NYSE$ACVA

ACV Auctions Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported record revenue with Adjusted EBITDA ahead of guidance and raised 2023 guidance.

ACV Auctions announced strong second quarter results with revenue above guidance, year-over-year margin expansion, and Adjusted EBITDA exceeding guidance. The company reported record revenue and raised full-year guidance, reflecting strong second quarter performance.

  • Second quarter revenue was $124 million, up 8% year over year.
  • Second quarter GAAP net income (loss) was ($16) million.
  • Second quarter Adjusted EBITDA was ($4) million.
  • 2023 guidance was updated with revenue of $474 million to $482 million, representing growth of 12% to 14% YoY.

Headline financials

Total Revenue

$124M

Previous: $115M+7.9%
EPS (adj)

-$0.01

Previous: -$0.16+93.8%
Adjusted EBITDA

-$4M

Previous: -$14.1M+71.6%
Marketplace GMV

$2.5B

Previous: $2.7B-7.4%
Marketplace Units

153.1K

Previous: 148.0K+3.4%
Capital Expenditures

-$880K

Previous: -$1.81M+51.4%
Free Cash Flow

-$16.5M

Previous: -$26.3M+37.5%
Net Income

-$15.6M

Previous: -$24.5M+36.4%
Operating Income

-$19.8M

Previous: -$24.7M+20.0%
Gross Profit

$124M

Previous: $115M+7.9%
Cash & Equivalents

$272M

Previous: $304M-10.5%
Total Assets

$936M

Previous: $977M-4.2%
Stock-Based Comp

$11.9M

Previous: $8.74M+36.1%

Revenue & EPS history

ACV Auctions · Revenue · Quarterly

$124M

Q2 2023+7.9%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

ACV Auctions · $124M total across 2 segments · Q2 2023

  • Marketplace and Service
    $109M+11.9%
  • Customer Assurance
    $14.9M-14.2%

Forward guidance

ACV is providing the following guidance: Third quarter of 2023: Total revenue of $115 to $119 million, an increase of 9% to 13% year over year GAAP net income (loss) of ($23) to ($25) million Non-GAAP net income (loss) of ($7) to ($9) million Adjusted EBITDA of ($8) to ($10) million Full-Year 2023: Total revenue of $474 to $482 million, an increase of 12% to 14% year over year GAAP net income (loss) of ($79) to ($83) million Non-GAAP net income (loss) of ($19) to ($23) million Adjusted EBITDA of ($23) to ($27) million

Tailwinds

  • Vehicle supply is expected to improve as new vehicle production and inventory recover.
  • Conversion rates are expected to follow normal seasonal patterns.
  • Wholesale price depreciation is expected to continue.
  • Third quarter non-GAAP net income (loss) guidance excludes approximately $15 million of stock-based compensation expense and approximately $1 million of intangible amortization.
  • Full-year non-GAAP net income (loss) guidance excludes approximately $53 million of stock-based compensation expense and $6 million of intangible amortization.

Headwinds

  • Vehicle supply remains lower than historical levels.
  • GAAP net income (loss) of ($23) to ($25) million
  • Non-GAAP net income (loss) of ($7) to ($9) million
  • Adjusted EBITDA of ($8) to ($10) million
  • GAAP net income (loss) of ($79) to ($83) million

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 Q2 2023

Historical avgQ2 2023

+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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