You guys hear me? There we go. Hi, everyone. Andrew Boone. I cover internet here at Citizens. I'm very pleased to have Xometry here. We're gonna have a conversation with Sanjeev, Randy, and James. Thank you guys so much for participating. Let's just set the stage, right? For anyone who may be new to the story, help us understand what Xometry does and explain the market. Sure. Andrew, thank you for having us. I'm Randy Altschuler, the CEO of Xometry. We are the leading marketplace for custom manufacturing, and custom manufacturing encompasses millions of buyers, potentially trillions of dollars of spend that's happening every year where customers are buying custom parts. Think about if you're an automotive company, specific parts for a specific vehicle, or an aerospace company for a specific rocket or a satellite or a medical device. It's a huge market, highly fragmented, millions of buyers, potentially millions of small suppliers spread out across the United States and across the world. Historically, that market had been offline. It had been analog. Things being done with emails and faxes and visits. And the long tail of the internet really hadn't touched it, in part because it's where you got custom parts, there's not a set price. It's very hard to create liquidity that you would see in a lot of other marketplaces. When I co-founded Xometry in 2013, we're an AI native company. We used AI to create prices for the customer, instant pricing. We used AI to help that customer figure out the best manufacturing solutions, to give them feedback, and then to connect them with the optimal manufacturer to make those parts, and we used AI to provide the pricing for the manufacturers as well. We set up that digital marketplace, and today, you know, we've been growing very rapidly. Last year, we grew, over 26%, and we're the leader in this huge market, which is still largely untapped with a giant TAM. You guys made a recent announcement about a CEO transition. Sanjeev, you're here. help us understand, Randy, what was the impetus in terms of making that change? Sanjeev, what should we expect now that you're taking the reins? Yeah. I'll start with just explaining the impetus, and then hand it off to Sanjeev. Again, Xometry's had some great growth. As you think about us continue to accelerate our growth, last year, our growth accelerated by over 800 basis points from the prior year, grew you know, 30% in the fourth quarter. A lot of that is as we lean into product-led growth, so continuing to make enhancements to our user experience, both for our buyers and suppliers. Over the last couple of years, we've been making changes in the C-suite and bringing in folks who have experience in far larger companies, digital companies, product-led companies, and bringing that expertise. I'm very grateful for all the folks that brought us to the first, you know, level of growth for Xometry. As we think about the future and this accelerated growth, we needed a product-led tech team that was gonna make it happen. As I said, we've made those changes across across the C-suite, brought Sanjeev in last year as our president, as he'll, you know, talk about his vision and plans. He immediately assumed a lot of the operational, day-to-day focus of Xometry, leading our technology team, our operations team, our people operations, bringing that mindset of product-led growth. As you see what happened last year, our growth accelerated as the year went on. Our profitability grew as the year went on. As we think about accelerating even further and growing into this huge TAM, I knew that Sanjeev and a lot of the team that he brought in were the right people to make that happen. I'm moving in as Executive Chairman, so I'm the second-largest shareholder overall, by far the largest individual shareholder. I'm excited to continue to be a shareholder, and I'm not going anywhere. As the Executive Chairman, that gives me the opportunity to focus on more strategic partnerships and relationships, and then have Sanjeev be here, my partner, as our CEO, leading us to that next level. Thanks. Thanks for the question, Andrew. Again, I think to me, we're changing the person in the seat, but not the destination. Thankfully, when I joined, I came with a clear understanding of where the company was going and the opportunity ahead of us, and we've been working together as a C-suite to define that destination and refine that roadmap over the last year already. Some of the things that you've seen around lots of product launches, lots of focus on tech deployment, attracting talent from the best of the best in the tech space, all that we've been doing together. I think our focus remains on taking this massive, fragmented offline marketplace to come online and actually drive more and more penetration there. I think that remains the focus. Randy mentioned this in terms of the intro, but he talked about the use of AI across the business. Mm-hmm. Right. Talk to me about the evolution of what that's looked like kind of over the last year, and then really, what's the goal over the next two- three years as you think about better incorporating AI across the entirety of the platform? Thank you. I would say like Randy phrased it, Xometry's been an AI native company from the beginning. The way we use AI is we take what a customer brings in as their custom parts need, identify geometric representations of that in our world, and use that data to train our pricing algorithms, our costing algorithms, our pricing and sourcing that leads to matching of the partner, and then using that to take conversations and specific data points that come in the manufacturing process as inputs back into the design and refine that over time. I think what we've been doing in the last year is we've now attracted people who I would say almost are also AI native. We've got people coming in from Amazon, Microsoft, Groupon, Toast, Wayfair, like all the places that actually have been deploying AI in pricing decisions, in sourcing decisions, in supplier development decisions, in evaluation capabilities. Across all of those algorithms, not only have we improved the datasets, the proprietary datasets that we have underlying all of those, but we've also changed the frequency in which we train, the datasets on which we incorporate, so going across the supply chain in its entirety, and continuing to drive some of the impact. You've seen numbers starting to play out already where not only has revenue gone up, enterprise penetration's gone up, but so has had margins, partly because of the way we are able to use that and continue to. Let's talk about that enterprise penetration. One of the big takeaways was certainly the growth in 500K accounts, the $10 million dollar- Mm-hmm. accounts now four. You guys talked about in the last earnings call. What's driving the evolution of market, and how do you guys continue to make progress there? I can start and feel free to jump in. I would say a lot of what we've been focused on in the B2B space is taking the core of the champions in those organizations that we have and making it easier for them to do business with us. If you're a Fortune 500 employee, you are in a company that actually does hundreds of millions of dollars of spend, you have a procurement platform likely, you have some approval grids around it and a process that you have to follow. We've been trying to be present in the procurement supply chain, so become like the official supplier who is easily accessible and integrated in the approval chains, integrated in the PO process, integrated on the platform that they do business. That has two advantages for us. One, not only is it easier for that particular champion to now actually do more business with us, but then for a lot of the other people who might hesitate to come on a platform and spend on their card to actually transact from within, their ecosystem. I think that is also the second thing that we are doing, where now it is easier for lots of those buyers to actually buy from Xometry without ever leaving their ecosystem. Is that a Salesforce-driven process, or is that bottoms-up product-led where you need an interior champion, or what does that look like in terms of the actual process? It's both. Of course, as Andrew Boone mentioned, we got a new Chief Sales Officer in 2024 who came in from Google. He's brought his own enterprise sales toolkit and an enterprise sales motion that actually drives some of those conversations. A lot of it is also tech-driven. We've spent a bunch of time on PunchOut, which is an ERP integration mechanism to help the customers start within their firewall. We've actually started a lot more down the path of both traditional EDIs with some of the more traditional players and API integrations with some of our more advanced newer customers. I think it's a combination of both, starting with a playbook that encourages how those people work with us and making their life easier through tech. Andrew, this has been a, you know, significant driver of our, you know, accelerated growth and success here and profitability. Over the last couple of years, you know, a year ago, we said we had 100 customers of over $500,000 growing at 40%. We just reported that now over 140 growing at a, you know, similar rate, our gross margin has continued to improve during that period as well. This combination of, you know, sales and tech go to market is providing success at the top line and in terms of the profitability of the business. Then let's just dream the dream, right? Like $10 million accounts, I mean, what's kind of the ceiling for that? Do you think that can turn into 50? What has to happen as you think about the next level in terms of really turning on enterprise at a more meaningful level? These companies could easily be spending $100 million plus with us. I mean, they are spending, as Sanjeev sort of alluded to, some of them are spending over $1 billion and more annually in manufacturing spend. We're very proud that we've hit that $10 million mark for four of them. But those accounts that we hit it could be 10x that easily. James just said, there's 140 more to come that we've identified that also have that potential. I think the key, and Sanjeev talked about this, is those integrations from a technology perspective and effectively becoming embedded in their supply chain. When our customers, these customers that are spending, some of them are spending, as I said, billions of dollars in manufacturing, they've got some portion of it where they're gonna own that relationship directly with the suppliers. They wanna manage that. There's a very long tail which encompasses, smaller levels of production, repair parts, you know, service parts, all sorts of different things. That's a long tail of suppliers. If they can utilize the Xometry marketplace to do all that, it saves the customer money, it saves them time, it creates a secure digital environment. Resilient supply chains are resonating more than ever with all the geopolitical noise that's going on right now. There's a flight to safety. If I'm a customer, I have to deliver to my end customer. I have to depend on that. It is too difficult for me to manage suppliers in different geographies, different changing tariff environments, whatever it may be. If the Xometry marketplace can deliver that's extremely helpful for me. It's again, one of the reasons why you're seeing accelerated growth. As customers lean more into that, as we do more and more of those integrations at those different levels that Sanjeev talked about, we become the default, and that will be the key to getting to those levels, and we're seeing success on that. On top of that, we did bring in a terrific person as our Chief Sales Officer a couple of years ago. We've been making investments in that sales force as we've been talking about, and you're seeing the benefits of that. Look, when we gave our guide, you know, for the first quarter, we were very clear that the quarter had started strong. We've seen two consecutive months of positive manufacturing data. We hadn't seen that since, I think, back since 2022. The macro has been a headwind for us for a long time. It'd be very nice if we didn't bake this into our guidance or where we're going for this year. If we start getting a tailwind on the manufacturing side, that could be another accelerant. Last year we did great, accelerating growth, over you know, 30% marketplace growth without any helpful from the macro being kinda kooky. This year, you know, maybe things are changing, that'd be great for us too. Let's go to the other end in terms of top of funnel and kind of newer accounts that are likely probably smaller versus what we just talked about. Talk to me about the expectation for net customer adds and just the continued health of bringing more customers onto the platform? Yeah. Active buyer growth was 20% in the fourth quarter. We saw increasing net adds through last year, which was really great to see. We're over 3,500. As Randy mentioned earlier, you know, this is a massive market. There's millions potentially of buyers out there. We also brought in, you know, a year ago a new chief marketing officer as well. You know, I think our strategy and tactics around the top of funnel and acquisition, the alignment across sales and marketing internationally as well as the U.S., these are all areas and levers that we're pulling on and improving on. You know, I think that, this combination of technology platform and better solutions, can help us really continue to drive that buyer growth, which is so important for growing the overall marketplace and health. Is it a different set of products that you guys need though to better address what is winning share of wallet from existing larger enterprise versus a new customer that comes on? Is it just a reduction of friction just across the platform? Can you flesh that out? Yeah. I would say it's the same product. If you think about how customers get introduced to us, I would say a lot of our new champions that I was talking about tend to be more digitally native, for lack of a better term, just simple Gen Zers who are actually now getting into R&D roles, into procurement roles, into supply chain roles. They come in and they generally ask the first question on, "There has to be a better way to do this. I'm not going to send a fax. I'm not going to send an email and wait forever for this to be an offline fragmented thing that I answer. I can do it in my personal life, on Amazon or something like that. Like, there must be an equivalent." That's generally how a lot of those people will then find our ads, find an outreach from our salesperson to actually join Xometry. That means not only are in large companies people finding us like that, the Gen Zers who are finding those roles in R&D, a lot of the startups, the high-growth startups, also end up finding us like this because they don't have the network to do the same. On both ends of the spectrum, the initial set of connection is through that initial R&D order that they want to do faster and faster, and having that frictionless experience for both is equally key. I mean, in fact, I would say I genuinely believe that days of clunky old B2B software are long done, right? For a long time, you gave a pass to the, you know, your procurement platform, which had five-step checkout process. I didn't needed you to add the notes and things everywhere. None of the employees today, including ourselves, want to be actually using a B2B software which is not as good as the B2C experience that we have in our personal lives. I mean, travel industry and what it's done to the B2B travel is a great example. For us, that's a learning, because as a disruptor of the space, we want to create that frictionless journey for all our customers so that we should be as easy to use as a, you know, pick your favorite marketplace, Amazon, Alibaba, Wayfair, and Xometry should be a name in that line, right? Just pivoting slightly, but, injection molding has been a newer category, right? Tremendous potential there. Talk more broadly about the expansion that we should expect across the platform as you do think about covering more areas with Instant Quote. I mean, injection molding is a really large category, as you mentioned, something that we are very, very excited about, something that we've been doing for a while, mainly through our customers who are doing it in our offline space with us a little bit with interacting around larger orders that we actually de-deliver for them at scale. As you know, we brought all of that online into our Instant Quote Engine last year. We've seen some great initial traction, lots more data. I mean, as you know, I mean, all the people that we now have and, you know, several of the tech people that I've brought in the last year all want to play in that space. So we are harvesting that data to understand their behavior, their interactions with our tooling. This is bringing to fore continuing to invest in this space, both awareness on people who may not know that we are doing that, and they can actually transform their journey of buying that online with us. Making sure that we have partners who are aware of us more and more, so onboarding those partners. Of course, continuing to expand the various certifications that the partners might need to play with us in that space. Yeah. Jibs, the financial goal out there is $1 billion of revenue. Talk to us about what kind of needs to happen in terms of drivers? Yeah Get there, and what should the expectation be on our side? I mean, I think the relatively near-term goal is $1 billion in revenue. I think our aspiration is to be, you know, many times larger than that. I think in the next few years, we feel very much strongly we can double, triple the size of this business considering the market opportunity and how well we're executing. You know, I think, you know, the strength in active buyers and our growing network, and not only in terms of quantity, but also in quality and the capacity. Those two sides of the marketplace continue to grow healthily. Those will be a key for us to continue this year. You know, I think that the product roadmap that Sanjeev and team have been delivering on over the last year continues and probably continues to accelerate this year, and allow us to continue to extend the marketplace offering. Injection molding, we just talked about, you know, these are large buckets of, you know, market opportunity to open up. As we go deeper through technology, through sales into enterprise, the more that we can do that would, you know, for them goes to small and medium-sized machine shops, a lot of different use cases that we continue to add. As Randy was saying earlier, you know, when we look at, you know, 100 accounts, that could be $10 million+ on enterprise, that's a $1 billion opportunity target that we have for enterprise. Then we've got, you know, SMB in addition to that. I think for us continues to really feel and act like a pivotal time for manufacturing. Manufacturing here in the U.S. and manufacturing globally. The Xometry is a solution to many manufacturers and our buyers who are looking for resilient, flexible supply chains. Andrew, I think if you look at our guide, I mean that just what. Yeah. What James said for that $1 billion, like we're giving a lot of visibility about when we think we'll get to that run rate. We're thinking, yes, that first getting the $1 billion is gonna be important, that run rate, but very quickly, we're thinking about what's beyond that, which is gonna happen, you know, relatively quickly here. Again, as you think about this product-led growth, continued expansion of gross margins, our overall profitability, we're very excited about that continuing scale, what that's gonna mean for our overall profitability and for our cash, you know, free cash flow generation as well. As you guys manage the demand side, again, there's clearly a ramp there, how do we think about the supply side, right? What does capacity kinda look like on the network, especially as you start to extend to new categories? How should we view that aspect of the marketplace? I would say we mentioned that we have more than 5,000 suppliers on our network today. It's an ongoing area of continuing to grow as fast as the other side of the marketplace grows as well. You will see that as we continue to expand from the SMB players all the way to the enterprise, of course, the nature of what we are driving changes with them. You've seen slightly slower growth on the marketplace, on the supplier side, mainly because we wanna make sure that the quality remains as tight, the outcome remains as tight, and then we continue to grow globally. We've been expanding in suppliers across the world. We've said 50-plus countries that we have already. Whether it's international partners in China or India or Turkey or partners here in the U.S., you see bigger growth numbers to follow there as well. I think, Andrew, you know, one thing you asked about, like what the user experience, that is also true on the supplier side. We've had some exciting releases in 2025, and got a lot of people very focused right now on Workcenter. That's the software that we give all of our suppliers. When you think about as we continue to grow and we're a bigger share of the capacity of the suppliers, making it easier for them to lean in with Xometry, and in fact, making it easier for them to work for us versus the way they traditionally did business, that's also a winner. We think about the customer saying, "Hey, I'm gonna take portions of my supply chain. I'm gonna use Xometry for that. I'm embedded in the..." For the same thing with the suppliers. Hey, rather than having lots of different customers, if I can have Xometry be a super customer for me, if they've given me software that makes it faster, more profitable for me to operate my business, I'm gonna lean more and more into Xometry, by the way, may start using this software for all my business. We're making a lot of investments that started last year with release of our mobile application and that side of it is as important as the customer side. In fact, last week I was visiting several of our suppliers. I visited about 13. A couple of them complained that ever since we launched the mobile app, they can't sleep. That remark was more to say that now they're getting jobs 24/7 and pings happening on their phone, which they weren't used to before. I think that's the traction that we want them to have. let's switch to Thomasnet. You guys talked about the return to growth in the back half of this year. Just flesh out what has to happen for that to come to fruition. We are, like, very excited, as you know, about what we've been driving as a transformation on Thomasnet, both on the ad platform and the continuing investments in search and making it easier for our advertisers to find business. To that extent, we are in the process of ramping up the transition to the new ad server model in the first half of this year. As we continue to drive that, we think you'll see tremendous traction happen over the years. long-term gross profit guidance, I think it's 40%-45%. Just talk to me about what has to happen to get there, right? Is that you guys taking better economics? Is there any worries that we should have about the move up in enterprise as you guys deal with larger scaled orders? What's the math? The math is, it's 35%-40% on the marketplace gross margin, and then our services business, our services segment, you know, is around 90% margin. That gets to 40%-45%. On the marketplace, the 35%-40%, we're already at that 35% level. We've been between 35% and 36% over the last few quarters. It's really the product of our AI, of our machine learning, of our models that Sanjeev talked through earlier. What's really important to understand is that what Xometry's doing across our network of buyers and suppliers is finding the optimal match. In that optimal match, it's a great price for the buyer and for the supplier because it's matching the capacity, the availability, the capabilities at that point in time. In doing that, as we've grown out our networks, we've been able to be, you know, reduce the spread of outcomes and continue to see very successful ongoing improvement in gross margin. Then we'll continue to see that as we move forward. Yeah. Andrew, just zoom out, when we went public, we were like a 25% gross margin, descended this year at 35%. We've been unambiguous about our guidance for gross margin for this upcoming year. First quarter is gonna grow quarter-over-quarter, it's gonna grow year-over-year, you're gonna see overall in 2026 growth from 2025. We've been doing that now for years. We're very confident about that. As James said, it's as we get. It's It's the beauty of our system. As we're getting more data, as we're expanding the networks, there's so much inefficiency. We're gaining margin through that. That's, you know, proprietary data. We have all these good things there, we're very confident about that continued growth in gross profit, that's contributing to our increasing profitability overall. All right. Last question. 20% contribution margins has been a very- Yeah ... steady state. Well, why is that right? Why is that the right number? I think as we scale to $1 billion, that's what we've said, the 20% incremental Adjusted EBITDA. With the growth that we've had, we've delivered that over the last three years. As we scale to $1 billion, we feel that that's given us the right amount of balance between growth and profitability, to help everybody see the profitability of the platform as we scale, and to invest sensibly in these longer term growth drivers. I think as we go beyond $1 billion, and as we get, you know, see opportunities to further monetize through the services side, not just Thomas, but with other ways of looking at the data, looking at, Workcenter, looking at Teamspace, looking at the whole flow, that as we then scale above $1 billion, I think there's line of sight and path to higher profitability and more incrementality. Yeah. I just wanna put an extra punctuation mark on this. This is a massive TAM. Unlike a lot of other companies where the markets are topped out, et cetera, we wanna make sure we're also investing in growth as well, and we have that huge opportunity. Yeah. Awesome. All right. Thank you guys so much for participating. Thank you. Thank you, Andrew. Thank you.