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Sep 30, 2022
ACV Auctions Q3 2022 Earnings Report
ACV Auctions reported third quarter results, demonstrating revenue growth and margin improvement.
Key Takeaways
ACV Auctions reported Q3 2022 results with revenue of $105 million, a 15% increase year-over-year. The company experienced a GAAP net loss of $24 million and an adjusted EBITDA loss of $12 million. They updated their 2022 guidance to reflect weakening consumer demand.
Revenue of $105 million, up 15% year over year.
Marketplace and Service revenue of $91 million, up 15% year over year.
Marketplace GMV of $2.1 billion, up approximately 6% year over year.
Marketplace Units of 133,165, down 5% year over year.
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 provided guidance for the fourth quarter of 2022, expecting total revenue between $97 to $100 million and an Adjusted EBITDA loss of $15 to $17 million. They also provided full year 2022 guidance.
Positive Outlook
- Total revenue of $97 to $100 million is expected.
- Adjusted EBITDA loss of $15 to $17 million is expected.
- GAAP net loss of $31 to $33 million is expected.
- Non-GAAP net loss of $17 to $19 million is expected.
- Total revenue of $421 to $424 million, an increase of 17% to 18% year over year is expected.
Challenges Ahead
- Wholesale volumes are expected to remain constrained due to the ongoing automotive OEM production challenges and softening retail vehicle demand.
- Marketplace conversion rates are expected to remain at or below the lower-end of our historical range until seller and buyer price expectations converge to more normalized levels.
- Total non-GAAP operating expenses, excluding cost of revenue, are expected to grow approximately 24% year over year in 2022, and exclude approximately $40 million of stock-based compensation and $5 million of intangible amortization.
- Fourth quarter non-GAAP net loss excludes approximately $13 million of stock-based compensation and approximately $1 million of intangible amortization.
- Adjusted EBITDA loss of $59 to $61 million is expected.
Revenue & Expenses
Visualization of income flow from segment revenue to net income