Acv Auctions Inc. · NYSE:ACVA
Acv Auctions — Q1 2021 Earnings Presentation
33 slides from Acv Auctions's earnings presentation, May 13, 2021
Slide 1: Q1'21 Earnings Presentation
Q1’21 Earnings Presentation Investor Relations May 13, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward looking statements, including statements regarding ACV’s avenues for long-term growth and total addressable market expansion, our financial guidance for the second quarter of 2021 and the full year of 2021, and opportunities for margin ex
Slide 3: Today's Presenters
Today’s Presenters George Chamoun Bill Zerella CEO CFO
Slide 4: Thank You!
Thank You!
Slide 5: Trusted Digital Marketplace for Wholesale Vehicles & Data Services
Trusted Digital Marketplace for Wholesale Vehicles & Data Services 2020 Q1’21 Long-Term Strategy $3B+ $1.3B Marketplace Growth GMV GMV 391K+ 128K+ Marketplace Units Marketplace Units TAM and Product Expansion $208M $69M Revenue Revenue Operating Scale 95% 64% YoY Revenue Growth YoY Revenue Growth No
Slide 6: ACV Overview
ACV Overview
Slide 7: Our Mission
Our Mission To build and enable the most trusted and efficient digital marketplace for buying and selling used vehicles with transparency and comprehensive data that was previously unimaginable
Slide 8: ACV at a Glance
ACV at a Glance Trusted Digital Marketplace for Wholesale Vehicles & Data Services 125 Territories 16K+ Marketplace Participants Note: All data as of and for the year ended December 31, 2020
Slide 9: Large and Complex Addressable Market Opportunity
Large and Complex Addressable Market Opportunity Used Market is Highly Wholesale is a Critical Supply Source to Used Retail Fragmented ~$1.7 Trillion US Annual Vehicle Market Sources: Hedges & Company, US Vehicle Registration Statistics, November 2020; Manheim Used Car Market Report, 2017; National
Slide 10: Significant Untapped Opportunity
Significant Untapped Opportunity Serviceable Opportunity Longer Term Opportunity Data Services 50K+ Dealers 60M Wholesale Vehicles 50M+ Vehicles $30B+ Wholesale Commercial Wholesale Marketplace Revenue Dealer Wholesale Dealer to Consumer $10B+ Commercial Wholesale International Data Services for Dea
Slide 11: Trust and Transparency Unlock Digital
Trust and Transparency Unlock Digital Listing Vehicle Discovery Vehicle Intelligence Auction Experience 19:5 8 Proprietary Customized Instant Condition and Live Post-Auction Inspection Filters Notifications Market Report Auction Services
Slide 12: Proprietary Data and Technology Power Our Products
Proprietary Data and Technology Power Our Products
Slide 13: Suite of Products Enable Our Digital Marketplace
Suite of Products Enable Our Digital Marketplace Enable dealers and commercial partners to easily transact with confidence and efficiency Live Appraisal Online auction for Assess the value of Wholesale market’s Integrated Straightforward instant wholesale consumer vehicles first seller assurance tra
Slide 14: Data Powers ACV Marketplace and Beyond
Data Powers ACV Marketplace and Beyond Enable dealers, their customers, and commercial partners to make informed decisions and transact with confidence and efficiency both on and off our marketplace Market Report
Slide 15: Self-Reinforcing Network Effects
Self-Reinforcing Network Effects Driving Greater Scale, Efficiency, and Liquidity
Slide 16: Significant Avenues for Future Growth
Significant Avenues for Future Growth New Territories New Participants Expand True360 Nationally Increase Wallet Share Introduce New Products Emerging & New Products Marketplace Data Services International Expansion Targeted Acquisitions
Slide 17: Mission-Driven Culture and Proven Team
Mission-Driven Culture and Proven Team Sallie Craig Vikas Bill Kate Mike Joseph George Reid Anderson Mehta Zerella Clegg Waterman Neiman Chamoun --- --- --- --- --- --- --- --- Vice President Chief Corp Dev Chief Chief Financial Chief Marketing Chief Sales Chief Customer Chief Executive People & & S
Slide 18: Financial Overview
Financial Overview
Slide 19: Strong Q1'21 Performance
Strong Q1’21 Performance Revenue ($M) Adjusted EBITDA1 $69 64% YoY $42 (18)% (58)% Q1'20 Q1'21 Q1'20 Q1'21 Cost of Revenue2 Total Operating Cost (ex. COR)3 68% 91% 56% 63% Q1'20 Q1'21 Q1'20 Q1'21 1Adjusted EBITDA as % of Revenue; See appendix for Adjusted EBITDA reconciliation 2Non-GAAP Cost of Reve
Slide 20: Diversified Revenue Streams
Diversified Revenue Streams Revenue Breakdown ($M) Auction Marketplace Revenue ($M) ‘18-20 CAGR $208 ‘18-20 CAGR 89% Marketplace and Service 143% $35 130% $99 Auction Transportation Capital Data Services – True360 $107 83% $19 $49 $173 88% Customer Assurance $69 Go Green Assurance Other Price Guaran
Slide 21: Significant Growth at Scale
Significant Growth at Scale Marketplace Units (000s) Marketplace GMV ($B) $3.3 ‘18-20 CAGR ‘18-20 CAGR 391 108% 128% 241 $1.8 107% YoY 55% YoY $1.3 128 90 83 $0.6 $0.6 2018 2019 2020 Q1'20 Q1'21 2018 2019 2020 Q1'20 Q1'21 Note: Annual data as of and for the year ended December 31; Q1’20 and Q1’21 da
Slide 22: Significant Growth and Cost Efficiency as Territories Mature
Significant Growth and Cost Efficiency as Territories Mature Strong Territory Cohort Growth Improving Cost Efficiency Across Territories Marketplace Units in FY 2020 Indexed to Cohort’s Year 1 Auction Expenses as a % of Auction and Customer Assurance Revenue as of FY 2020 300% 28 x 200% 10 x 100% 12
Slide 23: Proven Path to Profitability
Proven Path to Profitability Adj. EBITDA Margin $ (24) $ (2) $3 $ (8) $ (12) $ (29) $ (76) $ (31) 5% (3)% (15)% (15)% (18)% Proof Point of Business Model Leverage (72)% (58)% (81)% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 2018 2019 2020 Note: Refer to the adjusted EBITDA and adjusted EBITDA margin reconciliati
Slide 24: Guidance
Guidance ($M) Q2’21 2021 Total Revenue $72 to $75 $307 to $313 60% to 67% YoY 47% to 50% YoY Adjusted EBITDA Loss $20 to $22 $79 to $82 • Favorable market dynamics expected to continue near- term with more normalized levels expected later in 2021 • 2021 full-year total operating expense growth of 62
Slide 25: Strong Balance Sheet
Strong Balance Sheet ($M) As of March 31, 2021 $660M Cash and Cash Equivalents (Includes ~$98M of auction float) ACV Capital Revolving Credit Facility $7M Other Debt $0 Total Assets $928M Total Liabilities $330M
Slide 26: Summary
Summary Strong Q1 Results with 64% YoY Revenue Growth Significant Progress Redefining Wholesale but Still in Early Innings Data and Technology Will Remain Core to Our Advantage Proven Business Model with Scalable Growth and Operating Leverage
Slide 27: Q&A
Q&A
Slide 28: Appendix
Appendix
Slide 29: Information About Non-GAAP Financial Measure and Key Operating and Financial Metrics
Information About Non-GAAP Financial Measure and Key Operating and Financial Metrics We supplement our financial results with non-GAAP financial measures: Adjusted EBITDA, non-GAAP cost of revenue and non-GAAP total operating cost (excluding cost of revenue); and key operating and financial metrics:
Slide 30: Key Operating and Financial Metrics
Key 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 b
Slide 31: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Year Ended December 31, March 31, June 30, September 30, December 31, March 31, (in thousands) 2018 2019 2020 2020 2020 2020 2020 2021 Net Loss ($27,525) ($4,396) $3,159 ($12,259) ($17,375) ($35,774) ($77,216) ($41,021) Depreciation and Amortization 1,446 1,733 2,025 2
Slide 32: Operating Cost Reconciliation
Operating Cost Reconciliation March 31, March 31, (in thousands) 2020 2021 Cost of Revenue $28,887 $38,895 Stock-based compensation $4 $65 Non-GAAP Cost of Revenue $28,883 $38,830 Total Operating Cost (Excluding Cost of Revenue) $41,226 $47,326 Stock-based Compensation $2,093 $2,802 Intangible Amort
Slide 33: Forward-Looking Statements
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 avenues for long-