the transaction, but the solution that Xometry provides for this wide range of needs that there are for custom parts. Okay. I wanted to turn to international. I know you mentioned gross margin there. I do want to come back to that. Before we get there, maybe talk a little bit about international. You've laid out some longer-term targets about where international can get to as a percentage of the mix. You've shown good international results more recently. Talk a little bit about the journey you're on with international and what some of the building blocks you need to put in place to achieve some of those long-term targets on a mix standpoint. Yeah, just to level set, we started international in about 2020, where we had roughly $2 million of revenue. Right now, we're at a $100 million plus run rate. It's grown very nicely over the last few years. Last quarter, we grew, I think, 31% international. Here's what's exciting. As we started in Europe, started in the EU, and we're in the UK now, and we're in most countries within the EU. What's been exciting is the value proposition. Our business model that we have in the United States has resonated just as much in Europe as it does in the US. In fact, I think we scaled to over $100 million in revenue internationally faster than we did here in the United States. The good thing is also we're able to take our tech stack, and this is what's wonderful about being a technology company. You're able to take that tech stack and lift that and put that into new geographies. Now you localize it for language, and you're going to localize it for particular, maybe procurement or payment options that might be specific for a country. There may be certain materials or other things that are, but in general, we're able to scale our technology and bring it into these different geographies. We expanded a couple of years ago into Asia-Pacific. We've got our Chinese marketplace. Again, we're localizing it. We've got a WeChat app. You don't have that equivalent in the United States, and a lot more usage on mobile than you're going to see in Asia than you might see in other countries. We eventually expect international to be up to 30% to 40% of our marketplace revenue. Today, I think last quarter it was in the mid to high teens. Yeah, it was 18% last quarter. We're in 18 languages, multiple currencies. The extensibility, as Randy says, of the platform and the validity of the business model being able to apply globally is exciting. What's exciting to just add to that is, you know, our big customers, most of them are multinational, right? The ability to offer this solution enables us also to be a bigger part of their overall strategy. If you're in multiple locations, you're in multiple countries, larger companies in particular want what's easier. They want great value, they want great delivery, they want reliability. Those things are crucial, but they also want what's easier. If we're that one platform that can help them in many different regions, that's very exciting for them. I just wanted to pick up on one point you made there towards the end. When you try to apply your business model to some of these international markets, are there any differences you call out with respect to either unit economics or payback periods, or things you think investors should keep in mind in terms of scaling the business, and also tying it back to the contribution from a profitability standpoint? Yeah, and we have some segment breakout in our financials, and you'll see there in the last quarter, making really, as we scale the U.S., we're at 5% adjusted EBITDA margin, and we're in investment mode still internationally. When we look at those unit economics, we're seeing a very similar sort of gross margin profile. In fact, international today is a little higher. We feel that we're probably ahead of where we were in terms of U.S., in terms of the revenue pace and the profitability that we're showing. We think it's very, you know, we're going to be able to repeat what we've been seeing in the U.S. as we scale further internationally. Got it. Understood on international. Bringing it back more to the near term, you did outperform on marketplace gross margins this quarter. Talk a little bit about what is embedded in your framework for the business, either in the second half of this year or even going out to 2026, in terms of how marketplace gross margins might evolve. AI really powers the marketplace and the marketplace gross margin. We hit an all-time high in Q2, 35.4%. That's within the long-term range that we've set of 35% to 40%. What's the AI doing? It really is driving our price prediction accuracy and the machine learning with more data and expanding our supplier network helps us match the optimal supplier. Our system then, as we get all the orders in, we're balancing buyer and supplier pricing and conversion rates over time. It's not always going to be linear. Every quarter is not always up and to the right. In fact, we made some deliberate investments in the first quarter of this year that helped accelerate the pace of our learning and liquidity in the marketplace. I think it positioned us well for Q2 and well for being able to satisfy global needs and requirements across different geographies. I think we expect it to continue to improve year over year here for 2025 and continue to just march within that 35% to 40% long-term range. Okay, understood. Eric, I just want to go back to something when we talk about international, and I think it's important, particularly folks who are somewhat newer to our story. Xometry's marketplace is not a unique thing for, like, it doesn't just resonate in the U.S. This is not just a U.S. story. When you think about custom manufacturing, which is a giant market, you have millions of buyers. You have here in the U.S., I think, estimated like 500,000 small manufacturers with an average of less than 20 employees. That is a very similar dynamic you have in most countries around the world. The idea of creating a digital AI-powered marketplace to connect those buyers and suppliers resonates everywhere because everybody has the same problem. It's offline. The pricing's opaque and it's inefficient. It doesn't matter which country you're in. Your ability to speed that up, your ability to create transparency, your ability to have a better outcome, that resonates everywhere. That's one of the many things I think is so powerful about what we're doing. It is truly a, it resonates globally. Okay. No, good clarifying point there. Thanks. I do want to pivot to supplier services, maybe just to set the stage. I'll probably have a few follow-ups, but how are you framing the go-forward strategy for the core supplier services portfolio, including Thomasnet? Yeah, so, you know, a quarter of our supplier services is advertising. Thomasnet is sort of the leading search place for folks who are looking to buy industrial goods. It's got almost 500,000 listed suppliers on Thomasnet, very specific, and it's a company that has a storied history of over 100 years. If you're looking, and very broad, much broader than where Xometry is, but soundly in that industrial category, what we've been focusing on is advancing the technology on Thomasnet for both the searcher and for the advertiser. We talked about last quarter, we've been doing some work on the search end side of things. This quarter, we're beginning to release new things on the advertising side, a new ad server, and this is going to enable us to increase the penetration we have with our advertisers. We have, as I mentioned before, over 500,000 or roughly 500,000 listed suppliers. Today, only about 1% of them, you know, circa 5,000 or less than 5,000 of them are actually buying advertising from us. By updating the advertising technology, the ad server, we're going to be able to sell more inventory, more of our ad inventory, and make it easier for our advertisers to buy it and to get more value for their money. Likewise, as we've been improving the search and there's obviously lots of advances in search that are going on, and we're bringing that more modern search technology to Thomasnet, we're delighting more of the folks who are coming and visiting the demand side. As we're doing both things, we're optimistic that that will have benefits and bring Thomasnet back to growth. Maybe I'll ask two that are sort of double clicks on that. When you think about the friction holding back advertisers today, what do you see as the friction you're solving for that would create the unlock on the advertiser demand side? The advertiser loves Thomasnet in the sense that it's got this very strong brand. They know that the searches that are coming are good searches. There's a good, they can get a good ROI there. The technology was outdated. They're used to, you know, Google AdWords and they're spending money in other platforms that just make it a lot easier for them to deploy their dollars and easier for them to pay for performance. Ultimately, that's what people want to do. They pay for performance. It's important for us to update our technology to give them that option. Self-service. Thomasnet was historically very dependent on a sales team. Obviously, the sales team remains important, but how do I just get it done myself? Yeah, how do I unlock these things myself? Those are the improvements we're making. We're using proven technology to do that. As I said, those are beginning to be released now. That will be very helpful just to make it easier for advertisers to engage and get value for their money. Just to put a finer point on it, when you think about investing in this transition for Thomasnet, any elements you can help us with in terms of the duration of the investments that need to be made relative to the yield or the output on those investments over the next couple of years? Yeah, I mean, we're doing that within our P&L right now. You know, within the guidance that we gave, you can see that we're finding opportunities to find saving in Thomasnet that we have done over the last couple of years that helped us sort of reinvest those dollars in this opportunity. We'll update you as we go into the new year when we probably get into the heart of the transition. Overall, I think as Randy was saying, what this is really doing, we've got about 80,000 different categories on Thomasnet. The way, you know, with legacy technology and more driven manually, that limited how many of those categories in effect we were selling. With technology, we can just open that up. That spending investment, it's already been in our numbers. I mean, we've been doing this since last year. It's no big giant number coming up with something like that. We've been spending steadily, investing in the business the same way we've been investing in international and some of our other technology initiatives. We're obviously getting more and more profitable to our bottom line, but we're also alongside of that investing in different exciting options. Growing Thomas is one of those that's almost an 88% or 89% gross margin business. Those investments we think that we've been, again, doing since last year, we think are very worthwhile. Okay. Just to put the last point on this before we pivot, play out to the end state, how do we think about the flywheel effect of what can be scaled and deployed at Thomasnet, feeding back to the marketplace years down the road? How do you conceptualize what this looks like in its end state? Yeah, so Thomasnet has, you know, over 1 million registered users, has, as I mentioned before, been around a long time, has high awareness in that industrial market of it. Xometry is a younger company with a lot less active buyers today. The ability to convert some of those Thomasnet users to be Xometry buyers is very attractive. As we improve the Thomasnet experience, that will have a knock-on impact of people being able to use the broader Xometry ecosystem. Likewise, as we expand the categories of things that we can instantly quote, as we expand the selection on Xometry.com, the Thomasnet suppliers are great providers of those services. We're a two-sided marketplace. We need people to actually make this stuff. Thomasnet has got that, and they've got all these other categories already filled out with some wonderful manufacturers. There's a great synergy there for as well. Ultimately, when you think about our buyer, we want them to have one shopping cart, whether they buy from Xometry or they want to buy from somebody from directly on Thomasnet. When you think about, you know, marketplaces like Amazon, you know, when it's from Amazon or fulfilled from one of their providers, but it's one shopping cart, one experience, make it really easy, the trust, reliability, those things that customers want to have, we want to have that one experience for them, be that one-stop shop for them. Understood. I'll joke that because it's a technology conference, I have to ask about AI. I think I'm contractually obligated to do that. You guys were talking about AI before a lot of other people were talking about AI. You should get a nod in that direction from me because I've known you a long time. Talk a little bit about how AI is at the center of what you do and how AI is sort of a component of a lot of what you're building from a strategic priority standpoint when you think out over the next couple of years. Yeah, so the very heart of, you know, one of the key things we do at Xometry is we provide liquidity for buyers and suppliers. We create the price. Now that may seem like a trivial thing because in traditional e-commerce, you know, you're buying things, of course there's a price, but in this case, there are no SKUs. It's custom manufacturing. The customer is asking for something that may have never been produced before. Historically, to get that price has taken days, weeks, and it's been very difficult. We use AI, and we've done that from, you know, as we started the company to actually create that instant price. We also then use the AI to optimize the match between the buyer of the manufacturer and the supplier of the manufacturing. Finally, we're using that AI also to give a price for the supplier as well. We're giving both the buyer and the supplier prices, and we're optimizing that match. The cool thing is, because we're using AI, which learns from data, as we've been getting more and more data, we've been getting smarter and smarter. You can see that in our bottom line as our gross margins have been improving over time. You're also seeing that as, again, this year as growth has accelerated, you're seeing that we're getting better and better with our pricing. We're satisfying more of our buyers and our suppliers with that. That's been the foundation of Xometry. The great news now is we're investing in AI across many parts of our ecosystem. We talked about taking important information from drawings that our customers have and extracting those automatically and using that information. I mentioned our new President, Sanjeev Singh Sahni, and Vaidi, our new CTO. They are very focused on embedding AI and creating benefit for it, both for our customers and suppliers, but also for our own internal operations across our entire ecosystem. There isn't one group at Xometry right now that's working on embedding AI. It's literally every department within Xometry. Maybe a follow-up there, because this has been a recurring theme of the conference, just elements of deploying AI internally. What is your working framework that you provide investors on how AI might either allow you to expand margins and/or, you know, fuel further or accelerated growth investments and hold margins as you think out over the next couple of years? Anything there you've got from a framework standpoint? I mean, I think just building on what Randy was saying, I think at the core, it's a core driver of the gross margin. In terms of being smarter about matching the buyer to the supplier and then helping us optimize that, which comes through the gross profit dollars that then we can choose to then be smarter about the pricing both to the buyer and the supplier and optimize that. I think we are very focused, as Randy was saying, on how it can help us on the productivity side across all of our organizations. I think across product and technology, across customer service, and even into our G&A functions. As we look at our incremental hitting our incremental margins of 20% incrementally, we're excited about what that can allow us to redeploy into investments in the business. Okay, understood. Maybe just sticking with you, James, before I bring it home with Randy, talk a little bit. We talked about margins. We talked a lot about some of the investments you're making. Talk a little bit about the capital allocation framework that the company operates under, just so you can level set with the investors here. Yeah, thanks, Eric. We've been a very exciting time for Xometry as we continue to see great growth. In fact, as Randy said, accelerated growth this year and solidify our profitability. Adjusted EBITDA, we turned profitable when we hit $600 million at the end of last year run rate. We've continued to deliver on that path this year. What we said is as we scale to a billion, we'd expect incremental adjusted EBITDA margins of 20%. I think as we put that through, that means we're close here to then cash flow positive. That puts us in a very strong position as we're seeing robust growth and also improving profitability and cash flow. In fact, we were able to have a very successful refinancing of a convertible debt a few months ago. That's extended the maturity of most of that debt out to 2030. That was about liability management in terms of there are a lot of risks in the macro and a lot of variability out there. We want to be making sure that we are well, I've got a strong balance sheet as we execute on the organic opportunities that are ahead of us. I think as we move forward, part of our strategy will also be as we crystallize what the team can deliver, how can we supplement that maybe with some tuck-in M&A, which, with a strong balance sheet of over $200 million in cash today, we're in a good position should we have something to execute on. I think that's how we think about it as we're really focused on scaling to a billion and really to multiple billions after that and generating our own free cash flow. Great. Okay. Randy, we talked a lot about proof points you've gotten from where the company's been over the last couple of years and some of your key initiatives going forward. Bring it all together when you think about what you're trying to build for the long term. What would you frame as your two or three biggest strategic priorities, and how do they come back to things that we can monitor from the outside in that you're sort of going to build, deploy, and scale when you think about where you want to take the company? Look, as I mentioned before, this is a huge space. The total addressable market is gigantic. Every day we're building that competitive moat with the data that we're gathering, with the networks of buyers and suppliers, with the technology that we're embedding in our customers. Our vision is that in this huge space, if you're a buyer and you want to buy custom manufacturing, your default is to come to Xometry because we have the widest selection. We have the most reliable delivery. We have leading prices and lead times of the options. It's just the simplest way to buy and the most reliable way to buy. Large companies in particular are taking entire portions of their supply chain and utilizing the Xometry marketplace for fulfillment for them. On the flip side, for suppliers, we are the go-to place. Of course, I'm working with a Xometry ecosystem. I'm buying advertising on Thomasnet. I'm a partner on Xometry.com. By the way, I'm sometimes using Xometry for my own orders. It's kind of expanding what I can. With the software, we have something called TeamSpace, a Workcenter. We give away free software for our suppliers to operate their businesses. I think about like a Shopify or things like that or what Toast does for restaurants. We give that, that they're using that software to run their entire business, not just the business that they generate from Xometry, but their whole business. We're giving them really good free software to do that. In some sense, we're their operating system to grow their business because these businesses want to manufacture. If we can get rid of all the noise, the same way the customer doesn't want friction and noise and they want ease of use, our suppliers or manufacturers, they want to make stuff. They want to fulfill orders. The easier we can make it for them, the more that they can grow, the more profitable they can be. That's at the heart of these small, medium-sized businesses. Their P&L and their business P&L are almost one. They want to grow, but they also want to be profitable. We can help make that happen. As time goes on, I want to make that easier and easier for them. Okay. We covered a lot of ground. I want to thank both you guys for being part of the conference again this year. Please join me in thanking Xometry. Thank you, Eric.