Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s Chief Executive Officer is the chief operating decision maker (“CODM”) and is responsible for reviewing financial information presented on a segment basis for purposes of making operating decisions and assessing financial performance. The CEO reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating the Company’s financial performance. Accordingly, the Company has determined that it operates in a single reporting segment (the “ACV segment”).

The ACV segment provides a wholesale auction marketplace (the “Marketplace”) to facilitate business-to-business used vehicle sales between a selling dealership (“Seller”) and a buying dealership (“Buyer”). Customers using the Marketplace are licensed automotive dealerships or other commercial automotive enterprises. At the election of the customer purchasing a vehicle, the Company can arrange third-party transportation services for the delivery of the purchased vehicle through its wholly owned subsidiary, ACV Transportation LLC. The Company can also provide the customer financing for the purchased vehicle through its wholly owned subsidiary, ACV Capital LLC. ACV also provides data services that offer insights into the condition and value of used vehicles for transactions both on and off the Company's Marketplace. The ACV segment provides a wholesale auction marketplace to dealers and derives its revenues primarily from North America. The CODM assesses performance for the ACV segment and decides how to allocate resources based on net income (loss) that also is reported on the income statement as consolidated net income (loss).

The following is the information used by the CODM in assessing segment performance:

	Year ended December 31,
		2024		2023		2022
Revenue		$	637,156	$	481,234	$	421,529
Less:
Marketplace and service cost of revenue (excluding depreciation & amortization)		248,210		192,707		183,968
Customer assurance cost of revenue (excluding depreciation & amortization)		56,231		51,747		52,685
Marketplace operations		105,272		88,866		87,675
Technology and development		57,428		52,093		48,847
Sales and marketing		96,849		77,275		74,229
General and administrative		120,586		89,235		69,408
Depreciation and amortization		36,685		18,988		10,926
Total operating expenses		721,261		570,911		527,738
Loss from operations		(84,105)		(89,677)		(106,209)
Interest income		9,337		16,507		5,082
Interest expense		(4,244)		(1,565)		(979)
Provision for income taxes		688		526		87
Segment net income (loss)		$	(79,700)	$	(75,261)	$	(102,193)

For the years ended December 31, 2024, 2023 and 2022, revenue outside of the United States, based on the billing address of the customer, was not material. As of December 31, 2024 and 2023, long-lived assets located outside of the United States were not material.