Slide 1: Q1-24 Earnings Presentation
Q1-24 EARNINGS PRESENTATION MAY_8_2024
Slide 2: Forward Looking Statements; Information About Key Operating and Financial Metrics
FORWARD LOOKING STATEMENTS Statements in this presentation regarding future performance and future expectations, beliefs, goals, plans or prospects include forward looking statements for purposes of federal and state securities laws, including statements regarding ACV’s avenues for long term growth
Slide 3: Highlights
01 HIGHLIGHTS George Chamoun CHIEF EXECUTIVE OFFICER Q1-24_EARNINGS MAY_8_2024
Slide 4: Highlights
HIGHLIGHTS Q1-23 Q1-24 $120M Revenue $146M YoY Revenue 16% Growth 22% Marketplace 152K Units 175K $2.4B GMV $2.3B 4
Slide 5: Maximizing Long-Term Shareholder Value
MAXIMIZING LONG-TERM SHAREHOLDER VALUE GROWTH INNOVATION SCALE Transforming the automotive market Leveraging technology to extend Proven business model delivering with the leading digitally native, data- ACV’s competitive moat and to create growth at scale with attractive unit driven platform, creat
Slide 6: Growth
02 GROWTH Q1-24_EARNINGS MAY_8_2024
Slide 7: Market Backdrop
GROWTH Market Backdrop New-vehicle retail sales were flat YoY, despite improving inventory levels and increased OEM incentives. Used-vehicle retail sales were also flat YoY, due to the lack of late-model inventory, and elevated prices and borrowing costs “Trade-to-wholesale” mix declined YoY and rem
Slide 8: ACV Transportation
GROWTH ~85% ACV Transportation AUTO DISPATCHED Attach rate in the mid-50% range with ~95K transports (+20% YoY) 94% lane coverage with AI-optimized pricing >300 bps of revenue margin expansion YoY > Launched Off-Platform transportation services 8 8
Slide 9: ACV Capital
GROWTH ACV Capital Strong revenue growth ~40% YOY REVENUE GROWTH ~25% YOY RPU Continued RPU expansion EXPANSION ~1% CREDIT LOSS PROVISION Managing risk % OF A/R Figures reflect Q1-24 vs. Q1-23 results 9 9
Slide 10: Innovation
03 INNOVATION Q1-24_EARNINGS MAY_8_2024
Slide 11: Innovation for Growth
INNOVATION Innovation for Growth • Driving marketplace conversion • ACV MAX relaunch • Commercial platform and Remarketing Center integrations • Dealer Self-Inspection for Private Marketplaces and Live Appraisal
Slide 12: Consumer Sourcing
GROWTH Consumer Sourcing • Empowering dealer sourcing • Transparency and accuracy • Seamless deployment • AI imaging and self-inspection • TAM expansion “ClearCar has enabled Lester Glenn to create a trustworthy car buying experience that is easy, consistent and transparent. It has unlocked a new re
Slide 13: Innovation for Scale
INNOVATION Innovation for Scale Enhanced Inspection Platform Delivering Quality and Efficiency • CoPilot 2.0 • ArbGuard 2.0
Slide 14: Scale
04 SCALE Bill Zerella CHIEF FINANCIAL OFFICER Q1-24_EARNINGS MAY_8_2024
Slide 15: Solid Q1-24 Performance
SCALE Solid Q1-24 Performance REVENUE ($M) % YOY GROWTH ADJ. EBITDA ($M) ADJ. EBITDA MARGIN NON-GAAP NET INCOME ($M) NON-GAAP NET INCOME MARGIN 16% 22% (5%) 3% (4%) 1% $141 - $146 $4 $2-$4 $0 - $2 $146 $1 $120 $(6) $(5) Q1-23 Q1-24 Q1-24 Q1-23 Q1-24 Q1-24 Q1-23 Q1-24 Q1-24 Guidance Guidance Guidance
Slide 16: Diversified Revenue Streams
SCALE Diversified Revenue Streams $146M Revenue Breakdown ($M) 5% (3%) SAAS & DATA SERVICES $120M YOY SAAS PRODUCTS 8% 37% $103M DATA-ENABLED SOLUTIONS 8% 28% 36% YOY MARKETPLACE SERVICES 35% TRANSPORTATION CAPITAL 57% 21% AUCTION & ASSURANCE 57% YOY 57% AUCTION FEES GO GREEN ASSURANCE Q1-22 Q1-23 Q
Slide 17: Delivering Margin Improvement and Managing OpEx
SCALE Delivering Margin Improvement and Managing OpEx NON-GAAP COST OF REVENUE NON-GAAP OPERATING EXPENSE (EX. COR) % OF REVENUE % OF REVENUE 57% 50% 54% 47% Q1-23 Q1-24 Q1-23 Q1-24 Note: Refer to the Appendix for information on the GAAP to non-GAAP reconciliations 17
Slide 18: Balancing Growth and Investments
SCALE Balancing Growth and Investments ADJ. EBITDA MARGIN ADJ. EBITDA ($M) NON-GAAP OPERATING EXPENSE (EX. COR) ($M) % YOY GROWTH ($44) ($56) ($18) $23 22% 8% 22% 4% $328 (4%) $268 $248 $203 (12%) (13%) 2021 2022 2023 2024G 2021 2022 2023 2024G Note: 2024 refers to the midpoint of guidance Refer to
Slide 19: Strong Capital Position and Cash Flow
SCALE Strong Capital Position and Cash Flow OPERATING CASH FLOW ($M) ($M) As of March 31, 2024 $43 $43 Cash, Cash Equivalents and $341 Marketable Securities (Includes ~$172M of auction float) ACV Capital Receivables $121 Long Term Debt $125 Total Assets $1,045 Q1-23 Q1-24 Total Liabilities $586 Q1-2
Slide 20: Guidance
SCALE Guidance Assumptions Dealer wholesale volumes expected to Q2-24 2024 (dollars in millions) improve modestly in the back-half of 2024 Revenue $154 to $158 $610 to $625 YoY Growth 24% to 27% 27% to 30% Conversion rates and wholesale price deprecation expected to follow normal GAAP Net Income (Lo
Slide 21: Mid-term Target Model
SCALE Mid-term Target Model $1.3B REVENUE $325M ADJ. EBITDA ADJ. EBITDA 25% MARGIN 21
Slide 22: Wrap Up
01 Executing on Growth Strategy and Gaining Share 02 Expanding Addressable Market Wrap Up 03 Delivering on Product Roadmap and Expanding Competitive Moat 04 Driving Profitable Growth Through Scalable Business Model 05 Building World Class Team with People-First Culture 22
Slide 23: Q&A
05 Q&A Q1-24_EARNINGS MAY_8_2024
Slide 24: Appendix
06 APPENDIX Q1-24_EARNINGS MAY_8_2024
Slide 25: GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) to Adjusted EBITDA Reconciliations
GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) to Adjusted EBITDA Reconciliations Reconciliation GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) 2021 2022 Q1-23 Q2-23 Q3-23 Q4-23 2023 Q1-24 GAAP Net Income (Loss) ($78.2) ($102.2) ($18.2) ($15.6) ($18.2) ($23.2) ($75.2) ($20.5) Non-GAAP Ad
Slide 26: GAAP to Non-GAAP Operating Cost Reconciliation
GAAP to Non-GAAP Operating Cost Reconciliation Reconciliation GAAP Operating Expense to Actual Actual Non-GAAP Operating Expense Q1-23 Q1-24 GAAP Cost of Revenue $59.7 $68.5 Non-GAAP Adjustments: Marketplace & Service Cost of Revenue SBC (0.2) (0.3) Marketplace & Service Cost of Revenue Other - - No
Slide 27: GAAP to Non-GAAP Net Income Guidance Reconciliation
GAAP to Non-GAAP Net Income Guidance Reconciliation Reconciliation GAAP Net Income Guidance to Guidance Guidance Non-GAAP Net Income Guidance Q2-24 2024 GAAP Net Income (loss) ($19) - ($17) ($85) - ($80) Non-GAAP Adjustments: Stock Based Compensation 18 70 Intangible Amortization 3 10 Amortization o
Slide 28: Information About Non-GAAP Financial Measures
INFORMATION ABOUT NON-GAAP ACV provides supplemental non-GAAP financial measures to its financial results. We use these non-GAAP financial measures, and we believe that FINANCIAL MEASURES they assist our investors to make period-to-period comparisons of our operating performance because they provide
Slide 29: Information About Non-GAAP Financial Measures (Con't)
INFORMATION ABOUT NON-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 i
Slide 30: Key Operating and Financial Metrics
KEY OPERATING AND FINANCIAL We regularly monitor the following operating and financial metrics in order to measure our current performance and estimate our future METRICS performance. Our key operating and financial metrics may be calculated in a manner different than similar business metrics used b
Slide 31: Forward Looking Statements
FORWARD LOOKING This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities STATEMENTS Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning our financial gui