2023 was a very good 12 months for motorized vehicle online marketplace and data services company ACV Auctions Inc., but 2024 is heading in the right direction to be a lot better, CEO George Chamoun said yesterday.
Following last 12 months’s 14% revenue increase to $481 million, as marketplace gross merchandise volume reached $8.8 billion, Chamoun gave guidance of as much as 30% revenue growth this 12 months to over $600 million.
George Chamoun, CEO, ACV Auctions Inc.
“While dealer wholesale volumes remain below historical levels, recent vehicle production and retail sales are improving, that are key aspects supporting a wholesale market recovery,” he said, adding, “We launched recent solutions that expand our addressable market and drive operating efficiency, which we achieved while continuing to extend margins.”
ACV’s marketplace and digital data services support transactions for buyers and sellers of recent and used motorcars, including many late-model cars newly off-lease. As more vehicles enter the market, demand increases amongst dealers and other businesses to make use of ACV’s services to either acquire more hot-selling vehicles or unload excess inventory.
Serving 24,000 motorized vehicle dealers
Donovan Jones, a research analyst and the top of investment group IPO Edge, says ACV has greater than 24,000 dealers and industrial partners in its system and has facilitated a whole lot of 1000’s of wholesale transactions for the reason that company’s inception in 2014.
On the 2024 National Automobile Dealers Association Show in Las Vegas last month, ACV showcased several digital technology marketplace features, including:
- Max Digital technology, with ACV’s market data, for dealers to appraise vehicles.
- AI imaging, APEX and Virtual Lift applications for confirming the condition of vehicles.
- A ClearCar AI-powered imaging and vehicle-inspection tool designed to assist dealers source and determine the worth of inventory from consumers.
ACV gets an anti-trust settlement
ACV also announced yesterday the settlement of its anti-trust litigation against Carvana-owned auto marketplace Adesa U.S. and other auction industry firms, clearing its ability to license and use the AutoIMS technology platform to attach with businesses, or consignors, that use wholesale auctions to sell vehicles to dealers and other industrial buyers.
In its lawsuit (ACV Auctions, Inc. v. National Auto Auction Association, Inc., et al.), in U.S. District Court for the Western District of Recent York, ACV charged Auto Auction Services Corp., which manufactures the AutoIMS, and 6 other firms with conspiring to stop ACV from using the platform.
ACV says that, by winning the case, it’s now in a position to “deploy AutoIMS in a way that supports ACV’s digital-focused business model” and to also provide services to the 1,300 industrial consignors that use AutoIMS to attach with a whole lot of physical auctions.
For the fourth quarter ended Dec. 31, ACV reported:
- Revenue for the fourth quarter ended Dec. 31 increased 21% 12 months over 12 months to $118 million.
- Net loss narrowed 5% to $23.24 million.
- Marketplace gross merchandise volume grew 6% to $1.8 billion.
- Marketplace vehicle unit sales increased 15% to 143,999.
For the total 12 months, ACV reported:
- Revenue increased 14% to $481 million.
- Marketplace gross merchandise volume grew 2% to $8.8 billion.
- Marketplace vehicle unit sales grew 10% to 598,767.
- Net loss narrowed 26.4% to $75.26 million.
- The non-GAAP loss was $16.01 million after factoring in $49.65 million in stock-based compensation and other expenses.
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss narrowed to $18 million from $56 million in 2022.
Based on recent and expected market trends, ACV said its full-year 2024 guidance projects 27%-30% revenue growth to $610 million to $625 million, for net income lack of as much as $62 million.
Percentage changes may not align exactly with dollar figures because of rounding. Check back for more earnings reports. Here’s last quarter’s MSC Industrial report.
Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. [email protected].
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