ACVA Earnings Prediction
The chart below shows how ACVA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ACVA sees a +3.48% change in stock price 10 days leading up to the earnings, and a +13.02% change 10 days following the report. On the earnings day itself, the stock moves by -0.23%. This data can give you a slight idea of what to expect for the next quarter's release.
ACVA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
159.51M
34.75%
-6.90%
Gross Margin
45.95%
7.01%
-2.05%
Operating Margin
-15.89%
-29.72%
60.83%
Net Margin
-16.39%
-16.51%
75.11%
EPS
-0.16
-14.29%
60.00%
No Data Available
ACVA Earnings Analysis
ACV Auctions Inc Corporation (ACVA.O) Earnings Conference Call
Positive
Earnings Surprise Achieved: ACV Auctions Inc. beat earnings expectations with a reported EPS of $-0.01, surpassing expectations of $-0.15.
Q4 Revenue Exceeds Guidance: Q4 revenue of $160 million exceeded guidance, resulting in a full year revenue growth of 32%.
Adjusted EBITDA Profitability: The company achieved its first full year of adjusted EBITDA profitability, demonstrating strong financial performance.
Record Performance Contribution: ACV Transport and ACV Capital had record performance, contributing to overall revenue growth.
Market Share Expansion: The dealer wholesale business gained market share, with over half of U.S. dealers transacting on ACV's marketplace.
Vehicle Sales Growth: The company sold 183,000 vehicles in Q4 and 743,000 in 2024, marking a 24% growth in unit sales.
AI-Driven Pricing Optimization: ACV AI technology is enhancing pricing accuracy and driving higher conversion rates in the marketplace.
EBITDA Performance Exceeds Guidance: Adjusted EBITDA of $6 million exceeded guidance, with a 900 basis point improvement in adjusted EBITDA margin year-over-year.
Auction Revenue Growth: The auction and assurance revenue grew 40% year-over-year, reflecting strong unit growth and increased ARPU.
Strong Cash Position: The company ended Q4 with $270 million in cash and cash equivalents, indicating a strong capital structure.
Negative
Earnings Performance Analysis: Despite beating earnings expectations, the reported EPS of $-0.01 indicates that the company is still operating at a loss, although it is an improvement from the expected $-0.15.
Used-Vehicle Market Challenges: The used-vehicle market is described as 'treading water' with sales declining modestly year-over-year, indicating a challenging environment for growth in this segment.
Flat Dealer Wholesale Volumes: Dealer wholesale volumes were flat in 2024, and the outlook for 2025 suggests they will remain approximately flat year-over-year, which could limit growth opportunities.
Retail Volume Recovery Challenges: Consumer affordability is cited as a primary headwind to retail volume recovery, suggesting that economic conditions are impacting sales negatively.
Used-Vehicle Inventory Shortage: Used-vehicle inventory is about 25% below normal levels, which could constrain sales and affect the company's performance in the used-vehicle market.
Muted Market Outlook: The company acknowledges a muted outlook for the dealer-wholesale market, which may hinder overall growth prospects in the near term.
ACVA FAQs
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ACVA Earning Call Sentiment
ACV Auctions Inc. (NASDAQ:ACVA) Q4 2024 Earnings Call Transcript
ACVA.O
-5.41%Positive
The earnings call reveals strong financial performance, including revenue growth and improved margins. The company raised its revenue guidance and achieved a positive adjusted EBITDA. The Q&A section highlights consistent market share gains and optimistic views on future growth, despite management's vague responses on competition and tariffs. The company's strategic initiatives and shareholder return plans further support a positive sentiment. Given the company's market cap, the stock price is likely to see a moderate positive movement in the next two weeks.
