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A B2B marketplace for dealers keeps Q3 right in the middle of the road

A B2B marketplace for dealers keeps Q3 right in middle of the road

A B2B marketplace for used-car dealers drove home decent growth in the third quarter. For the third quarter ended Sept. 30, ACV Auctions Inc., achieved gross merchandise volume of $2.1 billion on its B2B marketplace. That’s about the same GMV as Q3 2022.

ACV Auctions is a Buffalo, New York-based B2B marketplace. On it, used-car dealers view, bid on, and purchase used-car inventory.

ACV Auctions B2B marketplace

But ACV Auctions’ B2B marketplace total revenue, including marketplace and service revenue, grew 13%. That’s an increase to $119 million from $105.4 million in the prior year. Net loss was $18.2 million compared with a net loss of $23.6 million in the third quarter of 2022.

“We sold 150,000 vehicles in the quarter, resulting in 13% year-over-year growth, reflecting further adoption of our marketplace solutions targeting dealer engagement,” CEO George Chamoun told analysts on an earnings call. GMV of $2.1 billion was flat year over year, reflecting continued moderation of wholesale market prices.”

ACV sees stronger growth ahead as the wholesale and retail market for used vehicles begins to normalize after inventory shortages in recent years, Chamoun said.

While volumes continue to lag pre-pandemic levels, inventories improved, which is key to supporting a sustained recovery in retail sales, trade and dealer wholesale supply,” he told analysts. “Used vehicle retail units modestly increased sequentially and year over year, but also remain well below historical levels as affordability issues continued to pressure consumer demand. In terms of vehicle sourcing, our data indicates that dealers retain a higher-than-normal percentage of trade for retail inventory.”

For the fourth quarter and the full year, ACV Auction B2B marketplace projects:

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