Xometry Mergers and Acquisitions Presentation Deck

Made public by

sourced by PitchSend

12 of 23

Creator

Xometry logo
Xometry

Category

Industrial

Published

December 2021

Slides

Transcriptions

#1Xometry + I THOMAS II Accelerating Growth of a Leading Global Digital Manufacturing Marketplace December 8, 2021 © 2021 Xometry and/or its affiliates. All rights reserved. Confidential TM EP OF LT 1#2Disclaimer Cautionary Information Regarding Forward-Looking Statements: This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expect," "plan," "anticipate," "could," "would," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern the expectations, strategy, plans or intentions of Xometry, Inc. ("Xometry", the "Company", "we" or "our"). Forward-looking statements in this presentation include, but are not limited to, our beliefs regarding our financial position and operating performance, including our outlook and guidance for the full year 2021, and demand for our marketplace in general. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks and uncertainties related to: competition, managing our growth, financial performance, including the impact of the COVID-19 pandemic on our business and operations and our ability to forecast our performance due to our limited operating history and the COVID-19 pandemic, investments in new products or offerings, our ability to attract buyers and sellers to our marketplace, legal proceedings and regulatory matters and developments, any future changes to our business or our financial or operating model, and our brand and reputation. The forward-looking statements contained in this presentation are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted, including those more fully described in our filings with the SEC, including our Quarterly Report on Form 10-Q for the period ended June 30, 2021. All forward-looking statements in this presentation are based on information available to Xometry and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. Use of Non-GAAP Financial Measures: To supplement its consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"), Xometry uses Adjusted EBITDA, a non-GAAP financial measure, as described below. This non- GAAP financial measure is presented to enhance the user's overall understanding of Xometry's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The non-GAAP financial measure presented in this presentation, together with the GAAP financial results, are the primary measures used by the Company's management and board of directors to understand and evaluate the Company's financial performance and operating trends, including period-to-period comparisons, because they exclude certain expenses and gains that management believes are not indicative of the Company's core operating results. Management also uses this measure to prepare and update the Company's short and long term financial and operational plans, to evaluate investment decisions, and in its discussions with investors, commercial bankers, equity research analysts and other users of the Company's financial statements. Accordingly, the Company believes that this non-GAAP financial measure provides useful information to investors and others in understanding and evaluating the Company's operating results in the same manner as the Company's management and in comparing operating results across periods and to those of Xometry's peer companies. The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense, or cash flows, that affect the Company's financial performance and operations. An additional limitation of non-GAAP financial measures is that they do not have standardized meanings, and therefore other companies, including peer companies, may use the same or similarly named measures but exclude or include different items or use different computations. Management compensates for these limitations by reconciling these non- GAAP financial measures to their most comparable GAAP financial measures in the tables captioned "Reconciliations of Non-GAAP Financial Measures" included at the end of this presentation. Investors and others are encouraged to review the Company's financial information in its entirety and not rely on a single financial measure. Use of Projections: This presentation contains financial projections, forecasts, pro forma information, and Non-GAAP Financial Measures with respect to Xometry and Thomasnet. Such projected financial information constitutes forward-looking information and is for illustrative purposes only and should not be relied upon as necessarily being indicative of future results. The assumptions and estimates underlying such projected financial information are inherently uncertain and are subject to a wide variety of significant business, economic, competitive and other risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. See "Cautionary Information Regarding Forward-Looking Statements" above. Actual results may differ materially from the results contemplated by the projected financial information contained in this presentation, and the inclusion of such information in this presentation should not be regarded as a representation by any person that the results reflected in such projections will be achieved. Neither Xometry's independent auditors, nor the independent registered public accounting firm of Thomasnet, audited, reviewed, compiled, or performed any procedures with respect to the projections, forecasts, pro forma information, and Non-GAAP Financial Measures for the purpose of their inclusion in this presentation, and accordingly, neither of them expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this presentation. These projections, forecasts, pro forma information, and Non-GAAP Financial Measures should not be relied upon as being necessarily indicative of historical or future results. Xometry © 2021 Xometry, Inc and/or its affiliates. All rights reserved. Confidential 2#3Xometry Xometry + I THOMAS Accelerating Growth of a Leading Global Digital Manufacturing Marketplace 5 Accelerates growth of Xometry's marketplace 0. Creates exceptional scale of buyers and sellers DU Establishes end-to-end suite of seller services ΤΗ Enhances margins and accelerates path to profitability © 2021 Xometry and/or its affiliates. All rights reserved. Confidential 3#4Xometry Ⓒ2021 Xometry and/or its affiliates. All rights reserved. Confidential#5Incredible Value Creation from Digitizing Markets @ a PODR Retail Xometry Travel Auto Payments Uber Transportation X Manufacturing © 2021 Xometry, Inc and/or its affiliates. All rights reserved. Confidential 5#6Delivering Strong Growth 26,187 Q3 Active Buyers ¹ 1 16,266 || 3Q20 18,846 Xometry 4Q20 21,345 1Q21 23,942 2Q21 26,187 61% YOY Growth 3Q21 603 Q3 Accounts with LTM Spend of at Least $50K² 361 3Q20 389 4Q20 412 1Q21 508 2Q21 603 67% YOY Growth 3Q21 1. We define Active Buyers as the number of buyers who have made at least one purchase on our marketplace in the twelve months ended September 30, 2021. 2. We define Accounts with Last Twelve-Month, or LTM, Spend of at Least $50,000 as an account that has spent at least $50,000 on our marketplace in the last twelve months. 3. For the year ended December 31, 2020. We define Active Sellers as the sellers that have used our platform at least once during the last twelve months to manufacture a product or buy tools or supplies. 1,410 Active Sellers 3 774 2019 1,410 +82% YOY Growth 2020 © 2021 Xometry and/or its affiliates. All rights reserved. Confidential 6#7Marketplace Focus Through Product Innovation Xometry FOUNDED X AI-POWERED MARKETPLACE 2013-2018 CAD INTEGRATIONS S SOLIDWORKS XOMETRY SUPPLIES SANDVIK VIKING DRILL & TOOL MITSUBISHI OUa MATERIALS XOMETRY EUROPE FINANCIAL SERVICES stripe IPO: XMTR Nasdaq ERP INTEGRATIONS SAP Ariba A 2019-2021 INDUSTRIAL SOURCING & MARKETING SERVICES THOMAS MANUFACTURING (OS) Factory Four © 2021 Xometry and/or its affiliates. All rights reserved. Confidential 7#8II THOMAS™ T Ⓒ2021 Xometry and/or its affiliates. All rights reserved. Confidential 8#9II THOMAS A leading platform for industrial product sourcing, supplier selection, and marketing services Xometry TM 1.3 Million Registered Users1 in North America 93% Fortune 1000 Source Suppliers on Thomas 1. We define Registered Users as unique individuals that complete a registration form on the Thomasnet.com platform. 2. We define Sellers as businesses with paid or freemium listings on the Thomasnet.com platform. 3. We define Annual Sourcing Sessions as total estimated user sessions on the Thomasnet.com platform for 2021. 500K Sellers² In North America >20 Million Annual Sourcing Sessions³ Across 70K industrial categories © 2021 Xometry, Inc and/or its affiliates. All rights reserved. Confidential 9#10Find over 500K commercial and industrial suppliers Source over 6M products Xometry BUYERS + Products and services across 70K categories II THOMAS™ Comprehensive Platform Enabling Digitization of Manufacturing SELLERS ... A High-quality audience of buyers and engineers Platform advertising solutions for OEM and custom manufacturers Advanced full-funnel digital marketing services © 2021 Xometry, Inc and/or its affiliates. All rights reserved. Confidential 10#11II THOMAS™ Combined Buyer and Seller Base Has Extensive Breadth ~2 Million Sourcing Sessions¹ Per Month 45,000 Diversity Certified / Registered Sellers² 20,000+ New Registered Users³ Added Every Month Xometry (GE) Johnson & Johnson LOCKHEED MARTIN LENT OF TRANSPORTAT UNITED STATES OF Top Thomas Users AMERICA EATON DEPARTMENT OF UNITED STATES OF RTMENT THE NAVY PARTME AMERIC OF DEFENSE INTES O AMERICA OF AMER NASA GRAINGER -BASF The Chemical Company ArcelorMittal 1. We define Sourcing Sessions as total average estimated user sessions per month on the Thomasnet.com platform for 2021. 2. We define Diversity Certified/Registered Sellers as the total count of seller classifications for Small & Disadvantaged Business, Minority Owned, Veteran Owned, and Woman owned on the Thomasnet.com platform. 3. We define New Registered Users as new unique individuals that provide personal information to access the Thomasnet.com platform. 4. Reflects Sep 2018 - Sep 2021 CAGR. RTMENT OF THE AIR ENITED TED STATES OF AMER U.S. ENT SECURITY User Registration³ (in 000s) 735 Sept - 18 23% CAGR4 1,378 Sept - 21 © 2021 Xometry and/or its affiliates. All rights reserved. Confidential 11#12Xometry + II THOMAS™ Strategic Rationale PET al 11 © 2021 Xometry and/or its affiliates. All rights reserved. Confidential 12#13Xometry X II A Strategic Fit for Growth Buyers 26K+ Active Buyers TTM -$180M TTM Revenue >20M Annual Sourcing Sessions $0 Buyer Revenue X II Note: TTM reflects the trailing twelve months ended September 30, 2021. 1. For the year ended December 31, 2020. We define Active Sellers as the sellers that have used our platform at least once during the last twelve months to manufacture a product or buy tools or supplies. Sellers 1,410 Active Sellers¹ ~$8M TTM Revenue 5,000 Premium Sellers $67M TTM Revenue © 2021 Xometry and/or its affiliates. All rights reserved. Confidential 13#14Accelerating Marketplace Growth, Raising Long-Term Margins Xometry RAR Expanded Buyer Base Convert Thomas users to buyers on Xometry's marketplace 1.3M Registered Thomas Users with 20+ Million Annual Sourcing Sessions¹ $ Expanded Seller Base Grow the number of Xometry Active Sellers 500K Thomas Sellers² Expanded Basket of Seller Services Add marketing and data services to basket of seller services Expands Seller Services Revenue ~10x 1. We define Registered Thomas Users as unique individuals that complete a registration form on the Thomasnet.com platform. 2. We define Sellers as businesses with paid or freemium listings on the Thomasnet.com platform. 3. We define Adjusted EBITDA as net income (loss) excluding interest income (expense), income tax (expense) benefit, and certain other non-cash or non-recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, stock-based compensation, equity method income (loss) charitable contributions and impairment charges. Smill Improved Margins Increase mix of higher gross margin seller services Improve Xometry pricing with greater data and scale 20-30 % Long Term Adjusted EBITDA Margins³ © 2021 Xometry and/or its affiliates. All rights reserved. Confidential 14#15Xometry Combined Capabilities Significantly Expands Market Opportunity Xometry. CNC Machining Injection Molding 3D Printing Sheet Metal Forming Sheet Cutting Die Casting Urethane Casting + II THOMAS™ 70K+ Industrial Categories including: Tube Fabrication Bending Services Stampings Thermoforming Forgings Roll Forming Rubber Molding $2.4T Total addressable market Xometry + Thomas can together best serve the end-to-end needs of buyers © 2021 Xometry and/or its affiliates. All rights reserved. Confidential 15#16Transaction Details and Outlook C [0] L © 2021 Xometry and/or its affiliates. All rights reserved. Confidential J 16#17Accelerates Growth of Xometry's Digital Manufacturing Marketplace Transaction Details Xometry Transaction Structure Strategic Rationale Financial Benefits Closing and Pro Forma Updates ● ● ● ● ● ● Xometry is acquiring Thomas on a cash-free, debt-free basis for $300 million Consideration of $198.5 million in cash and $101.5 million in Xometry common stock ● Accelerates growth of Xometry's marketplace Creates unparalleled scale of buyers and sellers Establishes end-to-end suite of seller services Enhances margins and accelerates path to profitability Including the benefits of synergies, in 2022 pro forma company will maintain revenue growth in-line with Xometry standalone Accelerates Xometry's path to profitability, with full year profitability anticipated in 2023 Immediately accretive to gross margin and Adjusted EBITDA margin¹ Transaction is expected to close by December 10, 2021 • Pro forma basic shares outstanding of 43.8 million post acquisition 1. We define Adjusted EBITDA as net income (loss) excluding interest income (expense), income tax (expense) benefit, and certain other non-cash or non-recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, stock-based compensation, equity method income (loss) charitable contributions and impairment charges. © 2021 Xometry, Inc and/or its affiliates. All rights reserved. Confidential 17#18Xometry + Thomas at a Glance For the twelve months ended September 30, 2021 | $ in millions Xometry Revenue Gross Profit Margin Adjusted EBITDA¹ Margin Executive Redundancies² Xometry. $189 $46 24% ($34) (18%) II THOMAS $67 $57 85% ($2) (3%) $3 TM Xometry + II THOMAS Note: For illustrative purposes figures represent the trailing twelve months ended September 30, 2021, with no pro forma synergies. 1. We define Adjusted EBITDA as net income (loss) excluding interest income (expense), income tax (expense) benefit, and certain other non-cash or non- recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, stock-based compensation, equity method income (loss) charitable contributions and impairment charges. Please refer to the appendix for a reconciliation of Adjusted EBITDA. 2. We define Executive Redundancies as annual compensation for departing Thomas executives and board of directors, as well as other payments made to private ownership. $256 $102 40% ($37) (14%) Xometry + I THOMAS ($34) (13%) TM © 2021 Xometry and/or its affiliates. All rights reserved. Confidential 18#19Setting the Stage for a Stronger 2022 & 2023 2022 pro forma growth rate unchanged vs. standalone ▶ Accelerate path to profitability to 2023 1. We define Adjusted EBITDA as net income (loss) excluding interest income (expense), income tax (expense) benefit, and certain other non-cash or non- Xometry recharitable contributions and from time to time, principally comprised of depreciation and amortization, stock-based compensation, equity method income (loss) impairment charges. ... Accretive to gross margin and Adjusted EBITDA margin¹ © 2021 Xometry and/or its affiliates. All rights reserved. Confidential 19#20Raising Long Term Margins Outlook % of Revenue Gross Margin Operating Expenses Adjusted EBITDA Margin¹ Old 35 - 40 % 15 - 20 % 15-25% 1. We define Adjusted EBITDA as net income (loss) excluding interest income (expense), income tax (expense) benefit, and certain other non-cash or non- Xometry recharitable contributions and from time to time, principally comprised of depreciation and amortization, stock-based compensation, equity method in (loss) impairment charges. New 40 - 45 % 15 - 20 % 20 - 30 % © 2021 Xometry and/or its affiliates. All rights reserved. Confidential 20#21Appendix C L © 2021 Xometry and/or its affiliates. All rights reserved. Confidential J 21#22$189M TTM Revenue 48% TTM Revenue Growth 92% 2018 - 2020 Revenue CAGR Xometry at a Glance Xometry months ended September 30, 2021. 26,187 Q3 2021 Active Buyers¹ 95% Q3 2021 Revenue from Existing Accounts³ -30% of Fortune 500 67% YOY Growth in Accounts with LTM Spend of at Least $50,0004 Note: TTM reflects the trailing twelve months ended September 30, 2021. 1. We define Active Buyers as the number of buyers who have made at least one purchase on our marketplace during the last twelve months. 2. For the year ended December 31, 2020. We define Active Sellers as the sellers that have used our platform at least once during the last twelve months to manufacture a product or buy tools or supplies. 3. We define an existing account as an account where at least one buyer has made a purchase on our marketplace. 4. We define Accounts with Last Twelve-Month, or LTM, Spend of at Least $50,000 as an account that has spent at least $50,000 on our marketplace in the twelve 1,410 2020 Active Sellers² $45M TTM Gross Profit 63% Growth © 2021 Xometry, Inc and/or its affiliates. All rights reserved. Confidential 22

Download to PowerPoint

Download presentation as an editable powerpoint.

Related

ILPT Q2 2023 Financial Results image

ILPT Q2 2023 Financial Results

Industrials

Investor Presentation September 2023 image

Investor Presentation September 2023

Real Estate

Strategic Expansion in the Resilient Data Centre Segment image

Strategic Expansion in the Resilient Data Centre Segment

Real Estate

Economic Impact of NOS4A2 in Rhode Island image

Economic Impact of NOS4A2 in Rhode Island

Television & Film Industry

Strategic Entry into Japan's Data Centre Market image

Strategic Entry into Japan's Data Centre Market

Industrials

GIDC Gujarat Industrial Development image

GIDC Gujarat Industrial Development

Industrials

WF Hebei Wenfeng Industrial Co. Corporate Presentation image

WF Hebei Wenfeng Industrial Co. Corporate Presentation

Financial

Dadra & Nagar Haveli Industrial Policy Pitch image

Dadra & Nagar Haveli Industrial Policy Pitch

Financial