Online used car auction platform ACV Auctions (NASDAQ: ACVA) will be reporting earnings tomorrow afternoon. Here’s what to expect.
ACV Auctions beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $159.5 million, up 34.8% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and EBITDA guidance for next quarter missing analysts’ expectations significantly. It reported 183,497 units sold, up 27.4% year on year.
Is ACV Auctions a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ACV Auctions’s revenue to grow 25.1% year on year to $182.3 million, improving from the 21.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ACV Auctions has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.4% on average.
Looking at ACV Auctions’s peers in the online marketplace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 83%, beating analysts’ expectations by 5.2%, and Etsy reported flat revenue, topping estimates by 1.4%. Etsy traded down 8% following the results.
Read our full analysis of EverQuote’s results here and Etsy’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 17.5% on average over the last month. ACV Auctions is up 14.7% during the same time and is heading into earnings with an average analyst price target of $22.73 (compared to the current share price of $15.36).
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