ACV Auctions Posts $214 Million Q2 Revenue as 6% Wholesale Market Drop Pressures Margins
Updated
Updated · Yahoo Finance · Aug 20
ACV Auctions Posts $214 Million Q2 Revenue as 6% Wholesale Market Drop Pressures Margins
1 articles · Updated · Yahoo Finance · Aug 20
Summary
$214 million in second-quarter revenue and $21 million in adjusted EBITDA beat ACV Auctions' guidance, even as executives said wholesale conditions worsened through June and July.
211,000 vehicles sold helped ACV gain share in a dealer wholesale market that contracted about 6%, with no-reserve auctions, higher field capacity and a record dealer partner base driving growth.
41% of revenue came from marketplace services, where transport revenue rose 19% on 125,000 vehicles moved and capital attach rates reached a record in the high teens.
300 basis points of cost-of-revenue pressure reflected a higher mix of no-reserve sales, while first-half operating cash flow fell on marketplace float swings; ACV still expects second-half stabilization and positive operating cash flow.
ViPR launched after beta and is already working with half of the top 50 dealer groups, while ACV also highlighted new fleet and rental consignor wins as it changes CFOs.