• Q4 Revenue: $160 million, above guidance range.
• Full Year Revenue Growth: 32% increase.
• GMV: Nearly $10 billion transacted in 2024.
• Vehicles Sold: 183,000 in Q4 and 743,000 in 2024, 24% growth.
• Transportation Revenue Growth: Over 30% in 2024.
• Transportation Revenue Margin: Expanded 300 basis points in 2024.
• ACV Capital Revenue Growth: 26% for the full year.
• Q4 Revenue: $116 million, 35% year-over-year growth.
• Adjusted EBITDA: $6 million, margin improved 900 basis points year-over-year.
• Non-GAAP Net Income Margin: Increased approximately 400 basis points year-over-year.
• Auction and Insurance Revenue: 58% of total revenue, 40% year-over-year growth.
• Marketplace Services Revenue: 37% of total revenue, 31% year-over-year growth.
• SaaS and Data Services Growth: 10% year-over-year.
• Non-GAAP Cost of Revenue: Decreased approximately 400 basis points year-over-year.
• Cash and Cash Equivalents: $270 million at end of Q4.
• Debt: $123 million.
• Operating Cash Flow: $65 million for the full year.
• 2025 Q1 Revenue Guidance: $180 million to $185 million, 24% to 27% growth year-over-year.
• 2025 Full Year Revenue Guidance: $765 million to $785 million, 20% to 23% growth year-over-year.
• 2025 Adjusted EBITDA Guidance: $65 million to $75 million, approximately 150% growth year-over-year.

• Warning! GuruFocus has detected 4 Warning Signs with ACVA.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ACV Auctions Inc (NASDAQ:ACVA) achieved a 32% full year revenue growth and delivered its first full year of adjusted EBITDA profitability.
• The company gained significant market share in its Dealer Wholesale business, with over half of US dealers transacting on its marketplace.
• ACV Transport and ACV Capital reported record performance, contributing to over 30% revenue growth in transportation services.
• The company successfully leveraged AI to optimize pricing and enhance operational efficiency, resulting in a 300 basis point expansion in revenue margin for ACV Transport.
• ACV Auctions Inc (NASDAQ:ACVA) is focused on delivering strong top line growth and meaningful adjusted EBITDA expansion in 2025, with a revenue guidance range of $765 million to $785 million.

Negative Points

• The Used-vehicle market remains challenging, with inventory about 25% below normal levels and flat Dealer wholesale volumes in 2024.
• Consumer affordability issues continue to be a primary headwind for retail volume recovery, impacting the overall market outlook.
• The company assumes Dealer wholesale volumes will be approximately flat year-over-year for 2025, indicating a cautious market outlook.
• ACV Auctions Inc (NASDAQ:ACVA) faces competition from other marketplace companies and regional auctions, which could impact its market share gains.
• The company is cautious about the potential impact of new auto tariffs, which could affect new vehicle pricing and consumer affordability.

Q & A Highlights

Q: Can you discuss the market share gains embedded in your forecast and the balance between achieving EBITDA targets versus investing in the business? A: George Chamoun, CEO: We assume our market share gains will continue at the same pace, with a flattish wholesale market. We are focused on consistent execution and market share gains. Regarding EBITDA, we are investing in exciting product and technology developments, particularly in AI, while demonstrating strong EBITDA improvements. Bill Zerella, CFO: We are balancing investment with earnings growth, achieving 150% improvement in adjusted EBITDA on 22% revenue growth, and will continue to evaluate market conditions to guide our strategy.

Q: Why are you forecasting flat market volumes for 2025 despite reports of growth in dealer volumes? A: George Chamoun, CEO: We have a range in our forecast to account for potential market fluctuations. January was strong, but February showed mixed results. We believe it's prudent to predict down the middle, assuming a flattish market, given the mixed economic data and uncertainties like interest rates and tariffs.

Q: How do you view the competitive landscape, particularly with changes from power wholesalers like CarMax and Carvana? A: George Chamoun, CEO: We respect our competition but believe we have a broader value-added offering than anyone else. Our marketplace, transportation, capital, and pricing tools provide a comprehensive solution for dealers. We are confident in our position and continue to focus on delivering value to our partners.

Q: Can you elaborate on the advantages of your recon network and how it differs from incumbents? A: George Chamoun, CEO: Our recon network allows us to auction vehicles daily and provide data-driven insights to our commercial partners. We have developed technology to improve efficiency and condition reporting, and our marketplace's size and scope give us a broader reach than traditional local auctions.

Q: What is your strategy for pricing in the business, and how are competitors behaving? A: George Chamoun, CEO: Our fees are still slightly lower than competitors, giving us room for adjustments. Bill Zerella, CFO: Last year, our marketplace ARPU increased by 9% due to price increases, and we expect a lower percentage increase this year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.