ACV Auctions Inc (ACVA) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the ACVA Second Quarter 2023 Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Tim Fox, Vice President of Investor Relations. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 ACVA 2023 年第二季度收益電話會議。 （操作員指示）請注意，今天的會議正在錄製中。現在，我想將會議交給今天的發言者、投資者關係副總裁蒂姆·福克斯 (Tim Fox)。請繼續。

Thank you, operator. Good afternoon, and thank you for joining ACV's conference call to discuss our second quarter 2023 financial results. With me on the call today are George Chamoun, Chief Executive Officer; and Bill Zerella, Chief Financial Officer.

謝謝你，接線員。下午好，感謝您參加 ACV 的電話會議，討論我們 2023 年第二季度的財務業績。今天與我一起參加電話會議的是首席執行官喬治·夏蒙 (George Chamoun)；和首席財務官 Bill Zerella。

Before we get started, please note that today's comments include forward-looking statements, including statements regarding future financial guidance. These forward-looking statements are subject to risks and uncertainties and involve factors that could cause actual results to differ materially from those expressed or implied by such statements.

在我們開始之前，請注意，今天的評論包含前瞻性陳述，包括有關未來財務指導的陳述。這些前瞻性陳述存在風險和不確定性，並涉及可能導致實際結果與此類陳述明示或暗示的結果存在重大差異的因素。

A discussion of the risks and uncertainties related to our business can be found in our SEC filings and in today's press release, both of which can be found on our Investor Relations website. During this call, we will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in today's earnings materials which can also be found on our Investor Relations website. And with that, let me turn the call over to George.

關於與我們業務相關的風險和不確定性的討論可以在我們向 SEC 提交的文件和今天的新聞稿中找到，這兩個文件都可以在我們的投資者關係網站上找到。在本次電話會議中，我們將討論公認會計原則和非公認會計原則財務指標。今天的收益材料中提供了 GAAP 與非 GAAP 財務指標的調節表，這些材料也可以在我們的投資者關係網站上找到。接下來，讓我把電話轉給喬治。

Thanks, Tim. Good afternoon, everyone, and thank you for joining us. We are very pleased with ACV's continued momentum in the second quarter, another record-breaking quarter in revenue that once again exceeded the high end of guidance reflecting strong execution by the ACV team as we continued to gain market share.

謝謝，蒂姆。大家下午好，感謝您加入我們。我們對 ACV 第二季度的持續增長勢頭感到非常滿意，這是收入又一個破紀錄的季度，再次超過了指導的上限，反映出 ACV 團隊在我們繼續獲得市場份額的過程中的強大執行力。

Demand for ACV Transport and ACV Capital was very strong. which contributed to both revenue growth and revenue margin expansion versus Q2 2022. And our continued focus on driving profitable growth resulted in adjusted EBITDA, also exceeding guidance. highlighting the leverage in our model. With that, let's turn to a brief recap of the quarter on Slide 4.

對 ACV Transport 和 ACV Capital 的需求非常強勁。與 2022 年第二季度相比，這對收入增長和收入利潤率擴張做出了貢獻。我們繼續專注於推動利潤增長，導致調整後的 EBITDA 也超過了指導。強調我們模型中的槓桿作用。接下來，讓我們轉向幻燈片 4 上對本季度的簡要回顧。

Second quarter revenue of $124 million was $4 million above the high end of guidance, resulting in 8% growth year-over-year. GMV of $2.5 billion declined 10% year-over-year, reflecting continued moderation of wholesale market prices. Despite this price moderation, ARPU increased year-over-year, reflecting our price increase from last fall.

第二季度收入為 1.24 億美元，比指導上限高出 400 萬美元，同比增長 8%。 GMV 為 25 億美元，同比下降 10%，反映出批發市場價格持續放緩。儘管價格有所放緩，但 ARPU 同比增長，反映出我們的價格較去年秋季有所上漲。

We sold 153,000 vehicles in our marketplace, a sequential increase from strong results in Q1 and growth of 3% year-over-year. Year-over-year unit growth benefited from an increase in conversion rate which benefited from a range of data-enabled marketplace innovation focused on enhancing dealer engagement.

我們在市場上售出了 153,000 輛汽車，比第一季度的強勁業績環比增長，同比增長 3%。銷量的同比增長得益於轉化率的提高，而轉化率的提高則得益於一系列專注於提高經銷商參與度的數據驅動的市場創新。

On Slide 5, I will again frame the rest of today's discussion around the 3 pillars of our strategy to maximize long-term shareholder value: growth, innovation and scale. I'll begin with growth. On Slide 7, I'll begin by sharing observations about the broader automotive market as context for the trends we are seeing in the dealer wholesale market.

在幻燈片 5 上，我將再次圍繞我們實現長期股東價值最大化的戰略的三大支柱：增長、創新和規模，構建今天剩餘的討論。我將從成長開始。在幻燈片 7 中，我將首先分享對更廣泛的汽車市場的觀察，作為我們在經銷商批發市場看到的趨勢的背景。

In Q2, light vehicle retail volumes increased 2% quarter-over-quarter and increased 17% year-over-year from depressed levels. SAAR is still running about 10% below prepandemic levels, but inventories are slowly building, which is key to supporting the recovery in retail sales. Used vehicle retail sales were flat quarter-over-quarter and year-over-year as affordability issues continue to impact consumer demand. In fact, used retail volumes were about 15% below 2019 in the first half of this year.

第二季度，輕型汽車零售量環比增長 2%，較去年同期增長 17%。 SAAR 仍比大流行前水平低約 10%，但庫存正在緩慢增加，這是支持零售銷售復甦的關鍵。由於負擔能力問題繼續影響消費者需求，二手車零售額環比和同比持平。事實上，今年上半年二手零售量比 2019 年下降了約 15%。

Combined, new and used retail units increased about 6% year-over-year. which is a positive sign for supply into the wholesale market. As we expected, wholesale prices and conversion rates declined quarter-over-quarter from seasonally high levels in Q1. However, we believe prices will follow a more normalized depreciation curve this year and conversion rates will also follow normal seasonal patterns.

新零售和二手零售單位合計同比增長約 6%。這是批發市場供應的積極跡象。正如我們預期的那樣，批發價格和轉化率較第一季度的季節性高位環比下降。然而，我們認為今年價格將遵循更加正常化的折舊曲線，兌換率也將遵循正常的季節性模式。

On balance, we continue to believe that end market conditions continue to show early signs of improvement, giving us confidence to again raise guidance for the year, which Bill will take you through later. Turning now to Slide 8. We estimate that the U.S. dealer wholesale market remained well below normalized volumes in Q2, but were in line with the seasonally strong first quarter.

總的來說，我們仍然認為終端市場狀況繼續顯示出改善的早期跡象，這使我們有信心再次提高今年的指導，比爾稍後將向您介紹這一點。現在轉向幻燈片 8。我們估計第二季度美國經銷商批發市場的交易量仍遠低於正常水平，但與第一季度季節性強勁的情況相符。

We remain confident that as the market continues to recover, our growth will benefit from both market expansion and market share gains. In Q2, given our 3% year-over-year unit growth and an estimated market contraction of 14%, this implies that ACV grew market share by approximately 17%.

我們仍然相信，隨著市場的持續復甦，我們的增長將受益於市場擴張和市場份額的增長。在第二季度，鑑於我們的銷量同比增長 3%，並且預計市場收縮 14%，這意味著 ACV 的市場份額增長了約 17%。

Next, I would like to wrap up the growth section with highlights on our value-added services. First, on Slide 9. The ACV Transportation team delivered another strong quarter and is scaling ahead of schedule. Our strong carrier network in record cycle-time resulted in attach rates reaching the mid-50% range. Our technology investments in dispatching and pricing optimized by AI are driving both growth and operating efficiencies.

接下來，我想以我們的增值服務為重點來結束增長部分。首先，在幻燈片 9 上。ACV 運輸團隊再次實現了強勁的季度業績，並且正在提前擴大規模。我們強大的承運人網絡以創紀錄的周期時間實現了附加率達到 50% 左右的範圍。我們在通過人工智能優化的調度和定價方面的技術投資正在推動增長和運營效率。

These efficiencies resulted in revenue margins in the mid-teens, an increase of over 900 basis points year-over-year. As we discussed at our recent Analyst Day, our 2026 financial targets assume transport revenue margin in the high teens. So we are squarely on track to achieve that objective.

這些效率的提高使收入利潤率達到了十幾歲，同比增長超過 900 個基點。正如我們在最近的分析師日討論的那樣，我們的 2026 年財務目標假設運輸收入利潤率將達到兩位數。因此，我們完全有能力實現這一目標。

Turning to Slide 10. Our ACV Capital team also delivered strong results in Q2. After achieving 10% attach rates for the first time in Q1, ACV Capital maintained this level in Q2 resulting in 50% loan volume growth year-over-year. And combined with a very strong ARPU expansion, delivered over 110% revenue growth. Along with our core floor plan offerings, we are investing in new ACV Capital products for our sellers, enabling the emerging consumer to dealer market. We remain confident that ACV Capital will be an important long-term growth and profit driver.

轉向幻燈片 10。我們的 ACV Capital 團隊在第二季度也取得了強勁的業績。在第一季度首次實現 10% 的附加利率後，ACV Capital 在第二季度保持了這一水平，導致貸款量同比增長 50%。結合非常強勁的 ARPU 擴張，實現了超過 110% 的收入增長。除了我們的核心平面圖產品外，我們還為我們的賣家投資新的 ACV Capital 產品，為新興的消費者和經銷商市場提供支持。我們仍然相信 ACV Capital 將成為重要的長期增長和利潤驅動力。

Turning to the second element of our strategy, innovation. On Slide 12, I'd like to highlight how we're leveraging innovation to drive growth. And in this case, our improving conversion rates. We have further expanded the rollout of our 2-hour auction, complementing our traditional 20-minute live auction format. In just a few short quarters, we are running over half of our auctions for 2 hours. We're also testing new merchandising links where vehicle listings are segmented by a specific set of criteria to provide buyers with even more flexibility on searching for the right inventory.

談到我們戰略的第二個要素，創新。在幻燈片 12 上，我想強調我們如何利用創新來推動增長。在這種情況下，我們提高了轉化率。我們進一步擴大了 2 小時拍賣的範圍，補充了我們傳統的 20 分鐘現場拍賣形式。在短短幾個季度內，我們一半以上的拍賣都在 2 小時內進行。我們還在測試新的銷售鏈接，其中車輛列表按一組特定的標准進行細分，以便為買家搜索合適的庫存提供更大的靈活性。

Our mantra for continuous improvement extends to our enhanced vehicle display page that makes vehicle condition data easier to digest, enabling faster buying decisions for our dealer partners. We are leveraging AI to enhance our inventory matching capability that feed alerts to dealers based on their historical buying patterns.

我們持續改進的口號延伸到我們增強的車輛顯示頁面，使車輛狀況數據更容易消化，從而使我們的經銷商合作夥伴能夠更快地做出購買決策。我們正在利用人工智能來增強我們的庫存匹配能力，根據經銷商的歷史購買模式向他們發出警報。

Lastly, we continue to innovate on our pricing engine. which is powered by machine learning and leverages our industry-leading vehicle condition data along with the growing curated automotive data set. The goal here is to provide dealers with holistic pricing guidance to drive even higher success rates on our marketplace. The ACV pricing engine now powers several ACV products, including ACV Auctions Market Report, our [ClearCar] brand of consumer sourcing tools and upgrades we're making to MAX Digital.

最後，我們繼續創新定價引擎。它由機器學習提供支持，並利用我們行業領先的車輛狀況數據以及不斷增長的精選汽車數據集。這裡的目標是為經銷商提供全面的定價指導，以提高我們市場上的成功率。 ACV 定價引擎現在為多種 ACV 產品提供支持，包括 ACV 拍賣市場報告、我們的 [ClearCar] 品牌消費者採購工具以及我們正在對 MAX Digital 進行的升級。

As I mentioned earlier, our conversion rate expanded over 150 basis points year-over-year. And we believe innovation is a key element in driving these results. On Slide 13, we highlighted examples of tech investments that extend into our operations, delivering customer success while reducing costs. In this case, arbitration costs. As you know, minimizing arbitration has been a key focus for both customer satisfaction and optimizing margins. The key here is inspection accuracy.

正如我之前提到的，我們的轉化率同比增長了 150 個基點以上。我們相信創新是推動這些成果的關鍵因素。在幻燈片 13 中，我們重點介紹了技術投資的示例，這些投資延伸到我們的運營中，幫助客戶取得成功，同時降低了成本。在這種情況下，仲裁費用。如您所知，最大限度地減少仲裁一直是客戶滿意度和優化利潤的關鍵焦點。這裡的關鍵是檢查的準確性。

Several innovations that are improving inspection accuracy and efficiency. Our CoPilot, ArbGuard, Apex and our AI-powered imaging apps. CoPilot and ArbGuard leverage machine learning, predictive analytics and sensor data to inform our VCIs and vehicle-specific issues before and after conducting an inspection.

多項創新提高了檢測準確性和效率。我們的 CoPilot、ArbGuard、Apex 和人工智能驅動的成像應用程序。 CoPilot 和 ArbGuard 利用機器學習、預測分析和傳感器數據在進行檢查之前和之後告知我們的 VCI 和車輛特定問題。

Our next-gen collection device, Apex, delivers significantly higher transparency into vehicle operating additions while also increasing the inspection productivity for our VCI teammates. Our imaging AI continues to improve. Virtual list increases accuracy by identifying specific conditions like catalog converters and [rust]. In Q2, these innovations helped drive an 8% reduction in arbitration costs year-over-year. which is great performance in the current market.

我們的下一代收集設備 Apex 顯著提高了車輛操作添加的透明度，同時還提高了我們的 VCI 團隊成員的檢查效率。我們的成像人工智能不斷改進。虛擬列表通過識別目錄轉換器和 [rust] 等特定條件來提高準確性。第二季度，這些創新幫助仲裁成本同比降低了 8%。這在當前市場上是很好的表現。

To wrap up on innovation, I think you'll agree that our team is delivering industry-leading technology to our dealer partners and to our own operations. We have an exciting road map of innovation to drive both growth and scale, and we look forward to sharing more next quarter.

最後，我想您會同意我們的團隊正在為我們的經銷商合作夥伴和我們自己的運營提供行業領先的技術。我們有一個令人興奮的創新路線圖來推動增長和擴大規模，我們期待在下個季度分享更多信息。

With that, let me hand over to Bill to take you through our financial results and how we're driving growth at scale.

接下來，請讓比爾向您介紹我們的財務業績以及我們如何推動大規模增長。

Thanks, George, and thank you, everyone, for joining us today. We are very pleased with our Q2 financial performance, again delivering record revenue above our guidance range with upside to adjusted EBITDA. We also demonstrated the strength of our business model with meaningful revenue margin and adjusted EBITDA margin expansion versus Q2 '22.

謝謝喬治，也謝謝大家今天加入我們。我們對第二季度的財務業績感到非常滿意，收入再次高於我們的指導範圍，並且調整後的 EBITDA 仍有上升空間。與 2022 年第二季度相比，我們還通過有意義的收入利潤率和調整後的 EBITDA 利潤率擴張展示了我們業務模式的優勢。

Turning to Slide 15. I'll begin with a recap of our second quarter results. Revenue of $124 million was above the high end of our guidance range and grew 8% year-over-year. Adjusted EBITDA loss of $4 million also beat our guidance range and adjusted EBITDA margin improved approximately 900 basis points versus Q2 '22, demonstrating the attractive operating leverage in our model.

轉向幻燈片 15。我將首先回顧一下我們第二季度的業績。收入為 1.24 億美元，高於我們指導範圍的上限，同比增長 8%。調整後 EBITDA 損失 400 萬美元也超出了我們的指導範圍，調整後 EBITDA 利潤率比 22 年第二季度提高了約 900 個基點，這證明了我們模型中具有吸引力的運營槓桿。

Next, on Slide 16, I will cover additional revenue details. Auction and insurance revenue, which was 56% of total revenue, increased 6% year-over-year versus solid results in Q2 '22. This revenue performance reflects 3% year-over-year unit growth and auction and assurance ARPU of $453 which also grew 3% year-over-year.

接下來，在幻燈片 16 上，我將介紹其他收入詳細信息。拍賣和保險收入佔總收入的 56%，與 2022 年第二季度的穩健業績相比，同比增長 6%。這一收入表現反映了 3% 的同比單位增長以及 453 美元的拍賣和擔保 ARPU，也同比增長了 3%。

As George mentioned earlier, despite a decline in GMV per unit of 13% year-over-year, we were able to grow ARPU by 3% reflecting our price increases last fall, and we believe we still have pricing headroom going forward.

正如 George 之前提到的，儘管每單位 GMV 同比下降 13%，但我們的 ARPU 增長了 3%，反映出我們去年秋天的價格上漲，而且我們相信未來仍有定價空間。

Marketplace Services revenue, which was 37% of total revenue, grew 12% year-over-year. Results were driven by record revenue for both ACV Transport and ACV Capital. Our SaaS and data service products comprised 7% of total revenue and grew 1% year-over-year. As we discussed over the last few quarters, we are making significant improvements to the MAX Digital platform, while taking a more measured approach to customer acquisition in the near-term. We're confident these improvements position MAX for a reacceleration of growth entering 2024.

市場服務收入佔總收入的 37%，同比增長 12%。 ACV Transport 和 ACV Capital 創紀錄的收入推動了業績。我們的 SaaS 和數據服務產品佔總收入的 7%，同比增長 1%。正如我們在過去幾個季度所討論的，我們正在對 MAX Digital 平台進行重大改進，同時在短期內採取更加謹慎的方法來獲取客戶。我們相信這些改進將使 MAX 在進入 2024 年時重新加速增長。

Turning now to Slide 17. I will cover costs in the quarter. Q2 cost of revenue as a percentage of revenue decreased approximately 480 basis points year-over-year. The improvement was driven by both strong auction and assurance results and by ACV Transport. As George mentioned, we delivered mid-teens transport revenue margins in Q2, which is within striking distance of our 2026 target. We continue to focus on expense discipline as we optimize and scale our business. Non-GAAP operating expense, excluding cost of revenue, increased 2% year-over-year versus 36% year-over-year growth the prior year. This reflects the significant investments we made in prior years to support market expansion and technology initiatives.

現在轉向幻燈片 17。我將支付本季度的成本。第二季度收入成本佔收入的百分比同比下降約 480 個基點。這一改善是由強勁的拍賣和擔保結果以及 ACV Transport 推動的。正如 George 提到的，我們在第二季度實現了十幾歲左右的運輸收入利潤率，距離我們 2026 年的目標很近。在優化和擴展業務時，我們將繼續關注費用紀律。非 GAAP 運營費用（不包括收入成本）同比增長 2%，而上一年同比增長 36%。這反映了我們前幾年為支持市場擴張和技術舉措而進行的重大投資。

Moving to Slide 18, let me frame our investment strategy and path to profitability. Our focus on spending discipline and operating efficiency is expected to result in a material decrease in OpEx growth this year, resulting in our adjusted EBITDA loss declining by over 50% year-over-year. And as you've seen reflected in our Q2 results, we have accomplished this while preserving our go-to-market and technology investments to ensure ACV is in a strong position as market conditions improve.

轉到幻燈片 18，讓我框架一下我們的投資策略和盈利之路。我們對支出紀律和運營效率的關注預計將導致今年運營支出增長大幅下降，導致我們調整後的 EBITDA 損失同比下降 50% 以上。正如您在我們第二季度業績中所看到的那樣，我們在實現這一目標的同時，保留了我們的上市和技術投資，以確保 ACV 在市場狀況改善時處於有利地位。

Next, I will highlight our strong capital structure on Slide 19. We ended Q2 with $500 million in cash and equivalents and marketable securities and $105 million of long-term debt to finance the growth of ACV Capital. Note that our Q2 cash balance includes $168 million of float in our auction business. As we've discussed previously, the amount of float on our balance sheet can fluctuate meaningfully based on the business trends in the final 2 weeks of each quarter and has a corresponding impact on operating cash flow. For the first half of 2023, cash flow from operations was $23 million, a significant improvement from the $73 million loss in the first half of 2022.

接下來，我將在幻燈片19 上強調我們強大的資本結構。第二季度結束時，我們擁有5 億美元的現金、等價物和有價證券以及1.05 億美元的長期債務，為ACV Capital 的增長提供資金。請注意，我們第二季度的現金餘額包括拍賣業務中 1.68 億美元的流通量。正如我們之前討論的，資產負債表上的浮動金額可能會根據每個季度最後兩週的業務趨勢發生有意義的波動，並對運營現金流產生相應的影響。 2023年上半年，運營現金流為2300萬美元，比2022年上半年的7300萬美元虧損有了顯著改善。

Now I'll turn to guidance on Slide 20. For the third quarter of 2023, we're expecting revenue in the range of $115 million to $119 million. Adjusted EBITDA is expected to be a loss in the range of $8 million to $10 million. For the full year 2023, we are raising our expected revenue to a range of $474 million to $482 million, representing growth of 12% to 14% year-over-year. We are also reducing our expected adjusted EBITDA loss to a range of $23 million to $27 million, and we remain committed to achieving adjusted EBITDA breakeven exiting this year.

現在我將轉向幻燈片 20 的指導。2023 年第三季度，我們預計收入在 1.15 億美元至 1.19 億美元之間。調整後 EBITDA 預計虧損 800 萬至 1000 萬美元。對於 2023 年全年，我們將預期收入提高至 4.74 億美元至 4.82 億美元，同比增長 12% 至 14%。我們還將預期的調整後 EBITDA 損失減少至 2300 萬至 2700 萬美元，並且我們仍然致力於在今年實現調整後 EBITDA 盈虧平衡。

As it relates to our guidance, we are assuming that new and used vehicle supplies remain lower at historical levels in the near-term that improve as production and inventory continue to recover. We're also assuming that conversion rates follow normal seasonal patterns in the second half of the year, and wholesale price depreciation continues.

由於與我們的指引相關，我們假設新車和二手車供應量在短期內仍處於歷史水平較低水平，並且隨著生產和庫存的持續恢復而有所改善。我們還假設下半年的轉化率遵循正常的季節性模式，並且批發價格繼續貶值。

Let me wrap up on Slide 21 by reviewing our 2026 financial targets. We are very pleased with our execution in a challenging macro environment and remain confident in our ability to achieve $1.3 billion of revenue and $325 million of adjusted EBITDA in 2026 with 25% adjusted EBITDA margin. As we detailed at our Analyst Day in June, our confidence is reinforced by a number of factors, including strong dealer penetration and increased wallet share, resulting in sustained market share gains, opportunities to expand our TAM into adjacent markets, including commercial wholesale, our broad technology platform enabling long-term growth and operating efficiency, consistent improvement in revenue margins, and a commitment to balancing growth and investment as our business scales.

讓我通過回顧我們的 2026 年財務目標來結束幻燈片 21。我們對我們在充滿挑戰的宏觀環境中的執行情況感到非常滿意，並對我們在 2026 年實現 13 億美元收入和 3.25 億美元調整後 EBITDA 以及 25% 調整後 EBITDA 利潤率的能力充滿信心。正如我們在6 月份的分析師日中詳述的那樣，我們的信心受到多種因素的增強，包括強大的經銷商滲透率和增加的錢包份額，從而導致市場份額持續增長，將我們的TAM 擴展到鄰近市場的機會，包括商業批發、我們的廣泛的技術平台可實現長期增長和運營效率、收入利潤率的持續提高，並致力於隨著業務規模的擴大而平衡增長和投資。

And with that, let me turn it back to George.

說到這裡，讓我把話題轉回到喬治身上。

Thanks, Bill. Before we take your questions, let me summarize. We are very pleased with our strong execution in the second quarter and we are especially proud of our ACV teammates who delivered these results. We continue to gain market share by attracting new dealer and commercial partners to our marketplace and by gaining wallet share, which positions ACV for attractive growth as market conditions improve. We're executing our territory penetration plan and gaining traction in an expanding suite of offerings.

謝謝，比爾。在回答您的問題之前，讓我總結一下。我們對第二季度的強勁執行力感到非常滿意，尤其為取得這些成果的 ACV 隊友感到自豪。我們通過吸引新的經銷商和商業合作夥伴進入我們的市場以及獲得錢包份額來繼續獲得市場份額，這使得 ACV 隨著市場狀況的改善而實現有吸引力的增長。我們正在執行我們的領土滲透計劃，並在不斷擴大的產品組合中獲得吸引力。

We are delivering an exciting product road map to further differentiate ACV and expand our addressable market. We are on track to achieve our near-term adjusted EBITDA target and over the medium term, generate over $1 billion in revenue with attractive margins, and we believe will drive significant shareholder value. We are committed to achieving these results while building a world-class team to deliver on our goals.

我們正在提供令人興奮的產品路線圖，以進一步區分 ACV 並擴大我們的目標市場。我們有望實現近期調整後的 EBITDA 目標，並在中期內以有吸引力的利潤率創造超過 10 億美元的收入，我們相信這將帶來顯著的股東價值。我們致力於實現這些成果，同時建立一支世界一流的團隊來實現我們的目標。

With that, I'll turn the call over to the operator to begin the Q&A.

之後，我會將電話轉給接線員以開始問答。

(Operator Instructions) Our first question comes from the line of Michael Graham with Canaccord.

（操作員說明）我們的第一個問題來自 Michael Graham 和 Canaccord 的線路。

Can you hear me okay?

你能聽到我說話嗎？

We can.

我們可以。

Okay. Good. I just want -- thanks for the question and congrats on the execution. I just wanted to ask a macro question on the environment for dealer wholesale. You mentioned new car sales are sort of picking up, inventory levels are getting more healthy, which helps prime the pump for the used market, but also that we're still facing this period of high prices for used retail. I just want to kind of ask where you think we are on that curve of marching towards normalcy in the used market? And how long do you think it takes to get there if the new vehicle market can continue its sort of positive trend?

好的。好的。我只是想——感謝你的提問並祝賀執行。我只是想問一個關於經銷商批發環境的宏觀問題。您提到新車銷售有所回升，庫存水平變得更加健康，這有助於為二手車市場做好準備，但我們仍然面臨著二手車零售價格高企的時期。我只是想問一下，您認為我們在二手市場走向正常的曲線上處於什麼位置？如果新車市場能夠繼續保持積極的趨勢，您認為需要多長時間才能實現這一目標？

Yes. Michael, again, thanks for the question. And we talked quite a bit about this on our Investor and Analyst Day and one of the -- we talked about really the steps that all take place in sort of that return to normal market conditions, one being new car production and new car sales starting to come back towards normal. We're seeing great progress there. So very, very excited to see that even with this sort of -- all the thoughts of the concerns around the economy, consumers are buying new cars. They're excited about these new cars. There's all these great products coming out. OEMs are putting incentives -- are starting to put incentives around these new cars.

是的。邁克爾，再次感謝您的提問。我們在投資者和分析師日上對此進行了相當多的討論，其中之一是我們真正討論了恢復正常市場狀況所採取的所有步驟，其中之一是新車生產和新車銷售開始恢復正常。我們看到那裡取得了巨大進展。非常非常興奮地看到，即使有這種圍繞經濟的擔憂，消費者仍在購買新車。他們對這些新車感到很興奮。所有這些偉大的產品都問世了。原始設備製造商正在實施激勵措施——開始針對這些新車實施激勵措施。

So step #1 has been seeing new car production come back. And that is starting to happen. That's really an important part. We're also starting to see used car value start to come down. That's important because if you could buy -- you don't want to buy a new car, used car has to be of lower value than that said, new cars. And with that also, it will help once interest rates also come down to those used cars. So I think new car sales right direction. We'd like to see used car volume sales come back a little bit more significantly.

因此，第一步就是看到新車生產恢復。這正在開始發生。這確實是一個重要的部分。我們也開始看到二手車價值開始下降。這很重要，因為如果你可以購買——你不想購買新車，那麼二手車的價值必須低於新車。此外，一旦二手車的利率也下降，這也會有所幫助。所以我認為新車銷售的方向是正確的。我們希望看到二手車銷量有更顯著的回升。

And then we'll also start to see used cars start to add up on dealers lot over the next couple -- when you think about net path of normalcy. So I really said the same thing I probably said on the Investor Analyst Day, but we are -- these are all positive signs. We also said this year, we thought would be the trough where -- and that was all part of our forecasting for the year, part of our expectations. Really, we'll start to see next year be the year where we'll start to get back towards normal. And then between now and 2026, we're thinking by 2026, things are normal. But this year being the trough, and it starts to come back from there.

然後，當你考慮正常的淨路徑時，我們還將開始看到二手車在接下來的幾年中開始在經銷商中增加。所以我確實說了我在投資者分析師日可能說過的同樣的話，但我們 - 這些都是積極的跡象。我們還說過，今年我們認為將是谷底——這是我們今年預測的一部分，也是我們期望的一部分。確實，我們將開始看到明年我們將開始恢復正常。然後從現在到 2026 年，我們認為到 2026 年，一切都會正常。但今年是低谷，並且開始從那裡回來。

Our next question comes from the line of Nick Jones with JMP Securities.

我們的下一個問題來自 JMP 證券的 Nick Jones。

I guess one on some of your expectations around depreciation for the rest of the year. I guess, what gives you confidence in kind of the trajectory of unit depreciation? And then I guess, in a scenario where there's more volatility, do you feel dealers are better prepared to bid on cars that are more volatile and maybe result in less arbitration if things do get more volatile?

我猜想您對今年剩餘時間的折舊有一些期望。我想，是什麼讓您對單位折舊的軌跡充滿信心？然後我想，在波動性更大的情況下，您是否認為經銷商更願意競標波動性更大的汽車，並且如果事情確實變得更加波動，可能會導致更少的仲裁？

Yes, Nick. Thanks for the question. We do have -- as part of our planning for the year, we do have used car values going down. And we feel very comfortable that Bill can chime in, in this more if I don't answer completely, but we feel very good about how we've modeled used car values declining and what that means from average GMV.

是的，尼克。謝謝你的提問。作為我們今年計劃的一部分，我們確實有二手車價值下降。如果我沒有完全回答的話，比爾可以插話，我們對此感到非常放心，但我們對如何模擬二手車價值下降以及這對平均 GMV 意味著什麼感到非常滿意。

So one, I would say we feel good about it. But then I think the flip side to your question, which I think is a great question. is what does this all mean for dealers because at the end of the day, they've got to put together a number on a trade and a consumer is walking in. They've got this trade of a vehicle, let's say, it's got 80,000 miles or whatever how many miles are on it. And they've got to put a new number on this, and that number will be going down throughout the year.

所以，我想說我們對此感覺良好。但我認為你問題的另一面是一個很好的問題。這對經銷商來說意味著什麼，因為歸根結底，他們必須在交易中匯總一個數字，然後消費者就會走進來。他們已經進行了車輛交易，比方說，它有80,000 英里或無論有多少英里。他們必須為此制定一個新的數字，而這個數字全年都會下降。

We're helping by providing great data to the dealers, real-time data, not just the old way the books were done, that were just based on averages over many months. This is really real-time data. We've got AI powering our data and helping those dealers with their pricing. More and more dealers out there are starting to use the ACV Market Report, and we're starting to get our data into more places to help dealers and consumers understand the new value for that trade.

我們通過向經銷商提供大量數據、實時數據來提供幫助，而不僅僅是傳統的記賬方式，即僅基於多個月的平均值。這確實是實時數據。我們讓人工智能為我們的數據提供支持，並幫助這些經銷商定價。越來越多的經銷商開始使用 ACV 市場報告，我們也開始將數據傳輸到更多地方，以幫助經銷商和消費者了解該行業的新價值。

And if they price it right, Nick, then they won't have a hard time selling in the wholesale market. because they'll have priced it right to the consumer. So the combination of our real-time market data, how we then take the market data plus the condition assessment of that vehicle is a unique value that we think helps dealers in that declining market. As long as they're price right to the consumer, they'll be fine. And we're here to help them.

如果他們定價合適，尼克，那麼他們在批發市場上銷售就不會有困難。因為他們會為消費者定價。因此，我們的實時市場數據、我們如何獲取市場數據以及該車輛的狀況評估的結合是一個獨特的價值，我們認為它可以幫助經銷商在這個不斷下滑的市場中。只要價格適合消費者，就沒有問題。我們來這裡是為了幫助他們。

And I think -- yes, Nick, I'll just add a couple of points here. So our guidance assumes that prices come down in the double digits for the second half. So we've baked that into our assumptions. I would also add that you'll notice that we actually saw in our marketplace an increase in our GMV per unit in Q2 versus Q1. And that was attributable to an improvement in mix on our marketplace. So we're not assuming that, though, going forward. We are assuming there is a steady decline in the second half.

我想——是的，尼克，我只想在這裡補充幾點。因此，我們的指導假設下半年價格將出現兩位數下降。所以我們已經將其納入我們的假設中。我還想補充一點，您會注意到，我們實際上在市場上看到第二季度的每單位 GMV 比第一季度有所增加。這歸因於我們市場組合的改善。所以我們不會假設未來會這樣。我們假設下半年會穩步下降。

Our next question comes from the line of Eric Sheridan with Goldman Sachs.

我們的下一個問題來自高盛的埃里克·謝里登（Eric Sheridan）。

I want to come back to 2 themes from the Analyst Day that you touched upon in your prepared remarks today. Can you talk a little bit about conversion longer term? You've opened up sort of a gap vis-a-vis in the industry. And I want to understand what you see as key to either maintaining that gap or even widening as we've talked about over the medium to long-term, when you think about conversion.

我想回顧一下您在今天準備好的發言中提到的分析師日的兩個主題。您能談談長期的轉化嗎？您已經在行業中拉開了某種差距。我想了解，當您考慮轉化時，您認為維持這一差距甚至擴大差距的關鍵是什麼，正如我們在中長期討論的那樣。

And then also pricing. You took price last year. Any updated thoughts on elasticity over the long-term in terms of platform pricing and maybe those 2 concepts are sort of broadly fed into each other, but just wanted to get any updated longer-term thoughts.

然後還有定價。你去年就拿過價格了。關於平台定價方面的長期彈性的任何更新的想法，也許這兩個概念廣泛地相互融合，但只是想獲得任何更新的長期想法。

Yes. Thanks, Eric. We spend a lot of our resources focused on conversion and focused on helping both sellers and buyers. And just to remind ourselves, it's both the benefit to the seller and the buyer to get conversion rates up. Sellers because obviously, they're selling more of their inventory quicker and faster. And buyers, because they're not wasting their time bidding on cars that don't have health selling. So beyond the model itself, it's really important for the end customers.

是的。謝謝，埃里克。我們花費大量資源專注於轉化，並專注於幫助賣家和買家。只是提醒我們自己，提高轉化率對賣家和買家都有好處。賣家，因為顯然，他們正在越來越快地銷售更多庫存。還有買家，因為他們不會浪費時間競價購買沒有健康銷售的汽車。因此，除了模型本身之外，它對於最終客戶來說也非常重要。

On the seller side, it's several things. So you've been hearing us talk about auction formats. You has been hearing us talk about these conceptually the different lanes that -- where different vehicles are selling in different ways. We're investing quite a bit on this mantra of one size doesn't fit all, and each vehicle should be sort of merchandise the right way. You'll hear us talk about that more and more over the next sort of 6 to 9 months. We've been putting a little out there at a time as we're building, but we've got a pretty significant effort on our merchandising strategy. And we hint it and then I really talk about it more once that is fully launched.

在賣方方面，有幾件事。您已經聽到我們談論拍賣形式了。您一直在聽我們從概念上談論這些不同的車道，不同的車輛以不同的方式銷售。我們在“一刀切”這一理念上投入了大量資金，每輛車都應該以正確的方式成為商品。在接下來的 6 到 9 個月內，您會聽到我們越來越多地談論這個問題。在建設過程中，我們每次都會投入一些精力，但我們在銷售策略上付出了相當大的努力。我們暗示了這一點，然後一旦完全啟動，我就會再次談論它。

So more to come on merchandising, but that's one key thing. So think merchandising is making sure buyers see the vehicle, right? And not that it just came up for 20 minutes, it wasn't seen and we've got a pretty significant effort. A lot on AI and matching this merchandising to the said buyer. So we've got all this rich data, we've got all these buyers signed up around the country and really matching sellers and buyers. So we've got a tremendous effort on matching. So some significant technology and other resources there that we're spending.

因此，營銷方面還有更多內容，但這是一件關鍵的事情。那麼你認為推銷就是確保買家看到車輛，對吧？並不是說它只出現了 20 分鐘，而是沒有被看到，而且我們付出了相當大的努力。關於人工智能以及將這種商品與上述買家相匹配的很多內容。因此，我們擁有所有這些豐富的數據，我們在全國范圍內註冊了所有這些買家，並真正匹配了賣家和買家。所以我們在匹配方面付出了巨大的努力。我們正在花費一些重要的技術和其他資源。

And then broadly, when you think about taking the friction out, you want to make sure buyers are bidding on the right cars for them. So if it's a higher risk asset or a lower risk, meaning more issues or less issues on that given vehicle, the condition report and other data from -- that you get from that vehicle helps you create that magic. So long-winded answer to quite a bit on the -- us working on improving condition rates. This is never done, like, we can be on this call 10 years from now. We'll talk about how we're investing and globally matching up sellers and buyers, right, because you're really working on this connection of any given asset, making sure it's going from a seller to the right buyer.

一般來說，當您考慮消除摩擦時，您需要確保買家競標適合他們的汽車。因此，如果它是風險較高或風險較低的資產，意味著該車輛的問題較多或較少，則您從該車輛獲得的狀況報告和其他數據可幫助您創造奇蹟。如此冗長的回答相當多——我們正在努力改善狀況率。這是從來沒有做過的，就像我們可以在 10 年後參加這個電話會議。我們將討論我們如何投資以及如何在全球範圍內匹配賣家和買家，對吧，因為你實際上正在致力於任何給定資產的這種聯繫，確保它從賣家流向正確的買家。

On price and really, I don't think we could talk too much about that today, but I'll say that we've said that we've got more room. And the way to think about that room is how you straddle pricing with value meaning in our base offering today, we give buyers quite a bit of assurance. So it's -- you can't compare tit-for-tat to our competitors' pricing. I mean, the buyers get a certain level of assurance.

關於價格，實際上，我認為我們今天不能談論太多，但我會說我們已經說過我們有更多的空間。考慮這個房間的方式是如何在我們今天的基礎產品中兼顧定價和價值意義，我們為買家提供了相當多的保證。所以，你無法與我們競爭對手的定價進行針鋒相對的比較。我的意思是，買家得到了一定程度的保證。

And then in addition, we'll start to offer some other buyer assurance initiatives. We have one product out there today. We'll be launching more. So you'll hear us talk probably more about that towards the end of the year. But for today, I'll say that we do have some more room, Eric, and probably more to come on that topic.

此外，我們還將開始提供一些其他買家保證舉措。今天我們推出了一款產品。我們將推出更多。因此，到今年年底，您可能會聽到我們更多地談論這個問題。但今天，我要說的是，埃里克，我們確實還有更多的空間，而且可能還有更多的空間來討論這個話題。

Our next question comes from the line of John Colantuoni with Jefferies.

我們的下一個問題來自約翰·科蘭托尼 (John Colantuoni) 和杰弗里斯 (Jefferies) 的對話。

I hope I didn't just break the system right there.

我希望我沒有直接破壞系統。

I'll explain you John.

我會向你解釋約翰。

Starting with -- so I want to start with guidance. So your outlook calls for a sequential acceleration in revenue growth in the next couple of quarters. Can you just break down your expectations for marketplace and assurance in services and data. And specific to marketplace and assurance, what's embedded in your outlook in terms of conversion rates and listings? And what are sort of the key factors that could drive a delta relative to your expectations?

從——所以我想從指導開始。因此，您的前景是未來幾個季度收入增長將連續加速。您能否打破您對市場以及服務和數據保證的期望？具體到市場和保證，您對轉化率和列表的展望包含哪些內容？哪些關鍵因素可能會導致相對於您的預期出現增量？

And then next question, just quickly on gross margins for auction and -- sorry, Transportation, Capital and other services. They moderated a little bit sequentially and I think that's the first time they've moderated sequentially in 2 years. And so maybe just talk a little bit about what drove that sequential moderation. And then related to that, talk about the opportunities that continue to drive the attachment rate for ACV capital higher over time? I know there's a lot in there. Sorry about that.

下一個問題是關於拍賣的毛利率以及——抱歉，運輸、資本和其他服務。他們按順序進行了一點主持，我認為這是他們兩年來第一次按順序進行主持。因此，也許只是談談是什麼推動了順序調節。然後與此相關，談談隨著時間的推移繼續推動 ACV 資本附著率走高的機會？我知道裡面有很多東西。對於那個很抱歉。

John, it's Bill. So let me answer the second question first. So what we saw in Q2 was yet another improvement in our transport margins quarter-on-quarter, which we just continue to execute at a really high level in terms of our transport business. So we're pretty happy with that. So that was certainly part of it.

約翰，是比爾。那麼我先回答第二個問題。因此，我們在第二季度看到的是我們的運輸利潤率季度環比的又一次改善，我們只是繼續在運輸業務方面以非常高的水平執行。所以我們對此非常滿意。所以這肯定是其中的一部分。

Also on the capital side, keep in mind, in an increasing interest rate environment, we're passing through those rate increases to our customers. So as I would expect all of our competitors are doing as well. And that's a tailwind also in terms of margins. So those are the 2 dynamics with respect to marketplace services, okay? In terms of our guidance, so what I would tell you is we're assuming that we continue to gain share. This past quarter, based on our math, we gained 17% -- we gained share at the rate of 17% for Q2 which seems to be kind of the zone that we've been in for the last several quarters. So we're certainly extrapolating continued share gains.

另外，在資本方面，請記住，在利率不斷上升的環境中，我們正在將這些加息轉嫁給我們的客戶。正如我所期望的，我們所有的競爭對手也都在這樣做。就利潤率而言，這也是一個利好因素。這就是市場服務的兩個動態，好嗎？就我們的指導而言，我要告訴你的是，我們假設我們繼續獲得份額。根據我們的計算，上個季度我們增長了 17%——第二季度我們的份額增長了 17%，這似乎是我們過去幾個季度一直處於的區域。因此，我們肯定會推斷股票會持續上漲。

Obviously, in the second half, there's a seasonality factor as well. But there are a number of other initiatives that we just continue to drive internally that we think will allow us to execute at the level that we've baked into our guidance. That's probably all I would say at this point. I don't know if there's anything you want to add, George?

顯然，下半年也有季節性因素。但我們仍在內部繼續推動其他一些舉措，我們認為這些舉措將使我們能夠按照我們納入指導的水平執行。這可能就是我此時要說的全部內容。我不知道你還有什麼要補充的嗎，喬治？

No. I mean obviously, a favorable compare. So just saying the obvious. But we're happy with the execution and the end of the year assumes we just keep executing the way we've been.

不，我的意思顯然是，一個有利的比較。所以只是說顯而易見的事情。但我們對執行情況感到滿意，年底假設我們繼續按照以前的方式執行。

Our next question comes from the line of Naved Khan with B. Riley.

我們的下一個問題來自 Naved Khan 和 B. Riley 的對話。

George, maybe I heard you correct, but I just wanted to clarify this. Did you say that half of the auctions are running for up to 2 hours, is that right? And what are you hearing from dealers on that format? It looks like it [self-inconversion], any color there would be helpful. And then anything you can share with respect to dealer count on the platform? Is it -- is it stable? Or is it growing? What are you seeing on that front?

喬治，也許我沒聽錯，但我只是想澄清一下。你是說一半的拍賣會持續長達2小時，是嗎？您從經銷商那裡聽到了關於這種格式的什麼消息？看起來像是[自我轉化]，任何顏色都會有幫助。關於平台上的經銷商數量，您有什麼可以分享的嗎？穩定嗎？或者說它正在增長？你在前面看到了什麼？

Yes. We -- so yes, you heard correctly in the 2 hours. So we primarily offer the 2 hour auction to our sellers with higher conversion rate so that if we are in a way, think of it as almost like offering them real estate, more time on the platform. We primarily give it today to our top-producing sellers and also some to our new sellers who are also showing some good signs.

是的。我們——是的，您在 2 小時內沒聽錯。因此，我們主要向轉化率較高的賣家提供 2 小時拍賣，因此，如果我們在某種程度上，可以將其視為為他們提供房地產，在平台上有更多時間。今天，我們主要將其提供給我們的頂級賣家，也有一些提供給也表現出一些良好跡象的新賣家。

Dealers -- sellers typically love it. Some buyers love it. Some buyers don't. There's like anything, a little bit of -- everyone's got their own sort of favorite way to approach things. We keep making tweaks. As a matter of fact, I think we have some rollout happening not to get into the weed, but even this week and next week and buyers be able to pick and choose when they get their notification and like they can get the notification down to -- if they only want the notification within 20 minutes, they'll have no change for them, things like that.

經銷商——賣家通常喜歡它。有些買家喜歡它。有些買家不這麼認為。就像任何事情一樣，每個人都有自己最喜歡的處理事情的方式。我們不斷進行調整。事實上，我認為我們已經推出了一些不涉及雜草的產品，但即使在本周和下週，買家也可以在收到通知時進行選擇，就像他們可以將通知細化到- - 如果他們只想在20 分鐘內收到通知，那麼他們就沒有任何改變，諸如此類。

So high level, taking it back a step, look at it, you're matching buyers and sellers. It is helping with conversion. It's helping us outpace what's happening in the industry. And then you're never done. So whatever feature set we have out there right now, it just -- that happens to be it's live at this point. And the team is working a way to give more control to sellers and to buyers so that each one loves what we're doing and we'll just keep iterating.

這麼高的水平，退一步看，你正在匹配買家和賣家。它有助於轉化。它幫助我們超越行業中正在發生的事情。然後你就永遠不會完成。因此，無論我們現在擁有什麼功能集，它只是 - 恰好在這一點上它是實時的。該團隊正在研究一種方法，為賣家和買家提供更多控制權，以便每個人都喜歡我們正在做的事情，並且我們會不斷迭代。

Got it. And then on the dealer count, any color or commentary.

知道了。然後根據經銷商的數量，任何顏色或評論。

Yes, dealer account, we only really talk about that once a year. It's not something we do quarterly. But generally, we're doing it -- we're a pretty consistent company. You're seeing us quarter-over-quarter and what add our gains being pretty consistent. So I would say consistent.

是的，經銷商帳戶，我們每年只討論一次。這不是我們每個季度都會做的事情。但總的來說，我們正在這樣做——我們是一家非常穩定的公司。您會看到我們每個季度的表現，以及我們的收益相當一致的原因。所以我會說一致。

Our next question comes from the line of Christopher Pierce with Needham.

我們的下一個問題來自克里斯托弗·皮爾斯和李約瑟的對話。

You guys touched on it. New car sales, if you break down new car sales, we're seeing a lot of rental cars you kind of taking in allocations from OEMs. I'm just curious, you guys touched on rental car penetration at the Analyst Day. How does that kind of -- and I'm certainly not an expert here, but when they're taking in cars, there needs to be some defleeting, I would assume. How do you guys view that opportunity? Is that kind of an opportunity that's become more near-term than you might have thought because of the changes you've made and the allocation you're getting from OEMs?

你們都觸及到了。新車銷售，如果你細分新車銷售，我們會看到很多租賃汽車都從原始設備製造商那裡獲得了分配。我只是很好奇，你們在分析師日談到了租車滲透率。我當然不是這方面的專家，但我認為，當他們接收汽車時，需要有一些疏導。大家如何看待這個機會？由於您所做的改變以及從原始設備製造商處獲得的分配，這種機會是否比您想像的更加近期？

Yes, definitely, Chris. We -- it's a new opportunity. The nice thing is it -- historically, it's been very low, I think, a few hundred units a month, right? So this is all in a way, not new for us to grow into the sector. The nice thing when you look at the broad commercial TAM that I've mentioned to you all some commercial need land, some commercial doesn't as we scale. Rental would be an example where we can gain units across the country, even where we don't have land. We're -- so that's one of the nice elements of the rental. Now the defleeting is still very low. So it's nice to see it starting to go up. I think really high level.

是的，當然，克里斯。我們——這是一個新的機會。好處是——從歷史上看，我認為它非常低，每月幾百個單位，對吧？因此，從某種程度上來說，這對於我們進入這個行業來說並不是什麼新鮮事。當你看到我向你提到的廣泛的商業 TAM 時，一件好事是，有些商業需要土地，有些商業則不需要我們的規模。租賃就是一個例子，我們可以在全國范圍內獲得單位，即使我們沒有土地。我們——所以這是租賃的好處之一。現在的偏轉仍然很低。所以很高興看到它開始上漲。我覺得水平真的很高。

I'm going to give you exact numbers. We'll go from a few hundred units a month, a few thousand, and then they'll become more and more substantial over time. But yes, the answer to the simple question is that part of the ecosystem is starting to come back. And when I think about the industry coming back to normal between now and 2026, that's one example of a part of the industry that's starting to turn in the right direction, so low, very low -- very, very low compared to historical defleeting and wholesale volumes, but showing some positive signs.

我會給你確切的數字。我們將從每月幾百台，到幾千台，然後隨著時間的推移它們會變得越來越大。但是，是的，這個簡單問題的答案是生態系統的一部分正在開始恢復。當我想到從現在到 2026 年該行業將恢復正常時，這是該行業的一部分開始朝著正確方向轉變的一個例子，與歷史上的流失相比，非常低，非常低。批發量，但顯示出一些積極跡象。

Okay. And then just lastly, you guys talked about revamping MAX Digital and putting it back out there early next year. I'm just kind of curious, what is the product -- what the dealer you see it for? And what are you kind of intending or what are you hoping to use the floor going forward? Is it just pricing data? Or is there more to within kind of dumbing it down that much?

好的。最後，你們談到了改造 MAX Digital 並在明年初將其重新推出。我只是有點好奇，這個產品是什麼——你看到它的經銷商是什麼？您的打算是什麼，或者您希望未來如何使用地板？僅僅是定價數據嗎？或者還有更多的內部因素可以將其簡化到如此程度？

I'll try to say this in a way where it does not make a press release or news article because that's supposed to not happen until January or February. But I'll still try to probably drill a little color, okay? If you connect the dots here, so the MAX Digital that we acquired and inherited help dealers price inventory, both trades and sort of how they're going to price the trade and how they're going to price their retail inventory at a really high level. I also do some merchandising like it does merchandising around imaging and helps dealers put the right photos on the Internet, areas like that.

我會嘗試以不發布新聞稿或新聞文章的方式來表達這一點，因為這應該要到一月或二月才會發生。但我還是會嘗試鑽一點顏色，好嗎？如果你把這裡的點連接起來，那麼我們收購和繼承的 MAX Digital 可以幫助經銷商對庫存進行定價，包括交易以及他們將如何為交易定價以及他們將如何以非常高的價格為其零售庫存定價等級。我還做一些推銷工作，就像圍繞成像進行推銷一樣，幫助經銷商將正確的照片放在互聯網上，諸如此類。

We are in the process of taking the ACV assets. So think things like self-inspection and some of the things you've heard us talk about, which help understand condition of a vehicle and how that relates to pricing. And yes, our objective is -- think about like NADA is kind of like our Super Bowl event every year. And we're hoping to get what we're done. The reason I keep saying end of this year, early next year is because we want to show up NADA with sort of this refresh button again.

我們正在接管 ACV 資產。因此，想想自我檢查之類的事情以及您聽我們談論過的一些事情，這有助於了解車輛的狀況及其與定價的關係。是的，我們的目標是——想想 NADA 有點像我們每年的超級碗賽事。我們希望能夠實現我們所做的事情。我之所以一直說今年年底、明年初是因為我們想再次用這種刷新按鈕來展示 NADA。

It's sort of our own force time line to have a little fun here and come out with this fresh view of this product and how it's going to help dealers leverage a broader ACV data set that allows them to do their own self-inspection in a way to understand the value of these assets do a little bit more. So yes, I think it's all a teaser today. I think gave you a little bit more than I did at Analyst Day and more to come between now and early next year.

這是我們自己的強制時間線，在這裡享受一點樂趣，並提出對該產品的全新看法，以及它將如何幫助經銷商利用更廣泛的 ACV 數據集，使他們能夠以某種方式進行自我檢查要了解這些資產的價值，請多做一點。所以是的，我認為今天這一切都是預告片。我認為給你們帶來的信息比我在分析師日上所做的要多一些，而且從現在到明年初還會有更多。

Our next question comes from the line of Ronald Josey with Citi.

我們的下一個問題來自花旗集團的羅納德·喬西 (Ronald Josey)。

Can you hear me okay?

你能聽到我說話嗎？

Yes, certainly, Ron.

是的，當然，羅恩。

It was 2 hours 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.

直播了2個小時。喬治，也許，只是對此的快速跟進。我知道您不想對可能發生的事情說太多，但我想我聽到您在電話中說，越來越多的經銷商正在使用或利用 ACV 的市場數據來設定價格並改善拍賣體驗。那麼，當我們思考未來可能會發生什麼時，您能否告訴我們此時此刻可用的內容。

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.

當你——當我們考慮錢包份額的增長時，這是分析師日的一個重要部分，我們剛剛聽說如何減少摩擦。與我們談談所有這些不同的工具如何幫助銷售流程並提高整體錢包份額？我有一個快速跟進。

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 -- in self ACV Auction there's a Market Report where while you're bidding on a car, you can go really deep and look at that marketplace that's free, that dealer is 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.

好的。偉大的。 Ron，關於你的第一個問題，ACV 定價引擎存在於多個地方。所以 MAX 只是其中之一。因此，在拍賣中 - 在自我 ACV 拍賣中，有一份市場報告，當您競標汽車時，您可以深入了解免費的市場，經銷商可以作為增值服務進入市場成為ACV Auctions 的客戶有助於更多地匹配——它的構建方式，可能更面向買家而不是賣家，因為它提供了所有這些交易數據和定價數據。

A newer area that we just updated was taking the pricing engine to pay to get in the weeds here, but 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.

我們剛剛更新的一個新領域是採用定價引擎付費來進入這裡的雜草，但要啟動屏幕。啟動屏幕位於賣方一側。因此幫助賣方決定該資產的價格。這是我們團隊最近一直在重複的事情。所以我們已經為您檢查了這輛車。你以為這是一輛價值 25,000 美元的汽車。現在我們已經檢查過了，它看起來是 23,000 美元的汽車，您想要更改您的底價。這是一個例子。同樣，同樣的定價引擎從幫助買家變成了現在為賣家提供更多幫助。該部分也是免費的，而不是像 MAX 這樣的訂閱級別。

Whereas if you go into MAX Digital, MAX Digital is broader, Think about this as a broader inventory management tool. where it's not just helping you price, it's going into a workflow, it's going into whether you're taking that car to 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.

然而，如果您進入 MAX Digital，您會發現 MAX Digital 的範圍更廣，可以將其視為更廣泛的庫存管理工具。它不僅僅幫助您定價，還涉及工作流程，涉及您是否將這輛車用於交易和零售或批發。因此，這是一個比批發價值更廣泛的用例。因此，它正在吸取所有這些經驗教訓，並將其引入更廣闊的平台。這是你的第一個問題。你的第二個問題是——對不起，重複你的第二個問題。

Well, it was -- I think you sort of answered was around wallet share gains. And I think the -- it's around wallet share gains overall.

嗯，我認為你的回答是圍繞錢包份額的增長。我認為——這與整體錢包份額的增長有關。

All right. Perfect. You had another one. Go ahead.

好的。完美的。你還有另一個。前進。

And that one was on ClearCall -- just big announcement out at the Analyst Day. We didn't hear -- we haven't heard about it. So...

那是在 ClearCall 上發布的——只是在分析師日發布的重大公告。我們沒有聽說過——我們還沒有聽說過。所以...

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 [ClearCar] brand. If this was -- the restaurant analogy I've given to some of you is we've launched -- you've launched the restaurant, but we haven't yet actually done our grand opening yet, okay? So you're sort of like getting it out to market.

是的。因此，就您而言，這就是定價引擎所在的部分。所以謝謝你幫我完成我自己的句子。所以是同一個平台，對嗎？我們一直在構建這個定價引擎。這一切都利用人工智能和機器學習來幫助我們為車輛定價。我們對我們所處的位置感到非常興奮。我們悄然推出了[ClearCar]品牌。如果這是 - 我給你們中的一些人打的餐廳比喻是我們已經推出了 - 你們已經推出了餐廳，但我們還沒有真正完成我們的盛大開業，好嗎？所以你有點像把它推向市場。

Our objective is still to do, okay, ClearCar is here, sort of press release and go to market. We do have several hundred dealers using ClearCar. We've got -- over the last couple of months, we've got a healthy amount of new dealers signing up. We're feeling really good about (technical difficulty). ClearCar helps dealers price the vehicle actually with consumers who start their journey in their own drive flow. So you're at home, you want to decide what is the value of your vehicle. We put ClearCar on the dealer's website or it can be its own website that says like a WeBuyCars type of thing. So whether it's a dedicated web page or within their dealer web page, the consumer answers a few questions. And then the new version also by leveraging the product month we acquired, consumer can go around, take some pictures and we leverage AI to understand condition.

我們的目標仍然是，好吧，ClearCar 就在這裡，發布新聞稿並進入市場。我們確實有數百個經銷商使用 ClearCar。在過去的幾個月裡，我們已經有大量新經銷商簽約。我們對（技術難度）感覺非常好。 ClearCar 幫助經銷商與以自己的駕駛流程開始旅程的消費者實際定價車輛。因此，您在家中想要確定您的車輛的價值。我們將 ClearCar 放在經銷商的網站上，也可以是其自己的網站，上面寫著類似 WeBuyCars 之類的內容。因此，無論是專用網頁還是經銷商網頁，消費者都會回答一些問題。然後新版本還利用我們獲得的產品月份，消費者可以四處走動，拍一些照片，我們利用人工智能來了解情況。

And from all that, we're putting a number on a vehicle. And so we love what we're up to here. Dealers love it. We're getting really positive signs, again, using the restaurant analogy, think like the grand opening is coming soon. But we like to get these products out there in market, kind of really see, okay, where are we in scaling it before we do like all the press and we're really excited about where we're at. But you'll see probably from Analyst Day to now we now have a website up there. We've got some content up there. We're making our ways. And similar to what I said before, between now and the end of the year, we'll get more aggressive.

綜上所述，我們正在給車輛打上一個號碼。所以我們喜歡我們在這裡所做的事情。經銷商喜歡它。我們再次得到了非常積極的跡象，用餐廳來比喻，認為盛大開業即將到來。但我們希望將這些產品推向市場，在我們真正喜歡所有媒體之前，我們真的可以看到，好吧，我們在擴展它方面處於什麼位置，我們對我們所處的位置感到非常興奮。但你可能會看到從分析師日到現在我們現在都有一個網站了。我們那裡有一些內容。我們正在走自己的路。與我之前所說的類似，從現在到今年年底，我們將變得更加積極。

Our next question comes from the line of Bob Levick with CJS Securities.

我們的下一個問題來自 CJS 證券的 Bob Levick。

Can you hear me, it's Pete Lukas for Bob. One of the biggest areas of focus has always been inspections. We've talked about that a bit in terms of the technology that you're looking to roll out. But can you tell us -- kind of expand on in terms of your 2026 numbers, remind us of inspections for VCI and efficiency built into those '26 numbers?

你能聽到我說話嗎，我是鮑勃的皮特·盧卡斯。檢查一直是最受關注的領域之一。我們已經就您希望推出的技術進行了一些討論。但您能否告訴我們 - 稍微擴展一下 2026 年的數字，提醒我們對 VCI 的檢查和這些 26 數字中內置的效率？

Yes. It's Bill. So we're currently running around 6 inspections or so on average per inspector. And as we've talked about in the past, our best-performing inspectors are roughly double that. So we've got some inspectors obviously below the average in less mature territories. So what we've assumed is certainly greater efficiency by 2026, but not on average, at the maximum productivity of our best inspectors today. So you'll assume high single digits up to 10 inspections a day on average by 2026. So that directionally is what we baked into our modeling.

是的。是比爾。目前，我們每個檢查員平均進行大約 6 次檢查。正如我們過去談到的，我們表現最好的檢查員大約是這個數字的兩倍。因此，在不太成熟的地區，我們的一些檢查員的水平明顯低於平均水平。因此，我們的假設是，到 2026 年，效率肯定會更高，但平均而言，並不是以我們當今最好的檢查員的最大生產率實現的。因此，您將假設到 2026 年，平均每天檢查次數將達到 10 次。因此，這就是我們在建模中考慮的方向。

Extremely helpful. And then just one more. We know you're always innovating, and you talked a lot about that on the call, which was very helpful. But in terms of next up and the '26 goals, is there anything you need to add? Is it a build versus buy strategy? Is there a missing piece or something we should be thinking about there to get to those goals?

非常有幫助。然後還有一個。我們知道您總是在創新，您在電話中談到了很多這一點，這非常有幫助。但就下一步和26年目標而言，您還有什麼需要補充的嗎？這是構建還是購買策略？為了實現這些目標，是否有遺漏的部分或我們應該考慮的事情？

No. I think on the Analyst Day, we felt like we really laid out the plan, both on our expansion of our sort of product vision, making the inspection better and better. And without giving everyone exactly we're up to, right, because you want to keep a little bit for our own patent protection and legally keeping ourselves protected on all things we're building. I think we really leaned in and said this is the future where we're really leveraging AI to help us with vehicle condition and inspection.

不。我認為在分析師日，我們感覺我們確實制定了計劃，既擴展了我們的產品願景，又使檢查變得越來越好。並且沒有向每個人提供我們正在做的事情，對吧，因為你想保留一點來保護我們自己的專利，並在我們正在構建的所有東西上合法地保護我們自己。我認為我們確實傾心並表示，這就是我們真正利用人工智能來幫助我們處理車輛狀況和檢查的未來。

And I think it's an area we're way ahead of the industry. So I think just more just us continuing our path I think anything you have to believe there, to answer your question is we believe we're going to keep executing like we've been. Territory expansion, just keep growing the way that we've been growing. On the commercial side, that would start to be a part of our TAM expansion. So that part, we started to also lay out.

我認為我們在這個領域遙遙領先於行業。所以我認為更多的是我們繼續我們的道路，我認為你必須相信的任何事情，回答你的問題是我們相信我們將繼續像以前一樣執行。領土擴張，就像我們一直在發展的方式一樣繼續發展。在商業方面，這將開始成為我們 TAM 擴張的一部分。所以這部分我們也開始佈局。

Yes. Look, it's a continuation of share gains. And we quantify that. It's leveraging some of our pricing power over time. It's the market recovering by 2026. Those are the biggest drivers. If you go back and look at the chart that we put together breaking out the different revenue components.

是的。看，這是股票上漲的延續。我們對此進行了量化。隨著時間的推移，它正在利用我們的一些定價能力。市場將在 2026 年復蘇。這些是最大的驅動力。如果你回頭看看我們整理的圖表，細分了不同的收入組成部分。

Our next question comes from the line of Daniel Imbro with Stephens.

我們的下一個問題來自丹尼爾·因布羅和斯蒂芬斯的對話。

It's Daniel from Stephens. Maybe one longer-term question and then one follow-up. I want to start. When we think about market share, you've talked about some of the services and inspections you offer, but liquidity is still a really important long-term share, I guess. Are you still adding buyers to the platform? I think the comment earlier with sellers are relatively consistent, but how would you judge your liquidity at auction or seller returns versus your large omnichannel competitors out there?

我是斯蒂芬斯的丹尼爾。也許是一個長期問題，然後是一個後續問題。我想開始。當我們考慮市場份額時，您談到了您提供的一些服務和檢查，但我想流動性仍然是非常重要的長期份額。您還在向平台添加買家嗎？我認為之前與賣家的評論相對一致，但是與大型全渠道競爭對手相比，您如何判斷您的拍賣流動性或賣家回報？

We're executing, I would say, as planned. We've got with -- on the buyer side, we've got pretty significant effort on our -- bringing in new buyers, not to get into the weeds. So yes, we had think 2 months -- a month ago or 2 months ago, a little internal record, I think, we haven't seen in many, many months, which is like the most amount of new buyers signed up in 1 month. We're all clapping here. And as always we're pretty psyched about it.

我想說，我們正在按計劃執行。在買家方面，我們付出了相當大的努力，引進新買家，而不是陷入困境。所以，是的，我們想到了2 個月——一個月前或2 個月前，我想，我們已經有很多很多個月沒有看到過一些內部記錄了，這就像1 年來新註冊買家數量最多的情況。月。我們都在這裡鼓掌。一如既往，我們對此非常興奮。

So new buyers are coming on board, even though there was a little record broken internally, I would say consistent, right? Consistent new buyer acquisition retention has been, I would say, consistent. So really no change. I mean we're bringing on sellers and buyers. There are some parts of the country where we don't have enough supply to really get the demand, which is no different than what I've been telling many of you all for the last -- those that have known me for 6, 7 years or those last couple of years, right? You can bring more demand up in certain regions as you get more supply. There's a little bit of matchmaking in that regard. So I would -- I guess I would use the word consistent. We've been consistently adding on sellers and buyers.

因此，新買家不斷加入，儘管內部打破了一些記錄，但我認為是一致的，對嗎？我想說的是，持續的新買家收購保留是一致的。所以真的沒有改變。我的意思是我們正在吸引賣家和買家。在這個國家的某些地區，我們沒有足夠的供應來真正滿足需求，這與我上次告訴你們中的許多人沒有什麼不同——那些認識我六七年的人幾年或最近幾年，對吧？當你獲得更多供應時，你可以在某些地區提高需求。在這方面有一些匹配。所以我想——我想我會使用“一致”這個詞。我們一直在不斷增加賣家和買家。

Great. That's helpful. And then Bill, maybe quick clarifiers to John's question earlier, industry conversion rates have picked up the last 3, 4 weeks. Is that what's baking into the guidance? And I didn't see any comment on kind of your previous expectation to exit this year at a positive EBITDA run rate. Could you just discuss those 2 pieces of the outlook.

偉大的。這很有幫助。然後比爾，也許可以快速澄清約翰之前的問題，行業轉化率在過去 3、4 周有所回升。這就是指南中的內容嗎？我沒有看到任何關於您之前期望今年以正的 EBITDA 運行率退出的評論。您能簡單討論一下這兩個前景嗎？

Yes. So we are assuming conversion rates to moderate in the second half because -- and that's just based on seasonality, Daniel. So I would say nothing out of the ordinary there. We did have another good quarter in Q2 in terms of conversion rates, it was down from Q1, but Q1 was well above historical norms. So I would say our conversion rates are doing pretty well. And what we talked about previously is that we expect the year to have conversion rates that are consistent with kind of historical norms pre-COVID, which is the mid-50s, right?

是的。因此，我們假設下半年的轉化率會放緩，因為——這只是基於季節性，丹尼爾。所以我不會說任何不尋常的話。就轉化率而言，我們在第二季度確實又經歷了一個不錯的季度，它比第一季度有所下降，但第一季度遠高於歷史正常水平。所以我想說我們的轉化率做得很好。我們之前談到的是，我們預計今年的轉化率與新冠疫情之前（即 50 年代中期）的歷史標準一致，對嗎？

So that's all baked in. And there are a number of things that we're doing. We talked about the 2-hour auctions and things of that sort to try to continue to drive conversion rates up from where they are. And we're pretty happy so far with the results we're seeing. Yes, I believe in my prepared remarks, I reiterated that we are -- we continue to reiterate our commitment to exit this year at EBITDA breakeven.

所以這一切都已經確定了。我們正在做很多事情。我們討論了 2 小時拍賣和類似的事情，試圖繼續提高轉化率。到目前為止，我們對所看到的結果非常滿意。是的，我相信我準備好的講話，我重申，我們將繼續重申我們今年以 EBITDA 盈虧平衡退出的承諾。

Great. And sorry to cut you off George was there something else you can add?

偉大的。很抱歉打斷你的發言，喬治還有什麼可以補充的嗎？

Yes. And just when you look at some of these external things, let's say, about conversion rates going up versus saying we think it will be your typical seasonal pattern. A lot of that data you're seeing was from, let's say, the last x weeks. We have to -- obviously have a tough job of saying, what could happen between now and the end of the year. So just to separate those 2 things. That's why it's always just prudent for us to say follow seasonal pattern. It's the prudent way to go.

是的。當您查看其中一些外部事物時，例如，關於轉化率上升，而不是說我們認為這將是典型的季節性模式。您看到的許多數據都來自過去 x 週。顯然，我們必須明確從現在到年底之間可能發生的情況，這是一項艱鉅的任務。所以只是將這兩件事分開。這就是為什麼我們總是謹慎地說遵循季節性模式。這是謹慎的做法。

Our next question comes from the line of Rajat Gupta with JPMorgan.

我們的下一個問題來自 Rajat Gupta 與摩根大通的對話。

Great. Am I on? Okay. Great. Just a couple of quick ones. On green -- customer assurance, the gross margins moved lower sequentially. Was there anything to flag over there? And what was it like when you pick up an arbitration cost? And then you talked about the year-over-year improvements just in terms of the inspection quality. We're just curious like was there anything to flag in the second quarter, specifically the margin there came a little lower than what we had expected.

偉大的。我在嗎？好的。偉大的。只是幾個快速的。在綠色客戶保證方面，毛利率連續下降。那裡有什麼值得標記的嗎？當您收取仲裁費用時感覺如何？然後您談到了檢查質量方面的逐年改進。我們只是好奇第二季度是否有什麼值得關注的地方，特別是利潤率略低於我們的預期。

And then a follow-up on OpEx. It was really nice to see OpEx actually moved down sequentially in a seasonally better quarter. But the guidance continues to call for a pickup in the second half, of course, in the first half in a seasonally light second half. So curious about what's going on there? Or you just preparing for next year? Any other color you could add.

然後是運營支出的後續行動。很高興看到運營支出實際上在季節性較好的季度中連續下降。但指導意見仍然要求下半年回升，當然，上半年是季節性清淡的下半年。很好奇那裡發生了什麼？或者你只是為明年做準備？您可以添加任何其他顏色。

Okay. I'm trying to keep track of all the different parts of your question. So let me -- so the first one was on margins for customer assurance. So if you remember in Q1, we talked about the great performance we had on the arbitration front, which drove, overall, our blended gross margins at 50% in Q1, obviously, right? And we did say that we expected that Q2, our costs would go up sequentially quarter-on-quarter. That's what drove the reduction in margin. And again, I think we've taken you through how the accounting works for that, right? In terms of if you kind of look at the trailing 12-month average and then depending upon what your actual is in that quarter, it moves the actual margins, reportedly either up or down. .

好的。我正在嘗試跟踪您問題的所有不同部分。那麼，第一個是關於客戶保證的利潤。因此，如果您還記得在第一季度，我們談到了我們在仲裁方面的出色表現，這顯然推動我們第一季度的綜合毛利率達到 50%，對嗎？我們確實說過，我們預計第二季度的成本將環比上升。這就是導致利潤率下降的原因。再說一次，我想我們已經向您介紹了會計是如何運作的，對嗎？如果你查看過去 12 個月的平均值，然後根據該季度的實際情況，它會改變實際利潤，據報導是向上還是向下。 。

So frankly, that was not a surprise to us at all. In fact, at the end of the day, our overall revenue margin was 49%, which was actually a little better than we modeled internally. And obviously, with the OpEx efficiencies that you mentioned, we had a really strong bottom line performance with EBITDA loss of $4 million. So I know the third question was on OpEx. So let me just answer that one, and then I'll go to remind me what your second question was. But in terms of OpEx for the second half, so part of this, is actually the timing of spend.

坦率地說，這對我們來說一點也不奇怪。事實上，最終我們的整體收入利潤率為 49%，這實際上比我們內部模型要好一些。顯然，憑藉您提到的運營支出效率，我們的盈利表現非常強勁，EBITDA 損失達 400 萬美元。所以我知道第三個問題是關於運營支出的。那麼讓我回答這個問題，然後我會提醒我你的第二個問題是什麼。但就下半年的運營支出而言，其中一部分實際上是支出的時機。

So we can't be exact every quarter in terms of what the linearity is of our OPEX so what you're seeing is baked into our guidance, a slightly higher OpEx spend in the second half versus the first half. Obviously, we'll try to beat those numbers. But overall, obviously, we're lowering our projected EBITDA losses for the full year based on our new guide, right? Now you're -- remind me what your second question was?

因此，我們無法準確計算每個季度的運營支出線性度，因此您所看到的已納入我們的指導中，下半年的運營支出支出略高於上半年。顯然，我們會努力打破這些數字。但總的來說，顯然，我們正在根據新指南降低全年預計的 EBITDA 損失，對嗎？現在你——提醒我你的第二個問題是什麼？

Yes, it was more on OpEx line, how was it down sequentially despite in a seasonally better quarter sequentially. So I was just curious like what drove the sequential reduction there.

是的，更多的是在運營支出方面，儘管季度環比季節性較好，但它是如何連續下降的。所以我只是好奇是什麼推動了那裡的連續減少。

Yes. Yes, good question. So actually, our single largest expense on the marketing side is the NADA trade show, which happens in Q1, and that's a 7-figure cost for us. So that obviously only occurs and hits our Q2 financials. So that is the primary driver in terms of the quarter-on-quarter decline.

是的。是的，好問題。因此，實際上，我們在營銷方面最大的一項支出是 NADA 貿易展，該展會發生在第一季度，這對我們來說是 7 位數的成本。因此，這種情況顯然只會發生並影響我們第二季度的財務狀況。因此，這是季度環比下降的主要驅動因素。

Got it. Got it. So just to clarify on the arbitration because there was nothing like industry specific or anything to be concerned about from an arbitration perspective given the [short] period of like why price declines are coming in the industry.

知道了。知道了。因此，我只是想澄清一下仲裁，因為考慮到行業價格下跌的[短期]時期，從仲裁的角度來看，沒有什麼特定行業或任何值得關注的事情。

That's right. We beat our internal expectation. We even -- we try to telegraph this like we always do as much as possible. Like Q1 was like exceptional. I think I said specifically, don't expect exactly this by every quarter. But directionally, we hit closer to our 2026 goals, in Q1 of this year. So I don't expect all of it to be like quarter-to-quarter is linear that way. But yes, we did beat our goals and us hitting our exceeding guidance on EBITDA, we did beat our internal margin goals as well. So not only our OpEx, but we beat our internal. So it was -- we did execute better than we had internally planned.

這是正確的。我們超出了我們的內部預期。我們甚至嘗試像往常一樣盡可能地傳達這一點。就像第一季度非常出色一樣。我想我已經明確說過，不要期望每個季度都會出現這種情況。但從方向上看，我們在今年第一季度更接近 2026 年的目標。所以我不希望所有這些都像季度與季度一樣是線性的。但是，是的，我們確實超出了我們的目標，並且達到了 EBITDA 的超預期目標，我們也確實超出了我們的內部利潤率目標。因此，我們不僅擊敗了我們的運營支出，還擊敗了我們的內部人員。事實就是如此——我們的執行情況確實比我們內部計劃的要好。

And nothing with your second part of that question, follow-up. We are with customers or arbitration, nothing we're like that. It was just the quarter-over-quarter compare.

這個問題的第二部分，即後續行動，沒有任何內容。我們與客戶或仲裁無關，我們不是那樣的。這只是季度環比的比較。

Yes. I would -- by the way, Rajat, I would also add in Q2, we added over 100 employees. So while the sequential decline was, as I mentioned, because of the trade show expense in Q1. We continue to exercise a lot of discipline and prudence around our discretionary spending levels. And we're trying to always invest in the future and invest in technology and go-to-market. So we're also very, very focused on operating efficiencies and continue to drive those every quarter, and we expect to continue to do that as best as we can.

是的。我會 - 順便說一句，Rajat，我還會在第二季度添加，我們增加了 100 多名員工。因此，正如我提到的，雖然連續下降是由於第一季度的貿易展覽費用。我們繼續對可自由支配的支出水平實行嚴格的紀律和審慎態度。我們一直在努力投資未來、投資技術和進入市場。因此，我們也非常非常注重運營效率，並繼續每個季度推動運營效率，我們希望繼續盡我們所能做到最好。

Our next question comes from the line of Gary Prestopino with Barrington Research.

我們的下一個問題來自 Barrington Research 的 Gary Prestopino。

Good. A couple of questions here. If you can answer this, George. I know you don't give out your exact conversion rate, but could you maybe directionally talk about how your conversion rates were in excess of what the industry conversion rates were in the quarter?

好的。這裡有幾個問題。如果你能回答這個問題，喬治。我知道您沒有給出確切的轉化率，但您能否定向談談您的轉化率如何超過本季度的行業轉化率？

Gary, I'd rather not go there. Again, it's not how -- everyone likes using this conversion rate, they're all the same thing. But I would look at it this way. We're doing -- we're probably executing a conversion rate slightly ahead of schedule. It's helping in units, it's helping in customer satisfaction. And yes, compared to many of our competitors, we're probably doing a better job. But it's really hard for me to give you like a number or a compare but I would say, generally speaking, thematically, many of our sellers are ecstatic. Buyers are feeling like they're not wasting time bidding because they're actually getting more and more of these cars and every week and every month, if you take industry out of it, meaning all the macro stuff with used car declining, our -- all the stuff we keep talking about is helping, whether it's pricing guidance, merchandising, helping buyers get the -- bid on the right vehicles, we're doing a lot here, Gary. It's not one thing.

加里，我不想去那裡。再說一次，這不是如何——每個人都喜歡使用這個轉化率，他們都是一樣的。但我會這樣看。我們正在做——我們可能會稍微提前執行一個轉換率。它有助於單位，有助於提高客戶滿意度。是的，與我們的許多競爭對手相比，我們可能做得更好。但我真的很難給你一個數字或比較，但我想說，一般來說，從主題上來說，我們的許多賣家都欣喜若狂。買家感覺他們沒有浪費時間競價，因為他們實際上每周和每個月都得到越來越多的這些汽車，如果你把行業排除在外，這意味著所有與二手車有關的宏觀因素都在下降，我們的—— - 我們一直在談論的所有事情都是有幫助的，無論是定價指導、推銷、幫助買家競標合適的車輛，我們在這裡做了很多事情，加里。這不是一回事。

And I think that's a competitive advantage we have is we have the resources, both on product and technology as well as the people out in the field and on the phone to sort of complement and help our sellers and buyers sort of come together in a vehicle. So we're feeling really good about it. So starting to answer your question specifically, like given a numeric number, so we feel good about what we're doing.

我認為我們擁有的競爭優勢是我們擁有產品和技術方面的資源，以及現場和電話方面的人員，可以補充並幫助我們的賣家和買家在車輛上走到一起。所以我們對此感覺非常好。因此，開始具體回答您的問題，例如給出一個數字，這樣我們對我們正在做的事情感覺良好。

That's okay. And then second question is, you guys that are out in the field, I mean especially dealing with the franchise dealers are -- and maybe specifically more the OEM franchise dealers because vehicle supply on the new car side is starting to get a lot better, are you seeing -- people seeing in the field that the dealers are less apt to retail trade and they're selling it through your system rather than keeping it on the lot?

沒關係。第二個問題是，你們這些在外地工作的人，我的意思是特別是與特許經銷商打交道——也許更具體地說是與OEM 特許經銷商打交道，因為新車方面的車輛供應開始變得更好，您是否看到——人們在現場看到經銷商不太願意進行零售貿易，他們通過您的系統進行銷售，而不是將其保留在停車場？

So first, Gary, I know we don't give all this granularity out because it gets confusing. But yes, those things are starting to come up. That's a sign of willingness to trade. So that's a positive sign for us. So yes, we are starting to see more willingness. And as the dealer lots start to fill up. Keep in mind, most of these dealers' lots are still 20% to 30%, Tim. Is that right, lower than they were in '19. You're still seeing, Gary, 20% to 30% of a dealer's lots have a lot of empty spots for vehicles.

首先，加里，我知道我們不會給出所有這些粒度，因為它會讓人感到困惑。但是，是的，這些事情已經開始出現。這是交易意願的標誌。所以這對我們來說是一個積極的信號。所以，是的，我們開始看到更多的意願。隨著經銷商的批次開始填滿。請記住，這些經銷商的大部分批次仍然是 20% 到 30%，蒂姆。是嗎，比 19 年低。加里，你仍然會看到，經銷商 20% 到 30% 的土地上有很多空置的車輛位置。

So new car supply was like step 1, used cars supply is almost like step 2, that will take a little bit -- but even while step 1 is starting to happen, we're starting to see a little bit of that willingness, early signs, but early in that recovery. But yes, some early signs that are positive show dealers' willingness to wholesale, so that year-over-year -- hopefully, by next year, I can say year-over-year, dealers will have wholesale for vehicles year-over-year. Obviously, I've been saying the opposite up until this point.

因此，新車供應就像第一步，二手車供應幾乎就像第二步，這需要一點時間——但即使第一步已經開始發生，我們也開始看到一點這種意願，很早就跡象，但在復甦的早期。但是，是的，一些積極的早期跡象表明經銷商願意批發，因此逐年 - 希望到明年，我可以說逐年，經銷商將逐年批發車輛 -年。顯然，到目前為止我一直在說相反的觀點。

That concludes today's question-and-answer session. I'd like to turn the call back to Tim Fox for closing remarks.

今天的問答環節到此結束。我想將電話轉回給蒂姆·福克斯，讓他致閉幕詞。

Great. Thanks, Liz. I'd like to thank everybody for joining us on the call today. Please note that we're going to be participating at Canaccord's Annual Growth Conference this Wednesday in Boston. So we look forward to hopefully seeing you there or at another conference over the quarter. Once again, thank you for your interest in ACV, and have a great evening.

偉大的。謝謝，莉茲。我要感謝大家今天加入我們的電話會議。請注意，我們將於本週三參加在波士頓舉行的 Canaccord 年度增長會議。因此，我們期待在那里或本季度的另一場會議上見到您。再次感謝您對 ACV 的興趣，祝您度過一個愉快的夜晚。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。