ACV Auctions (ACVA) 7 Nov 242024 Q3 Earnings call transcript

Good day, everyone, and welcome to today's ACV Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this call is being recorded. [Operator Instructions] It is now my pleasure to turn the conference over to Vice President of Investor Relations, Tim Fox. Please go ahead.

Good afternoon, and thank you for joining ACV's conference call to discuss our third quarter 2024 financial results. call Chief Chamoun, Financial the and Executive on Zerella, Bill Officer. me are Chief George Officer; With

Before we guidance. get and to include are forward-looking differ started, to involve please note including subject release, those cause regarding that factors found expressed statements materially that both future actual Relations and from financial in to risks our related These risks could statements statements, forward-looking and uncertainties today's results or implied uncertainties be and can by which website. filings such can of statements. in be found A today's Investor SEC press discussion of the our our comments business on

earnings both reconciliation found be which our this we non-GAAP call can Investor is to on During that, with George. Relations to the non-GAAP today's financial measures turn GAAP of will let materials GAAP over measures. me A discuss also financial call, website. And in and provided

and for Good you joining afternoon, Tim. everyone, us. Thanks, thank

quarter We for pleased We end with very our another performance drove the The exceeding EBITDA of and business. are revenue strong quarter guidance. high capital. gains wholesale with ACV along our performance. and core share transport in both team record adjusted delivered of ACV market third dealer record

expand per million reflecting We're our performance, growing QX we we quarter Our significant XXX,XXX market margins a create and to shareholder of Slide of value. profitable on year-over-year We year guidance, sold third let's year-over-year. confident are X. Revenue strategy this XX% strong the deliver in address increased dealer of full offset With results tech to road to reflecting on and year-over-year, growth. strong XX% grew traction, increase XX% centers. continue raising EBITDA progress that, gain to our decline executing growth of on more vehicles, suite solutions growth and map a recap our market. Based on execution turn by $XXX commercial than which and our commitment our wholesale as a long-term growth year as strong line unit. driven that solid well of top rates first drive adjusted profitability. GMV GMV across XX% conversion listings unit will remarketing

X. on and focus our on with I maximize growth. will long-term of growth, to strategy X discussion value, the pillars Slide shareholder Next scale. will Today's innovation begin

Turning observations the to market volumes. context wholesale X. Slide I'll start about with automotive regular as

front, fairly QX. in retail the On muted sales were

retail X% New sales while flat. used increased sales retail year-over-year, were

to future. levels should sales historical Importantly, incentives recovered OEMs near which retail levels are new in support the vehicle normalized more to inventories increasing have and returning

of terms the inventory to started vehicles, from has In used recover XXXX lows. historical

remain XX% they the higher percentage below to vehicle However, as for dealer of retail. quarter. Used the market headwind be dealers continue retain wholesale normal a for material a shortages trades exiting

mix mix uptick However, vehicle recovers. and the in expect normalize wholesale trade see few we did over another to to the we as the used inventory next in modest QX, years

engagement. On expected, conditions As to more encouraged in investments our of improvements driving patterns favorable pockets within balance, and driven returned above see were we're QX from innovative rates broader dealer by part averages, Conversion automotive and normalized strong in QX. market. wholesale market historical marketplace price the to depreciation

Moving to Slide X.

margin services, coverage in again delivered QX. record, lane highlights quarter. XX% exceeding XX% of a our was delivered volume record of while efficiency. XXX,XXX expanding also revenue year-over-year By team margins. growth ACV leveraging was AI, Revenue achieved It transportation midterm high-teen XX% pricing basis cover with our and points XXX beginning driving operating on optimized deliveries Let's quarter. Transportation. The target our value-added in team last AI the

to early accelerate deliver our long-term services but and network carrier partners. excited dealer is stages in Lastly, transportation deepened growth, densities that service relationships. our with off-platform value-added gaining new traction We're create

managing risk environment while ACV Capital X. The challenging that independent Slide to be continues to Turning in began for solid an growth, team delivered dealers. to

source marketplace. capital dealer on last provides we is new a piloting retail consumer financing or for offering that As wholesale team trade-ins quarter, ACV's that and vehicles highlighted the are sold

positioned dealer to updating bundle to coming sorting ClearCar uniquely Capital new look in with forward We support We ACV strategies. this offering quarters. to you are the on

I'll long-term element of the our Next, address value, strategy second innovation. drive to shareholder

Turning to XX. Slide

Our pay dividends. marketplace investments in engagement continue to

along which best-in-class vehicle As conditions, experience advanced I rates merchandising, conversion on buying flexible were our from with AI-enabled benefited formats, QX rates earlier, pricing features search, deliver mentioned market a conversion like strong, and marketplace. favorable auction

out both investments Texas on create key to of support well. excited and dealer to delivering opportunities that ACV Recall will regional initial group IMS centers. MAX suite to market, wholesale consigners. Furthermore, continues a growing a integrating auto proving platform solution recent prospects. tech across gain progressing to footprint cross-sell additional a new new that ACV's our traction offerings is commercial bundled are expanding roll Max support valuable including while The in Our share. of and remarketing these pipeline be driving win focus initiatives commercial with enhancements new core wholesale marketplace We're the our a focus MAX to the standardization is offering. ACV market for

Our objective of ACV. is our to partners align dealer interest the and

Dealers a appraisal making cases. growing channels, of sourced is vehicles the number technology praising in factor. [ dealer category, pricing use their and cases, drives. Across and and critical for Finally, consumers across self-infection success is to demand are accurate these trades use ] digital service vehicle offers through ACV's a

days It's self-infection localized incorporate solutions hand real-time category. opportunities, in still long-term of expansion. unlock this a Our can for on inspections pricing and based is imaging damage number that early we data growth millions of TAM in conditioned believe detection in AI appraisal including But our mode.

the our customer ACV to provides in groups And fastest-growing consumer live also another remains the team ClearCar by over avenue one ClearCar year-end. to new have turn self-inspection operations. retail X,XXX deepen to wholesale strategic of largest and to with highlight their ClearCar Slide ClearCar. Market of is of across dealer targeting is XX like grow traction solutions, Let's us our Max, country. our driving strong, and wallet some including wholesale share partnerships and acquisition, dealers

progress dealer Volkswagen grow this from Diego, posted quarter, to Ernie with and our video marketplace. on share partners the which ClearCar [ to wallet these feedback using #X significant Again, dealership new Our be is our share We from Mesa, wholesale in partners. San their driving website, a describing dealer time. teams team the ], working It's value from Petrin up our we're they're excited scale. over of We to ACV solutions. one own will partners IR dealer on growth our great to hear another industry-leading and sharing take next to to how With you driving you quarter. let both that, dealer financial hand look driving growth and opportunity it technology wrap to with our a our more over and we're directly delivering scale. partner. To and is forward through results ACV me Bill innovation. operations. to

for and joining today. us George, thank Thanks, you

our very with EBITDA are a our accelerated strength of begin of line QX of range. came was recap the business acquisitions, meaningful model. of quarter $XXX our On and in with Revenue XX% revenue delivered of in third growth, high let's quarter strong we end million which from performance. XX, demonstrating was pleased Slide the asset Approximately financial our expectations. with revenue We guidance growth, the Along margin expansion above our well results. with

or leverage. range, of organic operating The revenues was auction points $X insurance by adjusted by strong was Adjusted So nearly 'XX. and improved above the X,XXX $XX QX strong basis EBITDA guidance EBITDA our XX% million growth. versus and was of driven million high overperformance by the end margin and upside high-margin driven

XXX Finally, basis net above non-GAAP high income guidance. also year-over-year. increasing points of was end margin meaningfully approximately the with

Next unit from and assurance revenue units third $XXX, grew insurance year-over-year. growth that XX% reflects approximately and auction quarter review Slide assurance XX% revenue ARPU let's XX% XX, year-over-year of revenue details. Auction This and grew of additional year-over-year. on XX% performance and acquisitions. which came of XX% was Note total

growth, underscoring included in for So we strong market year-over-year, in grew record Services XX% and reflecting a capital. transport Marketplace share that total revenue single of XX% organic delivered revenue both the gains low was digits. revenue our ACV unit

of with Our once revenue total comprised services again growth in SaaS data territory. positive and X% products

Next driven assurance The in points decreased of cost on percentage review auction I'll basis revenue results Slide costs and by was year-over-year. XXX quarter. QX as the a of improvement by revenue XX, approximately transport. as we discipline excluding of a as points of scale basis XXX expense revenue, our and operating decreased ACV revenue, on business. year-over-year. cost Non-GAAP These optimize percentage focus expenses, our results reflect

to strategy Moving investment as XX, I'll our we Slide growth. frame profitable drive

expected to platform points adjusted investments. increase we by in on operating OpEx spending center approximately EBITDA focus XXXX, yielding year-over-year. a basis in resulted commercial and execute remarketing we In adjusted improvement strategy to year-over-year Even with expect investments, growth these XXXX, our XXX OpEx significant EBITDA. is on to increase as a growth in in Our margin and continue decrease efficiency discipline

highlight and cash will capital strong cash our XX. We ended equivalents securities million marketable structure Slide and $XXX in and QX Next, of $XXX debt. on million I with

expansion. Our business. includes million the fluctuates strong in which flow of our $XX flow. balance weeks cash we based million. meaningfully on on adjusted year-over-year. of reflects the float float amount and on even final in excluding significant float, QX trends cash auction change when each strong operating Note transition positive figure improvement of cash year-to-date that business sheet The increased our right, has X year-to-date the operating margin In operating flow cash EBITDA million $XXX highlight balance This on $XX impact our marketplace of our quarter, a to in the corresponding

on Slide guidance to turning Now XX.

reflects growth a expected we're achieving and quarter the adjusted our revenue in consistent We $X to million quarter impact For of our impact revenue $X million to range million, forward. of positive EBITDA fourth EBITDA. to million the negative to $XXX guidance commitment Note be XX% Southeastern the that our in hurricanes Adjusted regions. fourth million quarter, EBITDA $X estimate recent year-over-year. to $XXX XX% in going of in $X adjusted is of with each the expecting approximately range million the of in

$XX guidance. to to expect now for approximately to be and XX% Adjusted range full Note to the year XX% single-digit range million. year, Revenue we expected $XXX revenue. full growth $XX million, now of that million is a percentage EBITDA EBITDA account of to in our the million high to we For of in raising acquisitions is expected the be revenue year-over-year. are of adjusted $XXX

are approximately we be guidance, to dealer year-over-year wholesale will relates volumes flat that assuming for it XXXX. As

rates depreciation normal We seasonal and patterns. price wholesale to follow expect conversion

to of to committed points. revenue, amortization and model. and OpEx cost non-GAAP We remain growth, to exceed expect percentage finally, XX. We target achieving XX to depreciation moving our midterm by approximately also Slide excluding growth continue revenue And

adjacent we've which clearly scale, of Our margins demonstrated through revenue share targets our all by markets and and expanding penetrating market in sustaining underpinned gains, are performance. mix

time. But expanding over George. on addition, taking Our me growth. And are predicated which and drive consistently share, turn the it recovering we TAM market targets are to back in will let volumes primarily wholesale midterm to that, dealer historical long-term with our

Thanks, Bill.

I summarize strong Before QX. our we your very pleased with -- questions, we are take execution will in

We these are especially teammates results. that our delivered of proud ACV

attracting while expanding marketplace We growth continue conditions to commercial partners our addressable for market positions market gain and ACV as our by attractive new share improve. which to dealer market,

road to efficiencies. We exciting are product operating ACV delivering further map on differentiate an and drive

to target XXXX our track achieve shareholder targets value. and drive deliver on midterm are We will believe on that EBITDA adjusted significant we our

team We that, are the the to turn committed I'll to these world-class over a results building begin goals. With call our Q&A. deliver achieving to on operator the to while

Needham. with we Pierce And take first Instructions] question will [Operator Chris our from

I basis. you from the $XXX to I had it and kind understand reiterated if question better into? coming at Bill auction time, just vehicle about right the -- assurance the want the know call, to that. on the over intentional to auction side just assurance a that's if per not seems we be I if -- a of I should think of in that, or way the something metrics versus want on something sort to more on look that's and read of

it's Chris, Bill.

revenue and So GAAP again, I not segregated wouldn't really assurance trends. the the distort think because some auction can of of accounting that. combined, read Again, anything into

longer the -- the share, here? what or your of -- on we world, other someone Okay. has your wholesale the thinking larger about players own wholesale -- some Perfect. then their actions that Carvana just run retail like grows like look own the think of if And side wholesale term as business does

just So what. Chris, I George, want here. you question? to can that understand repeat

think What dealers. what players think Yes. I have about possibility these that way you that want own larger if about kind Like the Yes. kind happens of plays to within share, to of right their wholesale your dealers they out? talk as business we players what -- about independent happens happens that run action. what's grow just consolidation is because like larger if at and Carvana point,

all right. that's Yes,

Carvana X% dealer correctly. And country, then incredible market I believe across has independent think the remember and across about I XX,XXX buy cars franchise need artificial all they compete. country all yes, They when they solutions, today, their share, from need So drive around appraisal to consumers. learning if solutions the businesses. dealers solutions. them help They the and to And dealers in XX,XXX-plus need you locations rooftops the those to machine need need will intelligence

at look really big and empowers compete that Carvana technology the these are to we So the building the against box other dealers all players.

could across cars U.S., they have used buying to It's important some more that's think cars, we're help the get consumers that about So a selling be estate our incredible the dealers real brands. the and of and way to them from incredible we lot this. and And think I going think inventory. most really a category. and more

question And Citizens take our of Jones we Nick will JMP. next from

Could us take? kind inflation. may remind a kind Philosophically, around do I up see to up. about you we level how at take perspective? track as have price industry how look pricing give how you maybe of you think about can picks to some of of competitors some the broadly? levers year, a depreciation sense kind have a you then about of ahead and know tracking makes for of we price if -- I kind at should pricing you of bit that? be room just $XXX, little up, you that there's follow-up. each thinking But taking we seem competitors a from kind think how And Are Or or you're

Yes, certainly.

-- to were gain we the So on we And First, did share. really our our under ability know, market. on we've progress from any [indiscernible], on made as continue without impact great you gap closing significantly that to

we've done little of very each time with So year. how pleased it a

pricing We the careful doing partners are but on more a things dealer of to our getting very our for right competitive level. really

side, ecstatic those on keep with more little make a rather of more team our And way that changes. We but around sort have really So some all out with do I'm sorry, the just sell our $XXX, as for volume. wrong $XXX we've our bit you $X the the to that -- the way, midterm side remind going discounts get room $X probably to set headroom, bottlers. you, -- prepared -- target. thinking sell price dealers we'd on

sellers. of you we as some like continue And of all But mix. in for So our that's you now still already we be all $XXX thinking part that our to until guide to grow we'd volume, for otherwise.

I as targets, the election. guess, you the years? kind higher? in a it. are a pretty or we rates kind one on a with you market rates vehicle industry deal. midterm post normalized of to post mean, and Just stay on debate way -- good few environment? Got would the about if getting kind of could If rate think think normalized next the a election of Do path market on of a maybe as interest some to, of the happen to debate any any the I of other the kind maybe kind over speak going I thoughts to to $X guess challenges what's kind more

Yes,.

of we seen their the see year, car So interest between are consistently playing is the starting obviously, more way seen the see think to we're end we've and more dealers the We're incentives. cars see and next new starting incentives have we've will will cars. I now vehicles. more -- We're to incentives. And what new to pricing on rates new new

as who new So that folks kind a look about are if of at next thinking we that one area there's from different perspective. year

they're really think that to is seen next into that like have dealer is one industry going to flattish. And that report You've dealer be auction of the could I a of still folks little folks few why bit MAAA do relates year. how I about wholesale, sort used think that some is off to read next year what and you -- that think you're of sort different about cars. saying would the a say could wholesale When way lack of a be new

from next all we least least -- more that. between So 'XX. rates, talk a had More now, at sort next interest a we a year thinking and maybe to bit if it about a when have when come have enthusiasm about think all year, from we at just lower more I you the true things, now other But tailwind I like market to okay, tailwind little feels into But flattish perspective. year. other mentioned, will things of could true I'm hopefully, than with next going

our Labick And take Bob with we will next question from CGS Securities.

upside the Nice on the job quarter. in Great volume on particular.

at look the an volume seems first I rough seems versus it, growth this versus the quarter I growth are but know drivers? is and half? What's first kind math, like as what quarterly from of organic incremental the already that true, the key if my organic the So is like it strong And -- it half. the accelerated

Bob, it's Bill.

So, yes.

organic business. our upside the driven certainly of by growth So was the

driven track centers we remarketing on on And was forecasted. factors. much were Our by based really what pretty several that

the So marketplace had better-than-expected of had we Number offering. just conversion really and continued number terms share great one, for rates our gains. in we quarter. two, performance services

years. we've highest really combined seen, several the that drove organic growth So those frankly, in

that that pleased performance. we've seen continue And so into early So QX. far we're really, really with

guidance. our However, of kind quarter for of in baking seasonality we're rest in the obviously the

talked you back other year. is just me. for Great. QX, one then for just which in sense the look QX accelerating for just if every obviously, we organic, And seasonality about makes It Right. also advance these have and far? move you commercial. But kind acquisitions then have on. like are learn, you tweak do observe, What learned you know so made guys versus it great. in I to of

learned future XXXX what conditioning you into far? So think or affect your we about How in And centers? so and how acquisitions commercial have it does should beyond.

Thanks, Bob. Yes.

So learning see great enabling where consignors, lot. to like some work learn consignors we're it's the both the with really locations your -- a for to We've we're commercial to so they'd our place. point, us technology in first, got

inspection early how You'll locations technologies see our these about year, us more implement to that talk hear we're more. at about talk going us next

combining us other -- systems of some office talk about we're our how You'll our back-end hear and capabilities.

you that about technology these so when to going And help the right the really think designers, help commercial building we're decisions. to them it's make

a really car shows or have should going on X. breakthroughs we're when And vehicle next some year the reconditioning they not? or that I up, should they over much think be How spending be So reconditioning. to

said commercial. having our a still little that, current Now volume is right we're X% early over now of stages,

So ahead want just don't to ourselves I get of yet.

Next a product required. of I meaningful year, in that part this very our overall when in become volume. about we'll out-years be still commercial in technology But could investing think

our will we JPMorgan. with Gupta Rajat from And next take question

I on acquisitions wanted to initiative good some the around this through. commercial margins. quarter just through you're a ask Congrats are We here. going coming around know the framework incremental year,

to curious are you there if that? pipeline Help Are inflect I a the you of be follow-up. more we the How of near-term on could EBITDA have working You the XX%, next understand this long phase, integration other expect initiatives. depress quick to us framework once should this have that? through that around in you're year? should areas expect range mean incremental kind And a I lot Just XX%? product would that

Bill. Yes. Yes. Rajat,, it's

talked normalized EBITDA past So a incremental terms of of in the kind organic about target XX%. what we've in is of

into as the year our out taking commercial account platform implies making this we're our So XX% part investments building of to support business. approximately that guidance

year So expansion continue we'll rollout year. EBITDA commercial next right that this similar EBITDA platform the we've support make thinking while terms now, But planned to continue margin. improving in is margin. our of progress expanding the to done terms of to what we'll our in incremental

next that revenue XX% growth. the to incremental continue we'll we EBITDA we So expect marginal hit the forward, but would to on wouldn't year, get move ball fully

dealers thing really committed Rajat,, EBITDA. in -- of gains we're ramp our and said, Obviously, showing the self-inspection to that. going be the we from committed, we're is both only execute to our sort capability. in which cars the to and we'll Bill I'll that more source stay on is making progress add consumers, it's as this But TAM, to also of sure commercial helping expanding

year, both core next in the we're dealer So an can we very only wholesale what from expanding invest EBITDA year-over-year but that also improved do done perspective, not but excited, we've we also in the fact believe our TAM. both,

if market you That Bill, expecting a of it. as Is I would follow-up. I Got makes you're acceleration more you that the could there? quarter. And correctly, kind XQ I be mean heard think saw give that mentioned just fourth color the not share And that in you in correct? us the just sense. you same if that why case

I and Yes, at in what think don't we there's That's said [indiscernible] November think typically typically go every done rates it's almost down. least we year. Conversion said is December, what I

at to when year, to you every of you heard December conversion So Bob the down. November it come this earlier, and in mention tend business, rates seasonality look

in quarter remarks the about Rajat, estimating also EBITDA. million about hurricanes way, our mention, impact I $X by in impact I from the the in the There's prepared -- regions. that our $X revenue million Southeastern the other Yes, that and didn't on would we're discussed we in

for into that bake as well. we So our guide QX

acceleration from it in maybe it think market like organic quarter, I above like way. in third XX% XX XX points, meant an what it's growth The to did. think different points seems I ask -- That's at, the that I a I the similar not in trying well? case? of that I saw is get market the that in as was quarter you the what is share XQ, kind fourth Are delta what to assuming you XQ. but... think Or

based I pretty QX, that I don't that will prepared we share although have to difference at our much say front way. exact going QX on market on back in didn't continuation in don't would market I'm question. share. answer it But will really data QX, say, I share market good the a I was see actually us. say in we need between we It's to of any this thoughts point,

looking at I put now when I a basically, purely look when see look QX share listings, are of on hurricane listers, We gains at I seasonality little to a But for at bit that any difference market right stuff. QX. don't

of And George mean a same of the trying again, factors to we that I Rajat, guidance continuation quarter, into kind in the be seen terms start a and we've to in the strong always saw QX of But really kind we're our of growth rates October. mentioned. account, seasonality prudent through again, taking

but see we'll things go, us what to for basis was we obviously, did. So how guide that the

And Canaccord. we Michael from with next Graham will question take our

think quickly don't think in market, depth efforts hoping you of was another did, I a the get can how that's I your and more part there little if your become the you around this significant about Q&A, layer yet just just business? mentioned bit on of how like you apologize. you the But but remarks, on commercial that going wholesale talked to prepared a

bit is our over business. Yes. and tell a I'll today is of deeper the a Sure, one mentioned, we in volume our Yes, -- overall things of Michael. commercial little little X%

key areas. some investing well, going in So

area bringing So the side. the to this on where we've help always will commercial surprise the be that That's differentiating really areas an that no dealer be commercial side, right? business innovated you us will inspections, all

some in that QX. about talk us more hear You'll

how really consignment, how So auto differentiated, the really the the cars these not we'll all great we at that is area will at we're systems, investment here, for far. sort to well pleased -- then team the the be of good both how with next to is so innovating way to but our the get around sellers making mean IMS, I'm with be the be so going be commercial of going building we're will one end I how we're throughout experience feel day, buyers. auctions, get inspect we integrating leveraging in of year. that which the we we're this enhance office that the weeds consignors will and the But back

repeating we've think what without with earlier, are these said So so happy build-out done I but in this more topic, on to come I QX the probably far. there

And of wholesale? to one profitability to maybe related those then relative just that, a comment last quick units on the dealer

end the are EBITDA kind day, this per the unit. basically of revenue per into same. higher if unit slightly look get you basically slightly dollars I EBITDA per the per at if per at as what of dollars cost EBITDA unit, Yes. you matters, unit, look the -- But At unit. dollar higher same

will question we And B. take our Khan next Riley with Securities. from Naved

that the are of to the platform there? your these On the macro just function which rate, curious you changes or are making I'm us as that saw in saw give you did results the conversion pretty improvement quarter. the Or well if you third a market? of thoughts the in the

was both. And Yes. Great question. it definitely

us So definitely the used cars. demand There market conditions helped definitely. for a QX was lot helped of

this. of on made here, enhancements, of we've of conversion. We a slides we've the the was showed we factor. But technology constant here, -- as definitely We're that So you through enhancements some in gone some very proud it continue add. you know. to and also It's the product

Our engineering right sure team constantly and we're team cars the product are the merchandising making way.

these doesn't know cars, really making be buyers enhancements making on get the how of car they're the when to sellers enhancements cars, We these time sold time the around. there. first sell We're how bunch of buying. money our sell a it enhancements full could and around for what amount second keep So the

of and investing the keep in definitely -- area helping. conversion, it's we're So we

we've enhancement market and the also So the perspective. benefit technology both simple answer is some from made a

margin it. this sequential then revenue the there improved any year-on-year. basis? improvement, Got And on change transportation, the Was a on in margin

from making transport mean strides Bundling just to Kevin, to say, do Virginia. car bundling. just lanes -- leveraging choose lane coupled team the on there's would to Island vehicle, going already starting lane pricing by intelligence so Long with on a incredible we're when you they're some -- here is artificial how price a let's

take get the truck vehicle. the to let's same So same

That So -- of a small growing. cars portion keep our bundling will today. only it's also will

happy because very price us to giving our hitting we're the yes, to make margin we're But using our technology dealers for that the So right sure tech price is with we're also make leveraging to how help sure our we're objectives. dealer partners. important

And take with next Bank we America. from Stephen question of will McDermott our

for on This is Stephen McDermott Curtis Nagle.

wanted there? terms a in are as versus you of follow-up growth mix wallet to of And just gains kind well. share. about market talk the So have about thinking then share How the I

we when still better. our [ we're great only And a the lot happy about few why more look national grow And have right? in kind a is I opportunity their like thing. like wallet territory, it's then dealers it's in question. show share, a markets XX% to a And from No, see markets to country can a wallet share there's regional XX, those where conversion There's a But help XX-plus right, and lot local share a marketplace there's of where great overlay of see few It's we ways. at our one them that. Yes. XX% pricing and dealer many I study we whole there's dealers story that the those, wallet of to story. our multiple groups national consistently. as why have a But keeps in getting percent ] on of show them we this

both. it's So

still have continue only We sellers, new, we markets to and are share few a grow business. have yet. there relatively a and the will don't we're where some all lot of we And

We're days has thing ecstatic I early work is still with a all here the we the very the ways great But think happy We're model And keep So have to of there's a us share. market in the for the ACV overall with the lot long about here. hard go. we're growing. that's to done. team headroom

then this quarter autonomous but names some I pretty dominated know the and rideshare definitely And for some early, Awesome. last discussion OEMs. is vehicles

AVs guys away, really long mean behind much put years many still you do just thought but So And to philosophically, you strategy the term? the in have there? what

EVs. On

AVs, autonomous vehicles.

vehicles. Autonomous

They someone to. they be else autonomous thing go the to purchased from by somewhere that, need new overseas I will or vehicles in used will think, is someone or use. one, good They else U.S. to else become somewhere. will they the

what at -- ] simple think really category. whoever, asset look at user car world, go Uber the those look it vehicles, the through be to whoever on independent would it consignor way our And go to okay, that dealer needs. or recondition a I was fleet a sheet. don't great X franchise commercial. an of look believes And Generation is, is was, then user It's like whether as just to it will get sold go [ this the auction. eventually. will at initial a that In in I whether it keep once it to the balance some, their to almost want user I that was that or So they And

So the quick no than world. probably answer would different the commercial of rest be it's

And we will take Healy Coast Research. North . next with our John from question

auto X be on practicing work, of really that months you you and and And and one of out a to and And ask about off-lease could learning those of guess that. the some you like -- kind embrace I repo, which the I is When system side of think I guys? -- bit business. I to you about first I just or about your I in to makes the little to now rental, love that ask just of buckets gates. commercial buckets there if maybe wondering first move think to thoughts thoughts do the solution was about that have to those you on think us about IMS wanted think business, would might think give and think wanted hear we're I

volume Great from question. a We're sure. of volume most the perspective, mentioned making definitely from commercial today I repos and rental. Yes, on is

might our doing where them. with lot our So those -- been grow the one we business keep in take those with -- relationships. A [indiscernible]. are them is relationships of some area been be one to now able X And share, are we X have growing each we've try to X business we'll [indiscernible] first doing or and of

So partners wherever we X their could of can become ACV is of auction sort we -- take choice. of

year. be are a we're getting able next started. X. talk those I'll that more to to Hopefully, first just about the bit be definitely, little off-lease, So

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take of kind here regarding international part you cars AV, a kind used about let question phrase talked just wanted the being mentioned then to about of me a just And just last you. on just expansion. Got overseas, you or your get thoughts

incremental you talking solution sizable. money kind about that making globally. Where growth here are of that are margins at Now -- and is we're you're

I'll X of global front. on sort give you Yes. the perspectives

strategy still separate we're I'll and and of our think and we supply first about one, sort So early demand. creation. from foremost, demand in But

mentality. appraisal and to the it that apply, then by about by technology-first consumer, as type the relates Think self-inspection then very goes into dealer it's model the So solutions vehicle marketplace, think the we sort of ACV self-inspection a sold. taking

our stages car on lot very, the Or much are go marketplace. go It the early great here will our U.S. will technology new will in a it's direction OEMs or artificial around, be that trade-in car OEMs then -- model consumer into so their if but say, model the not us a go in do be the over about they'll And very we our still that question. to let's you'll model, to the they'll start dealer, year. will That's it helping model. they'll globally upload car intelligence car use our trying and asset-light necessarily same and And very module the to next the hear marketplace. a the who, a sell of will we We're talk a be be

take our with Glenn next we James. Shell from Raymond question And will

used new [indiscernible] report, I mix. in but First, some within wholesale of data? first should the your you on and flattish, the on October. XX% car for those showing volumes trade Have getting seen in growth that said own sales year-over-year wholesale to that trends any market you be know

mix levels? again then normalized down and that, that more versus a So specific to you number can where if and of bit and later, wholesale then like now is the trade I off I need. know break a it's

for one, I healthy. as don't we conversion mentioned your to reasons assume retail That point, will when start specific don't say month. The off We good months next wholesale see come only why we we're on think, rates to was was you and price to right? help mentioned, the healthy. I'm got to generally out at probably tough, a about start, seller But As conversion was market So would that a -- some it's the typically this fourth haven't pay I seen one the a that will couple the I stay off October were rates the that look the rates of quarter, good you sure asking quarter we we mix Bill because well. high reasons of thought right? higher earlier. -- one likely started fourth conversion another, willing that typically mentioned to depreciation start start high. as as price, to the stay over down. of see quarter

to to try just back but question kind other So question you it. way into I'm if answer there's to yet the than to of I'll we've any ask way, try another shared, your not sure want more

just XQ, specific super normalized Well, helpful. mix have number? And even more where do you wholesale versus just on to a that's then levels? trade is But that Yes.

We trade until to -- move supply to wholesale materially mix our improved mean mix I wholesale marginally comes in that we'll back. see I Yes. trade car think won't used the quarter. up

than that looked on need was we and today on team you, Just go cars cars me leadership like room XXXX. did call at And -- a XX% most in and I our of all dealers the we recently the more less is from his dealer Texas. with to out And have a like at group remind us less consumers. their cars looked lot that need used in XX% they in have to principal dealer action now have buy we we lots less right

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specific it was But time. see having to take will some see nice did it said the answer, least that, so marginal we improvement. marginal [indiscernible] at And And a a

take And our Colantuoni from John we with Jefferies. next question will

market a expansion. to Wanted ask question on

And of density start You've And around across will company. long how that, part scale where to new particularly markets as do update of into little If us you. Northeast. today? levels where newer us historically of better about I through right start been your the you'll that But take profitability will that, showing Where you aspiration out you part ago. those those the it few Canada, if of update could markets to for in just the the rolled you it reaching think, was getting those IPO, into talk a plans an start could curious bit second stand on level a strongest progress in expanding a years there?

the in which Yes, to more East very [indiscernible] great. we're Coast, We to strong has in the been share -- your we've So East gain point, Yes, Coast. continue actually

towards a of some in was We're like well gains, think, Texas. And that's year-over-year Texas as doing pretty Texas, from in example we've where country point far for for of I'll second. think -- I an the extremely in Buffalo. highest I us market the a

So I is come preparation groups. that's example more have you the moment to think more on prepared I'm more pleased. The give to topic. We're and all working an this I increasing. But a on and brand from maybe with ACV very dealer

into markets. with groups, us groups, dealer are pulls that many you're of kind more As in cities some working you the know, dealer as

cars ClearCar, are products first from so trying helping remember into good. your buy second. markets, new like far, dealers your consumers. more to new That was us Our question, helping so products break Yes.

you're one international IPO. The to go the always my have like first pull, think the market next markets been would going in when plans, an pulled or you'd some into assumption where think I assume put these to in is to been you right we've and irony that I be you sometimes go And you Europe. you, together Canada.

others OEMs small us next are in. But very stages where So talk more about and pulling early this is that us I you'll probably think year. hear

to it hear be will the about U.S. It won't -- the XXXX beyond are is will ACV and we starting small So But earlier, start model. be story we're the and beyond, hopefully it's to next model I the the very the start the material. self-inspection way for doing way based take And become we yes, will model. numbers you year. It model, to a think X. as more mentioned

goes or So our car marketplace. dealer walk you're condition the then into it to And using around artificial the consumer report. the have the intelligence to

So to come about we're More a topic. in early with bit this the progress. stages of this more can when we report pleased little very team's

program have any no will And time. turn additional the our for that further this we questions I at or presenters back appears to now remarks. it closing

again, forward I'd thank Madison. you And you like We circuit to interest in this the the today. on Thanks, for joining ACV. look your for Have seeing thank quarter. everybody to us call a evening. on great conference

This presentation. conclude today's for your you. does participation. you Thank Thank

any at time. disconnect You may