Openlane Inc (KAR) 2024 Q1 法說會逐字稿

Good day, and welcome to the OPENLANE First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

美好的一天，歡迎參加 OPENLANE 2024 年第一季財報電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Mike Eliason, Treasurer and Vice President of Investor Relations. Please go ahead.

現在我想將會議交給財務主管兼投資者關係副總裁 Mike Eliason。請繼續。

Thanks, Cindy.

謝謝，辛蒂。

Good afternoon, and thank you for joining us today for the OPENLANE's First Quarter 2024 Earnings Conference Call. Today, we'll discuss the financial performance of OPENLANE for the quarter ended March 31, 2024. After concluding our commentary, we will take questions from participants.

下午好，感謝您今天參加我們的 OPENLANE 2024 年第一季財報電話會議。今天，我們將討論 OPENLANE 截至 2024 年 3 月 31 日的季度的財務表現。

Before Peter kicks off our discussion, I would like to remind you that this conference call contains forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties that may affect OPENLANE's business, prospects and results of operations, and such risks are fully detailed in our SEC filings. In providing forward-looking statements, the company expressly disclaims any obligation to update these statements.

在彼得開始我們的討論之前，我想提醒您，本次電話會議包含 1995 年《私人證券訴訟改革法案》安全港條款含義內的前瞻性陳述。 OPENLANE 業務、前景和營運績效的風險和不確定性，這些風險在我們向SEC 提交的文件中有詳細說明。在提供前瞻性陳述時，該公司明確不承擔更新這些陳述的義務。

Let me also mention that throughout this conference call, we will be referencing both GAAP and non-GAAP financial measures. Reconciliations of the non-GAAP financial measures to the applicable GAAP financial measure can be found in the press release that we issued this afternoon, which is also available in the Investor Relations section of our website.

我還要提一下，在整個電話會議中，我們將參考公認會計原則和非公認會計原則財務指標。非公認會計原則財務指標與適用的公認會計原則財務指標的調節表可以在我們今天下午發布的新聞稿中找到，該新聞稿也可以在我們網站的投資者關係部分找到。

Now I'd like to turn this call over to OPENLANE's CEO, Peter Kelly. Peter?

現在我想將這個電話轉給 OPENLANE 的執行長 Peter Kelly。彼得？

Thank you, Mike, and good afternoon, everybody.

謝謝麥克，大家下午好。

I'm delighted to be here today to provide you with an update on OPENLANE. Joining me is OPENLANE's Chief Financial Officer, Brad Lakhia. I will begin with a discussion of our company strategy and how we are positioning OPENLANE for growth. Then I'll hand the call over to Brad to cover the majority of our financial and operating metrics for the quarter.

我很高興今天能夠向您介紹 OPENLANE 的最新情況。與我一起出席的是 OPENLANE 的財務長 Brad Lakhia。我將首先討論我們的公司策略以及我們如何定位 OPENLANE 以實現成長。然後我會將電話轉交給布拉德，以涵蓋本季的大部分財務和營運指標。

To start, I'm very pleased with the results that OPENLANE delivered in the first quarter. On a consolidated basis, we grew adjusted EBITDA to $75 million, and we also generated $100 million in free cash flow from operations. These Q1 results were largely driven by significantly improved performance in the OPENLANE marketplace, which grew volumes 13% compared to Q1 of last year, grew adjusted EBITDA by 40% on a clean basis, and contributed 47% of our total company adjusted EBITDA during the quarter.

首先，我對 OPENLANE 第一季的成果感到非常滿意。在合併基礎上，我們將調整後的 EBITDA 增至 7,500 萬美元，並且還從營運中產生了 1 億美元的自由現金流。 These Q1 results were largely driven by significantly improved performance in the OPENLANE marketplace, which grew volumes 13% compared to Q1 of last year, grew adjusted EBITDA by 40% on a clean basis, and contributed 47% of our total company adjusted EBITDA during the四分之一.

AFC was also a strong contributor, generating approximately $40 million of adjusted EBITDA in Q1. These results demonstrate the positive impact of our brand and platform consolidation efforts and also the strong scalability characteristics of our company, a leaner, more agile operating model, accelerated innovation and a differentiated experience that makes wholesale easy for our customers. And I believe that Q1 is a compelling preview of the value that OPENLANE is capable of delivering.

AFC 也是一個強大的貢獻者，第一季調整後 EBITDA 產生約 4000 萬美元。這些結果證明了我們的品牌和平台整合工作的正面影響，以及我們公司強大的可擴展性特徵、更精簡、更敏捷的營運模式、加速的創新和差異化的體驗，使我們的客戶能夠輕鬆進行批發。我相信第一季是 OPENLANE 能夠提供的價值的令人信服的預覽。

So let me turn to our strategy and how we plan to build on this positive momentum. OPENLANE is highly focused on growth, growth in volume and market share, as well as growth in our financial results. We view these goals as complementary, and OPENLANE has spent several years transforming our business model to advance them simultaneously.

因此，讓我談談我們的策略以及我們計劃如何鞏固這一積極勢頭。 OPENLANE 高度關注成長、銷售和市場佔有率的成長，以及我們財務表現的成長。我們認為這些目標是互補的，而 OPENLANE 花了數年時間來轉變我們的業務模式以同時推進這些目標。

Our strategy for growth is anchored in our purpose, which is to make wholesale easy, so our customers can be more successful and guided by our vision, which is to build the world's greatest digital marketplace for used vehicles. OPENLANE has several strategic advantages that I believe will help us achieve our purpose and vision and further accelerate profitable, scalable growth. These advantages include: first, our expanding volume and share in the commercial and dealer segments; second, the opportunities enabled by our asset-light digital model; and third, our focus on the customer experience. Let me address each of these individually, and I'll start with volume growth and share.

我們的成長策略植根於我們的宗旨，即讓批發變得簡單，以便我們的客戶能夠更加成功，並以我們的願景為指導，即建立世界上最大的二手車數位市場。 OPENLANE 擁有多項策略優勢，我相信這些優勢將幫助我們實現我們的目標和願景，並進一步加速獲利、可擴展的成長。這些優勢包括：第一，我們在商業和經銷商領域的銷售和份額不斷擴大；第二，輕資產數位化模式帶來的機會；第三，我們注重客戶體驗。讓我逐一討論這些問題，我將從銷售成長和份額開始。

In the first quarter, OPENLANE grew its marketplace volumes by 13%, increased gross merchandise value by 17% to $7 billion and also increased market share. The volume, GMV and share growth were largely driven by our U.S. business. These results, coupled with the financial performance that I referenced earlier, purely demonstrate the strength of our marketplace. And at the heart of that strength is a differentiated mix of commercial and dealer inventory.

第一季度，OPENLANE 的市場交易量成長了 13%，商品總價值成長了 17%，達到 70 億美元，市佔率也有所增加。銷售量、GMV 和份額的成長主要是由我們的美國業務推動的。這些結果，加上我之前提到的財務業績，純粹證明了我們市場的實力。這種優勢的核心是商業和經銷商庫存的差異化組合。

In terms of commercial off-lease volumes, OPENLANE remains a clear market leader. Our commercial off-lease volumes were up substantially in both the United States and Canada during the quarter. And based on auction at industry data, our volume growth meaningfully outperformed the U.S. commercial market. Commercial off-lease supply is still well below pre-pandemic levels, and we expect volumes to remain pressured in the second half of this year and into 2025, given the low level of leases written in '21 and '22. However, current lease originations of new vehicles are rising. They increased again in the first quarter, making Q1 the fourth quarter in a row where that has happened, and they're expected to increase further throughout 2024. So OPENLANE will be a beneficiary of these future off-lease volumes when these leases mature.

就商業租賃量而言，OPENLANE 仍然是明顯的市場領導者。本季度，我們在美國和加拿大的商業租賃量大幅增加。根據產業拍賣數據，我們的銷售成長明顯優於美國商業市場。商業租賃供應仍遠低於大流行前的水平，鑑於 21 年和 22 年簽訂的租賃量較低，我們預計今年下半年和 2025 年的銷售仍將面臨壓力。然而，目前新車的租賃量正在上升。它們在第一季再次成長，使第一季成為連續第四個季度出現這種情況，並且預計在2024 年全年將進一步成長。的受益者。

Additionally, given the financial results we produced in Q1 with just a modest increase in off-lease volume, I'm increasingly optimistic about what OPENLANE can deliver when off-lease volumes are even more robust. We also see additional growth opportunities in the commercial segment, including expanding the products and services that we offer, growing vehicle consignment from new off-lease, rental and repo customers, as well as increasing conversion, particularly in higher revenue channels.

此外，考慮到我們在第一季產生的財務業績以及租賃量略有增加，我對當租賃量更加強勁時 OPENLANE 能夠提供的服務越來越樂觀。我們也看到商業領域的額外成長機會，包括擴大我們提供的產品和服務，增加新的租賃、租賃和回購客戶的車輛托運，以及提高轉換率，特別是在高收入管道中。

From a dealer volume perspective, we are also well positioned for growth. First, we have a very strong dealer-to-dealer platform that delivers excellent results for our dealer customers in terms of time to sale, cost of sale and financial outcomes. We are growing the number of franchise and independent dealer registrations across our geographies. And through our private label programs, we have the unique ability to transition thousands of franchise private label buyers into multichannel buyers and sellers on OPENLANE. Story with respect to OPENLANE Q1 Dealer volumes is nuanced. At an industry level, we saw declines in total dealer volumes sold in the U.S. and to an even greater degree in Canada.

從經銷商數量的角度來看，我們也處於成長的有利位置。首先，我們擁有非常強大的經銷商對經銷商平台，可以在銷售時間、銷售成本和財務成果方面為我們的經銷商客戶提供出色的成果。我們正在增加各個地區的特許經營和獨立經銷商註冊數量。透過我們的自有品牌計劃，我們擁有將數千名特許經營自有品牌買家轉變為 OPENLANE 上的多通路買家和賣家的獨特能力。關於 OPENLANE 第一季經銷商數量的故事是微妙的。在產業層面，我們看到美國經銷商的總銷量下降，加拿大的下降幅度更大。

Additionally, we also saw significant growth in commercial vehicle supply in the OPENLANE marketplace. This resulted in some dealers who in recent periods would have purchased dealer consigned vehicles, in effect, trading up and purchasing commercially consigned vehicles instead. This is a direct result of our diverse inventory and is actually a positive trend for our marketplace.

此外，我們也看到 OPENLANE 市場商用車供應量顯著成長。這導致一些近期本來會購買經銷商寄售車輛的經銷商實際上轉而購買商業寄售車輛。這是我們多樣化庫存的直接結果，實際上對我們的市場來說是一個積極的趨勢。

So the net-net of all of this for OPENLANE was as follows: Canada represented the majority of our dealer volume headwinds during the quarter. In the U.S., we saw increased supply from our network of selling dealers, we increased our D2D market share versus physical auctions, and we grew the total volume of open marketplace transactions in the United States.

因此，OPENLANE 的所有這些因素的淨值如下：加拿大代表了本季我們經銷商數量逆風的大部分。在美國，我們的銷售經銷商網路供應量增加，相對於實體拍賣，我們增加了 D2D 市場份額，並且美國公開市場交易總量也有所增加。

As I look to the future, there are several key factors that will support our dealer volume growth. First, there remains a large addressable market with the majority of industry volumes still being transacted at physical auctions. We believe we will continue to take share here as our digital marketplace enables faster and easier buying and selling and delivers better outcomes. Also, we now have a single platform experience with a unified sales team, focused on growing our new customer base and our wallet share with existing customers. And then finally, we are also highly focused on expanding our relationships with the largest dealer groups in the country. Many still utilize physical auctions, but again, our digital marketplace capabilities have already opened the door to many new opportunities and relationships.

展望未來，有幾個關鍵因素將支持我們的經銷商數量成長。首先，仍然存在一個巨大的潛在市場，大部分行業銷量仍在實體拍賣中進行交易。我們相信，我們將繼續在這裡佔據份額，因為我們的數位市場使買賣變得更快、更容易，並帶來更好的結果。此外，我們現在擁有統一銷售團隊的單一平台體驗，專注於擴大新客戶群以及與現有客戶的錢包份額。最後，我們也高度重視擴大與國內最大經銷商集團的關係。許多人仍然使用實體拍賣，但我們的數位市場能力已經為許多新的機會和關係打開了大門。

So in summary, OPENLANE is well positioned with both commercial and dealer customers, and there is growing evidence that having all of the buyers, all of the sellers and all of the vehicles all in one place creates a more active and vibrant marketplace.

總而言之，OPENLANE 在商業和經銷商客戶中都處於有利地位，並且越來越多的證據表明，將所有買家、所有賣家和所有車輛集中在一個地方會創建一個更加活躍和充滿活力的市場。

In addition to the volume opportunities, I believe we can accelerate growth by capitalizing on the opportunities that are enabled by our asset-light digital model. We continue to make good progress combining disparate tools and technology into a single marketplace platform. This will reduce our cost over time. But more importantly, it increases our operating leverage and also accelerates the speed at which we can bring new innovations to market.

除了數量機會之外，我相信我們可以利用輕資產數字模型帶來的機會來加速成長。我們繼續在將不同的工具和技術整合到單一市場平台方面取得良好進展。隨著時間的推移，這將降低我們的成本。但更重要的是，它增加了我們的營運槓桿，也加快了我們將新創新推向市場的速度。

At our core, we are a technology company, developing and launching new digital products and features on a regular basis. Let me give you a few examples from the quarter. As we previewed on our last earnings call, during the first quarter, we launched our new Visual Boost AI condition report technology, which is aimed at improving the accuracy and transparency of condition reports in our marketplace. To date, we believe we're still the only digital marketplace that gives buyers access to an AI-powered inspection visualization on every dealer vehicle listed in our marketplace. Our data has shown that buyers who utilize Visual Boost AI submit twice as many bids and offers on the vehicles that they view. And more bids leads to more seller confidence that we're achieving the best market outcome possible.

我們的核心是一家科技公司，定期開發和推出新的數位產品和功能。讓我舉幾個本季的例子。正如我們在第一季的上次財報電話會議上預覽的那樣，我們推出了新的 Visual Boost AI 狀況報告技術，旨在提高市場中狀況報告的準確性和透明度。到目前為止，我們相信我們仍然是唯一一個可以讓買家對我們市場中列出的每輛經銷商車輛進行人工智慧驅動的檢查視覺化的數位市場。我們的數據顯示，使用 Visual Boost AI 的買家對他們查看的車輛提交的出價和報價是兩倍。更多的出價會增加賣家對我們正在實現最佳市場結果的信心。

One large volume buyer described Visual Boost AI as a game-changing technology. Others said it allows their dealerships to view the car as if it was standing right in front of it, and several have mentioned that it helps them buy with more confidence. So Visual Boost AI is a powerful differentiator for us that is driving increased trust and transparency on the OPENLANE marketplace.

一位大批量買家將 Visual Boost AI 描述為一項改變遊戲規則的技術。其他人則表示，這可以讓他們的經銷商看到汽車，就好像它就站在汽車前面一樣，還有一些人提到，這可以幫助他們更有信心地購買。因此，Visual Boost AI 對我們來說是一個強大的差異化因素，它正在推動 OPENLANE 市場的信任度和透明度的提高。

Another OPENLANE innovation that was deployed in Q1 is our Absolute Sale feature. This was deployed in the U.S. marketplace. Absolute Sale is available to all sellers and visible to all buyers on that marketplace. Once the bidding has reached an acceptable price point to the seller, the seller can click on the Absolute Sale button to signal to the marketplace that this is -- they are now 100% committed to selling this vehicle. After the Absolute Sale process has been initiated, typically, we see buyer bidding increasing rapidly because buyers now know that if they submit the highest bid, they are guaranteed to win that vehicle. Sellers like this because it increases buyer engagement on their vehicles, and participating sellers have seen sales prices increased by an average of almost $500 after they have activated the Absolute Sale feature.

第一季部署的另一項 OPENLANE 創新是我們的 Absolute Sale 功能。這是在美國市場部署的。 Absolute Sale 可供所有賣家使用，並且該市場上的所有買家都可以看到。一旦出價達到賣方可接受的價格點，賣方就可以點擊「絕對銷售」按鈕，向市場發出信號——他們現在 100% 致力於出售該車輛。在絕對銷售流程啟動後，我們通常會看到買家出價迅速增加，因為買家現在知道，如果他們提交最高出價，他們就一定會贏得該車輛。賣家喜歡這樣，因為它可以提高買家對其車輛的參與度，參與活動的賣家在啟動 Absolute Sale 功能後發現銷售價格平均上漲了近 500 美元。

Based on this, it's evident that Absolute Sale is also driving higher marketplace engagement, increased velocity of sale and better outcomes for sellers. These are just 2 examples of a very robust and progressive portfolio of innovation that we're investing in to create the greatest digital marketplace for used vehicles.

基於此，很明顯，Absolute Sale 也提高了市場參與度，提高了銷售速度，並為賣家帶來了更好的結果。這些只是我們投資創建最強大的二手車數位市場的非常強大和進步的創新組合的兩個例子。

And then finally, let me turn to customer experience. which is an area where I believe there is tremendous opportunity for differentiation and an area that I believe will help drive meaningful growth. During the quarter, we formed a centralized customer experience team that will lead our customer experience strategy across OPENLANE, and leverage the data, the processes and best practices from all of our business. This team is already advancing a broad portfolio of initiatives with 2 main goals: First, address any known customer pain points or issues and second, identify the new products and features that will help make OPENLANE a preferred platform for buyers and sellers.

最後，讓我談談客戶體驗。我相信這個領域存在著巨大的差異化機會，我相信這個領域將有助於推動有意義的成長。本季度，我們組建了一個集中的客戶體驗團隊，該團隊將領導我們整個 OPENLANE 的客戶體驗策略，並利用我們所有業務的數據、流程和最佳實踐。該團隊已經在推進一系列廣泛的舉措，其主要目標有兩個：首先，解決任何已知的客戶痛點或問題；其次，確定有助於使OPENLANE 成為買家和賣家首選平台的新產品和功能。

In the first quarter, we designed a new customer NPS framework that is now being implemented across our business. This will help us monitor experience, delivery more consistently than ever before and will also help us benchmark with other companies and other industries. We also deployed new technology to enhance key aspects of the customer experience and aggregate customer feedback in a way that will help inform and prioritize our products development pipeline.

在第一季度，我們設計了一個新的客戶 NPS 框架，目前正在我們的整個業務中實施。這將幫助我們比以往更一致地監控體驗和交付，也將幫助我們與其他公司和其他行業進行基準比較。我們還部署了新技術來增強客戶體驗的關鍵方面，並彙總客戶回饋，有助於為我們的產品開發流程提供資訊並確定優先順序。

So it's evident that we made positive progress on each of these fronts in the first quarter, growing our volumes, deploying new innovation and improving customer experience. It's also evident that when these -- when combined, these strategic areas are capable of driving a highly scalable business.

因此，很明顯，第一季我們在各個方面都取得了積極進展，增加了銷量，部署了新的創新並改善了客戶體驗。同樣明顯的是，當這些策略領域結合起來時，就能夠推動高度可擴展的業務。

In the case of the first quarter, we saw 40% adjusted EBITDA growth, approximately 40% adjusted EBITDA growth in the marketplace on a 13% increase in volume, also with strong cash flows. As I look to the future, OPENLANE will build on this strong foundation and lean more heavily into our go-to-market strategy, investing further into sales, marketing, technology and innovation to continue driving growth.

就第一季而言，我們看到調整後 EBITDA 成長 40%，市場調整後 EBITDA 成長約 40%，銷售成長 13%，現金流也強勁。展望未來，OPENLANE 將在此堅實的基礎上再接再厲，更加註重我們的市場進入策略，進一步投資於銷售、行銷、技術和創新，以繼續推動成長。

And in terms of our finance business, AFC remains an industry leader and a strategic asset for OPENLANE. It increases buyer engagement and stickiness on our marketplace platforms and contribute meaningfully to our bottom line. Consistent with comments on our last call, I believe the risk environment is flattening and we remain committed to managing risk and growing responsibly in the AFC business.

在我們的金融業務方面，AFC 仍然是行業領導者，也是 OPENLANE 的策略資產。它提高了買家在我們市場平台上的參與度和黏性，並對我們的利潤做出了有意義的貢獻。與我們上次電話會議的評論一致，我相信風險環境正在趨於平緩，我們仍然致力於管理風險並負責任地發展亞足聯業務。

So that was the quarter. But before I hand things over to Brad, I just want to reinforce OPENLANE's key strengths in terms of our value proposition for investors and our ability to deliver stockholder value. OPENLANE is an asset-light digital marketplace leader for wholesale used vehicles. There is a large addressable market in North America and Europe, and we are well positioned to capture the opportunities to grow both dealer and commercial volumes.

這就是本季的情況。但在將工作交給 Brad 之前，我只想加強 OPENLANE 在為投資者提供價值主張以及為股東創造價值的能力方面的關鍵優勢。 OPENLANE 是二手車批發領域的輕資產數位市場領導者。北美和歐洲有一個巨大的潛在市場，我們處於有利位置，可以抓住增加經銷商和商業數量的機會。

Our brand and platform consolidation efforts are enabling us to accelerate innovation and product development. Our focus on operational efficiency gives us the financial headroom to invest in innovation without sacrificing financial results. We are cash flow positive with a strong balance sheet, and we believe our business has the capability to generate meaningful earnings growth over the next several years.

我們的品牌和平台整合工作使我們能夠加速創新和產品開發。我們對營運效率的關注為我們提供了投資創新的財務空間，同時又不犧牲財務表現。我們的現金流為正，資產負債表強勁，我們相信我們的業務有能力在未來幾年實現有意義的獲利成長。

With that, I'll hand it over to Brad for a deeper discussion on our operational and financial metrics in the quarter. Brad?

這樣，我將把它交給布拉德，以便對我們本季的營運和財務指標進行更深入的討論。布拉德？

Thank you, Peter, and good afternoon, everyone.

謝謝你，彼得，大家下午好。

Before I begin, I'd like to remind everyone that all financial metrics I comment on at a consolidated level and a total marketplace segment level are on a net revenue basis, which specifically excludes the impact of purchased vehicle sales. In addition, my comments will be on a first quarter year-over-year basis unless I state otherwise.

在開始之前，我想提醒大家，我在綜合層面和整個市場區隔層面評論的所有財務指標都是以淨收入為基礎的，其中明確排除了購買車輛銷售的影響。此外，除非我另有說明，我的評論將基於第一季的同比情況。

As Peter mentioned, we are very pleased with our first quarter results. On a comparable basis, our consolidated net revenue was up 4% year-over-year, mainly driven by the 13% unit volume growth in our Marketplace segment. In our reported results, you will see our net revenue was down 2% as we continue to realize the impact from the transportation accounting change we made in the fourth quarter of last year. This resulted in a $22 million impact to net revenue in the quarter. Consolidated gross profit improved $6 million or 3% and gross margin improved on a year-over-year basis for the fifth quarter in a row, this time by 270 basis points to 56.5%.

正如彼得所提到的，我們對第一季的業績非常滿意。在可比較基礎上，我們的綜合淨收入年增 4%，主要是由於我們的市場部門銷售成長 13%。在我們報告的業績中，您會看到我們的淨收入下降了 2%，因為我們繼續意識到去年第四季度運輸會計變更的影響。這對該季度的淨收入造成了 2,200 萬美元的影響。綜合毛利成長了 600 萬美元，即 3%，毛利率連續第五個季度同比增長，這次增長了 270 個基點，達到 56.5%。

Gross profit and margin benefited from higher auction and service fees, higher marketplace volumes and continued improvements to our cost structure. Consolidated SG&A in the quarter was $109 million and essentially flat to last year, even though our volumes were up 13%. We believe our digital model and our ongoing cost efforts will allow us to continue to scale efficiently, and we expect absolute SG&A to subsequently remain at these levels for the remainder of the year.

毛利和利潤率受益於更高的拍賣和服務費、更高的市場交易量以及我們成本結構的持續改善。本季的綜合 SG&A 為 1.09 億美元，與去年基本持平，儘管我們的銷量成長了 13%。我們相信，我們的數位模型和持續的成本努力將使我們能夠繼續有效地擴展規模，我們預計絕對銷售及管理費用將在今年剩餘時間內保持在這些水平。

Consolidated adjusted EBITDA was $75 million, an increase of $16 million. Last year, we incurred an $11 million charge related to an early stage investment. Accounting for this, adjusted EBITDA was up $5 million.

合併調整後 EBITDA 為 7,500 萬美元，增加了 1,600 萬美元。去年，我們因早期投資產生了 1,100 萬美元的費用。考慮到這一點，調整後的 EBITDA 增加了 500 萬美元。

Turning to the Marketplace segment. Our total volumes were up primarily driven by our U.S. business. Our total Marketplace dealer volumes declined, and this was primarily driven by our Canadian business. Similar to late last year, we continue to see Canadian buyers migrate towards commercial vehicles where supply has improved, and we expect this to continue as the overall wholesale mix of commercial and dealer vehicles shifts to pre-pandemic norms.

轉向市場部分。我們的總銷售成長主要是由我們的美國業務推動的。我們的市場經銷商總量下降，這主要是由我們的加拿大業務推動的。與去年年底類似，我們繼續看到加拿大買家轉向供應有所改善的商用車，並且隨著商用車和經銷商車輛的整體批發組合轉向大流行前的標準，我們預計這種情況將持續下去。

In terms of pricing and fees, for the third quarter in a row, we saw auction fees grow at double-digit rates. Total auction fee revenue increased 10% driven by strong volume growth. On a comparable year-over-year basis, services revenue was up 4%, driven by higher repossession, inspection and key service revenue. We continue to focus on driving greater attachment of our ancillary services to our Marketplace offerings.

在定價和費用方面，我們看到拍賣費用連續第三個季度以兩位數的速度成長。由於成交量強勁成長，拍賣費總收入成長了 10%。與去年同期相比，由於收回、檢查和關鍵服務收入增加，服務收入增加了 4%。我們將繼續致力於推動我們的輔助服務與我們的市場產品的進一步結合。

I want to note that our reported revenues show service revenue down 9%, again, primarily due to the transportation accounting change I discussed earlier. The collective positive impact of our volumes, pricing and disciplined cost management resulted in Marketplace adjusted EBITDA of $35 million. Adjusting for the prior year onetime charge, this is approximately a 40% increase and represents 47% of OPENLANE's total adjusted EBITDA, compared to 36% in the first quarter of last year. Marketplace SG&A was flat. And as mentioned in my earlier comments, consolidated comments, we expect the similar levels of SG&A for the balance of the year.

我想指出的是，我們報告的收入顯示服務收入再次下降了 9%，這主要是由於我之前討論的運輸會計變更所致。我們的銷售、定價和嚴格的成本管理的集體積極影響使市場調整後的 EBITDA 達到 3500 萬美元。調整上一年度的一次性費用後，增幅約為 40%，佔 OPENLANE 調整後 EBITDA 總額的 47%，而去年第一季為 36%。市場 SG&A 持平。正如我之前的評論（綜合評論）中提到的，我們預計今年剩餘時間的銷售及管理費用將保持類似水準。

As Peter said, we are very pleased with these improved results. But more importantly, we believe these improvements are sustainable and position us to deliver further improvements as we capture incremental value from our one Marketplace solution.

正如彼得所說，我們對這些改進的結果感到非常滿意。但更重要的是，我們相信這些改進是可持續的，並且使我們能夠在從單一市場解決方案中獲取增量價值時提供進一步的改進。

Turning to our Finance segment. Loan transaction units in the quarter were relatively flat as we continue to balance growth and risk. Revenues for the quarter were down 2%, primarily driven by increased net credit losses and lower interest income, resulting from lower vehicle values within the portfolio. These 2 factors were also the primary driver of our Finance segment adjusted EBITDA result of $40 million, down $5 million versus last year.

轉向我們的金融部門。隨著我們繼續平衡成長和風險，本季的貸款交易單位相對持平。本季收入下降 2%，主要是由於投資組合中的車輛價值下降導致淨信貸損失增加和利息收入減少。這兩個因素也是我們金融部門調整後 EBITDA 業績達到 4,000 萬美元的主要動力，比去年減少了 500 萬美元。

The provision for credit losses was 2.3%, which was slightly better than our expectations. The higher loss rate versus historical performance is attributable to the ongoing impact of higher interest rates, declines in used vehicle values, continued consumer inflationary pressures and tightening retail credit availability. We are encouraged by the recent improvements we are seeing in the severity losses. This is the result of stabilizing fundamentals and proactive risk mitigation actions we have taken over the last year. As I mentioned in our year-end call, we continue to expect the overall first half loss rate to be comparable to the second half of 2023.

信用損失撥備為2.3%，略優於我們的預期。與歷史表現相比，損失率較高的原因是利率上升、二手車價值下降、持續的消費者通膨壓力和零售信貸緊縮的持續影響。最近我們看到損失嚴重程度有所改善，這讓我們感到鼓舞。這是我們去年穩定基本面、積極採取風險緩釋措施的結果。正如我在年終電話會議中提到的，我們仍然預計上半年整體虧損率將與 2023 年下半年相當。

As a result -- as usual, I will provide an updated outlook for our second half 2024 expectations during our next earnings call. And I'd like to reiterate that our long-term loss rate target of 1.5% to 2% remains unchanged. As Peter and I have said previously, we're very pleased with OPENLANE's portfolio of businesses and assets. As it relates to AFC, we value AFC's market leadership, the synergies with our marketplace and its leading financial performance and cash flow characteristics.

因此，像往常一樣，我將在下一次財報電話會議上提供 2024 年下半年預期的最新展望。我想重申，我們1.5%至2%的長期損失率目標保持不變。正如 Peter 和我之前所說，我們對 OPENLANE 的業務和資產組合非常滿意。就 AFC 而言，我們重視 AFC 的市場領導地位、與我們市場的協同效應以及其領先的財務表現和現金流量特徵。

Moving to the balance sheet and capital allocation. Consistent with prior quarters, we continue to generate strong cash flow. Cash flow from operating activities was $100 million in the quarter, and our consolidated net leverage was approximately 1x adjusted EBITDA. This level of cash generation demonstrates the value of our asset-light digitally focused Marketplace business, in combination with our leading fore-planned Finance business.

轉向資產負債表和資本配置。與前幾季一致，我們繼續產生強勁的現金流。本季經營活動產生的現金流為 1 億美元，我們的合併淨槓桿約為調整後 EBITDA 的 1 倍。這種水準的現金產生能力證明了我們以輕資產、數位化為重點的市場業務與我們領先的預先規劃的金融業務相結合的價值。

Overall, our capital allocation priorities remained unchanged. We continue to prioritize the funding of organic investments in our core digital businesses, while ensuring flexibility for high return, complementary strategic opportunities and shareholder returns. At the end of the quarter, we continue to have $125 million remaining on our share repurchase authorization. And looking to the future, we have a $210 million senior note maturing in June of 2025. We intend to use cash flow generated by the business, along with our strong liquidity position, to fund this maturity.

整體而言，我們的資本配置重點保持不變。我們繼續優先為核心數位業務的有機投資提供資金，同時確保高回報、互補策略機會和股東回報的靈活性。截至本季末，我們的股票回購授權仍剩餘 1.25 億美元。展望未來，我們有一張 2.1 億美元的優先票據將於 2025 年 6 月到期。

Wrapping up, our 2024 adjusted EBITDA expectations remain unchanged. We are still guiding to adjusted EBITDA between $285 million and $305 million for the year. Other guidance metrics also remain unchanged and are available in our earnings release. To summarize, we remain pleased with the business and financial performance. We generated $100 million of cash from operations in the quarter, and we were pleased with our overall volume growth. Our Finance business credit losses were better than expected. And finally, on a comparable basis, our Marketplace adjusted EBITDA grew approximately 40%, and we believe we are well positioned to continue to deliver continued improvement.

最後，我們對 2024 年調整後 EBITDA 的預期保持不變。我們仍預期今年調整後的 EBITDA 在 2.85 億美元至 3.05 億美元之間。其他指導指標也保持不變，可在我們的收益報告中找到。總而言之，我們對業務和財務表現仍然感到滿意。本季我們從營運中產生了 1 億美元的現金，我們對整體銷售的成長感到滿意。我們的金融業務信用損失優於預期。最後，在可比較基礎上，我們的市場調整後 EBITDA 成長了約 40%，我們相信我們處於有利位置，可以繼續實現持續改善。

With that, I'll turn the call over to the operator for questions.

這樣，我會將電話轉給接線生詢問問題。

(Operator Instructions) Our first question comes from Rajat Gupta of JPMorgan.

（操作員指示）我們的第一個問題來自摩根大通的 Rajat Gupta。

Can you hear me now?

你聽得到我嗎？

Yes, Rajat.

是的，拉賈特。

Could you give us a little more color on the trajectory of the dealer-to-dealer volumes in the U.S., what was your growth rate there? And any color on market share that you can provide in the quarter? And relatedly, any color on profitability of that business as well would be helpful. And I have a follow-up.

您能給我們更多關於美國經銷商間交易量軌跡的資訊嗎？您可以在本季提供任何顏色的市場佔有率嗎？與此相關的是，任何有關該業務盈利能力的顏色也會有所幫助。我有一個後續行動。

Thanks, Rajat.

謝謝，拉賈特。

So I guess, first of all, just in terms of overall volume, dealer and commercial, we grew 13%. We believe that was a greater growth rate than the industry demonstrated. So we think it's a quarter where we gained share in the industry overall.

所以我想，首先，就總銷量、經銷商和商業而言，我們成長了 13%。我們相信這比行業表現出的增長率更高。因此，我們認為這是我們在整個行業中獲得份額的一個季度。

If I look at U.S. dealer, we saw growth in dealer consignment volume of vehicles offered for sale. We increased our share vis-a-vis physical auctions. Physical auctions showed a decline in the quarter. And we grew the absolute number of open marketplace transactions in the U.S., the vast majority of which are dealer-to-dealer transactions.

如果我看看美國經銷商，我們會發現經銷商待售車輛的寄售量有所增加。我們增加了實體拍賣的份額。本季實物拍賣出現下降。我們在美國的公開市場交易的絕對數量有所增加，其中絕大多數是經銷商對經銷商的交易。

So we had a strong quarter. We believe we gained share overall, and we believe we gained share in the dealer-to-dealer segment. At least in comparison with physical auctions, which is the only data we have to compare with at this moment. So generally pleased with that.

所以我們有一個強勁的季度。我們相信我們整體上獲得了份額，我們相信我們在經銷商對經銷商細分市場中獲得了份額。至少與實體拍賣相比，這是我們目前唯一可以比較的數據。所以整體上對此感到滿意。

I'd also say, Rajat, profitability, while we don't break out profitability by the business units, our D2D business is profitable in the U.S. and in Canada and making a material contribution to our overall results. And I'd say we saw a significant improvement in the profitability of the U.S. model because in Q1 of last year, it was still an unprofitable business, whereas in Q1 this year, it was a positive contributor.

我還要說，Rajat，盈利能力，雖然我們沒有按業務部門細分盈利能力，但我們的 D2D 業務在美國和加拿大實現了盈利，並對我們的整體業績做出了重大貢獻。我想說，我們看到美國模式的盈利能力有了顯著改善，因為去年第一季度，它仍然是一項無利可圖的業務，而今年第一季度，它做出了積極的貢獻。

Understood. And maybe just a quick follow-up on the previous question. Any expected cadence for profitability in the U.S. D2D business, just given 1Q is typically a seasonally strong quarter. So wondering like if we can continue growing profitability there despite some of the seasonal dynamics in the second half?

明白了。也許只是對上一個問題的快速跟進。考慮到第一季通常是季節性強勁的季度，美國 D2D 業務盈利能力的任何預期節奏。因此，我們想知道，儘管下半年存在一些季節性變化，我們是否還能繼續提高獲利能力？

Yes. Rajat, well, first of all, the business transitioned to be positive contributor to our overall earnings in the middle of last year, I believe. So it's been a number of quarters now. So we expect this to continue. That is certainly the plan and the strategy.

是的。 Rajat，首先，我相信，該業務在去年年中轉變為對我們整體收入的積極貢獻者。現在已經過去幾個季度了。所以我們預計這種情況會持續下去。這當然是計劃和策略。

And again, the D2D business has a lot of strength. This digital model, as I mentioned in my remarks, is very -- getting very good results for customers, high conversion rates, high -- fast time to sale, low cost of sale, great price outcomes. So we're seeing great feedback from customers, strong adoption, as I said, consignment of vehicles by our selling dealers is increasing. Conversion rates are strong. The business is profitable. So I'm feeling good about that, Rajat.

再次強調，D2D 業務擁有強大的實力。正如我在演講中提到的，這種數位模型為客戶帶來了非常好的結果、高轉換率、高、快速的銷售時間、低的銷售成本、良好的價格結果。因此，我們看到客戶的回饋很好，採用率很高，正如我所說，我們的銷售經銷商的車輛寄售量正在增加。轉換率很高。生意是有利可圖的。所以我對此感覺很好，拉賈特。

I will say that in the quarter, and this was evident in both U.S. and Canada, we saw a significant growth in commercial volumes, 30% overall, approximately for the quarter. So that's positive for our business for sure. But one of the impacts of that is for a buyer in the marketplace, they're going to see a lot more commercial vehicles than they saw, say, in prior periods. And for a lot of these buyers, the commercial vehicles are the more desirable vehicles. So a lot of franchise buyers would rather buy from the commercial consignment than from other dealer consignment. So we certainly saw from a buyer appetite perspective, a trading up, I would describe it from dealers that might have bought more dealer consignment last year, now that there's more commercial supply buying more there.

我想說的是，在本季度，這一點在美國和加拿大都很明顯，我們看到商業銷量顯著增長，總體增長了 30%，大約在本季度​​。所以這對我們的業務肯定是正面的。但其影響之一是，對於市場上的買家來說，他們將看到比之前看到的更多的商用車。對許多買家來說，商用車是更理想的車輛。因此，許多特許經營買家寧願從商業寄售中購買，也不願從其他經銷商寄售中購買。因此，我們當然從買家胃口的角度看到了交易的上漲，我會從去年可能購買了更多經銷商寄售的經銷商那裡描述這一點，現在有更多的商業供應在那裡購買更多。

So there's an interplay between those 2 things. They don't exist in isolation between each other. But on a combined basis, as I said, we grew volumes 13%. Obviously, most of that driven, as I said, by U.S. growth, which was the strongest part of our business here in Q1. I'm very pleased about that. And again, driven a lot by commercial supply as well.

所以這兩件事之間有相互作用。它們彼此之間並不是孤立存在的。但正如我所說，總體而言，我們的銷量成長了 13%。顯然，正如我所說，這大部分是由美國成長推動的，這是我們第一季業務最強勁的部分。我對此感到非常高興。同樣，這也在很大程度上受到商業供應的推動。

Got it. Got it. And just on like the off lease dynamic, given what you're seeing in terms of return versus retention rates in the consumer. How do you think -- any updated thoughts on like how the dynamic should play out here in the second half once we start to lap the drop in lease originations from 2021 onwards? I was just curious like how are you seeing that interplay so far based on the return rates?

知道了。知道了。考慮到您在消費者的回報率和保留率方面所看到的情況，就像脫租動態一樣。您認為，一旦我們從 2021 年開始開始應對租賃起始量的下降，下半年的動態應該如何發揮，您有什麼最新的想法嗎？我只是很好奇，到目前為止，您如何看待基於回報率的相互作用？

Great. Well, obviously, Rajat, and you know this, off-lease volumes is the most significant part of the commercial segment in our business. So a lot of the increase that we saw in Q1 was driven by increase in off-lease volume. And that was really driven, Rajat, by a lower percentage of consumer buyouts of their off-lease vehicles.

偉大的。嗯，顯然，拉賈特，你知道這一點，租賃結束量是我們業務中商業部門最重要的部分。因此，我們在第一季看到的成長很大程度上是由脫租量的增加所推動的。 Rajat，這實際上是由消費者購買其租賃車輛的比例較低所推動的。

Again, in normal times, consumer buyouts might be 20%, 30%. In the last few years, that increased to like 70%, 80%. We're now seeing that drop again and that drove some increased supply. And you can see how that flows through our model, drove some of the volume and profitability increases that we talked about. But I would also say that in the first quarter, our actual off-lease volumes, I'd still say we're about 50% of normal. So still well below what we would characterize as normal or well below pre-pandemic levels.

同樣，在正常情況下，消費者買斷率可能是 20%、30%。在過去的幾年裡，這個比例增加到了70%、80%。我們現在再次看到這種下降，這推動了供應的增加。你可以看到它是如何透過我們的模型流動的，推動了我們談到的一些銷售和獲利能力的成長。但我還要說，在第一季度，我們的實際租賃量仍約為正常水準的 50%。因此，仍遠低於我們所說的正常水平或遠低於大流行前的水平。

As you look to the next period of time here, the next few quarters or the second half of this year and into next year, there's definitely going to be fewer vehicles at the top of the funnel. We understand that. I've got clear data on that from our customers. But offsetting that, we expect the consumer buyout percentage to continue to drop, okay? And that's going to mean more cars entering our marketing, a higher percentage of cars entering remarketing. And the interplay of those 2 factors is difficult to predict with precision. But I suspect we -- I don't suspect it will be as bad as what we had to endure in the sort of 2022 and 2023 year. That's my own view on it, and that's the feedback I'm also getting from customers.

當你展望接下來的一段時間、接下來的幾個季度或今年下半年以及明年時，漏斗頂部的車輛肯定會減少。我們明白這一點。我從我們的客戶那裡得到了明確的數據。但為了抵銷這項影響，我們預期消費者買斷率將持續下降，好嗎？這將意味著更多的汽車進入我們的行銷，更高比例的汽車進入再行銷。這兩個因素的交互作用很難精確預測。但我懷疑我們——我不認為情況會像 2022 年和 2023 年那樣糟糕。這是我自己的看法，也是我從客戶那裡得到的回饋。

And then on a very positive note, we're seeing new lease originations increase. And I believe in the first quarter, new lease originations increased by approximately 25% compared to Q1 of last year. That's now the fourth quarter in a row we've seen increasing new lease originations. I'm hearing from our customers, they expect that to continue. They expect to have more incentives and more leasing on vehicles. And that obviously will be very positive for us as those vehicles mature.

然後，非常積極的一點是，我們看到新的租賃開始增加。我相信第一季的新租賃量比去年第一季增加了約 25%。這已經是我們連續第四個季度看到新租賃的增加。我從我們的客戶那裡聽說，他們希望這種情況能持續下去。他們希望有更多的激勵措施和更多的車輛租賃。隨著這些車輛的成熟，這顯然對我們來說非常積極。

So in this off-lease segment, I certainly see the light at the end of the tunnel at this point. I see the increased volume showing up in Q1. That's very positive. I recognize we still have some challenging quarters to get through, but I think we're generally on a more positive trajectory in that category.

因此，在這個租約到期的階段，我當然看到了隧道盡頭的曙光。我看到第一季銷量增加。這是非常積極的。我認識到我們仍然需要度過一些充滿挑戰的季度，但我認為我們在該類別中總體上處於更積極的軌道上。

The next question comes from John Murphy of Bank of America.

下一個問題來自美國銀行的約翰‧墨菲。

Peter, I just wanted to ask a question about your comment about market share gains in digital versus physical auctions, especially here in the U.S. and where you think we are on that? And then also, I just wanted to get a gauge where you guys are on your market share in closed auctions, specifically here in the U.S.? So the shift in the market from digital -- from physical to digital and then what your market share is in closed auctions?

彼得，我只是想問一個關於您對數位拍賣與實體拍賣市場份額增長的評論的問題，特別是在美國，您認為我們在這方面的進展如何？另外，我只是想了解你們在封閉式拍賣中的市場份額，特別是在美國？那麼，市場從數位化——從實體到數位化的轉變，那麼你們在封閉式拍賣中的市佔率是多少？

Yes. John, I guess what I'd say, when we look at our volumes, first of all, our volumes are entirely digital. It's a digital marketplace business. And again, if I look at our total volume growth of 13% in Q1, that, I believe, is greater than the volume growth in the industry overall in Q1.

是的。約翰，我想我會說，當我們查看我們的捲時，首先，我們的捲完全是數位化的。這是一個數位市場業務。再說一次，如果我看看第一季 13% 的總銷量成長，我相信這比第一季整個產業的銷量成長還要大。

So that would point to increasing market share on a sort of overall level basis based on the data we're looking at. And then it's possible to sort of subdivide or estimate how much of that volume is commercial versus dealer. And again, when we look at it through that lens, we believe we outperformed both in the commercial and in the dealer category in the United States during Q1 as well. So, that's what we speak to in terms of market share. We think it's a positive quarter in that regard.

因此，根據我們正在研究的數據，這將表明在總體水平上增加市場份額。然後就可以細分或估計該數量中有多少是商業的還是經銷商的。再次，當我們從這個角度來看時，我們相信我們在第一季在美國的商業和經銷商類別中也表現出色。這就是我們所說的市場佔有率。我們認為在這方面這是一個積極的季度。

In terms of what is the pace of transition, I was talking about off-lease vehicles. The majority of those off-lease vehicles sell in a digital format. We enable, obviously, a lot of that for a lot of customers. So the majority of our customers' vehicles are selling online in the digital format. A mix of closed and open. In the dealer-to-dealer category, the majority vehicles are still selling in a physical format, going to physical auctions. That is still true, I believe, in the United States. But we see the digital channels gaining share. And again, we believe our Q1 volumes gained share versus physical volumes in the first quarter, when we look just at the D2D category.

就過渡速度而言，我談論的是租賃結束的車輛。大多數租賃車輛都以數位形式出售。顯然，我們為許多客戶提供了許多這樣的服務。因此，我們大多數客戶的車輛都以數位格式在線上銷售。封閉式和開放式的混合體。在經銷商對經銷商類別中，大多數車輛仍然以實物形式銷售，進行實體拍賣。我相信，在美國仍然如此。但我們看到數位管道的份額正在增加。同樣，當我們僅關注 D2D 類別時，我們相信我們第一季的銷量相對於第一季的實際銷量有所增長。

So, John, you know the industry. It's -- this industry takes time to evolve and adopt new technologies. But I think over time, it does and these trends become evident. And certainly, when I'm talking to franchise dealer customers, I think there's an increasing acceptance and understanding among that customer group that digital really is the future, that digital offers a lot of benefits to them, both in terms of time, cost, price realization, and they're very receptive to a greater adoption of digital channels as they look to the future.

所以，約翰，你了解這個行業。這個行業需要時間來發展和採用新技術。但我認為隨著時間的推移，情況確實如此，而且這些趨勢變得明顯。當然，當我與特許經銷商客戶交談時，我認為該客戶群越來越接受和理解數位化確實是未來，數位化為他們提供了許多好處，無論是在時間、成本、價格實現，並且在展望未來時，他們非常願意更多地採用數位管道。

Sorry, can you also comment on your market share in these closed auctions because it sounds like we're going to head more in that direction. So it seems like as more vehicles coming off of lease, more of those vehicles are going to be ending in closed auctions than maybe ever before. And I think you have a pretty big market share there. Just curious if you could talk about that position.

抱歉，您能否評論一下您在這些非公開拍賣中的市場份額，因為聽起來我們將更多地朝這個方向發展。因此，隨著越來越多的車輛停止租賃，更多的車輛將比以往任何時候都以封閉式拍賣結束。我認為你們在那裡擁有相當大的市場份額。只是好奇你能否談談這個職位。

Yes, John, good point. Sorry, I missed that in your -- I forgot to answer that part. The majority of the off-lease vehicles we're selling today sell within these closed auction marketplaces. So that is a fact. And those are obviously very, very important to our OEMs and franchise dealer networks because a lot of OEMs, they want to keep a high percentage of these vehicles within their franchise dealer network and support the brand and the used car portfolio.

是的，約翰，說得好。抱歉，我錯過了你的——我忘了​​回答那部分。我們今天銷售的大部分租賃車輛都是在這些封閉式拍賣市場中出售的。所以這是事實。這些顯然對我們的原始設備製造商和特許經銷商網路非常非常重要，因為許多原始設備製造商希望在其特許經銷商網路中保留較高比例的此類車輛，並支援品牌和二手車產品組合。

But importantly, they do also flow into the open, and that's an opportunity for us as well as for our customers to liquidate some of the vehicles there. But you're right, John, the closed auctions are very, very important, and we have -- our closed auction technology supports the majority of OEMs and captive finance companies in North America.

但重要的是，它們確實也會公開流動，這對我們以及我們的客戶來說都是一個清算那裡的一些車輛的機會。但你是對的，約翰，封閉式拍賣非常非常重要，我們的封閉式拍賣技術為北美大多數的原始設備製造商和自保金融公司提供支援。

And I'd also say -- I just want to point on customer retention. While it has been a challenging few years in the off-lease segment, and volumes have been way, way down, down lower than levels I would have ever imagined candidly. We have not lost customers through that period. We still have those OEM relationships, those captive finance relationships, and those are very positive relationships for us and for our customers.

我還要說——我只想指出客戶保留率。儘管租賃期滿這幾年是充滿挑戰的，而且交易量也大幅下降，低於我坦率想像的水平。在那段時期我們沒有失去客戶。我們仍然擁有那些原始設備製造商關係、那些專屬財務關係，這些對我們和我們的客戶來說都是非常正面的關係。

And as these volumes are coming back in whatever form they come back, I mean, obviously, it's all going to be digital, that you process these vehicles. Can you talk about just what the operating leverage is? I know we're kind of still bouncing off the bottom, so it was a good volume quarter, but op leverage wasn't necessarily huge.

隨著這些卷以任何形式返回，我的意思是，顯然，您處理這些車輛的一切都將是數位化的。能談談營運槓桿是多少嗎？我知道我們仍在從底部反彈，所以這是一個很好的交易量季度，但營運槓桿不一定很大。

But I mean, over time, as you kind of fill up the pipe here and units return to something that might be vaguely normal over time. How should we think about operating leverage as you're selling units, I don't know if you maybe say revenue were up 5% or 10%. What kind of flow-through do you get to EBITDA or when you're talking at the EBIT level. It's just -- things have changed and the models change. I'm just curious if you could talk about what you think that is.

但我的意思是，隨著時間的推移，當你填滿這裡的管道時，隨著時間的推移，單位會恢復到可能模糊正常的狀態。當你銷售單位時，我們應該如何考慮營運槓桿，我不知道你是否會說收入增加了 5% 還是 10%。當您談論 EBIT 等級時，您會獲得什麼樣的 EBITDA 流量？只是——事情發生了變化，模型也發生了變化。我只是好奇你能否談談你的想法。

Yes. I might answer that in sort of qualitative terms, and Brad, if you want to add any further color to that, please do. But John, I guess, having sort of worked in digital businesses for best part of my career at this point. I think the operating leverage is really, really strong in these models because so much of our cost structure is essentially fixed, the cost of our platform, the cost of our overhead, the cost of our sales team. And the marginal cost for incremental vehicles sold is pretty low.

是的。我可能會用某種定性的術語來回答這個問題，布拉德，如果你想為此添加任何進一步的色彩，請這樣做。但我想約翰在我職業生涯的大部分時間都在數位企業工作。我認為這些模型的營運槓桿非常非常強大，因為我們大部分的成本結構基本上是固定的，我們的平台成本、我們的管理費用、我們銷售團隊的成本。而且增量銷售車輛的邊際成本相當低。

And frankly, I think Q1, we had really strong evidence of operating leverage. At the end of the day, we had a 13% volume increase but a 40% EBITDA increase in the Marketplace segment. And I think that's very, very strong. The other thing, frankly, is we -- I do model out each month our volume versus our adjusted EBITDA performance in the business, and we continue to take steps to increase that operating leverage. We talked about some of the platform consolidation that we're doing. That reduces our cost. It increases our operating leverage. It also increases the speed at which we can deploy new innovation. So I think this business has a ton of operating leverage. I think we got a glimpse of that in Q1. Again, I would reiterate, commercial off-lease volumes, in my view, were still 50% below normal in Q1.

坦白說，我認為第一季度，我們有非常有力的營運槓桿證據。最終，我們的市場業務量成長了 13%，但 EBITDA 成長了 40%。我認為這非常非常強烈。坦白說，另一件事是我們——我確實每個月都會根據調整後的 EBITDA 業績對我們的銷售進行建模，並且我們將繼續採取措施提高營運槓桿。我們討論了我們正在進行的一些平台整合。這降低了我們的成本。它增加了我們的營運槓桿。它還提高了我們部署新創新的速度。所以我認為這項業務擁有大量的營運槓桿。我認為我們在第一季就已經看到了這一點。我再次重申，我認為第一季商業租賃量仍比正常低 50%。

So the sort of mental experiment I do is, okay, why do we have that 50% of volume flowing through here. What would the returns look like at that point. They would look, I believe, really, really strong. Now obviously, that's not going to happen in the next quarter, we're going to have to wait and work for that, but I think that opportunity exists.

所以我做的心理實驗是，好吧，為什麼我們有 50% 的流量流過這裡。那時的回報會是什麼樣子呢？我相信，他們看起來真的非常非常強大。顯然，這不會在下個季度發生，我們將不得不等待並為此努力，但我認為機會是存在的。

Brad, I don't know if you want to add anything to that.

布拉德，我不知道你是否想補充什麼。

Yes. No, I'd just say, I mean, I commented, John, on our SG&A performance in the quarter, compared to last year, overall flat SG&A. And so the revenue, kind of the topline unit growth -- volume growth benefit of that, SG&A is certainly much more fixed as Peter was alluding to. So I think you can see that in the year-over-year comparable.

是的。不，我只是說，我的意思是，約翰，我評論了我們本季的 SG&A 表現，與去年相比，SG&A 總體持平。因此，正如彼得所提到的那樣，收入、營收單位成長——銷售成長帶來的好處，SG&A 肯定更加固定。所以我認為你可以在同比中看到這一點。

I would also say, just to go maybe a little level deeper if you're in the direct expense category, we do have more variable costs as it relates to inspections. So, if you think about volumes coming back, inspection costs are more purely variable, not purely variable but more so, I think that's one. And then I would say in the legacy off-lease private label business, what we -- legacy used to call OPENLANE, that's largely more of a fixed cost business. So as those volumes come back, there's a lot of scalability there.

我還想說，如果您屬於直接費用類別，我們確實有更多與檢查相關的可變成本。因此，如果你考慮回來的數量，檢查成本更純粹是可變的，不是純粹可變的，而是更多，我認為這就是其中之一。然後我想說的是，在傳統的租賃自有品牌業務中，我們傳統上稱之為 OPENLANE，這在很大程度上是一項固定成本業務。因此，當這些卷回來時，就會有很大的可擴展性。

Okay. And then just one last one. Peter, you mentioned something about Absolute Sales, just sort of this neat feature of basically vehicle kicking over the reserve and that being kind of disclosed to everybody to create a feeding frenzy around that vehicle. What does that ultimately mean to you as far as getting a convert -- something converted that may have not converted before or the price higher? What does that actually mean? And how many other sort of -- I would call that a neat little trick, it's actually a very smart feature to turn on. But how many other sort of somewhat simple innovations that are very important do you think there are to make out there to drive the business going forward other than big tariffs in the tech stack?

好的。然後只有最後一張。彼得，你提到了一些關於絕對銷售的事情，就是這種巧妙的功能，基本上是車輛踢過儲備，並且向每個人公開，以在該車輛周圍產生瘋狂的餵養。就獲得轉換而言，這最終對您意味著什麼——之前可能未轉換過的轉換或價格更高？這實際上意味著什麼？還有多少其他類型的——我會稱之為一個巧妙的小技巧，它實際上是一個非常聰明的功能。但是，除了技術堆疊中的大關稅之外，您認為還有多少其他非常重要的簡單創新可以推動業務發展？

Yes. Good point, John. First of all, Absolute Sale, I agree. Listen, we've all been to auctions of different types of products where you see that happening. When it's like, okay, it's on the market, it's going to sell, it draws renewed interest in the sale, and that's what this does.

是的。好點，約翰。首先，絕對是銷售，我同意。聽著，我們都參加過不同類型產品的拍賣會，你會看到這種情況的發生。當它就像，好吧，它在市場上，它將被出售時，它會重新引起人們對銷售的興趣，這就是它的作用。

And by the way, Absolute Sale has become very popular. Like in less than 3 months since deployment, it's now the preferred selling mechanism for most of our franchise dealers in the U.S. marketplace already. So we've seen a massive adoption of it, and the sellers really like it for that reason.

順便說一下，絕對促銷已經變得非常受歡迎。部署後不到 3 個月，它現在已經成為美國市場上大多數特許經銷商的首選銷售機制。因此，我們看到它被大量採用，因此賣家非常喜歡它。

And John, not only do they like the fact that on average, once they hit the button, they're seeing another $500 on average or close to that in terms of price realization. But then to get that one car, where the car runs up $2,000 or $2,500 and that leaves a real lasting kind of memory in the minds of the seller, that one car, where I pressed the button and suddenly, it just took off. That's a real kind of aha moment in terms of their experience of the platform.

約翰，他們不僅喜歡這樣一個事實，即平均而言，一旦他們按下按鈕，他們就會看到另外平均 500 美元或接近價格實現的價格。但後來為了得到那一輛車，這輛車漲價了2,000 或2,500 美元，這在賣家的腦海中留下了真正持久的記憶，那一輛車，我按下按鈕，突然，它就起飛了。就他們對該平台的體驗而言，這是一個真正的頓悟時刻。

So -- but listen, we're watching it, we think it's driving -- we think it's improving -- helping improve conversion, helping improve price, helping improve stickiness, so that's positive. John, without going into specifics, listen, we're looking at all the opportunities that exist across our marketplace. And obviously, we're looking for the easier to deploy ways we can create a value add or eliminate a pain point. And there are plenty of those available to us rather than sort of having to sort of reengineer the whole tech stack. So more to come. I look forward to speaking about more of the innovations on future calls.

所以，但是聽著，我們正在關注它，我們認為它正在推動——我們認為它正在改善——幫助提高轉換率，幫助提高價格，幫助提高黏性，所以這是積極的。約翰，無需透露具體細節，聽著，我們正在尋找整個市場中存在的所有機會。顯然，我們正在尋找更容易部署的方式來創造增值或消除痛點。我們可以使用很多這樣的技術，而不必重新設計整個技術堆疊。未來還會有更多。我期待在未來的電話會議上談論更多創新。

The next question comes from Gary Prestopino of Barrington Research.

下一個問題來自巴靈頓研究中心的加里‧普雷斯托皮諾。

A couple of questions here. The commercial vehicle growth was really sensational. Was the bulk of that what you're seeing in return in off lease? Or were there other buckets that are also starting to come back for you?

這裡有幾個問題。商用車的成長確實令人震驚。其中大部分是您在租約到期時看到的回報嗎？或者還有其他的桶子也開始為你回歸嗎？

Good question, Gary. Off-lease is the biggest category. We saw growth in rental consignment and sales. We saw growth in commercial in all our geographies, Europe, Canada and North America. So it is -- off-lease is the most of it. We saw growth in all categories. That would be the short answer.

好問題，加里。脫租是最大的類別。我們看到租賃寄售和銷售的成長。我們在所有地區（歐洲、加拿大和北美）都看到了商業成長。事實就是如此——大部分都是停租。我們看到了所有類別的成長。這就是簡短的答案。

Okay. That's fine. And then, as I'm looking at my numbers here, it looks like your gross auction proceeds were up about almost 17%. It looks like your gross auction proceeds per vehicle were up about 3.5%. So obviously, that's the impact of selling a lot more commercial vehicles. But yet, your auction fees per vehicle were down about 2.4%. So could you maybe square that with me? I mean, I think if you're selling a higher-priced car, your auction fees for vehicles should be going higher. Is there some distortion in there from the Canadian business that you purchased or...

好的。沒關係。然後，當我查看此處的數據時，您的總拍賣收益似乎增長了約 17%。您每輛車的拍賣總收益似乎上漲了約 3.5%。顯然，這就是銷售更多商用車的影響。但是，每輛車的拍賣費用下降了約 2.4%。那你能和我解決這個問題嗎？我的意思是，我認為如果你出售一輛價格較高的汽車，那麼你的車輛拍賣費應該會更高。您購買的加拿大企業是否存在一些扭曲，或者...

No. It's -- but good observation. You are correct. So GMV increased 17%, volume increased 13%. So GMV per vehicle was up 4%, 3.7%, whatever the number we said, I think it's probably -- it's really driven by what John spoke to, increased volume of commercial vehicles, a higher percentage of those are selling in the closed sales where we have a lower revenue per unit, lower auction fee revenue per unit. But Gary, offsetting that, we also have a lower direct cost per unit as well. So those commercial cars tend to come with lower ARPU, but sometimes with higher gross profit percentage margin. So I think -- so I kind of look at it as volumes grew 13%. I think auction fees grew 10% in the quarter. So there was a little bit of dilution in auction fee per vehicle.

不，是——但是觀察力很好。你是對的。因此 GMV 增加了 17%，成交量增加了 13%。因此，每輛車的GMV 增長了4%、3.7%，無論我們說的是多少，我認為這可能是由約翰所說的推動的，商用車數量增加，其中在已完成銷售中銷售的比例更高我們的單位收入較低，單位拍賣費收入也較低。但加里，抵銷了這一點，我們的單位直接成本也較低。因此，這些商用車往往具有較低的 ARPU，但有時毛利率較高。所以我認為——所以我認為銷量增長了 13%。我認為本季拍賣費用增加了 10%。因此，每輛車的拍賣費用已稀釋。

The next question comes from Craig Kennison of Baird.

下一個問題來自貝爾德 (Baird) 的克雷格·肯尼森 (Craig Kennison)。

It's Craig from Baird. Just a quick follow-up on Absolute Sale. I'm guessing the seller can set that feature to the -- to on prior to the sale? Or is that something they have to monitor in real time?

我是貝爾德公司的克雷格。只是絕對銷售的快速跟進。我猜賣家可以在銷售前將該功能設定為開啟？或者這是他們必須即時監控的東西？

Craig, thank you. Good to hear from you again. So the way it's deployed at least initially, the seller sort of manually activates the Absolute Sale button when they believe they've got enough sort of action on the vehicle that gives them the confidence to say, hey, this car is going to sell no matter what, okay?

克雷格，謝謝你。很高興再次收到你的來信。因此，至少在最初的部署方式中，當賣家認為自己已經對車輛進行了足夠的操作時，他們會手動啟動「絕對銷售」按鈕，這讓他們有信心說，嘿，這輛車不會賣掉。

So that was our initial deployment. Given its popularity, we're exploring exactly what you said, Craig, of can we set up some automated rules that enable this to be activated either immediately in the auction or once a certain price level has been attained without the seller having to actively engage. So these are all part of the road map, Craig. I don't -- I confess, I don't know the exact timeline of either of those 2 items. It's possible one of them may be live already, but that's the plan.

這就是我們最初的部署。鑑於其受歡迎程度，我們正在探索您所說的，克雷格，我們是否可以設置一些自動規則，使其能夠在拍賣中立即激活，或者在達到一定價格水平後激活，而無需賣家主動參與。所以這些都是路線圖的一部分，克雷格。我不知道——我承認，我不知道這兩件事的確切時間表。其中之一可能已經上線，但這就是計劃。

And then naturally, you're going to get some growth if we see the off lease cycle turn positive for you. But I'm curious about your sales effort and where you're focusing those sales dollars. Are you trying to add more dealers to the network? Or are you focused more on increasing the number of volume or the amount of cars you can do, your existing network of dealers?

當然，如果我們看到租賃結束週期對您有利，您將獲得一些成長。但我很好奇你們的銷售工作以及你們將這些銷售資金的重點放在哪裡。您是否正在嘗試在網路中新增更多經銷商？或者您更注重增加現有經銷商網路的銷售量或汽車數量？

Craig, thank you. Listen, I think one of the strengths of the business is we have a very strong network of participating dealers in all our geographies, tens of thousands of dealers active each month and each quarter on our business.

克雷格，謝謝你。聽著，我認為該業務的優勢之一是我們在所有地區擁有非常強大的參與經銷商網絡，每個月和每個季度都有數以萬計的經銷商活躍在我們的業務中。

I mentioned, given the traction we're seeing and the one marketplace leaning in more into our go-to-market efforts. I would say principally, Craig, increasing the size of the network. I mentioned we've got a lot of private label franchise buyers, franchise dealers, who are buyers that are not yet sellers. So how do we work with those and convince them that OPENLANE is a great place to sell their vehicles as well. So there's opportunities there, converting buyers into sellers.

我提到過，考慮到我們所看到的吸引力以及一個市場更傾向於我們的市場推廣工作。克雷格，我主要想說的是，擴大網路的規模。我提到我們有很多自有品牌特許經營買家、特許經銷商，他們是還不是賣家的買家。那麼我們如何與這些人合作並讓他們相信 OPENLANE 也是銷售車輛的好地方。因此，存在將買家轉變為賣家的機會。

And then obviously, getting a greater share of wallet with the customers we already have. So we've got initiatives really addressing all of those aspects. But obviously, the size and scale of the network, both on the sell side and the buy side is obviously an important one.

顯然，我們在現有客戶中獲得了更大的錢包份額。因此，我們已經採取了真正解決所有這些方面的措施。但顯然，網路的規模和規模，無論是賣方還是買方，顯然都是一個重要因素。

The next question comes from Bob Labick of -- I'm sorry, CJS Securities.

下一個問題來自 CJS 證券公司的鮑勃拉比克（Bob Labick），對不起。

I wanted to dig in further, obviously, a lot has been addressed so far. But just digging a little further on the off-lease. Equity in off-lease vehicles is kind of stubbornly high in '24. It's ticked up a little bit, I think, even since the end of last year, but it's obviously down a lot since the beginning of '23. So how does that factor into the lessee retaining the vehicle or the grounding dealer buying the vehicle, meaning keeping them from going to auction? Is equity and leases low enough now that were kind of normalized? Or is there more benefit for you to come as that equity and leases continues to revert back to prior norms of 0 to negative?

我想進一步挖掘，顯然，到目前為止已經解決了許多問題。但只是在租約到期時進一步挖掘。 24 年，租賃結束後的車輛淨值一直居高不下。我認為，即使自去年年底以來，它也略有上升，但自 23 年初以來，它顯然下降了很多。那麼，這對承租人保留車輛或禁止經銷商購買車輛（意味著阻止他們參加拍賣）有何影響？現在股本和租賃是否已經夠低並且已經正常化了？或者，隨著權益和租賃繼續恢復到之前從 0 到負的標準，您會獲得更多好處？

Yes, Bob, great question. So I like your phrase stubbornly high. It has been stubbornly high. I agree with that. From my view, very, very stubbornly high, but that's where it's been. But it has declined, and that is leading to an increased percentage of vehicles being returned. However, the percentage being returned is still way below normal. So that's why our volumes, as I said, are still about 50% below what I'd say, our off-lease volume is still about 50% below normal, even with the increase in Q1.

是的，鮑勃，好問題。所以我非常喜歡你這句話。一直居高不下。我同意這一點。在我看來，非常非常高，但事實就是如此。但它已經下降，這導致車輛被退回的比例增加。然而，返回的百分比仍然遠低於正常水平。因此，正如我所說，這就是為什麼我們的交易量仍比我所說的低 50% 左右，即使第一季有所增長，我們的租賃量仍比正常水平低 50% 左右。

Then, Bob, in terms of the timing, in Q1, typically, there's a spring market phenomenon, as you know, in our industry, and that typically supports prices in Q1. So the equity gap didn't really decline that much in Q1. In fact, by some metrics, increased a little bit again, like it did in Q1 of last year.

然後，鮑勃，就時間而言，在第一季度，通常會出現春季市場現象，正如您所知，在我們的行業中，這通常會支撐第一季的價格。因此，第一季的股權差距並沒有真正縮小那麼多。事實上，從某些指標來看，它再次增加了一點，就像去年第一季一樣。

But the expectation, I think, from speaking to some of our Finance customers is that the equity -- this equity gap will, over time, continue to decline. And I think 2 reasons for that. One is continued downward pressure on new used vehicle prices, as dealers have more cars on their lot, as manufacturers put more incentives on new cars, that flows through into being downward pressure on used vehicle prices. So there's probably some level of that that will still take place here. And then secondly, as we're sort of lapping new cohorts of leases that were written, they were sold at higher prices, higher average transaction prices and leased at higher residual values. So I think the expectation, Bob, is that ultimately, this will all kind of revert to normal, but it's going to take time.

但我認為，從與我們的一些財務客戶交談中得出的預期是，隨著時間的推移，這種股權差距將繼續縮小。我認為有兩個原因。一是新車二手車價格持續下行壓力，因為經銷商有更多汽車，製造商對新車給予更多激勵，這對二手車價格造成下行壓力。因此，這裡可能仍會發生某種程度的情況。其次，當我們正在整理新簽訂的租賃合約時，它們以更高的價格、更高的平均交易價格出售，並以更高的殘值出租。所以我認為，鮑勃，我們的期望是，最終一切都會恢復正常，但這需要時間。

And -- but we're obviously dealing with that and obviously trying to maximize our performance given the constraints that exist at the moment. But I'm pleased with at least some of the breaks that we saw in Q1.

而且 - 但我們顯然正在處理這個問題，並且考慮到目前存在的限制，顯然正在努力最大化我們的表現。但我至少對我們在第一季看到的一些突破感到滿意。

Okay. Great. It was fantastic commercial volume despite the higher equity. And then so kind of related to that, the dealer growth. I know you mentioned this potential trade-off if someone's on the state and you could get a commercial car, dealer car, you take the commercial car. So that will impact dealer cars as well. But it's been hard to come by for dealer-to-dealer growth for you guys for a little while now. What -- what's going to change? What has to change and what will change to get dealer car volumes up in absolute volume?

好的。偉大的。儘管股本較高，但商業量卻非常驚人。與此相關的是經銷商的成長。我知道你提到了這種潛在的權衡，如果有人在州內，你可以獲得一輛商用車，經銷商汽車，你就開商用車。因此這也會影響經銷商的汽車。但對你們來說，經銷商間的成長已經有一段時間很難實現了。什麼——什麼會改變？為了提高經銷商汽車銷售的絕對數量，必須做出哪些改變以及將做出哪些改變？

Yes. So good question, Bob. Listen, I agree with your comment. I think dealer volume growth has been hard to come by. And I would say probably in the industry, the dealer volume growth has been more flat in the -- at an industry level as well. In fact, as an industry dealer volumes, physical auctions were down in Q1, based on the data we have.

是的。好問題，鮑伯。聽著，我同意你的評論。我認為經銷商數量的成長來之不易。我想說的是，在產業中，經銷商數量的成長也更加平穩——在產業層面也是如此。事實上，根據我們掌握的數據，作為產業經銷商，第一季的實體拍賣量有所下降。

So listen, what I'd say, Bob, is we launched our one Marketplace OPENLANE in -- late in Q4. So really, Q1 was the first full quarter where we had that offering in market. I'm pleased with the performance of that Marketplace. We grew our open sales transactions in aggregate compared to Q1 of last year. So that's positive.

所以聽著，鮑勃，我想說的是，我們在第四季度末推出了我們的一個市場 OPENLANE。事實上，第一季是我們在市場上提供該產品的第一個完整季度。我對該市場的表現感到滿意。與去年第一季相比，我們的公開銷售交易總量有所成長。所以這是積極的。

Obviously, a lot of that growth was driven by commercial. But dealer consignment was also very strong. We saw increased consignment from dealers. We gained share vis-a-vis physical auctions in Q1. So I'm encouraged by that. I'm also encouraged by the reaction we're getting to customer -- getting from customers. So what are we doing? I think things like I mentioned, Absolute Sale, improving condition report. Those are things that we're doing. We're increasing our dialogue and focus with some of the largest dealer groups in the industry, making some positive progress there as well. And we're looking at our sales and marketing operations.

顯然，這種成長很大程度上是由商業推動的。但經銷商的寄售也非常強勁。我們看到經銷商的寄售量增加。我們在第一季的實物拍賣中獲得了份額。所以我對此感到鼓舞。我也對我們對客戶的反應—來自客戶的反應感到鼓舞。那我們在做什麼呢？我認為就像我提到的，絕對銷售，改善狀況報告。這些是我們正在做的事情。我們正在加強與業內一些最大的經銷商集團的對話和關注，並取得了一些積極進展。我們正在關注我們的銷售和行銷業務。

We've had a brand change to OPENLANE. There's still a bit of a brand awareness who is OPENLANE. Oh, I didn't really know you had this great dealer-to-dealer solution. So we've heard that as we've done some research. And we've got some areas where maybe we could use an extra person or 2 on the ground in certain regions of the country.

我們已將品牌更改為 OPENLANE。還有一點是OPENLANE的品牌知名度。哦，我真的不知道你們有這個很棒的經銷商對經銷商的解決方案。我們在做了一些研究後就聽說了這一點。在該國的某些地區，我們也許可以在地面上額外使用一兩個人。

So all of these things are being addressed. And obviously, it's a top focus of mine and of this company to continue to grow this part of the business, particularly in an era where we think the industry is fundamentally shifting in a more digital direction.

因此，所有這些問題都正在解決。顯然，繼續發展這部分業務是我和這家公司的首要關注點，特別是在我們認為該行業正在從根本上轉向數位化的時代。

I think we have time for one more question.

我想我們還有時間再問一個問題。

Okay. The last question is from Bret Jordan of Jefferies.

好的。最後一個問題來自 Jefferies 的 Bret Jordan。

I'll make it quick. As you look at the off-lease volumes and next year is the trough year in lease returns, and I guess you made some assumptions about equity gap and buyout rates. Do you see your off-lease business growing in '25, given it's a trough year in units, but with the lower buyouts that are likely coming offset that?

我會盡快處理的。當您查看租賃結束量時，明年是租賃回報的低谷年，我猜您對股權缺口和買斷率做出了一些假設。鑑於今年是單位數量的低谷，但您認為您的租賃業務在 25 年會成長嗎？

So Bret, great question, and thank you for that. This is a scenario where it's possible to model and it's very difficult to predict with confidence, it's how I describe it.

布雷特，這是一個很好的問題，謝謝你。在這種情況下，可以建模，但很難自信地預測，這就是我的描述。

So we obviously have done quite a detailed amount of modeling around this and various sort of scenario planning. And I guess what I'd say, Bret, is my current assessment is that the interplay of the 2 things that you just mentioned, the lower volumes at the top of the funnel, but also the hot -- the lower percentage of consumer buyouts. I think in most scenarios that we model, that will be a net positive for us. There are some scenarios where maybe it's more of a wash, maybe it's more flat. But there are plenty of scenarios where if you apply what I think is a reasonable judgment to the situation, our volumes can still move in a positive direction. Now that remains to be seen. I'm not committing to that on this call. But obviously, we do a lot of planning, and we're looking at it through that lens.

因此，我們顯然已經圍繞此和各種場景規劃進行了相當詳細的建模。布雷特，我想我想說的是，我目前的評估是，你剛才提到的兩件事之間的相互作用，漏斗頂部的銷量較低，但也很熱門——消費者買斷的百分比較低。我認為在我們建模的大多數場景中，這對我們來說都是積極的。在某些情況下，可能更多的是清洗，可能會更平坦。但在很多情況下，如果你對情況做出我認為合理的判斷，我們的交易量仍然可以朝著正面的方向發展。現在還有待觀察。我不會在這次電話會議上做出承諾。但顯然，我們做了很多規劃，我們正在透過這個鏡頭來看待它。

And then, the positive news, I just want to reiterate that again, is that we're now 4 quarters into increasing lease originations. And I believe in Q1, lease originations increased by about 25% versus Q1 of last year. So the trough is a fact but it also comes to an end. And leasing is rebounding. New vehicle incentives are increasing. Number of new vehicles on dealers' lots are increasing and volumes of off-lease vehicles will increase. And frankly, that is not too far away at this point. We can see the light at the end of the tunnel, and I think that will be very positive for this company. I think we're in a great position to serve our customer base as those volumes come to market.

然後，我想再次重申的積極消息是，我們現在已經連續四個季度開始增加租賃。我相信第一季的租賃起始量比去年第一季增加了約 25%。因此，低谷是一個事實，但它也會結束。租賃業務正在反彈。新車激勵措施不斷增加。經銷商手中的新車數量正在增加，租賃車輛的數量也將增加。坦白說，目前距離這一目標並不遙遠。我們可以看到隧道盡頭的曙光，我認為這對這家公司來說將是非常積極的。我認為，隨著這些產品進入市場，我們處於一個很好的位置來服務我們的客戶群。

So I think that concludes our questions. So before we end the call, I just would like to acknowledge Michael Eliason, our Treasurer and Vice President of Investor Relations. Mike will be retiring from OPENLANE before our next earnings call. Mike has been with this company for 25 years and has always kept our investor community updated and informed on OPENLANE's performance and all of the transactions and transformations that we've gone through over the past years. So Mike, a sincere thank you for your many contributions to OPENLANE, as well as to our investors, and we wish you all the very best.

我認為我們的問題就到此結束了。因此，在結束通話之前，我想感謝我們的財務主管兼投資者關係副總裁 Michael Eliason。麥克將於我們下一次財報電話會議之前從 OPENLANE 退休。 Mike 在這家公司工作了 25 年，始終向我們的投資者社群通報 OPENLANE 的表現以及我們過去幾年經歷的所有交易和轉型的最新情況。 Mike，衷心感謝您對 OPENLANE 以及我們的投資者所做的眾多貢獻，並祝您一切順利。

To the audience, thank you for joining us today. I look forward to speaking to you again on our next call and sharing more about how OPENLANE is making wholesale easy so our customers can be more successful. Thank you very much.

對觀眾來說，感謝你們今天加入我們。我期待在下次通話中再次與您交談，並分享更多關於 OPENLANE 如何使批發變得簡單，以便我們的客戶能夠取得更大成功的資訊。非常感謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。