ACV Auctions (ACVA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $161 million, up 29% year-over-year, surpassing guidance and driven by strong marketplace and transportation growth.

• Adjusted EBITDA improved to $7.1 million from a loss in Q2 2023, with margin expansion and positive non-GAAP net income of $3 million.

• Marketplace units sold increased 22% year-over-year to 187,000, with GMV at $2.4 billion.

• Four acquisitions in H1 2024 expanded offerings and geographic reach, including Alliance Auto Auctions.

• Continued innovation in digital automotive marketplace, expanding product suite, data services, and technology initiatives.

Financial highlights

• Q2 2024 revenue was $161 million, up 29% year-over-year, with marketplace revenue up 30% and service revenue up 32%.

• Adjusted EBITDA was $7 million (4% margin), up from a loss in Q2 2023; non-GAAP net income was $3 million.

• Operating cash flow for H1 2024 was $47.5 million, up from $23.4 million in H1 2023; net of marketplace float, $14 million.

• Cash, equivalents, and marketable securities totaled $273 million as of June 30, 2024.

• Long-term debt stood at $110 million as of June 30, 2024.

Outlook and guidance

• Q3 2024 revenue expected at $158–$162 million, up 33%–36% year-over-year.

• Full-year 2024 revenue guidance raised to $615–$625 million, 28%–30% growth.

• Adjusted EBITDA for 2024 expected at $21–$25 million; non-GAAP net income $3–$8 million.

• Guidance assumes modest recovery in dealer wholesale market and normalization of conversion rates and price depreciation.

• Sufficient liquidity is anticipated to support operations and capital needs for at least the next 12 months.