Openlane Inc (KAR) 2024 Q2 法說會逐字稿

Good day, and welcome to the OPENLANE second quarter 2024 earnings call. All participants will be in a listen-only mode. (Operator Instructions)

美好的一天，歡迎參加 OPENLANE 2024 年第二季財報電話會議。所有參與者將處於僅聽模式。（操作員說明）

Please note this event is being recorded. I would now like to turn the conference over to Ms. Itunu Orelaru, Head of Investor Relations. Please go ahead, ma'am.

請注意此事件正在被記錄。現在我想將會議交給投資者關係主管 Itunu Orelaru 女士。請繼續，女士。

Good afternoon everyone. Welcome to OPENLANE's second quarter 2024 earnings call. With me today are Peter Kelly, CEO of OPENLANE; and Brad Lakhia, EVP and CFO of OPENLANE.

大家下午好。歡迎參加 OPENLANE 的 2024 年第二季財報電話會議。今天與我在一起的有 OPENLANE 執行長 Peter Kelly；以及 OPENLANE 執行副總裁兼財務長 Brad Lakhia。

Our remarks today include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that may cause our actual results or performance to differ materially from such statements. Factors that could cause such differences include those discussed in our press release issued today and in our SEC filings.

我們今天的言論包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性聲明。此類前瞻性陳述涉及風險和不確定性，可能導致我們的實際結果或績效與此類陳述有重大差異。可能導致此類差異的因素包括我們今天發布的新聞稿和美國證券交易委員會文件中討論的因素。

Certain non-GAAP financial measures as defined under the SEC rules will be discussed on our call. Reconciliations of GAAP to non-GAAP measures are provided in our earnings materials and available in the Investor Relations section of our website.

我們的電話會議將討論 SEC 規則定義的某些非 GAAP 財務措施。我們的收益資料中提供了 GAAP 與非 GAAP 衡量標準的調整表，並可在我們網站的投資者關係部分找到。

With that, I'll turn the call over to Peter. Peter?

這樣，我就把電話轉給彼得。彼得？

Thank you, Itunu, and good afternoon everyone. Before I get started, I just wanted to formally welcome Itunu to the role of Head of Investor Relations for OPENLANE. We're delighted to have Itunu and her deep financial expertise on the team and I know she is looking forward to working with all of you as we communicate our results, our strategy and the OPENLANE story.

謝謝 Itunu，大家下午好。在開始之前，我想正式歡迎 Itunu 擔任 OPENLANE 投資者關係主管。我們很高興擁有 Itunu 和她深厚的財務專業知識加入團隊，我知道她期待與大家合作，傳達我們的成果、策略和 OPENLANE 故事。

Turning to our results, OPENLANE's continued focus on execution and profitable growth led to positive results in the second quarter. We grew our volumes and on a consolidated basis we grew revenue and delivered $71 million of adjusted EBITDA, which was negatively impacted by a $2 million charge for the newly enacted Canada Digital Services Tax, or DST, which Brad will discuss in more detail later. Year-to-date we have also generated $138 million in cash flow from operations.

談到我們的業績，OPENLANE 持續專注於執行和獲利成長，導致第二季取得了積極的業績。我們的銷售量有所成長，在合併的基礎上，我們增加了收入，並實現了7,100 萬美元的調整後EBITDA，這受到新頒布的加拿大數位服務稅(DST) 200 萬美元費用的負面影響，布拉德將在稍後更詳細地討論這個問題。年初至今，我們也從營運中產生了 1.38 億美元的現金流。

Similar to Q1, I'm very pleased that these results reflect a significantly improved performance in the OPENLANE marketplace. On 7% volume growth the marketplace business contributed $33 million in adjusted EBITDA, which includes the $2 million DST charge and represents 46% of OPENLANE's total adjusted EBITDA. AFC was again a strong contributor, growing loan unit volumes and generating approximately $39 million of adjusted EBITDA in the second quarter.

與第一季類似，我很高興這些結果反映出 OPENLANE 市場效能的顯著提升。交易量成長 7%，市場業務貢獻了 3,300 萬美元的調整後 EBITDA，其中包括 200 萬美元的 DST 費用，佔 OPENLANE 調整後 EBITDA 總額的 46%。AFC 再次做出了強勁的貢獻，第二季貸款單位數量不斷增長，調整後 EBITDA 約為 3,900 萬美元。

I believe the consistent track record of performance we delivered in the first half of 2024 clearly demonstrates the power of our differentiated offering and the strong scalability characteristics of our company. We are accelerating innovation, improving the customer experience and making wholesale easy for our customers. The combination of these factors positions us very well to continue gaining share and deliver even stronger financial results in the future.

我相信，我們在 2024 年上半年交付的一致業績記錄清楚地證明了我們差異化產品的力量以及我們公司強大的可擴展性特徵。我們正在加速創新，改善客戶體驗，讓我們的客戶輕鬆進行批發。這些因素的結合使我們能夠在未來繼續擴大市場份額並實現更強勁的財務業績。

So let me turn to our strategy and how we plan to build on this positive momentum. OPENLANE remains highly focused on growth. We are a leaner, more agile company than ever before and I believe this enables us to grow our volumes, our market share and financial results simultaneously. As I previously said, our strategy for growth is anchored in our purpose to make wholesale easy so our customers can be more successful and guided by our vision to build the world's greatest digital marketplace for used vehicles.

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 仍然高度關注成長。我們是一家比以往任何時候都更精簡、更敏捷的公司，我相信這使我們能夠同時增加銷售、市場份額和財務表現。正如我之前所說，我們的成長策略植根於我們的目標，讓批發變得容易，以便我們的客戶能夠更加成功，並以我們建立世界上最大的二手車數位市場的願景為指導。

Our pursuit of these goals and OPENLANE's acceleration of profitable growth is enabled by three core strategic advantages: first, our expanding volume and share in both the commercial and dealer segments; second, the opportunities enabled by our asset-light digital model; and third, our focus on the customer experience.

我們對這些目標的追求以及 OPENLANE 獲利成長的加速得益於三個核心策略優勢：第一，我們在商業和經銷商領域不斷擴大的銷售和份額；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。

Let me address each of these individually and I'll start with volume growth and share. In the second quarter, OPENLANE grew its marketplace volumes by 7% despite headwinds from the CDK ransomware attack that negatively impacted our volumes in the quarter by approximately 6,000 vehicles, and without which our year-on-year volume growth would have been approximately 9%. We also increased our gross merchandise value by 6% to nearly $7 billion.

讓我逐一討論這些問題，然後我將從銷售成長和份額開始。儘管CDK 勒索軟體攻擊對我們本季的銷量產生了約6,000 輛汽車的負面影響，但在第二季度，OPENLANE 的市場銷量仍增長了7%，如果沒有這些攻擊，我們的銷量同比增長將約為9% 。我們的商品總價值也增加了 6%，達到近 70 億美元。

This marks the fifth consecutive quarter with year-on-year growth in the marketplace segment. And similar to the first quarter, this volume growth was again driven primarily by our US marketplace. Our OPENLANE branded marketplace has been live for just over a year in Canada and approximately eight months in the US and Europe.

這標誌著該市場領域連續第五個季度實現同比增長。與第一季類似，銷售成長再次主要由我們的美國市場推動。我們的 OPENLANE 品牌市場在加拿大上線僅一年多，在美國和歐洲上線約八個月。

The positive feedback we continue to receive and the results we are delivering in the months since that launch give me increased confidence in the strength of our platform, and that confidence is fueling increased investments in both technology and people that I will discuss later in my remarks. In terms of commercial off-lease volumes, OPENLANE remains a clear market leader and our commercial and off-lease volumes are up meaningfully in both the United States and Canada during the quarter.

自發布以來的幾個月裡，我們不斷收到的積極反饋以及我們所交付的成果讓我對我們平台的實力更加有信心，這種信心正在推動對技術和人員的投資增加，我將在稍後的發言中討論這一點。就商業租賃量而言，OPENLANE 仍然是明顯的市場領導者，本季我們在美國和加拿大的商業和租賃量均大幅成長。

We increased commercial vehicles offered for sale and also unique buyers who purchased that off-lease inventory during the quarter. This is exactly the network effect we aimed for when consolidating our commercial and dealer marketplaces into OPENLANE.

我們增加了待售的商用車以及在本季購買了租賃結束庫存的獨特買家。這正是我們將商業和經銷商市場整合到 OPENLANE 時所追求的網路效應。

As I mentioned last quarter, commercial off-lease supply remains well below pre-pandemic levels and will likely remain under pressure over the next several quarters given the low level of leases written in 2021 and 2022, however, we are seeing the off-lease equity gap continue to narrow. This results in a higher percentage of maturing off-lease vehicles being returned by lessees and a lower percentage of those vehicles being purchased by the grounding dealer.

正如我上季度提到的，商業租賃供應仍遠低於大流行前的水平，並且鑑於2021 年和2022 年簽訂的租賃水平較低，未來幾個季度可能仍將面臨壓力，但是，我們看到租賃到期股本差距持續縮小。這導致承租人返還到期租賃車輛的比例較高，而停飛經銷商購買的車輛比例較低。

To the extent that this trend continues, it will result in a higher percentage of off-lease maturities entering the remarketing funnels and flowing deeper into the funnel, both of which are positive for OPENLANE. Also, new vehicle sales continue to increase and the volume of new lease originations increased for the fifth straight quarter.

如果這種趨勢持續下去，將導致更高比例的租賃到期進入再行銷管道並更深入地流入管道，這兩者對 OPENLANE 都是有利的。此外，新車銷售持續成長，新租賃量連續第五個季度增加。

OPENLANE will be the primary and earliest beneficiary of these future volumes as those leases mature. And then finally, many of our commercial customers have expressed a desire to continue selling more and more of their inventory online. So we're leveraging our deep data insights and technology to design new programs that support this trend and a more digital future for our customers.

隨著這些租約的到期，OPENLANE 將成為這些未來銷售的主要和最早的受益者。最後，我們的許多商業客戶都表示希望繼續在線上銷售越來越多的庫存。因此，我們正在利用深入的數據洞察和技術來設計新計劃，以支持這一趨勢並為我們的客戶打造更數位化的未來。

Switching to dealer volumes I am equally optimistic about our opportunities for growth in this segment. There remains a large addressable market, particularly with dealers still using physical auctions or wholesalers.

轉向經銷商數量，我對我們在這一領域的成長機會同樣樂觀。仍然存在一個巨大的潛在市場，特別是對於仍在使用實體拍賣或批發商的經銷商。

Our platform is faster, easier and more convenient. It has significantly lower cost of sale and generates better outcomes, and it provides buyers and sellers access to a national dealer base that we continue to expand. Similar to the first quarter total wholesale industry, dealer volumes declined in the US and to an even greater degree in Canada. OPENLANE's dealer volumes aligned with those trends.

我們的平台更快、更簡單、更方便。它顯著降低了銷售成本並產生了更好的結果，並為買家和賣家提供了進入我們不斷擴大的全國經銷商基地的機會。與第一季批發業總量類似，美國的經銷商數量下降，加拿大的下降幅度更大。OPENLANE 的經銷商數量與這些趨勢一致。

However, I was pleased to see that the year-over-year gap narrowed as the quarter progressed, and I'm optimistic for the second half of this year. Many of the market fundamentals that drive dealer volumes are also improving.

然而，我很高興看到隨著本季的進展，同比差距縮小，我對今年下半年持樂觀態度。許多推動經銷商銷售的市場基本面也在改善。

New vehicle inventory is returning to pre-pandemic levels. Wholesale prices are declining and this is improving vehicle affordability for consumers. Those factors should contribute to increased trade-ins and more used vehicle transactions, which would be very positive for OPENLANE. So, in summary, OPENLANE is well positioned with both commercial and dealer customers. The market fundamentals are trending in our favor and there's growing evidence that having all of the buyers, all of the sellers, and all of the cars all in one place creates a more active and vibrant marketplace.

新車庫存正在恢復到疫情前的水準。批發價格正在下降，提高了消費者的汽車負擔能力。這些因素應該有助於增加以舊換新和更多二手車交易，這對 OPENLANE 來說非常有利。因此，總而言之，OPENLANE 在商業和經銷商客戶中都處於有利地位。市場基本面趨勢對我們有利，越來越多的證據表明，將所有買家、所有賣家和所有汽車集中在一個地方會創造一個更活躍和充滿活力的市場。

Shifting to the opportunities enabled by our asset-light digital model. I also believe we're accelerating growth through our differentiated core technology and our deep pipeline of innovation. Let me give you a few examples. I'll start with vehicle inspections. Last quarter, we announced our Visual Boost AI technology that provides buyers access to an AI powered inspection visualization on every dealer vehicle listed in our marketplace.

轉向輕資產數位模型帶來的機會。我還相信，我們正在透過差異化的核心技術和深厚的創新管道加速成長。讓我舉幾個例子。我將從車輛檢查開始。上個季度，我們宣布了 Visual Boost AI 技術，該技術使買家能夠對我們市場上列出的每輛經銷商車輛進行人工智慧驅動的檢查視覺化。

This quarter, we are enhancing our differentiated inspection capabilities with the release of Code Boost IQ. Code Boost IQ aggregates over a million OBD-II scans that we've captured through our data rich service network and follows those codes through pre and post transaction.

本季度，我們透過發布 Code Boost IQ 來增強我們的差異化偵測能力。Code Boost IQ 聚合了我們透過資料豐富的服務網路擷取的超過一百萬次 OBD-II 掃描，並在交易前和交易後追蹤這些代碼。

This allows us to accurately predict, which codes indicate the highest probability of issues or repairs of which codes may lead to an arbitration. We did then simplify that intelligence into easy-to-understand alert banners at the top of each inspection report, which helps buyers make faster and better informed bidding and buying decisions. So, between Visual Boost AI and Code Boost IQ, we are providing comprehensive, industry leading conditioned data on every dealer vehicle, inside and out.

這使我們能夠準確預測哪些程式碼表明出現問題的可能性最高，或修復哪些程式碼可能導致仲裁。然後，我們將這些情報簡化為每個檢查報告頂部易於理解的警報橫幅，這有助於買家更快、更明智地做出投標和購買決策。因此，透過 Visual Boost AI 和 Code Boost IQ，我們為每輛經銷商車輛的內部和外部提供全面、業界領先的條件資料。

Next, I'd also like to provide you with a brief update on our Absolute Sale feature in the US marketplace. As discussed on the last call, Absolute Sale allows sellers to easily indicate their full commitment to selling a vehicle. It significantly increases buyer engagement, generates better price outcomes and increases the velocity of sale. Dealer adoption continues to grow and Absolute Sale represents a growing share of OPENLANE's overall marketplace transactions in the United States.

接下來，我也想向您簡單介紹我們在美國市場的 Absolute Sale 功能。正如上次電話會議中所討論的，絕對銷售允許賣家輕鬆表明他們對銷售車輛的完全承諾。它顯著提高了買家的參與度，產生更好的價格結果並提高了銷售速度。經銷商採用率持續成長，Absolute Sale 在美國 OPENLANE 整體市場交易中所佔份額不斷增長。

Building on that momentum, last week we launched Automated Absolute Sale. This major enhancement allows sellers to set and forget Absolute Sale triggers right at the time of listing the vehicle and lets our technology do the rest and finalize the sale. Our Absolute Sale success metrics are improving week by week, and we look forward to sharing additional detail on this and our other emerging innovations over the months to come.

在此勢頭的基礎上，上週我們推出了自動絕對銷售。這項重大增強功能允許賣家在列出車輛時設定並忘記絕對銷售觸發器，並讓我們的技術完成剩下的工作並最終完成銷售。我們的絕對銷售成功指標每週都在改善，我們期待在未來幾個月分享有關此項目和其他新興創新的更多細節。

And then finally, let me turn to our third growth driver, improving the customer experience. During the quarter, we comprehensively remapped many of the customer journeys, identifying hundreds of customer touch points from awareness, to registration, to transaction and post-sale activities.

最後，讓我談談我們的第三個成長動力，即改善客戶體驗。在本季度，我們全面重新繪製了許多客戶旅程，並確定了從認知到註冊、交易和售後活動的數百個客戶接觸點。

The opportunities identified are being prioritized and operationalized in the business. For example, with tens of thousands of dealer and off lease exclusive listings together on OPENLANE, we are making it faster and easier for dealers to find the right cars for their lots.

所識別的機會正在被優先考慮並在業務中實施。例如，透過 OPENLANE 上數以萬計的經銷商和停租獨家清單，我們使經銷商能夠更快、更輕鬆地找到適合其批次的汽車。

Through customer interviews, our own marketplace data and agile product development, we completely redesigned our marketplace search functionality during the second quarter. And these new filters and capabilities are already receiving positive feedback from our customers. This is just one example from our broad portfolio of CS initiatives that I believe will help make OPENLANE the most preferred platform for buyers and sellers.

透過客戶訪談、我們自己的市場數據和敏捷產品開發，我們在第二季完全重新設計了我們的市場搜尋功能。這些新的過濾器和功能已經收到了我們客戶的正面回饋。這只是我們廣泛的客戶服務計劃組合中的一個例子，我相信這些計劃將有助於使 OPENLANE 成為買家和賣家最喜歡的平台。

So together, our commercial and dealer segment positioning, our speed to innovation, and our focus on the customer experience are differentiating OPENLANE from our competition and driving meaningful, scalable growth. In the second quarter, our marketplace volume increased by 24,000 vehicles versus the prior year, or 7%, and this helped drive the meaningful marketplace adjusted EBITDA contribution.

因此，我們的商業和經銷商細分市場定位、創新速度以及對客戶體驗的關注使 OPENLANE 從競爭對手中脫穎而出，並推動有意義的、可擴展的成長。第二季度，我們的市場銷售量比前一年增加了 24,000 輛，即 7%，這有助於推動市場調整後 EBITDA 的貢獻。

As I mentioned earlier, these results give me a lot of optimism and confidence in our future, and with that confidence, we are doubling down on our strategy and our investments.

正如我之前提到的，這些結果讓我對我們的未來充滿樂觀和信心，帶著這種信心，我們正在加倍我們的策略和投資。

During the quarter, we began executing a multichannel plan to further accelerate growth. We are funneling additional SG&A savings into technology investments across our platform, new products and features, and greater ease of use for our customers. And because we know this remains a relationship business, we're also investing in our customer facing team.

本季度，我們開始執行多通路計畫以進一步加速成長。我們正在將額外的銷售、行政管理費用節省用於整個平台的技術投資、新產品和功能以及為客戶提供更高的易用性。因為我們知道這仍然是一個關係業務，所以我們也在投資面向客戶的團隊。

During the quarter, we made significant investments in staffing and resources, hiring new sales leaders into underserved markets and supplementing teams in existing markets where we see opportunities to gain share. And we've already started to see some early wins here in the third quarter.

本季度，我們在人員和資源方面進行了大量投資，在服務不足的市場聘請新的銷售領導者，並在我們認為有機會獲得份額的現有市場中補充團隊。我們已經開始在第三季看到一些早期的勝利。

Before I hand it over to Brad, I want to reinforce that OPENLANE is gaining positive momentum. I believe we have only scratched the surface of what this company is capable of delivering and our key strengths in terms of our value proposition for investors and our ability to deliver stockholder value remain compelling.

在將其交給 Brad 之前，我想強調 OPENLANE 正在獲得積極的勢頭。我相信我們只是觸及了這家公司能夠提供的服務的表面，我們在為投資者提供價值主張和為股東提供價值的能力方面的主要優勢仍然引人注目。

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're well positioned to capture the opportunities to grow both dealer and commercial volumes.

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, which I now believe to be part of the fabric and culture of this company, gives us the financial headroom to invest in innovation without sacrificing financial results.

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，我現在相信這是這家公司結構和文化的一部分，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。

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 into our operational and financial metrics for the quarter. Brad?

這樣，我將把它交給布拉德，以便更深入地討論我們本季的營運和財務指標。布拉德？

Thank you, Peter. We are certainly very pleased with our second quarter results, especially the continued improvement in our Marketplace segment.

謝謝你，彼得。我們對第二季的業績當然非常滿意，特別是我們的市場部門的持續改善。

As usual, certain comments I make related to consolidated OPENLANE and the Marketplace segment are on a net revenue basis, which excludes the impact of purchased vehicles. In addition, my comments will be on a second quarter year-over-year basis unless I state otherwise.

像往常一樣，我對合併後的 OPENLANE 和市場部門發表的某些評論是基於淨收入的基礎上的，其中不包括購買車輛的影響。此外，除非我另有說明，我的評論將基於第二季的同比情況。

Our consolidated revenue was $432 million, up 4%, mainly driven by the 7% unit volume growth in our Marketplace segment.

我們的綜合收入為 4.32 億美元，成長 4%，主要是由於我們的市場部門銷售成長 7%。

In our results, you will see our net revenue was down 1%. As we continue to realize the impact from the transportation accounting change we made in the fourth quarter of last year. This change impacted net revenue by $21 million in the quarter.

在我們的結果中，您會看到我們的淨收入下降了 1%。隨著我們繼續意識到去年第四季運輸會計變更的影響。這項變更對該季度的淨收入造成了 2,100 萬美元的影響。

Total cost of services was $246 million, up 10%. And gross profit was 186 million, down 4%.

服務總成本為 2.46 億美元，成長 10%。毛利為1.86億元，下降4%。

Higher auction and service volumes as well as higher pricing were more than offset by a charge of $12 million related to the newly enacted Canadian digital services tax. Excluding this tax, gross profit would have been up approximately 2%.

與新頒布的加拿大數位服務稅相關的 1,200 萬美元費用足以抵消更高的拍賣和服務量以及更高的定價。扣除此項稅項後，毛利將成長約 2%。

As further background, at the end of the quarter, the Canadian Government implemented a 3% DST which applies to digital based revenues. This became effective at the end of the second quarter and is applied retroactively to January 1, 2022. As a result of this new tax, we recorded a charge of $12 million in the quarter. Of this $12 million, approximately $10 million relates to 2022 and 2023, and approximately $2 million relates to 2024.

作為進一步的背景，在本季末，加拿大政府對基於數位的收入實施了 3% 的 DST。該規定於第二季末生效，並追溯至2022年1月1日。由於這項新稅收，我們在本季記錄了 1,200 萬美元的費用。在這 1,200 萬美元中，約 1,000 萬美元涉及 2022 年和 2023 年，約 200 萬美元涉及 2024 年。

Assuming no changes to this legislation, including the scope of its application, we estimate the ongoing annual cost related to this tax will be $5 million per year. However, we are planning to implement actions to mitigate this impact and therefore we do not expect a significant impact on future year’s earnings and cash flow.

假設這項立法（包括其適用範圍）沒有變化，我們估計與這項稅收相關的持續年度成本將為每年 500 萬美元。然而，我們計劃採取行動減輕這種影響，因此我們預計不會對未來一年的收益和現金流產生重大影響。

Consolidated SG&A in the quarter was $106 million, which was down 5%, reflecting the successful execution of our cost savings initiatives. The decline in SG&A was primarily a result of decreases in compensation and compensation related expenses.

本季的綜合 SG&A 為 1.06 億美元，下降 5%，反映出我們成功執行了成本節約計畫。SG&A 的下降主要是由於薪酬和薪酬相關費用的減少。

Our relatively flat SG&A for the last several quarters not only reflects the impact of our cost savings initiatives, but also illustrates the fixed cost nature of our SG&A. This is an important scalability feature of our asset-light digital model. For the balance of 2024, we expect our SG&A spend to remain at similar levels.

過去幾季我們相對持平的銷售及管理費用不僅反映了我們成本節約計畫的影響，而且還說明了我們銷售及管理費用的固定成本性質。這是我們輕資產數位模型的一個重要的可擴展性特徵。對於 2024 年剩餘時間，我們預計 SG&A 支出將維持在類似水準。

As you will note, in our earnings release, adjusted EBITDA was $71 million, which was negatively impacted by the $2 million current year portion of the DST charge.

正如您將注意到的，在我們的收益報告中，調整後的 EBITDA 為 7,100 萬美元，受到當年 DST 費用 200 萬美元部分的負面影響。

Turnings in the Marketplace segment revenue increased 5% to $336 million.

市場部門的營業收入成長了 5%，達到 3.36 億美元。

Our total volumes were up 7%, primarily driven by our US business. Our dealer volumes declined, primarily driven by our Canadian business for similar reasons discussed during our first quarter call.

我們的總銷量成長了 7%，這主要是由我們的美國業務推動的。我們的經銷商數量下降，主要是由我們的加拿大業務推動的，原因與我們在第一季電話會議中討論的類似原因。

Auction fee revenue increased by 5%, driven primarily by the volume growth.

拍賣費收入成長 5%，主要是因為成交量成長。

Reported services revenue was down 6%, once again primarily due to the transportation accounting change mentioned in my earlier remarks and also highlighted in our last two calls. Excluding this accounting change, services revenue was up 9%, driven by inspection, repossession and reconditioning services. This is the result of our ongoing focus to drive greater attachment of our services to our marketplace offering.

報告的服務收入下降了 6%，這再次主要是由於我之前的演講中提到的運輸會計變化，以及我們最近兩次電話會議中強調的運輸會計變化。排除此會計變化，在檢查、收回和整修服務的推動下，服務收入增加了 9%。這是我們持續致力於推動我們的服務與我們的市場產品更加緊密結合的結果。

Marketplace adjusted EBITDA was $33 million and would be $35 million, excluding the impact of the $2 million current year portion of the Canadian DST charge. This represents an increase of approximately 48% year-over-year. When we exclude the impact of this tax item and the prior year $20 million gain that arose from early contract termination.

市場調整後的 EBITDA 為 3,300 萬美元，不包括加拿大 DST 費用中本年度 200 萬美元部分的影響，預計為 3,500 萬美元。這意味著同比增長約 48%。當我們排除該稅項的影響以及上一年因提前終止合約而產生的 2000 萬美元收益。

Marketplace SG&A was down 5%, driven by the factors mentioned earlier.

在前面提到的因素的推動下，市場 SG&A 下降了 5%。

Once again, we are very pleased with the overall performance of our Marketplace business. We are committed to prioritizing investment in our one Marketplace solution, including key investments in industry leading product innovations and go-to-market initiatives. These investments will make wholesale easier for our customers, which enables us to capture volume growth and enhance the scalability of our margins.

我們再次對市場業務的整體表現感到非常滿意。我們致力於優先投資於我們的單一市場解決方案，包括對行業領先的產品創新和上市計劃的關鍵投資。這些投資將使我們的客戶更容易進行批發，使我們能夠實現銷售成長並提高利潤的可擴展性。

Turning to our Finance segment, loan transaction units in the quarter were up 3%. Revenues for the quarter were down 2%, primarily driven by lower interest income resulting from lower vehicle values within the portfolio. These two factors were also the primary driver of our Finance segment adjusted EBITDA result of $39 million, down 4%.

談到我們的金融部門，本季的貸款交易量增加了 3%。本季營收下降 2%，主要是由於投資組合中車輛價值下降導致利息收入下降。這兩個因素也是我們金融部門調整後 EBITDA 績效下降 4% 至 3,900 萬美元的主要推動因素。

The provision for credit losses was 2.1% which was improved versus last quarter. As I have indicated previously, we are encouraged by ongoing improvements we are seeing in the severity of losses. This is the combined result of stabilizing fundamentals and our disciplined risk management actions.

信貸損失撥備為2.1%，較上季有所改善。正如我之前所指出的，我們對損失嚴重程度的持續改善感到鼓舞。這是穩定基本面和我們嚴格的風險管理行動的綜合結果。

We expect the loan loss rate for the second half of the year to be in-line with the first half of the year.

我們預計下半年貸款損失率將與上半年持平。

To reiterate, we continue to target a long-term loss rate of 1.5% to 2% and overall we remain pleased with AFC's financial performance and cash flow generation.

重申一下，我們繼續將長期虧損率目標定為 1.5% 至 2%，總體而言，我們對 AFC 的財務表現和現金流量產生仍然感到滿意。

Moving to the balance sheet and capital allocation, consistent with prior quarters, we continue to generate strong cash flow. Year-to-date, we have generated $138 million of cash flow from operations and our consolidated leverage stands at approximately one times adjusted EBITDA. This level of cash generation demonstrates the value of our asset light, digitally focused marketplace business working in combination with our leading floorplan 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。今年迄今為止，我們已從營運中產生了 1.38 億美元的現金流，我們的綜合槓桿約為調整後 EBITDA 的一倍。這種現金產生水準證明了我們輕資產、以數字為重點的市場業務與我們領先的平面金融業務相結合的價值。

Overall, our capital allocation priorities remain unchanged. We continue to prioritize the funding of organic investments, while ensuring flexibility for high return, complementary, strategic opportunities and shareholder returns.

整體而言，我們的資本配置重點保持不變。我們繼續優先考慮有機投資的融資，同時確保高回報、互補性策略機會和股東回報的靈活性。

At the end of the quarter, we continue to have $125 million remaining on our share repurchase authorization. As discussed in the last call, we have a $210 million senior note maturing in June of 2025 and we intend to use cash flow from operations along with our strong liquidity position to fund this maturity.

截至本季末，我們的股票回購授權仍剩餘 1.25 億美元。正如上次電話會議中所討論的，我們有一張 2.1 億美元的優先票據將於 2025 年 6 月到期，我們打算利用營運現金流以及我們強大的流動性頭寸為該到期融資。

Wrapping up on guidance, there’s no change to our adjusted EBITDA guidance of $285 million to $305 million and no change to our operating adjusted EPS of $0.77 to $0.87 per share. We have updated our 2024 GAAP EPS and income from continuing operations guidance to reflect the impact of the Canadian DST discussed earlier. These updates are reflected in our earnings release issued earlier today.

總結指導意見，調整後的 EBITDA 指引為 2.85 億美元至 3.05 億美元，調整後的經營每股收益為 0.77 美元至 0.87 美元，沒有變動。我們更新了 2024 年 GAAP 每股盈餘和持續經營收入指南，以反映先前討論的加拿大 DST 的影響。這些更新反映在我們今天稍早發布的財報中。

To summarize, we remain pleased with the business and financial performance. We generated $138 million of cash flow from operations through six months. Our marketplace volumes grew 7%. Our marketplace adjusted EBITDA would have grown by approximately 48%, if we exclude the current year DST charge and the prior year contract early termination gain discussed earlier, our credit loss rate is gradually beginning to moderate.

總而言之，我們對業務和財務表現仍然感到滿意。六個月內，我們的營運產生了 1.38 億美元的現金流。我們的市場交易量成長了 7%。如果我們排除當年的 DST 費用和前面討論的上一年合約提前終止收益，我們的市場調整後 EBITDA 將增長約 48%，我們的信用損失率正逐漸開始放緩。

And finally, the actions we have taken to consolidate our digital marketplace offerings to unify our brand to OPENLANE, and to successfully launch new product innovations gives us strong confidence in the future.

最後，我們為整合數位市場產品、將我們的品牌統一到 OPENLANE 以及成功推出新產品創新所採取的行動，讓我們對未來充滿信心。

With that, I will 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。

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。（操作員說明）

Craig Kennison, Baird.

克雷格·肯尼森，貝爾德。

Hey, good afternoon. Thanks for taking my questions. I wanted to start with the dealer volume. If I add the CDK volume that you mentioned, 6,000 units, it looks like that business would have been closer to flat. Is that keeping pace with your digital competitors in that market and the broader wholesale dealer channel?

嘿，下午好。感謝您回答我的問題。我想從經銷商數量開始。如果我加上您提到的 CDK 數量（6,000 單位），看起來該業務將接近持平。這是否與您在該市場和更廣泛的批發經銷商通路中的數位競爭對手保持同步？

Yeah. Thanks, Craig. Appreciate the question. So as I mentioned, dealer volumes were down in the quarter, but most of that was Canada. So if you – first of all, I’d say the 6,000 units wasn’t all dealer, was a mix of commercial and dealer. So I would assume a similar mix to our sales overall because volumes on the commercial side were also impacted by dealers that couldn’t turn in cars and couldn’t purchase cars. So maybe a 50/50 split on that volume.

是的。謝謝，克雷格。感謝這個問題。正如我所提到的，本季經銷商數量有所下降，但其中大部分是加拿大。因此，如果你——首先，我會說這 6,000 個單位並不全是經銷商，而是商業和經銷商的混合體。因此，我假設我們的整體銷售情況類似，因為商業方面的銷售也受到無法交出汽車和無法購買汽車的經銷商的影響。因此，該磁碟區上可能會以 50/50 分配。

If we look at the decline, the decline was principally in Canada. We obviously check other sources to see what volumes are. Our understanding based on the data I’m looking at is that dealer volumes at physical auction in the United States were down in the first and second quarters of the year, and that in comparison, our volumes slightly outperformed the physical auction volumes. So I don’t think it’s a loss of share. I think we had a slight gain of share even though our volumes in the quarter were down.

如果我們看一下下降情況，就會發現下降主要發生在加拿大。我們顯然會檢查其他來源以了解數量是多少。根據我正在查看的數據，我們的理解是，今年第一季和第二季美國實體拍賣的經銷商交易量有所下降，相較之下，我們的交易量略高於實體拍賣的交易量。所以我認為這並不是份額的損失。我認為，儘管我們本季度的銷量有所下降，但我們的份額略有增加。

But you’re right, Craig, CDK had an impact, a small impact. And then I mentioned in the quarter, we saw an improving trend as the quarter went on. So I feel more optimistic about the trend line in the second half of the year that this will be back in sort of year-over-year growth territory.

但你是對的，克雷格，CDK 產生了影響，很小的影響。然後我在本季提到，隨著本季的持續，我們看到了改善的趨勢。因此，我對下半年的趨勢線感到更加樂觀，因為這將回到同比成長區域。

So anyway, we will watch and see that. I guess beyond that, Craig, I’ll say, we obviously spend a lot of time talking to our dealer customers. I’m very pleased by the feedback we’re getting from our customers about the strength of our offering. Selling their cars quickly, selling their cars at excellent price outcomes. You’ll see our GMV in the quarter was up 6%. So values are strong in our marketplaces as well, and obviously, having a strong differentiated offering in the marketplace.

所以無論如何，我們都會觀察並看到這一點。我想除此之外，克雷格，我會說，我們顯然花了很多時間與經銷商客戶交談。我對客戶對我們產品實力的回饋感到非常高興。快速銷售他們的汽車，以優異的價格銷售他們的汽車。您會看到我們本季的 GMV 成長了 6%。因此，我們的市場價值也很強大，而且顯然，在市場上擁有強大的差異化產品。

So I’m very pleased by the feedback we’re getting from our customers. And this is an area we’re very focused on investing into. And again, I mentioned in my remarks how we have put some increased go-to-market resources in the field late in the second quarter, feeling good about that. We’re already seeing some traction there, too.

因此，我對從客戶那裡得到的回饋感到非常高興。這是我們非常注重投資的領域。我在發言中再次提到，我們如何在第二季末在該領域投入了一些更多的上市資源，對此感覺良好。我們也已經看到了一些吸引力。

Thanks Peter. And then you have a good message with some of the technology innovations. I’m curious if you feel like you’re getting that message out to dealers or if you need to target more marketing dollars to that effort, so they see what you’re doing with Visual Boost or Code Boost [ph].

謝謝彼得。然後你會得到一些關於一些技術創新的好消息。我很好奇您是否覺得自己正在向經銷商傳達這一訊息，或者您是否需要為此投入更多行銷資金，以便他們看到您使用 Visual Boost 或 Code Boost 所做的事情[ph]。

Yeah. Good question. I think, Craig, I think there is – sometimes, I think we’re sort of misunderstood in terms of the strength of our technology, that there’s a gap there between what we offer and what say analysts or investors or sometimes customers might understand. So that is something we are investing in.

是的。好問題。我認為，克雷格，我認為，有時，我認為我們在技術實力方面被誤解了，我們提供的產品與分析師或投資者或分析師或投資者所說的之間存在差距。會理解。這就是我們正在投資的東西。

When we roll out these launches, we’re training our sales team. We’re obviously preparing the go-to-market materials to support this. And if you spend any time on openlane.com, you’ll see a bunch of dealer testimonials that speak to the power of these offerings and what they do for those dealers. So it’s an area we’re focused on. You may have seen we ran a dealer appreciation event in the month of July, DealerFest.

當我們推出這些產品時，我們正在培訓我們的銷售團隊。顯然，我們正在準備上市材料來支持這一點。如果您花時間造訪 openlane.com，您會看到一堆經銷商評價，這些評價講述了這些產品的力量以及它們為這些經銷商所做的事情。所以這是我們關注的一個領域。您可能已經看到我們在 7 月舉辦了經銷商感謝活動 DealerFest。

And again, that was kind of our way of saying thank you to our customers, appreciation of their business, but also educate them on some of the great new things that we’ve brought to market over the last six months. And we plan to bring the market between now and the end of the year. So it’s an area we’re very focused on. And I think it’s going to be an area of increasing strength for our business, Craig, as we consolidate platforms, speed innovation, et cetera. I think you’ll see more to come from us in this dimension.

再說一遍，這是我們向客戶表示感謝、讚賞他們的業務的一種方式，同時也向他們介紹了我們在過去六個月中推向市場的一些偉大的新產品。我們計劃從現在到年底將市場推向市場。所以這是我們非常關注的領域。克雷格，我認為隨著我們整合平台、加速創新等，這將成為我們業務實力不斷增強的領域。我想您會看到我們在這個維度上做出的更多貢獻。

Great. Thank you.

偉大的。謝謝。

Thanks, Craig.

謝謝，克雷格。

Bob Labick, CJS Securities.

拉比克 (Bob Labick)，CJS 證券公司。

Good afternoon. Thanks for taking our questions.

午安.感謝您回答我們的問題。

Hey, Bob.

嘿，鮑伯。

Hey, Bob.

嘿，鮑伯。

Hi, I wanted to start on the off-lease side. And Peter, you alluded in your remarks, but maybe, I was hoping you could go a little deeper. Could you give us a sense of the mix of off-lease right now in terms of where it’s going, in terms of owner retained, dealer retained, closed, open auction, and really just where are we in the kind of normalization process, and how do you see it progressing?

嗨，我想從租約結束的方面開始。彼得，你在演講中提到了，但也許，我希望你能更深入一點。您能否讓我們了解目前租約到期的情況，包括業主保留、經銷商保留、關閉、公開拍賣，以及我們處於正常化狀態的具體情況過程，您認為進展如何？

Yeah, great. Good question, Bob. Thanks. Thank you for that. First of all, I’m very pleased with commercial volume growth. I don’t know if I spoke to it directly, but our commercial volumes were up 21% in the quarter on a year-on-year basis. So again, I think that’s very strong volume trends there on commercial. I feel good about that.

是的，太棒了。好問題，鮑伯。謝謝。謝謝你。首先，我對商業銷售的成長感到非常滿意。我不知道我是否直接與之交談過，但本季我們的商業銷量年增了 21%。再說一遍，我認為商業廣告的銷售趨勢非常強勁。我對此感覺很好。

I believe that’s now five consecutive quarters of commercial volume growth. So I think clearly indicates we’ve come off the bottom and commercial volume growth have been a source of strength here over the past five quarters or more. So in terms of what we’re seeing, we’re seeing a higher percentage of off-lease vehicles, a higher percentage of the portfolio that’s maturing being returned. So a lower percentage being purchased by the consumer, okay?

我相信這已經是商業銷售連續五個季度成長。因此，我認為這清楚地表明我們已經走出谷底，商業銷售的成長在過去五個季度或更長時間內一直是這裡的力量來源。因此，就我們所看到的情況而言，我們看到終止租賃車輛的比例更高，即將到期的投資組合中歸還的比例更高。所以消費者購買的比例較低，好嗎？

So that, that equity gap, the extent to these – the extent to which these off-lease vehicles are in equity at the end of the lease that is declining, although it’s been a slow decline, Bob, but it’s a continued erosion of that. And as that erodes, I think two things happen. One, the consumer – fewer consumers buy out their lease, so more of them get returned. That’s positive for us.

因此，股權缺口，這些程度——這些租賃結束時車輛的股權在租賃結束時的程度正在下降，儘管這是一個緩慢的下降，鮑勃，但它——這是對其的持續侵蝕。隨著這種情況的消失，我認為會發生兩件事。第一，消費者－買斷租約的消費者越來越少，因此有更多的人被歸還。這對我們來說是積極的。

And secondly, fewer grounding dealers purchase the vehicles because a lot of these grounding dealers have the same sort of equity opportunity that the consumer has. So that percentage declines and these cars then flow deeper into our funnel. So we’re seeing that continue to play out. It’s been fairly gradual, I’d say, over the last few quarters, but it continues.

其次，購買車輛的停飛經銷商越來越少，因為許多停飛經銷商擁有與消費者相同的股權機會。因此，這個百分比會下降，然後這些汽車會更深入地進入我們的頻道。所以我們看到這種情況繼續發生。我想說，在過去的幾個季度裡，這種情況是相當漸進的，但這種情況仍在繼續。

A number of customers are predicting that it could accelerate in the coming quarters based on residual values in their portfolio, et cetera. But I think I’m taking a wait and see approach to see how that trends. But it’s something that gives me confidence that even though there’s fewer off-lease maturities at the top of the funnel, our commercial volumes will – that decline will be offset by an increased percentage of those vehicles that get returned.

許多客戶預測，根據其投資組合的剩餘價值等，未來幾季可能會加速成長。但我認為我正在採取觀望態度來看看這種趨勢如何。但這讓我有信心，即使漏斗頂部的租賃到期日減少，我們的商業銷量也會下降——這種下降將被獲得許可的車輛比例的增加所抵消。

And I think our business will continue to perform through the period. So that’s the expectation we obviously have to take each month as it comes. But so far, we’re now in that period where there’s lower off-lease maturities, but we’re still seeing year-on-year commercial volume growth. So I feel good about that.

我認為我們的業務在此期間將繼續表現良好。因此，這顯然是我們每個月都必須接受的期望。但到目前為止，我們正處於租賃期限較低的時期，但我們仍然看到商業銷量較去年同期成長。所以我對此感覺很好。

Okay, super. Very helpful color. And then just, I mean, you talked about the Canadian dealer market a little bit before, I think is it back in December, you made an acquisition of Manheim Canada. Can you talk about the progress on that integration? I thought there was potentially an opportunity for sale of a facility or something like that. I don’t know if that’s still in the works or how that integrations progressing.

好吧，超級。非常有用的顏色。然後，我的意思是，您之前談到了加拿大經銷商市場，我想是在 12 月份，您收購了 Manheim Canada。能談談整合的進展嗎？我認為可能有出售設施或類似物品的機會。我不知道這是否仍在進行中，也不知道整合進展如何。

Yeah, of course. Before I go there, let me just add one more comment on your last question, which I think is really important. We’re also seeing significant increases in new vehicle lease originations. I know I’ve talked about that on prior calls, but lease originations dropped in 2021 and 2022, but they've been increasing in 2023 and 2024.

是的，當然。在我開始之前，讓我對你的最後一個問題再補充一點評論，我認為這非常重要。我們也看到新車租賃量顯著增加。我知道我在之前的電話中已經談到過這一點，但租賃發放量在 2021 年和 2022 年有所下降，但在 2023 年和 2024 年一直在增加。

I think five consecutive quarters of lease origination increases. That, again, is very positive. Again, we're going to have to look out maybe another 18 months till that starts to really flow through our business, but that will be very positive for us and very confident of that.

我認為租賃起始量連續五個季度增加。這又是非常積極的。再說一遍，我們可能還需要 18 個月的時間，直到這開始真正貫穿我們的業務，但這對我們來說將是非常積極的，我們對此非常有信心。

So, going to Canada, very pleased with the acquisition. So we've made the acquisition. We've consolidated the operations in all five metro areas. So in the city of Toronto, for example, there had been two auction properties, one owned by us, one owned by our competitor. Now that volume is consolidated into one, so we're getting greater scalability, greater leverage out of these facilities.

所以，去加拿大時，我對這項收購感到非常滿意。所以我們完成了收購。我們已經整合了所有五個都會區的業務。例如，在多倫多市，有兩處拍賣房產，一處歸我們所有，一處歸我們的競爭對手所有。現在，該卷已合併為一卷，因此我們從這些設施中獲得了更大的可擴展性和更大的槓桿作用。

We're still running the auctions digitally, for the most part in Canada. Customer retention has been strong, particularly strong on the commercial side. So we have very good customer attention through the acquisition. And we're seeing, obviously, in addition to that sort of retention of acquired customers, we're seeing some organic growth in commercial volumes in Canada as well.

我們仍然以數位方式進行拍賣，大部分是在加拿大。客戶保留率一直很高，尤其是在商業方面。所以我們透過收購獲得了很好的客戶關注。顯然，我們看到，除了保留已獲得的客戶之外，我們還看到加拿大商業量的有機成長。

So overall, it's, I think, a good story. We've had some challenges, as I've mentioned, on the dealer side in Canada, again, that improved over the course of the second quarter. I feel like we're entering the second half of the year much better position than we were in January. So I'm optimistic for a more positive trend line on the dealer side in Canada as well in the second half.

總的來說，我認為這是一個好故事。正如我所提到的，我們在加拿大經銷商方面再次遇到了一些挑戰，這些挑戰在第二季度有所改善。我覺得我們進入下半年的情況比一月好得多。因此，我對下半年加拿大經銷商的較正面趨勢線持樂觀態度。

Yeah. And, Bob, this is Brad here. Just to address the second part of your question regarding the real estate, we do continue to have an opportunity there to monetize some real estate that we acquired, as part of the transaction. It's really harmonizing our real estate play in a key market, and we have an active project underway to do that. Difficult for me to be able to provide any specifics on the timing and the amount of that, just given the process and where we're at in it, but it is an active project for us.

是的。鮑勃，這是布萊德。為了解決您關於房地產的問題的第二部分，作為交易的一部分，我們確實繼續有機會將我們收購的一些房地產貨幣化。這確實協調了我們在關鍵市場的房地產業務，我們正在進行一個積極的項目來實現這一目標。僅考慮到流程和我們所處的位置，我很難提供有關時間和金額的任何具體信息，但這對我們來說是一個活躍的項目。

Okay, super. Thanks so much.

好吧，超級。非常感謝。

Thank you, Bob.

謝謝你，鮑伯。

John Murphy, Bank of America.

約翰‧墨菲，美國銀行。

Good afternoon, guys. This is Billy Healey for John.

下午好，夥計們。這是約翰的比利·希利。

Hey, Billy.

嘿，比利。

So thanks for taking the questions. Just wanted to ask again a little bit more on the supply dynamic in the market right now. At least dealers we talked to are still calling out a challenge sourcing environment for used vehicles. And you guys were doing well in volumes, up 7%; another large player is up 33% year-over-year. So would you chalk this up to market share gains or you see more vehicles flowing into the auction channel or how do you think about that?

感謝您提出問題。只是想再次詢問更多有關目前市場供應動態的資訊。至少我們採訪過的經銷商仍在呼籲二手車的採購環境面臨挑戰。你們的銷量表現不錯，成長了 7%；另一家大型企業則較去年同期成長 33%。那麼您是否會將這歸因於市場份額的成長，或者您看到更多的車輛流入拍賣管道，或者您對此有何看法？

Well, Billy, good question. Even though volumes have been strong, I do agree that volumes in the industry are still below pre-pandemic levels. They're below what I would consider to be normal for our industry. And I think that's part of our growth equation, as those volumes return towards normal. I guess, when I look at that – divide the industry roughly into dealer and commercial, from a supply standpoint, dealer volumes, I'd say, are still below normal, but not massively below normal, maybe 15%, 20% below normal would be how I'd characterize it.

嗯，比利，好問題。儘管銷量一直很強勁，但我確實同意該行業的銷量仍低於大流行前的水平。它們低於我認為的我們行業的正常水平。我認為這是我們成長方程式的一部分，因為這些數量恢復正常。我想，當我看到這一點時，從供應的角度來看，將行業大致分為經銷商和商業，我想說，經銷商數量仍然低於正常水平，但並沒有大幅低於正常水平，可能是15%、20%低於正常水平是我對它的描述。

I think those volumes will improve, to the extent, dealers have more vehicles on their lot more new and used vehicle inventory. We've seen those trends generally heading upwards over the last 12 months. To the extent, the consumer affordability problem improves, I think that will increase vehicle trade-ins and wholesale volumes on the dealer side as well. So there's some positive opportunities there. I would expect them to sort of readjust gradually, Billy, be my view on that.

我認為這些數量將會增加，經銷商的新車和二手車庫存將增加。我們看到這些趨勢在過去 12 個月中總體呈上升趨勢。在某種程度上，消費者負擔能力問題得到改善，我認為這也會增加經銷商方面的汽車以舊換新和批發量。所以那裡有一些積極的機會。我希望他們能夠逐漸重新調整，比利，這是我的看法。

On the commercial side, it's a bit of a mixed bag. Repo volumes are quite strong relative to pre-pandemic. That's not a huge segment for us. What is a big segment for us is off lease. And as I've said on prior calls, off lease volumes are still about 50% below pre-pandemic levels. So I do see significant opportunity for commercial volume growth on the off lease segment. I do think we'll be really well positioned there. But again, Billy, as I've been very clear about in prior calls, we should be modest in our expectations over the next 18 months for – when we look at the cycle, the three year cycle of a leased vehicle, I think I've been very open on that. But I do then see – again, I think those volumes will be quite strong for us. And then I see acceleration coming after the end of 2025 and in the years to follow after that.

在商業方面，情況有點魚龍混雜。與疫情大流行前相比，回購交易量相當強勁。這對我們來說並不是一個很大的部分。對我們來說，重要的部分是租賃。正如我在之前的電話會議上所說，租賃量仍比疫情前水準低 50% 左右。因此，我確實看到了租賃市場商業量成長的巨大機會。我確實認為我們將在那裡處於有利位置。但是，比利，正如我在之前的電話中非常明確地表示的那樣，我們應該對未來 18 個月的預期保持適度——當我們考慮租賃車輛的三年周期時，我想我對此持非常開放的態度。但我確實再次看到，我認為這些銷量對我們來說將相當強勁。然後我看到 2025 年底之後以及之後的幾年將會加速。

Okay, super helpful. And just one more on the margins for the marketplace segment in the quarter. I mean, I know there's a lot of noise going on with the accounting change and tax in Canada and maybe some impact from CDK. But can you just talk to maybe your expectations on the trend going to the back half of the year? I mean, if just looking at the numbers down a bit sequentially and year-over-year on the gross margin, next purchase vehicles. So I want to get your thoughts on the back half of the year.

好的，超級有幫助。本季市場區隔市場的利潤率也只有一個。我的意思是，我知道加拿大的會計變更和稅收方面存在著許多噪音，也許還有 CDK 的一些影響。但您能否談談您對下半年趨勢的期望？我的意思是，如果只看毛利率連續和同比下降的數字，那麼下次購買車輛。所以我想了解你們對下半年的想法。

Yeah. Billy, Brad here. Thanks for the question. I think just to provide some added clarity on our margins in the quarter, certainly when you look at the gross profit margin in the quarter, that reflects the full impact of the $12 million charge that I highlighted in our early remarks. So would want to just highlight that to you. I think if you normalize for that, we would see fairly consistent margin performance, especially in the marketplace business sequentially and really kind of looking back over the last few quarters.

是的。比利，布拉德在這裡。謝謝你的提問。我認為只是為了更清楚地說明我們本季度的利潤率，當然，當您查看本季度的毛利率時，這反映了我在早期評論中強調的 1200 萬美元費用的全面影響。所以想向您強調這一點。我認為，如果你對此進行正常化，我們會看到相當一致的利潤率表現，尤其是在市場業務中，並回顧過去幾季。

So highlight that, on an adjusted EBITDA margin basis, you'll see in our adjusted EBITDA reconciliation that we did adjust out the out of period component of the $12 million charge, which was $10 million. So if you look at our adjusted EBITDA margins and then adjust for that smaller amount of $2 million in the current period, you would see that our margins, again on an adjusted EBITDA basis are fairly consistent sequentially.

因此請強調，在調整後的 EBITDA 利潤率基礎上，您會在我們調整後的 EBITDA 調節表中看到，我們確實調整了 1200 萬美元費用中的期外部分，即 1000 萬美元。因此，如果您查看我們調整後的 EBITDA 利潤率，然後對本期 200 萬美元的較小金額進行調整，您會發現我們的利潤率在調整後的 EBITDA 基礎上與上一季相當一致。

And then, as you know, you highlighted yourself, we had this impact to transportation revenue. And so the comparability there, that item in particular does give us a little bit of favorability in terms of our margin, but it’s not a significant driver of the ongoing improvements that we're delivering.

然後，正如您所知，您強調了自己，我們對運輸收入產生了影響。因此，那裡的可比性，特別是該項目確實在利潤方面給了我們一點好處，但這並不是我們正在提供的持續改進的重要驅動力。

Great, thanks. Super helpful.

太好了，謝謝。超有幫助。

Thank you, Billy.

謝謝你，比利。

(Operator Instructions)

（操作員說明）

Bret Jordan, Jefferies.

布雷特·喬丹，杰弗里斯。

Hey, good morning. Good afternoon, guys.

嘿，早安。下午好，夥計們。

Hey, Bret. Good afternoon.

嘿，布雷特。午安.

On the market share question, I think you said you're outperforming the physical auction volume. I guess, if you looked at all auction channels and looked at market share, are you and obviously, there's lots of cars traded in various places. Are you outperforming the broader market or are you more or less right now performing the physical?

關於市佔率問題，我認為您說過您的表現優於實體拍賣量。我想，如果您查看所有拍賣管道並查看市場份額，您會發現，顯然，有很多汽車在不同的地方進行交易。您的表現是否跑贏了大盤，或者您現在或多或少展現了身體素質？

I would say, our market share, Bret, over the past period has been fairly steady. There's a little bit of ebb and flow in some quarters. We've seen strong growth on commercial or dealer volumes have been more flattish over the past say 12-month period. So – but again, I think that's against the backdrop of a commercial off lease volume environment that has been challenged and I think that's particularly impactful on us.

我想說，布雷特，我們的市佔率在過去一段時間相當穩定。某些方面有一點潮起潮落。我們發現，在過去 12 個月期間，商業或經銷商銷售的強勁成長較為平淡。所以，我認為這是在商業租賃量環境受到挑戰的背景下進行的，我認為這對我們影響特別大。

So I feel good about our market share. We have – you have to kind of look at it in the dealer category and then in the commercial category and then in aggregate because the mix shift can flex from one quarter to another, one period to another. So I think we're – I would say, we've held our market share. It might be slightly up over the period, if we look at it in aggregate and then we look at it in commercial and dealer. I also feel pretty good about where we stand.

所以我對我們的市場佔有率感到滿意。我們有——你必須先從經銷商類別、然後是商業類別、然後是總體來看待它，因為混合轉變可能會從一個季度到另一個季度、從一個時期到另一個時期發生變化。所以我認為我們——我想說，我們已經保住了我們的市場份額。如果我們從總體上看，然後從商業和經銷商的角度來看，它可能會在這段時間內略有上升。我對我們的立場也感覺很好。

Okay. And then within AFC, is your borrow – is your customer base changed at all? Are you taking out some of the lower credit customers? And I guess, if you sort of thought about the number of active clients at AFC right now. Does that change much year-over-year?

好的。然後在 AFC 內部，你的借用 - 你的客戶群是否改變了？您是否正在剔除一些信用較低的客戶？我想，如果你考慮一下亞足聯現在的活躍客戶數量。與去年同期相比，情況有很大變化嗎？

Yeah. Hey Bret, Brad here. Thanks for the question. So I would say, just a couple things here. We have been intentional around our risk management processes here and been pretty diligent, particularly over the last 12 to 18 months around the customer portfolio. So there's been some proactive takeout of customers that were flagging risk for us, and that's ordinary. But I would say, certainly in the last 12 to 18 months, it's been more of a priority for us.

是的。嘿布雷特，布拉德在這裡。謝謝你的提問。所以我想說，這裡有幾件事。我們一直有意圍繞我們的風險管理流程，並且非常勤奮，特別是在過去 12 到 18 個月的客戶組合方面。因此，有些客戶主動出擊，給我們帶來了風險，這很常見。但我想說，當然在過去 12 到 18 個月裡，這對我們來說更重要。

In this business, in the independent floor planning financing business, there is some normal churn. So there are normal churn. But as we've demonstrated historically, we're able to maintain a pretty consistent base of customers with that churn. So as we lose some, we gain some and on the net, we're able to grow unit volumes over time. So that's just my comments there. But I would say, this business continues to perform very, very well.

在這項業務中，在獨立規劃融資業務中，存在一些正常的流失。所以存在正常的流失。但正如我們歷史上所證明的那樣，我們能夠在客戶流失的情況下保持相當穩定的客戶群。因此，當我們失去一些時，我們就會獲得一些，並且在網上，我們能夠隨著時間的推移增加單位數量。這就是我的評論。但我想說，這項業務的表現仍然非常非常好。

Obviously, our credit loss rates have been a little bit higher than where we would like them to be on a target basis. But we feel our relative performance there, based on what we know of some of our peers in this space and their performance, our relative performance there is very strong, the margin structure of this business not only from a fee basis but also from a net interest margin perspective and the returns that yields is very, very attractive and like this business.

顯然，我們的信用損失率略高於我們希望的目標水準。但我們覺得我們在那裡的相對錶現，根據我們對這個領域的一些同行及其表現的了解，我們在那裡的相對錶現非常強勁，這項業務的利潤結構不僅來自費用基礎，而且來自淨額息差角度和產生的回報非常非常有吸引力，就像這項業務。

Great. A quick housekeeping question. You also commented you increased your go-to-market resources late in the second quarter. Is that something that is, obviously you maintained your guide. Is there any timing that that expense is going to generate a return later in the year or is it just not that significant?

偉大的。一個快速的家政問題。您也表示您在第二季末增加了上市資源。是的，顯然你維護了你的指南。該費用是否會在今年稍後產生回報，或者只是沒有那麼重要？

Yeah. I guess, Bret, I'd say first of all it's not that significant in the context of overall SG&A structure. So I'd say it's more on the margin. But obviously the business case associated with these investments is, yes, you increase some staffing and you expect to see volume impacts to happen in fairly near-term, but not immediately.

是的。我想，布雷特，我首先要說的是，在整體 SG&A 結構的背景下，它並不那麼重要。所以我想說這更多是在邊緣。但顯然，與這些投資相關的業務案例是，是的，您增加了一些人員配置，並且您預計會在相當近期內看到數量影響，但不會立即發生。

So yeah, we've got a business case that envisions some incremental volume here in the second half of the year and continuing into 2025. Some of the investments also are in technology and product development.

所以，是的，我們有一個業務案例，預計今年下半年銷售量會增加，並持續到 2025 年。一些投資還涉及技術和產品開發。

Those probably have a little bit of a longer lead time, but not massively. And again, I would characterize that as we feel really good about the offering we have. We feel really good about the feedback we're getting from our dealers, many of whom are very sophisticated, do a lot of analysis on how we're performing versus other channels.

這些交貨時間可能會稍長一些，但不會太長。再次，我想說的是，因為我們對我們所提供的產品感覺非常好。我們對從經銷商那裡得到的回饋感到非常滿意，他們中的許多人都非常老練，並對我們與其他管道的表現進行了大量分析。

And there's an opportunity here to sort of increase share in certain markets where frankly we don't have a presence in terms of a salesperson or in certain markets where we've got more opportunity than the person on the ground can reasonably handle. So it's a situation like that.

在某些市場中，我們有機會增加份額，坦白說，我們在這些市場中沒有銷售人員，或者在某些市場中，我們擁有比當地人員能夠合理處理的更多機會。所以就是這樣一個情況。

Great. Thank you.

偉大的。謝謝。

Rajat Gupta, JPMorgan.

拉賈古普塔，摩根大通。

Great. Thanks for taking the questions. Apologies, I joined the call a little late. I was curious like if you commented around your US D2D growth and what your share gains were in the quarter? And I have a couple very quick follow-ups. Thanks.

偉大的。感謝您提出問題。抱歉，我加入通話的時間有點晚了。我很好奇您是否評論了您的美國 D2D 成長以及您在本季度的份額收益是多少？我有幾個非常快速的後續行動。謝謝。

Yeah. Rajat, well we commented that the story was similar to Q1 insofar as there were some declines in total dealer volume, but most of those were located in our Canadian business. Our US volumes were stronger in relative terms based on the information we have.

是的。Rajat，我們評論說，這個故事與第一季類似，經銷商總量有所下降，但其中大部分位於我們的加拿大業務。根據我們掌握的信息，我們在美國的銷量相對較強。

Our US volume growth in dealer was stronger than US volume growth at physical auction. Actually, it was a decline at physical auction, I believe, over the first half of the year. So yes, so I think our US dealer to dealer trends are stronger than the overall aggregate trend that we talked about.

我們在美國經銷商數量的成長強於美國實體拍賣數量的成長。事實上，我認為今年上半年實體拍賣會出現了下降。所以是的，所以我認為我們的美國經銷商到經銷商的趨勢比我們討論的整體整體趨勢更強。

A couple of other things worth mentioning. Commercial volume growth of 21% in the quarter, similar to Q1, when you have strong commercial volume growth, there is a little bit of, I suppose cannibalization on the buy side where a buyer might, who previously might have bought dealer cars, switches over and buys a commercial vehicle. And that's just part of the normal network effect in our business. So I think that's – that's to be understood.

還有一些值得一提的事情。本季商業銷售成長 21%，與第一季類似，當商業銷售成長強勁時，我認為買方可能會出現一點點蠶食，以前可能購買過經銷商汽車的買家可能會轉換併購買了一輛商用車。這只是我們業務中正常網路效應的一部分。所以我認為這是可以理解的。

I guess the other thing I said, Rajat, is we saw an improving trend over the course of the quarter, both in US and Canada. So to the extent there were declines, we saw those declines sort of diminish as the quarter went on, and I feel good about the trend line that set up for the second half of the year.

Rajat，我想我說的另一件事是，我們在本季看到美國和加拿大的趨勢有所改善。因此，就下降的程度而言，隨著本季的繼續，我們看到這些下降有所減少，我對下半年建立的趨勢線感覺良好。

Got it. And we saw – we noticed, like one of our competitors, like, raised prices on the digital side in the month of June. I was curious, did you follow through with that or you're going to be a little more cautious about that and maybe use that as an opportunity to take some share? Just curious around the thought process around that? Thanks.

知道了。我們看到——我們注意到，就像我們的競爭對手之一一樣，六月提高了數字方面的價格。我很好奇，你是否會堅持下去，或者你會對此更加謹慎，也許會以此為契機分享一些份額？只是對圍繞此的思考過程感到好奇嗎？謝謝。

Yeah. Thanks, Rajat. We noticed the same thing. Obviously, pricing is something we keep under review just at all times in our business, in all the marketplaces, commercial end dealers. So that's something we observed and something we will react to appropriately. I guess what I'd say to this, first of all, listen our dealer-to-dealer business is an important part of our offering. It is profitable, significantly more profitable than it was two years ago. So I feel really good about that.

是的。謝謝，拉賈特。我們注意到同樣的事情。顯然，我們在業務中、在所有市場、商業終端經銷商中始終對定價進行審查。這就是我們觀察到的情況，我們將對此做出適當的反應。我想對此我想說的是，首先，聽聽我們的經銷商對經銷商業務是我們產品的重要組成部分。它是有利可圖的，而且比兩年前的利潤要高得多。所以我對此感覺很好。

I believe we've got a very efficient marketplace, by which I mean the cost to put a vehicle through our marketplace, I believe is lower than the cost to put a vehicle through a physical auction, and probably lower than the cost to put it through some competing channels. So I think we've got a very efficient marketplace and that has enabled us to have attractive pricing in the market, a growing business and a profitable business.

我相信我們有一個非常有效率的市場，我的意思是透過我們的市場投放車輛的成本，我相信低於透過實體拍賣投放車輛的成本，並且可能低於投放車輛的成本通過一些競爭管道。因此，我認為我們擁有一個非常有效率的市場，這使我們能夠在市場上擁有有吸引力的定價、不斷增長的業務和盈利的業務。

So, listen, we're going to keep that under review. It's something we're actively looking at. We also had in Canada, the digital services tax that Brad alluded to, Brad spoke about. So that's a function in Canada that we obviously need to find a way to address as well. So looking at pricing in that regard as well. So, Rajat, I don't have anything to say on this particular call in terms of timing, but these are things we look at all the time.

所以，聽著，我們將對此進行審查。這是我們正在積極研究的事情。布拉德談到，我們在加拿大也徵收了布拉德提到的數位服務稅。因此，這是加拿大的功能，我們顯然也需要找到一種方法來解決。因此，也要考慮這方面的定價。所以，拉賈特，對於這次特別的電話會議的時間安排，我沒有什麼好說的，但這些都是我們一直在關注的事情。

Understood. Just one last one on the CDK outreach and the experience that the dealers went through with this. You're obviously very much integrated with your dealer network. Their systems in a way getting deeper and deeper in terms of partnerships. I was curious, does this experience open up an opportunity for you to maybe participate more in those kind of systems and products, given you already have a platform and you're already like, well connected? So I was just curious how you think about that opportunity? Thanks.

明白了。最後一篇是關於 CDK 外展以及經銷商在此方面經歷的經驗。顯然，您與經銷商網路的整合程度非常高。他們的系統在夥伴關係方面越來越深入。我很好奇，鑑於您已經擁有一個平台並且已經建立了良好的聯繫，這種經驗是否為您提供了更多參與此類系統和產品的機會？所以我很好奇你如何看待這個機會？謝謝。

Yeah. Thanks, Rajat. First of all, I want to be very clear. Our information systems were not in any way compromised in the quarter. The volume impact was sort of a knock on impact our dealers operations were impacted by the outage. That meant they couldn't take trade ins and they couldn't wholesale cars. And that sort of by implication impacted our volumes late in the second quarter. But our systems are robust and were unaffected through the whole process.

是的。謝謝，拉賈特。首先，我想說得非常清楚。我們的資訊系統在本季沒有受到任何損害。銷售影響是一種連鎖反應，我們的經銷商業務受到了停電的影響。這意味著他們不能進行以舊換新，也不能批發汽車。這間接影響了我們第二季末的銷售量。但我們的系統非常強大，並且在整個過程中沒有受到影響。

Listen Rajat, it brings it home that information security is really important. I feel really good about what we've got. Our systems are a little different. We're don't – we're not as sort of tied into the core operations of the dealership like a dealer management system is. But we have opportunities as part of our product innovation is to make the wholesale process easy for dealers.

聽 Rajat，它讓我們認識到資訊安全非常重要。我對我們所擁有的感覺非常好。我們的系統有點不同。我們不是－我們不像經銷商管理系統那樣與經銷商的核心營運緊密相連。但我們有機會，因為我們產品創新的一部分是讓經銷商的批發過程變得更容易。

So part of that we are expanding our product offering beyond just the purchase and sale of a vehicle, but helping dealers with pricing guidance and vehicle stocking decisions and things like that both in US and Canada. So we've got some exciting initiatives in the works. I think we'll have more to talk about in future calls as we bring these products to market.

因此，我們正在擴大我們的產品範圍，不僅僅是購買和銷售車輛，而是幫助美國和加拿大的經銷商進行定價指導和車輛庫存決策以及類似的事情。因此，我們正在進行一些令人興奮的舉措。我認為，當我們將這些產品推向市場時，我們將在未來的電話會議中討論更多內容。

Understood. Great. Thanks for all the color.

明白了。偉大的。感謝所有的顏色。

You're welcome.

不客氣。

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Peter Kelly for any closing remarks. Please go ahead.

我們的問答環節到此結束。我想將會議轉回由彼得·凱利先生發表閉幕詞。請繼續。

Thank you very much. Listen, I'd just like to reinforce a few key themes that support my optimism for OPENLANE's future. As I mentioned earlier, our performance in the first half of this year clearly demonstrates the power of our offering and the strong scalability characteristics of our company. We're leaning into that strategy and our investments to further accelerate the growth that we're already seeing.

非常感謝。聽著，我只想強調幾個關鍵主題，以支持我對 OPENLANE 未來的樂觀態度。正如我之前提到的，我們今年上半年的業績清楚地展示了我們產品的強大功能以及我們公司強大的可擴展性特徵。我們正在依靠這項策略和投資來進一步加速我們已經看到的成長。

AFC continues to be a strategic asset, delivering meaningful adjusted EBITDA and enabling the OPENLANE marketplace more than ever before. Our marketplace business is profitable and growing and are well positioned to capture the opportunities inherent in the improving industry fundamentals. We remain the clear leader commercial off lease remarketing and are best positioned to benefit from the current leasing recovery.

AFC 仍然是一項策略性資產，可帶來有意義的調整後 EBITDA，並比以往任何時候都更支持 OPENLANE 市場。我們的市場業務獲利且不斷成長，並且有能力抓住產業基本面不斷改善所固有的機會。我們仍然是商業租賃再行銷領域的明顯領導者，並且最有能力從目前的租賃復甦中受益。

And we're investing in our dealer business to accelerate our innovation pipeline, grow our volumes and our market share, and continue delivering the profitable growth that you're seeing. When viewed together, I think the combination of these factors provides a very compelling vision for OPENLANE's future.

我們正在投資我們的經銷商業務，以加速我們的創新管道，增加我們的銷售和市場份額，並繼續實現您所看到的獲利成長。綜合來看，我認為這些因素的結合為 OPENLANE 的未來提供了非常引人注目的願景。

Thank you all for joining us on today's call. I look forward to speaking to you all again soon.

感謝大家參加今天的電話會議。我期待很快能再次與大家交談。

The conference is 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。