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].

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].