ACV grew revenue and decreased net income losses amid a tough industry climate.
The Buffalo-based business grew revenue year-over-year by 14% to about $481 million in 2023, based on its annual financial report filed Feb. 21. But with increased annual operating expenses as well, ACV (NASDAQ: ACVA) ended the year with a $75.26 million net income loss. That’s an improvement from the annual $102.19 million loss in 2022.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for 2023 was a loss of about $18.2 million, which exceeded the company’s guidance range.
ACV, among the top 10 largest public companies in Buffalo based on revenue, had a bright outlook for 2024.
“We continue to execute on our playbook,” CEO George Chamoun said on the Feb. 21 earnings call.
The business expects 2024 revenue of $610 million to $625 million and adjusted EBITDA of $20 million to $25 million.
The company has multiple recent announcements to celebrate as well.
- The business, an online marketplace business for automotive dealers that employs about 2,000 globally, recently settled an antitrust lawsuit it filed in 2022 against major competitors.
The settlement resulted in ACV getting an AutoIMS license, a tool that connects remarketing networks, consignors, third-party services providers and auto auctions. Getting that license “was huge,” according to Chamoun.
- ACV recently acquired a Texas-based auction group, expected to contribute about 5% of annual revenue this year, based on a press release. The acquired business was not named in the release.
- Late last year, the business introduced global brand ClearCar, a consumer sourcing solution that leverages AI and real-time market data to give accurate, condition-enhanced pricing.
The brand has about 600 dealer rooftops currently, according to the earnings call.
- Last year, ACV added three leadership roles (a chief information officer, a chief commercial officer and a chief experience officer) as part of its plans for growth. All three roles are new to ACV, are vice president level positions that report to members of the company’s C-Suite.
- The company renewed over the past year its focus on growing commercial wholesale business.
“It turns out, our timing could not have been better,” Chamoun said on the earnings call.
