ACV Auctions(ACVA) - 2024 Q3 - Quarterly Results

Financial Performance - Third quarter revenue reached $171 million, representing a 44% year-over-year increase[4] - Adjusted EBITDA for the third quarter was $11 million, compared to a loss of $4 million in the same quarter of 2023[4] - Non-GAAP net income for the third quarter was $8 million, a significant improvement from a loss of $3 million in the prior year[4] - Total revenue for the three months ended September 30, 2024, was $171,329,000, representing a 43.9% increase from $119,014,000 in the same period of 2023[25] - Marketplace and service revenue increased to $155,908,000 for the three months ended September 30, 2024, up 49.2% from $104,537,000 year-over-year[25] - Net loss for the nine months ended September 30, 2024, was $53,563,000, compared to a net loss of $52,020,000 for the same period in 2023[28] - Adjusted EBITDA for Q3 2024 was $11,170, compared to a loss of $3,693 in Q3 2023, showing a significant improvement[30] - Net income for Q3 2024 was a loss of $16,029, while the loss for Q3 2023 was $18,238, indicating a reduction in losses[30] - Non-GAAP net income guidance for Q4 2024 is projected to be between a loss of $27 million and a loss of $25 million[32] - Non-GAAP net income for FY24 is expected to range from $8 million to $10 million, indicating a potential turnaround[32] Revenue Guidance - The company expects full-year 2024 revenue to be between $630 million and $634 million, indicating a growth of 31% to 32% year-over-year[1] - Fourth quarter revenue guidance is projected to be between $152 million and $156 million, an increase of 28% to 32% year-over-year[5] Market Performance - The marketplace GMV was $2.5 billion, reflecting a 17% year-over-year growth[4] - The dealer wholesale market is anticipated to remain approximately flat year-over-year in 2024[5] - The company is experiencing continued margin expansion and gaining market share[2] Expenses and Assets - Total operating expenses for the three months ended September 30, 2024, were $188,468,000, a 33.4% increase from $141,301,000 in the same period of 2023[25] - Cash and cash equivalents increased to $252,524,000 as of September 30, 2024, up from $182,571,000 at the end of 2023[27] - Total assets grew to $1,034,353,000 as of September 30, 2024, compared to $922,924,000 at the end of 2023, reflecting a 12.1% increase[27] - The company’s long-term debt remained stable at $115,000,000 as of September 30, 2024[27] Costs and Expenses - Stock-based compensation increased to $18,260 in Q3 2024 from $12,855 in Q3 2023, reflecting higher employee compensation costs[30] - Acquisition-related costs for Q3 2024 were $214, up from $88 in Q3 2023, suggesting increased investment in acquisitions[30] - Depreciation and amortization expenses for Q3 2024 were $9,769, compared to $5,087 in Q3 2023, indicating higher asset depreciation[30] - Interest expense decreased to $(973) in Q3 2024 from $(4,050) in Q3 2023, reflecting improved interest management[30] - Provision for income taxes was $(137) in Q3 2024, compared to $1 in Q3 2023, indicating a shift in tax liabilities[30] - Litigation-related costs were not included in adjusted EBITDA, with $1,553 incurred in the nine months ended September 30, 2023, suggesting ongoing legal challenges[30] Impact of External Factors - Recent hurricanes are estimated to negatively impact revenue by approximately $2 million in the fourth quarter[5] - The weighted-average shares outstanding increased to 165,723,168 for the three months ended September 30, 2024, compared to 160,427,987 in the same period of 2023[25]