ACV Announces First Quarter 2025 Results

Strong Revenue Growth with Adjusted EBITDA Exceeding High-End of GuidanceReiterates 2025 Guidance First quarter revenue of $183 millionFirst quarter GAAP net income (loss) of ($15) millionFirst quarter non-GAAP net income of $7 millionFirst quarter Adjusted EBITDA of $14 million Expects 2025 revenue of $765 million to $785 million, growth of 20% to 23% YoY, GAAP net income (loss) of ($60) million to ($50) million and Adjusted EBITDA of $65 million to $75 million BUFFALO, May 07, 2025 (GLOBE NEWSWIRE) -- ACV (NYSE: ACVA), a leading digital automotive marketplace and data services partner for dealers and commercial clients, today reported results for its first quarter ended March 31, 2025. “We are very pleased with our first quarter results. We delivered strong revenue growth and Adjusted EBITDA above the high-end of our guidance range, along with continued margin expansion. ACV's leading market position resulted in additional share gains, our suite of dealer solutions gained further market traction, and we executed on initiatives to support our commercial wholesale strategy,” said George Chamoun, CEO of ACV. “The dealer wholesale market grew modestly year-over-year during the quarter, but remained well below historical levels primarily due to the ongoing shortage of used vehicle inventory, and also challenging market conditions in February. While there are evolving crosscurrents in the macroeconomic environment, we believe ACV remains well positioned to deliver sustainable growth in dealer wholesale, execute on our emerging commercial wholesale strategy, and scale our business model,” concluded Chamoun. First Quarter 2025 Highlights Revenue of $183 million, an increase of 25% year over yearMarketplace and Service Revenue of $166 million, an increase of 28% year over yearMarketplace GMV of $2.6 billion, an increase of 13% year over yearMarketplace Units of 208,025, an increase of 19% year over yearGAAP net income (loss) of ($15) million, compared to GAAP net income (loss) of ($20) million in the first quarter of 2024.Non-GAAP net income of $7 million, compared to non-GAAP net income (loss) of $1 million in the first quarter of 2024.Adjusted EBITDA of $14 million, compared to Adjusted EBITDA of $4 million in the first quarter of 2024 Second Quarter and Full-Year 2025 Guidance Based on information as of today, ACV is providing the following guidance: Second Quarter of 2025: Total revenue of $193 million to $198 million, an increase of 20% to 23% year over yearGAAP net income (loss) of ($13) million to ($11) millionNon-GAAP net income of $11 million to $13 millionAdjusted EBITDA of $18 million to $20 million Full-Year 2025: Total revenue of $765 million to $785 million, an increase of 20% to 23% year over yearGAAP net income (loss) of ($60) million to ($50) millionNon-GAAP net income of $33 million to $43 millionAdjusted EBITDA of $65 million to $75 million Our financial guidance includes the following assumptions: The dealer wholesale market is expected to be approximately flat year over year in 2025.Conversion rates and wholesale price depreciation expected to follow normal seasonal patterns.2025 Revenue growth is expected to outpace Non-GAAP Operating Expense growth (excluding Cost of Revenue and Depreciation and Amortization) by approximately 500 basis points.Second quarter non-GAAP net income guidance excludes approximately $20 million of stock-based compensation expense and approximately $3 million of intangible amortization.Full-year non-GAAP net income guidance excludes approximately $74 million of stock-based compensation expense and $10 million of intangible amortization. ACV’s First Quarter Results Conference Call ACV will host a conference call and live webcast today, May 7, 2025, at 5:00 p.m. ET to discuss the financial results. To access the live conference call participants are invited to dial 877-704-4453 (international callers please dial 1-201-389-0920) approximately 10 minutes prior to the start of the call. A live webcast and replay of the call will be available on the Company’s investor relations website at https://investors.acvauto.com/. Participants are encouraged to join the webcast unless asking a question. About ACV Auctions ACV is on a mission to transform the automotive industry by building the most trusted and efficient digital marketplace and data solutions for sourcing, selling and managing used vehicles with transparency and comprehensive insights that were once unimaginable. ACV offerings include ACV Auctions, ACV Transportation, ACV Capital, ACV MAX, True360, and ClearCar. For more information about ACV, visit www.acvauto.com. Information About Non-GAAP Financial Measures ACV provides supplemental non-GAAP financial measures to its financial results. We use these non-GAAP financial measures, and we believe that they assist our investors to make period-to-period comparisons of our operating performance because they provide a view of our operating results without items that are not, in our view, indicative of our operating results. These non-GAAP financial measures should not be construed as an alternative to GAAP results as the items excluded from the non-GAAP financial measures often have a material impact on our operating results, certain of those items are recurring, and others often recur. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results. Non-GAAP Financial Measures Adjusted EBITDA is a financial measure that is not presented in accordance with GAAP. We believe that Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes. We define Adjusted EBITDA as net loss, adjusted to exclude: depreciation and amortization; stock-based compensation expense; interest (income) expense; provision for income taxes; and other one-time non-recurring items, when applicable, such as acquisition-related and restructuring expenses. Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of these limitations include that (1) it does not properly reflect capital commitments to be paid in the future; (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures; (3) it does not consider the impact of stock-based compensation expense, (4) it does not reflect other non-operating income and expenses, including interest income and expense, (5) it does not consider the impact of any contingent consideration liability valuation adjustments, (6) it does not reflect tax payments that may represent a reduction in cash available to us,(7) it does not include the amortization of acquired intangible assets but it does include the revenue that these acquired intangible assets contribute to the enterprise, and (8) it does not reflect other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA alongside other financial measures, including our net loss and other results stated in accordance with GAAP. Non-GAAP net income (loss), and non-GAAP operating expenses, are financial measures that are not presented in accordance with GAAP, provide investors with additional useful information to measure operating performance and current and future liquidity when taken together with our financial results presented in accordance with GAAP. By providing this information, we believe management and the users of the financial statements are better able to understand the financial results of what we consider to be our continuing operations. We define non-GAAP net income (loss) as net income (loss), adjusted to exclude: stock-based compensation expense, amortization of acquired intangible assets, and other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses. We define non-GAAP operating expenses as operating expenses adjusted to exclude the same items that are excluded from non-GAAP net income (loss). In the calculation of non-GAAP net income (loss) and non-GAAP operating expenses we exclude stock-based compensation expense because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact our non-cash expense. We believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between our operating results from period to period. We exclude amortization of acquired intangible assets from the calculation of non-GAAP net income (loss) and non-GAAP operating expenses. We believe that excluding the impact of amortization of acquired intangible assets allows for more meaningful comparisons between operating results from period to period as the underlying intangible assets are valued at the time of acquisition and are amortized over several years after the acquisition. We exclude contingent consideration liability valuation adjustments associated with the purchase consideration of transactions accounted for as business combinations. We also exclude certain other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses, because we do not consider such amounts to be part of our ongoing operations nor are they comparable to prior period nor predictive of future results. Non-GAAP net income (loss) and non-GAAP operating expenses are presented for supplemental informational purposes only, have limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of these limitations include that: (1) they do not consider the impact of stock-based compensation expense; (2) although amortization is a non-cash charge, the underlying assets may need to be replaced and non-GAAP net income (loss) and non-GAAP net income do not reflect these capital expenditures; (3) they do not consider the impact of any contingent consideration liability valuation adjustments; (4) they do not include the amortization of acquired intangible assets but non-GAAP net income (loss) does include the revenue that these acquired intangible assets contribute to the enterprise; and (5) they do not consider the impact of other one-time charges, such as acquisition-related and restructuring expenses, which could be material to the results of our operations. In addition, our use of non-GAAP net income (loss) and non-GAAP operating expenses may not be comparable to similarly titled measures of other companies because they may not calculate non-GAAP net income (loss) and non-GAAP operating expenses in the same manner, limiting their usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider non-GAAP net income (loss) and non-GAAP operating expenses alongside other financial measures, including our net loss, operating expenses, and other results stated in accordance with GAAP. Information About Operating and Financial Metrics We regularly monitor the following operating and financial metrics in order to measure our current performance and estimate our future performance. Our key operating and financial metrics may be calculated in a manner different than similar business metrics used by other companies. Operating and Financial Metrics Marketplace GMV - Marketplace GMV is primarily driven by the volume and dollar value of Marketplace Unit transactions. We believe that Marketplace GMV acts as an indicator of our success, signaling satisfaction of dealers and buyers, and the health, scale, and growth of our business. We define Marketplace GMV as the total dollar value of vehicles transacted within the applicable period, excluding any auction and ancillary fees. Marketplace Units - Marketplace Units is a key indicator of our potential for growth in Marketplace GMV and revenue. It demonstrates the overall engagement of our customers and our market share of wholesale transactions in the United States. We define Marketplace Units as the number of vehicles transacted within the applicable period. Marketplace Units transacted includes any vehicle that successfully reaches sold status, even if the auction is subsequently unwound, meaning the buyer or seller does not complete the transaction. These instances have been immaterial to date. Marketplace Units excludes vehicles that were inspected by ACV, but not sold. Marketplace Units have generally increased over time as we have expanded our territory coverage, added new dealer partners and increased our share of wholesale transactions from existing customers. Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning our financial guidance for the fourth quarter of 2024 and the full year of 2024. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions. You should not rely on forward-looking statements as predictions of future events. The forward-looking statements contained in this presentation are based on ACV’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties and changes in circumstances that may cause ACV’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. These risks and uncertainties include, but are not limited to: (1) our history of operating losses; (2) our limited operating history; (3) our ability to effectively manage our growth; (4) our ability to grow the number of participants on our marketplace platform; (5) general market, political, economic, and business conditions including any possible impact from new, reinstated or adjusted tariffs; (6) our ability to acquire new customers and successfully retain existing customers; (7) our ability to effectively develop and expand our sales and marketing capabilities; (8) our ability to successfully introduce new products and services; (9) breaches in our security measures, unauthorized access to our marketplace platform, our data, or our customers’ or other users’ personal data; (10) risk of interruptions or performance problems associated with our products and platform capabilities; (11) our ability to adapt and respond to rapidly changing technology or customer needs; (12) our ability to compete effectively with existing competitors and new market entrants; (13) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business in the United States and other jurisdictions where we elect to do business; (14) the impact that economic conditions could have on our or our customers’ businesses, financial condition and results of operations; and (15) the impact of such economic conditions in the wholesale dealer market included in our guidance for the second quarter of 2025 and full year 2025, and the related impact on the performance of our marketplace and our operating expenses, stock-based compensation expense and intangible amortization. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in the section entitled “Risk Factors” in our Form 10-K for the year ended December 31, 2024, filed with the SEC on February 19, 2025. Additional information will be made available in other filings and reports that we may file from time to time with the SEC. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law. Investor Contact: Tim Foxtfox@acvauctions.com Media Contact: Maura Dugganmduggan@acvauctions.com ACV AUCTIONS INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(in thousands, except per share data) Three months ended March 31, 2025 2024 Revenue: Marketplace and service revenue$165,937 $129,814 Customer assurance revenue 16,760 15,875 Total revenue 182,697 145,689 Operating expenses: Marketplace and service cost of revenue (excluding depreciation & amortization) 69,402 55,693 Customer assurance cost of revenue (excluding depreciation & amortization) 13,977 12,814 Operations and technology 44,190 38,069 Selling, general, and administrative 59,018 53,853 Depreciation and amortization 10,541 7,787 Total operating expenses 197,128 168,216 Loss from operations (14,431) (22,527)Other income (expense): Interest income 1,889 3,031 Interest expense (1,910) (535)Total other income (expense) (21) 2,496 Loss before income taxes (14,452) (20,031)Provision for income taxes 365 440 Net loss$(14,817) $(20,471)Weighted-average shares - basic and diluted 168,347 162,890 Net loss per share - basic and diluted$(0.09) $(0.13) ACV AUCTIONS INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(in thousands) March 31,2025 December 31,2024Assets Current Assets: Cash and cash equivalents$291,885 $224,065 Marketable securities 49,927 46,036 Trade receivables (net of allowance of $5,500 and $6,372) 243,645 168,770 Finance receivables (net of allowance of $4,550 and $4,191) 156,714 139,045 Other current assets 17,724 15,281 Total current assets 759,895 593,197 Property and equipment (net of accumulated depreciation of $5,556 and $5,227) 8,468 7,625 Goodwill 181,431 180,478 Acquired intangible assets (net of amortization of $31,947 and $28,972) 88,278 90,816 Capitalized software (net of amortization of $45,404 and $38,499) 72,095 68,571 Other assets 42,172 43,462 Total assets$1,152,339 $984,149 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable$470,327 $345,605 Accrued payroll 13,087 16,725 Accrued other liabilities 23,681 18,836 Total current liabilities 507,095 381,166 Long-term debt 166,500 123,000 Other long-term liabilities 39,174 39,979 Total liabilities 712,769 544,145 Commitments and Contingencies Stockholders' Equity: Preferred Stock — — Common Stock - Class A 171 168 Common Stock - Class B — — Additional paid-in capital 958,047 944,891 Accumulated deficit (517,132) (502,315)Accumulated other comprehensive loss (1,516) (2,740)Total stockholders' equity 439,570 440,004 Total liabilities and stockholders' equity$1,152,339 $984,149 ACV AUCTIONS INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(in thousands) Three months ended March 31, 2025 2024 Cash Flows from Operating Activities Net loss$(14,817) $(20,471)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 10,547 7,802 Stock-based compensation expense, net of amounts capitalized 16,574 14,830 Provision for bad debt 1,603 2,097 Other non-cash, net 704 356 Changes in operating assets and liabilities, net of effects from purchases of businesses: Trade receivables (75,714) (33,676)Other operating assets (2,616) (289)Accounts payable 122,834 68,217 Other operating liabilities 7,509 4,109 Net cash provided by operating activities 66,624 42,975 Cash Flows from Investing Activities Net increase in finance receivables (17,276) (1,047)Purchases of property and equipment (1,346) (1,075)Capitalization of software costs (8,731) (7,513)Purchases of marketable securities (10,153) (2,902)Maturities and redemptions of marketable securities 6,638 30,030 Sales of marketable securities — 70,020 Acquisition of businesses (net of cash acquired) — (108,453)Net cash used in investing activities (30,868) (20,940)Cash Flows from Financing Activities Proceeds from long term debt 100,000 190,000 Payments towards long term debt (56,500) (180,000)Proceeds from exercise of stock options 382 2,401 Payment of RSU tax withholdings in exchange for common shares surrendered by RSU holders (11,808) (7,090)Other financing activities (42) (23)Net cash provided by financing activities 32,032 5,288 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 32 (49)Net increase in cash, cash equivalents, and restricted cash 67,820 27,274 Cash, cash equivalents, and restricted cash, beginning of period 224,065 182,571 Cash, cash equivalents, and restricted cash, end of period$291,885 $209,845 The following table presents a reconciliation of non-GAAP net income (loss) to net income (loss), the most directly comparable financial measure stated in accordance with GAAP, for the periods presented: Three months ended March 31, 2025 2024 Net income (loss)$(14,817) $(20,471)Stock-based compensation 16,574 14,830 Amortization of acquired intangible assets 2,773 2,213 Amortization of capitalized stock based compensation 1,463 928 Acquisition-related costs 403 2,120 Litigation-related costs(1) 1,100 1,553 Other — 45 Non-GAAP Net income (loss)$7,496 $1,218 (1)Litigation-related costs are related to an anti-competition case which we do not consider to be representative of our underlying operating performance The following table presents a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable financial measure stated in accordance with GAAP, for the periods presented: Three months ended March 31, 2025 2024 Adjusted EBITDA Reconciliation Net income (loss)$(14,817) $(20,471)Depreciation and amortization 10,546 7,802 Stock-based compensation 16,574 14,830 Interest expense (income) 21 (2,496)Provision for income taxes 365 440 Acquisition-related costs 403 2,120 Litigation-related costs(1) 1,100 1,553 Other (284) 494 Adjusted EBITDA$13,908 $4,272 (1) Litigation-related costs are related to an anti-competition case which we do not consider to be representative of our underlying operating performance The following table presents a reconciliation of Non-GAAP total operating expenses (excluding cost of revenue) to GAAP total operating expenses, the most directly comparable financial measure stated in accordance with GAAP, for the periods presented: Three months ended March 31, 2025 2024 Total operating expenses$197,128 $168,216 Non-GAAP Adjustments: Marketplace and service cost of revenue (excluding depreciation & amortization) 69,402 55,693 Customer assurance cost of revenue (excluding depreciation & amortization) 13,977 12,814 Stock-based compensation 16,269 14,580 Amortization of acquired intangible assets 2,773 2,213 Amortization of capitalized stock-based compensation 1,463 928 Acquisition-related costs 403 2,120 Other 1,100 1,598 Non-GAAP Total operating expenses (excluding cost of revenue)$91,741 $78,270 The following table presents a reconciliation of non-GAAP net income (loss) to GAAP net income (loss), the most directly comparable financial measure stated in accordance with GAAP, for the periods presented (in millions): Three months endedJune 30, 2025 Year endedDecember 31, 2025Non-GAAP net income (loss) to net income (loss) guidance Reconciliation Net income (loss) ($13) - ($11) ($60) - ($50) Non-GAAP Adjustments: Stock-based compensation$20 $74 Intangible amortization$3 $10 Amortization of capitalized stock-based compensation$2 $7 Other — $2 Non-GAAP net income $11 - $13 $33 - $43

ACV Announces First Quarter 2025 Results

FAQ

Why Bullish?

How important is it?

Why Short Term?

Related Companies

Related News