BUFFALO, N.Y., April 23, 2025 (GLOBE NEWSWIRE) -- ACV (NYSE: ACVA), a leading digital automotive marketplace and data services partner for dealers and commercial clients, announced today that the Company will report first quarter 2025 financial results after market close and host a conference call at 5:00 p.m. ET on Wednesday, May 7, 2025. Investors and analysts interested in participating in the call are invited to dial 877-704-4453 (international callers please dial 1-201-389-0920) approximately 10 minute ...

Core Viewpoint - ACV is transferring its common stock listing from Nasdaq to the New York Stock Exchange (NYSE), which is expected to enhance its market visibility and strengthen its position as a public company [1][3]. Company Transition - ACV's common stock will begin trading on the NYSE on March 24, 2025, under the same ticker symbol "ACVA" [2]. - The stock will continue to trade on Nasdaq until the market closes on March 21, 2025 [2]. Executive Statements - The CFO of ACV, Bill Zerella, expressed excitement about the transfer, highlighting that the NYSE's infrastructure and global visibility will help expand the company's reach to stockholders [3]. - Chris Taylor, Chief Development Officer of NYSE, welcomed ACV to the exchange, emphasizing the benefits of visibility and liquidity that the NYSE offers [3]. Company Overview - ACV aims to transform the automotive industry by providing a trusted digital marketplace and data solutions for sourcing, selling, and managing used vehicles [4]. - The company's offerings include ACV Auctions, ACV Transportation, ACV Capital, ACV MAX, True360, and ClearCar [4].

Financial Data and Key Metrics Changes - Q4 revenue reached $160 million, exceeding guidance and representing a 35% year-over-year growth [27] - Full year revenue growth was 32%, with adjusted EBITDA profitability achieved for the first time [6][9] - Adjusted EBITDA for Q4 was $6 million, surpassing guidance, with a margin improvement of 900 basis points year-over-year [28] - Non-GAAP net income also exceeded guidance, with a margin increase of approximately 400 basis points year-over-year [28] Business Line Data and Key Metrics Changes - Auction and assurance revenue accounted for 58% of total revenue, growing 40% year-over-year, driven by 27% unit growth and a 10% increase in ARPU [29] - Marketplace services revenue made up 37% of total revenue, growing 31% year-over-year, with strong performance from ACV Transport and record revenue from ACV Capital [29] - ACV Transport achieved over 30% revenue growth with 410,000 deliveries in 2024, while ACV Capital saw a 26% revenue growth [15][17] Market Data and Key Metrics Changes - New vehicle sales increased by 2% year-over-year in 2024, with a 7% growth in Q4, while the used-vehicle market remained flat [11][12] - Dealer wholesale volumes were flat in 2024, with expectations for a similar trend in 2025 [14] - Used-vehicle inventory was approximately 25% below normal levels, impacting retail volume recovery [13] Company Strategy and Development Direction - The company focuses on three pillars for long-term shareholder value: growth, innovation, and scale [10] - Plans to continue investing in product development and expanding the dealer-partner network, with over half of U.S. dealers transacting on the marketplace [7][8] - Emphasis on leveraging AI technology to enhance pricing intelligence and improve operational efficiencies [20][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong top-line growth despite a muted outlook for the dealer-wholesale market [8] - The company anticipates flat dealer wholesale volumes for 2025, while remaining optimistic about pockets of improvement in the automotive market [14] - Management highlighted the importance of maintaining a balance between investment in growth and achieving profitability [55][56] Other Important Information - The company ended Q4 with $270 million in cash and cash equivalents, and $123 million in debt, reflecting a strong capital structure [34] - Guidance for Q1 2025 expects revenue between $180 million to $185 million, with full-year revenue projected between $765 million to $785 million, indicating a growth of 20% to 23% year-over-year [35] Q&A Session Summary Question: Market share gains and underlying assumptions - Management assumes continued market share gains at a consistent rate, with a flat wholesale market outlook for 2025 [46][48] Question: Balancing EBITDA forecast and investments - Management is focused on maintaining a balance between driving EBITDA growth and investing in future growth opportunities [50][56] Question: Flat market volumes despite strong January - Management acknowledges mixed data in the market and prefers to assume a flat market for 2025 while remaining open to potential improvements [62][66] Question: Competitive landscape and technology advancements - Management respects competition but believes in the unique value proposition offered to dealers, emphasizing their comprehensive suite of services [71][112] Question: ACV MAX and ClearCar adoption - Management reports strong reception and partnerships developing around ACV MAX and ClearCar, viewing these as integral to future growth [118][122] Question: Transportation and Capital growth plans - Management is optimistic about growing ACV Transportation and Capital, with plans to increase sales efforts in these areas [126][132]

Q4-24 EARNINGS PRESENTATION FEB_19_2025 FORWARD LOOKING STATEMENTS Statements in this presentation regarding future performance and future expectations, beliefs, goals, plans or prospects include forward looking statements for purposes of federal and state securities laws, including statements regarding ACV's avenues for long term growth and total addressable market expansion, our financial guidance for the first quarter and full year of 2025, and operational and product strategy. Any statements that are no ...

Marketplace Performance - In 2024, the company had 20,975 active Marketplace Buyers and 14,377 active Marketplace Sellers, generating $9.5 billion in Marketplace GMV, reflecting changes of 23%, 25%, and 8% respectively from the prior year[44]. - The company experiences seasonality in vehicle auction volumes, typically seeing lower volumes in the fourth quarter and winter months, which affects revenue and operating expenses[66]. - Seasonal fluctuations in vehicle sales may impact quarterly results, with sales typically peaking in the first quarter and declining in the fourth quarter[117]. Technology and Services - The company offers a comprehensive suite of products and services, including ACV Transportation and ACV Capital, to enhance the transaction journey for customers[45]. - The True360 Report provides proprietary, vehicle-specific intelligence, enabling dealers to make informed wholesale and retail transaction decisions[38]. - The ACV Market Report offers transaction data and condition reports for comparable used vehicles, assisting dealers in pricing and valuation strategies[40]. - The company's technology platform supports real-time transactions of wholesale vehicles, with thousands of dealers transacting daily[37]. - The growing repository of data enables transparent and accurate vehicle information, improving transaction efficiency[46]. - The company’s investments in technology have optimized process workflows, enhancing pre- and post-auction services[45]. Competitive Landscape - The company competes with large national physical vehicle auction companies, including Manheim and Adesa, which have expanded into online marketplaces, increasing competitive pressure[98]. - The company’s ability to grow the share of wholesale transactions from existing customers is critical for maintaining revenue, but customer satisfaction and competitive pressures could affect this[100]. - The company’s revenue and profitability may be impacted by decreases in the supply of used vehicles coming to the wholesale market, which could result from various external factors[101]. Financial Risks - The company faces risks related to fluctuations in benchmark interest rates, which could adversely affect its financial condition and liquidity due to its 2021 Revolver and Warehouse Facility[93]. - The company is exposed to credit risk from dealer borrowers, which could negatively impact its financial condition due to defaults on payments[107]. - The company bears settlement risk for vehicles sold through its marketplace, which could lead to significant net losses if receivables are not collected[111]. - Economic conditions, including consumer confidence and credit availability, significantly impact demand for used vehicles[130]. - The company is vulnerable to various risks including natural disasters, geopolitical tensions, and cyber-attacks, which could adversely affect business operations and financial conditions[137]. Compliance and Legal Risks - The company must comply with various laws and regulations regarding data privacy and security, and failure to do so could result in significant legal and financial consequences[153]. - The company is subject to numerous data privacy and security laws, including the California Consumer Privacy Act (CCPA), which provides California residents with expanded rights regarding their personal information[159]. - The company may face litigation and increased costs due to security breaches or cyber-attacks, which could adversely affect business operations and reputation[156]. - The company faces risks related to potential litigation over the use of open source software, which could lead to significant legal costs and operational disruptions[179]. Intellectual Property - The company relies on a combination of trademark, trade secret, patent, and copyright law to protect its intellectual property, but monitoring unauthorized use is challenging[167]. - The company may face legal proceedings alleging infringement of third-party intellectual property rights, which could adversely affect its business and financial condition[172]. - The assignment of intellectual property rights from employees and contractors may not be fully secured, leading to potential ownership disputes[178]. Financial Performance and Shareholder Impact - The company has U.S. federal net operating loss carryforwards (NOLs) of $348.0 million and state NOLs of $302.4 million as of December 31, 2024[194]. - The company expects to issue additional capital stock in the future, which will result in dilution for all other stockholders[204]. - The market price of Class A common stock may be highly volatile, influenced by various factors including market conditions and company performance[205]. - Significant sales of Class A common stock in the public market could depress its market price and impair the company's ability to raise capital[206]. - Analysts' coverage and reports significantly influence the market price and trading volume of Class A common stock; lack of coverage could lead to a decline in stock price[210].

Financial Performance - Fourth quarter revenue reached $160 million, a 35% increase year over year, while full-year revenue totaled $637 million, up 32% year over year[6] - Fourth quarter Adjusted EBITDA was $6 million, compared to a loss of $5 million in the same quarter of 2023, with full-year Adjusted EBITDA at $28 million, improving from a loss of $18 million in 2023[7] - Marketplace and service revenue for the full year was $573 million, a 36% increase year over year, with marketplace units sold totaling 743,008, a 24% increase year over year[8] - Total revenue for the year ended December 31, 2024, was $637,156 thousand, a 32.5% increase from $481,234 thousand in 2023[32] - Marketplace and service revenue for Q4 2024 reached $143,123 thousand, up 37.8% from $103,767 thousand in Q4 2023[32] - Adjusted EBITDA for the year ended December 31, 2024, was $28,136 thousand, compared to a loss of $18,209 thousand in 2023[37] Future Projections - For 2025, the company expects revenue between $765 million and $785 million, representing a growth of 20% to 23% year over year, and Adjusted EBITDA is projected to be between $65 million and $75 million, indicating approximately 150% growth at the midpoint of guidance[6] - The first quarter of 2025 is expected to generate total revenue of $180 million to $185 million, an increase of 24% to 27% year over year, with Adjusted EBITDA projected to rise by 110% to 158% year over year[8] Market Insights - The marketplace GMV for the fourth quarter was $2.3 billion, reflecting a 22% year-over-year increase, with marketplace units sold reaching 183,497, a 27% increase year over year[7] - The dealer wholesale market is anticipated to remain flat year over year in 2025, but the company believes it is well-positioned for sustainable market share gains[4] Net Income and Loss - Non-GAAP net income for the full year 2025 is expected to be between $32 million and $42 million, while GAAP net loss is projected to be between $62 million and $52 million[8] - The company reported a fourth quarter GAAP net loss of $26 million, compared to a loss of $23 million in the fourth quarter of 2023[7] - Net loss for the year ended December 31, 2024, was $79,700 thousand, compared to a net loss of $75,261 thousand in 2023, reflecting a 5.1% increase in losses[32] Cash and Expenses - Cash and cash equivalents increased to $224,065 thousand as of December 31, 2024, from $182,571 thousand at the end of 2023, marking a 22.8% increase[34] - Total operating expenses for the year ended December 31, 2024, were $721,261 thousand, a 26.4% increase from $570,911 thousand in 2023[32] - The company reported a stock-based compensation expense of $68,010 thousand for the year ended December 31, 2024, up from $49,648 thousand in 2023[37] - Total liabilities increased to $544,145 thousand as of December 31, 2024, from $466,396 thousand in 2023, representing a 16.6% increase[34] Acquisitions and Shares - The company acquired businesses for a net cash outflow of $156,475 thousand in 2024, compared to $29,623 thousand in 2023[36] - The weighted-average shares outstanding for the year ended December 31, 2024, were 164,850,699, an increase from 159,952,813 in 2023[32] Upcoming Events - The company plans to host an analyst meeting on March 11, 2025, to discuss further insights and strategies[10]

Core Insights - ACV reported strong fourth quarter results with revenue and Adjusted EBITDA exceeding the high-end of guidance, indicating continued margin expansion and market share gains [3][4] - The company anticipates sustainable market share gains and strong revenue growth in 2025 despite a flat dealer wholesale market [4] Financial Performance - Fourth quarter revenue reached $160 million, a 35% increase year-over-year, with marketplace and service revenue at $143 million, up 38% year-over-year [8] - Full-year revenue for 2024 was $637 million, a 32% increase year-over-year, with marketplace GMV of $9.5 billion, up 7% year-over-year [8] - Adjusted EBITDA for the fourth quarter was $6 million, compared to a loss of $5 million in the same quarter of 2023, while full-year Adjusted EBITDA was $28 million, improving from a loss of $18 million in 2023 [8] Guidance and Outlook - For the first quarter of 2025, ACV expects total revenue between $180 million and $185 million, representing a year-over-year increase of 24% to 27% [7] - Full-year 2025 revenue is projected to be between $765 million and $785 million, reflecting a growth of 20% to 23% year-over-year, with Adjusted EBITDA expected to grow approximately 150% year-over-year at the midpoint of guidance [7][14] Market Metrics - Marketplace GMV for the fourth quarter was $2.3 billion, a 22% increase year-over-year, with marketplace units transacted reaching 183,497, up 27% year-over-year [8] - The company’s expanding suite of dealer solutions is gaining traction, contributing to strong revenue growth [3] Operational Highlights - The company reported a GAAP net loss of $26 million for the fourth quarter, compared to a loss of $23 million in the fourth quarter of 2023 [8] - Non-GAAP net income for the full year 2024 was $11 million, contrasting with a loss of $16 million in 2023 [8][37]

Industry Overview - The e-commerce industry is expected to perform well in 2024, with e-commerce sales in Q3 2024 growing by 7.4% compared to Q3 2023, while total retail sales increased by 2.1% [1] - E-commerce accounted for approximately 16.2% of total U.S. retail sales, with Q4 typically being the strongest quarter for the industry [2] - The convenience of online shopping is a primary driver of e-commerce growth, particularly among Gen-Z consumers who are accustomed to high levels of digitization [3][4] Current Trends - The 2024 holiday sales season has shown strong performance, with consumers spending 8.4% more than the previous year, driven by steep discounts and increased mobile shopping [5] - Mobile shopping accounted for 54.5% of total shopping, with AI influencing 19% of orders during the holiday season [6] - The total retail experience is increasingly blending online and offline activities, with consumers preferring faster delivery and pickup options [10] Market Performance - The Zacks Internet - Commerce industry ranks 70, placing it in the top 28% of 250 Zacks industries, indicating positive near-term prospects [11] - The industry has collectively gained 43.5% over the past year, outperforming the broader Zacks Retail and Wholesale Sector and the S&P 500 [16] Valuation Insights - The industry currently trades at a price-to-earnings (P/E) ratio of 26.6X, representing a premium to both the S&P 500 and the broader retail sector [18] - Despite the positive growth trends, the industry is considered overvalued compared to its historical median P/E level [18] Stock Recommendations - **ACV Auctions Inc. (ACVA)**: Expected to see significant growth with analyst estimates projecting 160% growth in 2024 and 517% in 2025, driven by a 32% revenue growth in 2024 [22][23][24] - **Amazon, Inc. (AMZN)**: Anticipated to achieve 10.9% revenue growth and 82.4% earnings growth in 2024, supported by its Prime loyalty program and AWS [26][28] - **JD.com, Inc. (JD)**: Projected earnings growth of 31.7% in 2024, benefiting from improved consumer sentiment and strong performance in general merchandise [30][32]

Core Viewpoint - ACV, a leading digital automotive marketplace, is set to report its fourth quarter 2024 financial results and will host an analyst meeting in March 2025 to discuss its business strategies and performance [1][3]. Financial Reporting - ACV will announce its fourth quarter 2024 financial results after market close on February 19, 2025, followed by a conference call at 5:00 p.m. ET [1]. - Investors and analysts can participate in the call by dialing the provided numbers approximately 10 minutes before the start [2]. Analyst Day - ACV will host an Analyst Day on March 11, 2025, at Convene in Midtown Manhattan, starting at 1:00 p.m. ET and concluding at 4:00 p.m. ET, followed by a reception with management [3]. - Registration for the event can be completed via email [3]. Webcast Availability - Live webcasts of the financial results and Analyst Day will be available on ACV's investor relations website, with archived replays accessible afterward [4]. Company Overview - ACV aims to transform the automotive industry by providing a trusted digital marketplace and data solutions for used vehicle transactions, emphasizing transparency and comprehensive insights [5]. - The company's offerings include ACV Auctions, ACV Transportation, ACV Capital, MAX Digital, True360, and ClearCar [5].

Core Insights - ACV is leveraging its extensive data and AI capabilities to enhance vehicle pricing and dealership operations, aiming to improve efficiency and profitability for dealers [1][3][8] - The company is set to showcase its innovative solutions at the 2025 NADA Show, focusing on inventory acquisition, management, and appraisals [1][3][8] Group 1: Product Offerings and Innovations - ACV's data, derived from millions of used vehicle inspections and transactions, is transforming dealer operations by providing real-time pricing and inventory insights [2][5] - The introduction of ClearCar's QuickQuote enhances flexibility in sourcing consumer leads and inventory acquisition, utilizing real-time marketplace data [5] - ACV MAX now includes an appraisal-only option, delivering precision in vehicle appraisals based on market data, responding to dealer feedback for a more streamlined solution [5] Group 2: Educational Initiatives and Engagement - ACV will host an educational workshop at the NADA Show, focusing on strategies to enhance profitability in service centers and improve vehicle inspections [4] - The TEC Talks series will feature industry experts discussing data insights and strategies for dealers, covering topics like precision pricing and AI-powered appraisals [7] Group 3: Strategic Vision and Market Position - ACV's CEO emphasizes the importance of AI in the automotive industry, highlighting the company's commitment to helping partners thrive amidst evolving market conditions [8] - The company aims to build a trusted digital marketplace for used vehicles, providing comprehensive insights and transparency [10]