Buffalo-based startup ACV has reduced part of its workforce.
About 32 employees at ACV and ACV Capital, its financial arm, were cut last week, the Buffalo News reported, citing a separation agreement.
“We take all decisions related to our business and our people seriously,” an ACV spokesperson said in an email response to Business First. “As a growing and dynamic organization, we are constantly evolving our capabilities throughout the organization to align with our company’s objectives. We have been and will continue to hire in Buffalo and across the United States as we expand and adapt our workforce to continue to meet ACV’s vision of being the most trusted and efficient digital marketplace for the automotive industry.”
The spokesperson declined to comment on the number of employees cut, the types of positions and the job locations.
The startup, which employs about 2,000 globally and over 600 in Western New York, is among the 10 largest public companies in Buffalo based on revenue.
According to annual financials, in 2023 ACV grew revenue year-over-year by 14% to about $481 million. 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 a $102.19 million loss in 2022.
The business expects 2024 revenue of $610 million to $625 million, net income loss of $85 million to $80 million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $20 million to $25 million, according to its Q1 2024 earnings report.
Q1 2024 had revenue of $146 million, a 22% increase year-over-year. The quarter had a net income loss of $20 million, compared to an $18 million loss in Q1 2023.
Q1 2024 had adjusted EBITDA of $4 million, an improvement from the $6 million loss in Q1 2023.
"Along with delivering accelerated revenue growth, we had meaningful margin expansion and recorded our first positive adjusted EBITDA quarter as a public company, demonstrating the strength of our business model," CFO Bill Zarella said on the Q1 earnings call Wednesday.
