ACV Auctions says Q2 net loss widened to $17M, revenue rises 29%

Online auction services provider ACV Auctions Inc. reported a wider net loss of $17.1 million in the second quarter, which ended June 30. Revenue rose 29 percent to $160.6 million.

ACV, of Buffalo, N.Y., also reported the number of vehicles sold on its marketplace platform by dealerships and commercial automotive companies grew 22 percent year over year to 186,526.

"Our strong market position resulted in continued share gains and accelerated revenue growth in the quarter," ACV CEO George Chamoun said in a statement. "The adoption of our growing suite of dealer solutions has continued to broaden and we have executed initiatives to support our commercial wholesale strategy. We achieved this while further increasing our margins."

Dealer wholesale volumes remained below historical levels in the second quarter because of soft retail sales and the ongoing shortage of used-vehicle inventory, Chamoun said.

"However, there were some early signs of improvement in the broader automotive ecosystem, and we believe the dealer wholesale market will continue to recover" in the second half of the year, he said.

Net income: Loss of $17.1 million, wider than its loss of $15.6 million in the year-ago period.

Total revenue: $160.6 million, up 29 percent from $124.2 million.

Vehicle sales: 186,526, up 22 percent.

Stocks: Shares of ACV Auctions dropped 1.72 percent Aug. 7 to $14.83 and was unchanged in premarket trading Aug. 8.