Q4 2023 Xometry Inc Earnings Call
Participants
Shawn Milne; VP, IR; Xometry Inc.
Randy Altschuler; CEO; Xometry Inc.
Jim Rallo; CFO; Xometry Inc.
Eric Sheridan; Analyst; Goldman Sachs Group Inc.
Brian Drab; Analyst; William Blair & Company LLC
Nick Jones; Analyst; Citizens JMP Securities, LLC
Cory Carpenter; Analyst; JPMorgan Chase & Co.
Matt Hedberg; Analyst; RBC Capital Markets Corp.
Greg Palm; Analyst; Craig-Hallum Capital Group LLC
Presentation
Operator
Hello, and thank you for standing by, and welcome to Xometry Q4 and full year 2023 earnings conference call. At this time, all participants are in listen only mode after the speakers' presentation, there will be a question and answer session to ask a question. During this session, you will need to press star one one on your telephone. You within your automated message. A device in your hand is raised to withdraw your question, please press star one. Again. I would now like to hand the conference over to your speaker, Shawn Milne, you may begin.
Shawn Milne
Good morning, and thank you for joining us on Xometry's Q4 and full year 2023 earnings call. Joining me are Randy Altschuler, our Chief Executive Officer, and Jim Rallo, our Chief Financial Officer. During today's call, we will review our financial results for the fourth quarter and full year 2023 and discuss our guidance for the first quarter and full year 2024.
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, may These statements are subject to risks and uncertainties which could cause them to differ materially from actual results or information concerning those risks is available in our earnings press release distributed before the market opened today and in our filings with the US Securities and Exchange Commission.
Including our Form 10 K for the year ended December 31st, 2023 that will be filed later today. We caution you not to 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 would 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 our investor presentation, both of which are available on the Investors section of our website at investors dot 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.
Randy Altschuler
Thanks, Shawn. Good morning, everyone, and thank you for joining us for our Q4 and full year 2023 earnings call. In Q4, we had the highest revenue in gross profit in geometries history, beating our previous highs from Q. three of 2023, we grew revenue 31% year over year to $128 million, driven by accelerating 42% year over year growth in Marketplace revenue.
Q4 marketplace gross profit increased 68% year over year, driven by a high-powered marketplace. Q4 marketplace gross margin improved 500 basis points year over year. Overall in 2023, we delivered 30% marketplace growth and stronger active buyer and order growth. Despite an ongoing contraction in U.S. manufacturing, we are gaining significant market share on top of strong marketplace revenue and gross profit growth. We improved our operating leverage, reducing our adjusted EBITDA loss in Q4 by 32% from Q. three to $2.9 million as we continued to balance growth and profitability goals.
On a year-over-year basis, Q4 adjusted EBITDA improved by $12.8 million, driven by significant leverage in our core U.S. marketplace. Partly offset by investments internationally. Over the past few years, we have rapidly grown our networks and expanded our marketplace globally, further strengthening our competitive moat. At the same time we made significant investments in product development and technology infrastructure and selected acquisitions. We now offer tools to digitize work for both buyers and suppliers as well as provide software and information for customers. To improve decision-making and increase efficiency.
In 2023, we significantly expanded our networks of buyers and suppliers. We added over 14,000 net new active buyers in 2023 an 18% increase over the 2022 period, even as we spent 6% less on advertising. Active suppliers increased 36% year over year to 3,429. There is strong demand to join our rapidly growing platform. Our increased focus on top customers and investment in our sales team drove progress in our enterprise strategy in Q4 accounts with last 12 months spend of at least $50,000 grew 30% year over year to 1,331.
We added an all-time high 108 quarterly net additions in Q4. In 2023, we significantly expanded our marketplace menu, including new processes, materials, finishes and certifications, enabling us to increasingly serve as our customers one-stop destination, we saw strong growth in production work, including our revamped quick-turn injection molding offering. We expanded the marketplace to include instant quoting of insureds, multi-part assemblies and expanded sheet cutting processes.
We made significant progress across product development and technology, including new products and services such as teen space, an important foundational work on the Thomas advertising platform after a successful pilot with several large customers in Q3 and Q4, we integrated teen space into the voluntary platform for all of our buyers to use Teams base moves the dominant marketplace from a focus on individual buyers and parts to procurement teams, managing assemblies and products.
The early feedback remains positive with rapid adoption, including over 1,500 teams created since launch, we continue to expand aggressively internationally. In Q4, we launched SolidWorks CADx software plug-ins for customers in the EUUK. in Turkey. We ended 2023 with accelerating growth. However, January was much weaker than we had anticipated, particularly as the number of large orders declined significantly.
While revenue trends improved from January to February, we expect Q1 year-over-year marketplace growth will be slower than that in Q4 since we are still so early in the year and we want to be prudent, we are providing a full year outlook that assumes a similar trend of Q1 for the remainder of the year. This equates to at least 20% growth in marketplace and adjusted EBITDA profitability beginning in Q3 and onwards. Since underlying marketplace metrics are healthy. We're going to continue to execute on our roadmap.
We will, of course, tightly control operating expenses as well as make strategic investments in technology and growth to help us achieve our long-term growth and operating margin goals in 2024. These include first expanding our network of active buyers and suppliers, second, driving deeper enterprise engagements. Third, expanding the marketplace menu, four growing internationally and five enhancing supplier services solutions. We expect to focus on these growth initiatives and on further operating efficiency to drive profitability and improve margins over time in 2024. We expect our active buyer growth remain strong in Q4.
Active buyers grew 36% year over year, even as we balanced advertising investments against profitability goals in Q one, we expect there to be higher quarter-over-quarter net buyer. We continue to invest in our enterprise sales efforts in 2024. Over the past several months, we expanded our sales force to service and grow with our enterprise customers. We're making progress with Fortune 500 companies as they look for a technology partner to help manage dispersed fragmented and complex supply chain.
We will continue to improve marketplace functionality and expanded marketplace menu, including our new partnership with Google, vertical AI. Xometry and Google are deeply engaged working together to accelerate deployment of new auto coding models within families, a high-powered instant quoting engine. In 2024, we will push deeper into our existing international markets versus entering new geographies there is commentary you, Dmitry, that UK. and Zomig you that Asia, we have leveraged geometries core technology to provide localized marketplaces in 14 different languages with networks and suppliers across Europe and Asia as well as North America.
Finally, we are enhancing supplier services, including modernizing the Thomas advertising platform. We are focused on making it easier for suppliers to start their advertising journey and on increasing adoption of Thomas net for our suppliers, we continue to enhance work center, the digital operating system for manufacturers. We are focusing on improving the overall experience for suppliers, reducing the effort required to accomplish their daily tasks.
It's momentary. It's a technology company, disrupting a massive addressable market with millions of as we continue to expand the applications of our AI and increase the breadth of what we can offer, we are serving more and more buyers capitalizing on these trends. We expect robust growth in 2024 and for many years thereafter, shift to the digital, which has happened in so many other industries is inevitable in custom manufacturing. We continue to expand our competitive moat by improving upon our proprietary pricing and matching algorithms, growing our data lake, enlarging our networks of buyers and suppliers and increasing our global footprint.
Before handing the call over to Jim, I want to thank him and wish him well, again, successfully executed our initial public offering and help drive growth and scale in our business, including expanding internationally. Today, we announced that James Miln will be our new Chief Financial Officer effective March first. James was previously at Yale, where he was Senior Vice President of Finance and Investor Relations. James has significant experience across marketplaces, search and advertising and will help us capitalize on our leadership position in digitizing manufacturing. He brings extensive operational excellence is arbitrary and will help us achieve our long-term operating margin targets.
With that, I'll now turn the call over to Jim Rallo.
Jim Rallo
Thanks, Randy, and good morning, everyone. I'd like to start out by thanking the entire Xometry team for a phenomenal four year run. It has been a privilege to work with such a dedicated group, building a leading AI power marketplace, connecting buyers and suppliers in the manufacturing industry. As I leave the commentary I know it is in good hands as well as set up for continued growth as inventory continues to execute on digitizing the manufacturing sector. As Randy mentioned, Q4 was a record revenue and gross profit quarter, presumably driving significant improvement in adjusted EBITDA on a year-over-year basis.
Before I review our Q4 and full year results, one quick note on historical financials. Q4 2022 and full year 2022 results include certain immaterial corrections. We have included tables for immaterial corrections to previously issued financial statements in our Q4 2023 earnings release and earnings presentation, there is no impact to cash from these immaterial corrections.
Q4 revenue increased 31% year over year to $128 million driven by strong marketplace growth. Q4 marketplace revenue was $112 million and supplier services revenue was $16 million, reflecting the discontinuation of the sale of tools and materials. Q4 revenue adjusted for the exit of the tools and materials business increased 34% year over year. Q4 marketplace revenue increased 42% year over year, driven by strong growth in the number of active buyers. Q4 marketplace revenue per active buyer increased 4% year over year. Q4 active buyers increased 36% year over year to 55,458 with a net addition of 2,991 active buyers.
We significantly reduced marketing spend in the US and Europe in late Q4 as we balanced strong growth against profitability targets. The number of accounts with last 12 months spend of at least 50,000 on our platform increased 30% year over year to 1,331 in Q4. The number of net new accounts with LTM spend of at least 50,000 accelerated to 108 additions versus 64 in Q3.
Supplier services revenue declined 15% year over year in Q4, we discontinued the sales of tools and materials in the U.S. in Q2, which negatively impacted supplier services revenue by approximately $2 million year over year in Q4, the number of active paying suppliers in Q4 2023 was 7,271 on a trailing 12-month basis, a decrease of 6% year over year. Excluding the impact of the exit of the tools and materials business, active paying suppliers is roughly flat year over year. Active paying suppliers is the number of suppliers who have purchased one or more of our supplier services, including digital marketing or financial services.
During the last 12 months, Q4 gross profit was $49.1 million, an increase of 39% year over year with gross margin of 38.3%. Q4 gross margin for marketplace was 31.3%, up 500 basis points year over year. Q4 marketplace gross profit dollars increased 68% year over year. We are focused on driving marketplace gross profit dollar growth. Q4 gross margin for supplier services was 87.3%, driven by the high gross margin of Thomas marketing and advertising services and growing financial services supplier services gross margin increased 1,130 basis points year over year due to the discontinuation of the sales of tools and materials, which carried a significantly lower gross margin.
Moving onto Q4 operating costs, Q4 total non-GAAP operating expenses increased 2% year over year to $52 million. Within our operating expenses, sales and marketing is our largest component in Q4. Non-GAAP sales and marketing expenses increased 2% to $22.9 million as compared to $22.6 million in Q4 22 the increase in non-GAAP sales and marketing expenses on a year-over-year basis was driven by the hiring of additional salespeople to support growth in our land-and-expand strategy.
As I mentioned previously, Q4 advertising spend decreased 19% year over year as we balanced growth and profitability goals. Q4 adjusted EBITDA loss was $2.9 million or 2.2% of revenue compared with 15.9% of revenue in Q4 2022. Q4 adjusted EBITDA loss declined $12.8 million year over year, reflecting strong growth in revenue and gross profit as well as cost savings and operating efficiency initiatives and improving profitability in our Thomas advertising and marketing services business.
Turning to segment reporting. In Q4, revenue from our US and international operating segments was $111 million and $17.6 million, respectively. Segment loss from our US and international operating segments for Q4 was $5.9 million and $4.6 million, respectively, at the end of the fourth quarter. And cash and cash equivalents and marketable securities were $268.8 million.
Now moving on to guidance. We expect Q1 2024 revenue in the range of 118 to $120 million, representing year-over-year growth of 12% to 14% and 14% to 16%. Excluding the discontinuation of the sale of tools and materials, we expect Q1 marketplace growth to be in the range of 18% to 20% year over year. As Randy mentioned, Q1 started off slower as marketplace revenue growth was softer in January, driven by a lower number of large orders.
We expect supplier services to be down approximately 15% year over year, primarily due to the exit of tools and materials business in May of '23. In Q1, we expect adjusted EBITDA loss to be in the range of $7 million to $9 million compared to a loss of $11.8 million in Q1 2023, driven by further marketplace operating leverage and improving profitability in supplier services on a year-over-year basis, partially offset by investments in international and enterprise.
In Q1, we expect stock-based compensation expense to be approximately five to $6 million, which we will exclude from adjusted EBITDA for 2024. We expect marketplace growth of at least 20% year over year and expect supplier services to be down approximately 10% year over year, driven by the discontinuation of the sales of tools and materials in the wind-down of non-core services.
As Randy mentioned, our marketplace outlook assumes the Q1 trend persist throughout the year, we expect to be adjusted EBITDA profitable in Q2 three 2024. For fiscal year 2024, we expect improved operating leverage, partly offset by international and enterprise growth investments.
With that, operator, can you please open up the call for questions?
Question and Answer Session
Operator
Thank you. Ladies and gentlemen, as a reminder, to ask a question, please press star one one on your telephone and wait to hear your name announced withdraw your question, please press star one one. Again. Please stand by while we compile the Q&A roster. Yes, our first question comes from the line of Ron Josey with Citi. Your line is open.
Hey, guys.
This is Jake on for Ron. Thanks for taking the question, and thank you, Jim, for your partnership. Best of luck in your future endeavors.
On that bridge question, first question on space. So now that now that that's fully integrated, could you talk to us more about the strength in adoption, how how is that contributing to the growth in 4Q and your traction with larger enterprises and winning those larger enterprises?
And then and then just second on the on the January being slightly weaker than expected. Could you share more about about what you're seeing and what you've seen, what is driving that decline in larger orders? I know you mentioned a softer macro, but any color there would be super helpful.
Randy Altschuler
Thanks. Yes, Jason, it's Randy. So first on on teen space, as we indicated, we have over 1,500 teams that have been added since our launch. That's up from 300 10s in Q3. We rolled out in Q4. So we're really happy about the growth that we're seeing viral new user growth within teams and organizations. We're seeing good engagement engagement on our platform and teams base overall plays an important role in our engagement on the enterprise level. So we're selling more and more deeper into enterprises.
Team faces is a great approach for them in terms of in terms of Q4 and kind of what we saw, we really to do we talked about how January and we had those drop in ad in larger orders in January versus particularly from from Q4. And it's really it's coming partly from bigger companies. I think people were holding that budget in the beginning of the year. We have seen improvement in February, but that we saw in January.
Thank you.
Operator
Please standby for our next question. Our next question comes from the line of Eric Sheridan with Goldman Sachs. Your line is open.
Eric Sheridan
Thanks so much for taking the question. Maybe a two parter on the active buyer trends you're seeing at first, would love to get a little bit more color on how the cohorts of active buyers look today compared to maybe 12, 18, 24 months ago and how should we be thinking about the funnel for growth in active buyers as informing and some of the confidence around the longer-term growth '24 and beyond?
Randy Altschuler
So first, you know, if you look at the investor deck that we provided on slide 9, we actually updated our cohort analysis. And so to your question, Eric, about how new cohorts of active buyers and breeds been behaving. 2023 was actually we had a record amount of revenue from our new cohorts. So over $50 million so that was a nice step up from $42.6 million that we saw in year one of our 22 cohorts.
So far as every year, our cohorts are new cohorts are contributing more and more revenue in year one. And it also just as an aside on and you can see that the 22 cohorts had a nice jump up in the 2nd year of being on the platform. We expect there to continue to be robust growth in our new active buyers, and we believe that this market has a huge number of buyers who are willing to buyers in the marketplace. So as we think about our continued growth over the years, Eric, that we're confident that that's one of the levers that we can pull on, and we're continuing to see robust adoption there.
Shawn Milne
It's Shawn. Just to kind of piggyback on that. We talked a little bit about we did cut advertising spend in Q4 by 19%. And so you can see that reflected in the net adds. We also talked about this morning that we expect the net adds to improve in Q1 quarter over quarter as we resumed a more normal marketing investments?
Randy Altschuler
Yes, I think from an underlying metrics we've talked about before, we don't see any change in the underlying metrics, particularly as a result as it relates to adding new active buyers.
Eric Sheridan
Great. Thanks for the color. I'll also add, thanks to Jim and best of luck going forward.
Jim Rallo
Thank you.
Operator
Please standby for our next question. Our next question comes from the line of Brian Drab with William Blair. Your line is open the morning.
Brian Drab
Thanks for taking my questions. I just wanted to talk a little bit more and trying to understand a little bit better what you're seeing, what you saw in December toward the end of the year and then into January and February and over the last four years, I was just looking at the model. Indirect revenue has increased 14% from Q4 to Q1 and now we're looking at a pretty significant step down. So just any color you can give us what you're seeing in January and February and what you mean by large orders and do you expect those larger orders to pickup up at some point?
Randy Altschuler
Yes, again, Brian, I think we were taken aback by the drop in January, which we hadn't expected that and so I don't want to give a specific dollar amount, but the large orders, you know, are important to us and we saw a pretty strong drop in January. We had said that that that ticked up in February, but we're also trying to be prudent for the year. I mean, we had a weaker than expected January. We're still less than two months in the full year. But at this point, we just want to be prudent as we think about the guide for Q1 and Dion Weisler.
Shawn Milne
Just follow up on that, Shawn, so again, for the full year, the marketplace growth of at least 20% is that we're assuming that the run rate does not improve. So we're taking a prudent outlook for here. We've anchored that to the current trends of the business.
Brian Drab
And just to be clear, you saw a little bit of a pickup in February relative to January, but you're saying you're not incorporating that pickup. We're not assuming that the pickup continues through the year or.
Randy Altschuler
No. I think we just want to be prudent. Yes. I mean, again, January was unexpected for us, things that were picked up in February, but we just were less than two months of the year. We want to be prudent and we're anchoring ourselves to at least 20%. But at this point that we're going to we're going to keep it.
Brian Drab
And just to dig a little deeper on the large quarter, is this may be harder for you to get there the handle on in terms of forecasting because you're building up these It positions with customers and gaining these large orders and getting integrated into their operations, but it's kind of new territory.
Randy Altschuler
And it's not clear how now how should the Fed monetary policy now was really Brian, and people held back budgets in January. It's not related to it's not uncommon. I mean, we look at our historical trends and you know, as we look at Q4 and we will and where we're going last year, those were were stronger for us, but in January, people held back again, it was abnormal for the trend. I mean, as we continue to enlarge our our enterprise efforts that will enhance this more, but this is not about that. This is just about people rolling back in January. You know, it's and if that happens in one month after the quarter, Sabra, we get a new moment all that.
Shawn Milne
You know, all the remaining of the marketplace metrics remain healthy. You know we resumed our marketing efforts. The top of the funnel is healthy. We expect active buyers to be up quarter over quarter. So the marketplace remains healthy. We saw larger customers pause some of their spend. And so, you know, if that frees up that would change, but we're expecting right now, we've run rate at that current trend through the full the full year, we're just being prudent.
Brian Drab
Yes. I think a lot of people are seeing customers such as in the end markets that you participate on spending more slowly than expected to start the year. So that's not a huge surprise. Can I just ask that you push out the profitability target is so that's a combination of expectation for maybe lower revenue combined with an increased marketing? Or can you just articulate that one more time for us, it's really related to the revenue. We still plan to continue to improve our margins. We're going to still be where we pay on spend. I mean we're going to make investments. But Brian, if it's driven by the revenue, yes, you have viruses based on rate.
Shawn Milne
Yes, based on Randy's comment there, you know, we've anchored to at least 20% marketplace growth. We also talked about expanding marketplace gross margin in 24. So you're going to see very healthy marketplace gross profit dollar growth. Yes, our gross profit will grow faster than our revenue.
Brian Drab
Got it. Okay. All right. Thank you very much.
Operator
Thank you. Please standby for our next question. Our next question comes from the line of Nick Jones with Citizens JMP. Your line is open for questions.
Nick Jones
I guess just on kind of the inputs to marketplace revenue of active buyers and Marketplace revenue per active buyer, I think the expectation was active buyers and market, but you are going to go through kind of converge to the same growth rate, but it sounds like there's some volatility now in Marketplace revenue per active customer, it kind of implied in the 1Q guide, like sounds like that's probably to step down. Is that the right way to think about it? And will that be kind of volatile throughout the year, do you expect it to kind of stabilize the marketplace revenue per active buyer like post 1Q?
Randy Altschuler
Yes. So good morning and great question. Yes. So we because of these larger orders you are seeing the revenue per buyer is going to naturally going to be we're anticipating will be lower in Q1. And so we still think we'll have robust growth in those active buyers. But because we had that funky that tough January, we've had we've just sort of being prudent and push that, that that number out through the rest of the year. So still expect active, robust growth in active buyers. But at this point, we're just being smart and January, we're baking that into the full year number in terms of what we're going to see on a revenue per buyer base.
Nick Jones
Got it. And then on I just kind of following up on the gross profit margins in the marketplace business. I think prior by second half of 24, the target was kind of 35% to 40% of that target, still good. Maybe kind of any revenue expectations?
Randy Altschuler
Yes, we don't we don't see any change in our in our outlook in terms of margins or the growth of our marketplace margins. You know, as far as margins are strong, and again, the only thing that sort of change here is that in January, we saw a drop in the large orders that impacted our revenue per buyer and were less than two months of the year, we got to be prudent here, ranked ourselves to be 20%. But at that point, that's that's what we're thinking right now, just to be prudent.
Nick Jones
Great. Thanks for taking the questions.
Operator
Thank you. Please standby for our next question. Our next question comes from the line of Cory Carpenter with JPMorgan. Your line is open.
Cory Carpenter
Hey, good morning and two just wanted to ask for for February, is it is that back to kind of levels where it was in 4Q?
Randy Altschuler
We're still kind of softer, maybe somewhere in the middle.
Cory Carpenter
And then and then secondly, could you give us an update on the Google Cloud partnership and just how you expect that to roll out and how quickly you can get from those instant quoting capabilities out in 2024? Thank you.
Randy Altschuler
Yes. So as we've said, we have a more specific. We said February stronger than January. So I will leave it at that. And then in terms of Google on that, that there's a lot of hard work going on there. We've got some exciting things we're doing with them. I think when we announced the partnership, we said it would be a number of months before we'll see those models where we're still on target for that. So I don't want to throw an exact date yet, but certainly the expectation of releasing those new instant quoting of additional frequencies and equally important, enabling us to deploy even more even faster. That's still on target, but we haven't nailed them to date yet.
Cory Carpenter
Okay. And just a quick follow-up on you mentioned in supplier services, I'm winding down, I think some other stuff potentially besides tools materials. Is that is that correct? And if so, just curious what that.
Randy Altschuler
It is minor. It's just it's not it's not significant at all. And just some ancillary services that Tom has offered that aren't profitable at Amcor, but it's not significant. The drop the forecasted drop in Spicers this year is really driven just by the discontinuation of our historic supplies assets.
Cory Carpenter
Great. Thank you.
Operator
Thank you. Please standby for our next question. Our next question comes from the line of Matt Hedberg with RBC. Your line is open.
Matt Hedberg
Okay, great. Thanks for taking my question as it, Randy, just kind of philosophically speaking, are there things that can be done and maybe it's just a scale factor, though, other things could be done to reduce some of the volatility in Marketplace revenue. And maybe as a follow-up, what are some of the assumptions around teen space that you guys are baking into 2024 stations?
Randy Altschuler
Yes. So look, in terms of resin volatility, I think you're right as we gain scale and as our efforts to continue to embed ourselves on an enterprise basis that that will provide some will provide some some shelter against that volatility. So I think it just will continue to grow.
And again, as we embed ourselves further and further into the deeper into the supply chain that should help us a lot on in terms of team statement impact, I think we think about it as part of the broader enterprise effort. Again, we expect this year to have robust growth in active buyers, new and active buyers. And we are pushing hard in enterprise. We've been making those investments, but it is part of the broader the prior effort, both from a technology and a sales perspective.
Matt Hedberg
Got it. Thanks. And then for Jim, you're pushing out some of the EBITDA targets a little bit here on some of the revenue weakness. I'm wondering, though, on could you help us think about what that means for free cash flow? And then I know it's lagging EBITDA, but any sense for what timeline for getting to a free cash flow breakeven?
Jim Rallo
Yes. So I think look, the free cash flow is obviously going to come after we get to the adjusted EBITDA positive. So I think that's going to put that out a little further. We never really gave a date on that to begin with. So I would expect that to follow shortly after were adjusted EBITDA positive, but that's going to be a quarter or two probably after that.
Matt Hedberg
Got it. Thanks a lot.
Operator
Thank you. Please standby for our next question. Our next question comes from the line of Greg Palm with Craig-Hallum. Your line is open.
Greg Palm
Yes, morning. Thanks for taking the questions. I just wanted to go back to the implied outlook for Q1 in terms of active buyers versus revenue per buyer, just the implied lower revenue per buyer that you've talked about? I just want to make sure we're clear is that solely due to a lower number of larger orders and not a broader moderation in pricing overall.
And then for the full year guide, does that take into account sort of a flat or stable revenue per buyer that is implied in Q1? Or does it assume some improvement in that metric throughout the year?
Randy Altschuler
So it is clear. We are not at this point with our guidance. We are not baking in an improvement and again, we're less than two months through the year. We're trying to be prudent here. We are being prudent here and so we just wanted to set that expectation. So it doesn't bake in an improvement in that.
We also have said February better than January, but January was certainly not where we wanted it to be, particularly with those larger orders and then impact, I would tell you it is not a broader trade down and we're not seeing a deflationary prices, et cetera. It really is about the larger orders, but we've been growing our number of accounts. We had a record number of additions of accounts, more than $50,000 spend.
In Q4, we added I think, 103 accounts, which is 108, which is a record for us. So those accounts are becoming a bigger percentage of our of our revenue and those are those are significant. So we're excited about that. And long term, that's going to help fuel growth and profitability. But in January, people held back on their on their budget center.
Greg Palm
Yes. Okay. And then if I could just compare the Q1 outlook to your Q3 23 numbers. I mean, you're guiding revenue basically flat or same levels as Q3 23, but EBITDA loss almost almost twice as worse. And so when you think about sort of that bridge, is the majority or most of that or maybe entirely due to higher OpEx? And within that, is that a lot of it more on the advertising side or maybe you can help tie that out?
Shawn Milne
And if you go back to Q3 and you look to where we are in Q1 and there's a couple it really is on the operating expense line. One, we've made investments in our sales team. We talked about on the call. We continue to add to that team to fuel our enterprise efforts. And then secondly, we continue to invest internationally. We saw very strong growth towards the end of the year internationally want to continue to fuel that. And that should be really strong growth for us next couple of years.
And then the third thing, Greg, is just like all public companies, we see a bit of a step up from late Q4 to Q1 in terms of people costs and payroll taxes and benefits and things like that, which is which is somewhat immaterial given the size of the business right now.
Greg Palm
I understand. Okay, I will leave it there.
Randy Altschuler
Thanks.
Operator
Thank you. Please standby for our next question. Our next question comes from the line of Kunal Madhukar with UBS. Your line is open.
Thanks a lot. This is Jason on for Kunal at UBS. I have a couple of questions. So the personal one in terms of your 2024 marketplace guidance, could you please unpack your at least 20% growth outlook for Marketplace revenue and help us understand why you guys are assuming in terms of customer growth and pricing. Also, could you comment on how much of the 2024 revenue guidance is from and new verticals you guys recently added leveraging?
Shawn Milne
As Randy talked about, we expect our active buyer growth from being picked up in 2024. We expect the active buyer, the net add number to improve from Q4 and in Q1 as we resumed our marketing investments. So you should expect, you know, good strong growth in active buyers and then as we talked about after a weak January, which does impact your revenue per buyer, and that's what we're baking in for the rest of the years. Is that kind of a lower slower rate there. So I think that's those are sort of the building blocks for that 20% anchor that we talked about. And what was your follow-up question?
I just wonder how much of the 2024 revenue is from the new verticals leveraging content?
Shawn Milne
Yes. Look, I mean, we have a lot of initiatives in place to expand the marketplace menu, as you talked about, you know, continuing trying to add new categories from Thomas, we of course, have the new partnership with Google on, you know, as Randy mentioned, we're deep in work with Google now, and we expect that to expand and to accelerate the deployment of new categories later in the year. Those are efforts to drive revenue per buyer, but the as we stand here today. You know, our forecast for the year is based on the yes, the trends we saw through through January and early January.
Got it up for the second question. So regarding your comment on softer January orders, was curious if you could help us help us understand which specific sub-verticals that drove the decline in large owners and it really wasn't in a specific vertical or geography was more widespread. It was Randy talked about larger customers. We typically place larger orders. There was more of a pause and we think that they're they've held back on their budgets, but we felt it was prudent today to stick to nonpay, get an improvement. And that's where we're at.
Thank you.
Operator
Thank you. I'm showing no further questions in the queue. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.
