ACV Auctions reported second-quarter revenue of $213.9 million, missing analyst estimates of $215.2 million and prompting a negative market reaction. Management attributed the shortfall to a contracting dealer wholesale market and compressed conversion rates, with CEO George Chamoun citing a price disconnect between sellers and buyers as a major headwind. Despite the miss, the company posted 10.4% year-on-year revenue growth, adjusted EPS of $0.06 versus estimates of $0.05, and adjusted EBITDA of $20.77 million, beating expectations. ACV reconfirmed full-year revenue guidance of $850 million at the midpoint and EBITDA guidance of $75 million at the midpoint. During the earnings call, analysts pressed management on hiring plans, with Chamoun saying sales and inspection roles will rise at least 15-20% by year-end, and on ViPR adoption, where early users report acquiring 20-50 more cars per month.
ACV Auctions Inc.Q2 revenue miss due to contracting dealer wholesale market and compressed conversion rates.
