Jeff Lack

Jeff Lack asked about the early returns of using VIPER to boost service attachment and upsale in the service lane, the ownership of data generated from ACV scans (dealer vs. ACV), and the potential for ACV to generate non-volume contingent recurring revenue from helping dealers run their businesses better.

Answer

George Chamoun (CEO, ACV Auctions) reported strong early returns for service drive acquisition, with some rooftops buying 4-10% of all repair orders (40-100+ cars/month), and mentioned pilots where ACV guarantees cars to encourage broader buying, with a goal to scale this. On data, he clarified it's the dealer's data, with ACV having rights to use it in an aggregated methodology for pricing and predictions. He outlined a future VIPER business model combining a monthly subscription fee with a rebate if wholesale volume targets are met, allowing for significant subscription revenue even if wholesale targets aren't met.

Jeff Lack asked about the competitive and strategic dynamics of owning Mattress Firm for nearly a year, particularly concerning marketing support from partners and how these dynamics align with original acquisition expectations.

Answer

Chairman, President, and CEO Scott Thompson discussed the effectiveness of the new Mattress Firm advertising campaign, which has attracted incremental support from third-party manufacturers due to its ability to drive traffic and brand awareness across the industry. He noted that sales of Tempur Sealy products at non-Mattress Firm retailers are outperforming the general market, indicating no significant channel conflict and a better-than-expected outcome from the acquisition.