ACV Auctions reported stronger-than-expected revenue for its Q4 and full year ending Dec. 31, 2024.

The company’s leadership pointed to expanding market share, revenue growth, and innovations in artificial intelligence (AI) as driving forces behind its performance. ACV Auctions is a digital automotive marketplace and a data services provider.

“We are very pleased with our fourth-quarter results, with revenue and Adjusted EBITDA above the high end of our guidance range, along with continued margin expansion,” said George Chamoun, CEO of ACV. “ACV’s leading market position resulted in additional share gains and strong revenue growth in the quarter.”

ACV Auctions revenue in Q4

In Q4 2024, ACV Auctions posted $160 million in revenue. That marks a 35% increase over the same period in 2023.

Meanwhile, ACV Auctions’ marketplace and service revenue surged by 38% to reach $143 million. Its gross merchandise volume (GMV) climbed 22% year-over year to reach $2.3 billion.

Despite these gains, the company reported a GAAP net loss of $26 million. That’s a slight increase from the $23 million loss it recorded a year earlier. However, profitability indicators such as adjusted EBITDA improved significantly, rising to $6 million from a $5 million loss the previous year.

2024 ACV Auctions revenue

The full-year results reflected similar momentum. ACV Auctions revenue in 2024 totaled $637 million. That’s up 32% from 2023.

At the same time, ACV Auctions marketplace and service revenue grew 36% to reach $573 million. Total marketplace transactions rose to 743,008 units. That’s a 24% increase from the previous year.

Its 2024 GMV reached $9.5 billion, a modest 7% increase. Adjusted EBITDA stood at $28 million, a significant turnaround from the $18 million loss posted in 2023.

Chamoun struck an optimistic tone for 2025, even as the dealer wholesale market is expected to remain flat.

“We believe ACV is well-positioned to deliver sustainable market share gains, strong revenue growth, and continued margin expansion,” he said.

How ACV Auctions is using AI

A significant driver of ACV’s growth is its focus on integrating AI into its digital marketplace.

Chamoun acknowledged the growing industry buzz around AI and emphasized that ACV offers a unique approach.

“Technologies like machine learning and large language models are advancing at a rapid pace, and ACV is uniquely positioned to transform how decisions are made in automotive,” he said.

The company’s proprietary AI tools are already reshaping the way dealers engage in the marketplace. One key feature, ACV MAX, uses AI-powered predictive analytics to forecast retail vehicle prices with unprecedented accuracy, often within a few hundred dollars of actual sale prices and within $100 of wholesale values. Chamoun explained that this pricing capability, which factors in local market dynamics and specific vehicle conditions, enables sellers to set more competitive and realistic listing prices.

Beyond pricing, AI is also enhancing the company’s inspection platform.

“Before our virtual condition inspectors or dealers even touch a vehicle, our AI flags known condition risks and guides them through the inspection process,” Chamoun explained.

This technology uses a vast vehicle data model, drawing on millions of inspections combined with third-party data, to produce some of the industry’s most comprehensive condition reports.

Expanding consumer-facing AI capabilities

Chamoun also revealed that ACV is expanding AI capabilities into consumer-facing platforms like ClearCar and developing new trade-in solutions for auto ecommerce partners.

“Dealer partners piloting our AI-enhanced applications are already seeing improvements in their own inspection processes,” Chamoun said. “The feedback has been incredible, and it’s informing our product roadmap moving forward.”

Looking ahead, the company expects to continue its growth in 2025. ACV Auctions forecasts revenue between $180 million and $185 million for its fiscal first quarter. That would be a year-over-year increase of up to 27%. It projects full-year revenue to reach between $765 million and $785 million, reflecting growth of up to 23%.

While the company anticipates a GAAP net loss of up to $62 million for the full year, Chamoun remains confident that ACV’s business model, strengthened by AI-driven innovations, will continue to scale.

“With AI deeply embedded in our core services, ACV remains at the forefront of innovation,” he said. “We’re delivering smarter solutions and driving better outcomes for our dealer partners and customers alike.”

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