ACV Auctions (ACVA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $171.3 million, up 44% year-over-year, exceeding the high end of guidance, with marketplace units at 198,354 and GMV at $2.5 billion.

• Adjusted EBITDA turned positive at $11.2 million, with margin expansion and non-GAAP net income of $8 million; GAAP net loss narrowed to $(16) million from $(18) million in Q3 2023.

• Four acquisitions in 2024 expanded offerings and geographic reach, supporting innovation in digital automotive marketplace and new product launches.

• Record performance in transportation and capital segments, with transportation revenue up 27% year-over-year and capital revenue up ~20% year-over-year.

• Company raised full-year 2024 guidance, citing strong market share gains, traction in dealer solutions, and continued investment in technology.

Financial highlights

• Q3 2024 total revenue: $171.3 million, up from $119.0 million in Q3 2023; Adjusted EBITDA: $11.2 million, up from $(3.7) million in Q3 2023.

• Marketplace and service revenue grew 49% year-over-year to $156 million; marketplace GMV was $2.5 billion, up 17% year-over-year.

• Cash and equivalents at quarter-end were $252.5 million, with operating cash flow for nine months at $68.6 million, up from $8.6 million prior year.

• Non-GAAP cost of revenue improved to 47% of revenue, and non-GAAP operating expense (ex. COR) improved to 49% of revenue.

• Net loss per share: $(0.10), improved from $(0.11) year-over-year.

Outlook and guidance

• FY24 revenue expected between $630 million and $634 million, representing 31%-32% year-over-year growth; Adjusted EBITDA expected at $25-$27 million.

• Q4 2024 revenue guidance is $152-$156 million, up 28%-32% year-over-year; Adjusted EBITDA expected at $2-$4 million.

• Guidance reflects a $2 million negative revenue and $1 million negative Adjusted EBITDA impact from recent hurricanes.

• Dealer wholesale volumes expected to be flat year-over-year in 2024, with normal seasonal patterns.

• Sufficient liquidity to support operations and growth initiatives for at least the next 12 months.