Slide 1: Q2'21 Earnings Presentation
Q2’21 Earnings Presentation Investor Relations August 11, 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 third quarter of 2021 and the full year of 2021, and operational and product stra
Slide 3: Trusted Digital Marketplace for Wholesale Vehicles & Data Services
Trusted Digital Marketplace for Wholesale Vehicles & Data Services Q2’20 Q2’21 Long-Term Strategy $0.6B+ $2.1B Marketplace Growth GMV GMV 88K+ 153K+ Marketplace Units Marketplace Units TAM and Product Expansion $45M $97M Revenue Revenue Operating Scale 103% 117% YoY Revenue Growth YoY Revenue Growth
Slide 4: Marketplace Growth
Trusted Digital Marketplace for Wholesale Vehicles & Data Services Marketplace Growth TAM and Product Expansion Operating Scale 4
Slide 5: Gaining Share While Moving Up Market
Gaining Share While Moving Up Market Marketplace Units (000s) Marketplace GMV ($B) 74% YoY 174% 2-Yr.1 234% YoY 153 $2.1 128 118 103 $1.3 88 83 $1.1 $0.9 $0.6 $0.6 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 5
Slide 6: Expanding Our National Footprint
Expanding Our National Footprint Tracking to 2021 target of 160 TERRITORIES 6
Slide 7: Inspection Team Size and Scale
Inspection Team Size and Scale • Largest dedicated inspection team – 3x growth since 2019 • Utilization up mid-teens % YoY • Technology investments enabling scale • Supporting strong growth and efficiency 7
Slide 8: Strong Auction Marketplace Revenue Growth
Strong Auction Marketplace Revenue Growth Auction Marketplace Revenue ($M) 98% YoY 273% 2-Yr.1 $47 $34 $33 $25 $24 $18 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 1Q2’21 units sold vs. Q2’19 units sold 8
Slide 9: Consumer Sourcing with Live Appraisal
Consumer Sourcing with Live Appraisal • Pioneered consumer sourcing • Low-risk channel for dealers • Real-time competitive offers for consumers - powered by the ACV Marketplace • >150% YoY unit growth in Q2’21 • High single-digit % of Q2’21 units sold 9
Slide 10: TAM and Product Expansion
Trusted Digital Marketplace for Wholesale Vehicles & Data Services Marketplace Growth TAM and Product Expansion Operating Scale
Slide 11: Programmatic Buying
Programmatic Buying • Automated bidding and buying • Driven by data from ACV’s industry- leading conditions reports • “Buying API” offering live today • “Buying Matrix” offering in beta with Q4’21 commercial launch 11
Slide 12: Self-Reinforcing Network Effects
Self-Reinforcing Network Effects Driving Greater Scale, Efficiency, and Liquidity 12
Slide 13: Expanding Our Digital Capabilities
Expanding Our Digital Capabilities • Leading provider of SaaS-based automotive data and merchandising solutions • Provide dealers with unparalleled data and capabilities to source and sell wholesale or retail vehicles • Tools include pricing guidance, merchandising, and inventory management 13
Slide 14: Value-Added Services Gaining Traction
Value-Added Services Gaining Traction • Attach rate approaching mid-single • >3,200 carrier partners digits; wallet share growth • Q2’21 attach rate ~45%; ~70K transports • >30% QoQ loan volume growth • Winning in the market with fast cycle times • Revenue per loan benefitting from new and broad rea
Slide 15: Operating Scale
Trusted Digital Marketplace for Wholesale Vehicles & Data Services Marketplace Growth TAM and Product Expansion Operating Scale
Slide 16: Strong Q2'21 Performance
Strong Q2’21 Performance Revenue ($M) Adjusted EBITDA1 117% YoY $(2) $(4) $(20) – $(22) $97 (3)% (4)% $72 - $75 $45 -29% Q2'20 Q2'21 Q2'21 Q2'20 Q2'21 Q2'21 Guidance Guidance Cost of Revenue2 Total Operating Cost (ex. COR)3 55% 61% 45% 50% Q2'20 Q2'21 Q2'20 Q2'21 1Adjusted EBITDA as % of Revenue; Se
Slide 17: Diversified Revenue Streams
Diversified Revenue Streams Revenue Breakdown ($M) $97 14% 104% YoY Auction Marketplace $67 $69 Service 15% 38% 152% YoY Transportation 16% $54 Capital $45 18% Data Services – True360 $42 35% 35% 15% 18% 35% Customer Assurance 33% 40% 48% 98% YoY Go Green Assurance 50% 49% Other Price Guarantee Prod
Slide 18: Demonstrated Operating Leverage
Demonstrated Operating Leverage Adj. EBITDA Margin Total Operating Expense (Ex. COR) $ (29) $ (76) $ (31) $ (61) 66% YoY $216 (15)% (19)% $130 (72)% (81)% 2018 2019 2020 2021 2020 2021 Note: Refer to the adjusted EBITDA and adjusted EBITDA margin reconciliation in the appendix 2021 values represent
Slide 19: Guidance
Guidance Revised Previous ($M) Q3’21 2021 2021 $82 to 85 $332 to $338 $307 to $313 Total Revenue 22% to 26% YoY 59% to 62% YoY 47% to 50% 158% to 167% 2-Yr. 211% to 216% 2-Yr. 187% to 193% Adjusted EBITDA Loss $20 to $22 $62 to $65 $79 to $82 • Favorable market conditions continue to normalize in th
Slide 20: Strong Balance Sheet
Strong Balance Sheet ($M) As of June 30, 2021 $664M Cash and Cash Equivalents (Includes ~$124M of auction float) ACV Capital Revolving Credit Facility $0.5M Other Debt $0 Total Assets $989M Total Liabilities $397M 20
Slide 21: Summary
Summary Very Strong Q2 Results with 117% YoY Revenue Growth Continuing to Gain Share, Attract New Dealers and Grow Wallet Share Executing on Market Expansion and Product Road Map Proven Business Model with Scalable Growth and Operating Leverage 21
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix 23
Slide 24: 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 25: 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 26: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Year Ended December 31, June 30, June 30, (in thousands) 2018 2019 2020 2020 2021 Net Loss ($4,396) ($9,692) ($35,774) ($77,216) ($41,021) Depreciation and Amortization 1,733 1,837 271 1,839 7,244 Stock-based Compensation 1,033 3,763 7,219 998 5,705 Interest (Income) E
Slide 27: Operating Cost Reconciliation
Operating Cost Reconciliation June 30, June 30, (in thousands) 2020 2021 Cost of Revenue $19,977 $53,917 Stock-based compensation $3 $48 Non-GAAP Cost of Revenue $19,974 $53,869 Total Operating Cost (Excluding Cost of Revenue) $29,229 $52,787 Stock-based Compensation $1,030 $3,715 Intangible Amortiz
Slide 28: 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-