NYSE$ACVA

ACV Auctions Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

ACV Auctions reported Q4 2023 earnings, demonstrating revenue growth and exceeding Adjusted EBITDA guidance.

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.

Headline financials

Total Revenue

$118M

Previous: $98M+20.8%
EPS (adj)

-$0.14

Previous: -$0.15+6.7%
Adjusted EBITDA

-$5M

No prior period
Marketplace GMV

$1.8B

Previous: $1.8B+0.0%
Marketplace Units

144.0K

Previous: 124.8K+15.4%
Capital Expenditures

-$7.33M

Previous: $559K-1411.8%
Net Income

-$23.2M

Previous: -$24.5M+5.2%
Operating Income

-$26.8M

Previous: -$27.3M+1.9%
Gross Profit

$57.7M

Previous: $45.2M+27.9%
Stock-Based Comp

$13.4M

Previous: $13.4M-0.4%

Revenue & EPS history

ACV Auctions · Revenue · Quarterly

$118M

Q4 2023+20.8%vs Q4 2022
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; expects 2024 Adjusted EBITDA of $20 million to $25 million

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q4 2023

Historical avgQ4 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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