ACV Auctions (ACVA) Goldman Sachs Technology Communacopia and Technology Conference summary

Market overview and macro trends

• Dealer wholesale market is rebounding, with new car sales and incentives increasing wholesale activity.

• Used car inventories are rising but remain below 2019 levels, supporting more wholesaling.

• Trade-to-wholesale mix is normalizing, expected to drive market recovery over the next several years.

• Franchise dealers supply 75% of inventory, independents 25%; market share is regionally variable.

• Commercial wholesale is an early-stage opportunity, currently less than 1% share.

Growth strategy and addressable market

• National dealer wholesale market is 8–10 million units, with current share at 9%.

• Commercial segment requires investment in land and reconditioning capabilities to scale.

• Expansion plans include growing to 40 locations to reach 80% of the population.

• Software innovation and M&A are key to serving commercial consignors and expanding market share.

• Data and inspection capabilities are leveraged to provide value-added services.

Financial targets and margin drivers

• Medium-term targets: $1.3B revenue, $325M adjusted EBITDA (25% margin), 1.5M units.

• Revenue margin expected to rise from 53% to 60% through product mix and operational efficiency.

• Fixed cost leverage is significant; most OpEx is fixed except for inspectors.

• Incremental EBITDA margins of 40% are targeted organically.

• Adjusted EBITDA is a strong proxy for free cash flow due to marketplace float offsetting CapEx.