Q1 2023 Xometry Inc Earnings Call
Okay.
Good day and thank you for standing by welcome to Dmitry incorporated Q1 2023 earnings call. At this time participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session to.
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Please be advised that today's conference is being recorded.
I would now like to hand, the conference over to your speaker today, Sean meal, but vice President of Investor Relations. Please go ahead.
Yeah.
Okay and thank you for joining us on geometries Q1, 2023 earnings call. Joining me are Randy I'll Schuller, our Chief Executive Officer, and Jim Rallo, Our Chief Financial Officer during.
During today's call, we will review our financial results for the first quarter of 2023 and discuss our guidance for the second quarter and full year 2023.
On today's call, we will make forward looking statements, including statements related to the expected performance of our business future financial results strategy long term growth and overall future prospects.
Such statements maybe identified by terms such as believe expect intend and May. These statements are subject to risks and uncertainties, which could cause them to differ materially from actual results.
[noise] formation concerning those risks is available in our earnings press release distributed before the market opened today and in our filings with the U S Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2022, and our Form 10-Q for the quarter ended March 31, 2023 that will be filed later today.
We caution you to not place undue reliance on forward looking statements and undertakes no duty or obligation to update any forward looking statements as a result of new information future events or changes in our expectations.
We'd also like to point out that today's call. We will report GAAP and non-GAAP results. We use these non-GAAP financial measures internally for financial and operating decision, making purposes and as a means to evaluate period to period comparisons non.
non-GAAP financial measures are presented in addition to and not as a substitute or superior to measures of financial performance prepared in accordance with U S. GAAP.
To see the reconciliation of these non-GAAP measures. Please refer to our earnings press release distributed today and our Investor presentation, both of which are available in the investors section of our website at investors <unk> Com a replay of today's call will also be posted on our website with that I'd like to turn the call over to Randy.
Thanks, Sean.
Good morning, everyone and thank you for joining us for our Q1 2023 earnings call.
In Q1, we had the highest revenue in <unk> history.
We grew revenue, 26% year over year, including 35% year over year growth in marketplace revenue. We added a record number of active buyers as we continue to gain market share we significantly increased gross margins and operating leverage reducing our adjusted EBITDA loss in Q1 from Q4 by 17%.
And by 23%, excluding nonrecurring Sarbanes Oxley Act implementation compliance costs.
The continuing shift to digital is inevitable and it's a leading two sided marketplace geometries asset light digital marketplace creates efficiencies and value for buyers and suppliers alike.
Artificial intelligence is at the heart of geometry, generating prices for buyers and suppliers across a range of on demand manufacturing processes.
We continue to develop our proprietary machine learning algorithms, adding support for additional features such as new materials and finishes and training our models on an increasingly large datasets of custom manufactured parts.
Our technology helps buyers significantly reduced their time to market and strengthen their supply chains and enables small and medium sized suppliers to fill their capacity with work that can boost their growth and profitability.
With our market, leading position and increasingly global footprint and a total addressable market of two trillion dollars. We expect to continue to grow rapidly for many years to come.
While there are no shortcuts, we are steadily and methodically executing on our vision of becoming the de facto digital rails for custom manufacturing.
In Q1 Rep.
Revenue increased 26% year over year to $105 3 million.
Q1 marketplace revenue was $86 7 million, representing 35% year over year growth.
We saw strength across all processes, and many verticals, including electric vehicles energy industrial equipment and robotics, our value proposition continues to resonate strongly across all sizes of businesses, especially large enterprise customers.
Supplier services revenue was $18 6 million down 3% year over year.
Gross profit increased 20% year over year to $39 $4 million driven by 41% growth in marketplace gross profit.
Q1 marketplace gross margins increased 140 basis points year over year, and 170 basis points quarter over quarter to 28, 8%.
Active buyers increased 46% year over year to 44716, driven by a record addition of 4052 active buyers in Q1.
Active paying suppliers grew by 11% year over year in Q1, 2023 to 7621, driven by growth in Thomas marketing products, including self serve.
Starting this quarter, we will provide the number of active paying suppliers on a quarterly basis to give an additional kpis for supplier services segment.
In active paying supplier is defined as a supplier who purchased one or more of our supplier services, including digital marketing services data services financial services or supplies during the last 12 months.
International revenue grew 77% year over year, and 13% quarter over quarter, driven almost entirely by the growth in our European business.
Metairie Asia is growing with strong momentum, including the planned launch with Alibaba 16, 88 dot com in Q2.
In Q1, we continued to execute on our five point strategic plan, we outlined during our Q4 2022 earnings call Here's an update on our progress.
We refocused sales efforts and our top 200 accounts, which represented approximately 50% of 2022 U S marketplace revenue.
The collective spend at least 200 accounts of manufacturing far exceeds arbitrates current revenue.
So in early 2023, we redirected salespeople and customer support to them.
Given the higher spend we are with these accounts and the potential to grow that spend significantly in the years to come we are pushing deeper and wider into them.
Accounts are increasingly engaging us to potentially support the production business and to manage their tail spend.
While the sales cycle for these efforts are longer the potential spend from these transactions is significant.
This does not change our goal of rapidly expanding our base of buyers through digital marketing and other marketing efforts.
In fact, we're seeing strong signs of increasing brand awareness as our organic search volume is growing at a rapid clip, helping fuel record growth of new active buyers.
In Q1, we made significant progress in expanding our marketplace menu.
As we grow the number of processes materials and finishes we can offer our customers we are increasingly able to serve as their one stop destination.
In Q1, we added more than three dozen materials and finishes, including galvanized steel stainless steel and custom CNC materials.
Additionally, we launched instant quotes for parts with multiple finishes. We also launched a new quick turn injection molding service for quotes and its fastest two hours and parts in as little as five business days.
For U S buyers, we introduced a new domestic economy shipping option, which offers lower pricing and longer lead times than the standard shipping option, but with higher pricing than our traditional offshore economy auction. We are pleased with the adoption of the domestic economy.
In Q2, we will continue to expand the menu and will offer buyers the ability to select an increasing number of manufacturing technologies leveraging the tremendous breadth of what the hundreds of thousands of suppliers listen on Thomas net dot com can offer.
This depth and breadth is critical since our market is not defined by commodity parts or skus, but instead is made up of thousands of different use cases. This is one of the reasons the custom manufacturing market is so fragmented.
Our marketplace is unique in its ability to meet these needs.
We continue to expand aggressively internationally, we delivered strong growth in Europe and launched in the U K, which is the third largest manufacturing market in the region in the U K. We are seeing early strong demand in such industries as medical electric vehicles autonomous related technologies renewable energy and propel.
The <unk> systems.
Additionally, in early Q1, we made a small tuck in acquisition in Turkey to further expand our alternative call supplier network to serve the European market, we launched geometry, dotcom that T. R. A localized marketplace introducing the instant quoting engine to Turkish customers.
Since launch Turkey's customers for machine building engineering and other industries are ramping up the use of our technology.
In late Q1, Vomitory Asia signed an agreement to provide instant quoting for Alibaba group's.
Groups 16, 88, dotcom BTB wholesale marketplace in China.
Dmitry as AI powered instant quoting engine is the sole provider of real time pricing and lead time for custom parts on 16 88 Dot com.
The industrial section of the 16 88 marketplace had annual traffic of 30 million visitors in 2022.
This should be fully operational shortly and we are excited by the opportunity and the trust given by 16 88, and our instinct quoting technology.
The upcoming launch with 16 88, notwithstanding we remain pleased with the ramp in buyer demand in China as were seeing strong order growth across many verticals, including medical devices biotech material production machine building and sensor technology.
We expect China to contribute to revenue growth in 2023 and stronger in 2024.
The reason inventory that EU zama tree that U K and geometry that Asia, we have leveraged <unk> core technology to provide localized platforms in 13 different languages with networks that suppliers across Europe , and Asia as well as North America.
In Q1, we invested approximately an incremental $1 million to fund expansion into the U K and launch the Turkey localized marketplace.
We believe these investments will pay off with continued strong international growth over the years to come.
In Q1, we invested in enhanced and continue to drive adoption of our new products, including work center and the industrial buying engine platform, increasing our footprint with both buyers and suppliers and enabling us to scale cost effectively.
For our suppliers, we made important progress on work center. The SaaS like operating system that is the digital foundation for manufacturers.
In Q1, we expanded the work center job management tools and capabilities, including support for a custom job workflows job scheduling communication tools and accounting integrations.
For buyers, we took significant steps towards improving the industrial buying engine the industrial buying engine digitizes, the cumbersome and time consuming request for quote process, taking what was once off platform and integrating it into the heart of Thomas net Dot com.
In Q1, we made it easier for buyers to initiate requests and for buyers and suppliers to engage by consolidating all communication onto a single unified UX and technical platform.
While the revenue from industrial buying engine transaction fees and Thomas net Dot com is not yet significant economic trees overall revenue as we more tightly integrate it with their instant quoting engine, we can increase our buyer share of wallet and be their one stop shop.
We continue to modernize the marketing products expand self serve options on the Thomas net dot com platform, making easier for suppliers to start their marketing journey and.
In Q1, we implemented auto renewal for all Thomas net marketing programs.
In 2023, we're working to move to a pay for performance advertising model on Thomas net Dot com.
Most search and listing engine that support advertising user pay per click or other performance based advertising model, which aligns the interest of buyers and suppliers.
As we improve search we expect to see a higher level of buyer engagement improving the opportunity for search monetization. This will help drive growth of our higher margin supplier services as well as boost use of the industrial buying engine.
We are continuing to increase efficiency and reduce expenses across our organization in January we reduced our workforce by 6% to better streamline operations.
We are finding additional savings including to our fixed costs to continue our progress throughout the year to help zama tree become adjusted EBITDA positive in Q4.
The underlying metrics of the marketplace are robust with strong additions of active buyers in record order counts, including from existing accounts.
Our international business had a record quarter in Europe and is building momentum in Asia.
We made good progress with the rollout and adoption of work center and building integrations to enable Thomas and solitary users alike to access the breadth and depth of Thomas net Dot Coms 500000 suppliers.
Value of which we are continuing to unlock.
As a result, we are once again delivering strong sequential growth in marketplace revenue marketplace gross margin and reduced adjusted EBITDA losses.
For 2023 overall, we expect our momentum to continue and to remain in strong growth mode.
With that I will turn the call over to our CFO , Jim Rallo for a closer look at first quarter financial results and our business outlook.
Thanks, Randy and good morning, everyone as Randy mentioned, we delivered strong marketplace growth in Q1, despite macro headwinds Q1 revenue increased 26% year over year to $105 3 million driven by marketplace growth the stronger U S. Dollar negatively impacted revenue by $1 5 million on a year.
<unk> over year basis, Q1 marketplace revenue was $86 7 million and supplier services revenue was $18 6 million.
Marketplace revenue increased 35% year over year, driven by strong growth in the number of active buyers.
Q1 active buyers increased 46% year over year to 44716 with 4052, new active buyers in Q1, the percentage of revenue from existing accounts was 96% underscoring the efficiency and transparency of our business model that leads to increasing accounts sticking.
And spend over time.
Once an account joins our platform, we aim to expand the relationship and increase engagement and spending activities from that account over time the number of accounts with the last 12 months spend of at least 50000 on our platform reached 1109 at the end of Q1 up 40% year over year.
Supplier services revenue declined approximately 600000 or 3% year over year in Q1 as Randy mentioned in his remarks part of our strategic plan for 2023 is to modernize the Thomas advertising platform and expand the self service marketing products on Thomas net Dot com.
We expect these efforts to grow the number of digital marketing customers and to reduce the sales costs associated with acquiring them.
This quarter, we are introducing a new kpis for supplier services. The number of active paying suppliers for Q1 2023 was 7621 on a trailing 12 month basis, an increase of 11% year over year.
Active paying suppliers is the number of suppliers, who have purchased one or more of our supplier services, including digital marketing services data services financial services or supplies. During the last 12 months. We believe this kpis will help investors to better understand how we operate the supply.
Our services segment and track its performance.
Q1, gross profit was $39 4 million, an increase of 20% year over year total gross profit margin was 37, 4% down 200 basis points year over year, primarily driven by a mix shift to marketplace revenue.
Q1 gross margin for marketplace was 28, 8% up 140 basis points year over year, and 170 basis points quarter over quarter.
Q1 gross margin for supplier services was 77, 4% driven by the high gross margin of Thomas marketing and advertising services and growing financial services.
Supplier services gross margin increased 110 basis points quarter over quarter due.
Due to a higher mix of Thomas marketing services revenue.
Moving onto Q1 operating costs Q1, total non-GAAP operating expenses increased 12% year over year to 51.2 million driven by continued investments in the business and public company costs.
Q1 operating expenses included <unk> 8 million of incremental nonrecurring accounting and legal costs associated with Sarbanes Oxley compliance.
Within our operating expenses sales and marketing is our largest variable component in Q1, non-GAAP sales and marketing expenses were $20 6 million, excluding stock based compensation and amortization, an increase of 15% as compared to $17 9 million in Q1 2022.
The increase in non-GAAP sales and marketing expenses on a year over year basis was driven by continued investment to expand our network of buyers and suppliers and the hiring of additional salespeople to support strong growth in our land and expand strategy.
We delivered strong growth in new active buyers in Q1, leveraging increasing brand awareness and efficient marketing spend as Randy mentioned, we invested approximately an incremental $1 million in Q1 to fund expansion in Europe , including the launch of the U K and Turkey marketplaces.
Our adjusted EBITDA loss for Q1 was $11 8 million or 11, 2% of revenue compared with 15, 2% of revenue in Q1 2022.
One quick note on GAAP EPS in Q1 as part of the IPO, we pledge, 1% of the company's capitalization were approximately 403000 shares.
<unk> dot org for charitable contributions to nonprofit organizations as a result, we recorded a non operating charge.
In general and administrative expenses, which is excluded from adjusted EBITDA in Q1, we recorded a charge of <unk> 4 million.
Turning to segment reporting in Q1 revenue from our U S and international operating segments was $93 9 million and $11 4 million respectively.
Segment loss from our U S and international operating segments for Q1 was $12 9 million and $5 4 million respectively.
We continue to invest in our international business, which grew 77% year over year in Q1, and 87% year over year on an FX neutral constant currency basis.
At the end of the first quarter cash and cash equivalents and marketable securities was $296 2 million.
Now moving onto guidance, we expect Q2 2023 revenue in the range of $109 million to $111 million representing year over year growth of 14% to 16%.
We expect marketplace revenue growth to remain healthy in Q2 2023 as a reminder, Q2 2022 is the toughest year over year marketplace revenue comparison with 56% growth in the prior year period.
Given the significantly lower gross margin of supplies, we are not going to proactively offer this service to our partners and we expect supplier services revenue to be down year over year.
This change creates a drag reflected in our Q2 2023 revenue guidance.
We expect marketplace and supplier services gross margins to improve in Q2 quarter over quarter in.
In Q2, we expect adjusted EBITDA loss to be in the range of eight five to $9 5 million a significant <unk>.
19% to 28% improvement quarter over quarter.
Q2, adjusted EBITDA loss will be lower quarter over quarter, driven by sequential growth in marketplace revenue improving marketplace gross margins and further measures to tighten the operating expenses, particularly fixed costs.
In Q2, we expect stock based compensation expense to be approximately $5 million to $6 million, which we will exclude from adjusted EBITDA as Randy mentioned, we expect robust marketplace growth and gross profit growth in 2023.
We reiterate 2023 revenue guidance of $470 million to $480 million, representing 23% to 26% growth year over year.
We expect marketplace revenue growth of approximately 30% in 2023.
We expect to be profitable on an adjusted EBITDA basis in Q4 2023.
We expect significantly improved operating leverage in the second half of 2023, driven by strong buyer in order growth and further improvement in gross margins driving faster gross profit growth, we expect significant leverage over fixed and semi fixed costs, including public company costs.
We expect 2023 adjusted EBITDA loss in the range of 24 million to $26 million given the incremental nonrecurring costs in Q1 and the additional international investments we discussed previously.
With that operator can you. Please open up the call for questions.
Thank you.
As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Please standby, while we compile the Q&A roster.
Yeah.
Our first question comes from the line of Ron Josey of Citibank. Your line is now open.
Great. Thanks for taking my questions I've got two please.
You know Randy I guess coming out of last year, we talked a little bit about supplier behavior and just wondering if you can talk to us about about spy behaviors returning to more normalized trends.
In terms of taking jobs and overall pricing that would be helpful. On a number one and the second key point on gross profit.
Jim you talked about margins expanding in the back half of the year, but we also saw margins expand at <unk>, So talk to us a little bit more about what's driving that overall gross margin, particularly in the marketplace side. Thank you guys.
Yes, and good morning Bryan.
Brian .
Speak with you so just going back to the change from Q4 to Q1, we saw marketplace revenue.
Running shallower, even though we expected and we saw strong SaaS solace track's strength and active buyer growth and strong growth in orders and suppliers continue to react and participate well.
In the marketplace. So I think where we saw we saw strength across all processes.
In many verticals and as we saw with our <unk>.
Record net active buyers in the quarter, we offset.
Eric.
Position continue to strengthen as well.
Just on your question about.
Gross margin is going up we did talk about how.
In Q4, we have been doing.
Patients.
Test Adv.
Price elasticity of customers.
We did that at the end of January .
So you saw a nice rebound in gross margins from Q4 to Q1 of 2008.
170 basis points to 29%.
We've also mentioned in this call we guided to increase gross margins for marketplace and supplier services in Q2 as well.
And then Sean just one for the year, we also talked about gross margin being for the marketplace, 30% plus.
Thank you.
Thank you one moment please for the next question.
Okay.
Okay.
Okay.
Our next question comes from the line of Nick Jones JMP Securities. Your line is now open.
Great. Thanks for taking the questions two if I can I guess first kind of high level, how much of some of these industry.
Trends and metrics were seeing reported impacting the overall business as you know.
Is that a kind of a factor, we're saying are as honest yourself kind of.
To grow through some of these.
Macroeconomic pressures.
Yes look I think with our investments and technology investments in international and.
You are seeing in Q1 that we've been gaining market share by adding a record number of active buyers.
So and we saw strength across all processes.
And across many verticals so.
We as we gain market share and as our investments continue to pay off and we're excited to continue to grow.
Great and then and then maybe just as we think about the back half and the full year guide.
Revenue would have to kind of accelerate that hit those can you kind of speak to what gives you confidence.
And a full year number.
Are you seeing kind of similar behavior in active buyer.
LTV to CAC or cohort curves. It gives you confidence in kind of that performance in this kind of uptick in active buyers you've had.
Yes look again I think in the second half we expect our investments that we've been talking about to continue to bear fruit, including continued strong active buyer growth order growth in international growth and we think those combined will.
Enable us to do.
That guidance that we provided.
Great. Thanks, Randy.
Thank you one moment please.
Okay.
Our next question comes from the line of Brian Drab of William Blair. Your line is now open.
Good morning, Thanks for taking the questions I was wondering if you could talk first a little bit more about the Alibaba 16 88 opportunity.
Just some more detail there would be helpful. I mean, the big question is what's the revenue opportunity there longer term and can you talk about how that is.
Agreement and how the business model is structured and have they ever tried providing custom parts in the past.
Thanks.
Yes, Brian Good morning, and thank you for the question so.
We have not baked Danny just to be clear in our guidance here or anything related to $6 88, as we talked about during our prepared remarks, notwithstanding 16 88, our China marketplace has been growing very strongly so we're very happy about that we expect it to be revenue contributor this year a strong revenue contributor.
We are excited.
We're excited about 15 aviate opportunity.
To be fully operational later this quarter and.
It will actually be even Eric <unk>, using our technology to provide the names and quoting for custom parts and we're the exclusive provider of that and then.
Dmitry I agent will be the fulfillment for that.
I don't know, Brian if they've ever offered before I don't think so.
But.
I believe Andrew they've never offered before but I couldn't tell you 100%, but.
Surely they never offered before.
Bryan and Sean just on the on the agreement there is theres not a revenue share so and it'll in terms of when it gets rolling and will run through our marketplace revenue and API.
Are they just yeah.
I know we've discussed this but I still not perfectly clear on that does that just mean that they are basically directing new leads in the in the revenue and margin.
Opportunity for <unk> is the same as it is in your legacy marketplace or is it is it is it different I guess this is going to be revenue at similar marketplace margin.
Yes, it will be no I mean again, our margin, particularly as we're standing up we've talked about is we're staying in geographies don't necessarily reflect don't necessarily near the margins exactly in our mature markets, but yes. It will in terms of the way it functioning as it will be similar to the way functions a function.
In Europe or in the United States or North America, So very very similar yes, and just a quick follow up I know you said direct leads but again just so everyone on the call I mean, our instant quote technologies embedded within their marketplace. So it's not as if a.
Customers being redirected to a different platform. So it's embedding their technology on their marketplace and a seamless experience. So John <unk> now will be able to offer for <unk> ability to.
Quote their parts.
And if you do that and that is part of that being dumped into what 16 aviation offer so we're pretty excited about.
Yeah, I guess I used the wrong word, but I'm just thinking of it is generating leads for you you're basically stepping into this massive flow of 30 million users annually and when you say theres not revenue share. It means you're not sharing dmitry is not sharing revenue with them is that does that.
Sure.
Yes.
We're thinking 88, so it's.
Yes.
Ali.
<unk> bye.
And actually for people et cetera, theyre not getting a piece of this transaction, Brian yes, they make money on the float Brian So the checkout will be will be through their process and that's how they make their money.
Yeah can you elaborate on that Jim just define what you mean by float in this context I think it I think.
A lot of questions on it would be a good time to clear it up.
Yes, Brian .
When people one of the things that happened in 15 88.
Just different areas people will pay that will be then held by <unk> and then one.
The order a ship and arcade and they will release the funds.
So that's pretty similar on Alibaba on their platform. They are the they are the.
We're holding a finding from the buyer and then released and when the salaries of levers.
Right. So in the interim when they're holding those funds they can invest them or.
Generate some interest on that and make some money off some of this but in terms of the.
The transactional <unk>.
Revenue and margin that that goes to zama tree.
Right.
It's the same as we've got it here.
Yeah, Okay, alright, thank you for that and then just quickly the supplier services down.
Revenue down 3% year over year, it sounds like that you're pulling back some marketing.
Expense there and.
Maybe just.
Just not focusing on selling the services is aggressively going forward is that just an ROI type of decision in and how big a drag on revenue for 'twenty three is just a million or two.
Yes, Brian and yes. So there is a specific service that we offer which is selling supply supplier services the bulk of our supplier services.
His marketing marketing services.
Thanks Scott.
Comment on that.
Dominic we are sole supplier.
Two suppliers, whether it's materials and tools. So that is a segment suppliers that we're pulling back from it.
Got significantly lower gross margins.
And so we are not actively marketing it to the suppliers. So that's why we've talked about in Q2, Vasco youre going to see year over year revenue from suppliers go down because we're not actively marketing that to our suppliers ultimately.
It's a more profitable it can help our margins. So it's a proactive things that we're doing.
Of course, the other marketing services and fire services. We are we are investing in technology as we've talked about in and building our sales and marketing capabilities around us.
Okay I got it thanks a lot.
Thanks, Brian .
Thank you one moment please.
Okay.
Our final question comes from the line of Greg Palm from Craig Hallum. Your line is now open.
Yes. Good morning, Thanks for taking the questions here I wanted to start with active buyers because there was a nice.
Pick up again in terms of net adds for the quarter and I guess my first question is are you seeing a different sort of mix and some of the new net adds this quarter last quarter versus you know maybe historical levels and I guess your comment about going deeper.
Into the top 200 should we assume that you know a big portion of these net adds are just that it's increasing wallet share within a certain company or enterprise or are you actually seeing good night net adds in different or separate enterprises as well.
Yeah. Great question. So we are seeing we've got a big funnel and we're seeing really nice edition of new logo, you will say new new accounts.
The behavior of these accounts in Q4 are the makeup or the demographics are similar to two accounts that we've added in previous quarters. We're just we're getting more efficient with our marketing spend we've got more organic growth and so we're just adding more more active buyers.
Each quarter.
Yes, we are certainly we've got about a five point strategic plan going deeper and wider into the type of accounts. So we are adding more buyers there, but but the funnel of new.
New logos.
Sure.
And Greg readiness say Q1, but the other thing you're seeing broad based strength in active buyer growth, but nonetheless in the U S. But remember Europe is growing at a very fast rate, so, we're saying goodbye or growth over there as well.
And in terms of the assumptions behind the Q2 revenue guide.
Does it assume another sequential increase in net adds or maybe a similar level of what you saw between Q4 and Q1.
Yeah, I mean, we don't guide specifically to that metric that you should expect.
Healthy net adds going forward and Greg as you play that out. This is something we were talking about the last few calls as you play that out through 2023 that drives good strong growth year over year and active buyers.
Understood, Okay I'll leave it there thanks.
Thank you and this concludes today's conference call. Thank you for participating you may now disconnect.
Okay.
[music].
Okay.
Good.