ACV Announces Second Quarter 2024 Results
ACV (ACVA) reported strong second quarter 2024 results, with revenue of $161 million, a 29% year-over-year increase, exceeding the high-end of guidance. Marketplace and Service Revenue grew 32% to $144 million. Despite a 1% decrease in Marketplace GMV to $2.4 billion, Marketplace Units increased by 22% to 186,526. The company reported a GAAP net loss of $17 million but achieved non-GAAP net income of $3 million and Adjusted EBITDA of $7 million.
For the full-year 2024, ACV expects revenue between $615-$625 million, representing 28-30% growth year-over-year. The company anticipates a GAAP net loss of $80-$85 million but projects non-GAAP net income of $3-$8 million and Adjusted EBITDA of $21-$25 million. ACV's guidance assumes modest improvement in dealer wholesale volumes and normal seasonal patterns in conversion rates and wholesale price depreciation.
ACV (ACVA) ha riportato risultati forti per il secondo trimestre del 2024, con un fatturato di 161 milioni di dollari, un aumento del 29% rispetto all'anno precedente, superando la parte alta della previsione. I Ricavi da Marketplace e Servizi sono cresciuti del 32% raggiungendo 144 milioni di dollari. Nonostante una diminuzione dell'1% nel GMV del Marketplace a 2,4 miliardi di dollari, le Unità del Marketplace sono aumentate del 22% a 186.526. L'azienda ha riportato una perdita netta secondo GAAP di 17 milioni di dollari, ma ha raggiunto un reddito netto non-GAAP di 3 milioni di dollari e un EBITDA rettificato di 7 milioni di dollari.
Per l'intero anno 2024, ACV prevede un fatturato tra 615 e 625 milioni di dollari, rappresentando una crescita del 28-30% rispetto all'anno precedente. L'azienda prevede una perdita netta secondo GAAP tra 80 e 85 milioni di dollari, ma prevede un reddito netto non-GAAP tra 3 e 8 milioni di dollari e un EBITDA rettificato tra 21 e 25 milioni di dollari. Le previsioni di ACV assumono un modesto miglioramento nei volumi all'ingrosso dei concessionari e normali modelli stagionali nei tassi di conversione e nella svalutazione dei prezzi all'ingrosso.
ACV (ACVA) reportó resultados sólidos en el segundo trimestre de 2024, con ingresos de 161 millones de dólares, un incremento del 29% en comparación con el año anterior, superando la parte alta de la guía. Los Ingresos del Marketplace y Servicios crecieron un 32% alcanzando 144 millones de dólares. A pesar de una disminución del 1% en el GMV del Marketplace a 2.4 mil millones de dólares, las Unidades del Marketplace aumentaron un 22% alcanzando 186,526. La compañía reportó una pérdida neta GAAP de 17 millones de dólares, pero logró un ingreso neto no-GAAP de 3 millones de dólares y un EBITDA ajustado de 7 millones de dólares.
Para el año completo 2024, ACV espera ingresos entre 615 y 625 millones de dólares, representando un crecimiento del 28-30% en comparación con el año anterior. La compañía anticipa una pérdida neta GAAP de 80 a 85 millones de dólares, pero proyecta un ingreso neto no-GAAP de 3 a 8 millones de dólares y un EBITDA ajustado de 21 a 25 millones de dólares. La guía de ACV asume una mejora modesta en los volúmenes de mayorista de concesionarios y patrones estacionales normales en las tasas de conversión y la depreciación de precios mayoristas.
ACV (ACVA)는 2024년 2분기에 1억 6100만 달러의 매출을 기록하며 강력한 실적을 보고하였으며, 이는 전년 대비 29% 증가하여 가이드라인의 상단을 초과했습니다. 마켓플레이스 및 서비스 수익은 32% 증가하여 1억 4400만 달러에 달했습니다. 마켓플레이스의 GMV는 24억 달러로 1% 감소했지만, 마켓플레이스 유닛 수는 22% 증가하여 186,526개에 도달했습니다. 회사는 GAAP 기준으로 1700만 달러의 순손실을 보고했으나, 비GAAP 기준으로는 300만 달러의 순이익과 700만 달러의 조정 EBITDA를 달성했습니다.
2024년 전체에 대해서는 ACV가 6억 1500만 달러에서 6억 2500만 달러 사이의 매출을 예상하며, 이는 전년 대비 28-30% 성장할 것으로 보입니다. 회사는 GAAP 기준으로 8000만 달러에서 8500만 달러의 순손실을 예상하지만, 비GAAP 기준으로는 300만 달러에서 800만 달러의 순이익과 2100만 달러에서 2500만 달러의 조정 EBITDA를 예상하고 있습니다. ACV의 가이드는 딜러 도매 물량의 소폭 증가와 정상적인 계절적 패턴의 전환율 및 도매 가격 하락을 가정하고 있습니다.
ACV (ACVA) a reporté de solides résultats pour le deuxième trimestre 2024, avec un chiffre d'affaires de 161 millions de dollars, soit une augmentation de 29% par rapport à l'année précédente, dépassant la limite supérieure des prévisions. Les revenus du Marketplace et des services ont augmenté de 32%, atteignant 144 millions de dollars. Malgré une baisse de 1% du GMV du Marketplace à 2,4 milliards de dollars, le nombre d'unités du Marketplace a augmenté de 22%, atteignant 186 526. L'entreprise a déclaré une perte nette GAAP de 17 millions de dollars, mais a réalisé un revenu net non-GAAP de 3 millions de dollars et un EBITDA ajusté de 7 millions de dollars.
Pour l'année entière 2024, ACV prévoit un chiffre d'affaires compris entre 615 et 625 millions de dollars, représentant une croissance de 28 à 30% par rapport à l'année précédente. L'entreprise anticipe une perte nette GAAP de 80 à 85 millions de dollars, mais prévoit un revenu net non-GAAP de 3 à 8 millions de dollars et un EBITDA ajusté de 21 à 25 millions de dollars. Les prévisions d'ACV supposent une amélioration modeste des volumes de gros des concessionnaires et des schémas saisonniers normaux des taux de conversion et de la dépréciation des prix de gros.
ACV (ACVA) hat für das zweite Quartal 2024 starke Ergebnisse gemeldet, mit einem Umsatz von 161 Millionen Dollar, was einem Anstieg von 29% im Vergleich zum Vorjahr entspricht und die obere Grenze der Prognose übersteigt. Marktplatz- und Dienstleistungsumsätze stiegen um 32% auf 144 Millionen Dollar. Trotz eines Rückgangs des GMV im Marktplatz um 1% auf 2,4 Milliarden Dollar stieg die Anzahl der Marktplatz-Einheiten um 22% auf 186.526. Das Unternehmen berichtete von einem GAAP-Nettoverlust von 17 Millionen Dollar, erzielte jedoch ein Nicht-GAAP-Nettoeinkommen von 3 Millionen Dollar sowie ein bereinigtes EBITDA von 7 Millionen Dollar.
Für das Gesamtjahr 2024 erwartet ACV einen Umsatz zwischen 615 und 625 Millionen Dollar, was einem Wachstum von 28-30% im Vergleich zum Vorjahr entspricht. Das Unternehmen rechnet mit einem GAAP-Nettoverlust von 80-85 Millionen Dollar, prognostiziert jedoch ein Nicht-GAAP-Nettoeinkommen von 3-8 Millionen Dollar und ein bereinigtes EBITDA von 21-25 Millionen Dollar. Die Prognose von ACV geht von einer moderaten Verbesserung der Großhandelsvolumina der Händler und normalen saisonalen Mustern bei den Konversionsraten und der Abwertung der Großhandelspreise aus.
- Revenue growth of 29% year-over-year, exceeding high-end of guidance
- Marketplace and Service Revenue increased 32% year-over-year
- Marketplace Units grew 22% year-over-year
- Achieved non-GAAP net income of $3 million, compared to a loss in Q2 2023
- Adjusted EBITDA improved to $7 million from -$4 million in Q2 2023
- Full-year 2024 guidance projects 28-30% revenue growth
- GAAP net loss of $17 million in Q2 2024
- Marketplace GMV decreased 1% year-over-year
- Projected GAAP net loss of $80-$85 million for full-year 2024
- Dealer wholesale volumes remain below historical levels
Insights
ACV's Q2 2024 results demonstrate strong performance, with revenue of
Notably, ACV achieved non-GAAP profitability with
While dealer wholesale volumes remain below historical levels, ACV's market share gains and broadening suite of dealer solutions position it well for future growth as the market recovers.
ACV's Q2 results reflect resilience in a challenging auto market. Despite soft retail sales and used vehicle inventory shortages, ACV managed to increase Marketplace Units by
The company's guidance indicates confidence in market recovery, particularly in H2 2024. Key factors include:
- Improving new-vehicle supply
- Increasing retail sales
- Expected normalization of conversion rates and wholesale price depreciation
ACV's Q2 performance underscores the strength of its digital marketplace model in the automotive sector. The
Key technological aspects to note:
- Broadening suite of dealer solutions: Suggests ongoing innovation and feature expansion
- Commercial wholesale strategy: Indicates potential for new revenue streams and market expansion
- Scalable business model: Evident from improving margins and Adjusted EBITDA
Revenue Growth of
- Second quarter revenue of
$161 million - Second quarter GAAP net income (loss) of (
$17) million - Second quarter non-GAAP net income of
$3 million - Second quarter Adjusted EBITDA of
$7 million - Expects 2024 revenue of
$615 million to$625 million , growth of28% to30% YoY, GAAP net income (loss) of ($85) million to ($80) million and Adjusted EBITDA of$21 million to$25 million
BUFFALO, N.Y., Aug. 07, 2024 (GLOBE NEWSWIRE) -- ACV (Nasdaq: ACVA), a leading digital automotive marketplace and data services partner for dealers and commercial clients, today reported results for its second quarter ended June 30, 2024.
“We are very pleased with our second quarter results, delivering revenue above the high-end of our guidance range, continued margin expansion, and strong sequential growth in Adjusted EBITDA,” said George Chamoun, CEO of ACV.
“Our strong market position resulted in continued share gains and accelerated revenue growth in the quarter. The adoption of our growing suite of dealer solutions has continued to broaden and we have executed initiatives to support our commercial wholesale strategy. We achieved this while further increasing our margins,” continued Chamoun.
“Dealer wholesale volumes remained below historical levels due to a combination of soft retail sales and the ongoing shortage of used vehicle inventory. However, there were some early signs of improvement in the broader automotive ecosystem, and we believe the dealer wholesale market will continue to recover in the back-half of 2024. We believe ACV remains well positioned to deliver sustainable growth as end-markets further recover, and we execute on our emerging commercial wholesale strategy, while also continuing to scale our business model,” concluded Chamoun.
Second Quarter 2024 Highlights
- Revenue of
$161 million , an increase of29% year over year - Marketplace and Service Revenue of
$144 million , an increase of32% year over year - Marketplace GMV of
$2.4 billion , a decrease of1% year over year - Marketplace Units of 186,526, an increase of
22% year over year - GAAP net income (loss) of (
$17) million , compared to GAAP net income (loss) of ($16) million in the second quarter of 2023. - Non-GAAP net income of
$3 million , compared to non-GAAP net income (loss) of ($2) million in the second quarter of 2023. - Adjusted EBITDA of
$7 million , compared to Adjusted EBITDA of ($4) million in the second quarter of 2023.
Third Quarter and Full-Year 2024 Guidance
Based on information as of today, ACV is providing the following guidance:
- Third Quarter of 2024:
- Total revenue of
$158 million to$162 million , an increase of33% to36% year over year - GAAP net income (loss) of (
$22) million to ($20) million - Non-GAAP net income of
$1 million to$3 million - Adjusted EBITDA of
$6 million to$8 million
- Total revenue of
- Full-Year 2024:
- Total revenue of
$615 million to$625 million , an increase of28% to30% year over year - GAAP net income (loss) of (
$85) million to ($80) million - Non-GAAP net income of
$3 million to$8 million - Adjusted EBITDA of
$21 million to$25 million
- Total revenue of
Our financial guidance includes the following assumptions:
- Dealer wholesale volumes are expected to continue to modestly improve 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.
- Third quarter non-GAAP net income guidance excludes approximately
$19 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.
ACV’s Second Quarter Results Conference Call
ACV will host a conference call and live webcast today, August 7, 2024, at 5:00 p.m. ET to discuss the financial results. To access the live conference call participants are invited to dial 877-704-4453 (international callers please dial 1-201-389-0920) approximately 10 minutes prior to the start of the call. A live webcast and replay of the call will be available on the Company’s investor relations website at https://investors.acvauto.com/. Participants are encouraged to join the webcast unless asking a question.
About ACV Auctions
ACV is on a mission to transform the automotive industry by building the most trusted and efficient digital marketplace and data solutions for sourcing, selling and managing used vehicles with transparency and comprehensive insights that were once unimaginable. ACV offerings include ACV Auctions, ACV Transportation, ACV Capital, ACV MAX, True360, and ClearCar.
For more information about ACV, visit www.acvauto.com.
Information About Non-GAAP Financial Measures
ACV provides supplemental non-GAAP financial measures to its financial results. We use these non-GAAP financial measures, and we believe that they assist our investors to make period-to-period comparisons of our operating performance because they provide a view of our operating results without items that are not, in our view, indicative of our operating results. These non-GAAP financial measures should not be construed as an alternative to GAAP results as the items excluded from the non-GAAP financial measures often have a material impact on our operating results, certain of those items are recurring, and others often recur. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results.
Non-GAAP Financial Measures
Adjusted EBITDA is a financial measure that is not presented in accordance with GAAP. We believe that Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes.
We define Adjusted EBITDA as net loss, adjusted to exclude: depreciation and amortization; stock-based compensation expense; interest (income) expense; provision for income taxes; and other one-time non-recurring items, when applicable, such as acquisition-related and restructuring expenses.
Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of these limitations include that (1) it does not properly reflect capital commitments to be paid in the future; (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures; (3) it does not consider the impact of stock-based compensation expense, (4) it does not reflect other non-operating income and expenses, including interest income and expense, (5) it does not consider the impact of any contingent consideration liability valuation adjustments, (6) it does not reflect tax payments that may represent a reduction in cash available to us, and (7) it does not reflect other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA alongside other financial measures, including our net loss and other results stated in accordance with GAAP.
Non-GAAP net income (loss), a financial measure that is not presented in accordance with GAAP, provides investors with additional useful information to measure operating performance and current and future liquidity when taken together with our financial results presented in accordance with GAAP. By providing this information, we believe management and the users of the financial statements are better able to understand the financial results of what we consider to be our continuing operations.
We define non-GAAP net income (loss) as net income (loss), adjusted to exclude: stock-based compensation expense, amortization of acquired intangible assets, and other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses.
In the calculation of non-GAAP net income (loss), we exclude stock-based compensation expense because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact our non-cash expense. We believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between our operating results from period to period.
We exclude amortization of acquired intangible assets from the calculation of non-GAAP net income (loss). We believe that excluding the impact of amortization of acquired intangible assets allows for more meaningful comparisons between operating results from period to period as the underlying intangible assets are valued at the time of acquisition and are amortized over several years after the acquisition.
We exclude contingent consideration liability valuation adjustments associated with the purchase consideration of transactions accounted for as business combinations. We also exclude certain other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses, because we do not consider such amounts to be part of our ongoing operations nor are they comparable to prior period nor predictive of future results.
Non-GAAP net income (loss) is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of these limitations include that: (1) it does not consider the impact of stock-based compensation expense; (2) although amortization is a non-cash charge, the underlying assets may need to be replaced and non-GAAP net income (loss) does not reflect these capital expenditures; (3) it does not consider the impact of any contingent consideration liability valuation adjustments; and (4) it does not consider the impact of other one-time charges, such as acquisition-related and restructuring expenses, which could be material to the results of our operations. In addition, our use of non-GAAP net income (loss) may not be comparable to similarly titled measures of other companies because they may not calculate non-GAAP net income (loss) in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider non-GAAP net income (loss) alongside other financial measures, including our net loss other results stated in accordance with GAAP.
Information About Operating and Financial Metrics
We regularly monitor the following operating and financial metrics in order to measure our current performance and estimate our future performance. Our key operating and financial metrics may be calculated in a manner different than similar business metrics used by other companies.
Operating and Financial Metrics
Marketplace GMV – Marketplace GMV is primarily driven by the volume and dollar value of Marketplace Unit transactions. We believe that Marketplace GMV acts as an indicator of our success, signaling satisfaction of dealers and buyers, and the health, scale, and growth of our business. We define Marketplace GMV as the total dollar value of vehicles transacted within the applicable period, excluding any auction and ancillary fees.
Marketplace Units – Marketplace Units is a key indicator of our potential for growth in Marketplace GMV and revenue. It demonstrates the overall engagement of our customers and our market share of wholesale transactions in the United States. We define Marketplace Units as the number of vehicles transacted within the applicable period. Marketplace Units transacted includes any vehicle that successfully reaches sold status, even if the auction is subsequently unwound, meaning the buyer or seller does not complete the transaction. These instances have been immaterial to date. Marketplace Units excludes vehicles that were inspected by ACV, but not sold. Marketplace Units have generally increased over time as we have expanded our territory coverage, added new dealer partners and increased our share of wholesale transactions from existing customers.
Forward-Looking Statements
This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning our financial guidance for the second quarter of 2024 and the full year of 2024. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions. You should not rely on forward-looking statements as predictions of future events.
The forward-looking statements contained in this presentation are based on ACV’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties and changes in circumstances that may cause ACV’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. These risks and uncertainties include, but are not limited to: (1) our history of operating losses; (2) our limited operating history; (3) our ability to effectively manage our growth; (4) our ability to grow the number of participants on our marketplace platform; (5) general market, political, economic, and business conditions; (6) our ability to acquire new customers and successfully retain existing customers; (7) our ability to effectively develop and expand our sales and marketing capabilities; (8) breaches in our security measures, unauthorized access to our marketplace platform, our data, or our customers’ or other users’ personal data; (9) risk of interruptions or performance problems associated with our products and platform capabilities; (10) our ability to adapt and respond to rapidly changing technology or customer needs; (11) our ability to compete effectively with existing competitors and new market entrants; (12) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business in the United States and other jurisdictions where we elect to do business; (13) the impact that economic conditions could have on our or our customers’ businesses, financial condition and results of operations; and (14) the impact of such economic conditions in the wholesale dealer market included in our guidance for the third quarter of 2024 and full year 2024, and the related impact on the performance of our marketplace and our operating expenses, stock-based compensation expense and intangible amortization. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in the section entitled “Risk Factors” in our Form 10-K for the year ended December 31, 2023, filed with the SEC on February 21, 2024. Additional information will be made available in other filings and reports that we may file from time to time with the SEC. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law.
Investor Contact:
Tim Fox
tfox@acvauctions.com
Media Contact:
Maura Duggan
mduggan@acvauctions.com
| ACV AUCTIONS INC. | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue: | ||||||||||||||||
| Marketplace and service revenue | $ | 144,126 | $ | 109,360 | $ | 273,940 | $ | 214,223 | ||||||||
| Customer assurance revenue | 16,498 | 14,857 | 32,373 | 29,620 | ||||||||||||
| Total revenue | 160,624 | 124,217 | 306,313 | 243,843 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Marketplace and service cost of revenue (excluding depreciation & amortization) | 64,253 | 50,229 | 119,946 | 97,804 | ||||||||||||
| Customer assurance cost of revenue (excluding depreciation & amortization) | 14,558 | 13,474 | 27,372 | 25,617 | ||||||||||||
| Operations and technology | 39,694 | 35,303 | 77,763 | 71,048 | ||||||||||||
| Selling, general, and administrative | 51,912 | 41,180 | 105,765 | 82,892 | ||||||||||||
| Depreciation and amortization | 8,848 | 3,821 | 16,635 | 7,106 | ||||||||||||
| Total operating expenses | 179,265 | 144,007 | 347,481 | 284,467 | ||||||||||||
| Loss from operations | (18,641 | ) | (19,790 | ) | (41,168 | ) | (40,624 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 2,329 | 4,720 | 5,360 | 8,016 | ||||||||||||
| Interest expense | (606 | ) | (451 | ) | (1,141 | ) | (766 | ) | ||||||||
| Total other income (expense) | 1,723 | 4,269 | 4,219 | 7,250 | ||||||||||||
| Loss before income taxes | (16,918 | ) | (15,521 | ) | (36,949 | ) | (33,374 | ) | ||||||||
| Provision for income taxes | 145 | 61 | 585 | 408 | ||||||||||||
| Net loss | $ | (17,063 | ) | $ | (15,582 | ) | $ | (37,534 | ) | $ | (33,782 | ) | ||||
| Weighted-average shares – basic and diluted | 164,383,588 | 159,463,851 | 163,636,615 | 159,090,377 | ||||||||||||
| Net loss per share – basic and diluted | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.23 | ) | $ | (0.21 | ) | ||||
| ACV AUCTIONS INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| (in thousands, except share data) | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 214,972 | $ | 182,571 | ||||
| Marketable securities | 57,675 | 228,761 | ||||||
| Trade receivables (net of allowance of | 208,560 | 164,009 | ||||||
| Finance receivables (net of allowance of | 120,936 | 119,034 | ||||||
| Other current assets | 11,941 | 12,524 | ||||||
| Total current assets | 614,084 | 706,899 | ||||||
| Property and equipment (net of accumulated depreciation of | 7,491 | 4,918 | ||||||
| Real estate held for sale | 14,100 | — | ||||||
| Goodwill | 175,883 | 103,379 | ||||||
| Acquired intangible assets (net of amortization of | 102,037 | 34,192 | ||||||
| Capitalized software (net of amortization of | 62,985 | 55,771 | ||||||
| Other assets | 34,267 | 17,765 | ||||||
| Total assets | $ | 1,010,847 | $ | 922,924 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 367,873 | $ | 305,845 | ||||
| Accrued payroll | 9,934 | 12,245 | ||||||
| Accrued other liabilities | 34,336 | 15,851 | ||||||
| Total current liabilities | 412,143 | 333,941 | ||||||
| Long-term debt | 110,000 | 115,000 | ||||||
| Other long-term liabilities | 31,087 | 17,455 | ||||||
| Total liabilities | 553,230 | 466,396 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Preferred Stock | — | — | ||||||
| Common Stock – Class A | 152 | 139 | ||||||
| Common Stock – Class B | 14 | 23 | ||||||
| Additional paid-in capital | 919,216 | 880,510 | ||||||
| Accumulated deficit | (460,149 | ) | (422,615 | ) | ||||
| Accumulated other comprehensive loss | (1,616 | ) | (1,529 | ) | ||||
| Total stockholders' equity | 457,617 | 456,528 | ||||||
| Total liabilities and stockholders' equity | $ | 1,010,847 | $ | 922,924 | ||||
| ACV AUCTIONS INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Unaudited) | ||||||||
| (in thousands) | ||||||||
| Six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net income (loss) | $ | (37,534 | ) | $ | (33,782 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 16,682 | 7,320 | ||||||
| Stock-based compensation expense, net of amounts capitalized | 29,794 | 23,407 | ||||||
| Provision for bad debt | 5,055 | 5,807 | ||||||
| Other non-cash, net | 119 | (575 | ) | |||||
| Changes in operating assets and liabilities, net of effects from purchases of businesses: | ||||||||
| Trade receivables | (19,158 | ) | 27,102 | |||||
| Other operating assets | 3,036 | 1,622 | ||||||
| Accounts payable | 37,641 | (9,075 | ) | |||||
| Other operating liabilities | 11,856 | 1,530 | ||||||
| Net cash provided by (used in) operating activities | 47,491 | 23,356 | ||||||
| Cash Flows from Investing Activities | ||||||||
| Net increase in finance receivables | (1,851 | ) | (22,265 | ) | ||||
| Purchases of property and equipment | (2,872 | ) | (880 | ) | ||||
| Capitalization of software costs | (14,855 | ) | (12,826 | ) | ||||
| Purchases of marketable securities | (21,607 | ) | (88,058 | ) | ||||
| Maturities and redemptions of marketable securities | 69,699 | 74,490 | ||||||
| Sales of marketable securities | 122,698 | 2,402 | ||||||
| Acquisition of businesses (net of cash acquired) | (155,209 | ) | (12,000 | ) | ||||
| Net cash provided by (used in) investing activities | (3,997 | ) | (59,137 | ) | ||||
| Cash Flows from Financing Activities | ||||||||
| Proceeds from long term debt | 340,000 | 200,000 | ||||||
| Payments towards long term debt | (345,000 | ) | (170,500 | ) | ||||
| Payment of debt issuances costs | (1,702 | ) | — | |||||
| Proceeds from exercise of stock options | 6,812 | 2,774 | ||||||
| Payment of RSU tax withholdings in exchange for common shares surrendered by RSU holders | (13,110 | ) | (6,635 | ) | ||||
| Proceeds from employee stock purchase plan | 1,998 | 1,330 | ||||||
| Other financing activities | (23 | ) | — | |||||
| Net cash provided by (used in) financing activities | (11,025 | ) | 26,969 | |||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (68 | ) | 7 | |||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 32,401 | (8,805 | ) | |||||
| Cash, cash equivalents, and restricted cash, beginning of period | 182,571 | 280,752 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 214,972 | $ | 271,947 | ||||
The following table presents a reconciliation of non-GAAP net income (loss) to net income (loss), the most directly comparable financial measure stated in accordance with GAAP, for the periods presented:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) | $ | (17,063 | ) | $ | (15,582 | ) | $ | (37,534 | ) | $ | (33,782 | ) | ||||
| Stock-based compensation | 14,965 | 11,902 | 29,794 | 23,407 | ||||||||||||
| Amortization of acquired intangible assets | 3,013 | 1,268 | 5,226 | 2,440 | ||||||||||||
| Amortization of capitalized stock based compensation | 980 | 248 | 1,908 | 525 | ||||||||||||
| Acquisition-related costs | 1,187 | 317 | 3,306 | 523 | ||||||||||||
| Litigation-related costs (1) | — | — | 1,553 | — | ||||||||||||
| Other | 145 | — | 189 | — | ||||||||||||
| Non-GAAP Net income (loss) | $ | 3,227 | $ | (1,847 | ) | $ | 4,442 | $ | (6,887 | ) | ||||||
| (1) Litigation-related costs are related to an anti-competition case which we do not consider to be representative of our underlying operating performance | ||||||||||||||||
The following table presents a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable financial measure stated in accordance with GAAP, for the periods presented:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Adjusted EBITDA Reconciliation | ||||||||||||||||
| Net income (loss) | $ | (17,063 | ) | $ | (15,582 | ) | $ | (37,534 | ) | $ | (33,782 | ) | ||||
| Depreciation and amortization | 8,880 | 3,928 | 16,682 | 7,320 | ||||||||||||
| Stock-based compensation | 14,965 | 11,902 | 29,794 | 23,407 | ||||||||||||
| Interest (income) expense | (1,723 | ) | (4,269 | ) | (4,219 | ) | (7,250 | ) | ||||||||
| Provision for income taxes | 145 | 61 | 585 | 408 | ||||||||||||
| Acquisition-related costs | 1,187 | 317 | 3,306 | 523 | ||||||||||||
| Litigation-related costs (1) | — | — | 1,553 | — | ||||||||||||
| Other | 687 | 121 | 1,180 | 218 | ||||||||||||
| Adjusted EBITDA | $ | 7,078 | $ | (3,522 | ) | $ | 11,347 | $ | (9,156 | ) | ||||||
| (1) Litigation-related costs are related to an anti-competition case which we do not consider to be representative of our underlying operating performance | ||||||||||||||||
The following table presents a reconciliation of non-GAAP net income (loss) to GAAP net income (loss), the most directly comparable financial measure stated in accordance with GAAP, for the periods presented (in millions):
| Q3'24 | FY24 | |||
| Non-GAAP net income (loss) to net income (loss) guidance Reconciliation | ||||
| Net income (loss) | ( | ( | ||
| Non-GAAP Adjustments: | ||||
| Stock-based compensation | ||||
| Intangible amortization | ||||
| Amortization of capitalized stock-based compensation | ||||
| Acquisition-related costs | — | |||
| Other | — | |||
| Non-GAAP net income (loss) | ||||
FAQ
What was ACV's (ACVA) revenue for Q2 2024?
How did ACV's (ACVA) Marketplace Units perform in Q2 2024?
What is ACV's (ACVA) revenue guidance for full-year 2024?
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