ACV Auctions got some attaboys from its investor-analysts Wednesday for second-quarter results, which far surpassed expectations.
The company’s quarterly revenue hit $97.4 million and it adjusted full-year revenue expectations from $307 million-$303 million previously to $332 million-$338 million now.
According to company CEO George Chamoun and CFO Bill Zerella, the quarter told a deeper story about a company making progress on its long-term vision.
“We continue to execute on our proven playbook to grow marketshare by attracting new dealers into our ecosystem and by capturing additional walletshare within our existing dealership network,” Chamoun said.
The Buffalo-based firm (NASDAQ: ACVA) started with three co-founders in 2014 but now has more than 1,700 employees across the U.S – double its headcount from two years ago. ACV went public earlier this year at $25-per-share, initially seeing that price surge to the upper $30s, then plummet the lower $20s, and finally to a few cents above its IPO price in after-hours trading Wednesday.
ACV’s core product is a marketplace for automotive dealers to sell used vehicles to one another, and company leaders focused some of their comments on the rapid expansion of that initiative this year. By year’s end, for instance, ACV’s footprint will cover most of the major automotive franchises in the United States. Chamoun said ACV’s marketshare growth was illustrated by its quarterly transactions, which increased from about 128,000 last quarter to about 150,000 in the previous three months.
ACV is also heavily focused on adding products and services that support its customers, dubbed “dealer-partners,” while giving it more business opportunities within its existing network. That ideal has driven several acquisitions recently – including the $60 million purchase of MAX Digital this quarter – along with the development of brands such as ACV Transportation and ACV Capital.
“We have a proven business model that can deliver scalable growth with attractive unit economics and structural operating leverage that we believe will drive significant shareholder value,” Chamoun said.
