Q2 2024 ACV Auctions Inc Earnings Call Transcript
Key Points
- ACV Auctions Inc (ACVA) delivered record revenue of $161 million in Q2 2024, a 29% year-over-year increase.
- Adjusted EBITDA increased 65% sequentially, resulting in a 700 basis point year-over-year improvement in adjusted EBITDA margin.
- Half of ACV Auctions Inc (ACVA)'s regional markets achieved 30% franchise dealer penetration.
- Strong market adoption of ACV’s consumer sourcing solution, ClearCar, with nearly 900 dealers live.
- AI-optimized pricing and technology initiatives contributed to a 20% volume growth in ACV Transportation and improved operating efficiency.
- GMV declined modestly year-over-year, driven by a 19% decrease in GMV per unit due to wholesale price compression.
- Used retail sales declined approximately 5% year-over-year, reflecting ongoing affordability challenges and the CDK software outage.
- The CDK outage in June negatively impacted revenue and EBITDA, with an estimated loss of over $1 million in revenue and $600,000 in EBITDA.
- Increased arbitration cases early in Q2 due to market price declines, although these have since stabilized.
- Despite positive trends, the dealer wholesale market still declined roughly 3% year-over-year, indicating a slow recovery.
Ladies and gentlemen, greetings and welcome to the ACV Q2 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference has been recorded. It is now my pleasure to introduce your host, Tim Fox. Please go ahead.
Good afternoon, and thank you for joining ACVâs conference call to discuss our second quarter 2024 financial results. With me on the call today are George Chamoun, Chief Executive Officer, and Bill Zerella, Chief Financial Officer.
Before we get started, please note that todayâs comments include forward-looking statements, including statements regarding future financial guidance. These forward-looking statements are subject to risks and uncertainties and involve factors that could cause actual results to differ materially from those expressed or implied by such statements.
A discussion of the risks and uncertainties
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