Xometry, Inc. (NASDAQ:XMTR) Q4 2022 Earnings Call Transcript

Shawn Milne: And Ron. Hey it’s Shawn. I just want to add to on that cohort slide, just to be clear. You were asking about the active buyer growth, which was a record this quarter. And as Randy said, we expect that to be healthy going forward, the cohort slide is based on an account basis. And just keep in mind the whole land and expand strategy here. We’ve tried to bring in an account, we add buyers in an account. And that’s how it really drives that growth.

Unidentified Analyst: Got and that’s actually a good segue into the second question I had here Randy and Shawn and Jim. You talked about slowing order growth from Xometry’s largest accounts, but also realigning the salesforce to focus on those top 200 accounts. So if you could help us understand just the plan to call it expand in those top 300 accounts that would be helpful. And where are you in that process of realignment? Thanks, guys.

Randy Altschuler: Yes, so our top 200 accounts represent almost 50% of our U.S. marketplace revenue. So as we indicated in the call, one of the things unfortunately, we experienced unexpectedly in Q4 with that was a slowdown from that group. And so really, as we saw that trend, we made sure that we realigned our sales force and our support to focus on going deeper into those customers. And we provide a bunch of case studies the land and expand. So we’re trying to go deeper and deeper into them for a number of reasons. First of all, these are large companies that have tremendous spend on custom manufacturing. So even though we’ve grown rapidly with them, since they joined us, they’re still, we’re still a very small portion of their overall span, custom manufacturing.

So this is very fertile ground for us to grow into. And as we’ve gotten bigger within we’re also getting the opportunity to do more and more with them to get bigger orders, larger orders. So it’s an advancement that makes a lot of sense, particularly as we do more production more and use parts. This is very fertile ground for us. So focusing our technical resources on that as well to go deeper, makes a lot of sense. Likewise, as we expand the menu of the things that we can offer, so as we more tightly integrate all the capabilities that the suppliers and Thomas offer, that enables us more and more to be that one stop shop, or one stop place for those accounts to go. And again, those accounts have such big spend as we broaden what we can offer them more and more, they can default more that’s sent to us.

So it’s sort of a multi prong strategy. I think we have a lot of active buyers. So making sure we’re focused on those that provide the greatest opportunity for profitable growth. Q4 was a reminder of that and we’re doubling down that year in Q1 throughout this year, that that’s where, in terms of just where we put our headcount, that’s where we want to put it.

Unidentified Analyst: Got it. Thank you guys.

Operator: One moment for our next question. Our next question comes line of Cory Carpenter from JP Morgan. Your line is open.

Unidentified Analyst: Hey, guys, this is Danny on for Cory Carpenter. I just have two quick ones on international. So for international expansion, is the key driver of growth there really more geared towards expanding the amount of countries you’re operating in? Or is it really kind of geared toward expanding the depth of each market with new offerings? And then another one on international can you talk about what was attractive about the marketplace in Turkey required? And maybe we should expect to see more of these bolt on acquisitions in the future? Thanks.