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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.
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; 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.
- Non-GAAP net income of $0 to $2 million for Q1 2024.
- Adjusted EBITDA of $2 to $4 million for Q1 2024.
- Full-year non-GAAP net income guidance excludes approximately $58 million of stock-based compensation expense and $6 million of intangible amortization.
Revenue & Expenses
Visualization of income flow from segment revenue to net income