ACV Auctions (ACVA) 10-Q8 May 242024 Q1 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	Apr. 30, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-40256
Entity Registrant Name	ACV Auctions Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-2415221
Entity Address, Address Line One	640 Ellicott Street, #321
Entity Address, City or Town	Buffalo
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14203
City Area Code	800
Local Phone Number	553-4070
Title of 12(b) Security	Class A common stock, par value $0.001 per share
Trading Symbol	ACVA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001637873
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Common Stock Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		147,965,283
Common Stock Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		17,123,116

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue:
Total revenue	$ 145,689	$ 119,626
Operating expenses:
Operations and technology	38,069	35,660
Selling, general, and administrative	53,853	41,797
Depreciation and amortization	7,787	3,285
Total operating expenses	168,216	140,460
Loss from operations	(22,527)	(20,834)
Other income (expense):
Interest income	3,031	3,296
Interest expense	(535)	(315)
Total other income (expense)	2,496	2,981
Loss before income taxes	(20,031)	(17,853)
Provision for income taxes	440	347
Net loss	$ (20,471)	$ (18,200)
Weighted-average shares - basic (in shares)	162,889,642	158,694,919
Weighted-average shares - diluted (in shares)	162,889,642	158,694,919
Net loss per share - basic (in dollars per share)	$ (0.13)	$ (0.11)
Net loss per share - diluted (in dollars per share)	$ (0.13)	$ (0.11)
Marketplace and service
Revenue:
Total revenue	$ 129,814	$ 104,863
Operating expenses:
Cost of revenue (excluding depreciation & amortization)	55,693	47,575
Customer assurance
Revenue:
Total revenue	15,875	14,763
Operating expenses:
Cost of revenue (excluding depreciation & amortization)	$ 12,814	$ 12,143

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (20,471)	$ (18,200)
Other comprehensive income (loss):
Net unrealized gains (losses) on available-for-sale securities	(30)	1,000
Foreign currency translation (loss) gain	(229)	244
Comprehensive loss	$ (20,730)	$ (16,956)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current Assets :
Cash and cash equivalents	$ 209,845	$ 182,571
Marketable securities	131,631	228,761
Trade receivables (net of allowance of $3,931 and $2,868)	219,305	164,009
Finance receivables (net of allowance of $3,728 and $3,428)	121,047	119,034
Other current assets	14,398	12,524
Total current assets	696,226	706,899
Property and equipment (net of accumulated depreciation of $4,289 and $4,462)	7,903	4,918
Goodwill	169,305	103,379
Acquired intangible assets (net of amortization of $19,676 and $17,534)	78,585	34,192
Capitalized software (net of amortization of $21,836 and $17,059)	59,662	55,771
Other assets	32,971	17,765
Total assets	1,044,652	922,924
Current Liabilities :
Accounts payable	393,144	305,845
Accrued payroll	14,126	12,245
Accrued other liabilities	22,788	15,851
Total current liabilities	430,058	333,941
Long-term debt	125,000	115,000
Other long-term liabilities	31,315	17,455
Total liabilities	586,373	466,396
Commitments and Contingencies
Stockholders' Equity :
Preferred Stock; $0.001 par value; 20,000,000 shares authorized; 0 and 0 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively	0	0
Additional paid-in capital	902,989	880,510
Accumulated deficit	(443,086)	(422,615)
Accumulated other comprehensive loss	(1,788)	(1,529)
Total stockholders' equity	458,279	456,528
Total liabilities and stockholders' equity	1,044,652	922,924
Common Stock Class A
Stockholders' Equity :
Common Stock	147	139
Common Stock Class B
Stockholders' Equity :
Common Stock	$ 17	$ 23

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Trade receivables allowance	$ 3,931	$ 2,868
Finance receivables allowance	3,728	3,428
Accumulated depreciation	4,289	4,462
Intangible assets amortization	19,676	17,534
Capitalized software amortization	$ 21,836	$ 17,059
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common Stock Class A
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, shares issued (in shares)	147,307,191	138,637,352
Common stock, shares outstanding (in shares)	147,307,191	138,637,352
Common Stock Class B
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	160,000,000	160,000,000
Common stock, shares issued (in shares)	17,297,339	23,205,487
Common stock, shares outstanding (in shares)	17,297,339	23,205,487

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock Common Stock Class A	Common Stock Common Stock Class B	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Balance at Dec. 31, 2022	$ 485,724	$ 121	$ 37	$ 836,695	$ (347,354)	$ (3,775)
Balance (in shares) at Dec. 31, 2022		121,214,275	37,241,952
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Class B common stock to Class A common stock	0	$ 7	$ (7)
Conversion of Class B common stock to Class A common stocks (in shares)		7,042,121	(7,042,121)
Net loss	(18,200)				(18,200)
Other comprehensive income (loss)	1,244					1,244
Stock-based compensation	14,859			14,859
Exercise of common stock options	898			898
Exercise of common stock options (in shares)		181,284
Vested restricted stock units	(3,619)	$ 1		(3,620)
Vested restricted stock units (in shares)		416,763	75,599
Balance at Mar. 31, 2023	480,906	$ 129	$ 30	848,832	(365,554)	(2,531)
Balance (in shares) at Mar. 31, 2023		128,854,443	30,275,430
Balance at Dec. 31, 2023	456,528	$ 139	$ 23	880,510	(422,615)	(1,529)
Balance (in shares) at Dec. 31, 2023		138,637,352	23,205,487
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Class B common stock to Class A common stock	0	$ 6	$ (6)
Conversion of Class B common stock to Class A common stocks (in shares)		5,981,622	(5,981,622)
Net loss	(20,471)				(20,471)
Other comprehensive income (loss)	(259)					(259)
Stock-based compensation	18,599			18,599
Issuance of shares for acquisitions	8,556	$ 1		8,555
Issuance of shares for acquisitions (in shares)		1,413,075
Exercise of common stock options	$ 2,402	$ 1		2,401
Exercise of common stock options (in shares)	719,039	719,039
Vested restricted stock units	$ (7,076)			(7,076)
Vested restricted stock units (in shares)		556,103	73,474
Balance at Mar. 31, 2024	$ 458,279	$ 147	$ 17	$ 902,989	$ (443,086)	$ (1,788)
Balance (in shares) at Mar. 31, 2024		147,307,191	17,297,339

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash Flows from Operating Activities
Net income (loss)	$ (20,471)	$ (18,200)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	7,802	3,392
Stock-based compensation expense, net of amounts capitalized	14,830	11,505
Provision for bad debt	2,097	2,176
Other non-cash, net	356	(302)
Changes in operating assets and liabilities, net of effects from purchases of businesses:
Trade receivables	(33,676)	(21,487)
Other operating assets	(289)	(841)
Accounts payable	68,217	62,761
Other operating liabilities	4,109	3,976
Net cash provided by (used in) operating activities	42,975	42,980
Cash Flows from Investing Activities
Net increase in finance receivables	(1,047)	(27,407)
Purchases of property and equipment	(1,075)	(266)
Capitalization of software costs	(7,513)	(4,943)
Purchases of marketable securities	(2,902)	(35,602)
Maturities and redemptions of marketable securities	30,030	41,950
Sales of marketable securities	70,020	2,402
Acquisition of businesses (net of cash acquired)	(108,453)	0
Net cash provided by (used in) investing activities	(20,940)	(23,866)
Cash Flows from Financing Activities
Proceeds from long term debt	190,000	95,000
Payments towards long term debt	(180,000)	(75,000)
Proceeds from exercise of stock options	2,401	899
Payment of RSU tax withholdings in exchange for common shares surrendered by RSU holders	(7,090)	(3,619)
Other financing activities	(23)	0
Net cash provided by (used in) financing activities	5,288	17,280
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(49)	3
Net increase (decrease) in cash, cash equivalents, and restricted cash	27,274	36,397
Cash, cash equivalents, and restricted cash, beginning of period	182,571	280,752
Cash, cash equivalents, and restricted cash, end of period	209,845	317,149
Non-cash investing and financing activities:
Stock-based compensation included in capitalized software development costs	1,184	696
Purchase of property and equipment and internal use software in accounts payable	$ 1,119	$ 2,553

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Nature of Business and Summary Significant Accounting Policies	Nature of Business and Summary of Significant Accounting Policies Nature of Business – The Company operates in one industry segment, providing a wholesale auction marketplace (the “Marketplace”) to facilitate business-to-business used vehicle sales between a selling dealership (“Seller”) and a buying dealership (“Buyer”). Customers using the Marketplace are licensed automotive dealerships or other commercial automotive enterprises. At the election of the customer purchasing a vehicle, the Company can arrange third-party transportation services for the delivery of the purchased vehicle through its wholly owned subsidiary, ACV Transportation LLC. The Company can also provide the customer financing for the purchased vehicle through its wholly owned subsidiary, ACV Capital LLC. ACV also provides data services that offer insights into the condition and value of used vehicles for transactions both on and off the Company's Marketplace, which help dealerships, their end customers, and commercial partners make more informed decisions to transact with confidence and efficiency. Customers using data services are licensed automotive dealerships or other commercial automotive enterprises. All services are provided in the United States and certain data services are also provided internationally. Services are supported by the Company’s operations which are in the United States, Canada, France, and India. Basis of Consolidation – The condensed consolidated financial statements include the accounts of ACV Auctions Inc. and all of its controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Basis of Preparation – The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the applicable rules and regulations of the Securities and Exchange Commission ("SEC"). The Company has condensed or omitted certain information and notes normally included in complete annual financial statements prepared in accordance with GAAP. These financial statements have been prepared on the same basis as the Company's annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company's financial information. The unaudited interim condensed consolidated financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 21, 2024 (the "Annual Report"). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). Seasonality

Financial Instruments

Financial Instruments	3 Months Ended
Financial Instruments	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Financial Instruments	Financial Instruments The following is a summary of available-for-sale financial instruments, as of March 31, 2024 and December 31, 2023, respectively (in thousands): March 31, 2024 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Marketable securities: Corporate securities (1) $ 110,948 $ 1 $ (681) $ 110,268 U.S. treasury and agency securities 21,442 3 (82) 21,363 Total Marketable securities $ 132,390 $ 4 $ (763) $ 131,631 (1) Comprised primarily of corporate bonds December 31, 2023 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Cash equivalents: Corporate securities (1) $ 1,213 $ — $ (1) $ 1,212 Total cash equivalents 1,213 — (1) 1,212 Marketable securities: Corporate securities (1) $ 199,084 $ 115 $ (819) $ 198,380 U.S. treasury and agency securities 30,404 25 (48) 30,381 Total Marketable securities $ 229,488 $ 140 $ (867) $ 228,761 (1) Comprised primarily of corporate bonds and commercial paper As of March 31, 2024, the fair values of available-for-sale financial instruments, by remaining contractual maturity, were as follows (in thousands): Due within one year $ 94,440 Due in one to five years 37,191 Total $ 131,631 The Company typically invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer. Fair values were determined for each individual security in the investment portfolio. The Company does not believe that any unrealized losses are attributable to credit-related factors based on its evaluation of available evidence. To determine whether a decline in value is related to credit loss, the Company evaluates, among other factors: the extent to which the fair value is less than the amortized cost basis, changes to the rating of the security by a rating agency and any adverse conditions specifically related to an issuer of a security or its industry. Unrealized gain and losses on marketable securities are presented net of tax.

Fair Value Measurement

Fair Value Measurement	3 Months Ended
Fair Value Measurement	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement Fair value accounting is applied for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the condensed consolidated financial statements on a recurring basis (at least annually). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value in the condensed consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity, associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1: Observable inputs such as quoted prices in active markets for identical assets and liabilities. Level 2: Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data which require the Company to develop its own assumptions. The Company’s financial instruments that are not measured at fair value on a recurring basis include trade and finance accounts receivable and accounts payable whose carrying values approximate fair value due to the short-term nature of those instruments. The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): March 31, 2024 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 18,704 $ — $ — $ 18,704 Marketable Securities: Corporate securities — 110,268 — 110,268 U.S. treasury and agency securities 14,049 7,314 — 21,363 Total financial assets $ 32,753 $ 117,582 $ — $ 150,335 December 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 22,433 $ — $ — $ 22,433 Corporate securities — 1,212 — 1,212 Marketable Securities: Corporate securities — 198,380 — 198,380 U.S. treasury and agency securities 20,064 10,317 — 30,381 Total financial assets $ 42,497 $ 209,909 $ — $ 252,406 The Company classifies its highly liquid money market funds and U.S treasury securities within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its corporate securities, and U.S. agency securities within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded.

Accounts Receivables & Allowanc

Accounts Receivables & Allowance for Doubtful Receivables	3 Months Ended
Accounts Receivables & Allowance for Doubtful Receivables	Mar. 31, 2024
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Accounts Receivables & Allowance for Doubtful Receivables	Accounts Receivable & Allowance for Doubtful Receivables The Company maintains an allowance for doubtful receivables that in management’s judgment reflects losses inherent in the portfolio. A provision for doubtful receivables is recorded to adjust the level of the allowance in accordance with GAAP. Changes in the allowance for doubtful trade receivables for the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three months ended March 31, 2024 2023 Beginning balance $ 2,868 $ 4,860 Provision for bad debt 732 1,028 Net write-offs Write-offs (264) (3,963) Recoveries 595 2,446 Net (write-offs) recoveries 331 (1,517) Ending balance $ 3,931 $ 4,371 Changes in the allowance for doubtful finance receivables for the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three months ended March 31, 2024 2023 Beginning balance $ 3,428 $ 2,275 Provision for bad debt 1,362 1,148 Net write-offs Write-offs (1,195) (1,381) Recoveries 133 214 Net (write-offs) recoveries (1,062) (1,167) Ending balance $ 3,728 $ 2,256

Guarantees, Commitments and Con

Guarantees, Commitments and Contingencies	3 Months Ended
Guarantees, Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Guarantees, Commitments and Contingencies	Guarantees, Commitments and Contingencies The Company provides certain guarantees to Sellers in the Marketplace in the ordinary course of business, which are accounted for under ASC 460 as a general guarantee. Vehicle Condition Guarantees – Sellers must attach a vehicle condition report in the Marketplace for every auction; this vehicle condition report is used by Buyers to inform bid decisions. The Company offers guarantees to Sellers in qualifying situations where the Company performed a vehicle inspection and prepared the vehicle condition report. Sellers must pay an additional fee in exchange for this guarantee. The guarantee provides Sellers protection from paying remedies to Buyers related to a Buyer’s claim that the vehicle condition report did not accurately portray the condition of the vehicle purchased on the Marketplace. The guarantee provides the Company with the right to retain proceeds from the subsequent liquidation of the vehicle covered under the guarantee. The guarantee is typically provided for 10 days after the successful sale of the vehicle on the Marketplace. The fair value of vehicle condition guarantees issued is estimated based on historical results and other qualitative factors. The vehicle condition guarantee revenue is recognized on the earlier of the guarantee expiration date or the guarantee settlement date. The maximum potential payment is the sale price of the vehicle. The total sale price of vehicles for which there was an outstanding guarantee was $219.0 million and $142.8 million at March 31, 2024 and December 31, 2023, respectively. The carrying amount of the liability presented in Accrued other liabilities was $1.5 million and $1.2 million at March 31, 2024 and December 31, 2023, respectively. The recognized probable loss contingency, in excess of vehicle condition guarantees recognized, presented in Accrued other liabilities was $1.7 million and $1.8 million at March 31, 2024 and December 31, 2023, respectively. Other Price Guarantees – The Company provides Sellers with a price guarantee for vehicles to be sold on the Marketplace from time to time. If a vehicle sells below the guaranteed price, the Company is responsible for paying the Seller the difference between the guaranteed price and the final sale price. The term of the guarantee is typically less than one week. No material unsettled price guarantees existed at March 31, 2024 and December 31, 2023. Litigation – The Company and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings and matters in which claims for monetary damages are asserted. On an on-going basis management, after consultation with legal counsel, assesses the Company's liabilities and contingencies in connection with such proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its condensed consolidated financial statements. To the extent pending or threatened litigation could result in exposure in excess of the recorded liability, the amount of such excess is not currently estimable.

Borrowings

Borrowings	3 Months Ended
Borrowings	Mar. 31, 2024
Debt Disclosure [Abstract]
Borrowings	Borrowings On August 24, 2021, the Company entered into a revolving credit facility (the “2021 Revolver”). The 2021 Revolver was established to provide general financing to the Company. The 2021 Revolver is secured by substantially all of the Company's assets except for ACV Capital receivables. The maximum borrowing principal amount of the 2021 Revolver is $160.0 million and includes a sub facility that provides for the issuance of letters of credit up to $20.0 million outstanding at any time. On June 1, 2023, the Company entered into Amendment No. 1 ("The First Amendment"), which modified the rate to which interest payments are indexed to the Secured Overnight Financing Rate, or SOFR. The interest rate applicable to the 2021 Revolver is, at our option, either (a) SOFR (or a replacement rate established in accordance with the terms of the credit agreement for the 2021 Revolver) (subject to a 0.00% SOFR floor), plus a margin of 2.75% per annum plus an additional credit spread adjustment of 0.11% for daily and one-month terms, 0.26% for three-month terms and 0.43% for six-month terms or (b) the Alternate Base Rate plus a margin of 1.75% per annum. The Alternate Base Rate is the highest of (a) the Wall Street Journal prime rate, (b) the NYFRB rate plus 0.5% and (c)(i) 1.00% plus (ii) the adjusted SOFR rate for a one-month interest period. The First Amendment maintains a maximum borrowing principal amount of $160.0 million. Refer to Note 9 contained in our Annual Report on Form 10-K for the year ended for further details regarding our revolving credit facilities and their key terms. As of March 31, 2024 and December 31, 2023, outstanding borrowings under the 2021 Revolver were $125.0 million and $115.0 million, respectively, and there were outstanding letters of credit issued under the 2021 Revolver in the amount of $3.1 million and $2.1 million, respectively decreasing the availability under the 2021 Revolver by a corresponding amount. As of March 31, 2024, the interest rate on the outstanding borrowing was 10.25%. As of March 31, 2024, the Company was in compliance with all of its financial covenants and non-financial covenants.

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2024
Leases [Abstract]
Leases	Leases The Company leases office space under operating leases expiring at various dates through 2038. For the three months ended March 31, 2024 and 2023, the Company incurred operating lease costs of $1.3 million and $0.4 million, respectively. For operating leases, the weighted-average remaining term is 9.7 and 7.3 years with a weighted-average discount rate of 10% and 5% for the three months ended March 31, 2024 and 2023, respectively. Maturities of lease liabilities as of March 31, 2024 were as follows (in thousands): 2024 $ 4,749 2025 6,001 2026 5,732 2027 5,414 2028 5,105 Thereafter 22,060 Total lease payments 49,061 Less imputed interest (17,171) Total $ 31,890 The following amounts relate to operating leases that were recorded on the Company's Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Operating lease right of use assets: Other assets $ 32,120 $ 16,858 Operating lease liabilities: Accrued other liabilities 3,231 1,647 Other long-term liabilities 28,659 15,034 The Company recorded right of use assets in exchange for new lease liabilities of $14.0 million and $0.0 million during the three months ended March 31, 2024 and 2023, respectively.

Revenue

Revenue	3 Months Ended
Revenue	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The following table summarizes the primary components of revenue; this level of disaggregation takes into consideration how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors (in thousands): Three months ended March 31, 2024 2023 Auction marketplace revenue $ 67,329 $ 54,002 Other marketplace revenue 54,569 42,691 Data services revenue 7,916 8,170 Marketplace and service revenue $ 129,814 $ 104,863 Contract liabilities represent consideration collected prior to satisfying performance obligations. The Company had $5.4 million and $4.2 million of contract liabilities included in Accrued other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023, respectively. Revenue recognized for the three months ended March 31, 2024 from amounts included in deferred revenue as of December 31, 2023 was $4.2 million. All the remaining performance obligations for contracts are expected to be recognized within one year.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Refer to Note 13 contained in our Annual Report on Form 10-K for the year ended for further details regarding our equity plans. The following table summarizes the stock option activity for the three months ended March 31, 2024 (in thousands, except for share and per share amounts): Number of Weighted- Intrinsic Weighted- Outstanding, December 31, 2023 6,296,350 $ 2.49 $ 79,728 4.83 Exercised (719,039) 3.34 Forfeited (1,611) 5.42 Expired (4,352) 5.32 Outstanding, March 31, 2024 5,571,348 $ 2.37 $ 91,345 4.50 Exercisable, March 31, 2024 5,292,470 $ 2.18 $ 87,800 4.42 The following table summarizes the restricted stock unit activity for the three months ended March 31, 2024 (in thousands, except for share and per share amounts): Number of RSUs Weighted- Outstanding, December 31, 2023 7,237,920 $ 14.37 Granted 608,294 $ 15.65 Vested (1,068,053) $ 14.98 Forfeited (115,198) $ 14.50 Outstanding, March 31, 2024 6,662,963 $ 14.37 As of March 31, 2024 there was approximately $84.7 million of compensation expense related to the unvested portion of common stock options and restricted stock units that will be recorded as compensation expense over a weighted-average period of 2.3 years. During the first quarter of 2024, the Company entered into two contingently returnable share agreements (the "2024 Agreements") for certain compensatory share-based service awards. The 2024 Agreements authorized 773,099 shares of common stock to be issued. Shares will be released and distributed to the employee award recipients with the final vesting date during the first quarter of 2028. At March 31, 2024, there was approximately $10.6 million of compensation expense related to the unvested portion of the contingently returnable shares that will be recorded over 3.8 years.

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe Company had an effective tax rate of approximately (2)% and (2)% for the three months ended March 31, 2024 and 2023, respectively. The principal differences between the federal statutory rate and the effective tax rate are related to state taxes, foreign taxes and credits, and the non-recognition of tax benefits for certain entities in a loss position for which a full valuation allowance has been recorded.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	3 Months Ended
Net Income (Loss) Per Share	Mar. 31, 2024
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Net Income (Loss) Per Share The numerators and denominators of the basic and diluted net income (loss) per share computations for the Company's common stock are calculated as follows for the three months ended March 31, 2024 and 2023 (in thousands, except share data): Three months ended March 31, 2024 2023 Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ (17,718) $ (2,753) $ (14,393) $ (3,807) Denominator: Weighted-average number of shares of common stock - Basic and diluted 140,979,870 21,909,772 125,500,186 33,194,733 Net loss per share attributable to common stockholders: Basic and diluted $ (0.13) $ (0.13) $ (0.11) $ (0.11) The following table presents the total weighted-average number of potentially dilutive shares that were excluded from the computation of diluted net loss per share attributable to common shareholders because their effect would have been anti-dilutive for the period presented: Three months ended March 31, 2024 2023 Unvested RSUs and other awards 2,385,164 1,082,627 Stock options 4,800,879 5,281,394

Acquisitions

Acquisitions	3 Months Ended
Acquisitions	Mar. 31, 2024
Business Combinations [Abstract]
Acquisitions	Acquisitions The Company completed three business acquisitions during the three months ended March 31, 2024. These acquisitions were accounted for using the acquisition method and, accordingly, the results of the acquired business have been included in the Company's results of operations from the respective acquisition dates. Purchase price allocations related to these acquisitions are subject to adjustments as they are finalized over the 12 month measurement period from the respective acquisition dates. Goodwill acquired in connection with these acquisitions will be deductible for tax purposes in the United States and will be amortized on a straight-line basis over 15 years. Alliance Auto Auctions On January 30, 2024, the Company completed its acquisition of all of the ownership interests of Alliance Auto Auctions for estimated cash consideration of $66.4 million and 639,976 common shares of the Company's Class A common stock. The fair value of the consideration shares of $8.6 million was determined based upon the closing market price of the Company's Class A common shares on January 30, 2024. The aggregate purchase price for the Alliance Auto Auctions acquisition was preliminarily allocated to the assets and liabilities assumed as follows (in thousands): Assets Acquired Cash and cash equivalents $ 2,465 Trade receivables 14,855 Finance receivables — Other current assets 815 Property & equipment, net 892 Goodwill & intangibles 72,424 Other assets 8,305 Total assets acquired $ 99,756 Liabilities Assumed Accounts payable $ 14,945 Accrued payroll 381 Accrued other liabilities 2,012 Deferred revenue 60 Other long-term liabilities 7,362 Total liabilities assumed 24,760 Net assets acquired $ 74,996 Alliance Auto Auctions offers wholesale car auction services, and enabled the Company to expand its range of offerings to dealers and commercial partners. March 8, 2024 Acquisition On March 8, 2024, the Company completed its acquisition of all of the ownership interests of a business (“the March 8, 2024 acquisition”) for estimated cash consideration of $26.7 million. The aggregate purchase price was preliminarily allocated to $8.1 million of goodwill, $13.0 million of intangible assets, and $5.6 million of net assets assumed. The business acquired in the March 8, 2024 acquisition offers wholesale and commercial car auction and reconditioning services and enabled the Company to expand its range of offerings to dealers and commercial partners. March 13, 2024 Acquisition On March 13, 2024, the Company completed its acquisition of all of the ownership interests of a business ("the March 13, 2024 acquisition") for estimated cash consideration of $19.1 million. The aggregate purchase price was

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net loss	$ (20,471)	$ (18,200)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Michael Waterman [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On February 28, 2024, Michael Waterman, our Chief Sales Officer, adopted a "Rule 10b5-1 trading arrangement" (as defined in Item 408 of Regulation S-K) (the “Waterman Plan”). The Waterman Plan contemplates the sale of up to 211,752 shares between May 29, 2024 and February 27, 2025, subject to certain volume limitations and excluding specified “No Sale” periods. The Waterman Plan is scheduled to terminate on February 27, 2025.
Name	Michael Waterman
Title	Chief Sales Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 28, 2024
Arrangement Duration	274 days
Aggregate Available	211,752

Nature of Business and Summar_2

Nature of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Nature of Business	Nature of Business – The Company operates in one industry segment, providing a wholesale auction marketplace (the “Marketplace”) to facilitate business-to-business used vehicle sales between a selling dealership (“Seller”) and a buying dealership (“Buyer”). Customers using the Marketplace are licensed automotive dealerships or other commercial automotive enterprises. At the election of the customer purchasing a vehicle, the Company can arrange third-party transportation services for the delivery of the purchased vehicle through its wholly owned subsidiary, ACV Transportation LLC. The Company can also provide the customer financing for the purchased vehicle through its wholly owned subsidiary, ACV Capital LLC. ACV also provides data services that offer insights into the condition and value of used vehicles for transactions both on and off the Company's Marketplace, which help dealerships, their end customers, and commercial partners make more informed decisions to transact with confidence and efficiency. Customers using data services are licensed automotive dealerships or other commercial automotive enterprises. All services are provided in the United States and certain data services are also provided internationally. Services are supported by the Company’s operations which are in the United States, Canada, France, and India.
Basis of Consolidation	Basis of Consolidation
Basis of Preparation	Basis of Preparation

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
Financial Instruments (Tables)	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-Sale Marketable Securities	The following is a summary of available-for-sale financial instruments, as of March 31, 2024 and December 31, 2023, respectively (in thousands): March 31, 2024 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Marketable securities: Corporate securities (1) $ 110,948 $ 1 $ (681) $ 110,268 U.S. treasury and agency securities 21,442 3 (82) 21,363 Total Marketable securities $ 132,390 $ 4 $ (763) $ 131,631 (1) Comprised primarily of corporate bonds December 31, 2023 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Cash equivalents: Corporate securities (1) $ 1,213 $ — $ (1) $ 1,212 Total cash equivalents 1,213 — (1) 1,212 Marketable securities: Corporate securities (1) $ 199,084 $ 115 $ (819) $ 198,380 U.S. treasury and agency securities 30,404 25 (48) 30,381 Total Marketable securities $ 229,488 $ 140 $ (867) $ 228,761 (1) Comprised primarily of corporate bonds and commercial paper
Schedule of Fair Values of Available-for-Sale Financial Instruments	As of March 31, 2024, the fair values of available-for-sale financial instruments, by remaining contractual maturity, were as follows (in thousands): Due within one year $ 94,440 Due in one to five years 37,191 Total $ 131,631

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
Fair Value Measurement (Tables)	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Summary of Financial Assets Measured at Fair Value On Recurring Basis	The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): March 31, 2024 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 18,704 $ — $ — $ 18,704 Marketable Securities: Corporate securities — 110,268 — 110,268 U.S. treasury and agency securities 14,049 7,314 — 21,363 Total financial assets $ 32,753 $ 117,582 $ — $ 150,335 December 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 22,433 $ — $ — $ 22,433 Corporate securities — 1,212 — 1,212 Marketable Securities: Corporate securities — 198,380 — 198,380 U.S. treasury and agency securities 20,064 10,317 — 30,381 Total financial assets $ 42,497 $ 209,909 $ — $ 252,406

Accounts Receivables & Allowa_2

Accounts Receivables & Allowance for Doubtful Receivables (Tables)	3 Months Ended
	Mar. 31, 2024
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Summary of Changes in the Allowance for Doubtful Trade Receivables	Changes in the allowance for doubtful trade receivables for the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three months ended March 31, 2024 2023 Beginning balance $ 2,868 $ 4,860 Provision for bad debt 732 1,028 Net write-offs Write-offs (264) (3,963) Recoveries 595 2,446 Net (write-offs) recoveries 331 (1,517) Ending balance $ 3,931 $ 4,371
Summary of Changes in the Allowance for Doubtful Finance Receivables	Changes in the allowance for doubtful finance receivables for the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three months ended March 31, 2024 2023 Beginning balance $ 3,428 $ 2,275 Provision for bad debt 1,362 1,148 Net write-offs Write-offs (1,195) (1,381) Recoveries 133 214 Net (write-offs) recoveries (1,062) (1,167) Ending balance $ 3,728 $ 2,256

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2024
Leases [Abstract]
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities as of March 31, 2024 were as follows (in thousands): 2024 $ 4,749 2025 6,001 2026 5,732 2027 5,414 2028 5,105 Thereafter 22,060 Total lease payments 49,061 Less imputed interest (17,171) Total $ 31,890
Schedule of Operating Lease Recorded on Balance Sheets	The following amounts relate to operating leases that were recorded on the Company's Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Operating lease right of use assets: Other assets $ 32,120 $ 16,858 Operating lease liabilities: Accrued other liabilities 3,231 1,647 Other long-term liabilities 28,659 15,034

Revenue (Tables)

Revenue (Tables)	3 Months Ended
Revenue (Tables)	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Summary of Disaggregation of Revenue	The following table summarizes the primary components of revenue; this level of disaggregation takes into consideration how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors (in thousands): Three months ended March 31, 2024 2023 Auction marketplace revenue $ 67,329 $ 54,002 Other marketplace revenue 54,569 42,691 Data services revenue 7,916 8,170 Marketplace and service revenue $ 129,814 $ 104,863

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
Stock-Based Compensation (Tables)	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Activity	The following table summarizes the stock option activity for the three months ended March 31, 2024 (in thousands, except for share and per share amounts): Number of Weighted- Intrinsic Weighted- Outstanding, December 31, 2023 6,296,350 $ 2.49 $ 79,728 4.83 Exercised (719,039) 3.34 Forfeited (1,611) 5.42 Expired (4,352) 5.32 Outstanding, March 31, 2024 5,571,348 $ 2.37 $ 91,345 4.50 Exercisable, March 31, 2024 5,292,470 $ 2.18 $ 87,800 4.42
Summary of Restricted Stock Unit Activity	The following table summarizes the restricted stock unit activity for the three months ended March 31, 2024 (in thousands, except for share and per share amounts): Number of RSUs Weighted- Outstanding, December 31, 2023 7,237,920 $ 14.37 Granted 608,294 $ 15.65 Vested (1,068,053) $ 14.98 Forfeited (115,198) $ 14.50 Outstanding, March 31, 2024 6,662,963 $ 14.37

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	3 Months Ended
Net Income (Loss) Per Share (Tables)	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Basic And Diluted Net Loss Per Share	The numerators and denominators of the basic and diluted net income (loss) per share computations for the Company's common stock are calculated as follows for the three months ended March 31, 2024 and 2023 (in thousands, except share data): Three months ended March 31, 2024 2023 Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ (17,718) $ (2,753) $ (14,393) $ (3,807) Denominator: Weighted-average number of shares of common stock - Basic and diluted 140,979,870 21,909,772 125,500,186 33,194,733 Net loss per share attributable to common stockholders: Basic and diluted $ (0.13) $ (0.13) $ (0.11) $ (0.11)
Summary of Potentially Dilutive Shares Excluded from Computation of Net Loss Per Share	The following table presents the total weighted-average number of potentially dilutive shares that were excluded from the computation of diluted net loss per share attributable to common shareholders because their effect would have been anti-dilutive for the period presented: Three months ended March 31, 2024 2023 Unvested RSUs and other awards 2,385,164 1,082,627 Stock options 4,800,879 5,281,394

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
Acquisitions (Tables)	Mar. 31, 2024
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The aggregate purchase price for the Alliance Auto Auctions acquisition was preliminarily allocated to the assets and liabilities assumed as follows (in thousands): Assets Acquired Cash and cash equivalents $ 2,465 Trade receivables 14,855 Finance receivables — Other current assets 815 Property & equipment, net 892 Goodwill & intangibles 72,424 Other assets 8,305 Total assets acquired $ 99,756 Liabilities Assumed Accounts payable $ 14,945 Accrued payroll 381 Accrued other liabilities 2,012 Deferred revenue 60 Other long-term liabilities 7,362 Total liabilities assumed 24,760 Net assets acquired $ 74,996

Nature of Business and Summar_3

Nature of Business and Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2024 industrySegment
Accounting Policies [Abstract]
Number of operating segments	1

Financial Instruments - Schedul

Financial Instruments - Schedule of Available-for-Sale Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Cash equivalents:
Amortized Cost	$ 209,845	$ 182,571
Marketable securities:
Amortized Cost	132,390	229,488
Unrealized Gain	4	140
Unrealized Losses	(763)	(867)
Fair Value	131,631	228,761
Corporate securities
Marketable securities:
Amortized Cost	110,948	199,084
Unrealized Gain	1	115
Unrealized Losses	(681)	(819)
Fair Value	110,268	198,380
U.S. treasury and agency securities
Marketable securities:
Amortized Cost	21,442	30,404
Unrealized Gain	3	25
Unrealized Losses	(82)	(48)
Fair Value	$ 21,363	30,381
Cash equivalents
Cash equivalents:
Amortized Cost		1,213
Unrealized Gain		0
Unrealized Losses		(1)
Fair Value		1,212
Corporate securities
Cash equivalents:
Amortized Cost		1,213
Unrealized Gain		0
Unrealized Losses		(1)
Fair Value		$ 1,212

Financial Instruments - Sched_2

Financial Instruments - Schedule of Fair Values of Available-for-Sale Financial Instruments (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Investments, Debt and Equity Securities [Abstract]
Due within one year	$ 94,440
Due in one to five years	37,191
Total	$ 131,631

Fair Value Measurement - Summar

Fair Value Measurement - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities	$ 131,631	$ 228,761
Total financial assets	150,335	252,406
Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities	110,268	198,380
U.S. treasury and agency securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities	21,363	30,381
Money market funds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash equivalents	18,704	22,433
Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash equivalents		1,212
Level 1
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total financial assets	32,753	42,497
Level 1 \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities	0	0
Level 1 \| U.S. treasury and agency securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities	14,049	20,064
Level 1 \| Money market funds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash equivalents	18,704	22,433
Level 1 \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash equivalents		0
Level 2
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total financial assets	117,582	209,909
Level 2 \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities	110,268	198,380
Level 2 \| U.S. treasury and agency securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities	7,314	10,317
Level 2 \| Money market funds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash equivalents	0	0
Level 2 \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash equivalents		1,212
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total financial assets	0	0
Level 3 \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities	0	0
Level 3 \| U.S. treasury and agency securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities	0	0
Level 3 \| Money market funds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash equivalents	$ 0	0
Level 3 \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash equivalents		$ 0

Accounts Receivables & Allowa_3

Accounts Receivables & Allowance for Doubtful Receivables - Summary of Changes in the Allowance for Doubtful Trade Receivables (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 2,868	$ 4,860
Provision for bad debt	732	1,028
Net write-offs
Write-offs	(264)	(3,963)
Recoveries	595	2,446
Net (write-offs) recoveries	331	(1,517)
Ending balance	$ 3,931	$ 4,371

Accounts Receivables & Allowa_4

Accounts Receivables & Allowance for Doubtful Receivables - Summary of Changes in the Allowance for Doubtful Finance Receivables (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 3,428	$ 2,275
Provision for bad debt	1,362	1,148
Net write-offs
Write-offs	(1,195)	(1,381)
Recoveries	133	214
Net (write-offs) recoveries	(1,062)	(1,167)
Ending balance	$ 3,728	$ 2,256

Guarantees, Commitments and C_2

Guarantees, Commitments and Contingencies (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Commitments And Contingencies [Line Items]
Guarantee term	10 days
Sale price of vehicles with outstanding guarantee	$ 219	$ 142.8
Carrying amount of the liability	1.5	1.2
Accrued Other Liabilities
Commitments And Contingencies [Line Items]
Recognized probable loss contingency	$ 1.7	$ 1.8

Borrowings (Details)

Borrowings (Details) - USD ($) $ in Millions	Jun. 01, 2023	Aug. 24, 2021	Mar. 31, 2024	Dec. 31, 2023
Revolving Credit Facility \| 2021 Revolver
Debt Instrument [Line Items]
Maximum principal amount		$ 160
SOFR floor	0%
Outstanding letter of credit issued			$ 125	$ 115
Outstanding letter of credit			$ 3.1	$ 2.1
Interest rate on outstanding borrowings			10.25%
Revolving Credit Facility \| 2021 Revolver \| Secured Overnight Financing Rate
Debt Instrument [Line Items]
Basis spread on variable rate	2.75%
Revolving Credit Facility \| 2021 Revolver \| Secured Overnight Financing Rate \| Credit Spread Adjustment One
Debt Instrument [Line Items]
Credit spread adjustment	0.11%
Credit spread adjustment term	1 month
Revolving Credit Facility \| 2021 Revolver \| Secured Overnight Financing Rate \| Credit Spread Adjustment Two
Debt Instrument [Line Items]
Credit spread adjustment	0.26%
Credit spread adjustment term	3 months
Revolving Credit Facility \| 2021 Revolver \| Secured Overnight Financing Rate \| Credit Spread Adjustment Three
Debt Instrument [Line Items]
Credit spread adjustment	0.43%
Credit spread adjustment term	6 months
Revolving Credit Facility \| 2021 Revolver \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Interest rate	1%
Revolving Credit Facility \| 2021 Revolver \| NYFRB
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Revolving Credit Facility \| First Amendment to Loan and Security Agreement
Debt Instrument [Line Items]
Maximum principal amount	$ 160
Letter Of Credit
Debt Instrument [Line Items]
Maximum principal amount		$ 20

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease costs	$ 1.3	$ 0.4
Weighted-average remaining term	9 years 8 months 12 days	7 years 3 months 18 days
Weighted-average discount rate	10%	5%
Right of use assets in exchange for new lease liabilities	$ 14	$ 0

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Leases [Abstract]
2024	$ 4,749
2025	6,001
2026	5,732
2027	5,414
2028	5,105
Thereafter	22,060
Total lease payments	49,061
Less imputed interest	(17,171)
Total	$ 31,890

Leases - Leases Recorded on Bal

Leases - Leases Recorded on Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Operating lease right of use assets:
Other assets	$ 32,120	$ 16,858
Operating lease liabilities:
Accrued other liabilities	3,231	1,647
Other long-term liabilities	$ 28,659	$ 15,034

Revenue - Summary of Primary Co

Revenue - Summary of Primary Components of Revenue, Level of Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Marketplace and service
Disaggregation Of Revenue [Line Items]
Revenue	$ 129,814	$ 104,863
Auction marketplace revenue
Disaggregation Of Revenue [Line Items]
Revenue	67,329	54,002
Other marketplace revenue
Disaggregation Of Revenue [Line Items]
Revenue	54,569	42,691
Data services revenue
Disaggregation Of Revenue [Line Items]
Revenue	$ 7,916	$ 8,170

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Disaggregation of Revenue [Abstract]
Contract liabilities	$ 5.4	$ 4.2
Revenue recognized	$ 4.2

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Number of Options
Outstanding, beginning of period (in shares)	6,296,350
Exercised (in shares)	(719,039)
Forfeited (in shares)	(1,611)
Expired (in shares)	(4,352)
Outstanding, end of period (in shares)	5,571,348	6,296,350
Exercisable (in shares)	5,292,470
Weighted- Average Exercise Price Per Share
Outstanding, beginning of period (in dollars per share)	$ 2.49
Exercised (in dollars per share)	3.34
Forfeited (in dollars per share)	5.42
Expired (in dollars per share)	5.32
Outstanding, end of period (in dollars per share)	2.37	$ 2.49
Exercisable (in dollars per share)	$ 2.18
Intrinsic Value, Outstanding, Beginning of period	$ 79,728
Intrinsic Value, Outstanding, End of period	91,345	$ 79,728
Intrinsic Value, Exercisable	$ 87,800
Weighted Average Remaining Contractual Term, Outstanding	4 years 6 months	4 years 9 months 29 days
Weighted Average Remaining Contractual Term, Exercisable	4 years 5 months 1 day

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of restricted stock unit (Details) - RSUs	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Number of RSUs
Outstanding, beginning of period (in shares) \| shares	7,237,920
Granted (in shares) \| shares	608,294
Vested (in shares) \| shares	(1,068,053)
Forfeited (in shares) \| shares	(115,198)
Outstanding, end of period (in shares) \| shares	6,662,963
Weighted- Average Grant-Date Fair Value
Outstanding, beginning of period (in dollars per shares) \| $ / shares	$ 14.37
Granted (in dollars per share) \| $ / shares	15.65
Vested (in dollars per share) \| $ / shares	14.98
Forfeited (in dollars per share) \| $ / shares	14.50
Outstanding, end of period (in dollars per shares) \| $ / shares	$ 14.37

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) agreement shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of contingently returnable share agreements \| agreement	2
2024 Agreements
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average period of recognized term	3 years 9 months 18 days
Common stock authorized \| shares	773,099
Compensation expense related to unvested shares	$ 10.6
Restricted Stock Units and Common Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense related to restricted stock	$ 84.7
Weighted average period of recognized term	2 years 3 months 18 days

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
Income Taxes (Details)	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective tax rate	(2.00%)	(2.00%)

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Schedule of Basic And Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Denominator:
Weighted-average number of shares of common stock - Basic (in shares)	162,889,642	158,694,919
Weighted-average number of shares of common stock - Diluted (in shares)	162,889,642	158,694,919
Net loss per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.13)	$ (0.11)
Diluted (in dollars per share)	$ (0.13)	$ (0.11)
Common Stock Class A
Numerator:
Net loss attributable to common stockholders	$ (17,718)	$ (14,393)
Denominator:
Weighted-average number of shares of common stock - Basic (in shares)	140,979,870	125,500,186
Weighted-average number of shares of common stock - Diluted (in shares)	140,979,870	125,500,186
Net loss per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.13)	$ (0.11)
Diluted (in dollars per share)	$ (0.13)	$ (0.11)
Common Stock Class B
Numerator:
Net loss attributable to common stockholders	$ (2,753)	$ (3,807)
Denominator:
Weighted-average number of shares of common stock - Basic (in shares)	21,909,772	33,194,733
Weighted-average number of shares of common stock - Diluted (in shares)	21,909,772	33,194,733
Net loss per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.13)	$ (0.11)
Diluted (in dollars per share)	$ (0.13)	$ (0.11)

Net Income (Loss) Per Share -_2

Net Income (Loss) Per Share - Summary of Potentially Dilutive Shares Excluded from Computation of Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Unvested RSUs and other awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from computation of diluted net loss per share	2,385,164	1,082,627
Stock options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from computation of diluted net loss per share	4,800,879	5,281,394

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) $ in Thousands				3 Months Ended
Acquisitions - Narrative (Details) $ in Thousands	Mar. 13, 2024 USD ($)	Mar. 08, 2024 USD ($)	Jan. 30, 2024 USD ($) shares	Mar. 31, 2024 USD ($) business	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Number of businesses acquired \| business				3
Goodwill				$ 169,305	$ 103,379
Alliance Auto Auctions
Business Acquisition [Line Items]
Cash consideration			$ 66,400
Consideration shares issued (in shares) \| shares			639,976
Fair value of consideration shares			$ 8,600
The March 8th, 2024 Acquisition
Business Acquisition [Line Items]
Cash consideration		$ 26,700
Goodwill		8,100
Intangible assets		13,000
Net assets (liabilities) assumed		$ 5,600
The March 13th, 2024 Acquisition
Business Acquisition [Line Items]
Cash consideration	$ 19,100
Goodwill	18,700
Intangible assets	1,000
Net assets (liabilities) assumed	$ (600)

Acquisitions - Assets and Liabi

Acquisitions - Assets and Liabilities Assumed (Details) - Alliance Auto Auctions $ in Thousands	Jan. 30, 2024 USD ($)
Assets Acquired
Cash and cash equivalents	$ 2,465
Trade receivables	14,855
Finance receivables	0
Other current assets	815
Property & equipment, net	892
Goodwill & intangibles	72,424
Other assets	8,305
Total assets acquired	99,756
Liabilities Assumed
Accounts payable	14,945
Accrued payroll	381
Accrued other liabilities	2,012
Deferred revenue	60
Other long-term liabilities	7,362
Total liabilities assumed	24,760
Net assets acquired	$ 74,996