All right. Good morning, everyone. Cory Carpenter, internet analyst at J.P. Morgan. Starting off the conference with Xometry. Randy and James, thank you for joining us.
Thanks so much for having us.
Thank you.
So for those newer to the story, I thought maybe we could start with just a high-level overview of the business and the problem that Xometry is solving.
Xometry is the leading AI, AI-powered marketplace for custom manufacturing. When you think about manufacturing, it's obviously one of the largest industries in the world, and there's a segment of that which is heavily fragmented with hundreds of thousands of small manufacturers, and where it's very difficult for customers to find the best option, whether it's price, lead time, or manufacturing process. Prior to Xometry, that had been handled in a very analog, offline way. Using AI, we've created an online marketplace to enable these customers, and we're a global company, to effectively and efficiently procure these custom parts. Then we've got a network of thousands of small manufacturers spread out across the United States and across the world that are doing the fulfillment of it.
So manufacturing, certainly a large market. Could you just walk through who your core customer is? You know, how you think about the addressable market within that, I think, over $2 trillion TAM?
Yeah. So it's very exciting when you think about large companies in particular. They're spending... Some of them are spending hundreds of millions of dollars a year on custom manufacturing that they're procuring from lots of small manufacturers. So for these large customers, it's very costly and inefficient the way they're doing this today. So when you look at Xometry's 100 largest customers, you'd recognize a lot of them. They're Fortune 500, Fortune 100, Fortune 50 companies. And because we're a technology company, we have a very extensible platform, so we're operating in many different verticals, from robotics, to medical devices, to consumer, to automotive, to aerospace, to defense. So lots of the largest companies in the world today that are buying custom parts are Xometry customers today.
Okay, so let's spend a little bit of time on the buyer side. You have over 58,000 buyers. You've been adding about 3,000-4,000 a quarter, pretty consistently, despite what's going on in the manufacturing environment. Could you talk about what's driving this buyer growth and how you think about the sustainability?
Yeah. So in terms of sustainability, you're talking about a market where there's millions of buyers out there. And so we're very proud of our growth. Last year, we grew our buyers 36% year-over-year. So we've had rapid growth, and we're very confident we can continue to gain that. And we're gaining market share because it's obviously a more efficient... The model of using a marketplace, a digital solution, is obviously more efficient than an analog offline. So not surprisingly, as customers, other parts of their lives are going online and being done digitally, it makes sense for them to lean into this in manufacturing as well.
So what's the process for onboarding new buyers? How do they find you, and once they find you, what's your sales process?
Yeah. So, you know, more and more, they're finding us organically. So they're hearing about Xometry, they're coming to our website directly, or they're hearing from colleagues. So they're, you know, folks who maybe are coming in new from another company, saying, "Hey, we use Xometry at my prior company. We should be using it here." Or within our larger customers, you're talking about there's potentially thousands of engineers and procurement people that could buy from us, so you're hearing word of mouth in other divisions. We also spend digitally on digital marketing, so that's, you know, a significant portion of where we get them. And then we also use our technology itself, helps us gain buyers. So we've released new things like Teamspace.
These are collaborative tools that encourage colleagues to invite their colleagues to come in and start working with Xometry.
So once you have the buyer, they're on the platform and onboarded, how predictable is the evolution of their spend, and could you talk about retention?
Yeah. So, it becomes... You know, Xometry was-- I'm the co-founder. We started the company together with Laurence Zuriff in 2013. 2014 was our first year of doing business, and our cohorts have been pretty consistent. In fact, in our investor presentation, we provide a cohort analysis, and you can see we've gotten nice growth over time from those cohorts. So people get into a pretty regular rhythm. And then we also have the ability as a customer is in there, and as Xometry has grown, we've been adding more and more manufacturing processes to sell to those customers. So in the beginning, you know, we're doing much more prototyping. As time has gone on, we've added more and more production-level processes.
So in fact, if you look at that, that cohort analysis in our investor deck, we show the year one spend of each of the cohorts, and that has been growing very nicely. And 2023 was our biggest year ever for the first, that cohort. So that's just more testament to this is a huge market, lots of buyers out there, not just individual buyers, but lots of companies that still aren't using Xometry. We're still hitting record highs in terms of year-one cohorts.
Okay, so spend per buyer, we talked about number of buyers, 3,000-4,000 a quarter. Spend per buyer, a little less predictable, I think, given the macro. Could you talk about how much of that is due to macro versus perhaps other factors that are impacting it?
Yeah, and hi, Cory. This is James. I can talk about that one. So, yeah, when you look at our growth, then buyers is a key driver of that. We grew buyers 32% in Q1, and marketplace revenue was 24%. So revenue per buyer was down about 9% year-over-year, 6% year-over-year. So some of that is due to the mix of the large orders that we had at the beginning of the year. But overall, really encouraged by the growth we've also seen in our accounts of $50,000 or more, which grew 25% year-over-year in Q1 and grew about 30% last year year-over-year.
So kind of sticking with that, you called out a few quarters ago, excuse me, the buyers pulling back on large orders in January, not just you, but a lot of people.
Yeah.
-in the industry. Trends seem to have stabilized since then. What's the latest you're seeing on the macro side? And James, what are you assuming in the outlook?
Yeah, so we did see a very, you know, slow start in January that picked up through the quarter. So we were really pleased with, you know, hitting 24% marketplace growth in Q1, which is a good result, especially as we look, you know, within the softer manufacturing environment, and we look across certain vertical players in the space. As Randy described, there's a lot of way we can continue to grow buyers and grow the revenue per buyer. Our marketing dollar's behind acquisition, our enterprise efforts to grow and expand, you know, the revenue that we're getting from our customers and overall growing our marketplace menu and the broaden our appeal.
So encouraged by seeing the 32% buyer growth and the 25% growth in the 50,000 accounts in Q1. So generally, pretty pleased with those healthy metrics we're seeing across the marketplace. So as we looked at Q2, took that into account, as well as still being in this softer macro environment for manufacturing.
Okay, so let's shift to the supplier side. That was a lot of the buyer questions. On the supplier side, you have close to 3,500 suppliers in the marketplace. Similar questions as on the buyer side, why do suppliers choose to work with you, and how do they find you?
Yeah, so that is largely word of mouth. As the leading, you know, online marketplace for custom manufacturing, there's not... You know, we're for many of these small manufacturers, we're the only ones we know, and you have to understand how different this is for them. So the long tail of the internet had never touched these small manufacturers. There was no place for them to sell their online capacity. That's a little bit more of a harder thing to quantify. That's why we're using AI. And just to back up for a second, we use that AI not only to provide instant pricing for the customers, but we also use that AI to optimize the match between the buyer and the supplier.
And so one of the reasons why manufacturers like to be and we have, we have more demand, we have more supply than we need right now. Like, we have, we have lots of people coming to us, so. And one of the reasons why they come to us so eagerly is not only because they can get customers that they never were able to touch before, and these are small businesses with very small sales and marketing budgets. So if you're a manufacturer outside Detroit, historically, you have lived and died with the automotive industry, or if you're in Houston, Texas, oil and gas. Now, with Xometry, suddenly, if you're that great automotive supplier in outside Detroit, you can get work from an aerospace company in California or a medical device company in Boston. Wasn't possible before.
But not only do we bring them new customers, but also with our AI, we optimize the work that they get, and we try to find their sweet spot. So if you're a manufacturer and you're running your machines for, let's say, 10 hours, a 10-hour job, the price, your, your margin on two different jobs is radically different, depending on whether one job exactly fits what you're best at versus one that's a stretch. And historically, you've been dependent on your local customers, and you've had to do whatever they've wanted to, even if that was less profitable. With Xometry, suddenly you have the option to get more profitable work.
How do suppliers typically view Xometry relative to their other business sources? Are you often their primary source of business, or are you their incremental revenue stream? And then could you talk about retention on the supplier side as well?
Yeah. Look, it's a mix, as you can imagine. So we've got some suppliers where we're now the majority of their business. We've got others where we're maybe their biggest customer or one of their biggest customers, and then we've got others that are just learning us, so it's pretty across the board. But over time, we've been very careful to grow that supplier network, which we could blow it out, but we are trying to increase our share of capacity within those suppliers. We want to become a very important supplier, customer for them. We've also. For them, we have a software called Workcenter. So we have a free execution, manufacturing execution system. So basically, something that helps the supplier manage their business.
We have them use that for Xometry work, but we're also enabling them to use that for all of their work. And so we're not only trying to get these suppliers to come in and take work from our buyers, but we're also trying to, in a sticky way, get them to stay in our ecosystem and use our software.
So let's stick with Workcenter. I mean, basically the operating system that you're offering suppliers to run their entire business on. Could you talk about the adoption you're seeing and then some of the other services you offer suppliers to keep them sticky?
Yeah. So Workcenter is great. We're continuing to make enhancements with it. And again, when you think about a lot of these small manufacturers, they have no software. They're using clipboards, and they're using, you know, pieces of paper to track everything. And, you know, the other products in the market can be very pricey for them. These are very cost-sensitive folks. So with this free software, which we're continually upgrading integrations with things like QuickBooks and other things to make it, things like just making it easy for them to ship, print out shipping labels, seems like not a big deal, but it's actually a big deal or tracking. So by giving that to them, you know, we're getting more and more adoption from our suppliers. And we offer them a host of services.
At some point, we'll talk about Thomasnet, but we also offer them some financial services. So to get paid faster, these are small businesses. Cash is important to them. If they're going with a traditional customer, sometimes that could be 60, 90-day cycle. With Xometry, they get paid a lot faster. That's very attractive.
I should have mentioned at the beginning, if you have a question, you can submit it to us online. We have an iPad up here, and then we'll take questions from the audience here in a bit as well. So one question we get with all marketplace businesses is disintermediation risk. Is this a problem for you, and if so, how do you address it?
You know, it's not something that has historically been an issue, and you have to understand the landscape. So, you know, going back to who our customers are, and as I've talked about, our largest customers are large companies that have been around a long time. They're not coming to Xometry to find yet another supplier. They're trying to... They're coming to Xometry to solve a problem... which is if you're buying hundreds of millions of manufacturing a year, maybe even more, you're trying to shrink your supplier base. You're not trying to manage more and more. It's very expensive and time-consuming. So if there's a portion of your supply base, particularly smaller orders, smaller manufacturers, and you can go to one place to do that all, that's very attractive. So I always use the analogy sometimes of, like, an Uber driver.
How often, you know, when the Uber driver drives you, even if they hand you their card, do you actually take it or no? The convenience, the ease of use, all those things that Uber provides, it's a very similar thing for our customers, and then on top of that, they're trusting us with their bread and butter, their parts, what they get paid on. So the trust that they have in Xometry, the ease of use, the fact that we're a public company, the governance, the transparency, that's very powerful. That's something that a small manufacturer could never offer.
Okay, so let's talk about Thomas for a bit. You acquired them a few years ago. We've thought of it as the white pages for the manufacturing sector. You can reword that if anything differently. What was the vision behind the acquisition, and where are you with the integration?
Yeah, the vision, so think about, you know, manufacturing, as we talked about, is a huge market, huge TAM. Xometry plays in some of the manufacturing processes. We're constantly adding new ones. Thomas is much broader. So Thomas has lots of categories that we don't have today, so it helps expand the TAM for us and what we can offer customers, being their true one-stop shop. Plus, you've got over 1.2 million registered users on Thomas. We're very proud of that 58,000 buyers you talked about at Xometry, but that Thomas user base obviously dwarfs that. So one thing that, as you know, as we continue to grow is get awareness out about Xometry.
You know, we're very proud of where we are, but we're still early stages in terms of our adoption in the market and the growth that's out there. Thomas helps raise that to a different level. And plus, when you look at the business, Thomasnet is a very high-margin business, you know, can be a very profitable business. So as we think about our long-term outlook, which of course, James will talk about, that's very helpful to us.
So let's talk about competition. You're growing over 20% in the marketplace. I don't think the manufacturing market's growing that fast. You're taking share. Where is that coming from? I'm sure a lot's from the traditional channel, but also on the digital side, you know, who are your competitors, and how do you think of your moats?
Yeah. And again, we grew 24% last quarter. Look, our competitor is really the way that business used to be done or is currently being done, which is offline. It's, "I'm going to my local manufacturer, I'm driving there, I'm picking up the phone, I've known this person," et cetera. So kind of harken back to the days where a lot of other things were being done on a very local basis. That's usually when a customer doesn't immediately convert to us or before they come to us, that's usually what they're doing, you know, most of the time, and it's really just telling people, "Hey, there's a better way to do it, and in fact, we're gonna give you a bigger selection, hopefully better pricing, better lead times, less friction in your experience.
You know, we can integrate into your procurement system," all these goodies that you'll be never be able to get, and so that's really what, what... And as we get the word out and people learn about it, it's, it's pretty miraculous because in our business, in manufacturing, a lot of these things were never done, and, and the fact that we're using AI to create these prices, that's miraculous. And going back to your question about a competitive moat, so we have a bunch of moats. One is these networks of buyers and suppliers, our global reach, the fact that not only we, we grew international-
69% in Q1.
69% in Q1, so we've been... you know, have great growth in Europe. We've been investing in Asia Pac, as well, so the international element of it, and then the fact that we're using what's called machine learning to create this instant pricing, that feeds off of data. So one of the nice things that's been happening is great growth in our gross margins for our marketplace business, hit a record high of 32% in the first quarter. That's powered by getting all this data that helps us with our algorithms. So every day, as we get more and more data points, as we grow larger and larger, that data lake, that competitive moat, gets larger and larger.
I wanna talk about some of your investment priorities. You gave five focus areas at earnings a few weeks ago. Let's start with international, which you just mentioned. What is your footprint today, and where are you focused on the next 12 months for international expansion?
So we're really pleased with the progress we're making internationally. I think, you know, the team have done a fantastic job the last few years. In 2020, it was about $3 million in international, and, last year, we were at $60 million. We grew that, growing that last year, 81%. We grew 69% in Q1. It's now 18% of total revenue. So what is it? It's a, you know, it's this, broad footprint across, with, with multiple languages across the EU, U.K., and Asia. So we're providing localized experiences, localized marketplaces to the buyers, 15 different languages, and then, supporting that is also building out further our supplier network, so, out in China, through India, through Turkey, and through Europe.
I think over time, you know, we can see that as other marketplaces have achieved, you know, getting to more like 30%-40% of our revenue, over the long term.
And I have more questions, but after this one, I'll open it up and see if anyone has a question in the audience, then we can get back to our list. So another priority you highlighted is, on the investment side, to expand the marketplace menu and Instant Quoting Engine. Could you talk about your Google Vertex partnership? Any way to frame or quantify, you know, how impactful is adding instant quoting to a category can be?
Yeah. So we were excited. We announced last year that we're partnering with Google's Vertex AI team, which is doing some really terrific stuff in this space. Again, we're using our data, we're using our algorithms, but they're helping us with techniques that are gonna enable us to speed up our releases of new auto-quoted models. So one of the things we're trying to do is grow our share of wallet within our customers, offer them more things to buy. We wanna auto-quote more and more, because manufacturing is large and our buyers have big spend. Some of them have very big spend. So being able to get out faster in the market, what used to take many months, fewer months or weeks, is gonna be very instrumental to us, and so Google's helping us do that.
And we did talk about it on the, you know, last earnings call, that in the third quarter we're gonna start testing some of those new models that are coming out. We'll start in the United States, and then we'll start testing it in Europe as well.
Any questions in the audience?
When you're not here having fun with us, when you're back in the office around the leadership conference table, what are the, like, two things on the supplier side and the two things on the demand side that you're focused on and healthy debate around, "We got to get a lot better at this in order to kind of rationalize this marketplace"?
Yeah, I think our number one opportunity and challenge is awareness. You know, this is a huge market. We're clearly gaining market share because, you know, the PMI data's been going down, and Xometry, you know, just grew 24% in the first quarter, our marketplace did. So I think a lot of the... what we're focused on is how do we tell more people about what we're doing, get the word out? That's why we're leaning heavily into enterprise. You know, we've been investing in our enterprise team because these are huge companies that are doing large spend. Some of their spend is potentially larger than our entire annual revenue in these categories. We just have to have more people know us. You know, more is more. That's what- that's sort of our motto. More- literally, more is more.
So we need more customers, more buyers, so, you know, often talking about how do we do that efficiently, and as quickly as we can, speeding up our growth, I talked about that in my remarks as well. So that, that's a big focus on, on the buyer side. And then the supplier side, when you talk about suppliers for, for the Xometry marketplace, it's continuing to make sure that, that we're growing those relationships, we're making it easier for them. The easier we can make it for our suppliers, the more likely they're gonna give us great service. We're gonna probably get better prices for them. There's lots of knock-on effects of if we can reduce the friction with our suppliers, because our goal is ultimately not only for every buyer who wants to buy custom manufacturing and say, "Of course, I'm gonna go to Xometry.
I mean, everybody goes to Xometry." But I also want every manufacturer to say, "Yeah, I'm on Xometry. That makes sense. Like, of course, I'm in their marketplace. That's where they are." So we're trying to balance, you know, around that table, how do we make for both those sides to become the de facto operating system and way that they do their business?
Thank you.
Okay, so we talked about international, we talked about expanding the marketplace menu. Any other investment priorities that you'd highlight that we haven't covered?
I mean, building out our efforts on enterprise has been a big area of focus over the last few years, seeing some good, strong momentum there. And Randy actually mentioned a few examples on the earnings call, and we-
Yeah
... we have a new Chief Sales Officer as well, that perhaps we, you know, Randy, you wanna talk about?
Yeah, we're very excited. Subir Dutt joined us last week, we announced, as our new Chief Sales Officer. Subir has a terrific background in enterprise sales, and, you know, as we continue to invest in our bench there and our strength there, and we want to go deeper and wider within these large companies, Subir is gonna be a great leader in that and help us in those efforts.
So, James, maybe tying back some of these investment priorities just to the financials, how do you expect these to impact margins through the course of this year?
Yeah. So I think one thing that we talked about on the call the other week was just framing out our path to profitability and getting to $600 million annual revenue run rate as being where we think we can surpass, you know, break even. I think as we came into the year, a lot of these investments were already in play, so I wouldn't say that there's a new investment cycle or anything incremental, significantly to what the team had in place. I think just as we came into the year, expense was a little higher through some, you know, inflationary impacts across other areas of the business as we came in.
We're adjusting for that with where we are in Q2, and I think as we move forward, we just... You know, now for me and the team, and with Randy, you know, and his team, looking very closely at how we're just deploying that capital, focused on the return we're getting from those investments and areas of, you know, further operational efficiency.
So sticking with that $600 million break-even point, could you just talk about, you know, why that's the right level for you?
Yeah.
What is it about that dollar amount, and then where you still see opportunity for leverage in the business going forward?
Yeah, so building on that, Cory, you know, Randy and I took a close look across the business with our leaders, looking at how we're deploying the capital right now, you know, what we wanna make sure was that we were disciplined but healthy in how we were gonna pass, you know, this important milestone for the company. So it's a very high priority for us, very focused on it. But as we looked—as I was saying, as we looked at how we're set up for some of our initiatives right now, you know, the value that we see that those can drive to overall scaling Xometry, you know, the opportunity ahead of us is so huge that what's, you know, what's important is that we position ourselves to be able to capture more of that.
So growth of revenue, growth of gross profit dollars is what will, you know, is what drives our overall, you know, path to success and profitability, while being disciplined on how we're deploying, you know, our resources on the investments as well as areas of opportunity for efficiency. For example, mentioned on the call, there are some areas in Supplier Services where we see some efficiency in the back half of the year versus the first half that we're focused on.
So when we put all of that together, that's what went into thinking, "Okay, this, let's tie it to growth, let's tie it to getting the scale that we need to be healthy and disciplined in the approach." And then, you know, as we go through the next few quarters, then we'll be able to update everybody in terms of our progress towards that.
Any other audience questions?
James, congrats on the new role.
Thank you.
I'd love to know, like, based on your experience at Yelp, like, what are the immediate lessons learned that you know can be, you know, applicable to Xometry, just based on the past few months you have spent at the firm?
Yeah, thanks for the question. So look, I think that across my background, not just at Yelp, but eBay, Yahoo!, and earlier in my career, in consumer goods and manufacturing,
... you know, it's exciting to bring the manufacturing world, you know, embraced with the technology and the opportunity that we have as a marketplace. And in the first few months, working with Randy and the team, just even more excited about the opportunity that we have here. As Randy, you know, has just explained very clearly, you know, there's a lot of analog out there that we can still bring to digital. There's a lot that we can do to, you know, for the millions of buyers and the, you know, hundreds of thousands of suppliers that are out there and bring them together on this platform.
So I think that a lot in terms of helping Randy and the team on the path to profitability while investing appropriately in the right technology and the right go-to-market are things that I think I can be helpful with as we move forward to, you know, see, see through the opportunity ahead.
Okay, a couple more on the financials, probably for you, James. So you guided to at least 20% marketplace growth in 2024. How should we think about the split between buyer growth and revenue per buyer? And then, more broadly, one question we get a lot is: what are the macro metrics you monitor that most closely correlate to buyer behavior?
Yeah, so as we, as we said, like Q1, really pleased with that performance, 24% marketplace growth. That was built on the back of 32% buyer growth. The impact of large orders, you know, with their slower start to the year, picking up a bit in, in, February and March. We take that into account as we look at, look at the full year. So I think that, you know, for us, there's still a lot of headroom to go on the buyer growth. The pace of that, you know, we'll see and we'll update as we go through, go through the year.
At the same time, though, on the revenue per buyer, as we penetrate further with enterprise and we broaden our marketplace menu, we go deeper into international, there's a lot of levers there as well that can help us on the revenue per buyer. So, and then I do think that, you know, whilst there's not one indicator, as we look generally across the industry, we, you know, we are aware, like, we're growing 24%, so we do believe we're growing share, but the manufacturing environment is somewhat... You know, there are some soft indicators out there, and so we feel really great about how we're executing. But I think as we look to the forecast and our guide, we just need to take that into account in terms of the shorter term.
Yeah, I think just to double-click on that, I think certainly for the guide, we need to be-
Yeah
... smart about that, just be cautious about that. But certainly internally, going back to the question the gentleman asked earlier, you know, we are gaining market share. It is a giant market. So when we come in, we have our management meeting every Tuesday, and we talk about these things, and we're driving our sales teams, there's no conversation about the macro. The conversation is, we need to get bigger faster, and we should be getting bigger and faster because we are the leaders. We are, you know, we are doing a lot of things that other people aren't doing. This is a better way, and it's a giant TAM. So, that's not something that our average, you know, a typical salesperson or employee is thinking about. But again, as we think about the year-
Yeah
... we want to be smart about that with the investor community.
So marketplace gross margin's a big metric for you all that people focus on, reached a record high, 32% last quarter. What's driving that improvement? How do you think about the opportunity for gross margin expansion from here?
Yeah, so gross margin was up 70 basis points quarter on quarter. We were at a record of 32% on the marketplace. The gross profit dollars overall were up then 37%, which is, which is great to see. So I think, you know, again, really healthy, great, great statistics in terms of how we're performing and how our marketplace is performing. AI is the main driver here on the gross margin. You know, looking at continual improvements in our price prediction accuracy, the machine learning, and as we get more data and expand our supplier network as well. So all the things that Randy's talked about earlier all come together in how we're able to optimize and continuously improve our gross margin. Initiatives like with Google Vertex as well will be important to continuing that.
So our system balances the buyer and supplier pricing and the conversion rates over time. It's about gross profit dollars, you know, the combination of revenue and gross margin, then we do still aim to continue to improve our gross margin as we go through the year. But, you know, and as we discussed then, as that progresses, it may not always be up and to the right every quarter, but it's just, it can improve over time.
and an important driver of our gross profit dollars.
And just to take people back, particularly those who are new to our story, when we went public in, in June of 2021, our gross profit margin was a little bit over 24%, or maybe even 23, 23%. So we've made a lot of progress. There are not a lot of companies out there that can have really strong top-line growth and, and grow those gross margins on that. So we haven't been sacrificing gross margins along the way. They've actually been getting stronger and stronger, and that goes back to the fundamental idea that by using machine learning, as we get more and more data, we're getting more and more accurate as we're growing those networks. We expect those trends to continue, and, and going back to that competitive moat, that's really hard for somebody else to, to break into.
Any other questions? One more, and then I have one closing one, and we'll wrap up after that.
Thank you. This is an incredibly naive start for somebody new to the story. Can you talk me through the revenue model of the business, how it works from a... Is it subscription, take rates? How, how do you actually make your money?
So, there's two sides of our business. So there's marketplace and there's supplier services. So I'll talk about marketplace. I can let-
Yeah.
James talk about supplier services. So a customer will come to us, and they're gonna wanna buy custom-manufactured parts. So that could be one part, it could be thousands of parts. They'll come to Xometry. We'll give them a price, and so we'll actually commit to the price. Xometry will. We use our technology to create that price, and then we use our algorithms to find who the optimal supplier is, and then we'll give them a price as well. So we're kind of... We're the market maker for both the buyer and the supplier. And-
That's where AI comes in, to get that numbers.
Exactly. It's about figuring out what's the best price for the buyer, but also, what's the best price for that supplier? Because we give every supplier... When we will show an opportunity to multiple suppliers, and we'll give them each a different price based on their behavior with Xometry. And this goes back to just the inefficiency that exists in our market. And it's hard for people who aren't in our market to understand, this is not like a B2C, where the margins, you know, everybody's prices with 2 or 3%. In our market, prices could be off by 100%, and delivery dates can be off by 100%, and that's what the customer is facing every day.
So our ability and the ability for a customer to find that best solution when there's thousands, hundreds of thousands of small manufacturers, and they're spread out everywhere, and they're hard to find. Even for large companies, it's so hard for them to find that best solution. With our AI, we're getting it closer and closer for them to optimize and find that best one. Likewise, for that supplier to get the job that really is most profitable for them.
And then the Supplier Services side is an ad model. I'll just keep it short at that point. Yeah.
Thanks. So, we have a minute and 30 seconds. So Randy, I wanna end on a bigger picture question. What are the 1-2 things you're most excited about in the years ahead, or that you think could be most transformative to Xometry?
Yeah, international. We'll continue to grow that tremendous footprint. That's very powerful for our customers, particularly our global customers, so that's huge. Growing our share of wallet within our customers, so deploying more of these models, continuing to instantly quote more, expand the menu for our customers, being that one-stop shop, and then for our suppliers, becoming more and more embedded into what they do every day, becoming effectively their operating system as much as possible, so we become their de facto way that they do business, too.
Great. Well, thank you.
Thanks, everyone.
Thanks, Cory.
Thank you.