Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation August 8, 2024
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: Second Quarter 2024
Financial Highlights: Second Quarter 2024 Revenue ($ millions) GAAP Gross Profit ($ millions) Non-GAAP Adjusted EBITDA1 ($ millions) % YoY (53%) (49%) (22%) (7%) (9%) % Margin 68% 75% 75% 81% 83% % Margin 19% 22% 27% 23% 25% 239.7 219.4 223.1 218.7 215.8 -66% 68.8 40.9 28.6 23.5 61.2 55.6 41.5 YoY 1
Slide 4: Drivers of Value Creation: Second Quarter 2024 Progress
Drivers of Value Creation: Second Quarter 2024 Progress More Value Better Consumer Transaction Rebuild & Integrate to Dealers Experience Enablement Digital Wholesale ● U.S. add-on product adoption ● App contributed 28% of leads ● Digital Deal dealers +157% YoY ● Bolstered go-to-market and +37% YoY t
Slide 5: Double-Digit QARSD Growth; Strong Dealer Engagement and Retention
Double-Digit QARSD Growth; Strong Dealer Engagement and Retention QARSD1 Paying Dealers1 +14.3% $5,664 $5,848 YoY +255 $5,317 $5,503 $5,116 31,097 31,191 30,935 31,175 31,352 Dealers $1,882 $1,935 YoY $1,721 $1,773 $1,610 6,877 6,823 6,617 6,756 6,906 $6,332 $6,532 $6,702 $6,942 $6,110 24,220 24,368
Slide 6: Market-leading consumer experience
Market-leading consumer experience U.S. Average Monthly Visitors1 2 Average Monthly Sessions3 56% (millions) (millions) More average monthly visitors than our closest competitor2 47% 108.0 Of monthly unique visitors do not 101.5 99.9 101.3 visit our competitors’ sites4 93.0 19.7 17.1 16.0 20.4 16.2
Slide 7: Marketplace (U.S. Segment & Other) Q2 2024 Results
Marketplace (U.S. Segment & Other) Q2 2024 Results Revenue Non-GAAP Gross Profit1 +17.0% ($ millions) ($ millions) $182 YoY $173 $168 $163 +14.2% $156 $195 YoY $187 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 $182 % Margin 91% 92% 92% 92% 93% $178 $171 Adjusted EBITDA1 ($ millions) $62 $61 $55 +49.2% $51 YoY $41
Slide 8: Digital Wholesale Q2 2024 Results
Digital Wholesale Q2 2024 Results Revenue Non-GAAP Gross Profit (Loss)1 ($ millions) ($ millions) $14 $7 $7 $69 $3 $1 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 % Margin 20% 16% 17% 11% 3% $42 $41 Adjusted EBITDA1 $29 ($ millions) $24 $4 ($1) ($3) ($4) ($6) Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q
Slide 9: Third Quarter 2024 Outlook
Third Quarter 2024 Outlook Q3’24 Total Revenue $212 million - $232 million Marketplace Revenue $199 million - $204 million Non-GAAP Consolidated Adjusted EBITDA $56 million - $64 million Non-GAAP Earnings Per Share $0.38 - $0.44 The third quarter 2024 non-GAAP EPS calculation assumes 105.0 million d
Slide 10: Appendix
Appendix
Slide 11: Digital Wholesale Platform Transaction Volume
Digital Wholesale Platform Transaction Volume Gross Merchandise Sales (GMS)1 Total Transactions2 ($ millions) $750 22,000 20,793 $600 $575 16,500 13,562 13,558 $450 $350 11,000 10,302 $335 8,778 $300 $250 $215 5,500 $150 $0 0 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 1. We define G
Slide 12: Marketplace GAAP to Non-GAAP Gross Profit and Gross Margin Reconciliation
Marketplace (U.S. Marketplace Segment & Other) GAAP to Non-GAAP Gross Profit and Non-GAAP Gross Margin Reconciliation ($ thousands) Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 GAAP U.S. Marketplace Segment Revenue $ 158,443 $ 164,323 $ 168,897 $ 172,988 $ 180,052 GAAP Other Revenue 12,507 13,586 13,353 14,231 15,
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) Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 GAAP Wholesale Revenue $ 31,952 $ 21,735 $ 22,035 $ 16,125 $ 13,119 GAAP Product Revenue 36,835 19,775 18,838 12,452 10,406 GAAP Digital Wholesale Revenue $ 68,
Slide 14: Non-GAAP Marketplace Adjusted EBITDA Reconciliation
Non-GAAP Marketplace (U.S. Marketplace Segment & Other) Adjusted EBITDA Reconciliation ($ thousands) Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 U.S. Marketplace Segment Income from Operations $ 24,619 $ 33,285 $ 43,281 $ 34,217 $ 42,043 Other (Loss) Income from Operations (574) 1,462 1,653 2,407 2,531 GAAP Marke
Slide 15: Non-GAAP Digital Wholesale Adjusted EBITDA Reconciliation
Non-GAAP Digital Wholesale Adjusted EBITDA Reconciliation ($ thousands) Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 GAAP Digital Wholesale Loss from Operations $ (6,307) $ (11,652) $ (67,199) $ (10,340) $ (138,158) Impact of Depreciation and Amortization 8,701 9,334 9,537 4,281 3,436 Impact of Goodwill and Other
Slide 16: Non-GAAP Consolidated Adjusted EBITDA Reconciliation
Non-GAAP Consolidated Adjusted EBITDA Reconciliation ($ thousands) Q2’23 Q3’23 Q4'23 Q1’24 Q2’24 GAAP Consolidated Net Income $ 13,817 $ 18,973 $ (22,603) $ 21,301 $ (68,721) Impact of Depreciation and Amortization 11,667 12,470 12,761 7,481 5,663 Impact of Goodwill and Other Long-Lived Asset Impair