Xometry, Inc. (XMTR) Earnings Call Transcript & Summary

I think in the interest of keeping this on time, if I'm right, we should jump right in. So thanks, everyone, for joining the next session. So it's my pleasure to have the team from Xometry here. We've got Randy Altschuler, the Co-Founder and CEO; Shawn Milne, Vice President, Investor Relations. Thanks, guys, for being part of the conference.

Thanks, Eric.

Thanks you for having us.

All right. So let's jump in and start maybe big picture. Randy, I think for those who don't know Xometry as well, you've obviously built a really unique and interesting multisided marketplace in the last couple of years. I'm curious as I think about the platform you've built and maybe laid the foundation for the path you've been on over the last couple of years.

Sure. So Xometry is the leading two-sided marketplace for custom manufacturing. So when you think about manufacturing, obviously, one of the largest verticals in the world. And there's a segment of that, about $2 trillion, where customers are buying parts from small- and medium-sized manufacturers. And these customers are the largest companies in the world to small companies. And these are orders that large contract manufacturers can afford to take. So customers have to go to these small- and medium-sized manufacturers. These are bespoke parts, so they're customized parts, not off-the-shelf parts for each manufacturer. And the pricing for that is very opaque and inefficient. So if a customer went to 2 suppliers and ask for pricing on something, the price differential could be 100%. And historically, it's taken hours, days, sometimes weeks for the customer to get that price from the supplier. So for the customer, they're rarely getting the best deal, and it's very expensive and time-consuming for them to find the right manufacturer. On the flip side for the suppliers, heavily fragmented marketplace, hundreds of thousands of small manufacturers in the U.S. I think there are 600,000 manufacturers, 75% of them have less than 20 employees. And the long tail of the Internet hasn't touched these small manufacturers. There isn't another place on the Internet historically for them to sell their open capacity. So using artificial intelligence, we are connecting the buyers and suppliers of this custom manufacturing and using that AI to create instant pricing, the prices for both the buyers and the suppliers and to optimize the match between the two.

Great. Inefficiency friction, all kinds of things we love to see in terms of marketplaces and what they're trying to solve for.

And here's a great thing. We're B2B. There is -- unlike a lot of the B2C, where you've got a gazillion guys doing this, this is -- we built a huge competitive moat. And as we grow internationally and as we grow our data set, that moat continues to grow alongside it.

So one of the inefficiencies you talked about there, Randy, is pricing. Talk a little bit about what you've built on the AI side from a pricing model standpoint, how it's evolved and how people should be thinking about that lowering friction and improving sort of transaction velocity on the platform.

Yes. So again, when you think about sort of traditional online retail, you're buying SKU, a pair of jeans, a quart of milk, whatever it might be. And so inherently, prices between if you went to 2 different websites, maybe they're off 5%, maybe 10%. And you as the buyer inherently have a pretty good sense right out of the gate of what that should cost. In custom manufacturing, there are hundreds or sometimes thousands of different reasons why the prices could be different. So a supplier could have just the right machine and they can make the parts twice as fast as somebody else can make it. Somebody needs a special kind of finishing. These parts are going to be in space, and maybe the special kind of finishing and one guy can buy that for $3,000, the other guy can buy that for $5,000. So historically, to try to come up with a price takes a supplier a long time. They're trying to figure out how long would the machine run, they're calling people up for price estimates on the material and how much is that cutting tool and how much in a supplier. And so that's why the customer would have to wait a long time to get it. So it's like you go to the supermarket, you fill up your cart and they say, "Come back in a week and we'll give you the price for it." The only way to solve that problem, you could try to figure out every little permutation and try to calculate it out, but that would be almost impossible to scale. So instead, we're using a technique called machine learning or deep learning. And we're basically trying to figure out all the features of a particular order and train our models on those features. So there will be hundreds of thousands of different features that we're training on to try to come up with what we think how this part relates to a part, all the different kinds of parts we've made in the past. And as we get more and more data, we're smarter and smarter about what this particular price should cost, how much it's going to cost me to make and particularly, how much it's going to cost our suppliers to make. But it's dependent on getting that data and training your models to do it.

So you've gone through a number of evolutions of pricing, experiments around pricing. What have been some of your key learnings as you sort of experimented with pricing models in general? And how do you think about some of the inefficiency that could still come out of pricing as you continue to scale in the years ahead?

Yes. So there's a couple of things that we're learning. So one is going back to the power of data. As we scale and we get more data, we're more and more accurate at figuring out if this customer has a particular price, it's not novel to us. We -- as we get more data, we can figure out more accurately what this truly should cost. What are all these different features. Even though there's got lots of different features to it and aspects to this, we have a better sense of really what this should look like, like a comp for a company like we have really good comps for that company. And likewise, we've learned that for a supplier, the key is finding what fits their sweet spot. So if you're a manufacturer and you have 10 hours of machine time, one job can give you a 5% margin, another job can give you a 40% margin. So your ability to give that supplier that higher-margin work actually will be a boon to the supplier, but that also can translate to a better price for the buyer. So in addition to lots of data, you have to make sure you're also growing a robust network of suppliers, too, because that will enable you to find that unicorn, that best price for that buyer. And then, of course, the more suppliers, the more buyers you're going to get.

That's what we've talked about, the data and the number of suppliers on the back end, right, to find that optimal match. And we've taken the supplier base up pretty dramatically in the last couple of years and a really, really low marketing cost for us, and we have a waiting list for suppliers to come on. So that's -- it's a good piece of the equation.

Got it. Okay. Just going back to the buyer side first, just for those who are maybe less aware of it, talk a little bit about how a buyer find you in the first instance. And what some of your learnings have been on how buyer behavior has evolved as a buyer has aged on your platform or cohorts have matured.

Yes. And just a snapshot of our buyer, we work with some of the largest companies in the world. If you're a Fortune 100, 500, 1000 company and you're manufacturing something, there's a good chance that you're a Xometry customer today. And our largest accounts, customers tend to be -- if I gave you the list of our top 100 accounts, most people in this room would recognize a lot of them. So one of the problems that we're solving for our buyers is if you're an OEM and you're buying hundreds of millions of dollars of manufacturing a year, you're going to probably put your purchasing into 2 buckets. One is stuff where there's big-ticket items and where you're going to want to own that relationship directly with that Tier 1 large contract manufacturer. And then you've got a pretty significant part of your spend that's going to scores, maybe tens, hundreds of small manufacturers. And that's very expensive for you to manage. It's still with lots of risk. So the ability to come to Xometry and consolidate your spend for all these smaller orders is very powerful. Think about it like on the retail world, if you go to Amazon and you're buying from 3P versus 1P, like it gets very powerful who will get all that through one experience. So over time, we've learned one of the keys to success is our land-and-expand strategy, going to these large companies and continuing to broaden what they're buying from the Xometry Marketplace. Some of that's about selling into them, some of that's about making enhancements in our technology to make it easier to remove friction. So we integrate directly into their ERP systems. We're making enhancements to our software so they can interact with one another, groups of buyers and engineers can interact. So that's one element to it. And then another element is just expanding, adding what things we can offer them to buy the different kinds of manufacturing technologies.

So sticking with the buyer side, one of the more interesting elements of the company in the last couple of years was when you decided to do the Thomas acquisition. Can you talk a little bit about why you landed on that acquisition in terms of allocating capital and how it continues to evolve in terms of the buyer side and elements of the marketplace dynamics that are created as a post effect of that acquisition you've done?

Yes. So Xometry co-founded the company in 2013. We opened our doors for businesses in 2014. We've been growing like a weed, and we're the leader in this instant pricing, this two-sided marketplace and very proud of that. But there's an even larger TAM as we think about manufacturing, it's huge. Thomas was a 100-year-old company, basically classified a giant site where you could search for, think about like the poor man's Google for manufacturing where you could find in this custom manufacturing world, lots of additional categories that we don't offer on Xometry already. And a huge network, 500,000 North American suppliers listed there and a trusted brand that had been around forever, very loyal following, spent very little on marketing, but was getting a lot of organic traffic. So as we think about growing into this $2 trillion TAM, we want to be that one-stop shop for our customers. So buying Thomas enable us to expand to different categories of manufacturing we could offer. Thomas had over 1.2 million active -- 1.2 million users who've used Thomas. That's in contrast to we just had a record-high of active buyers of 48,000 in Xometry, very proud of that.

It's now 1.3 million.

Okay. 1.3 million in Thomas, so huge buyer base that had not even heard of Xometry before and Thomas earned over a long time. So it was the opportunity to buy a huge group of potential buyers, a huge group of active suppliers in to expand what we could offer customers.

Okay. You also talked a little bit on this on the last earnings call about your 5-point strategic plan and focusing on top 200 focus accounts. So alongside what you're trying to build from a marketplace standpoint, could you also talk about how this focus on your top 200 accounts feeds into where you're trying to drive your most interesting growth opportunities from going forward?

Yes. So as we talked about -- and just to give some perspective here, Xometry has grown like a weed from 2019, 2022. We grew our marketplace revenue 59% on a compound annual basis. Our gross profit, by the way, during that period grew over 82%. So we've been growing very rapidly, but we're still relatively small versus our TAM. When you look at our largest customers, that top 200 accounts, which accounted for about 50% of our marketplace revenue in the United States in 2022, many of those accounts spend more than our revenue annually in custom manufacturing. So one of the things we've learned as the economy has gotten tougher, going deeper into those accounts is both fruitful from a revenue perspective, but also is more profitable revenue for us as well as we're amortizing our costs across them. So we made an initiative in the beginning of this year to focus more of our sales and sales enablement effort on those larger accounts. We're also investing in technology that, again, that enables us to be more of an enterprise solution for them because there's just so much -- we've got a great chart in our earnings deck about the CAGR we've got for those accounts, but they're still so far to go, and investing in those just makes a lot of sense.

So when you think about the opportunity set that sits in those top 200 focus accounts, what are some of the identifiable elements of friction to gain more wallet share that you're sort of targeting or going after that we should be watching for from the outside looking in, that could be an amplifier of your growth rate going forward?

Yes. So think about -- let's take it back, who's the buyer? So if the buyer is the Vice President for Manufacturing or Supply Chain or Procurement, they're usually responsible for a collection of spend. So they've got $50 million a year that they're spending in plastic custom parts or in metal custom parts, and it cuts across different technologies. So the ideal value proposition is to go to that customer and say, "Hey, listen, you can take that whole $50 million." And instead of you going to 200 different small suppliers and managing these and all the risks that are associated with them, they're small companies and there's financial risk with them or somebody gets sick or there is a weather risk or maybe some of them are in Asia and there's geopolitical risk, you can come in Xometry and do that in one place, that's really appealing. So you have to be wide enough to be able to take all that spend from that customer. Then you have to reduce friction. How easy do I make it for you to pay? So like these integrations with the ERP systems, they call it punch out, I can go -- I don't even have to come to xometry.com. I can buy from Coupa, I can buy from Ariba, right within my ERP buy, that's really attractive to them. And then how do I make it easy for my internal customer? You're the buyer, you're the Vice President of Manufacturing, you've got 300 engineers and procurement people that are buying things, how we make it really easy for them to all buy from Xometry? So giving tools like this new teams, we haven't given an official name yet, but team software that we brought out, which makes it easier for groups of engineers to work together in procurement people, that just makes it easier for them to all congregate together in Xometry and to buy from Xometry. So it's reducing friction.

And it allows them to bring in new engineers and procurement folks virally within the organization, which is no customer acquisition to us. So we're in pilot, as you know, on that with several large customers. And as we talked about on the call, we like what we see. But not only can possibly drive customers virally onto the platform, but again, just broader and deeper engagement at the project level, we think, is going to be very positive.

Got it, in terms of wallet share, understood. We've talked a lot on earnings calls about the international opportunity against your addressable market. Can you give us a current state of the international business, where you -- what you're most excited about in terms of pockets of growth going forward, how you're allocating capital and investment dollars against that international opportunity?

Yes. So just some history. So we entered -- our first international market was Europe. And when we talk about international, we're talking about building localized networks and platforms in those markets. So if you go to xometry.eu wherein, I think, 11 different languages from Italian, Spanish, French, German. You go to xometry.asia, we're in Chinese, we've got Turkish. So when we talk about going international and talk about building local networks for local customers in those countries. And those are also networks we can offer customers worldwide. So at the end of 2019, we entered the European market. And by Europe, we're talking about the EU plus the U.K. And just to give some perspective, in 2020, our international segment generated $3 million of revenue. On an LTM basis, it was about $46 million of revenue. So -- and 3 years or whatever, we've grown from $3 million to $46 million. And again, that's really been in the EU plus the U.K. We brought on China online, xometry.asia, last year. That's growing now. We've got a great deal that we signed, a distribution deal with one of Alibaba's large B2B retail sites in China. And then we also have now entered the Turkish market as well. So we see international growth like other marketplaces. We can imagine that at some point, it will be 40% to 45% of our revenue, and we expect that robust growth to continue for a long time.

Got it. Flipping from the buyer side to the manufacturer side, can you talk a little bit about continuing to build scale on the manufacturing side and solving for some of the points of friction of onboarding more manufacturers on to the platform as well.

Yes. And again, one of the differentiators that we have is this is not unlike the B2C world where you've got lots of people doing this. In the B2B world, we're kind of -- we're -- [ that cuts me out ], I don't know if people say it anymore. But we're the place to go. So I think Shawn alluded to this in the beginning or he mentioned it, we have a waiting list of suppliers who want to join our marketplace. That's a really good place to be. So one of the value props we have for our suppliers is we're giving you work that best fits your capabilities, it's more profitable. So think about it almost like a recommendation engine. If you -- the more TikTok videos you watch, I've got a 16-year-old, the more he watches, the more TikTok knows the next video that he wants to watch. It's the same thing with our suppliers. The more they work with us, the more they're likely to get work that they like to get. So that becomes very addictive to them. But on top of that, we've given them the software called Workcenter. So we bought a small MES, manufacturing execution system, almost like an ERP for manufacturers, company in Southern California 2 years ago. And that was a paid product, the SaaS product. We released a free version of that Workcenter, and we've given that to all of our manufacturers in Xometry and in Thomas. And so that system is designed to make it easier for manufacturers to manage their work, to manage their quality, to ship, get the shipping label, to enter data into their accounting system. Usually, it's QuickBooks and things like that. So we're not only giving these suppliers better work, more profitable work, and we're getting smarter and smarter about what that is, but we're actually -- and we're reducing their sales and marketing spend where they don't have that sales and marketing people. We're also making their operations more effective and efficient, and we're helping them with their quality. We're adding more and more features to Workcenter to reduce more and more friction. So our ultimate goal here is for the supplier to say, "I would rather run my business out of the Xometry platform than do it on my own. Xometry is giving me all these tools to make it really simple. I kind of think about it like a Shopify, then this is the best place for me to be."

So sticking with that point, the more you scale supplier services, how should we be thinking about that being a stimulant for supplier growth as people come up a wait list? Elements of possibly extracting better unit economics from suppliers in the marketplace over time because you're giving them more value add versus elements of reducing any elements of churn on the supplier base as well. How should we think about the outputs of some of the supplier services investments?

Do you want to jump in at it?

Yes. I mean look, we want -- the more they run their business with our operating system, if you will, the more sticky they will be on our platform, number one. Number two, we offer that up for free because we think the monetization will be we can offer them financial services products. We're right within Workcenter. We can help them with their cash flow. And we make -- as you know, Eric, we make a little money on the interchange fee there. So that's a very high-margin opportunity. But it's really we want them to be sticky and work more with Xometry. And the other -- the Holy Grail might be, and maybe Randy will agree to this is, as we learn more about their business, that can feed into our AI. And we may -- we get to a point we don't know a lot about their day-to-day capacity right now. But with Workcenter, we might be able to target those jobs to an individual supplier that may have a capacity opening for a few hours. So you think about the opportunity for us to -- that supplier may be able to take a job at a lower price, which is good for our margin.

Yes. So one of the broader questions that's come up in different forms over the last couple of earnings calls is just elements of you've got this secular growth addressable market opportunity behind you, but we also live in sort of economic uncertain times. How should we be thinking about the economic resilience or how either side of the marketplace can be more or less volatile depending on what you see in the broader macro environment right now?

I'd say -- and Shawn, interrupt me at any point here. I'd say overall, we are taking market share. So you've seen other -- there's some vertically integrated manufacturers out there who reported consistently shrinking revenue year-over-year. So the macros really hit them and some manufacturers who are getting hit as well. Even during that period of time, Xometry has continued to grow at a robust pace. And that's because it just makes more sense for people to buy so many other things that become digitized. You see so many other marketplaces that approach this, it makes sense for that to happen in manufacturing as well. You also think as in tougher economic environments, customers are looking more and more for surety, particularly if these are end-use production parts that their end product depends on, they don't want to take risk. And they know in uncertain economic times, smaller manufacturers are more vulnerable. So there's a flight to safety, a flight to supply chain resilience, Xometry offers that. And particularly, when you think about geopolitical issues, a lot of folks doing things in Asia, again, Xometry is sort of your support to make sure that everything goes right. And likewise for the suppliers, their particular customers, if you're that supplier in Houston, Texas, that depends on oil and gas, if the oil and gas industry is not doing well, you have no business; or if you're an automotive guy outside of Detroit, you have no business, the ability for Xometry to help you in those distressed times is very powerful. The trick is, of course, once they get attracted to you in those more difficult times, keeping them and growing them, we're obviously very focused on that. The lure is in there now, removing the friction, ensuring that every time that buyers get the best deal and that supplier is getting stuff that really fits their envelope and their capabilities.

And the one thing we talk about, and we spent a lot of time with investors after the call is, look, I mean, we've said it on the call, the underpinnings of our marketplace are growing much faster than our reported revenue. Our active buyers are up in the mid-40s. You can infer that our order growth is in that same kind of ballpark. But we've seen some customer trade downs. And so our reported revenue has been tracking slower, was 24% in Q2. That comes to an end in Q4, right? That's when we saw really the ARPU go down last year when manufacturing slowed. But it's really important to understand that underneath that, the activity in the marketplace is robust.

Understood. And sticking with that theme, you've talked a little bit about competition through all of this. But do you kind of see yourself as a unique solution without competition? Or are there pockets of competition between the online world and the offline world that you stay pretty focused on in terms of trying to think about unit economics and volumes and who you're competing against on a day-to-day basis?

Our competition is the old way of doing business. It's not even so much the suppliers because our suppliers are often the same suppliers who are providing those services today, it's about how you procure that, how you manage your supply chain. And so convincing customers, showing them the value that there's a better way to do it. And by the way, if you love your particular machine shop, you can still work with them. You're just going to do it via the Xometry Marketplace. And again, our suppliers are buying -- our customers are buying so many other things like that today. Marketplaces are everywhere, digital buying online is everywhere, instant pricing is everywhere. They're also just asking why not here. So it's resonating, but that's really our competition. It's not one particular manufacturer, et cetera. It's just, hey, this is the old way of doing things, it's the better way of doing things.

So I mean I just was going to say, on the unit economics, I mean, it's a good point. So because of AI, because we're getting better at pricing, our gross margins are up sharply year-over-year, right? At the same time, we talked about on the call, our advertising spend is getting more efficient. When we came public a couple of years ago, there were some other SPAC players that raised some capital. They didn't have a similar business model, but they were out spending a fair amount on paid search. And so we're just seeing increased efficiency there. At the same time, we're seeing gross margins go up, so our unit economics are improving.

Got it. Sticking with...

And just to have a perspective, in 2019, our gross margin for marketplace was -- or our overall gross margin was like 18.4% plus. Last year, our marketplace gross margin was, I think, 28.8%, almost 29%. So even as our revenue over that 3-year period grew, on a compound annual growth basis, 59% of our marketplace revenue, our gross profit margin. And this is rare. Companies usually sacrifice margin for growth. Our margin actually grew even faster, and those unit economics became more attractive.

Got it. Sticking with the theme of the better way to do things, you've talked a lot through some of your answers so far about some of the product innovation on the pricing side and the supplier side. Talk a little bit about what you see as the most mission-critical product initiatives you're most excited about executing on over the next 12 to 18 months that could either amplify growth or improve return on capital for the platform.

So certainly continue to invest heavily in our AI algorithms. We have patents around them, they're proprietary. That helps us -- it helps us create more attractive pricing for the buyer. So more buyer stickiness, they're going to get what they're expecting to get. Looking for, they're going to stay with us. We're going to increase our share of wallet. It also improves our margins. The ability to expand what we can auto quote, so adding more and more so we can be that one-stop shop, reduce that friction and for us to improve the matching between buyers and suppliers. So continued investments and improving on that AI, the ability to service those enterprise customers. So Xometry historically has been more for a single engineer or a single procurement person to use. The ability now for groups of people and companies to work together, that has the ability then for people to invite them in, kind of like we got Slack, everybody got a new site, it's Slack. If you wanted to communicate, you had to be in Slack. Same concept with Xometry as we add these enterprise offerings. It just -- it reduces our CAC and just allows us to grow quicker, more virally within these large companies. I know those are 2 of the ones I know.

I would just -- I would add to international, right? I mean we talked about -- I mean, for a company that we just talked about buyer growth and order growth, let's say, in that sort of 40% range, it was difficult to have workforce reductions at that kind of growth. But what we've done is we've taken some of the fixed cost out of the business and some of the support costs out of the business. We've reinvested some of it, and some of that's because it's going international. I mean we saw -- we had 96% year-over-year growth in Q2, and we expect stronger dollar growth in the second half of the year versus the first half. We've got a lot of momentum over there.

Got it. Understood. We've talked a little bit about profitability and how you haven't sacrificed profitability to produce the type of growth you have, and that's been an area where the last couple of quarters, there's been some outsized beats versus expectations on the margin side as well. Talk a little bit about scaling into a higher level of profitability as a company in the coming years. How should we think about the balance between investing while still scaling your profitability, but not sort of giving up on some of the growth objectives you have more broadly inside the company?

Yes. So we've talked about how in the fourth quarter this year, we want to achieve adjusted EBITDA profitability, which obviously would imply for next year an overall profitable year. So we've been working hard to reduce our fixed costs. And so we want to improve that unit economics because as we grow, we want that to be more and more profitable growth. We want more of that to go down to our bottom line. So we've done -- as Shawn said, we did one reduction in force to 6%. We did another reduction in force of 4%. We closed some of our offices. So we want to contain -- continue to have that robust growth. At the same time, we want to make sure that we're building attractive unit economic, scalable economics. And so we're balancing those two things. And I think we're committed to both. I don't know if there's anything you want to add to that.

No. I mean in the first half of the year on an incremental EBIT -- adjusted EBITDA basis, we dropped about $0.44 to the bottom line. In the second half, if you kind of work through the guidance, it's about $0.40. So we've made those decisions, as Randy said, to lower some of those costs. But again, we are putting some back in the right spots though.

When you think about -- and I think this will be a debate with companies going into next year, when you think about striking the right balance, what would be some of the opportunity sets where if you got signals to go faster on the growth, that you might think about just holding or maintaining incremental margins because you don't want to miss out on a growth opportunity? How do you think about what some of those most interesting opportunity sets might be?

Look, we want to grow our gross -- I'm not sure quite what you mean. But if we want to grow our -- we're focused on growing gross profit dollars. We want to make sure we've got improving unit economics and ultimately amortizing that OpEx over our gross profit. So we're trying to balance that. We certainly want to make sure we continue that robust growth. But we've been successful, as we said over time, to grow that revenue, at same time, grow that gross profit even more and not lose -- we've maintained robust growth in our active buyer count and our growth in orders. Because this is such an inefficient market, I think as we continue to get more data and as we continue to grow our network and suppliers, I think we'll be able to still get that growth while getting that margin as well.

Okay. Maybe I'll ask it a little bit differently. When you think about allocating capital behind the business over the next 12 to 24 months or just pockets where you see opportunity to execute and drive better growth through execution or allocation of capital, how would you rank order some of the opportunity sets for capital allocation and execution behind those growth goals as a way to sort of wrap up in the last few minutes?

Certainly, technology continues to be a big investment. We talk about our AI algorithms, enhancements to our -- to both our platform for our buyers, whether it's xometry.com or Thomasnet.com or Workcenter, the product that we give our suppliers. As Shawn said, as we continue to invest in international growth, that's helpful not only for the local markets, but we also have a lot of customers that are truly international that are in multiple geographies. And so the ability to go to that customer and say, not only can I offer you multiple technologies here in the United States, but by the way, you can do your purchasing in Western Europe, you can do your purchasing in Asia. All of that can happen through the Xometry Marketplace, and we can deliver it to you locally. I think that's very powerful, too.

I think the other one is we talked even on this call that we just got the largest production, multiyear production order in the company's history. We do -- we get 7-figure deals. We just brought in a new Head of Enterprise Sales, who was at Salesforce. And look, we have the opportunity. It's not here today, but we have the opportunity to have -- these are the largest companies in the world who are customers. We know they do multitudes of what our revenue is in terms of customer manufacturing. Can they sign up for a commitment of spend to Xometry that would be meaningful and we'd have to tell you guys about it? And so that's a real target. And part of what we had to set up in advance was we had to have the menu on the marketplace be broad enough, right, so we can be that one-stop shop. And we've expanded that significantly in the past couple of years. We have an enterprise sales force. We've already invested in that. We can always continue to improve on that capability. And we have a new leader there, and stay tuned.

All right. Well, super clear. So please join me in thanking the team from Xometry for being part of the conference this year.

Thanks, Eric.

Thanks, Eric.