Good morning, and thank you for joining us on Xometry's Q2 2025 Earnings Call. Joining me are Randy Altschuler, our Chief Executive Officer; Sanjeev Singh Sahani, our President; and James Miln, our Chief Financial Officer. During today's call, we will review our financial results for the second quarter of 2025 and discuss our guidance for the third quarter and full year 2025. During 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 may be 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. Information 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-Q for the quarter ended June 30, 2025. We caution you not to place undue reliance on forward-looking statements and undertake 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 on 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-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 in our investor presentation, both of which are available in the Investors section of our website at investors.xometry.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, Shawn. Good morning, and thank you for joining our Q2 2025 earnings call. Q2 was another strong quarter with record revenue, gross margin, and adjusted EBITDA. Q2 revenue increased 23% year-over-year to $163 million as we gained significant share in the large and fragmented custom manufacturing market. Marketplace growth remained robust, increasing 26% year-over-year, driven by our rapidly expanding networks of buyers and suppliers and deepening enterprise engagement. Our global marketplaces continue to respond well to the volatile supply chain environment. Powered by our improving AI pricing and selection algorithms, marketplace gross margin reached a record 35.4% in Q2, up 190 basis points year-over-year, contributing to a record overall company gross margin of 40.1%. Expanding marketplace gross margin underscores the value we're creating with our AI-powered marketplace. Our efficacy and competitive moat continues to increase as we grow our networks of buyers and suppliers and gain more data to continuously train our algorithms. This has driven significant and steady increases in our marketplace gross margins from the 25% level four years ago to 35% plus today. Each quarter of growth and improvements in our technology helps to incrementally power the quarters that follow. In Q2, we delivered strong operating leverage with adjusted EBITDA of $3.9 million, an improvement of $6.6 million year-over-year. Our results, industry-leading growth, and significant market share gains underscore the differentiated and durable advantages of our marketplace model. We're building a superior business model that delivers strong experience for both buyers and suppliers while driving increasing operating scale and expanding adjusted EBITDA margin. We delivered these results even as we continue to invest in our key growth initiatives and drive further use of AI throughout our platforms. Since joining Xometry in January in the new role as President, Sanjiv Singh Sahani has accelerated our efforts to embed technology and AI across the organization to enhance our position as the digital rails in this massively fragmented and traditionally offline custom manufacturing market. We are deploying generative AI at scale to improve experience and drive additional value for both our buyers and suppliers. Our pace of product introductions is increasing, including several new releases in Q2 and early Q3. These include, in Q2, we continued to improve the buyer experience in our marketplace. We enhanced our instant quoting and selection, expanded instant quoting for new additive materials, and added the ability to dynamically view 2D drawings in the quote flow. In Q2, Xometry EU launched our Teamspace solution in Europe, U.K., and Turkey. Teamspace is a cloud-based solution within the Xometry platform that enables customers to collaborate with other users on projects and custom part orders. This global expansion enables Xometry to drive deeper enterprise engagement and enhance viral buyer growth. We are pleased with the initial results. In Q3, Xometry EU launched integration capabilities for enterprise customers to streamline procurement. This feature enables buyers to order custom parts directly from the Xometry EU site while still within the buyer's procurement platform, streamlining the purchasing process, reducing errors, and improving efficiency by automating data transfer between systems. In July, we began testing an improved mobile experience for our suppliers in Work Center, our cloud-based platform for suppliers. The new Work Center mobile app enables suppliers to interact more easily within Xometry's platform, including viewing 3D part design files, sharing images of work in progress, and receiving push notifications. Also in July, we introduced a new AI-powered capability that automates the extraction of information from technical drawings to help drive more accurate quoting and supplier selection. This capability will be further enhanced to accelerate our initiative to instantly quote technical drawings. On Thomasnet, we are pleased with the initial test results of our new search experience using natural language algorithms to improve buyer search results based on intent. We were pleased to see a 10% plus improvement in our buyer engagement levels. Now in Q3, we will begin selling on the new ad serving technology platform for new customers. We expect that the new technology will increase advertising penetration and engagement. There is much more to come in the following months and quarters on the technology front as we focus on further improving buyer and supplier experience and expanding our platforms. Our technology initiatives, combined with our enterprise sales and marketing efforts, are powering our land-and-expand strategy. For example, in Q2, Xometry became a preferred supplier for a major European aerospace company. The customer chose Xometry for our easy-to-use platform and business model, enabling the customer to start transitioning from its legacy procurement system. Embedded in the customer supply chain, Xometry is now being used for quick turn projects and long-term production programs. This is a good example of an enterprise customer, which we believe can generate $10-plus million in annual revenue. Now before I hand it over to James, I want to take a moment to highlight how we're winning, especially with large customers and why we believe Xometry is increasingly becoming a strategic sourcing partner to some of the world's most demanding buyers. First, driving technology innovation to deliver improving marketplace price, speed, and selection. We continue to strengthen our AI-driven marketplace with smarter quoting, dynamic pricing, and integrated workflows to make the platform more valuable to our networks of buyers and suppliers. For buyers, this means faster, more accurate sourcing with greater transparency, increasing agility and speed to market. Second, we're improving supply chain resiliency. Our marketplace helps customers mitigate supply chain volatility and disruptions by offering access to a diverse expanding global manufacturing network of over 4,000 active suppliers. This allows buyers to instantly diversify their supplier base, reducing dependencies on a single source or region and enhancing overall resilience. Our global sourcing efforts and flexible asset-light model are resonating with customers given the rapidly changing global trade environment. Third, delivering a scalable enterprise offering. Our land-and-expand playbook is powered by technology as enterprise accounts increasingly adopt our software solutions, including Teamspace and ERP integrations. As we drive adoption of enterprise technology, we become more embedded in customer workflows, reducing buyer friction and expanding wallet share in these large accounts. Fourth, driving value to our global supplier network. Our marketplace is driving increasing value for suppliers, enabling them to sell their capacity digitally, unlock access to global demand, and increase asset utilization and profitability. Suppliers leverage our cloud-based software platform, Workcenter, to more efficiently manage their operations, and they utilize our fintech products to improve cash flows. We continue to win, and momentum remains strong in Q3. We are raising our 2025 revenue growth outlook given robust demand in our marketplace and strong execution of our teams.

Thanks, Randy, and good morning, everyone. Q2 was another strong quarter for Xometry, delivering strong revenue growth, robust expansion in marketplace gross margin, and significant adjusted EBITDA leverage as our marketplace responds to customers' needs in real time. Xometry is becoming their digital rails in this massively fragmented and largely offline custom manufacturing market. As we scale towards $1 billion of revenue, we expect to deliver improving profitability even as we continue to invest in our growth initiatives. Q2 revenue increased 23% year-over-year to $163 million, driven by strong marketplace growth. Q2 Marketplace revenue was $148 million and supplier services revenue was $14.3 million. Q2 Marketplace revenue increased 26% year-over-year, driven by strong execution and growth with larger accounts as we continue to capture significant market share. Marketplace growth was robust across many verticals, including aerospace and defense, automotive, and robotics. Q2 active buyers increased 22% year-over-year to 74,777 with a net addition of 3,323 active buyers. Q2 marketplace revenue per active buyer increased 4% year-over-year, primarily due to strong enterprise growth in the United States. In Q2 2025, U.S. marketplace revenue increased 25% year-over-year. International revenue growth accelerated to 31% year-over-year growth, and we continue to expand our marketplace capabilities, including the recent launch of Teamspace in Europe. In Q2, the number of accounts with last 12-month spend of at least $50,000 on our platform increased 15% year-over-year to 1,653, an increase of 108 from quarter 1, 2025. We view accounts with at least $50,000 spend at the top of the enterprise funnel. We expect to continue to grow this base of accounts over time. Enterprise investments continue to show returns with strong revenue growth in Q2 for marketplace accounts with last 12-month spend of at least $500,000. Our enterprise strategy focuses on our largest accounts, which we believe each have $10 million plus in potential annual account revenue. Supplier services revenue declined approximately 2% quarter-over-quarter as we have largely stabilized the core advertising business ahead of key product upgrades later in 2025. We are focused on improving engagement and monetization on the platform, which remains a leader in industrial sourcing, supplier selection, and digital marketing solutions. Q2 gross profit was $65.2 million, an increase of 23% year-over-year with a record gross margin of 40.1%. Q2 gross margin for marketplace was a record 35.4%, an increase of 190 basis points year-over-year. Q2 Marketplace gross profit dollars increased 34% year-over-year. We are focused on driving marketplace gross profit dollar growth through the combination of top line growth and gross margin expansion. We continue to adjust our pricing to reflect changing tariffs, and our AI cost algorithms update regularly to reflect changes in our supplier network. Q2 gross margin for supplier services remained strong at 88.7%, driven by our increasing focus on the higher gross margin Thomas advertising and marketing services. Moving on to Q2 operating costs. Q2 total non-GAAP operating expenses increased 10% year-over-year to $61.7 million, well below revenue growth rates. We are applying strong discipline and rigor to our capital and resource allocation across teams while investing in our growth initiatives. In Q2, sales and marketing and G&A decreased 180 and 170 basis points year-over-year, respectively, to 16.4% and 8.9% of revenue. This reflects improving enterprise sales execution and disciplined advertising spend. Marketplace advertising spend was 5.6% of marketplace revenue, which was down 130 basis points year-over-year as we balance growth and profitability. Q2 adjusted EBITDA was $3.9 million compared with a loss of $2.6 million in Q2 of 2024. Q2 adjusted EBITDA improved $6.6 million year-over-year, driven by growth in revenue, gross profit, and operating efficiencies. In Q2, we delivered an incremental adjusted EBITDA margin of 22%, above our target of at least 20%, primarily driven by strong marketplace gross margin expansion. In Q2, our U.S. segment adjusted EBITDA was $6.9 million or 5.1% adjusted EBITDA margin, a $6.6 million improvement year-over-year, driven by expanding gross profit and strong operating expense leverage, particularly in sales and marketing. Our International segment adjusted EBITDA loss was $2.9 million in Q2 2025, roughly flat year-over-year, driven by investments to further drive global scale. At the end of the second quarter, cash and cash equivalents and marketable securities were $226 million, decreasing approximately $5 million from Q1 2025. The decrease in cash was driven by CapEx, primarily software related, of $6.9 million, reflecting our technology investments in the platform and accelerating product rollouts shared earlier by Randy. We are focused on improving working capital efficiency and cash flow conversion given our asset-light model and limited capital spending. We expect CapEx to remain approximately $7 million per quarter for the balance of 2025. In June, we completed our convertible debt refinancing and closing of $250 million of new 0.75% convertible notes due 2030. This transaction enabled us to extend the maturity of most of our existing debt with improved terms, a lower coupon, and reduced potential dilution to the existing capital structure. The transaction fortifies our balance sheet by addressing over $200 million principal amount that had 2027 maturities while providing us with financial flexibility to continue focusing on our growth initiatives and margin expansion. Importantly, this transaction was structured to minimize the potential future dilution for our equity shareholders with an effective 75% conversion premium. Q2 demonstrates the ability of our AI-powered marketplace to deliver strong revenue and gross profit growth and operating leverage as we remain disciplined in our execution. As we scale towards $1 billion of revenue, we expect continued 20% plus incremental adjusted EBITDA leverage on an annual basis. Given our large market opportunity and low penetration rates, we will continue to balance investing in the future with driving operating leverage. Now moving on to guidance. For the third quarter, we expect revenue in the range of $167 million to $169 million or 18% to 19% growth year-over-year. We expect Q3 marketplace growth to be approximately 20% to 22% year-over-year. As Randy mentioned, trends remain strong in Q3 even as we are mindful of the uncertain macro environment. We expect Q3 supplier services revenue to decrease approximately 2% to 4% year-over-year and be approximately flat quarter-over-quarter. We expect Q3 marketplace gross margin to improve year-over-year and continue to expect full year marketplace gross margin to also increase year-over-year. In Q3, we expect adjusted EBITDA of $4 million to $5 million compared to a loss of $0.6 million in Q3 2024. In Q3, we expect stock-based compensation expenses, including related payroll taxes, to be approximately $9 million or approximately 6% of revenue. For the full year 2025, we are raising our marketplace growth outlook from our previous guidance of at least 22% to 23% to 24% growth, driven by our growth initiatives in our large fragmented market. We expect supplier services to be down approximately 5% year-over-year. We are raising our revenue outlook for the full year. We expect overall growth in 2025 of at least 20%, exceeding 2024 growth of 18%. Lastly, for the full year 2025, we expect incremental adjusted EBITDA margin of approximately 21%. I want to close by thanking our dedicated Xometry team members around the world. Their commitment to our buyers and suppliers is instrumental to our continued growth and core to our mission of making the world's manufacturing capacity accessible to all. With that, operator, can you please open up the call for questions.

Randy, one for you and then James, one for you. For Randy, you talked to a number of product initiatives at the company. I wanted to ask where you're seeing the most impact on the business and what your focus areas on the product side are for the second half of the year. And then, James, more financially related, a lot of press around manufacturing reading slowing in July. It sounds like you're still seeing strong trends continue, but perhaps any insights you could provide on what you're seeing so far this quarter and what you're assuming in the guide would be helpful.

Yes. Great to hear from you, Cory. I'll have Sanjiv start with the first question about the product introductions, and then I'll join in as well before we move on to James. Sanjiv, please go ahead.

Thank you, Randy. Thank you for the question. I have now been in the role of President for 7 months. I'm focused on driving the day-to-day running of the company while scaling the value from our current setup. When Randy asked me to join, I believe there was a significant opportunity to embed e-commerce principles to improve the buyer and supplier experience and efficiently rapidly scale our business. In my experience, asset-light marketplaces have to scale when they can efficiently and effectively ingest significant amounts of data about the customers and their orders and then use the insights from the data to find the most suitable supplier at the least cost who can fulfill the order on time. My focus has been to accelerate the technology and AI deployment to capture more and more of this data and scale our AI models to improve pricing, speed, and selection for our buyers and suppliers on the platform. I'm proud to echo what Randy shared earlier that we are already seeing an increased pace of product rollouts and technology deployments in Q2 and Q3 already. This includes things like instant quoting selection and increased additive materials, launching Teamspace and Enterprise integration in Europe, testing a mobile app experience in work center, automating extraction of information from technical drawing and then on Thomasnet, testing of a new search experience using natural language. Overall, AI is central to driving significant improvements in our operating leverage in all functions across all markets.

Thank you, Sanjiv. Corey, in response to your second question, we're updating our full-year marketplace growth outlook to 23% to 24%, an increase from at least 22%. In Q2, we are very pleased with achieving 26% growth, with strong performance in both the U.S. and international markets, and our enterprise segment is showing solid progress. As Randy mentioned, Xometry is well-suited for the rapidly changing global landscape, and our marketplace has thrived amid macro volatility in the past. We remain cautiously aware of the macro environment, as manufacturing indicators suggest some buyers are still wary. However, as we have focused on our growth initiatives in the first half, we believe we can continue to expand our enterprise and buyer network. We have factored all these trends into our guidance.

Just a couple on gross margin to start. The first quarter, you had a little pressure on gross margin as you were making some adjustments to your international manufacturing base. Can you talk about how that went? It seems like that was successfully completed at this point and with the rebound in gross margin, really impressive rebound in gross margin. And so can you just talk about that dynamic? And also, was there anything unusual in the second quarter gross margin? And does the guidance imply that maybe gross margin ticks down a little bit sequentially in the second half? Or can you sustain this really high level in the second half?

Thanks, Brian. It's James. So yes, gross margin was a record in the quarter, 35.4%, up 190 basis points year-over-year into our long-term guidance range of 35% to 40%. As you noted and as we discussed before, in Q1, we proactively made investments in order to ramp up volume in geographies that we felt would be helpful in this environment. And we were able to see a much more normalized progression of our gross margin in the second quarter. So it's up sharply Q-over-Q. And really, the core of this is being AI-driven. It's the main driver of our gross margin expansion, the continual improvements, as Sanjeev was talking about as well on our AI pricing prediction, machine learning with more data and our AI-driven sourcing. We expect Q3 margin to continue to be up year-over-year. It's not always linear quarter-over-quarter. So I think that is an important point as we think about progression from here into Q3 into Q4. But we do expect it to continue to show nice improvements year-over-year for the quarter and for the full year.

Okay. And I'll just ask one more. I don't know if you guys noticed, but the ISM index has been basically below 50 for like 30 months. It's not really showing up in your results. And I'm just wondering, are you having conversations internally where you're just saying if the situation improves in the U.S., Europe, internationally, we really feel like you're leaving a lot on the table, like growth could accelerate. I mean, we're not seeing growth from anyone really in Europe, and you're talking about 31% international growth with strength in Europe. I'm just wondering if you could comment on that, like the potential for even further acceleration in a better environment.

Yes, Brian, it's Randy. I appreciate that question. We've been discussing this for a while now, and as you've pointed out, indices have been down for a couple of years. Despite that, Xometry has been maintaining strong growth because we are gaining market share and more customers are adopting our marketplace as the preferred sourcing method. We continue to forecast strong growth based on these factors. If the macro environment improves, it would certainly benefit us. We are optimistic; as we mentioned when entering Q3, we have started off strong, with more people adopting our global marketplace and utilizing our AI-driven algorithms for matching.

Yes, Brian, it's Shawn. And just if you look at the guidance, I mean again, we've been consistent. We don't expect any improvement in the way we give our guidance. And as you've heard on the call from Randy and Sanjiv, we're really focused on driving product innovation on the platform and really improving the buyer and supplier experience and controlling what we can control.

I wanted to follow up on the question about the product and also ask about the overall macro trends. Randy, you mentioned instant quoting, and I would like to hear your thoughts on its impact on conversion rates as it applies to more products. Additionally, James, in your prepared remarks, you noted some adjustments to pricing this quarter. I would like to understand the pricing environment in relation to macroeconomic factors and tariffs.

Thanks, Ron. I'll jump in here, and then Sanjeev can add anything. So we are very focused on increasing the scope of what we can instantly quote. That includes additional manufacturing processes, materials, and post-processing. And that's reducing friction in our marketplace. It's increasing the speed by which customers not only can order but where there can be delivery and can also lead to better outcomes. So that is definitely a focus. You'll continue to see that as we're investing in our algorithms and that expansion in our offering itself.

Thanks, Randy. Just to add to that, I think our focus remains on improving buyer and customer experience by deploying technology at a very rapid pace while continuing to expand the usage of our AI algorithms across the board. Randy pointed to several examples in his remarks earlier where we've launched products in Q2 and continue to see a gaining pace on that in Q3. So we are very proud of that.

Ron addressed the question regarding pricing and tariffs. As mentioned in our previous call, tariffs are factored into our pricing alongside other changes such as duties and shipping. Our algorithms and network monitor any impacts on costs or pricing, and our marketplace adjusts accordingly. Looking at the broader picture, we are investing in our capabilities to provide customers with the best sourcing options. This pricing adjustment enables customers to make informed choices within our marketplace. Our pricing engine considers changes in international fulfillment, allowing us to collaborate with many enterprise customers to secure the domestic supplies they need while also offering offshore solutions when necessary. Our marketplace is designed for such environments, showcasing our flexibility and resilience. We have a robust domestic supplier network and a global base of over 4,300 suppliers, ensuring we provide the choice and flexibility our customers require to find and secure the sourcing they desire.

I wanted to ask about the step-up in sales and marketing from 1Q to 2Q. Is there anything to call out there? And then how do we think about just marketing efficiency on a go-forward basis? And then $500,000 accounts accelerated in the quarter. Is there anything you guys can call out in terms of just the move upmarket and the success you're seeing in terms of driving dollars in terms of larger accounts? Understood that, that may be a threshold that you guys don't necessarily solve for, but how do we think about that growth and the sustainability of it?

I'll start with the sales and marketing aspect. We noticed an increase as we returned to a more typical marketing spending pattern during the quarter. In Q1, we were focused on balancing growth and profitability in a challenging environment, being cautious about the upcoming tariff changes in April. We experienced significant leverage year-over-year, with overall sales and marketing showing an improvement of 180 points and marketplace advertising improving by 130 basis points year-over-year, now at 5.6%. This reflects a normalization from Q1 to Q2, and the ongoing trend shows that we are achieving greater leverage from our sales and marketing investments.

Yes. Andrew, it's Shawn. I would just like to connect the two questions. As advertising spend normalized from Q1 to Q2, we experienced faster growth than the $500,000 spend KPI, which was very strong in terms of net additions.

Yes. I believe we had 108 accounts with year-over-year growth, making it one of our best quarters. This is the strongest net additions since the fourth quarter of '23. Much of this success is attributed to our focus on driving our land and expand strategy. Additionally, our earnings presentation showcases several case studies that illustrate how we are scaling enterprise accounts. We genuinely believe that with our technology offerings and collaboration through our sales and operations teams, we are effectively providing a comprehensive solution for our customers, reducing their procurement costs and enhancing their sourcing strategies.

Yes, this is Randy. To add to that, as we continue to develop Teamspace, we are making changes and investments in our ERP integrations. This combined approach is enhancing the integration of our workflows with our customers' supply chains. As a result, we are seeing not only an increase in accounts with more than $50,000 in annual spending, but also growth in the number of accounts exceeding $500,000 in annual spend. This progress is driven by technology, and we are committed to further investment in this area.

Congratulations on the results. Randy, you actually led me in perfectly here on that Teamspace and ERP commentary. I guess just as you're seeing enterprises start to spend more and more time in the Xometry platform, can you just talk about maybe some logical adjacencies of kind of maybe what Teamspace Phase 2 is in terms of where you think you can kind of expand the platform and other things you can do in the enterprise?

We've discussed that a significant part of our strategy focuses on increasing our share of wallet with customers in the manufacturing sector. The growing adoption of the Xometry marketplace model is largely due to its wide range of use cases and the various options available, which can make a considerable impact for our customers. We aim to empower enterprise customers to complete all their purchasing needs through the Xometry marketplace. By expanding the range of items we can auto-quote, including different manufacturing technologies, materials, post-processing, and fulfillment options, we will be able to capture more share from enterprise customers. Our fundamental focus remains on speed, price, and selection while minimizing friction through technology. If we maintain this strategy and continue investing in it, we will enhance our share of wallet and become increasingly integrated into the supply chains of our enterprise customers. Look, I think we've had durable growth since the founding of the company and since we've been a public company. So I think it's more that more and more people are adopting the marketplace model. It's been successful in so many other industries. I think as time is progressing and as our awareness grows and as we continue to innovate more, invest in those technology initiatives, reduce the friction, customers are just realizing that this is a great option. And certainly, when there's some noise in the market that helps that certainly helps raise awareness. But this is a global trend. We've always talked about a secular shift to the digital that's inevitable, and it's continuing. And just to be clear, you haven't asked, but there's been no pull forward here or anything like that. This is just an ongoing trend that we've been seeing.

As a follow-up to the last question, are you noticing any trends related to increased domestic sourcing as global macro conditions and supply chain structures evolve? How might your platform be able to leverage or adapt to these shifts towards domestic manufacturing? Additionally, you mentioned enhancing the mobile experience in your prepared remarks. Could you elaborate on the rollout of this improved mobile experience and how it might reduce friction or boost conversions on the platform?

That's great, Eric. I'll address the first question, and then Sanjiv will cover the second. We are actively expanding our domestic supplier base, and as we've mentioned, the majority of our U.S. orders are sourced from within the country. Our supplier base has grown to over 4,300, which provides our customers with more options and flexibility. While reshoring trends could positively impact the market, it's still too early to draw conclusions. I want to emphasize that we're starting Q3 strong, and it's an exciting time for us, but we remain cautious about the broader macroeconomic situation. Currently, we have not observed any significant improvement; our growth stems primarily from capturing market share and enhancing our marketplace.

Thank you. And just to follow on around the question for the mobile app. Testing in the mobile app in July is focused on our partner and supplier experience. So very much linked to the first question you asked. We see that the app enables our suppliers to interact more easily with the Xometry platform where they can see 3D part files, they can share work in progress, they can receive push notifications, give us updates. So we actually see the supplier engagement as the primary experience driver from this first work center mobile app testing that's going on right now. So a lot more to come.

Congrats on the results. Maybe just going back to the Q2 guidance that you put back out in May. The magnitude of upside was maybe most noteworthy. So I'm just kind of curious what you sort of saw specifically in May and June. And just to be clear, like are you seeing similar strength in July? Any difference? But I'd love to just sort of get a little bit of feel for the cadence of the quarter.

Sorry about that. I appreciate your patience. Regarding the guidance we provided, we anticipated a range of 20% to 22%, and we achieved 26%, which we are very pleased with. This exceeded expectations due to stronger marketplace revenue and robust gross profit performance. The enterprise sector also performed well, and we were happy with the net additions we experienced in the quarter. International growth was solid as well. This success can be attributed to our growth initiatives. However, as we look ahead, we remain aware of the uncertainties in the current environment, and we are incorporating that into our future outlook.

Yes, to jump in, we've been clear that Q3 is off to a strong start, and we haven't hidden that fact. However, as Shawn mentioned, we will remain cautious about the macro environment, which has been our approach for some time. That caution will naturally influence our expectations.

The great thing about being a technology marketplace is that it can extend across many different sectors. There's even a slide in our earnings deck that highlights all the various sectors we serve. This versatility has allowed us to maintain consistent growth over time and during different periods. We're seeing strength across nearly all sectors we're involved in, which reflects the increasing adoption of our marketplace model as the most effective operational strategy in this segment of manufacturing.

Our first question today comes from Cory Carpenter with JPMorgan.