NYSE$ACVA

ACV Auctions Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

ACV Auctions reported third quarter results, demonstrating revenue growth and margin improvement.

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.

Headline financials

Total Revenue

$105M

Previous: $91.8M+14.8%
EPS (adj)

-$0.15

Previous: -$0.16+6.3%
Adjusted EBITDA

-$12M

Previous: -$12M+0.0%
Marketplace GMV

$2.1B

Previous: $2.1B+0.0%
Marketplace Units

133.2K

Previous: 133.2K+0.0%
Capital Expenditures

-$2.65M

Previous: -$2.2M-20.7%
Free Cash Flow

-$26.3M

Previous: -$27M+2.5%
Net Income

-$23.7M

Previous: -$24.8M+4.6%
Operating Income

-$25.1M

Previous: -$24.7M-1.8%
Gross Profit

$105M

Previous: $91.8M+14.8%
Cash & Equivalents

$295M

Previous: $602M-51.0%
Total Assets

$900M

Previous: $980M-8.2%
Stock-Based Comp

$9.59M

Previous: $9.79M-2.0%

Revenue & EPS history

ACV Auctions · Revenue · Quarterly

$105M

Q3 2022+14.8%vs Q3 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

ACV Auctions · $105M total across 2 segments · Q3 2022

  • Marketplace and Service
    $90.9M+14.6%
  • Customer Assurance
    $14.6M+16.6%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q3 2022

Historical avgQ3 2022

+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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