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Stephen McDermott

senior equity analyst at Bank of America Corp. /de/

County Galway, Ireland

Stephen McDermott is a senior equity analyst at Bank of America specializing in financial sector research, with a focus on major U.S. and European banking institutions. Throughout his career, he has developed a reputation for detailed coverage and investment calls on leading companies such as JPMorgan Chase, Bank of America, and Citigroup, with performance metrics reflecting above-average success rates according to industry tracking platforms. McDermott began his career in investment research over a decade ago, previously holding analyst roles at other prominent financial institutions before joining Bank of America in his current capacity. He holds FINRA registrations including Series 7 and Series 63 licenses and is recognized for his expertise in fundamental banking analysis and sector outlook.

Stephen McDermott's questions to ACV Auctions (ACVA) leadership

Question · Q1 2025

Steven McDermott of Bank of America inquired about the outlook for pricing given tougher year-over-year comparisons and asked for the reason behind the deceleration in unit growth despite commentary about strong demand.

Answer

CFO Bill Zerella explained that a buy fee increase in March will support ARPU going forward, though seasonal GMV trends are factored into guidance. CEO George Chamoun addressed unit growth by emphasizing the company's focus on disciplined, profitable growth rather than pursuing volume at any cost. He pointed to the strong revenue growth and significant adjusted EBITDA beat as proof of this successful strategy. Bill Zerella added that Q1 operating cash flow was equivalent to the total for all of the prior year.

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Question · Q3 2024

Stephen McDermott, on behalf of Curtis Nagle, asked about the growth mix between gaining new market share versus increasing wallet share with existing customers, and also questioned the company's long-term strategy regarding autonomous vehicles (AVs).

Answer

CEO George Chamoun explained that growth is driven by both, highlighting significant headroom to grow wallet share, particularly with national dealer groups. Regarding autonomous vehicles, he views them as another future category of used vehicles that will enter the wholesale remarketing cycle, similar to other fleet or commercial assets that ACV is already equipped to handle.

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