NYSE$ACVA

ACV Auctions Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$146M

Previous: $120M+21.8%
EPS

-$0.13

Previous: -$0.11-18.2%
Adjusted EBITDA

$4M

Previous: -$6M+166.7%
Marketplace GMV

$2.3B

Previous: $2.4B-4.2%
Marketplace Units

174.8K

Previous: 151.6K+15.3%
Capital Expenditures

-$1.08M

Previous: -$266K-304.1%
Free Cash Flow

-$21.5M

Previous: -$18.5M-16.7%
Net Income

-$20.5M

Previous: -$18.2M-12.5%
Operating Income

-$22.5M

Previous: -$20.8M-8.1%
Gross Profit

$146M

Previous: $120M+21.8%
Cash & Equivalents

$210M

Previous: $317M-33.8%
Total Assets

$1.04B

Previous: $995M+5.0%
Stock-Based Comp

$14.8M

Previous: $11.5M+28.9%

Revenue & EPS history

ACV Auctions · Revenue · Quarterly

$146M

Q1 2024+21.8%vs Q1 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

ACV Auctions · $119M total across 2 segments · Q3 2023

  • Marketplace and Service
    $105M+15.1%
  • Customer Assurance
    $14.5M-0.6%

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.

Tailwinds

  • 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.

Headwinds

  • 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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+3.7%

Avg return

Earnings day

+4.4%

Avg return

5 days after

+7.2%

Avg return

30 days after

50%

11 / 22 earnings

Positive

+23.9%

Q2 2022

Best reaction

-14.9%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.3%+13.0%+4.8%
Q4 2025-14.9%-14.4%-23.8%
Q3 2025+6.7%+7.9%+60.1%
Q1 2025+4.4%+7.7%+5.3%
Q4 2024-10.0%-20.3%-25.9%
Q3 2024+5.2%+8.2%+16.7%
Q2 2024+19.6%+17.4%+20.3%
Q1 2024-1.6%-2.0%+0.4%
Q4 2023+16.9%+16.7%+36.4%
Q3 2023-3.7%-4.6%-1.7%
Q2 2023+0.7%-4.0%+0.4%
Q1 2023+22.5%+26.5%+31.0%
Q4 2022+20.5%+15.9%+18.5%
Q3 2022+19.1%+23.2%+26.5%
Q2 2022+23.9%+23.8%+35.2%
Q1 2022-7.1%-4.5%-18.1%
Q4 2021+11.6%+12.7%+27.8%
Q3 2020-4.2%+3.3%-0.7%
Q3 2021-4.2%+3.3%-0.7%
Q2 2021-8.6%-11.9%-16.9%
Q4 2020-5.5%-10.3%-19.3%
Q1 2021-5.5%-10.3%-19.3%
Q2 2020
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019

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