Steven McDermott's questions to ACV Auctions Inc (ACVA) leadership • Q1 2025
Question
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.