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Dec 31, 2023
ACV Auctions Q4 2023 Earnings Report
ACV Auctions reported Q4 2023 earnings, demonstrating revenue growth and exceeding Adjusted EBITDA guidance.
Key Takeaways
ACV Auctions reported strong fourth-quarter results with revenue in line with guidance and Adjusted EBITDA exceeding the guidance range. The company gained market share and experienced revenue growth.
Revenue of $118 million, an increase of 21% year over year.
Marketplace and Service Revenue of $104 million, an increase of 23% year over year.
Marketplace GMV of $1.8 billion, an increase of 6% year over year.
Adjusted EBITDA of ($5) million, compared to Adjusted EBITDA of ($13) million in the fourth quarter of 2022.
Revenue by Segment
Forward Guidance
ACV expects 2024 revenue of $610 million to $625 million, growth of 27% to 30% YoY; expects 2024 Adjusted EBITDA of $20 million to $25 million
Positive Outlook
- Dealer wholesale volumes are expected to grow modestly year over year, primarily due to improving new vehicle production, supply and retail sales.
- Conversion rates and wholesale price depreciation expected to follow normal seasonal patterns.
- Recently acquired Texas-based auction group is expected to contribute approximately 5% of annual revenue in 2024 and be accretive to full-year Adjusted EBITDA.
- Revenue growth is expected to outpace Non-GAAP Operating Expense growth (excluding Cost of Revenue and Depreciation and Amortization) by approximately 10 percentage points.
- First quarter non-GAAP net income guidance excludes approximately $14 million of stock-based compensation expense and approximately $2 million of intangible amortization.
Challenges Ahead
- Dealer wholesale volumes remain below historical levels.
- GAAP net income (loss) of ($15) to ($13) million for Q1 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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