Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation May 9, 2024 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation includes “forward-looking statements.” The words “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “guide,” “intend,” “may,” “might,” “plan,” “potential,” “predicts,” “projects,” “seeks,” “should,” “target,”
Slide 3: Financial Highlights - First Quarter 2024
Financial Highlights - First Quarter 2024 Revenue Gross Profit Non-GAAP Adjusted EBITDA1 ($ millions) ($ millions) ($ millions) % YoY (53%) (49%) (22%) (7%) % Mgn 68% 75% 75% 81% % Mgn 19% 22% 27% 23% 239.7 219.4 223.1 61.2 215.8 175.0 68.8 164.1 164.3 168.0 50.4 41.5 40.9 28.6 -55.9% 8.7 2.1 7.4% 4
Slide 4: Drivers of Value Creation - First Quarter 2024 Progress
Drivers of Value Creation - First Quarter 2024 Progress More Value Better Consumer Transaction Rebuild & Integrate to Dealers Experience Enablement Digital Wholesale ● Services embedded in ● Largest vehicle selection1, ● Digital Deal adoption up ● Consultative Go-To-Market dealers’ daily workflow co
Slide 5: Strong QARSD Growth and Dealer Adoption
Strong QARSD Growth and Dealer Adoption QARSD1 Paying Dealers1 +13.6% +240 $5,503 $5,664 31,291 31,097 31,191 30,935 31,175 $5,116 $5,317 YoY Dealers $4,986 $1,882 6,897 6,877 6,823 6,617 6,756 QoQ $1,721 $1,773 $1,550 $1,610 $5,943 $6,110 $6,332 $6,532 $6,702 24,394 24,220 24,368 24,318 24,419 Q1'2
Slide 6: Market-leading consumer experience
Market-leading consumer experience >50% U.S. Average Monthly Average Monthly More average monthly visitors1 Visitors1 Sessions2 than our next competitor (millions) (millions) 48.9 108.0 101.0 101.5 99.9 16.7 17.1 16.0 93.0 19.7 48% 16.2 Of monthly unique visitors3 do not 31.1 visit leading competito
Slide 7: Marketplace (U.S. Segment & Other) Q1 2024 Results
Marketplace (U.S. Segment & Other) Q1 2024 Results Revenue Non-GAAP Gross Profit1 ($ millions) ($ millions) $173 +14.0% YoY $168 $163 $187 +12.0% YoY $156 $152 $182 $178 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 % Margin 91% 91% 92% 92% 92% $171 Adjusted EBITDA1 ($ millions) $62 $167 $55 +28.9% $51 YoY $43 $41
Slide 8: Digital Wholesale Q1 2024 Results
Digital Wholesale Q1 2024 Results Revenue Non-GAAP Gross Profit (Loss)1 ($ millions) ($ millions) $14 $69 $65 $9 $7 $7 $3 $42 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 $41 % Margin 13% 20% 16% 17% 11% $29 Adjusted EBITDA1 ($ millions) $4 ($1) ($2) ($3) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 ($4) Q1'23 Q2'23 Q3'23 Q4'23
Slide 9: Second Quarter 2024 Outlook
Second Quarter 2024 Outlook Q2’24 Total Revenue $202 million - $222 million Marketplace Revenue $189 million - $194 million Non-GAAP Consolidated Adjusted EBITDA $47 million - $55 million Non-GAAP Earnings Per Share $0.29 - $0.34 The second quarter 2024 non-GAAP EPS calculation assumes 105.5 million
Slide 10: Appendix
Appendix
Slide 11: Digital Wholesale Platform Transaction Volume
Digital Wholesale Platform Transaction Volume Gross Merchandise Sales (GMS)1 Total Transactions2 ($ millions) $700 25,000 $600 20,793 $575 20,000 17,505 $500 $445 15,000 $400 13,562 13,558 $350 $335 10,302 $300 $250 10,000 $200 5,000 $100 $0 0 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1
Slide 12: Marketplace GAAP to Non-GAAP Gross Profit and Gross Margin Reconciliation
Marketplace (U.S. Marketplace Segment & Other) GAAP to Non- GAAP Gross Profit and Non-GAAP Gross Margin Reconciliation ($ thousands) Q1’23 Q2’23 Q3’23 Q4'23 Q1’24 GAAP U.S. Marketplace Segment Revenue $ 155,621 $ 158,443 $ 164,323 $ 168,897 $ 172,988 GAAP Other Revenue 11,506 12,507 13,586 13,353 14
Slide 13: Digital Wholesale GAAP to Non-GAAP Gross Profit (Loss) Reconciliation
Digital Wholesale GAAP to Non-GAAP Gross Profit (Loss) and Non-GAAP Gross Margin Reconciliation ($ thousands) Q1’23 Q2’23 Q3’23 Q4'23 Q1’24 GAAP Wholesale Revenue $ 25,186 $ 31,952 $ 21,735 $ 22,035 $ 16,125 GAAP Product Revenue 39,650 36,835 19,775 18,838 12,452 GAAP Digital Wholesale Revenue $ 64,
Slide 14: Marketplace Adjusted EBITDA Reconciliation
Marketplace (U.S. Marketplace Segment & Other) Adjusted EBITDA Reconciliation ($ thousands) Q1’23 Q2’23 Q3’23 Q4'23 Q1’24 U.S. Marketplace Segment Income from Operations $ 26,539 $ 24,619 $ 33,285 $ 43,281 $ 34,217 Other (Loss) Income from Operations (1,255) (574) 1,462 1,653 2,407 GAAP Marketplace
Slide 15: Digital Wholesale Adjusted EBITDA Reconciliation
Digital Wholesale Adjusted EBITDA Reconciliation ($ thousands) Q1’23 Q2’23 Q3’23 Q4'23 Q1’24 GAAP Digital Wholesale Loss from Operations $ (11,225) $ (6,307) $ (11,652) $ (67,199) $ (10,340) Impact of Depreciation and Amortization 8,693 8,702 9,334 9,537 4,281 Impact of Impairments of Long-Lived Ass
Slide 16: Consolidated Adjusted EBITDA Reconciliation
Consolidated Adjusted EBITDA Reconciliation ($ thousands) Q1’23 Q2’23 Q3’23 Q4'23 Q1’24 GAAP Consolidated Net Income $ 11,866 $ 13,817 $ 18,973 $ (22,603) $ 21,301 Impact of Depreciation and Amortization 11,576 11,667 12,470 12,761 7,481 Impact of Impairments of Long-Lived Assets 175 9 - - - Impact