Q1 2025 Performance - Revenue for Q1 2025 reached $183 million, a 25% year-over-year increase compared to $146 million in Q1 2024[13] - Marketplace units transacted in Q1 2025 totaled 208,000, up from 175,000 in Q1 2024[13] - Adjusted EBITDA for Q1 2025 was $14 million, significantly higher than the $4 million in Q1 2024[13] Financial Outlook - The company projects revenue between $193 million and $198 million for Q2 2025, representing a year-over-year growth of 20% to 23%[67] - Full-year 2025 revenue is projected to be in the range of $765 million to $785 million, also indicating a 20% to 23% year-over-year increase[67] - Adjusted EBITDA for Q2 2025 is expected to be between $18 million and $20 million, with an Adjusted EBITDA margin of 9% to 10%[67] - The company anticipates full-year 2025 Adjusted EBITDA to be between $65 million and $75 million, maintaining an Adjusted EBITDA margin of 9% to 10%[67] - Non-GAAP net income for Q2 2025 is guided to be between $11 million and $13 million, and for the full year 2025, it's expected to be between $33 million and $43 million[67] Revenue Diversification - The company's revenue streams are diversified across SaaS & Data Services, Marketplace Services, Transportation, Capital, and Auction & Assurance[57] - SaaS & Data Services accounted for 57% of the revenue in Q1 2025[57]

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]

Investment Rating - The report assigns an "Overweight" (OW) rating to General Motors (GM) and Ford, while Tesla and Rivian are rated "Underweight" (UW) [6][7]. Core Insights - The automotive industry is experiencing varied performance metrics across different companies, with GM and Ford showing potential upside in their stock prices, while Tesla and Rivian face significant downside risks [6][7]. - The report highlights the importance of valuation metrics such as EV/EBITDA, P/E ratios, and sales growth projections for assessing investment opportunities within the automotive sector [6][22]. Global Auto OEMs Investment Comparables - General Motors (GM) has a current price of $44.57 with a market cap of $43.067 billion and a target price of $53.00, indicating a 19% upside potential [6]. - Ford (F) is priced at $9.63 with a market cap of $38.294 billion and a target price of $11.00, representing a 14% upside [6]. - Ferrari (RACE) is valued at $439.97 with a target price of $460.00, showing a 5% upside [6]. - Tesla (TSLA) is currently priced at $241.37 with a target price of $120.00, indicating a -50% downside [6]. - Rivian (RIVN) has a price of $11.60 with a target price of $11.00, reflecting a -5% downside [6]. Global Auto Parts Suppliers Valuation Metrics - The average EV/EBITDA for US auto parts suppliers is projected at 1.8x for 2024, with a corresponding EBITDA margin of 12% [22]. - Aptiv (APTV) is rated "Overweight" with a current price of $51.71 and a target price of $102, indicating a 97% upside [22]. - Borg Warner (BWA) is rated "Overweight" with a price of $26.45 and a target price of $46, representing a 74% upside [22]. - Lear Corp (LEA) is rated "Overweight" with a price of $79.42 and a target price of $140, indicating a 76% upside [22]. Performance Metrics - The report indicates that the average revenue CAGR for US auto parts suppliers is projected to be 2% from 2023 to 2025 [74]. - The EBITDA margin for US auto parts suppliers is expected to be around 12% in 2025, with some companies showing higher margins [74][83]. - The report also highlights the financial returns of various suppliers, with some companies achieving significant returns on invested capital (ROIC) [54][56].

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].

Summary of ACV Auctions (ACVA) 2025 Analyst Day Company Overview - **Company**: ACV Auctions (ACVA) - **Event**: 2025 Analyst Day held on March 11, 2025 - **Focus**: Digital transformation in the automotive market, expanding product portfolio, and dealer wholesale strategies Key Industry Insights - **Market Size**: The dealer wholesale market has a Total Addressable Market (TAM) of over 10 million wholesale units, with a significant portion sold through legacy channels [7][8] - **Commercial Market**: The commercial market represents a TAM of over 6 million wholesale units [8] - **SaaS and Data Services**: The TAM for SaaS and Data Services includes over 50,000 dealers in the U.S. [9] Financial Performance - **Revenue Growth**: Revenue increased from $1 million in 2016 to $630 million in 2024, marking a significant growth trajectory [7] - **Profitability**: Achieved profitability from an adjusted EBITDA perspective for the first time in 2024 [7] - **Vehicle Transactions**: Sold 3 million vehicles on the platform since inception [7] Strategic Initiatives - **Technology and Innovation**: Emphasis on building a unique data moat and leveraging AI to enhance marketplace efficiency and dealer engagement [12][13] - **Market Expansion**: Focus on expanding market share through innovative products and services, including ACV AI and enhanced inspection capabilities [12][13][72] - **Dealer Partnerships**: Strengthening relationships with dealer partners to drive growth and improve operational efficiencies [60] Market Share and Penetration - **Dealer Wholesale Units**: Estimated dealer wholesale units were about 7.5 million in 2024, which is 30% below historic volumes [14] - **Market Share Growth**: Achieved significant market share across various regions, with some areas reaching over 20% market share [30][34][46] - **Wallet Share**: Tripled wallet share since 2016, with regions showing over 50% wallet share on average [49][50] Product and Service Innovations - **ACV Transport**: A tech-enabled brokerage that matches vehicle loads to carriers, now offering services for all vehicles, not just those bought on ACV [67][71] - **ACV Capital**: A loan management platform that offers flexible terms and supports dealers in acquiring consumer vehicles [70][107] - **ClearCar**: A vehicle valuation tool that helps dealers acquire vehicles more efficiently [72][100] Customer Engagement and Feedback - **Dealer Satisfaction**: Positive feedback from dealers regarding the ease of use and transparency of ACV's platform [96][95] - **Operational Efficiency**: ACV's products are reported to enhance profitability and streamline dealership operations [93][95] Future Outlook - **Growth Strategy**: Plans to continue expanding market share and product offerings, focusing on both domestic and international markets [9][12] - **AI Integration**: Continued investment in AI to improve product offerings and operational efficiencies [74][80] Conclusion - **Strategic Positioning**: ACV is well-positioned to lead the digital transformation in the automotive industry, leveraging technology and data to enhance dealer operations and customer experiences [12][83]

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]

Financial Performance & Growth - ACV's Q4 2024 revenue reached $160 million, a 35% year-over-year increase, surpassing the guidance of $152-$156 million[7, 26] - Full year 2024 revenue was $637 million, representing a 32% year-over-year growth compared to $481 million in 2023[7] - Marketplace units increased to 183,000 in Q4 2024, up from 144,000 in Q4 2023, and reached 743,000 for the full year 2024, compared to 599,000 in 2023[7] - The company's GMV (Gross Merchandise Volume) grew to $2.3 billion in Q4 2024 from $1.8 billion in Q4 2023, and reached $9.5 billion for the full year 2024, compared to $8.8 billion in 2023[7] - ACV Transportation experienced over 30% full-year revenue growth, transporting 410,000 vehicles[15] - ACV Capital achieved approximately 26% year-over-year revenue growth[19] Profitability & Margin Improvement - Adjusted EBITDA for Q4 2024 was $6 million, a significant improvement from $(5) million in Q4 2023, exceeding the guidance of $(1) million[26] - Non-GAAP net income for Q4 2024 was $(1) million, compared to $(6) million in Q4 2023, also exceeding the guidance of $2-$4 million[26] - Non-GAAP cost of revenue decreased from 51% of revenue in Q4 2023 to 47% in Q4 2024[30] - Adjusted EBITDA margin improved from (13%) in 2022 to 4% in 2024[34] Future Outlook - The company projects revenue between $765 million and $785 million for 2025, indicating a year-over-year growth of 20% to 23%[37] - Adjusted EBITDA is projected to be between $65 million and $75 million in 2025, with an Adjusted EBITDA margin of 8% to 10%[37]

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].