ACV Auctions-ACV Announces Fourth Quarter and Full-Year 2024 Results

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]