ACV Auctions (ACVA) The Citigroup Global TMT Conference summary

Executive leadership and strategic focus

• Strategic finance and IR functions have expanded to include annual planning, midterm targets, and growth investments, both organic and through M&A.

• Focus on aligning financial models with investor expectations and driving growth in new business adjacencies.

• Commercial segment now represents 5% of business, seen as a medium- to long-term growth area.

Market and industry trends

• New vehicle inventories are normalizing, OEMs are increasing incentives, and used supply remains below pre-COVID levels.

• Dealer wholesale market is still 25% below pre-pandemic volumes, but new vehicle sales are recovering, expected at 15.8–16 million units this year.

• Used car prices remain 25–30% above pre-COVID levels, with high interest rates suppressing demand, but normalization is expected as rates fall.

• Average age of used vehicles in the U.S. is at a record 13 years, indicating pent-up replacement demand.

Business performance and market share

• Revenue has tripled since 2020 despite a 25% market contraction, driven by digital transformation and market share gains.

• Achieved 22% unit growth in Q2, with market share gains estimated at 16–18% year over year.

• Conversion rates for auctions are in the mid-50% range, with some mature territories reaching mid-70%.

• Black Book data shows wholesale prices stabilizing and conversion rates strong, with July marking the first positive month in three years.