Slide 1: Q1-22 Earnings Presentation
Q1-22 EARNINGS PRESENTATION M A Y _ 1 1 _ 2 0 2 2
Slide 2: Forward Looking Statements; Information About Non-GAAP Financial Measures
FORWARD LOOKING 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 STATEMENTS regarding ACV’s avenues for long term growth
Slide 3: Highlights
01 HIGHLIGHTS George Chamoun CHIEF EXECUTIVE OFFICER Q 1 - 2 2 _ E A R N I N G S M A Y _ 1 1 _ 2 0 2 2
Slide 4: Highlights
HIGHLIGHTS Q1-21 Q1-22 $69M Revenue $103M YoY Revenue 64% Growth 49% $1.3B GMV $2.4B Marketplace 128K Units 140K 4
Slide 5: Maximizing Long-Term Shareholder Value
MAXIMIZING LONG-TERM SHAREHOLDER VALUE GROWTH INNOVATION SCALE Transforming the automotive market with Leveraging technology to extend ACV’s Proven business model delivering the leading digitally native, data-driven competitive moat and to create additional growth at scale, with attractive platform,
Slide 6: Growth
02 GROWTH Q 1 - 2 2 _ E A R N I N G S M A Y _ 1 1 _ 2 0 2 2
Slide 7: Softening Demand and Seasonally Weak Prices
GROWTH Softening Demand and Seasonally Weak Prices Retail Used Vehicle Sales Wholesale Prices 9.0 ~(10)% YoY 8.0 7.0 6.0 Units (M) 5.0 4.0 3.0 2.0 1.0 - 19 19 19 19 20 20 20 20 21 21 21 21 22 1- 2- 3- 4- 1- 2- 3- 4- 1- 2- 3- 4- 1- Q Q Q Q Q Q Q Q Q Q Q Q Q Source: NADA Source: Black Book Q1-22 price
Slide 8: Supply Remains Constrained
Millions of Units 7.5 9.5 11.5 13.5 15.5 17.5 19.5 GROWTH Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Source: Bureau of Economic Analysis Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 New Vehicle Sales (S.A.) May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22
Slide 9: Strong Underlying Growth Drivers
GROWTH Strong Underlying Growth Drivers The YoY change in conversion rate in Q1-22 was a 30K+ unit headwind Listings Conversion Rate Variance 37% YoY 14% 12% 11% 11% 6% 6% 2% 2% 2% 1% 0% 0% (3%) Pre-COVID average conversion rate Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-22 2019 2020 2021 Q1-22 9 2019 2
Slide 10: Delivering Growth with Strong Vehicle Mix
GROWTH Delivering Growth with Strong Vehicle Mix Marketplace Units (000s) Marketplace GMV ($B) 9% YoY 55% YoY 83% YoY 70% 2-Yr.1 153 $2.5 $2.4 141 139 140 128 $2.1 $2.0 118 103 88 83 $1.3 $1.1 $0.9 $0.6 $0.6 Q 1 - 2 0 Q 2 - 2 0 Q 3 - 2 0 Q 4 - 2 0 Q 1 - 2 1 Q 2 - 2 1 Q 3 - 2 1 Q 4 - 2 1 Q 1 - 2 2 Q
Slide 11: Continued Market Share Gains
GROWTH Continued Market Share Gains Q1-22 ACV RETAIL DEALER WHOLESALE ACV MARKET SHARE 9% Unit Growth YoY 3M 7% Units Share Dealer (18%) Wholesale TAM ACV Market 27% Share Expansion Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-22 2019 2020 2021 Source: Company data, NADA 11
Slide 12: Transportation
GROWTH 50%+ AUTO / SELF Transportation DISPATCHED >50% Attach Rate 45% Transport growth >3,000 Carrier Partners Mobile Carrier App launch 12 12
Slide 13: ACV Capital
GROWTH ACV Capital >2x YoY increased attach rate ~140% YoY loan volume growth ~50% YoY revenue-per-loan growth ACV Capital Portal launch 13 13
Slide 14: Innovation
03 INNOVATION Q 1 - 2 2 _ E A R N I N G S M A Y _ 1 1 _ 2 0 2 2
Slide 15: Consumer Sourcing
INNOVATION Consumer Your Car Sourcing Live Appraisal Next 15 15
Slide 16: Data Platform Services
INNOVATION PLATFORM ENHANCED INTELLIGENCE & DATA SERVICES EXPANDED OFFERINGS SALES + MARKET ANALYTICS APPRAISALS DECISIONING CONSUMER DEMAND MERCHANDISING DISPOSITION AUCTION & INSPECTION RETAILING ACQUISITION WHOLESALE + RETAIL MARKETPLACE 16
Slide 17: Smart Acquisition Manager
INNOVATION 5%+ Smart OF UNITS SOLD Q1 2022 Acquisition Manager Tailored buyer recommendations Relevant & engaging notifications Intelligent and auto-bidding for buyers with customized business rules Persistent demand supports marketplace 17 17
Slide 18: Scale
04 SCALE Bill Zerella CHIEF FINANCIAL OFFICER Q 1 - 2 2 _ E A R N I N G S M A Y _ 1 1 _ 2 0 2 2
Slide 19: Solid Q1-22 Performance
SCALE Solid Q1-22 Performance REVENUE ($M) % YOY GROWTH ADJ. EBITDA MARGIN ADJ. EBITDA ($M) $(12) $(18) $(18) - $(17) 64% 49% $100 - $102 $103 $69 (17%) (18%) (18%) – (17%) Q1-21 Q1-22 Q1-22 Q1-21 Q1-22 Q1-22 Guidance Guidance Note: Refer to the adjusted EBITDA and adjusted EBITDA margin reconciliat
Slide 20: Diversified Revenue Streams
SCALE Diversified Revenue Streams Revenue Breakdown ($M) $103M ‘20-’22 CAGR 8% 72% SAAS & DATA SERVICES SAAS PRODUCTS 56% YOY DATA-ENABLED SOLUTIONS $69M 35% 7% MARKETPLACE SERVICES 87% TRANSPORTATION 28% YOY CAPITAL $42M 4% 36% 57% AUCTION & ASSURANCE 65% 31% YOY AUCTION FEES GO GREEN ASSURANCE 60%
Slide 21: Operating Leverage Offsets Near-term Cost of Revenue Pressures
SCALE Operating Leverage Offsets Near-term Cost of Revenue Pressures COST OF REVENUE % OF REVENUE TOTAL OPERATING COST (EX. COR) % OF REVENUE 63% 59% 60% 56% Q1-21 Q1-22 Q1-21 Q1-22 Note: Refer to the GAAP to non-GAAP operating cost reconciliation in the appendix 21
Slide 22: Balancing Growth and Investments
SCALE Balancing Growth and Investments ADJ. EBITDA MARGIN ADJ. EBITDA ($M) TOTAL OPERATING EXPENSE (EX. COR) ($M) % YOY GROWTH $(76) $(31) $(44) $(55) 56% 28% (12%) (12%) (15%) $261 $203 $130 (72%) 2019 2020 2021 2022 2020 2021 2022 Note: Refer to the adjusted EBITDA and adjusted EBITDA margin recon
Slide 23: Key Balance Sheet Items
SCALE ($M) As of March 31, 2022 Cash, Cash Equivalents and Marketable Securities $564 (Includes ~$152M of auction float) ACV Capital Receivables $63 Key Balance Long Term Debt (ACV Capital related) $61 Sheet Items Total Assets $1,019 Total Liabilities $486 23
Slide 24: Guidance
SCALE Guidance Q2’22 2022 Revenue ($M) $109 to $112 $452 to $460 Used vehicle supply and demand trends YoY Growth 12% to 15% 26% to 28% remain difficult to predict, however we believe there are multiple paths to 2-Year Growth 143% to 149% 117% to 121% achieve our 2022 revenue guidance. Adjusted EBIT
Slide 25: 2026 Financial Targets
SCALE 2026 Financial Targets $1.3B REVENUE $325M ADJ. EBITDA ADJ. EBITDA 25% MARGIN 25
Slide 26: Wrap Up
01 Executing on Growth Strategy Despite Challenging Markets 02 Expanding Footprint and Gaining Share with Proven Playbook Wrap Up 03 Delivering on Product Roadmap and Expanded our Addressable Market 04 Driving Profitable Growth Through Scalable Business Model 05 Building World Class Team with People
Slide 27: Q&A
05 Q&A Q 1 - 2 2 _ E A R N I N G S M A Y _ 1 1 _ 2 0 2 2
Slide 28: Appendix
06 APPENDIX Q 1 - 2 2 _ E A R N I N G S M A Y _ 1 1 _ 2 0 2 2
Slide 29: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation Quarter Ended Quarter Ended ($M) March 31, 2021 March 31, 2022 Net Loss ($17.4) ($29.5) Depreciation and Amortization 1.9 2.5 Stock-based Compensation 2.9 7.9 Interest (Income) Expense, Net 0.2 0.2 Provision for Income Taxes 0.1 0.2 Other (In
Slide 30: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation Year Ended Year Ended Year Ended ($M) December 31, 2019 December 31, 2020 December 31, 2021 Net Loss ($77.2) ($41.0) ($78.2) Depreciation and Amortization 1.8 7.2 8.8 Stock-based Compensation 1.0 5.7 23.7 Interest (Income) Expense, Net (2.1)
Slide 31: Operating Cost Reconciliation
Operating Cost Reconciliation Quarter Ended Quarter Ended ($M) March 31, 2021 March 31, 2022 GAAP Marketplace & Service Cost of Revenue $29.5 $47.3 Marketplace & Service Stock Based Compensation $0.1 $0.1 Non-GAAP Marketplace Cost of Revenue $29.4 $47.1 GAAP Customer Assurance Cost of Revenue $9.4 $
Slide 32: Information About Non-GAAP Financial Measures
INFORMATION ABOUT We supplement our financial results with non-GAAP financial measures: Adjusted EBITDA, non-GAAP cost of revenue and non-GAAP NON-GAAP FINANCIAL operating cost. MEASURES Non-GAAP Financial Measures We use certain non-GAAP financial measures that are not required by, or presented in
Slide 33: Key Operating and Financial Metrics
KEY OPERATING AND We regularly monitor the following operating and financial metrics in order to measure our current performance and estimate our FINANCIAL METRICS future. Our key operating and financial metrics may be calculated in a manner different than similar business metrics used by other comp
Slide 34: Forward Looking Statements
FORWARD LOOKING The forward-looking statements contained in this presentation are based on ACV’s current assumptions, expectations and beliefs STATEMENTS and are subject to substantial risks, uncertainties and changes in circumstances that may cause ACV’s actual results, performance or achievements