ACV Auctions Inc (ACVA) Q3 2023 Earnings: Revenue Up 13% YoY, Adjusted EBITDA Beats Guidance
ACV Auctions Inc (NASDAQ:ACVA) reported Q3 2023 revenue of $119 million, a 13% increase YoY.
The company's GAAP net loss for the quarter was $18 million.
Adjusted EBITDA for Q3 was $4 million, surpassing the company's guidance.
ACVA has updated its 2023 guidance, projecting revenue growth of 14% to 15% YoY.
ACV Auctions Inc (NASDAQ:ACVA), a leading digital automotive marketplace and data services partner, announced its third quarter results on November 6, 2023. The company reported strong revenue growth and adjusted EBITDA ahead of guidance, leading to an increase in its 2023 guidance.
Financial Highlights
ACVA's Q3 2023 revenue was $119 million, marking a 13% increase year over year. The GAAP net loss for the quarter was $18 million, while the adjusted EBITDA was $4 million. The company's marketplace and service revenue stood at $105 million, a 15% increase YoY. The marketplace gross merchandise volume (GMV) was consistent with Q3 2022 at $2.1 billion, and marketplace units increased by 13% YoY to 150,057.
We are very pleased with our strong third quarter results, with revenue at the high-end of our guidance range, along with year-over-year margin expansion, resulting in Adjusted EBITDA exceeding our guidance range," said George Chamoun, CEO of ACV.
Updated 2023 Guidance
Following its Q3 performance, ACVA has updated its 2023 guidance. The company now expects revenue to be between $479 million and $483 million, reflecting a growth of 14% to 15% YoY. The GAAP net loss is projected to be between $75 million and $77 million, and the adjusted EBITDA is expected to be between $20 million and $22 million.
Balance Sheet Summary
As of September 30, 2023, ACVA had cash and cash equivalents of $226.2 million and marketable securities of $224 million. The company's total current assets were $741.7 million, while total liabilities stood at $491.9 million. The total stockholders' equity was $467.1 million.
Outlook
ACVA remains optimistic about its growth prospects. The company believes that its strong market position and competitive moat have resulted in continued market share gains and accelerated revenue growth. ACVA also launched new technology solutions to expand its addressable market and drive operating efficiency.
Despite the challenges posed by dealer wholesale volumes remaining constrained relative to historical levels, ACVA believes it is well-positioned to deliver sustainable growth as end-markets further recover.
Explore the complete 8-K earnings release (here) from ACV Auctions Inc for further details.
This article first appeared on GuruFocus.
