ACV Auctions (ACVA) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Market outlook and industry trends

• Wholesale market outlook revised to mid-single digit decline year-over-year, reflecting Q1 data and persistent retail softness.

• No expectation of further deterioration in retail or wholesale for the remainder of the year; status quo anticipated.

• Conversion rates typically peak in Q1 and decline through the year, considered normal seasonality.

• Geographical exposure, especially dominance in the Northeast, contributed to Q1 volume headwinds due to weather disruptions.

• Digital penetration in dealer-to-dealer transactions continues to rise, but physical auctions still dominate with 70% share.

Growth investments and operational updates

• Headcount investments in inspectors and territory managers expected to drive productivity gains in the back half of the year.

• Hiring and training efforts are on track, with regions of higher staffing already achieving strong EBITDA per unit.

• Proven correlation between territory staffing density and unit economics supports ongoing hiring strategy.

Product innovation and addressable market

• VIPER product targets the large service drive market, with over 250 million cars annually; early deployments show promise.

• Modeling suggests 3,000 franchise rooftops using VIPER could generate $450 million incremental revenue and $150 million EBITDA.

• Long-term, VIPER could unlock a billion-dollar-plus opportunity as adoption and transaction volumes grow.