ACV Auctions Inc. (NASDAQ:ACVA) Q2 2023 Earnings Call Transcript

Page 6 of 11

Ronald Josey: As true if I was live. So maybe, George, just a quick follow-up to that. I understood you don’t want to say too much about what might be coming but I thought I heard you say on the call that more dealers are using or utilizing ACV’s market data to set prices and improving the auction experience. So just can you tell us about what’s available in the here and now as we think about what might be coming down the pike. And as you — as we think about wallet share gain, which was a big part of the Analyst Day, and we just heard earlier on just how friction is being reduced. Talk to us about how all these different tools can just help the sales process and improve wallet shares overall and I have one quick follow-up.

George Chamoun: Okay. Great. So Ron, on your first question, the ACV pricing engine lives in several places. So MAX is just one of those places. So within the auction, it’s self-based auction, there’s a market report where while you’re bidding on a car, you can go really deep and look at that market ports, that’s free, that dealers being able to go in as a value-add to being an acv auctions customer helps that matching a little bit more — the way it was built, maybe a little bit more oriented to the buyer versus the seller because it gives all this transactional data and pricing data. A newer area that we just updated was taking the pricing engine to pay to get the to launch screen. The launch screen is on the seller side. So helping the seller decide what the price of that asset.

That was a recent thing our team has been iterating on. So we’ve inspected this vehicle for you. You thought it was a $25,000 car. Now that we’ve inspected it, it looks like it’s $23,000 car, you want to change your reserve price. That was for an example. Again, the same pricing engine went from being — helping buyers to now helping sellers a little bit more. That part is also free, not in a subscription level like MAX. Whereas if you go into MAX Digital, MAX Digital is broader, Think about this as a broader imagery management tool. where it’s not just helping you price, it’s going into a workflow, just going into whether you’re going to take in that car a trade and retail it or wholesale it. So it’s a broader use case than just what’s the wholesale value.

So it’s taking all those lessons learned and priding it into a broader platform. So that was your first question. Your second question was around — I’m sorry, repeat your second question.

Ronald Josey: Well, it was — I think you sort of answered was around wallet share gains. And I think the around wallet share gains all .

George Chamoun: All right. Perfect. You had another one. Go ahead. .

Ronald Josey: And that one was on clear call — just announcement out of the Analyst Day. We didn’t hear — we haven’t heard about it. So .

George Chamoun: Yes. So and to your point, that’s the part there where the pricing engine goes. So thank you for helping me finish my own sentence. So the same platform, right? This pricing engine, we’ve been building. It’s all leveraging AI and machine learning to help us price vehicles. We are really excited about where we’re at. We’ve quietly launched the Clear Car brand. If this was the restaurant analogy I’ve given to some of you is we’ve — you launched the restaurant, but we haven’t yet actually done our grand opening again, okay? So you’re sort of like getting it out to market. Our objective is still to do, okay, clear car is here, sort of press release and go to market. We do have several hundred dealers using clear car.

Page 6 of 11