ACV Auctions (ACVA) Goldman Sachs Technology Communacopia and Technology Conference summary

Market overview and macro environment

• Dealer wholesale market is rebounding, with new car sales increasing and incentives averaging $4,000 per vehicle, driving more wholesale activity.

• Used car inventories are rising but remain below 2019 levels, signaling normalization in the trade-to-wholesale mix.

• The percentage of trades sent to wholesale channels is recovering from a low of 40% and is expected to drive market recovery over the next several years.

Addressable market and competitive landscape

• Dealer wholesale market contracted from over 10 million units in 2019 to high 7-8 million, expected to stabilize and grow in the coming year.

• Current market share is 9% nationwide, with significant regional variation; commercial segment is early-stage with less than 1% share.

• Expansion in commercial requires investment in land and reconditioning capabilities, with plans to grow from 10+ to 40 locations to reach 80% of the population.

Financial targets and margin drivers

• Medium-term targets include $1.3 billion in revenue and $325 million in adjusted EBITDA (25% margin), driven by 1.5 million units sold.

• Revenue margin is projected to rise from 53% to 60%, with fixed cost leverage in sales, R&D, and G&A supporting margin expansion.

• Free cash flow is expected to closely track adjusted EBITDA due to marketplace float offsetting CapEx and capitalized software.