Financial Data and Key Metrics Changes - Q1 revenue reached $183 million, representing a 25% year-over-year growth, with adjusted EBITDA of $14 million exceeding the high end of guidance [7][22][28] - Organic revenue growth was approximately 20% year-over-year, with adjusted EBITDA margin improving by 500 basis points [22][23] - Non-GAAP net income was above the high end of guidance, with margin increasing approximately 300 basis points year-over-year [23] Business Line Data and Key Metrics Changes - Auction and assurance revenue accounted for 58% of total revenue, growing 28% year-over-year, driven by 19% unit growth and an average revenue per unit (ARPU) of $500, which grew 8% [24] - Marketplace services revenue comprised 37% of total revenue, growing 24% year-over-year, reflecting record revenue for ACV Transport and ACV Capital [24] - SaaS and data services products made up 5% of total revenue, with a growth of 5% year-over-year [24] Market Data and Key Metrics Changes - The dealer wholesale market grew in the low single digits, with ACV selling 208,000 vehicles, a 19% year-over-year increase despite soft market conditions in February [7][22] - The overall dealer wholesale market is expected to be approximately flat year-over-year for 2025, with expectations for conversion rates and wholesale price depreciation to follow normal seasonal patterns [29][107] Company Strategy and Development Direction - The company focuses on three pillars for long-term shareholder value: growth, innovation, and scale, with a strong emphasis on expanding its dealer partner network and enhancing product offerings [6][8] - The strategy includes leveraging AI across product offerings to provide accurate pricing guidance and improve operational efficiencies [9][15] - The company aims to continue executing its profitable growth strategy while investing in long-term growth objectives [6][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong top-line growth and increased adjusted EBITDA despite evolving macroeconomic conditions [6][31] - The company anticipates continued market share gains and is focused on expanding its addressable market as market conditions improve [31] - Management noted that while there are uncertainties in the broader market, the company is well-positioned to navigate these challenges [31][84] Other Important Information - The company ended Q1 with $342 million in cash and cash equivalents and marketable securities, alongside $167 million of debt [26] - For Q2, the company expects revenue in the range of $193 million to $198 million, reflecting a year-over-year growth of 20% to 23% [28] Q&A Session Summary Question: Is there any customer pushback regarding recent fee increases? - Management reported very little pushback from customers regarding price increases, emphasizing a fair pricing strategy and strong value proposition [34][36] Question: What growth avenues does ACV see under a tariff backdrop? - Management highlighted that ACV continues to grow and take market share, with value-added solutions helping to differentiate the company [39][42] Question: Have dealers' needs shifted due to tariffs? - Management noted that dealers are primarily focused on acquiring more inventory, with increased interest in new products [50][52] Question: What is the penetration and potential impact of the price guarantee tool and Project Viper? - Management indicated that the guarantee offering is growing, with significant interest, and Project Viper is in early beta stages with high demand [57][66] Question: How is ACV managing risk in ACV Capital? - Management explained that risk is minimized through regular dealer visits and improved risk management capabilities, resulting in reduced bad debt expense [75][76] Question: How does the company view the impact of tariffs on wholesale listings? - Management stated that while tariffs may affect pricing, the company primarily sources supply from dealers, which mitigates potential impacts [80][82] Question: What are the competitive dynamics in the market? - Management noted that competition remains strong, but ACV continues to execute well and take market share, positioning itself as a neutral partner for dealers [92][95] Question: How are dealers leveraging real-time data provided by ACV? - Management shared examples of dealers using ACV tools to buy cars from service drives and automate pricing, enhancing their operational efficiency [98][100]

Financial Data and Key Metrics Changes - Q1 revenue reached $183 million, representing a 25% year-over-year growth, with adjusted EBITDA of $14 million exceeding the high end of guidance [6][22][27] - Organic revenue growth was approximately 20% year-over-year, with adjusted EBITDA margin improving by 500 basis points [22][24] - Non-GAAP net income was above the high end of guidance, with margin increasing approximately 300 basis points year-over-year [22][24] Business Line Data and Key Metrics Changes - Auction and assurance revenue accounted for 58% of total revenue, growing 28% year-over-year, driven by 19% unit growth and an average revenue per unit (ARPU) of $500, which grew 8% [24] - Marketplace services revenue comprised 37% of total revenue, growing 24% year-over-year, reflecting record revenue for ACV Transport and ACV Capital [24] - SaaS and data services products made up 5% of total revenue, with a growth of 5% year-over-year [24] Market Data and Key Metrics Changes - The dealer wholesale market grew in the low single digits, with ACV selling 208,000 vehicles, a 19% year-over-year increase despite soft market conditions in February [6][22] - The overall used car supply is expected to be at a trough year, impacting market dynamics [42] Company Strategy and Development Direction - The company focuses on three pillars for long-term shareholder value: growth, innovation, and scale [7][31] - ACV is leveraging AI across its product offerings to enhance pricing guidance and improve dealer experiences [8][16] - The company aims to expand its total addressable market (TAM) and competitive moat through innovative product roadmaps and value-added services [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing a profitable growth strategy to create significant long-term shareholder value, despite evolving macroeconomic conditions [5][31] - The company anticipates revenue growth to exceed non-GAAP operating expense growth by approximately 500 basis points [28] Other Important Information - The company ended Q1 with $342 million in cash and cash equivalents and marketable securities, alongside $167 million of debt [26] - For Q2, the company expects revenue in the range of $193 million to $198 million, reflecting a year-over-year growth of 20% to 23% [27] Q&A Session Summary Question: Customer pushback on fee increases due to tariffs - Management reported very little pushback from customers regarding recent fee increases, emphasizing a fair pricing strategy [34][36] Question: Growth avenues under tariff conditions - Management highlighted ongoing growth and market share gains, with value-added solutions helping to differentiate ACV from competitors [38][41] Question: Dealers' needs and focus shifts due to tariffs - Management noted that franchise dealers are increasingly seeking more inventory and showing interest in new products, rather than being significantly impacted by tariffs [49][50] Question: Penetration and impact of new tools like price guarantee and Viper - The price guarantee tool is seeing strong interest, with an average of 10 bidders per car, while Viper is in beta testing with high demand anticipated [55][64] Question: ACV Capital's growth and risk management - ACV Capital grew revenue by 33% year-over-year, with improved risk management capabilities leading to a 50% reduction in bad debt expense [74][75] Question: Impact of tariffs on fleet owners and wholesale listings - Management indicated that while tariffs may affect new vehicle pricing, the current supply primarily comes from dealers, minimizing potential impacts on ACV's business model [78][80] Question: Competitive dynamics in the market - Management noted no significant changes in competitive dynamics, asserting that ACV continues to execute well and take market share [90][92] Question: Leveraging data for dealer decision-making - Management described how dealers are increasingly using ACV's tools to make informed decisions on pricing and inventory management, enhancing operational efficiency [95][100] Question: Year-to-date performance of the dealer wholesale market - Management reported that the dealer wholesale market is up low single digits year-to-date, with expectations for a flattish performance throughout the year [104][106]

Marketplace Performance - Marketplace Units increased to 208,025 in Q1 2025 from 174,631 in Q1 2024, representing a growth of 19.1%[81] - Marketplace GMV reached $2.6 billion in Q1 2025, up from $2.3 billion in Q1 2024, indicating a year-over-year increase of 13.0%[81] - Marketplace and service revenue increased by 28% to $165.9 million for the three months ended March 31, 2025, compared to $129.8 million in the same period of 2024[118] - The volume of Marketplace Units sold increased to 208,025 in Q1 2025 from 174,631 in Q1 2024, indicating higher customer engagement[120] - The average total revenue per Marketplace Unit increased due to higher buyer rates and additional ancillary services[120] Financial Performance - Adjusted EBITDA improved to $13.9 million in Q1 2025 compared to $4.3 million in Q1 2024, reflecting a significant increase of 223.3%[81] - Adjusted EBITDA for Q1 2025 was $13.908 million, compared to $4.272 million in Q1 2024, reflecting improved operating performance[137] - Non-GAAP Net income for Q1 2025 was $7.496 million, up from $1.218 million in Q1 2024, indicating a significant improvement in operational efficiency[142] - Net loss for the three months ended March 31, 2025, was $14.8 million, compared to a net loss of $20.5 million in the same period of 2024[115] Revenue Streams - The company generates revenue primarily from its digital marketplace through auction and ancillary fees, with additional revenue from data services and customer assurance products[103] - Customer assurance revenue rose by 6% to $16.8 million for the three months ended March 31, 2025, up from $15.9 million in the prior year[121] Operating Expenses - Total operating expenses increased to $197.1 million for the three months ended March 31, 2025, compared to $168.2 million in 2024[115] - Marketplace and service cost of revenue (excluding depreciation & amortization) increased by 25% to $69.4 million for the three months ended March 31, 2025[122] - Operations and technology expenses rose by 16% to $44.2 million for the three months ended March 31, 2025, compared to $38.1 million in 2024[125] - Selling, general, and administrative expenses accounted for 32% of total revenue in Q1 2025, down from 37% in Q1 2024[115] - Selling, general, and administrative expenses increased by $5.165 million (10%) from $53.853 million in Q1 2024 to $59.018 million in Q1 2025, primarily due to higher personnel-related costs[126] - Personnel-related costs rose to $47.2 million in Q1 2025 from $42.9 million in Q1 2024, attributed to headcount increases from prior year acquisitions and increased stock-based compensation[126] - Depreciation and amortization expenses increased by $2.754 million (35%) from $7.787 million in Q1 2024 to $10.541 million in Q1 2025, mainly due to increased amortization of internal-use software costs[127] Cash Flow and Liquidity - As of March 31, 2025, the company had cash and cash equivalents totaling $291.9 million and investments in marketable securities totaling $49.9 million, indicating strong liquidity[145] - Net cash provided by operating activities for the three months ended March 31, 2025, was $66.6 million, compared to $43.0 million for the same period in 2024[158] - Net cash used in investing activities increased to $30.9 million in the three months ended March 31, 2025, from $20.9 million in 2024, primarily due to an increase in finance receivables[159] - Net cash provided by financing activities rose to $32.0 million in the three months ended March 31, 2025, from $5.3 million in 2024, driven by higher proceeds from long-term debt[161] - The company had cash and cash equivalents of $291.9 million and marketable securities of $49.9 million as of March 31, 2025[169] Debt and Financing - The company may require additional equity or debt financing in the future to support operations and expansion, depending on sales volume and capital expenditure needs[145] - The 2021 Revolver provides a revolving line of credit of up to $160.0 million, with $100.0 million drawn as of March 31, 2025, at an interest rate of 9.25%[151] - The Warehouse Facility has a maximum principal amount of $125.0 million, established to fund new auto floorplan loans, maturing on June 20, 2027[152] - As of March 31, 2025, borrowings under the Warehouse Facility were $66.5 million with an interest rate of 7.49%[153] Tax and Interest - Interest income decreased by $1.142 million (38%) from $3.031 million in Q1 2024 to $1.889 million in Q1 2025, driven by a lower balance in marketable securities and lower average interest rates[129] - Interest expense increased by $1.375 million (257%) from $535,000 in Q1 2024 to $1.910 million in Q1 2025, primarily due to interest and fees related to a new Warehouse facility[130] - The provision for income taxes decreased by $75,000 (17%) from $440,000 in Q1 2024 to $365,000 in Q1 2025, with an effective tax rate of approximately (3%) in Q1 2025[131] Future Outlook - The company aims to grow its share of wholesale transactions from existing customers, which is critical for revenue growth[92] - There is a significant opportunity to add new Marketplace Buyers and Sellers as the company expands its presence in existing territories[93] - The company continues to invest in technology development and sales and marketing efforts, anticipating increased operating expenses in the near term[98] - Demand for used vehicles remains strong, with the company benefiting from rising consumer demand since early 2020[99] - The company expects to drive customer adoption of value-added and data services, enhancing revenue growth opportunities[97] - Seasonal fluctuations in used vehicle sales are anticipated, with sales typically peaking in late Q1 and early Q2[100] Compliance and Accounting - The company is in compliance with all applicable covenants as of March 31, 2025[154] - A hypothetical 100 basis point change in interest rates would not result in a material impact on the company's financial statements[169] - The company’s financial statements are prepared in accordance with GAAP, requiring estimates and assumptions that could differ from actual results[166]

Financial Performance - First quarter 2025 revenue reached $183 million, representing a 25% year-over-year increase[7] - Total revenue for Q1 2025 was $182.7 million, a 25.4% increase from $145.7 million in Q1 2024[31] - Marketplace and Service Revenue was $166 million, an increase of 28% year-over-year[8] - Marketplace and service revenue reached $165.9 million, up 28% from $129.8 million year-over-year[31] - First quarter GAAP net loss was $15 million, an improvement from a loss of $20 million in Q1 2024[8] - Net loss for Q1 2025 was $14.8 million, compared to a net loss of $20.5 million in Q1 2024, representing a 27.5% improvement[31] - Non-GAAP net income for the first quarter was $7 million, compared to a loss of $1 million in Q1 2024[8] - The company reported a non-GAAP net income of $7.5 million for Q1 2025, compared to $1.2 million in Q1 2024[36] Growth Expectations - The company expects full-year 2025 revenue to be between $765 million and $785 million, reflecting a growth of 20% to 23% year-over-year[12] - The dealer wholesale market is expected to remain approximately flat year-over-year in 2025[12] Marketplace Metrics - Marketplace GMV for the first quarter was $2.6 billion, an increase of 13% year-over-year[8] - The number of Marketplace Units transacted was 208,025, up 19% year-over-year[8] Adjusted EBITDA - Adjusted EBITDA for the first quarter was $14 million, compared to $4 million in the same quarter of 2024[8] - Adjusted EBITDA for Q1 2025 was $13.9 million, significantly higher than $4.3 million in Q1 2024[36] - The company anticipates Adjusted EBITDA for the full year to be between $65 million and $75 million[12] Cash and Assets - Cash and cash equivalents increased to $291.9 million as of March 31, 2025, from $224.1 million at the end of 2024, a 30.3% rise[33] - Total assets grew to $1.15 billion, up from $984.1 million at the end of 2024, reflecting a 16.9% increase[33] Operating Expenses - Total operating expenses for Q1 2025 were $197.1 million, up from $168.2 million in Q1 2024, a 17.2% increase[31] - Stock-based compensation expense for Q1 2025 was $16.6 million, compared to $14.8 million in Q1 2024, indicating a 12.1% increase[36] Debt - Long-term debt increased to $166.5 million as of March 31, 2025, from $123 million at the end of 2024, a 35.3% increase[33]

HIGHLIGHTS Q1-25 EARNINGS PRESENTATION MAY 7, 2025 © 2025 ACV Auctions, Inc. 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 second quarter and full year of 2025, and operational and produc ...

Core Insights - ACV reported strong first quarter results with revenue growth of 25% year-over-year, reaching $183 million, and Adjusted EBITDA of $14 million, exceeding guidance [2][5][6] - The dealer wholesale market experienced modest growth but remains below historical levels due to a shortage of used vehicle inventory and challenging market conditions [3][6] - The company is well-positioned for sustainable growth in dealer wholesale and is executing on its commercial wholesale strategy [3][6] Financial Performance - First quarter revenue was $183 million, a 25% increase from the previous year, with marketplace and service revenue at $166 million, up 28% year-over-year [5][6] - GAAP net loss for the first quarter was $15 million, an improvement from a loss of $20 million in Q1 2024, while non-GAAP net income was $7 million compared to a loss of $1 million in the same period last year [6][27] - Adjusted EBITDA for the first quarter was $14 million, significantly higher than $4 million in Q1 2024 [6][32] Market Outlook - For the second quarter of 2025, ACV expects revenue between $193 million and $198 million, representing a year-over-year growth of 20% to 23% [5][6] - Full-year 2025 revenue guidance is set at $765 million to $785 million, indicating a growth of 20% to 23% year-over-year [5][6] - The dealer wholesale market is anticipated to remain approximately flat year-over-year in 2025, with conversion rates and wholesale price depreciation expected to follow normal seasonal patterns [3][13] Operational Metrics - Marketplace GMV (Gross Merchandise Volume) reached $2.6 billion, a 13% increase year-over-year, with marketplace units transacted totaling 208,025, up 19% [6][22] - The company’s total assets as of March 31, 2025, were $1.15 billion, an increase from $984 million at the end of 2024 [29] - Cash and cash equivalents increased to $291.9 million from $224.1 million at the end of 2024, reflecting strong cash flow from operations [30][29]

Core Insights - ACV is a leading digital automotive marketplace and data services partner focused on transforming the automotive industry through transparency and comprehensive insights [2] Company Information - ACV offers a range of services including ACV Auctions, ACV Transportation, ACV Capital, ACV MAX, True360, and ClearCar aimed at sourcing, selling, and managing used vehicles [2] - The company is committed to building the most trusted and efficient digital marketplace for the automotive sector [2] Upcoming Events - ACV management will present at the 20th Annual Needham Technology, Media, & Consumer Conference on May 12, 2025, at 2:15 p.m. ET [3] - The company will also participate in the 53rd Annual J.P. Morgan Global Technology, Media and Communications Conference on May 13, 2025, at 3:10 p.m. ET [3]

Core Viewpoint - ACV, a digital automotive marketplace, is set to report its first quarter 2025 financial results on May 7, 2025, after market close [1]. Group 1: Financial Reporting - The company will host a conference call at 5:00 p.m. ET on the same day to discuss the financial results [1]. - Investors and analysts can participate in the call by dialing the provided numbers approximately 10 minutes prior to the start [2]. Group 2: Company Overview - ACV aims to transform the automotive industry by providing a trusted and efficient digital marketplace along with data solutions for used vehicle management [3]. - The company's offerings include ACV Auctions, ACV Transportation, ACV Capital, ACV MAX, True360, and ClearCar [3].

ACV Auctions (ACVA) 2025 Analyst Day March 11, 2025 01:00 PM ET Speaker0Good afternoon, everybody. Thanks for joining us today for our twenty twenty five Analyst Day. I wish we could be meeting under better circumstances given our little market dislocation here, but it's an opportunity as someone just told me a little bit earlier. For those of who don't know me, my name is Tim Fox. I'm the Vice President of Investor Relations and Strategic Finance here at ACV.And on behalf of the entire team, I would like t ...

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].