The financial onramp to first-quarter earnings was good for ACV Auctions.
But the road ahead may get bumpier for the motor vehicle online marketplace and data services company.
For the first quarter ended March 31, ACV posted an increase of 21.7% for revenue of $145.68 million. That’s up from $119.62 million in the first quarter of 2023.
Marketplace and service revenue grew year over year by 23.8% to $129.81 million, up from $104.86 million in Q1 2023. Meanwhile, customer assurance revenue totaled $15.87 million from $14.76 million in the prior year. Net loss was $20.47 million, versus $18.2 million in the first quarter of 2023.
“We are very pleased with our strong first-quarter results with revenue at the high end of our guidance range, strong year-over-year margin expansion, and adjusted EBITDA at the high-end of guidance range, resulting in our first profitable quarter as a public company, on a non-GAAP basis,” says CEO George Chamoun.
Other ACV Auctions metrics include:
- Marketplace gross merchandise volume (GMV) decreased 4% to $2.3 billion, down from $2.4 billion.
- Marketplace units (vehicles sold) totaled 174,631, an increase of 15% year over year from 151,563.
- ACV projects revenue in the second quarter to range from $154 million to $158 million and a net loss of $19 million to $17 million.
- ACV projects total annual revenue of $610 million to $625 million and net loss to range from $80 million to $85 million.
Despite a stronger financial forecast, the B2B marketplace is counting on headwinds from a range of issues including dealer inventory.
“Dealer wholesale volumes remain below historical levels due to lower-than-normal new and used vehicle inventory, which is causing dealers to keep more trades for retail,” Chamoun says. “We expect market headwinds will ease resulting in modest growth in dealer wholesale volumes in the back-half of 2024.”
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