ACV Auctions Inc. reported robust financial results for Q1 2025, highlighting significant year-over-year growth and operational improvements.
The company’s performance exceeded the analyst’s expectations, reflecting its strategic initiatives and resilience in a challenging market environment. ACV Auctions is a digital automotive marketplace.
ACV Auctions revenue in Q1
In Q1 2025, ACV Auctions achieved revenue of $182.7 million. That marked a 25.4% increase compared to the same period in 2024. This growth surpassed consensus estimates by $599,000. The company’s GAAP net loss narrowed to $14.8 million from $20.5 million in the prior year. Meanwhile, non-GAAP net income rose to $7.5 million, up from $1.2 million.
ACV’s marketplace and service revenue reached $165.9 million, a 28% year-over-year increase. Additionally, ACV Auctions’ gross merchandise volume (GMV) grew by 13% to $2.6 billion. It also increased the number of marketplace units it sold increased by 19%, to 208,025 vehicles. These metrics indicate strong customer engagement and market share expansion.
During the earnings call, CEO George Chamoun expressed satisfaction with the company’s performance.
“We delivered strong revenue growth and adjusted EBITDA above the high-end of our guidance range, along with continued margin expansion,” he said.
He highlighted the company’s leading market position and the traction gained by its dealer and commercial solutions.
Chief financial officer Bill Zerella emphasized improvements in operating leverage.
“We continue to invest in growth initiatives while scaling the model in a disciplined manner,” Zerella said.
He discussed the company’s focus on enhancing operational efficiency and profitability.
ACV Auctions offers a suite of services, including ACV Auctions, ACV Transportation, ACV Capital, ACV MAX, True360, and ClearCar. It designed them to provide transparency and comprehensive insights for sourcing, selling, and managing used vehicles.
ACV Auctions’ 2025 outlook
Chamoun discussed the company’s efforts to support its commercial wholesale strategy.
“Our suite of dealer solutions gained further market traction, and we executed on initiatives to support our commercial wholesale strategy,” Chamoun said.
He acknowledged the modest year-over-year growth in the dealer wholesale market during the quarter but noted that it remained below historical levels due to ongoing inventory shortages and challenging market conditions in February.
For Q2 2025, ACV Auctions expects revenue between $193 million to $198 million. That would represent a 20% to 30% increase year over year. Looking ahead, ACV Auctions reiterated its full-year 2025 guidance: revenue between $765 million to $785 million, representing 20% to 23% growth.
During the earnings call, analysts from firms including JPMorgan, CJS Securities, and Bank of America inquired about margin scalability, marketplace conversion rates, and the adoption pace of commercial solutions. Management addressed these concerns by outlining ongoing initiatives to enhance operational efficiency and expand service offerings.
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