Welcome to the Xometry presentation. I'm Brian Drab, the Industrial Technology Analyst at William Blair. I, of course, have to remind you that you can find a full list of disclosures on our website, williamblair.com. I've covered Xometry actually since a few years before the IPO. It's a very special company. For those of you that are not familiar, just give you 10 seconds, but it's a manufacturing marketplace that connects product developers and manufacturers with a network of about 5,000 manufacturing partners, and it's really the only company doing what they do and the way they do it in the world. They've been growing their user base at about 25% or greater for years. Very interesting company, it has been one of my top picks for a long time. Actually, also another exciting thing that I was thinking about this morning is that from your presentation in 2024 at this event, the stock is up about 500%. Congratulations. We have with us today CEO Randy Altschuler, President Sanjeev Singh Sahni, who is taking over the CEO role on July 1st, and Shawn Milne, who's Vice President of Investor Relations. Thank you all for being here. I'll turn it over to Randy. Great. Thank you. It's great to meet everybody, and it's great to be here today. William Blair has been a great ally of Xometry from the very beginning. We actually were at this conference even before we went public, so we're very grateful for their support and Brian Drab in particular, who knows our company, I think, better than anybody. With that, we're going to start with a quick video, and then we'll jump into our presentation. In order to build the products that surround us every day, product designers develop unique parts and assemblies and seek the best way to manufacture them. Most manufacturing is done by a fragmented global market of millions of small and medium-sized manufacturers. Finding the right one can be a time-intensive process, taking days or weeks, with prices and lead times varying greatly. Manufacturing suppliers also struggle to find the most profitable work for their capacity, as their resources and geography often limit them. Xometry's machine learning AI solves this problem by unlocking instant access to a global marketplace of thousands of manufacturers. Simply upload your CAD models to the platform and specify your manufacturing needs. This prompts Xometry's proprietary AI to analyze the geometries and features of each part file based on millions of data inputs. Within seconds, Xometry's design for manufacturability AI computes and produces pricing, lead time options, and manufacturing process recommendations. Xometry's AI utilizes machine learning, which trains on thousands of features and analyzes similar types of previously completed parts and orders. Xometry's matching AI agent pairs the work to an optimal supplier, ensuring that high-quality parts are produced cost-effectively and on time. It scans thousands of vetted suppliers in Xometry's global network, using its knowledge of each supplier's unique capabilities. With each transaction, Xometry's AI learns more about each supplier's expertise and how to pair them with the right customer projects and optimize for repeat work and profitability. This increases supplier success rates and customer satisfaction. Through this innovative AI-driven approach, along with the strength of an expanding global supplier network, Xometry provides its customers with access to a resilient supply chain that can handle unexpected disruptions. This groundbreaking platform lays the foundation for the future of streamlined manufacturing, optimized and powered by Xometry's AI. Xometry, where big ideas are built. Great, thank you. As Brian mentioned earlier, Xometry is the leading marketplace for custom manufacturing. As you can imagine, that's a humongous market when you think about manufacturing overall, $17 trillion TAM. Within that, you've got $275 billion that's focused on custom parts. These are not commodity parts, these are not off-the-shelf parts. These are parts that are very specific for a specific customer use. Even though we're very excited about the growth, and we'll show some statistics that we've had at Xometry, there's still lots and lots of growth to come. Today, we've only penetrated less than 1% of this massive market that today remains largely offline. These statistics say it all. We went public in 2021. As you can see, our marketplace revenue has grown almost 40% year-over-year. Gross profit has grown even faster, and we'll talk a little bit about that as we're an AI-powered marketplace, and we're training our models. Because of that, we're becoming increasingly profitable from that. You'll see that each year since we went public, you've seen a step-up of 100+ basis points in our gross margins. The number of buyers in our marketplace, Brian also alludes to this, that's also been growing rapidly. More and more people are coming and using our marketplace, and we've also been growing the amount that they're spending with us. Share of wallet is growing at the same time as the number of active buyers are. The number of active suppliers, so the manufacturers who are joining us from across the United States and across the world, and we have a very unique platform. We're very fortunate that a lot of that growth, particularly on the supplier side, just happens organically. Word of mouth, people come to us. We are the leader, and they want to be part of this thriving marketplace. The last quarter, Q1, was a record quarter for Xometry across virtually every metric. $205 million of revenue. That was 40% marketplace growth. We've now had three quarters of accelerating growth. Record gross profit. That marketplace gross profit actually grew 53% year-over-year. Just again, a reflection that we're getting smarter and smarter with our algorithms, how we should price to our customer, what prices we should give our suppliers, and what those matches should be. Record EBITDA. Again, we're getting more and more profitable. Record number of active buyers and the most number of net adds, new active buyers that we've had for almost nine quarters. Acceleration of people coming to marketplace and then continuing to grow our active supplier base. One other thing that we announced that was very exciting on our Q1 earnings was our partnership with Siemens. Siemens, obviously a huge conglomerate based in Germany, but also one of the world's largest providers of industrial software. They have a huge install base. Again, we're very proud we've got 85,000 active buyers, but Siemens has millions of users. We've built a partnership with them where Siemens is going to integrate the Xometry marketplace within Siemens software. It's going to be native to Siemens CAD software. We're going to be embedded in their PLM software. This just gives us access in the United States and across the world to a huge user base that we don't have today. Alongside of that announcement of that partnership to signal that they're serious about it and show their commitment, Siemens actually bought $50 million of Xometry common stock, Class A common stock. We're glad to have them as a shareholder. We were just there, me and Sanjeev, at their huge user conference in Detroit earlier this week. I'm going to transition and let Sanjeev come up here. This is a good point because, since Sanjeev joined us in January of last year, we've been focused on product-led growth at Xometry, letting our technology win over buyers, allow us to grow our share of wallet. The proof is in the pudding. Siemens wanted to integrate with us because we have that leading software, because they want to provide extra value for their users. Our metrics across the board have been accelerating as Sanjeev's influence has continued to build within our company. Within that, I'm going to hand it over to Sanjeev Singh Sahni, our incoming CEO. Thank you, Randy. Maybe given I haven't met most of you before, a quick intro about myself. I joined early last year as Randy mentioned. I came in from Wayfair, where I was here just before Xometry. At Wayfair, I led their B2B business, and that's been the thread all along my career. I led the foundation of their freight forwarding and B2B capability for their suppliers before that. Prior to coming to Wayfair, I spent 10 years in consulting at McKinsey & Company, where I served clients all around the world on growth and adjacency topics. When I came to Xometry and I was having the initial conversations with Randy, to me, it became very obvious very early that this was a company where data science, machine learning was not a way to go faster. It was the way we create value, period. The company has been changing the way custom manufacturing is done in the world by actually applying data science, machine learning for over a decade to files that customers have been providing to us. The amount of proprietary data that the company has had based on all of the millions of parts that have been quoted on the platform is just humongous. Take that leverage and apply that to a massively under-penetrated TAM, the opportunity seems fairly obvious. I was at Wayfair, where furniture selling furniture online used to be a big challenge, and we used to track numbers and saying, "Oh, look at books and electronics. 60% of them are bought online today. Furniture's really lagging behind. It's at 19%. Custom parts is at 1%. 1% of custom parts are bought online today. Majority of them are still bought within 30- 50-mi radius of every factory, where a small offline two to 10 people manufacturing machining shop is actually making that. We are bringing all of that online, not through just a platform, but a platform that has been built for over a decade on AI as the core of it. To me, this is beyond exciting. Every time I think about this, I think this is the opportunity that we can actually continue to grow into for years and years to come. How have we done this, though? If you think about the AI-native capabilities at Xometry, we take a file that somebody uploads, the CAD file, the 2D file. We convert that into geometric representations, which we then weigh and give somebody an instant price. That's model number one. Unlike the offline place where you send it and you wait and wait, and you saw the email and the video pops up in a few days, you get an instant price. Like Uber and DoorDash, we take the same price that we gave to the buyer and turn it around with a new model to our suppliers to say, "Hey, would you like to do this work for this many dollars?" That second model is focused on the dynamics in the market and the pricing that we are seeing in the market. We have a third model that underlies all of this, which is the manufacturability model, which makes sure that the file that somebody uploaded, a part that has never, ever been produced before can actually be made so that the marketplace works. That ensures that the part can be produced, but the manufacturer has the details of why we think that part can be produced. I think all of this AI being applied to all of these parts for years is really the distinctive advantage that Xometry works in. To me, that's what really creates the compounding flow that we have. Take the pricing model, ensure that this can be manufactured, work through a marketplace on the other side with suppliers to make sure the best partner gets it with the right certifications. We work in aerospace and defense and medical devices. All of those have very strict regulations, so we certify every single partner. You can't just walk up and get signed up. Make sure the best partner gets it, but at the best price for us. Optimize some margins, so to say. Take that data of what they did and how they performed on that job and put it back in the marketplace, and that's really the flow that you're seeing here. That's really the flywheel that we drive. To me, that was the reason to come, but the reason to grow the company was even more personal to me. For a while I've felt that for a long time as individuals, we got used to better user interfaces, better apps. When we go to our favorite e-commerce app, Amazon, Walmart, Alibaba, Wayfair, whichever. Not many people take Alibaba for personal use, I hope. You're used to a seamless experience, right? You know where the buttons are, they are intuitive, where the price shows up, the basket's intuitive. At work, most procurement professionals and even as employees, we were used to clunkier software that required five steps to get anything done, that needed approval, and then you had to wait for something to come back after three, four days, and that's how you do your procurement flows and procurement approval in a tool that your company bought. Really, that is changing. Since COVID, nobody wants terrible clunky software at their workplace either. What we have charted on since last year is actually completely changing the way people use our platform. We want their B2B buying experience to be the best in e-commerce. Not the best in B2B, not the best in B2B software, just purely as intuitive as Amazon, Walmart, whoever else you like, right? We want our e-commerce to be as intuitive, as easy. If you're buying a custom part, it should feel like buying something on Amazon. As easy. That's where we are headed. We've been spending a lot of time in transforming those journeys for our buyers and suppliers. We launched a app for our suppliers middle of last year, something that nobody else actually has even thought about. Now we are actually continuing to see the value of that come around. If you went to our website a year ago or 18 months ago, the kind of experiences you had, the kind of up times you had, the kind of responses you had, were different from what we have today and will be better tomorrow, and will get better even in three years, right. Till we get to the best in class. I think that's the other part that focusing on those journeys, focusing on creating the e-commerce environment and the platform, that actually makes them come back, right? This is so easy. I'd love to be the verb. How do you create a custom part? You Xometry it, right? If I can get there, that will be when we'll have the majority of the share in the market. I think to me, that's exciting. That's why we are all here. You've seen a bit of the focus we've had as well. One of the other things is, like I said, we work with aerospace, defense, med devices, industrials. Most of these companies are the biggest of the big in their world. When does it get easier to work in an enterprise? When you're integrated into the enterprise flows. When to get an approval, you don't have to go outside of your flow, right? When actually your procurement team, your technology team has already approved that you can buy from so and so, right? The travel company that we all used probably to get here, likely used the one that was approved by procurement and was part of your enterprise software already, right? We've been driving that in parallel. We've been doing integrations, ERP integrations, punch-out integrations with our enterprise customers, and you've seen the number of enterprise customers we now have. That number's truly inspirational because all of these companies can now actually accelerate manufacturing by coming to Xometry and getting their parts very quickly. These are not mom-and-pop shops. These are billion-dollar enterprises, that probably rank in the fastest-growing and the biggest companies in the world out there. Very exciting to actually continue to keep diving on the enterprise growth. International. We have a marketplace in the U.S., but we also have a marketplace in Europe and one locally in China. These are the only three places we sell locally, but we started in the U.S. Our U.S. marketplace is the biggest. We report domestic and international numbers, as you can see on the chart. You've seen in the last few years the number for international has substantially grown. We think that's going to be another opportunity that's very, very early stages for us with all of the manufacturing action coming back in Europe. I think it's very early days for that international business for us, but we stay focused on continuing to drive that. We have a very large partner base to complement it. If you look at our partner base, you'll see that majority of the manufacturing that we do for each marketplace is within that geography, so for U.S. in the U.S., for Europe in Europe, and similarly for Asia in Asia. We also use the network thoughtfully across the geographies too. To that, I alluded to this a little bit. Unlike a traditional marketplace where you can actually sign up if you have a legal entity and you have five SKUs, we actually vet every supplier that gets on the platform, and we actively manage their quality. Because end of the day, to the customer, we are the manufacturer of record. We are the one whose reputation and name is on the line. It is not the supplier. We make sure our suppliers are vetted for certification, their quality management system is up to date, per our standards, and the tools and the experiences that they're having are the best, so that they can keep coming back. Truly, we want them to actually be the most distinctive manufacturing network around the world, with all of the needs that our customers have for certification. Again, this is fairly clear. Happy to have Randy jump in as well, or Shawn, our focus has been very clear, continuing to grow across all of the areas here. We've published long-term numbers. Some of these long-term numbers may be up for revision in a couple of years, I hope, upwards, we can keep driving our long-term aspirations even more. Thank you for having us here. I forgot to ask for a microphone. Yeah. I have one, so I can Let's do it. All right. Thanks, Brian. Yeah. Thanks, Randy and Sanjeev. I'll just ask the questions from here. I don't need another microphone. We have almost 10 minutes in this room to further the discussion, and then we'll go upstairs for the breakout session in the Jenny B room. You can just start by elaborating on the Xcelerator partnership, the Siemens Xcelerator platform. I don't think that it's obvious to everyone what that Siemens Xcelerator platform is. Start there, and then what role Xometry would play within the platform. I can start. Randy, please jump in. If you are a designer, designing a new part or a product to be manufactured, you start typically in four CAD softwares that you can use. One of those four softwares is owned by Siemens, called Designcenter. When we get files produced by any company in the world, they likely come from only these four CAD softwares. The way these CAD softwares are used, most of them are today still offline, installed on a desktop or behind a firewall in a large company. If you're a Tier 1 defense manufacturer, you're not likely letting anybody upload their files on a cloud version of software, so you have it installed within your firewalls and such. When you have to place an order or get even an estimate for something, a quote, you have to complete your work in the CAD software, save your file, and then email it to the likely manufacturer or upload it to our platform. As you can imagine, this is adding a bunch of steps to your flow. You have options. We actually partnered very early on with a couple of those CAD providers to create add-ons that could be installed post-facto, where we could push and share our price within that CAD software. However, if you're Northrop Grumman or you're, or you're Tesla, or you're any of the big industrials, and you, individual dear engineer, want to go and actually do an add-on just for yourself, which didn't come shipped with the Siemens Designcenter software that you're using, it's an act of Congress. You probably need three levels of IT approval, five levels of management approval to go get that add-on installed, and the users will be five. Now coming to what is Siemens and us. The partnership that we have done with Siemens is to completely change how those designers work. We are going to take our AI engine and natively integrate that with the Siemens software. When, in the future, the Siemens Designcenter software is installed by any company in the world, Xometry will already be included in that software. As you're designing your product or your part, you can say, "Hey, Xometry, tell me the price," without ever downloading your file, without ever emailing it to anybody, without even sending it to Xometry on the platform. Literally, in that approved software that your company installed, called Designcenter through Siemens, you will get instant Xometry pricing. What we think that will do is actually change the pace of innovation in the economy in the world, because now designers will be able to design not just for performance, but for manufacturability and at a price they like. Doing that today is a multi-step, multi-month process for any little thing. We will ship with the native Siemens software, the Siemens Designcenter software, as step one. Step two, once somebody places the order, so let's say you finished it, you like the part, you like the price, you say, "Okay, purchase from Xometry." In the back end, that file would be transmitted to us. We would confirm with an email saying, "Yes, your order has been placed. Then all the future updates to those orders would be pushed by us into the Siemens PLM software. It's called Teamcenter. All of the tracking for that you had to then send 15 emails to procurement, three emails to your team, five emails to your program managers, will already be integrated in the software they are using. Hopefully, it's Siemens, but that's the thought process. When you reorder, in your PLM, it will state where that was actually ordered from the first time. In your bill of materials, it will state where it was ordered from last time, which would be called Xometry. Your reorder would come to us. For us, this is a truly unique, transformational partnership where Siemens also understands that this could be truly a distinctive advantage for their software. That they actually not only have no revenue share or no profit share agreement, they actually have invested in us to get this out there sooner. Their view is actually that we are actually having that distinctive models and the AI-native historicals that we are actually working off of. To me, it is truly transformational. There's also another work that we are doing with them on the bill of materials side. They have a smaller unit called Supplyframe, which today is focused on electronics components. Those electronic components come with standard mechanical and some custom parts. As you know, we own another services business called Thomas. Thomas is a directory that lists most standard part providers that are out there. We will integrate with them to create an advantage for them where not only will they be able to push back electronic part providers, but also names of standard part providers with that as well. I think truly distinctive. Yeah, that's very exciting. I have a few follow-up questions on that. I'll save it for the breakout session. Right now, I was wondering if you could just discuss the stock offering from this week and the idea behind that and what the motivation is. Sure. Just some background here. Since we went public in June of 2021, we have not done any other equity raises. Of course, we've come off a record quarter. We also raised our guidance for the rest of the year and indicated in that quarter that the fundamentals of our business are very strong. We're doing this from a position of strength. We are prudently managing our balance sheet. There's some management of balance sheet here. Finally, we're going to look at selective tuck-in acquisitions. As we've grown rapidly since going public, we're a bigger company now, and this amount of cash made sense relative to our size and just being smart about it. Just as we talk about our growth, this is clearly a unique time right now in manufacturing, the trends towards reshoring. We're seeing an explosion in new innovation in the hardware side. We want to make sure across all metrics, Xometry is as strong as possible and this is truly our time. Great. Thank you very much. We have two minutes here. I am just going to ask one more question, then we will go to the breakout session. In my intro, I failed to list among your titles, co-founder. I was wondering if you can just give us one minute of reflection on thinking from the day when you thought of this idea to now listening to Sanjeev explain to us where we are going. Sure. Well, first of all, I'm moving to executive chairman, so I'm not going anywhere. I'm remaining one of Xometry's largest shareholders. My family is very dependent on Sanjeev and executing here. I think Laurence Zuriff and I co-founded the company, and we saw there was this massive opportunity to really digitize this huge industry. It's an important industry. For me, it's very exciting now, particularly when there is a light shined on manufacturing. People care about domestic manufacturing. People understand that there's almost a national security reason why we have to own it. It's exciting for me to see that. I also know, and I'm very proud of what we've accomplished, and we've had three quarters of accelerating growth, accelerating profitability, all these great things, but I know we can do a lot better. When I met Sanjeev, and when he joined us as president last year, I knew if our product continued to improve, if we leaned into product-led growth, if we made those investments, we had to make changes to the team. Sanjeev didn't come alone. He brought I love the followership. A lot of folks came with him. I think we can be even greater. We have the potential to grow faster and to be a really important company. I'm thrilled, I'm excited, and even though I'm proud of what I've done, I think our best days are right around the corner and in the future. Great. Okay. Thanks, Randy. Thanks, Sanjeev. Thanks, Shawn. Thank you. We'll wrap it up there, and we'll continue in the breakout session. Thank you.