Slide 1: Q1-23 Earnings Presentation
Q1-23 EARNINGS PRESENTATION M A Y _ 1 0 _ 2 0 2 3
Slide 2: Forward Looking Statements and Non-GAAP Information
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 regarding ACV’s avenues for STATEMENTS long term growth
Slide 3: Highlights
01 HIGHLIGHTS George Chamoun CHIEF EXECUTIVE OFFICER Q 1 - 2 3 _ E A R N I N G S M A Y _ 1 0 _ 2 0 2 3
Slide 4: Highlights
HIGHLIGHTS Q1-22 Q1-23 $103M Revenue $120M YoY Revenue 49% Growth 16% $2.4B GMV $2.4B Marketplace 140K Units 152K 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 growth at the leading digitally native, data-driven competitive moat and to create additional scale with attractive unit econo
Slide 6: Growth
02 GROWTH Q 1 - 2 3 _ E A R N I N G S M A Y _ 1 0 _ 2 0 2 3
Slide 7: Market Backdrop Improved in Q1-23
Market Backdrop Improved in Q1-23 New light-vehicle SAAR increased 8% YoY New light-vehicle inventories increased QoQ Used retail declined 3% YoY due to affordability challenges Wholesale prices stabilized driving strong conversion rates Source: Bureau of Economic Analysis, NADA, Black Book 7
Slide 8: Continued Market Share Gains
GROWTH Continued Market Share Gains Q1-23 vs. Q1-22 RETAIL DEALER WHOLESALE (M Units) ACV MARKET SHARE ACV Unit 8% Growth YoY 3.0 9% Dealer (11%) Wholesale Market YoY ACV Market Share 19% Expansion YoY - 0% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Source: Company
Slide 9: Transportation
GROWTH 80%+ Transportation AUTO DISPATCHED 50%+ attach rate Record cycle-time 80%+ Auto Dispatched Mid-teens revenue margin 9 9
Slide 10: ACV Capital
GROWTH ACV Capital 100%+ YOY REVENUE 85%+ Exceeded 10% attach rate for first time, GROWTH along with YoY RPU growth YOY LOAN VOLUME GROWTH Investing to drive dealer engagement 13%+ YOY RPU GROWTH and scale 10 10
Slide 11: Innovation
03 INNOVATION Q 1 - 2 3 _ E A R N I N G S M A Y _ 1 0 _ 2 0 2 3
Slide 12: Innovation for Growth
INNOVATION Innovation for Growth • Private Marketplaces • Drivably and Monk • New auction formats • Enhanced pricing engine • Marketplace 2.0 • S.A.M. • ACV Capital Portal 12
Slide 13: Innovation for Scale
INNOVATION Innovation for Scale “Copilot” • Mobile Carrier App • Transport lane pricing • Apex • Copilot CATALYTIC OIL LEAK RUST DETECTION • ArbGuard CONVERTERS • AI-powered Virtual Lift apps • Tech-enabled title processing
Slide 14: Scale
04 SCALE Bill Zerella CHIEF FINANCIAL OFFICER Q 1 - 2 3 _ E A R N I N G S M A Y _ 1 0 _ 2 0 2 3
Slide 15: Strong Q1-23 Performance
SCALE Strong Q1-23 Performance REVENUE ($M) % YOY GROWTH ADJ. EBITDA MARGIN ADJ. EBITDA ($M) ($18) ($6) ($12) – ($14) 49% 16% $120 $107 - $110 (5%) $103 (11%) – (13%) (17%) Q1-22 Q1-23 Q1-23 Q1-22 Q1-23 Q1-23 Guidance Guidance Note: Refer to the Appendix for information on the GAAP to non-GAAP recon
Slide 16: Diversified Revenue Streams
SCALE Diversified Revenue Streams $120M Revenue Breakdown ($M) $103M 7% SAAS & DATA SERVICES 2% YOY SAAS PRODUCTS 8% DATA-ENABLED SOLUTIONS 35% 36% 17% $69M YOY MARKETPLACE SERVICES 7% TRANSPORTATION CAPITAL 28% 57% 57% 17% AUCTION & ASSURANCE YOY AUCTION FEES 65% GO GREEN ASSURANCE Q1-21 Q1-22 Q1-2
Slide 17: Delivering Margin Improvement and Managing OpEx
SCALE Delivering Margin Improvement and Managing OpEx NON-GAAP COST OF REVENUE NON-GAAP OPERATING EXPENSE (EX. COR) % OF REVENUE YOY GROWTH 59% 50% 42% 9% Q1-22 Q1-23 Q1-22 Q1-23 Note: Refer to the Appendix for information on the GAAP to non-GAAP reconciliations 17
Slide 18: Balancing Growth and Investments
SCALE Balancing Growth and Investments ADJ. EBITDA MARGIN ADJ. EBITDA ($M) NON-GAAP OPERATING EXPENSE (EX. COR) ($M) % YOY GROWTH ($31) ($44) ($56) ($29) 56% 22% ~9% $271 (6%) $249 $203 (12%) (13%) $130 (15%) 2020 2021 2022 2023G 2020 2021 2022 2023G Note: 2023 refers to the midpoint of guidance Ref
Slide 19: Strong Capital Position and Cash Flow
SCALE Strong Capital Position and Cash Flow OPERATING CASH FLOW ($M) ($M) As of Mar 31, 2023 Cash, Cash Equivalents and $526 Marketable Securities (Includes ~$188M of auction float) $43 ACV Capital Receivables $104 Long Term Debt (ACV Capital related) $96 ($31) Total Assets $995 Total Liabilities $5
Slide 20: Guidance
SCALE Guidance Assumptions Q2-23 2023 (dollars in millions) Revenue $117 to $120 $468 to $478 New-vehicle supply remains constrained near-term, then improves as production YoY Growth 2% to 4% 11% to 13% and inventory continue to recover GAAP Net Income (Loss) ($21) to ($23) ($87) to ($92) Non-GAAP N
Slide 21: 2026 Financial Targets
SCALE 2026 Financial Targets $1.3B REVENUE $325M ADJ. EBITDA ADJ. EBITDA 25% MARGIN 21
Slide 22: 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 Expanding Addressable Market 04 Driving Profitable Growth Through Scalable Business Model 05 Building World Class Team with People-Fi
Slide 23: Q&A
05 Q&A Q 1 - 2 3 _ E A R N I N G S M A Y _ 1 0 _ 2 0 2 3
Slide 24: Appendix
06 APPENDIX Q 1 - 2 3 _ E A R N I N G S M A Y _ 1 0 _ 2 0 2 3
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) 2019 2020 2021 Q1-22 Q2-22 Q3-22 Q4-22 2022 Q1-23 GAAP Net Income (Loss) ($77.2) ($41.0) ($78.2) ($29.5) ($24.5) ($23.7) ($24.5) ($102.2) ($18.2
Slide 26: GAAP to Non-GAAP Operating Cost Reconciliation
GAAP to Non-GAAP Operating Cost Reconciliation Reconciliation GAAP Operating Expense to Non-GAAP Operating Expense Q1-22 Q1-23 GAAP Cost of Revenue $60.9 $59.7 Non-GAAP Adjustments: Stock Based Compensation ($0.1) ($0.2) Non-GAAP Cost of Revenue $60.8 $59.5 GAAP Total Operating Costs (exc. COR) $71.
Slide 27: Information About Non-GAAP Financial Measures
INFORMATION ABOUT ACV provides supplemental non-GAAP financial measures to its financial results. We use these non-GAAP financial measures, and we believe that they assist our investors to make period-to-period comparisons of our operating performance because they provide a view of our operating NON
Slide 28: Information About Non-GAAP Financial Measures (Con't)
INFORMATION ABOUT 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 in NON-GAA
Slide 29: 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 future FINANCIAL METRICS performance. Our key operating and financial metrics may be calculated in a manner different than similar business metrics used b
Slide 30: 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 Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning our financial guidance for t