Acv Auctions Inc. · NYSE:ACVA
Acv Auctions — Q3 2024 Earnings Presentation
31 slides from Acv Auctions's earnings presentation, Nov 7, 2024
Slide 1: Q2-24 Earnings Presentation
Q2-24 EARNINGS PRESENTATION AUG_7_2024
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
0 1 HIGHLIGHTS George Chamoun CHIEF EXECUTIVE OFFICER Q2-24_EARNINGS AUG_7_2024
Slide 4: Highlights
HIGHLIGHT Q2-23 Q2-24 S $124M Revenue $161M YoY Revenue 8% Growth 29% Marketplace 153K Units 187K $2.5B GMV $2.4B 4
Slide 5: Maximizing Long-Term Shareholder Value
MAXIMIZING LONG-TERM SHAREHOLDER VALUE GROWTH INNOVATION SCALE Transforming the automotive market Leveraging technology to extend ACV’s Proven business model delivering with the leading digitally native, data- competitive moat and to create growth at scale with attractive unit driven platform, creat
Slide 6: Growth
02 GROWTH Q2-24_EARNINGS AUG_7_2024
Slide 7: Market Backdrop
GROWTH Market Backdrop Q2 new-vehicle retail sales were flat YoY, while used vehicle sales declined ~5% YoY, both reflecting the impact of the CDK outage, and consumer affordability headwinds Days of inventory for new vehicles continued to normalize – a positive tailwind for dealer wholesale, while
Slide 8: ACV Transportation
GROWTH ~85% ACV Transportation AUTO DISPATCHED Attach rate in the mid-50% range with >100K transports (+20% YoY) 95% lane coverage with AI-optimized pricing ~280 bps of revenue margin expansion YoY Off-Platform transportation services gaining traction 8 8
Slide 9: ACV Capital
GROWTH ACV Capital Solid revenue growth ~20% YOY REVENUE GROWTH <1% CREDIT LOSS PROVISION Managing risk % OF A/R TAM Expanding TAM Expansion Figures reflect Q2-24 vs. Q2-23 results 9 9
Slide 10: Innovation
03 INNOVATION Q2-24_EARNINGS AUG_7_2024
Slide 11: Innovation for Growth
INNOVATION Innovation for Growth • Driving marketplace conversion • Commercial platform and Remarketing Center integrations • ACV MAX relaunch • Dealer Self-Inspection
Slide 12: Consumer Sourcing
INNOVATION Consumer Sourcing • Empowering dealer sourcing • Transparency and accuracy • Seamless deployment • AI imaging and self-inspection • TAM expansion “ClearCar has been a game changer for Classic Elite’s consumer vehicle acquisition strategy. In the first two months after implementing ClearCa
Slide 13: Innovation for Scale
INNOVATION Innovation for Scale Enhanced Inspection Platform Delivering Quality and Efficiency • CoPilot 2.0 • ArbGuard 2.0
Slide 14: Scale
04 SCALE Bill Zerella CHIEF FINANCIAL OFFICER Q2-24_EARNINGS AUG_7_2024
Slide 15: Solid Q2-24 Performance
SCALE Solid Q2-24 Performance REVENUE ($M) % YOY GROWTH ADJ. EBITDA ($M) ADJ. EBITDA MARGIN NON-GAAP NET INCOME ($M) NON-GAAP NET INCOME MARGIN 8% 29% (3%) 4% (1%) 2% $154 - $158 $161 $7 $6-$8 $2 - $4 $124 $3 $(2) $(4) Q2-23 Q2-24 Q2-24 Q2-23 Q2-24 Q2-24 Q2-23 Q2-24 Q2-24 Guidance Guidance Guidance
Slide 16: Diversified Revenue Streams
SCALE Diversified Revenue Streams $161M Revenue Breakdown ($M) 5 % 1% YOY SAAS & DATA SERVICES $124M SAAS PRODUCTS $115M 38 7 DATA-ENABLED SOLUTIONS 7 % % 30% YOY % 37 MARKETPLACE SERVICES 36 % TRANSPORTATION % CAPITAL 57 % 33 AUCTION & ASSURANCE 57 56 % AUCTION FEES % YOY GO GREEN ASSURANCE % Q2-22
Slide 17: Delivering Margin Improvement and Managing OpEx
SCALE Delivering Margin Improvement and Managing OpEx NON-GAAP COST OF REVENUE NON-GAAP OPERATING EXPENSE (EX. COR) % OF REVENUE % OF REVENUE 51% 49% 54% 50% Q2-23 Q2-24 Q2-23 Q2-24 Note: Refer to the Appendix for information on the GAAP to non-GAAP reconciliations 17
Slide 18: Balancing Growth and Investments
SCALE Balancing Growth and Investments ADJ. EBITDA MARGIN ADJ. EBITDA ($M) NON-GAAP OPERATING EXPENSE (EX. COR) ($M) % YOY GROWTH ($44) ($56) ($18) $23 22% 8% 21% 4% $325 (4%) $268 $248 $203 (12%) (13%) 2021 2022 2023 2024G 2021 2022 2023 2024G Note: 2024 refers to the midpoint of guidance Refer to
Slide 19: Strong Capital Position and Cash Flow
SCALE Strong Capital Position and Cash Flow OPERATING CASH FLOW ($M) ($M) As of June 30, 2024 $47 Cash, Cash Equivalents and $273 Marketable Securities (Includes ~$168M of auction float) ACV Capital Receivables $121 $23 Long Term Debt $110 Total Assets $1,011 1H-23 1H-24 Total Liabilities $553 1H-24
Slide 20: Guidance
SCALE Guidance Assumptions Dealer wholesale volumes expected to Q3-24 2024 (dollars in continue to modestly improve in the millions) back-half of 2024 Revenue $158 to $162 $615 to $625 YoY Growth 33% to 36% 28% to 30% Conversion rates and wholesale price depreciation expected to follow normal GAAP N
Slide 21: Mid-term Target Model
SCALE Mid-term Target Model $1.3B REVENUE $325M ADJ. EBITDA ADJ. EBITDA 25% MARGIN 21
Slide 22: 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 22
Slide 23: Q&A
05 Q&A Q2-24_EARNINGS AUG_7_2024
Slide 24: Appendix
06 APPENDIX Q2-24_EARNINGS AUG_7_2024
Slide 25: 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 GAAP Net Income (Loss) ($78.2) ($102.2) ($18.2) ($15.6) ($18.2) ($23.2) ($75.2) ($20.5) ($17.
Slide 26: GAAP to Non-GAAP Operating Cost Reconciliation
GAAP to Non-GAAP Operating Cost Reconciliation Reconciliation GAAP Operating Expense to Actual Actual Non-GAAP Operating Expense Q2-23 Q2-24 GAAP Cost of Revenue $63.7 $78.8 Non-GAAP Adjustments: Marketplace & Service Cost of Revenue SBC (0.2) (0.2) Marketplace & Service Cost of Revenue Other 0.0 0.
Slide 27: 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 Q3-24 2024 GAAP Net Income (loss) ($22) - ($20) ($85) - ($80) Non-GAAP Adjustments: Stock Based Compensation 19 70 Intangible Amortization 3 10 Amortization o
Slide 28: 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 29: 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 additiona l useful information to measure operating performance and current and future liquidity when taken together with our financial results presented
Slide 30: 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 METRICS future performance. Our key operating and financial metrics may be calculated in a manner different than similar business metrics used b
Slide 31: 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