Slide 1: Q4-24 Earnings Presentation
Q4-24 EARNINGS PRESENTATION FEB_19_2025
Slide 2: Forward Looking Statements
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 Q4-24_EARNINGS FEB_19_2025
Slide 4: Highlights
HIGHLIGHTS Q4-23 Q4-24 2023 2024 $118M Revenue $160M $481M Revenue $637M YoY Revenue YoY Revenue 21% Growth 35% 14% Growth 32% $1.8B GMV $2.3B $8.8B GMV $9.5B Marketplace Marketplace 144K Units 183K 599K Units 743K 4
Slide 5: Maximizing Long-Term Shareholder Value
MAXIMIZING LONG-TERM SHAREHOLDER VALUE GROWTH INNOVATION SCALE Transforming the automotive market Leveraging technology to extend Proven business model delivering with the leading digitally native, data- ACV’s competitive moat and to create growth at scale with attractive unit driven platform, creat
Slide 6: Growth
02 GROWTH Q4-24_EARNINGS FEB_19_2025
Slide 7: Market Backdrop
GROWTH Market Backdrop New-vehicle retail sales increased 2% YoY in 2024 with Q4-24 retail sales increasing 7%, reflecting normalized inventory levels and increased OEMs incentives Used-vehicle retail sales declined modestly YoY in 2024 and in Q4-24, as demand continued to be pressured by ongoing co
Slide 8: ACV Transportation
GROWTH 85%+ ACV Transportation AUTO DISPATCHED >30% full-year revenue growth with 410K transports 95% lane coverage with AI-optimized pricing Record revenue margin with >300 bps of YoY expansion in 2024 Off-platform transportation services gained further traction 8 8
Slide 9: ACV Capital
GROWTH ACV Capital Strong revenue growth ~26% YOY REVENUE GROWTH <1% CREDIT LOSS PROVISION Managing risk % OF A/R Product Expanding value-added offerings Expansion 9 Note: Revenue growth refers to 2024 vs. 2023: Credit loss provision % of A/R refers to Q4’24 9
Slide 10: Innovation
03 INNOVATION Q4-24_EARNINGS FEB_19_2025
Slide 11: Innovation for Growth and Scale
INNOVATION Innovation for Growth and Scale Powered by ACV AI • Driving marketplace conversion • ACV MAX advancements • Dealer self-inspection • Commercial platform and Remarketing Center integration • ClearCar market traction and Powering Auto eCommerce
Slide 12: Scale
04 SCALE Bill Zerella CHIEF FINANCIAL OFFICER Q4-24_EARNINGS FEB_19_2025
Slide 13: Strong Q4-24 Performance
SCALE Strong Q4-24 Performance REVENUE ($M) % YOY GROWTH ADJ. EBITDA ($M) ADJ. EBITDA MARGIN NON-GAAP NET INCOME ($M) NON-GAAP NET INCOME MARGIN 21% 35% (5)% 4% (5)% (1)% $152 - $156 $160 $6 $118 $2-$4 $(1) $(4) – $(2) $(6) $(5) Q4-23 Q4-24 Q4-24 Q4-23 Q4-24 Q4-24 Q4-23 Q4-24 Q4-24 Guidance Guidance
Slide 14: Diversified Revenue Streams
SCALE Diversified Revenue Streams $160M Revenue Breakdown ($M) 5% SAAS & DATA SERVICES 10% $118M YOY SAAS PRODUCTS 37% DATA-ENABLED SOLUTIONS 7% $98M 31% YOY 8% 38% MARKETPLACE SERVICES TRANSPORTATION CAPITAL 35% AUCTION & ASSURANCE 58% 40% 55% YOY AUCTION FEES 56% GO GREEN ASSURANCE Q4-22 Q4-23 Q4-
Slide 15: Delivering Margin Improvement and Managing OpEx
SCALE Delivering Margin Improvement and Managing OpEx NON-GAAP COST OF REVENUE NON-GAAP OPERATING EXPENSE (EX. COR) % OF REVENUE % OF REVENUE 57% 51% 53% 47% Q4-23 Q4-24 Q4-23 Q4-24 Note: Refer to the Appendix for information on the GAAP to non-GAAP reconciliations 15
Slide 16: Balancing Growth and Investments
SCALE Balancing Growth and Investments ADJ. EBITDA MARGIN ADJ. EBITDA ($M) NON-GAAP OPERATING EXPENSE (EX. COR) ($M) % YOY GROWTH ($44) ($56) ($18) $28 22% 8% 22% 4% $327 (4%) $268 $248 $203 (12%) (13%) 2021 2022 2023 2024 2021 2022 2023 2024 Note: Refer to the Appendix for more information on the G
Slide 17: Strong Capital Position and Cash Flow
SCALE Strong Capital Position and Cash Flow OPERATING CASH FLOW ($M) ($M) As of December 31, 2024 Cash, Cash Equivalents and $270 $65 Marketable Securities (Includes ~$167M of auction float) ACV Capital Receivables $139 Long Term Debt $123 Total Assets $984 ($18) Total Liabilities $544 2023 2024 17
Slide 18: Guidance Assumptions
SCALE Guidance Assumptions Q1-25 2025 (dollars in millions) Revenue $180 to $185 $765 to $785 Dealer wholesale market expected to be approximately flat year-over-year YoY Growth 24% to 27% 20% to 23% GAAP Net Income (Loss) ($21) to ($19) ($62) to ($52) Conversion rates and wholesale price deprecatio
Slide 19: Updated Mid-term Target Model
SCALE Updated Mid-term Target Model Assumes 1.5M units $1.4B REVENUE $350M ADJ. EBITDA ADJ. EBITDA 25% MARGIN 19
Slide 20: 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 20
Slide 21: Q&A
05 Q&A Q4-24_EARNINGS FEB_19_2025
Slide 22: Appendix
06 APPENDIX Q4-24_EARNINGS FEB_19_2025
Slide 23: 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 Q2-24 Q3-24 Q4-24 2024 GAAP Net Income (Loss) ($78.2) ($102.2) ($18.2) ($15.6) ($18.2) ($23.2) ($75
Slide 24: GAAP to Non-GAAP Operating Cost Reconciliation
GAAP to Non-GAAP Operating Cost Reconciliation Reconciliation GAAP Operating Expense to Non-GAAP Operating Expense 2021 2022 2023 2024 GAAP Cost of Revenue $204.8 $236.7 $244.5 $304.4 Non-GAAP Adjustments: Marketplace & Service Cost of Revenue SBC ($0.3) ($0.7) ($0.9) ($1.1) Marketplace & Service Co
Slide 25: 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 Q1-25 2025 GAAP Net Income (loss) ($21) - ($19) ($62) - ($52) Non-GAAP Adjustments: Stock Based Compensation 19 76 Intangible Amortization 3 10 Amortization o
Slide 26: 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 27: 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 28: 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 29: 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