Financial Performance - For the three and six months ended June 30, 2023, the company sold 153,148 and 304,711 Marketplace Units, resulting in a Marketplace Gross Merchandise Value (GMV) of $2.5 billion and $4.9 billion, representing a decrease of 10% and 5% from the same periods in 2022[82]. - Revenue for the three and six months ended June 30, 2023, was $124.2 million and $243.8 million, reflecting an increase of 8% and 12% respectively compared to the same periods in 2022[82]. - The company reported a net loss of $15.6 million and $33.8 million for the three and six months ended June 30, 2023, compared to a net loss of $24.5 million and $54.0 million for the same periods in 2022[82]. - Adjusted EBITDA for the three and six months ended June 30, 2023, was $(3.5) million and $(9.2) million, an improvement from $(14.1) million and $(32.0) million for the same periods in 2022[82]. - Total revenue for the first half of 2023 reached $243,843,000, compared to $218,137,000 in the same period of 2022[120]. - Marketplace and service revenue for the three months ended June 30, 2023, increased to $109.36 million from $97.75 million, representing a 12% year-over-year growth[124]. - Marketplace and service revenue for the six months ended June 30, 2023, increased to $214.2 million from $186.1 million, a 15% increase year-over-year[139]. Operating Expenses - Operating expenses for Q2 2023 totaled $144,007,000, up from $139,811,000 in Q2 2022[120]. - The company expects operating expenses to increase in absolute dollars as it scales its business and introduces new products and services[112]. - Selling, general, and administrative expenses rose to $41.18 million from $36.14 million, an increase of 14% driven by higher personnel-related costs[131]. - Selling, general, and administrative expenses increased to $82.9 million from $72.2 million, a 15% increase, driven by higher personnel-related costs[146]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2023, totaled $271.9 million, with marketable securities amounting to $228.4 million, indicating sufficient liquidity for at least the next 12 months[164]. - Net cash provided by operating activities for the six months ended June 30, 2023, was $23.4 million, a significant improvement compared to a net cash used of $(72.6) million in the same period of 2022[176]. - The company experienced a decrease in accounts receivable by $27.1 million during the six months ended June 30, 2023, contributing to improved cash flow[176]. - As of June 30, 2023, the company had cash and cash equivalents totaling $271.9 million, consisting of interest-bearing investments with maturities of three months or less[187]. Interest and Debt - Interest income for Q2 2023 was $4,720,000, significantly higher than $638,000 in Q2 2022[120]. - Interest income surged to $8.0 million from $0.7 million, a 1075% increase, due to higher average balances of marketable securities and interest rates[149]. - Interest expense increased to $(0.45) million from $(0.24) million, reflecting an 89% rise due to increased borrowings[135]. - Interest expense increased to $0.8 million from $0.4 million, a 71% rise, attributed to increased borrowings[149]. - As of June 30, 2023, $105.0 million was drawn under the 2021 Revolver, with an outstanding letter of credit of $1.6 million[171]. - The 2021 Revolver has a maturity date of August 24, 2026, and includes financial covenants requiring maintenance of minimum liquidity levels[170]. Market Strategy and Growth - The company aims to increase Marketplace Units, which are critical for revenue growth, by enhancing the transparency and efficiency of its digital marketplace[92]. - The company plans to grow its share of wholesale transactions from existing customers, focusing on increasing engagement and spend on its platform[93]. - The company intends to add new Marketplace Buyers and Sellers to drive liquidity and vehicle selection, thereby improving marketplace attractiveness[94]. - The company is investing in growth, anticipating increased operating expenses to support sales, marketing, and technology development[100]. - The demand for used vehicles remains strong, which has positively impacted the company's growth in recent years[101]. - The company is focused on driving customer adoption of existing value-added and data services, as well as introducing new products to enhance its platform[99]. Revenue Breakdown - Marketplace and service revenue for Q2 2023 was $109,360,000, representing 88% of total revenue, an increase from $97,752,000 (85%) in Q2 2022[120]. - Customer assurance revenue for Q2 2023 was $14,857,000, accounting for 12% of total revenue, down from $17,320,000 (15%) in Q2 2022[120]. - Customer assurance revenue decreased to $14.86 million from $17.32 million, a decline of 14% primarily due to lower Go Green assurance revenue[126]. - Total auction marketplace revenue increased to $54.6 million from $48.1 million, contributing to overall revenue growth[124]. - Auction marketplace revenue rose to $108.5 million from $92.0 million, while other marketplace revenue increased to $89.2 million from $77.8 million[139]. - Customer assurance revenue decreased to $29.6 million from $32.0 million, an 8% decline, primarily due to a decrease in Go Green assurance revenue[141]. Cost Management - Marketplace and service cost of revenue for Q2 2023 was $50,229,000, which is 40% of total revenue, compared to 43% in Q2 2022[120]. - The percentage of marketplace and service costs of revenue decreased to 40% from 43% year-over-year, indicating improved cost management[127]. - Marketplace and service cost of revenue (excluding depreciation & amortization) was $50.23 million, up from $49.89 million, reflecting a 1% increase[127]. - Marketplace and service cost of revenue for the six months ended June 30, 2023, was $97.8 million, a slight increase of 1% from $97.1 million in the prior year[142]. Depreciation and Amortization - Depreciation and amortization increased to $3.82 million from $2.48 million, a significant rise of 54% due to amortization of internal-use software costs[132]. - Depreciation and amortization expenses rose to $7.1 million from $4.9 million, a 46% increase, primarily due to amortization of internal-use software costs[147]. Taxation - The effective tax rate for the six months ended June 30, 2023, was approximately 1%, consistent with the prior year[150]. COVID-19 and Supply Chain Impact - The company continues to monitor the impact of COVID-19 and supply chain issues on its operations and market conditions[106].

Financial Data and Key Metrics Changes - First quarter revenue reached $120 million, exceeding guidance by $10 million and reflecting a 16% year-over-year growth [6][15] - GMV was $2.4 billion, flat year-over-year, with a solid unit growth offset by an 8% decrease in GMV per unit due to declining wholesale vehicle prices [6][15] - Adjusted EBITDA loss was $6 million, which was better than guidance, with EBITDA margin improving approximately 1,200 basis points year-over-year [15][19] Business Line Data and Key Metrics Changes - Auction and Assurance revenue, accounting for 57% of total revenue, increased by 17% year-over-year, driven by 8% unit growth and record ARPU of $454 [16] - Marketplace Services revenue, making up 36% of total revenue, also grew by 17% year-over-year, supported by strong performance in ACV Transport and ACV Capital [16] - ACV Transport achieved revenue margins in the mid-teens, significantly ahead of the 2026 target of 15% [9][17] Market Data and Key Metrics Changes - The new light vehicle SAAR increased by 8% year-over-year, marking the third consecutive quarter of growth, although still about 12% below pre-pandemic levels [7] - The used vehicle retail sales increased quarter-over-quarter but were down in the mid-single digits year-over-year, indicating affordability issues impacting demand [7][8] Company Strategy and Development Direction - The company focuses on three pillars for long-term shareholder value: growth, innovation, and scale [7][11] - The strategy includes expanding market share, enhancing technology capabilities, and driving operational efficiencies [5][11] - The company aims to achieve $1.3 billion in revenue and $325 million in adjusted EBITDA by 2026, with a 25% adjusted EBITDA margin [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in moderating industry headwinds and anticipates continued market share gains [5][20] - The company raised its revenue guidance for the full year 2023 to a range of $468 million to $478 million, representing an 11% to 13% year-over-year growth [19][20] - Management noted that new vehicle supply is expected to improve as production and inventory recover throughout the year [20] Other Important Information - The company ended Q1 with $526 million in cash and equivalents, and $96 million in long-term debt [18] - Cash flow from operations was $43 million, a significant improvement from a $31 million loss in Q1 2022 [19] Q&A Session Summary Question: Volume growth performance - Management indicated that the 8% growth in units was due to both new customer acquisitions and increased listings from existing dealers [26][27] Question: Cost efficiencies and savings - Management highlighted that technology investments in transportation and improved auction formats have led to better pricing and efficiency, contributing to cost savings [31][32] Question: Conversion rates expectations - Management expects conversion rates to normalize throughout the year, starting higher in Q1 and moderating down [38][39] Question: EBITDA guidance changes - Management clarified that the increase in EBITDA guidance reflects cautious optimism and the potential for additional investments if ROI is favorable [42][45] Question: Auction formats and higher-priced vehicles - Management noted that longer auction times have positively impacted market share for higher-priced vehicles, with ongoing testing of various auction formats [48][50] Question: ACV Capital opportunity amid market changes - Management stated that despite regional banks pulling back on floor plans, ACV Capital continues to grow, with a focus on managing risk effectively [54][55] Question: Territory expansion and adjacent markets - Management confirmed that they are well-staffed for territory expansion and are focusing on growing the commercial wholesale segment [81][83]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-40256 ACV Auctions Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 47-2415221 (State o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-40256 ACV Auctions Inc. (Exact name of Registrant as specified in its Charter) Delaware 47-2415221 (State or other jurisdiction of (I ...