Acv Auctions Inc. · NYSE:ACVA
Acv Auctions — Q4 2021 Earnings Presentation
28 slides from Acv Auctions's earnings presentation, Feb 16, 2022
Slide 1: Q4'21 Earnings Presentation
Q4’21 Earnings Presentation Investor Relations February 16, 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 first quarter and full year of 2022, our 2026 financial targets, and operational
Slide 3: Trusted Digital Marketplace for Wholesale Vehicles & Data Services
Trusted Digital Marketplace for Wholesale Vehicles & Data Services Q4’20 Q4’21 Long-Term Strategy $0.9B $2.5B GMV GMV Marketplace Growth 103K 139K Marketplace Units Marketplace Units TAM and Product Expansion $54M $100M Revenue Revenue Operating Scale 52% 86% YoY Revenue Growth YoY Revenue Growth 3
Slide 4: Marketplace Growth
Trusted Digital Marketplace for Wholesale Vehicles & Data Services Marketplace Growth TAM and Product Expansion Operating Scale 4
Slide 5: Marketplace Adoption with Strong Vehicle Mix
Marketplace Adoption with Strong Vehicle Mix Marketplace Units (000s) Marketplace GMV ($B) 35% YoY 2021 Units of 561K; +43% YoY 2021 GMV of $7.9B; +140% YoY 170% YoY 84% 2-Yr.1 153 $2.5 141 139 128 $2.1 118 $2.0 103 88 83 $1.3 $1.1 $0.9 $0.6 $0.6 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'20
Slide 6: Macro Picture Largely Unchanged
Millions of Units Millions of Dollars 11.5 13.5 15.5 17.5 19.5 7.5 9.5 5,000 7,000 9,000 11,000 13,000 15,000 17,000 19,000 Nov 2019 Dec 2019 Sep 2019 Jan 2020 Oct 2019 Feb 2020 Nov 2019 Dec 2019 Mar 2020 Jan 2020 Apr 2020 Feb 2020 Source: Bureau of Economic Analysis Source: Bureau of Economic Analy
Slide 7: ACV Gaining Significant Share
ACV Gaining Significant Share US Dealer Wholesale Units (M) 3.0 7.0% • Q4’21 U.S. Dealer Wholesale Market estimated contraction: 6.0% 2.5 – (12)% QoQ – (5)% YoY 5.0% 2.0 4.0% • Implies ACV market share growth of 1.5 40% in Q4’21, given 35% YoY unit 3.0% growth 1.0 2.0% • U.S. Dealer Wholesale Market
Slide 8: Nationwide Territory Coverage
Nationwide Territory Coverage A Proven Playbook • Inspection team growth • Dealer acquisition • Network effect creation 8
Slide 9: Solid Auction Marketplace Revenue Growth
Solid Auction Marketplace Revenue Growth Auction Marketplace Revenue ($M) 2021 Auction Marketplace Revenue $164M; +66% YoY 73% YoY $47 194% 2-Yr.1 $43 $40 $34 $33 $25 $24 $18 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 1Q4’21 Auction Marketplace Revenue vs. Q4’19 Auction Marketplace Revenue 9
Slide 10: Consumer Sourcing Gaining Market Traction
Consumer Sourcing Gaining Market Traction • Real-time competitive offers for consumers • >$200M of GMV sold in Q4’21 • Live Appraisal sales in 48 states in 2021 10 10
Slide 11: TAM and Product Expansion
Trusted Digital Marketplace for Wholesale Vehicles & Data Services Marketplace Growth TAM and Product Expansion Operating Scale 11
Slide 12: Product Expansion Creating New Growth Levers
Product Expansion Creating New Growth Levers Programmatic Buying ACV Private Marketplaces • Automated bidding and buying • Private auction platform leveraging • Driven by data from ACV’s industry- ACV’s leading marketplace technology leading conditions reports • Enables dealers to optimize trades an
Slide 13: Expanding Our Digital Capabilities
Expanding Our Digital Capabilities • Leading SaaS-based automotive data and merchandising solutions • Provide dealers with unparalleled data and capabilities to source and sell wholesale or retail vehicles • Tools include pricing guidance, merchandising, and inventory management • >150% pipeline gro
Slide 14: Value-Added Services Gaining Further Traction
Value-Added Services Gaining Further Traction • ~3,000 carrier partners • Attach rate in the mid-single digits; wallet share growth • Q4’21 attach rate >50% • >200% YoY loan volume growth • Transports increased >100% YoY • Revenue per loan benefitting from • Winning in the market with fast new ACV C
Slide 15: Operating Scale
Trusted Digital Marketplace for Wholesale Vehicles & Data Services Marketplace Growth TAM and Product Expansion Operating Scale 15
Slide 16: Strong Q4'21 Performance
Strong Q4’21 Performance Revenue ($M) Adjusted EBITDA1 86% YoY $(8) $(16) $(22) – $(26) $100 $83 - $86 (15)% (16)% $54 (28)% Q4'20 Q4'21 Q4'21 Q4'20 Q4'21 Q4'21 Guidance Guidance Cost of Revenue2 Total Operating Cost (ex. COR)3 58% 61% 59% 56% Q4'20 Q4'21 Q4'20 Q4'21 1Adjusted EBITDA as % of Revenue
Slide 17: Diversified Revenue Streams
Diversified Revenue Streams Revenue Breakdown ($M) $100 $97 $92 14% 13% 36% YoY 2021 Auction Marketplace Revenue +66% YoY 14% $67 $69 15% 38% 43% 131% YoY Customer Assurance 16% $54 43% Go Green Assurance $45 18% Other Price Guarantee Products $42 35% 35% 15% 18% Service 35% 33% Transportation 40% 4
Slide 18: Demonstrated Operating Leverage
Demonstrated Operating Leverage Adj. EBITDA Margin Total Non-GAAP Operating Expense (Ex. COR) $ (76) $ (31) $ (44) 56% YoY (12)% $203 (15)% $130 (72)% 2019 2020 2021 2020 2021 Note: Refer to the adjusted EBITDA and adjusted EBITDA margin reconciliation in the appendix 18
Slide 19: Guidance
Guidance ($M) Q1’22 2022 2026 Targets $100 to $102 $450 to $460 ~$1,300 Total Revenue 45% to 48% YoY 26% to 28% YoY ~30% CAGR 137% to 141% 2-Yr. 116% to 121% 2-Yr. Adjusted EBITDA $(18) to $(17) $(57) to $(53) ~$325 Adjusted EBITDA % (18)% to (17)% (13)% to (12)% ~25% • Although the ongoing automoti
Slide 20: Strong Balance Sheet
Strong Balance Sheet ($M) As of December 31, 2021 Cash, Cash Equivalents and Marketable $580M Securities (Includes ~$164M of auction float) ACV Capital Revolving Credit Facility $0.5M Other Debt $0 Total Assets $983M Total Liabilities $427M 20
Slide 21: Key Takeaways
Key Takeaways Strong Execution Despite Challenging Market Factors Gaining Share, Attracting New Dealers and Growing 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 Three months ended Year Ended December 31, December 31, December 31, (in thousands) 2018 2019 2020 2021 2020 2021 Net Income (Loss) ($12,259) ($26,312) ($35,774) ($77,216) ($41,021) ($78,182) Depreciation and Amortization 2,040 2,532 271 1,839 7,244 8,753 Stock-based C
Slide 27: Operating Cost Reconciliation
Operating Cost Reconciliation Three months ended December 31, December 31, (in thousands) 2020 2021 Cost of Revenue $30,356 $58,023 Stock-based compensation $47 $110 Non-GAAP Cost of Revenue $30,309 $57,913 Total Operating Cost (Excluding Cost of Revenue) $35,404 $67,846 Stock-based Compensation $2,
Slide 28: Forward-Looking Statements
Forward-Looking Statements The forward-looking statements contained in this presentation are based on ACV’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties and changes in circumstances that may cause ACV’s actual results, performance or achievements