Dealers see strong engagement with 85% of vehicles selling above the guaranteed offer and auctions attracting 35+ bids on averageBUFFALO, N.Y., Aug. 19, 2025 (GLOBE NEWSWIRE) -- ACV (NYSE: ACVA), the leading digital automotive marketplace and data services partner for dealers and commercial partners, has scaled up its popular No Reserve Sale to four days each week, giving dealers on both sides of the auction more opportunities than ever to sell and source inventory in true $0 reserve auctions. The expanded ...

Financial Data and Key Metrics Changes - Q2 revenue was $194 million, representing a 21% year-over-year growth, with 210,000 vehicles sold, marking a 13% increase despite market deceleration [7][19] - Adjusted EBITDA was $19 million, at the midpoint of guidance, with a margin improvement of 520 basis points year-over-year [20] - Non-GAAP net income was also at the midpoint of guidance, with a margin increase of 430 basis points year-over-year [20] Business Line Data and Key Metrics Changes - Auction and assurance revenue accounted for 57% of total revenue, growing 20% year-over-year, reflecting 13% unit growth and an average revenue per unit (ARPU) of $523, which grew 6% [20] - Marketplace services revenue comprised 39% of total revenue, growing 25% year-over-year, driven by record revenue for ACV Transport and ACV Capital [21] - SaaS and data services products made up 4% of total revenue, with revenue approximately flat year-over-year [21] Market Data and Key Metrics Changes - The company observed a 300 basis point year-over-year increase in trade retention rates, indicating dealers are keeping more vehicles for retail purposes [87] - The overall market conditions are expected to be flat to slightly down for the full year, influenced by macroeconomic factors [65][87] Company Strategy and Development Direction - The company is focused on three pillars: growth, innovation, and scale, leveraging AI across its suite of solutions to enhance dealer experiences and optimize pricing [8][14] - The company is expanding its total addressable market (TAM) and competitive moat through innovative product offerings and partnerships, including a new commercial platform [17][28] - The strategy includes maintaining adjusted EBITDA guidance while investing in long-term growth objectives, with a commitment to significant margin expansion [6][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong top-line growth of at least 20% year-over-year despite ongoing macroeconomic challenges [5][25] - The company trimmed its 2025 revenue guidance by $5 million at the midpoint, now expecting revenue in the range of $765 million to $775 million [25][102] - Management noted that conversion rates improved in July, indicating a potential recovery in market conditions [24][38] Other Important Information - The company ended Q2 with $305 million in cash and cash equivalents and marketable securities, alongside $187 million of debt [23] - The company is excited about the upcoming launch of its first greenfield location in Houston, Texas, as part of its commercial platform strategy [17][116] Q&A Session Summary Question: Clarification on unit growth headwind - Management clarified that the 500 basis point unit growth headwind was due to lower conversion rates than anticipated, not solely due to higher retention rates [31][34] Question: Competitive dynamics in the marketplace - Management indicated that the slight dip in conversion rates was consistent across the industry, with both macroeconomic factors and company initiatives contributing to the trends [37][39] Question: Progress on pricing engine and auction liquidity - Management reported significant progress in their pricing engine, with guaranteed sales accounting for 15% of units sold by the end of Q2, indicating strong auction liquidity [44][47] Question: Outlook on Amazon partnership and AI solutions - Management stated that while they are investing in partnerships and AI solutions, they do not expect material contributions to revenue this year, focusing instead on long-term benefits [55][57] Question: Organic growth rate excluding acquisitions - Management noted that the recent acquisition contributed about 1% to dealer unit growth in the quarter, with organic growth remaining strong [114] Question: Commercial opportunities and greenfield locations - Management expressed excitement about their greenfield strategy, with plans for additional locations and a focus on organic growth rather than acquisitions [116][120]

Core Insights - ACV reported record revenue and Adjusted EBITDA for Q2 2025, driven by market share gains and strong adoption of Marketplace Services despite challenging market conditions [2][3] - The dealer wholesale market experienced modest year-over-year growth, with a deceleration in growth reflecting weakening retail demand [3] - The company updated its revenue guidance to account for macroeconomic challenges while maintaining its Adjusted EBITDA guidance midpoint [3] Financial Performance - Q2 2025 revenue reached $194 million, a 21% increase year-over-year, with Marketplace and Service Revenue at $176 million, up 22% [5][6] - GAAP net loss for Q2 2025 was $7 million, compared to a loss of $17 million in Q2 2024, while non-GAAP net income was $12 million, up from $3 million [6][25] - Adjusted EBITDA for Q2 2025 was $19 million, compared to $7 million in Q2 2024 [6][30] Guidance - For Q3 2025, ACV expects total revenue between $198 million and $203 million, representing a 16% to 18% year-over-year increase [5][6] - Full-year 2025 revenue guidance is set at $765 million to $775 million, indicating a growth of 20% to 22% year-over-year [5][6] Market Metrics - Marketplace GMV for Q2 2025 was $2.7 billion, a 12% increase year-over-year, with Marketplace Units at 210,429, up 13% [6][20] - The dealer wholesale market is anticipated to be flat to modestly down year-over-year in 2025, with expected normal seasonal patterns for conversion rates and wholesale price depreciation [12]

RB Global (RBA) Q2 2025 Earnings Call August 06, 2025 04:30 PM ET Company ParticipantsSameer Rathod - VP - IR & Market IntelligenceJim Kessler - Director & CEOEric Guerin - CFOSabahat Khan - MD - Global ResearchKrista Friesen - Director - Equity ResearchMichael Feniger - MD - Equity ResearchMaxim Sytchev - MD & Research - Industrial ProductsConference Call ParticipantsSteve Hansen - MD & Equity Analyst - Transportation & AgribusinessCraig Kennison - Director - Research Operations & Senior Research AnalystOp ...

Financial Data and Key Metrics Changes - OpenLane reported consolidated revenues of $482 million, representing a 9% year-over-year growth [23] - Adjusted EBITDA for the quarter was $87 million, reflecting a 21% increase, with an adjusted EBITDA margin of 18%, showing a margin expansion of 190 basis points [24][25] - Adjusted free cash flow for the quarter was $87 million, achieving a conversion rate of 100% [25] Business Line Data and Key Metrics Changes - In the marketplace segment, total gross merchandise value (GMV) processed was $7.5 billion, a 10% increase, with dealer GMV growing by 32% while commercial GMV remained flat [26] - Auction fees in the marketplace grew by 24%, while service revenues decreased by 3% [27] - Adjusted EBITDA for the marketplace segment was $45 million, representing a 36% growth and an adjusted EBITDA margin of 12% [27] - The finance segment reported average outstanding receivables of $2.3 billion, up 4%, with adjusted EBITDA increasing by 9% to $42 million [28] Market Data and Key Metrics Changes - Dealer-to-dealer volumes increased by 21%, marking the third consecutive quarter of double-digit growth [6] - The company noted that 90% of its volume is from North America, with comparable growth rates in both the U.S. and Canada [44] Company Strategy and Development Direction - OpenLane's growth strategy focuses on making wholesale easy through enhancing marketplace offerings, technology, and customer experience [7][8] - The company aims to capture opportunities in the commercial vehicle market as off-lease volumes are expected to increase starting in 2026 [9][16] - OpenLane is committed to integrating its marketplace and finance businesses to accelerate growth [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic path, highlighting the transition to digital solutions in the industry and the expected recovery in commercial vehicle volumes [16] - The company raised its full-year guidance for adjusted EBITDA from $290 million - $310 million to $310 million - $320 million, reflecting strong performance in the first half of 2025 [31] Other Important Information - OpenLane ended the quarter with a cash balance of $119 million and a net debt position of zero after paying off $210 million in senior notes [29] - The company is focused on building its buyer network, with only 40% of AFC's dealers currently registered on the OpenLane marketplace, indicating significant growth potential [51] Q&A Session Summary Question: Impact of broader macro tariffs on dealer volumes - Management noted strong dealer volume growth of 21% year-over-year, attributing it to strategic execution and technology investments, with a small benefit from macro factors [37][41] Question: U.S. versus international growth - Management indicated comparable growth rates in both Canada and the U.S., with a stronger market position in Canada [44][45] Question: Selling capacity and its impact on P&L - Management highlighted the scalability of the business and the focus on building the buyer network after successful supply-side investments [46][50] Question: Second half guidance and market expectations - Management acknowledged uncertainty in the market but indicated a conservative approach to guidance, factoring in potential deceleration in growth [56][58] Question: Share gains and digital adoption - Management confirmed that share gains were higher than the industry average, with a noted increase in brand recognition among franchise dealers [67][70] Question: Pricing strategy relative to physical players - Management emphasized a high-value service at a reasonable price, with lower fees than most physical auctions, indicating long-term pricing opportunities [75][78] Question: Update on win-back customer onboarding - Management reported that the win-back project is on track for a launch by year-end, which could positively impact commercial volume growth in 2026 [104][105] Question: Series A preferred shares and potential options - Management acknowledged the upcoming conversion of preferred shares but did not provide specific plans, emphasizing a clean balance sheet and cash production [107][108]

OPENLANE (KAR) Q2 2025 Earnings Call August 06, 2025 08:30 AM ET Speaker0Good day, and welcome to OpenLane's Second Quarter twenty twenty five Earnings Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Itunu Orillaru. Please go ahead.Speaker1Good morning, everyone. Welcome to OpenLane's second quarter twenty twenty five earnings call. With me today are Peter Kelly, CEO of OpenLane and Brad Aaron, EVP and CFO of OpenL ...

Core Insights - Broad Arrow Auctions, a Hagerty company, is set to host its flagship Monterey Jet Center Auction on August 13-14, 2025, featuring a landmark 2005 Maserati MC12 Stradale with an estimated value of $4.8 million to $5.5 million [1][2] Auction Highlights - The auction will present 170 lots, showcasing a variety of highly desirable collector cars, including modern supercars, post-war classics, and JDM icons [4][5] - The Maserati MC12 Stradale is noted for its rarity, with only 50 units produced, and is based on the Ferrari Enzo, featuring a competition-purpose body and a powerful 6.0-liter V12 engine [2][3] Supercar Segment - Additional supercar highlights include: - 2008 Koenigsegg CCXR (Estimate: $2.75 million - $3.5 million) - 2018 Bugatti Chiron (Estimate: $3 million - $3.5 million) - 1991 Ferrari F40 (Estimate: $3.35 million - $3.5 million) - 1968 Lamborghini Miura P400 (Estimate: $2 million - $2.4 million) [6] Track Stars - The auction features notable racing cars, including a 1959 Porsche 718 RSK Spyder (Estimate: $3.5 million - $4 million), which has a rich racing history and is eligible for prestigious vintage racing events [7] JDM Icons - The auction highlights the growing market for Japanese Domestic Market collector cars, featuring a rare 1999 Nissan Skyline CRS GT-R V-Spec by NISMO (Estimate: $700,000 - $850,000) [8] Post-War Classics - Key post-war classic offerings include: - 1967 Ferrari 275 GTB/4 (Estimate: $2.5 million - $3 million) - 1965 Ferrari 275 GTB (Estimate: $2.5 million - $2.8 million) - 2009 Mercedes-Benz SLR McLaren Prototype "Stealth" (Estimate: $1 million - $1.25 million) [9][10] Event Details - The auction will take place at The Monterey Jet Center in California, coinciding with Motorlux, attracting thousands of collectors and enthusiasts [14]

Summary of Conference Call Company and Industry - The conference call pertains to the insurance and vehicle auction industry, specifically focusing on Copart, a leading provider in the vehicle auction market. Key Points and Arguments Insurance Business Performance - Global insurance volume remained relatively flat year-over-year, with a nominal decline of 0.3% in unit sales globally and 0.9% in the U.S. [1] - Adjusting for the extra business day in leap year 2024, global insurance and U.S. insurance units sold grew by 1.3% and 0.6% respectively [1] - Total loss frequency in the U.S. reached 22.8% in Q1 2025, up 100 basis points compared to the previous year [1] Economic Factors Affecting Insurance - Increasing vehicle complexity, rising parts prices, and labor rates are making vehicle repairs less economically attractive for clients in the insurance industry [2] - The economics of total loss are becoming more attractive, particularly in emerging economies where salvaged vehicles are essential for mobility [2] - The rate of uninsured and underinsured drivers has increased significantly over the past four years, impacting overall insurance volumes [2] Storm Season Preparedness - Anticipation of an active 2025 storm season, similar to 2024, has led to investments in real estate, infrastructure, and operational readiness [3] - Acquisition of Hall Ranch in South Florida provides nearly 400 usable acres for vehicle storage during storms, enhancing operational capacity [3] Financial Performance - Global revenue increased to $1.2 billion, with global service revenue up by over 9% year-over-year [5] - U.S. service revenue grew by 8%, while international service revenue increased by about 18% [5] - Gross profit for the U.S. was approximately $480 million, with a gross margin of about 48% [7] Inventory and Sales Trends - Global inventory decreased nearly 10% year-over-year, with U.S. inventory down approximately 11% [5] - U.S. insurance unit volume decreased close to 1% year-over-year, while non-insurance U.S. unit volume growth outpaced that of the U.S. insurance business [4] - International segment saw unit sales growth of 6% in the quarter [4] Challenges and Opportunities - Softness in the heavy equipment auction space due to uncertainty regarding infrastructure spending and tariffs [4] - Facility-related costs increased by $51 million, or about 12%, reflecting ongoing investments in operations [6] Legislative Impacts - Potential legislative actions could cap storage fees, benefiting Copart, while other actions could raise total loss thresholds, which may negatively impact the business model [19] Market Dynamics - Market share dynamics are influenced by the growth rates of individual insurance carriers served by Copart [14] - The pricing in auction markets is affected by local economies and the affordability of mobility solutions, with no significant impact observed from pending or enacted tariffs so far [15] Future Outlook - The cyclical nature of underinsured and uninsured motorists is expected to revert over time, impacting future volumes positively [3] - Continuous investment in technology and physical storage is seen as essential for enhancing operational capabilities and auction outcomes [3] Additional Important Content - The company emphasizes the importance of physical storage and logistics in its value proposition for sellers, particularly in the insurance sector [8] - The impact of tariffs on repair costs and total loss decisions is acknowledged, with ongoing uncertainty in trade policy affecting the business landscape [12][13]

Core Insights - Copart, Inc. (NASDAQ: CPRT) is recognized as a strong compounder with a competitive advantage derived from strategic yard acquisitions and investments in online auction technology [1] - The company has pioneered online auctions for junked cars, establishing significant network effects through an active and international platform [1] Company Strategy - The strategic focus on yard acquisitions has allowed Copart to enhance its operational capabilities and market presence [1] - Investments in online auction technology have positioned the company as a leader in the junked car auction space, facilitating a robust online marketplace [1] Market Position - Copart has built impressive network effects, which contribute to its competitive moat and long-term growth potential [1] - The company's innovative approach in the auction process has attracted a diverse customer base, further solidifying its market position [1]

Strategy and Mission - ACV's mission is to transform the automotive industry by building trusted and efficient marketplaces and data solutions for used vehicles [17] - ACV aims to maximize long-term shareholder value through growth, innovation, and scale [37] Market and Growth - ACV's total addressable market includes dealer wholesale (10M+ units), commercial wholesale (6M units), and data services (50M+ vehicles) [22] - ACV is focused on gaining dealer wholesale market share and executing on the commercial wholesale opportunity [36] - Major Account franchise sellers on ACV have increased 85% since 2020 [115] - ACV's territory expansion model focuses on regional penetration, with some territories achieving high franchise rooftop penetration, such as New Jersey Shore at 81% [98] Financial Targets and Performance - ACV projects revenue to reach $1.4 billion and adjusted EBITDA to reach $350 million in the mid-term [313] - ACV's 2024 revenue was approximately $637 million [20] - ACV achieved adjusted EBITDA profitability [20] - ACV's mid-term target assumes approximately 1.5 million units sold, with commercial wholesale comprising approximately 15% of the mix [324]