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Mar 31, 2024
ACV Auctions Q1 2024 Earnings Report
ACV Auctions reported strong first quarter results with revenue at the high-end of guidance, year-over-year margin expansion, and Adjusted EBITDA at the high-end of guidance, resulting in their first profitable quarter as a public company, on a non-GAAP basis.
Key Takeaways
ACV Auctions announced its Q1 2024 results, demonstrating a 22% year-over-year revenue increase to $146 million. The company's Adjusted EBITDA reached $4 million, marking the first profitable quarter as a public company on a non-GAAP basis.
Revenue increased by 22% year-over-year, reaching $146 million.
Marketplace and Service Revenue grew by 24% year-over-year, totaling $130 million.
Marketplace GMV decreased by 4% year-over-year, amounting to $2.3 billion.
Marketplace Units increased by 15% year-over-year, reaching 174,631 units.
ACV Auctions
ACV Auctions
ACV Auctions Revenue by Segment
Revenue by Segment
Marketplace and Service Revenue
CapyFin.comCustomer Assurance Revenue
CapyFin.com Forward Guidance
ACV expects 2024 revenue of $610 million to $625 million, growth of 27% to 30% YoY, net income (loss) of ($85) million to ($80) million and Adjusted EBITDA of $20 million to $25 million.
Positive Outlook
- Dealer wholesale volumes are expected to improve modestly in the back-half of 2024, primarily due to increasing new vehicle supply and retail sales.
- Conversion rates and wholesale price depreciation expected to follow normal seasonal patterns.
- Revenue growth is expected to outpace Non-GAAP Operating Expense growth (excluding Cost of Revenue and Depreciation and Amortization) by approximately 10 percentage points.
- Second quarter non-GAAP net income guidance excludes approximately $18 million of stock-based compensation expense and approximately $3 million of intangible amortization.
- Full-year non-GAAP net income guidance excludes approximately $70 million of stock-based compensation expense and $10 million of intangible amortization.
Challenges Ahead
- GAAP net income (loss) of ($19) to ($17) million for Q2 2024.
- GAAP net income (loss) of ($85) to ($80) million for full year 2024.
- Dealer wholesale volumes remain below historical levels due to lower-than-normal new and used vehicle inventory, which is causing dealers to keep more trades for retail.
- Market headwinds will ease resulting in modest growth in dealer wholesale volumes in the back-half of 2024.
- The forward-looking statements are based on ACV’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties and changes in circumstances
Revenue & Expenses
Visualization of income flow from segment revenue to net income