Acv Auctions Inc. operates a digital marketplace specifically designed for the automotive industry, facilitating the buying and selling of used vehicles
The company's platform connects dealers and simplifies the auction process, enabling sellers to list their inventory while allowing buyers to access a wide selection of vehicles from various sellers. Acv Auctions utilizes advanced technology and data analytics to provide transparency, streamline transactions, and enhance the overall experience for both buyers and sellers in the automotive auction space.
Shares of online used car auction platform ACV Auctions (NASDAQACVA) fell 9.2% in the pre-market session after the company reported weak fourth-quarter results, and provided full-year revenue and EBITDA guidance below Wall Street's estimates. The outlook assumes a flat dealer wholesale market, which may limit upside potential in the near term. In addition, margins deteriorated and the company burned cash during the quarter.
On the other hand, ACVA blew past analysts' EBITDA expectations this quarter. It also expanded its number of units sold, leading to a revenue beat. Still, this was a softer quarter due to the outlook.
Online used car auction platform ACV Auctions (NASDAQACVA) beat Wall Street’s revenue expectations in Q4 CY2024, with sales up 34.8% year on year to $159.5 million. On the other hand, next quarter’s revenue guidance of $182.5 million was less impressive, coming in 2.9% below analysts’ estimates. Its GAAP loss of $0.16 per share was 11.1% below analysts’ consensus estimates.
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the online marketplace industry, including eHealth (NASDAQEHTH) and its peers.
Wrapping up Q3 earnings, we look at the numbers and key takeaways for the online marketplace stocks, including ACV Auctions (NASDAQACVA) and its peers.
ACV Auctions has had an impressive run over the past six months as its shares have beaten the S&P 500 by 9.6%. The stock now trades at $22, marking a 18.7% gain. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Looking back on online marketplace stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including The RealReal (NASDAQREAL) and its peers.
Online used car auction platform ACV Auctions (NASDAQACVA) announced better-than-expected revenue in Q3 CY2024, with sales up 44% year on year to $171.3 million. Revenue guidance for the full year exceeded analysts’ estimates, but next quarter’s guidance of $154 million was less impressive, coming in 0.9% below expectations. Its GAAP loss of $0.10 per share was also 12.8% above analysts’ consensus estimates.
