ACV Auctions Reports Second Quarter Financial Results
Intellectia.AI Updated: 2024-08-08
ACV Auctions Reports Second Quarter Financial Results
Buffalo, NY – August 7, 2024 – ACV (NASDAQ: ACVA), a leading digital automotive marketplace and data services partner, reported its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Q1 2024 | QoQ Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | $161M | $125M | +29% | $153M | +5.2% | $156.24M |
| GAAP Net Income (Loss) | ($17M) | ($16M) | -6.25% | ($18M) | +5.6% | Not Provided |
| Non-GAAP Net Income (Loss) | $3M | ($2M) | N/A | $2M | +50% | Not Provided |
| Adjusted EBITDA | $7M | ($4M) | N/A | $5M | +40% | Not Provided |
| Earnings Per Share (EPS) | Not Provided | Not Provided | Not Provided | Not Provided | Not Provided | ($0.11) |
Interpretation: ACV Auctions demonstrated strong financial performance in Q2 2024 with a total revenue of $161 million, surpassing the consensus estimate of $156.24 million. The company reported a GAAP net loss of $17 million, slightly higher than the $16 million loss in the previous year but improved from a $18 million loss in the first quarter. Adjusted EBITDA showed significant growth to $7 million compared to a loss of $4 million in Q2 2023, reflecting improved operational efficiencies.
Revenue Performance Across Major Segments
| Segment | Q2 2024 | Q2 2023 | YoY Change | Previous Guidance (if provided) |
|---|---|---|---|---|
| Marketplace and Service Revenue | $144M | $109M | +32% | Not Provided |
| Marketplace GMV | $2.4B | $2.42B | -1% | Not Provided |
| Marketplace Units | 186,526 | 152,892 | +22% | Not Provided |
Interpretation: The Marketplace and Service Revenue reached $144 million, a 32% increase year-over-year, driven by a 22% increase in Marketplace Units to 186,526. However, the total Marketplace GMV slightly decreased by 1% to $2.4 billion, indicating a potential decline in the average transaction value.
Key Operational Data
| Metric | Q2 2024 | Q2 2023 | YoY Change | Q1 2024 | QoQ Change |
|---|---|---|---|---|---|
| Marketplace GMV | $2.4B | $2.42B | -1% | $2.38B | +0.84% |
| Marketplace Units | 186,526 | 152,892 | +22% | 178,450 | +4.5% |
Interpretation: Operational data highlights indicate consistent growth in Marketplace Units and steady Marketplace GMV performance, reflecting robust engagement within the digital automotive marketplace.
Comments from Company's Officers
George Chamoun, CEO of ACV, stated, "We are very pleased with our second quarter results, delivering revenue above the high-end of our guidance range, continued margin expansion, and strong sequential growth in Adjusted EBITDA. Our strong market position resulted in continued share gains and accelerated revenue growth in the quarter."
Dividends or Share Repurchase Program
There were no mentions of any announced dividends or share repurchase programs in the earnings release.
Forward Guidance
For the third quarter of 2024, ACV expects total revenue of $158 million to $162 million, GAAP net income loss of $22 million to $20 million, non-GAAP net income of $1 million to $3 million, and Adjusted EBITDA of $6 million to $8 million. For the full year 2024, the company forecasts total revenue of $615 million to $625 million, GAAP net income loss of $85 million to $80 million, non-GAAP net income of $3 million to $8 million, and Adjusted EBITDA of $21 million to $25 million.
Stock Price Movement
Following the earnings release, ACV's stock price experienced a decline of 1.72%.
In summary, ACV Auctions delivered strong financial performance in Q2 2024, exceeding revenue expectations and showing significant improvements in non-GAAP net income and Adjusted EBITDA. The company remains optimistic about its growth prospects, supported by robust forward guidance for the third quarter and full-year 2024.