ACV Auctions' first quarter results were met with a positive market reaction, reflecting robust year-on-year growth and improved profitability. Management pointed to three main drivers: strong execution in its dealer wholesale business, increased adoption of value-added services like ACV Transport and Capital, and steady expansion of its dealer partner network. CEO George Chamoun highlighted that the company's differentiated marketplace experience and continued market share gains, even in a soft February market, were core factors behind the quarter’s performance. Enhanced operational discipline also contributed to margin expansion, with the company noting progress in both cost management and scaling its product offerings.
Is now the time to buy ACVA? Find out in our full research report (it’s free).
ACV Auctions (ACVA) Q1 CY2025 Highlights:
- Revenue: $182.7 million vs analyst estimates of $182.3 million (25.4% year-on-year growth, in line)
- Adjusted EPS: $0.04 vs analyst estimates of $0.02 ($0.02 beat)
- Adjusted EBITDA: $13.91 million vs analyst estimates of $10.5 million (7.6% margin, 32.4% beat)
- The company reconfirmed its revenue guidance for the full year of $775 million at the midpoint
- EBITDA guidance for the full year is $70 million at the midpoint, in line with analyst expectations
- Operating Margin: -7.9%, up from -15.5% in the same quarter last year
- Marketplace Units: 208,025, up 33,394 year on year
- Market Capitalization: $2.75 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions ACV Auctions’s Q1 Earnings Call
-
Rajat Gupta (JP Morgan) asked about customer pushback on recent fee increases and the impact of tariffs on dealer sentiment. CEO George Chamoun replied there was minimal pushback, and the company’s value proposition remains strong despite broader industry uncertainty.
-
Bob Labick (CJS Securities) inquired about dealer inventory needs and the adoption of new tools like ClearCar, ACV MAX, and Project Viper. Chamoun noted growing dealer interest in AI solutions, early momentum with service drive sourcing, and high demand for the upcoming Project Viper product, which is in beta testing.
-
Naved Khan (B. Riley Securities) questioned ACV Capital’s risk management as attach rates increase and the potential for commercial fleet owners to delay vehicle turnover due to tariffs. CFO Bill Zerella highlighted improved risk controls and reduced bad debt, while Chamoun explained that commercial supply is still a small portion of ACV’s business.
-
Chris Pierce (Needham & Company) asked about shifting competitive dynamics and how ACV’s data capabilities compare to rivals. Chamoun stated that, while competition remains intense, ACV’s neutral partner approach and AI-powered pricing tools are resonating with dealer groups looking for more automation and actionable data.
-
Steven McDermott (Bank of America) focused on the sustainability of margin gains and unit pricing trends as the company laps tougher comparisons. Chamoun and Zerella emphasized that growth rates remain within expectations and that financial discipline has driven improved EBITDA and cash flow outcomes.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will monitor (1) the pace of adoption and monetization for new AI-powered marketplace features and data services, (2) progress on commercial remarketing center launches and related product integrations, and (3) evidence of sustained margin expansion despite flat industry volumes. The ability to scale Project Viper and other beta initiatives into commercial use will also be a key marker of execution.
ACV Auctions currently trades at $16.12, up from $15.66 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
