ACV Auctions at JPMorgan Conference: Record Growth and Strategic Expansion

On Tuesday, 13 May 2025, ACV Auctions (NYSE:ACVA) presented at the 53rd Annual JPMorgan Global Technology, Media and Communications Conference, highlighting a robust Q3 performance. The company reported record revenues and significant market share gains, while also addressing industry challenges like tariffs and market fluctuations. CEO George Shamoon and CFO Bill Zarela emphasized strategic initiatives and future growth prospects.

Key Takeaways

• ACV Auctions reported a 25% year-over-year revenue growth and over 200% growth in adjusted EBITDA.
• The company maintained full-year guidance, anticipating a flat or slightly fluctuating wholesale market.
• Plans to open its first greenfield reconditioning facility by Q4 and a second location early next year.
• Emphasized data-driven products and a bundling strategy to enhance market position.
• Guaranteed offerings now account for nearly 10% of cars sold, boosting revenue and margins.

Financial Results

• Record quarterly revenues with a 25% increase year-over-year.
• Adjusted EBITDA surged by over 200% year-over-year, exceeding expectations.
• The average revenue per unit (ARPU) last quarter was approximately $840.
• Blended margins were reported at 55%.
• Maintained full-year guidance despite a potentially flat wholesale market.

Operational Updates

• Consistent market share gains attributed to a strong marketplace and value-added services.
• Guaranteed sales are significantly impacting financial outcomes with high sell-through rates.
• Conversion rates range from 55% to 65%, with potential improvements through no-reserve sales.
• Developing a bundling strategy to increase adoption of products and services.
• Plans to establish 40 reconditioning locations nationwide, targeting 80% population coverage.

Future Outlook

• Anticipates the wholesale market to remain flat or slightly fluctuate.
• Focus on building trust with dealers and commercial partners.
• Ability to accurately predict vehicle prices remains a key differentiator.
• Commercial business expected to reach a midterm target of 15%.
• Second reconditioning location planned for early next year to support growth.

Q&A Highlights

• No natural limit to the proportion of guaranteed pricing in total volume.
• Bundling strategy aims to enhance seller and buyer experience.
• Emphasis on leveraging data and machine learning investments for future growth.

Readers are encouraged to refer to the full transcript for a more detailed account of the conference call.

Full transcript - 53rd Annual JPMorgan Global Technology, Media and Communications Conference:

Rajat Gupta, Analyst, JPMorgan: Awesome. Great. Thanks everyone for joining. Very pleased to have with us here the team from ACV Auctions, George Shamoon, CEO and Bill Zarela, CFO.

My name is Rajat Gupta, member of the automotive equity research team at JPMorgan. So thanks George and Bill for being here.

George Shamoon, CEO, ACV Auctions: Thank you Rajat. Maybe

Rajat Gupta, Analyst, JPMorgan: George, if you want to just spend like a couple minutes to maybe just go over last week’s results, any quick update on the backdrop of the industry, maybe you can throw in latest thoughts on tariffs and recent developments would be helpful just to kick start and then we can go deeper.

George Shamoon, CEO, ACV Auctions: Yes. I’ll start, Bill. You could chime in a bit.

Rajat Gupta, Analyst, JPMorgan: Sorry, we can get closer to the Okay.

George Shamoon, CEO, ACV Auctions: So we a quarter was we really delivered strong results. Middle of our range for revenue exceeded EBITDA. I think we delivered that with lots of noise around the industry. I think at the end of the day, we’ve proven that regardless of the market conditions, we’ve been able to do a good job of guiding our investors and analysts on the right expectations. So I think we came into the expectations this year with really the right mindset as related to dealer wholesale.

And we regardless of what’s going on in the market, we continue to take share. We’re very we’ve been consistently taking share. So both, because our core marketplace, is strong, but also the additional value added services, which hopefully we’ll talk about today, are also growing in interest both on the supply and demand side. So, so far so good. You want to add in some more?

Bill Zarela, CFO, ACV Auctions: Yes. I mean we had record revenues for the quarter, which grew 25% year on year. Adjusted EBITDA actually grew over 200% year on year. So just a lot of leverage in the business model. And as George said, we ended up just a little bit over the midpoint of our revenue range, but exceeded our EBITDA ranges.

So it was a good quarter and we maintained guidance for the full year. I know a lot of investors were concerned about kind of our viewpoints, but frankly the assumptions that drove our initial 2025 guidance we think remain intact. So we’re pretty happy with the results and again kind of steady as it goes.

Rajat Gupta, Analyst, JPMorgan: Awesome. Thanks for that color. You just mentioned share gains stayed consistent there. Could we double click on that a little bit? Last year third quarter surprised everyone.

You had a massive share gain quarter. Fourth quarter and first quarter have been a little slower than that. But on a twelve month average, it’s been consistent with your long term guidance. Talk to us about some of the volatility in the share gains, like what causes that? Does different market backdrops mean different level of share gains for you?

How should investors think about the consistency of the share gains or we should not just think about quarter to quarter and just take it on a twelve month basis? Is this the best approach?

George Shamoon, CEO, ACV Auctions: Yeah. We’ve been trying to consistently say looking at it over an annual basis makes more sense. If you noticed in Q3 of last year, we took a credit for doing well, but we tried to we kept it in a humble way saying there will be quarters where we’re over the mid teens. There will be quarters that will be a little under the mid teens. And I think, you know, what we’ve noticed is that when you just look at the overall data in the marketplace, new, used, trade in, what’s truly dealer wholesale, you try to get to a certain percentage, whether that percentage is 15%, thirteen %, eighteen %, it’s not perfect.

I don’t think on the quarters where we had 20% market share gains or 13% that we or our competitors did anything differently. I think these quarterly three you know, this is just trying to figure this out in three months periods. We had two quarters last year where we were under 15%, and we had two quarters last year we were over 15%. Does that mean we really did anything different or our competitors really did anything different in those two quarters? I don’t think so.

I think what’s happening is we’re growing pretty consistently, and I think until we would broadcast if we’re growing faster or slower. And at this point, I think just sort of steady as can be is sort of my message.

Rajat Gupta, Analyst, JPMorgan: Understood. And just one last one on, you know, just on more near term stuff. You know, on the guidance, you maintained it. Obviously, there’s a lot of noise around tariffs. Do you feel very comfortable with that range and enough flexibility in your model, either on the growth levers with some of the products that you have or on the cost side that are irrespective of what happens to the backdrop, unless like it’s a draconian like recession or something that you feel comfortable maintaining that range?

Bill Zarela, CFO, ACV Auctions: Yeah. So the basis for our guidance and the reason why we maintained it was that we expected the wholesale market to be flat or flattish this year, which means it could be marginally up, it could be marginally down. And our guidance reflects that. If the market is marginally down, unless we can offset with more share gains, we would end up at the lower end of guidance and conversely at the higher end of guidance if the market does a little better. So there are levers that we can pull and we’ve done that in the past.

We’ve been very disciplined in terms of managing our cost structure. And if things are looking like they might be a little more towards the downside, we can try to defer some expenses and try to do our best to maintain our EBITDA guidance within our ranges. So far we’ve been pretty successful in executing the business from an operational standpoint every quarter since we’ve gone public. So absent some major macro disruption, our view at this point anyway is that we can still stay within our guidance ranges, which is why we’ve maintained.

Rajat Gupta, Analyst, JPMorgan: Understood. That’s clear. Looking long term, maybe an easy question here. Just on network effects, your business model seems like a clear candidate to benefit from network effects. What do you view as the key positive feedback loops that help your business?

Where are we in terms of harnessing the power of these loops? And how do you see the company leveraging that over the next few years?

George Shamoon, CEO, ACV Auctions: Yeah. If you look at how we have communicated our network effects from really our our IPO to now, we’ve been articulating both the benefits of having more supply, more demand, but also more data, and why having additional data then helps us build new products. You’ve seen our reinforcing firewalls a few times over the years that we’ve discussed. And Rajat, I think what we’re finally seeing this year is the benefits of those reinforcing data and products are starting to come true. We were evangelizing that they would become true someday.

We would have products to help us predict the value of a consumer car. We would have products to help us predict the value for a dealer’s wholesale. We we have we’ve now gotten to the point that not only do we have SaaS products that allow a dealer to buy more cars from consumers, allow us to give a guarantee for a vehicle that’s going be transacted in our marketplace. These are the benefits of the million plus inspections we’re doing a year. The 1,000 plus rooftops that we have all their data, their retail data, their wholesale data, their recon data, the ability for us to build large language models that really could take all this data and make predictions.

I mean, to the fact we’re we’re now we’re now predicting the retail price of a car in the next thirty days, which is just incredible. So when you think about the typical marketplace, more supply, more demand, we have those benefits. And you’re probably starting to see that in our data where once we get to 300 plus units in one territory, we start to grow a little bit faster. So you kind of got your typical marketplace dynamics, but then with us, you also have this element of data and additional products and value add that are also making us stronger. So I think what we’ve been communicating for several years now, you were starting to see the fruits of that labor.

Rajat Gupta, Analyst, JPMorgan: I want to double click on some of those things. I do want to get into the products in a little more detail. Sure. But as you are on this growth trajectory that you have, what’s the potential gating factor for growth from a company specific lens? Is it more balancing supply demand sides of the marketplace that you mentioned?

Is it just training, scaling, and spectrum network? What’s the limiting factor to growth for the company x macro?

George Shamoon, CEO, ACV Auctions: At the end of the day, it’s getting the trust from dealers and soon commercial companies that they can trust the supply that they’re giving to us. That at the end of the day, we’re gonna get the yield. We’re gonna get the, we’re gonna get the demand for the, for their wholesale. So there’s just continually bringing the right product mix and value add and getting additional case studies. You’re seeing every week, every month, we’re constantly out there going, you know, here’s the next dealer who’s now shown they’re doing better with ACV than they did one of the other legacy auctions.

So first is trust, Right? The more you can get the supply side to trust us while you continue to build the demand side, because you just got to keep working both sides at the same time. And I would say what’s changed is initially the only way we won supply was just getting a trial on wholesale. And this over time winning more wallet share, sort of one card at a time. Now you’re seeing us go after bigger deals, go after larger groups.

So, I think we’ve reached a new, paradigm for the business. Hopefully, we’ll see those results over the next few years. It just won’t be in one month or one quarter. But where we can now give a broader value added service play, like we can price all your wholesale, we can help you price all your retail cars, but we really need x percent of your wholesale volume to deliver these products. So that type of bundling is this next phase of our business.

Rajat Gupta, Analyst, JPMorgan: Right.

George Shamoon, CEO, ACV Auctions: So, so far so good. And, but to your point, we still need to convince a dealer or a commercial partner that they can trust our marketplace.

Rajat Gupta, Analyst, JPMorgan: Right. Makes sense. Now on the products, you’ve had a wide range of products launched last year, set to roll out over the next six to twelve months, ClearCar, guaranteed offers, Project Viper, Virtual Lift two point zero. Max obviously has undergone some change. Can you talk to us about one or two offerings amongst these that excite you the most and likely to have the most direct benefit to the P and L in the near term directly or indirectly?

And just level set for us the addressable opportunity, growth expectations, competitive landscape for these products. Or maybe the one or two that you want to point to.

George Shamoon, CEO, ACV Auctions: So I’ll pick one. If we have time, we’ll go to a two.

Rajat Gupta, Analyst, JPMorgan: Yeah, sure.

George Shamoon, CEO, ACV Auctions: Okay. If I had to pick one, it would be our ability to predict the price of a vehicle. The wholesale price, the retail price. Because it’s our ability to predict this team. We we have a great leader who has an incredible team, you know, dozens of data scientists on this team.

That team is the nucleus. That’s the data that’s feeding ClearCar. It’s the data that’s feeding ACV Max. It’s the data that’s feeding Project Viper. It’s the data that is powering our guaranteed offering, is now nearly 10% of our cars sold in ACV.

We charge additional fee. So if I had to pick one, which is always tough to pick one, but if you pick one, I would say our ability to predict based on the condition of that asset. So it’s not just mileage, it’s not just year make and model. We could have two Ford one fifty’s, one with lower mileage, one with higher mileage, and we would predict the one with the better condition with higher mileage at a higher value. That wasn’t really easy.

The industry wasn’t able to do this before. So look at, you know, ClearCar is a way to do this on a website. ACV Max is a way to do this in an inventory management tool. Project Viper is going be this drive through station. But really, at the end of the day, they’re all the same thing.

They’re all to oversimplify it, it’s a little more complicated than that, but to oversimplify it, we’ve got this incredibly rich data that allows us to predict wholesale, retail, hopefully soon reconditioning, and other capabilities that we think is very unique. Cause there could be another product we develop. There could be products other companies want to develop around our dataset. We have dealer groups who want to launch pure play new offerings to buy cars from consumers. We have third party marketplaces who want to go buy cars from consumers.

We’re really starting to get we have many companies coming to us. And it’s not just because we’ve built hardware and software, it’s because at the end of the day, this data structure and this the fact that we invested in machine learning and large language models way before anybody was talking about this, it should pay off very significantly to us.

Rajat Gupta, Analyst, JPMorgan: Got it. That’s helpful. And in terms of, so so it’s more indirect benefit that you’re gonna be gonna start to see on the P and L.

George Shamoon, CEO, ACV Auctions: Well, the direct benefits, again, I’m figuring out which I, like one example, and Bill will also chime in. If you just pick the guaranteed sale, we give a guarantee to a dealer, we charge an extra little small fee for it. Those cars have a % sell through in our platform. So the benefit is for those specific vehicles, we’re getting a little bit higher of a fee. We have a % sell through.

That means we don’t have to put in additional time, energy, we didn’t waste the time of our inspectors, And buyers show up on a Tuesday, Thursday, Saturday, sale when these cars are launched, and we average 10 bidders a car. So the direct benefit is more demand. The best the direct benefit is higher revenue and higher margin per car. So that’s just kind of going deep on one specific area. But you’re seeing that come out as we improve our margin.

Anymore you want to share about that?

Bill Zarela, CFO, ACV Auctions: Yeah, actually guarantee sales are potentially significant in terms of the impact on the financials. So the way to think about this is our conversion rates which are very similar to the industry would average say 55% to 60% maybe even 65% depending upon seasonality since it changes over time, which means you’ve got 40% to 45% call it of cars that don’t transact, right? We incur inspection costs to inspect those cars in order to get them posted on our marketplace and we don’t earn any revenue. So in a no reserve sale, as George said, 100% of those cars transact, which means you’re generating that incremental volume and the ARPU associated with every unit last quarter was about $840 at 55% call it roughly blended margins last quarter. So that’s an increment to our P and L revenue and margins.

And in addition, we’re basically leveraging fully those inspection costs. So no incremental inspection costs, we’ve already inspected the car. So the last point is that, and again, we’re no different than any other auction in this regard. So there’ll be times when you’ll have transactions where there’s a difference between the bid and the ask, but it’s close enough for our team to work with the buyers and the sellers to bring them both together. And we’ll typically throw a few bucks in the pot in terms of our fees and a no reserve type sale, every car sells, we get full fees.

There’s no negotiation because every car sells, right? The highest bidder wins. So it actually ripples through our financials in a very positive fashion and to the extent that becomes a bigger portion of our revenue streams that could be material more material over time.

Rajat Gupta, Analyst, JPMorgan: Yeah. The incremental EBITDA per unit seems pretty attractive. Yes. Maybe just last point on guaranteed offers. Yeah, it kind of like flew under the radar over the last couple of years, it seems like.

Yeah, obviously. Yeah, on purpose, I guess.

Unidentified speaker: Can

Rajat Gupta, Analyst, JPMorgan: you reassure investors that, you know, obviously we’ve had car offer that went through some challenges with somewhat of a similar approach. If you can reassure investors that we might not get caught off guard again with that, what’s different in your approach? Obviously, you have the inspection, but just anything else that you want to add?

George Shamoon, CEO, ACV Auctions: Yeah, certainly. So we’ve been doing this. We kicked it off about four years ago. And then we’ve been growing it incrementally a little bit. So it’s actually been within our numbers.

It was a small percentage of our base. We we didn’t plan on broadcasting it until it got to close to 10% of our volume. We didn’t think we thought it was just noise up until this point. But there were there were periods of time in the last four years where, you know, it maybe was a little worse or a little better, but we’ve been able to predict these wholesale values generally within $100 There are quarters we were predicting it within five dollars There’s quarters where we’re predicting it within $40 I say $100 to give myself enough room, because there were a couple quarters that we were as high as $100 But we’ve gotten really good at this. And if you look at the ACV culture, we don’t typically broadcast things until we’re really good, or we call it or we say we’re in beta, one of the two.

This is an area where we now have very little risk because of several reasons. We have our data profile. The dealer has to give us multiple cars. We take the gains and the losses plus our fees. So when you hear us say the dealer on average is getting $800 more per car over the guarantee, that meant, let’s say they gave you five cars, that a few make more than 800, and a few maybe made less, but they netted out 800 more.

Another thing to keep in mind is we’re not actually giving the wholesale value. It’s a number lower than the wholesale value. It’s really the ability for that seller to go into this no reserve auction lane to get 10 bidders per car. Look at it as almost like the golden ticket. Okay?

Do you want access to 10 bidders per car? No one else in the world has 10 bidders except our Tuesday, Thursday, and Saturday sale. So it sounds a little riskier to investors than probably what it is, but when you when you started something four years ago, and you build a bunch of data science and other people around it, and you do it slowly, and you know what you’re doing, and you have bundling as part of the model, as well as this little hedge because the value we give is lower than the wholesale number. It’s a really good model for us and our dealer partner.

Bill Zarela, CFO, ACV Auctions: Yeah, I would just add two other points. So these algorithms are adjusted daily, right? And actually can be modulated even hourly if we wanted to, right, depending upon the volatility that’s happening in the marketplace. And second, these guarantees are for a very short period of time to typically no more than forty eight hours. So we’re really kind of bracketing the risk and it’s something obviously we’ve paid a lot of attention to internally for the very reason why you asked this question, which is to ensure that we don’t get to a place where we’re losing money.

And actually the performance has far exceeded our internal expectations in terms of the accuracy.

Rajat Gupta, Analyst, JPMorgan: Understood. That’s very clear. Thanks for all that color. One more question. On the last earnings call, you talked about working with OEMs and the trade in platforms.

I’m wondering if this could potentially transform into a partnership for off lease vehicles as well. I do want to go on commercial a little more deeper, but just curious why that market has been historically a little tougher to crack despite off lease volumes transacting in a digital format well before the pandemic as well?

George Shamoon, CEO, ACV Auctions: The way the off lease initiatives work is there’s a private marketplace where cars are typically sold at one of the two primary competitors we have in that area. So either the consumer keeps it, the dealer keeps it, it gets sold in this private marketplace, or it goes to an open auction. What we are talking to a few companies about, we’ll see if we get a trial or not this year, we might, we might get a couple trials, is they put us between the private sale and the open sale, like before it gets sent to a physical auction. So it’s not that we’re not talking to a couple of the captives. We we might get one or two trials.

But when when you hear us say it’s the fourth leg of our commercial strategy, it’s because the other three legs were just getting more traction faster. It’s not that there’s zero traction, it’s that rental car companies were were moving faster, fleet companies were moving faster, repos were moving fast ish, if that’s the right way to say it. So those three categories. Then you mentioned OEMs, which are different than the captives. OEMs would be brand new to us.

We are working right now in a very, very small sample with OEMs, ironically, Europe, okay, where they’re using our AI in in technology to price cars via trade in. And then we’re starting to talk to some of those OEMs also launching us in The US and other places as at least, let’s call it, early stages. Nothing I can announce yet. But where that fits in the ecosystem is the OEM wants to either put a trade or it could be company cars, which technically kind of is like that off lease type category and there’s a few other categories. So I think the good news is we’re not at zero.

We’re we’re starting. We probably have, I don’t know, a few hundred cars a month going through our platform in this sort of OEM captive category. We’re learning. We’re growing great relationships. Maybe it’s a few thousands, but it’s not a big number.

And our technology is growing in its capability. So the heart of your the heart of your answer to this, if they if if one of these companies want a way to take photos of a car, have the consumer go around and describe the vehicle, or have the dealer do a self inspection, come up with the recon estimates, come up with what to do with the vehicle, I think over the next year to three years, we’re going show we have the best product in the world. But we’re, you know, again, are the newest areas of our business, so it’ll take time for us to make some of that volume material. It’s a little bit easier to get repos, rental car companies, just to give us some cars. You know, there’s less for us to build out in that category to make a difference and start getting some volume.

Rajat Gupta, Analyst, JPMorgan: Understood. Do you want to move into commercial? Another business, just like guaranteed offers went from under the radar to 10% of volumes, looks like the commercial business is probably at the cusp of inflection at some point. Talk to us how the Launchpad has been progressing. When can we start to see things inflect here to get to your midterm 15% target?

Any key learnings, challenges since you started building this with auto IMS, the land that you have? Any update there would be helpful.

George Shamoon, CEO, ACV Auctions: Yes, certainly. So the key thing that you’ve seen us talk about is this ability to do a reconditioning estimate that, so Auto IMS says here we’re giving you these 20 cars. Mean, I’m sorry, not Auto IMS, the actual commercial consignors going through Auto IMS and saying, here’s 20 cars. Well, we have to go back and say, what’s the condition, and then what’s the reconditioning cost for those 20 cars? And then they either approve or disapprove those recon costs.

And then if they approve it, then you go ahead and you provide that recon. If they don’t, they don’t. Right? That back and forth was what we didn’t have, which you’ve heard us talk about. So getting access to auto IMS was step one, and now having this ability to recondition the vehicle.

We will have a first version of that live by by July. And deployable, we’re saying, by q four. So software will be done in July, and we’ll actually go and this is kind of quick, but we’re going to turn around and open up our first greenfield. We’re saying by by q four. What does that mean?

We have a top 25 market where we’ve rented land. We didn’t have to go buy a company. We have a small reconditioning facility. We’re paying rent. We have a limited amount of teammates there, so think not a huge, huge team who are going to inspect vehicles and a few other roles.

And whether it’s a bank, a fleet company, rental car company, we have cars assigned to this location. And that’s gonna be a really big day for ACV because now we can not we don’t have to buy a company to go into this commercial category. As we’ve told you all, we’d like to have, you know, 40 locations across the country to get to 80% of the population. We could go do that organically, which is really a big deal. And so we’re we’ll have one open by the end of this year.

Our goal is to open up a second location by early next year. That’s all part of our mindset. And if we can get these things to break even between within twelve months, we’ll go at a certain velocity. If we can get it to break even within nine months, we’ll go even faster. If we get them to break even within six months, we’ll go even faster.

So based on whether or not it takes us six, nine, twelve months to get to break even, that’ll sometime by early to mid next year, you’ll all be asking, okay, how fast are you gonna go? We’re gonna see how fast it takes us to get to break even. And that will help us to decide if we’re doing a couple of these year or we’re doing more. And but we’re not going to do anything crazy until we have that proof.

Rajat Gupta, Analyst, JPMorgan: But

George Shamoon, CEO, ACV Auctions: if I if you ask me a guess, I think that range I’m giving you is I think we’ll get these things to break even between six and twelve months. And that will, you know, inform the model, and we’ll we’ll we’ll move accordingly.

Rajat Gupta, Analyst, JPMorgan: Understood. That’s that’s very clear. I since you have like three, four minutes left, just wanted to open it up to the audience. Anyone there? Go back.

George Shamoon, CEO, ACV Auctions: Just on the guaranteed pricing, what’s is there a natural limit to the percent of your total volume that you think would that would be applicable for? It would be it’s typically gonna be cars that it’s a great question. I don’t know. I mean, at the end of the day, really, would be is a dealer being comfortable running a car on our no reserve Tuesday, Thursday, and Saturday being guaranteed a percentage lower than the wholesale value, but a good amount, and just letting it go. And when you you know, one of the questions earlier is anyone else in the world doing this.

An example would be like Barrett Jackson when we’re watching TV. Like, for million dollar cars, they’re running on no reserve. Right? And so but for our industry, this whole car auction, it is kind of newer. It it it lives We think it’s the best way to sell a car, like hands down.

Our data shows it. We’re willing to guarantee it. But there will there’s an adoption to this. We do gotta get dealers to adopt it and realize you don’t have to have somebody sitting there going, Did I get 98% of wholesale value or 101% of wholesale value and 103% on this car and rerun it? Mean, some these dealers move cars to three different auctions in two weeks, they don’t get the price, and they move it again.

Some of these behaviors are old. And you’re basically trying to get folks to know, Let these things go and buyers will show up. So I don’t know yet what the upper limits are, but it’s just change management and changing perception of the old ways versus new ways. But our data is showing we’re getting over wholesale average for these cars. So we’re getting more than market on average because buyers love to show up.

So I don’t know how to answer your question yet, but I’ll think about it.

Rajat Gupta, Analyst, JPMorgan: Any other? Chris?

Chris, Unidentified: Yeah, I’m just curious whether you think the bundling strategy of getting these new products to get adoption in exchange for kind of guaranteed or pseudo guaranteed volume into your wholesale auction is the right end game structure if you really achieve kind of amazing product market fit or in kind of intermediary step to drive adoption and get the products out there?

George Shamoon, CEO, ACV Auctions: I’ve been trying to think of good examples of sort of parlays of other companies. And so the one I’ve been using today is not a great example, but I can’t think of a better one. I’m sorry. But if you think about Amazon Prime, right, we paid a small fee to get a pretty valuable service. That unlocked an incredible experience.

It’s an experience that many of us, when we’re shopping anywhere else, we compare every other e commerce site, everything else we do, to the Amazon experience. Our SaaS and data services, you know, whether we’re getting $500 a month or $1,000 a month, I mean, the revenue is important. But also keep in mind, we’re getting all their data. We’re getting their sold transactions. We’re getting their recon data.

And then we’re helping them buy more cars. We have some dealerships buying three cars a day off the curb. That’s three more cars. That’s 25 to 30 more cars a month, at least. In some cases, know, 40 more cars a month more than they were buying.

That means they’re going to retail 15 to 20 more cars a month. That means they’re going wholesale 15 to 20 more cars. So when you think about the role of that software and that data, it’s really important to that dealer. It’s making that dealer operate better. It’s giving us more data so I can help them more.

And, yeah, there’s also the SaaS revenue stream. So I don’t really know how else to, you know, I either one of these days think of, maybe Rajat will help us think of another company that has had a similar analogy of where, yeah, the feed, whatever Amazon was charging for Amazon Prime was relevant then and is still relevant today. But the end experience was the key differentiator. And at the end of the day, that’s really what we’re doing. I think we’re going to deliver the best experience for sellers, the best experience for buyers that’s broader than what any local auction company can do.

I think that’s really important.

Rajat Gupta, Analyst, JPMorgan: Awesome. I think it’s a great way to end. Thanks,

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