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spk05: and 30 to 634 million, growth of 31 to 32 percent year over year. Note that we expect acquisitions to account for approximately a high single digit percentage of full year revenue. Adjusted EBITDA is now expected to be in the range of 25 to 27 million. As it relates to guidance, we are assuming that dealer wholesale volumes will be approximately flat year over year for 2024. We expect conversion rates and wholesale price depreciation to follow normal seasonal patterns. We also continue to expect revenue growth to exceed non-GAAP OBEX growth, excluding cost of revenue and depreciation and amortization by approximately 10 percentage points. And finally, moving to slide 20, we remain committed to our mid-term target model. Our targets are underpinned by sustaining market share gains, penetrating adjacent markets, and expanding margins through revenue mix and scale, all of which we've clearly demonstrated in our performance. Our mid-term targets are primarily predicated on the dealer wholesale market recovering to historical volumes over time. But in addition, we are expanding our TAM and consistently taking share, which will drive long-term growth. And with that, let me turn it back to George.
spk16: Thanks, Bill. Before we take your questions, I will summarize. We are very pleased with our strong execution in Q3. We are especially proud of our ACV teammates that delivered these results. We continue to gain market share by attracting new dealer and commercial partners to our marketplace while expanding our addressable market, which positions ACV for attractive growth as market conditions improve. We are delivering on an exciting product roadmap to further differentiate ACV and drive operating efficiencies. We are on track to achieve our 2024 adjusted EBITDA targets and deliver on our mid-term targets that we believe will drive significant shareholder value. We are committed to achieving these results while building a world-class team to deliver on our goals. With that, I'll turn the call over to the operator to begin the Q
spk07: &A.
spk10: Thank you. And at this time, if you would like to ask a question, please press the star and one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two.
spk01: And we will pause for a moment to allow questions to queue. And we will take our first question from Chris Pierce with Needham. Please go ahead.
spk11: Hey, good evening, guys. Hey, Chris.
spk17: I had a question on the, if I look at the metrics and Billy, you sort of reiterated on the call, the $506 in auction and assurance RPU. Over time, more of it seems to be coming from auction versus the assurance side on a per vehicle basis. I just want to know the right way to think about that if that's something intentional or if that's not something we should read into. I just want to kind of better understand that.
spk05: Hey, Chris. It's Bill. So I wouldn't really read anything into that. Again, think of auction and assurance revenue combined, not segregated, because again, the gap accounting can
spk07: distort some of the trends.
spk17: Okay, perfect. And then on the, if we think about some of the larger players, like the Carvana or what
spk00: does
spk17: your business look like as someone that has their own wholesale side of the world, runs their own wholesale auctions, grows retail share? Just thinking longer term here.
spk07: So Chris, can you repeat that question, George? I just want
spk16: to understand what...
spk17: Yeah. Yeah. Like what happens if, you know, we talked about independent dealers and consolidation within dealers. What happens if larger players like a Carvana, as they grow share, what happens because at that point you have these larger players that run their own wholesale auctions. I just kind of want to think about, you know, what's the right way to think about your business if that kind of possibility plays out?
spk16: Yeah, no, certainly. So yeah, I believe today Carvana has around 1% market share, if I remember correctly. And when you think about the 16,500 franchise dealer rooftops in incredible locations across the country, and then the, you know, 30,000 plus independent dealers across the country, all those dealers need to compete. And they need solutions. They need solutions to buy cars from consumers. They need appraisal from consumers. They need solutions. They will all need machine learning and artificial intelligence to help them drive their businesses. So look at, we are building the technology that empowers all these dealers to really compete against the Carvanas and the other big box players. So I think that's the way to think about this. It's a really important category. And our dealers have some of the most incredible real estate and incredible brands across the US. And we think they could be buying a lot more cars from consumers and selling more used cars. And we're going to help them get that inventory.
spk01: Okay. Thank you.
spk07: Certainly.
spk10: Thank you. Thank you. And we will take our next question from Nick Jones of CitizensJMP. Please go ahead.
spk04: Hey, Nick. Great. Thanks for, hey, George. Hey, Bill. Hey, guys. Could you kind of remind us how you're thinking about just pricing? Broadly, I know there's some levers if depreciation picks up, you have some room to take price up. But as we kind of look at the industry and we can kind of see competitors seem to be taking price up each year, maybe a little bit ahead of inflation. Philosophically, how do you think about tracking that? Are you at a level that kind of makes sense for you around $500, give or take? Or how should we think about how you may kind of track competitors from a pricing perspective? And then I have a follow up.
spk16: Yeah, certainly. So first, we've made great progress on closing the gap on our buy fees, you know, we were significantly under market. And we did that from without really any impact on our ability to continue to gain share. So very pleased with how we've done it a little of time each year. We were very careful on doing the right things for our dealer partners, but really getting our pricing to more of a competitive level. So really ecstatic with the team prepared to make those changes. We probably have a little bit more room on that sort of head room. But we'd rather keep you all thinking around that $500. I'm sorry, $500. $500 is going the wrong way. $500 as we set out for the midterm target. And just to remind you, our sell side, our dealers and the sell side do get price discounts with volume. So as we continue to grow volume, some of our sellers and that's already part of our mechs. But we'd like for you all to be thinking still in that $500 for now until we until we guide you all otherwise.
spk04: $5 would be a pretty good deal. As we think about kind of the midterm targets, I guess, could you speak to, I guess, kind of maybe some debate as to what's going to happen with interest rates post the election? I mean, any challenges in kind of getting to a more normalized market if rates stay higher? Do you think we're kind of on a path to a normalized market kind of one way or the other over the next few years? Just any thoughts on kind of the industry post election and maybe the debate around the rate environment?
spk07: Thanks. Yeah, so we're, you
spk16: know, obviously what we've seen is we've seen new cars. We're starting to see incentives. We're starting to see interest rates as playing to the way new car dealers are pricing their vehicles. And the more incentives on the new will help. You know, I think we will consistently, until now and the end of next year, see new cars have more and more incentives. So if we kind of look at that as one area that I could, there's different folks who are thinking about next year from a new perspective. You're seeing a few different folks report that new could be off a little bit next year. When you think about how that relates to dealer wholesale, really one way to think about next year is that the, some of the industry folks like NAAA and AuctionNet think that dealer wholesale could be sort of, I would read into what they're saying is sort of flattish. And why do I say that is you're still going to have a lack of used cars. So, you know, if I had to, you know, at least from now, so, okay, when will we have a true, you know, a tailwind? I think a true tailwind may be going into 26. But I feel like next year, I'm at least thinking about next year is sort of flattish from a market perspective. But hopefully with all the other things you just mentioned, lower interest rates, other things, we could all have a little bit more enthusiasm than that, more to come between now when we talk more about
spk07: next year.
spk01: Thanks,
spk08: George.
spk01: Thank you. And we will take our
spk10: next question from Bob LeBec with CGS Securities. Please go ahead.
spk03: Good afternoon. Hey, Bob. Thank you for taking the questions. Hey, great job on the quarter. Nice upside on the volume in particular. So, as I look at it, it seems like, and I know this is my rough math, but it seems like quarterly volume, the organic growth accelerated versus the first half. And, you know, if that is true, what are the key drivers? What's like kind of the incremental organic growth, you know, from the quarter versus an already strong first half?
spk07: Hey, Bob. It's Bill.
spk05: So, yeah, so the upside was certainly driven by the organic growth of our business. Our remarketing centers were pretty much on track based on what we forecasted. And that was really driven by several factors. So, number one, just continued share gains. Number two, we had better than expected conversion rates for the quarter. And we had really great performance in terms of our marketplace services offering. So, you know, those combined, you know, really drove the highest organic growth that we've seen, frankly, in several years. So, we're really, really pleased, you know, with that performance. And we've seen that continue so far, you know, early into Q4. However, we're obviously baking in kind of seasonality for the rest of the
spk07: quarter and archives.
spk03: Right. No, it makes sense the seasonality in Q4 versus three if you just look back for every year. Great. And then just one other for me. Obviously, we just talked about the accelerating organic, which is great. But you also have made these acquisitions to advance in commercial. What have you learned so far? I know you guys are kind of like, do learn, observe, you know, tweak it and then move on. So, what have you learned so far? And how does it affect your future acquisitions into commercial or conditioning centers? How should we think about 2025 and beyond?
spk07: Yeah, thanks. So,
spk16: to your point first, we're learning a lot. We've got some great locations for our commercial consignors where it's really enabling us to both work with the consignors, learn the technology they'd like to see in place. You'll see us talk more about how we're going to implement our inspection technologies at these locations early next year. We'll talk about that more. You'll hear us talk about how we're combining some of our back end office systems and other capabilities. And so, when you really think about the technology that we're building to help these commercial consignors, it's going to help them make the right decisions. So, when a car shows up, should they be reconditioning that vehicle or not? How much should they be spending on reconditioning? And I think we're really going to have some breakthroughs over the next year or two. Now, having said that, we're still early stages. A little over 5% of our current volume right now is commercial. So, I don't want to get ahead of ourselves just yet. Next year, we'll still be investing in that product and technology required. But when I think about this in out years, commercial could
spk07: become a very meaningful part of our overall volume.
spk03: Okay, super. Thanks so much.
spk07: Thank you.
spk01: Thank you.
spk10: And we will take our next question from Rahat Gupta with JP Morgan. Please go ahead.
spk09: There we go. Thanks, George. I just wanted to ask around the framework around incremental margins. We know you're going through the commercial initiatives this year. You know, acquisitions are coming through. You have a lot of other product initiatives. How long would you expect to be in this kind of incremental range, 29%, 30%? And once you're through with the integration phase, should we expect this to inflect next year? Are there more areas that are working on the pipeline that should depress that? I'm just curious if you could help us understand the near-term framework around that and have a quick follow-up.
spk05: Thanks. Yeah, here we go. It's Bill. Yeah, so what we've talked about in the past is kind of a normalized organic target in terms of incremental EBITDA of 40%. So our guidance this year implies approximately 30% taking into account the investments that we're making as part of building out our platform to support commercial business. So, you know, the thinking in terms of next year is we'll continue to make progress in terms of, you know, improving that incremental EBITDA margin. But we'll continue our planned platform expansion to support the commercial rollout similar to what we've done this year while expanding our EBITDA margin. So, you know, we'll continue to move the ball forward, but we wouldn't expect that next year we would get to fully hit the 40% incremental EBITDA on marginal revenue growth.
spk16: Yeah, and Roger, I'll add to that is, you know, we, it's really this sort of ramp of making sure we're showing gains and progress in our EBITDA. Obviously, we're going to stay committed to that. But we'll also be committed, as Bill said, to execute on, you know, expanding our TAM both in commercial and helping dealers source more cars from consumers, which is the self-inspection capability. So, we're very excited the fact that next year we believe we can do both, both improve, you know, year over year what we've done from an EBITDA perspective, but also invest not only in the core dealer wholesale, but also in expanding our TAM.
spk09: Got it. Makes sense. And this is a follow-up. I mean, if I heard you correctly, Bill, you mentioned that you're not expecting the same kind of market share acceleration that you saw in 3Q in the fourth quarter. Is that correct? And why would that be the case if you could just give us more color there? Thanks.
spk16: Yeah, I don't think we said, Mark, I think what we said is there's typically in November, in December, conversion rates typically go down. That's at least what it's done almost every year. So, when you look at the seasonality of this business, and you heard Bob mention it earlier, every year conversion rates in November and December tend to come down.
spk05: Yeah, but also I didn't mention, by the way, Rajat, the other impact in the quarter that we discussed in our prepared remarks that we're estimating the impact from hurricanes on our southeastern regions is about $2 million in revenue and about $1 million in EBITDA. So, we baked that into our guide for Q4 as well.
spk09: I think maybe like, I think I meant to ask it in a different way. The 22% organic growth in the third quarter, it seems like it's 20 points, 22 points above what the market did. That's an acceleration from what you saw in 1Q, 2Q. Are you assuming that similar kind of market share, you know, delta in the fourth quarter as well, or is that not the case? I think that is what I was trying to get at, but it seems like it's not. Yeah, I think it's
spk16: a good question. I'm gonna, I would say our thoughts on market share was pretty much continuation of Q3, although I will say we don't have that exact prepared answer that I will say, you know, we didn't really back it in based on market share. I don't see any difference on market share between Q3, Q4 at this point, meaning the data in front of us. We're purely looking at this as seasonality. You know, seasonality plus a little bit of this hurricane stuff, but basically when I look at listers, when I look at listings, I don't see any difference on
spk05: I mean, we've seen a really strong start to the quarter, kind of a continuation of the same kind of growth rates we saw in Q3 through October, but, you know, we're always trying to be, you know, prudent in terms of our guidance and taking into account, again, the seasonality factors that George mentioned. So, you know, we'll see how things go, obviously, but that's, that was the basis for us to guide what we did.
spk09: Thank you.
spk10: Thank you. And we will take our next question from Michael Graham with Canaccord. Please go ahead.
spk13: Hey, thanks a lot. Hey, how are you? I don't think you mentioned this yet on the Q&A. If you did, I apologize, but just on the commercial wholesale market, you talked a little bit about your efforts there and the prepared remarks, but just was hoping to get another layer of depth around like, you know, how that's going and, you know, how quickly you think that can become a more significant part of your business.
spk16: Yeah, certainly, Michael. Yeah, one of the things I, we mentioned, you know, I'll try to go a little bit deeper is our volume in commercial today is a little over 5% of our overall business. So, going well, investing in some key areas. So, the areas that will help us really differentiate in this commercial business will be, no surprise to you all, will be inspections, right? That's an area where we've always innovated on the dealer side, bringing that to the commercial side. You'll hear us talk about that some more in Q1. So, that'll be one area of, that I'm really pleased with the team is innovating around how we're going to really sort of enhance the way we inspect these cars at the auctions, how we're leveraging auto IMS, which is how we get the consignments, how we're then integrating with sort of the back office systems, not to get in the weeds here, but all going well so far. I mean, we'll be making this investment throughout next year, but at the end of the day, we feel good that the experience we're building will be differentiated, will be both great for our commercial consignors, the sellers and buyers. So, I think without the sake of repeating what I said earlier, there's more to come probably in Q1 on this topic, but happy with the build out we've done so far.
spk13: And then just last quick one related to that is maybe a comment on the profitability of those units relative to dealer wholesale?
spk16: Yeah, at the end of the day, if I looked at this as EBITDA dollars per unit, EBITDA dollars per unit are basically the same. Slightly higher revenue per unit, slightly higher cost per unit, but if you kind of look at what matters, you basically get into the same EBITDA dollar per unit.
spk08: Perfect. Okay. Thank you. Thank you, George.
spk10: Thank you. Thank you. And we will take our next question from Naved Ken with B. Riley Securities.
spk11: Thank you. Thank you very much. Hey guys. On the conversion rate, which you saw, did pretty well in the third quarter, I'm curious if the improvement that you saw is a function of the macro and the market or are these a result of the changes that you are making to the platform or just give us your thoughts there?
spk16: Yeah, great question. And it was definitely both. So the market conditions helped Q3, helped us definitely. There was definitely a lot of demand for used cars. So that was definitely a factor, but also very proud of the technology and product enhancements we continue to add. We've gone through this. We showed you some of it in the slides here, some of the enhancements we made on conversion. It's constant here, as you know. Our engineering team and product team are constantly making sure we're merchandising the cars the right way so our sellers really get the full amount of money for these cars. Buyers know what they're buying. We keep making a bunch of enhancements there. We're making enhancements on how and when to sell these cars, enhancements. The car doesn't sell the first time around. It could be sold the second time around. So we keep investing in the area of conversion and it's definitely helped. So the simple answer is both. Both some market benefit and also the enhancement we've made from a technology perspective.
spk11: Got it. And then on transportation, the revenue margin improved year on year. Was there any change in this sequential basis?
spk16: The transport team here is just, they're making incredible strides on leveraging artificial intelligence on pricing lanes. So when you choose lane by lane, how to price a vehicle, coupled with we're just starting to do some bundling. Bundling would mean there's already a car, let's say, going from Long Island to Virginia. So let's get the same truck to take the same vehicle. So bundling will, it's only a small portion of our cars today. That will also keep growing. So yeah, we're very happy with how we're leveraging technology to make sure we're giving the right price for our dealers. Because that price is important for our dealer partners, but also using the tech to help us
spk07: make sure we're hitting our margin objectives.
spk08: Thanks, guys.
spk01: Thank
spk10: you. And we will take our next question from Stephen McDermott with Bank of America. Please go ahead.
spk06: Hi, this is Stephen McDermott on for Curtis Nagel. So just wanted to talk about kind of market share gains versus wallet share. How are you thinking about the mix in terms of growth there? And then I have a follow up as well. Thank you.
spk16: Yeah, no, it's a great question. And look at this as more of like, it's a regional story. It's a local story. And then there's like a national kind of overlay to the whole thing. But there's only a few markets in the country where we have, you know, 70, 80 plus percent wallet share from a lot of dealers in one territory, right? And we have a few of those and we're happy about that. But there's many markets where we can still grow in multiple ways. There's national dealer groups that we study their wallet share consistently. And when I see 20 or 30 percent wallet share, I see a lot of great opportunity to help those dealers, show them why our pricing is right, show them why our conversion, you know, on our marketplace keeps getting better. So it's both, you know, we will continue to grow the business. And there's some markets where we're still relatively new, and we only have a few sellers, and we don't have a lot of wallets here yet. So we got a lot long ways to go. And, you know, I think that's the great thing about the ACV model is we're still in the early days here. We're very happy with the overall market share. We're ecstatic with all the hard work the team has done,
spk07: but
spk16: there's a lot of headroom here
spk07: for us to keep growing.
spk06: Awesome. And then I know this is pretty early, but autonomous vehicles definitely dominated the discussion last quarter for some large share names and some OEMs. So, you know, still many years away, but just philosophically, you know, what do AVs mean to you guys in the long term? Have you really put much thought behind the strategy there? On EVs? AVs, autonomous vehicles.
spk16: Autonomous vehicles. You know, I think one, the good thing about autonomous vehicles is they will become used too. They'll go from new to used. They will, you know, they will need to be purchased by someone else in the US or someone else overseas or somewhere else somewhere. So I really, I think the whether the user was Uber or the user was whoever, that asset will then, you know, get sold eventually. I would look at, you know, generation one of this, look at that as just a fleet category in our world, almost like commercial. And okay, those vehicles, once that consigner believes they don't want to keep it on their balance sheet, great car to go through an auction and go to some, whether it be a franchise or independent dealer that will go in and recondition it to what it needs. So quick answer would be it's probably no different than the rest of the commercial world.
spk06: Awesome. Appreciate the answer and great job this quarter. Thank you. Thanks so much.
spk10: Thank you. And we will take our next question from John Healy with North Coast Research. Please go ahead.
spk15: I think she can I wanted to ask, I guess, wanted to ask a little bit about the commercial side of the business. When I think about that business, I think about rental, I think about repo, I think about off lease, we're just wondering if you could give us some thoughts on like, which of those buckets do you think the solution makes for out of the gates? And, you know, now that you have auto IMS, and maybe we're six months into learning and practicing and system work, is there one of those buckets that you think might be kind of first to move and, you know, first to really embrace you guys? And we just love to hear your thoughts on that. Thank
spk16: you. Yeah, certainly. Great question. We're definitely making some from a volume perspective. Most of the volume I mentioned on commercial today is from repos and rental. So those two are have been our the first areas we've been able to take some share, grow those relationships. A lot of them where we are doing business with one city, and now we might be doing business in two or three cities, and we'll try to keep growing our relationships with each one of them. So wherever ACV is, we can take we can become one of their sort of auction partners of choice. So definitely those are the first two off lease. We're just getting started. Hopefully, I'll be able to talk a little bit more about that next year. So we're in discussions, we're working on some things, not much to share just yet.
spk15: Gotcha. And then just kind of want to pick apart kind of a phrase you just mentioned on the last question regarding AV talks about cars being used here or, you know, overseas. Just let me get your thoughts just about international expansion. You know, now that you're kind of making money here, and you know, growth is, you know, we're talking about incremental margins that are, you know, sizable. Where are you at in solution
spk08: globally?
spk07: Thanks.
spk16: Yeah, I'll give you two perspectives on sort of the global front. So one, we're still early in our strategy creation. But we first and foremost think about and I'll separate demand from supply and demand. So as it relates to apply, we think about taking the ACV model in a very sort of technology first mentality. Think self-inspection by the consumer, self-inspection by the dealer, appraisal type solutions that then the vehicle then goes into marketplace and it's sold. And so the model we go globally will not necessarily be the same model we do here in the US. And it'll be, you know, very much asset-laying model. It'll be our technology helping OEMs who let's say OEMs are trying to sell a car, a new car to a consumer, will be that trade and model module and then the car will go into our marketplace. Or if it's a dealer, they'll go around, they'll use our artificial intelligence under a lot and they'll upload the car to our marketplace. That's the direction you'll hear us start to talk about over the next year. We're still in the very, very early stages of that model.
spk07: But great question.
spk15: Great. Thank you guys. And again, congrats.
spk07: Thank you.
spk10: Thank you. And we will take our next question from Glenn Shell with Raymond James. Please go ahead.
spk12: Thanks. First on the, hey, first on the Manhattan market report, showing 11% -over-year new and used car sales growth in October. Have you seen any of those trends within your own data? I know you said that wholesale should be flattish, but getting some volumes in for that trade to wholesale mix. So then off of that, where is the trade to wholesale mix now on like a more specific number and then versus normalized levels? I know it's a bit layered and I can break that down again if you
spk16: need. I think one, Bill mentioned October got off to a good start. So I'm sure one of the reasons why October got off to a good start was to your point, market was healthy, conversion rates were healthy, that probably that wholesale to retail mix was likely healthy, although I haven't seen the recent on that specific month. But I would generally say the quarter, fourth quarter started out well. The only, as we mentioned, when we thought about fourth quarter, we don't assume conversion rates will stay as high. We don't assume some of this will stay as high over the next couple of months because it typically does. As you start to look at the price depreciation and the seller asking for one price, the buyer willing to pay another, you typically see conversion rates start to come down. We mentioned that earlier. So I'm not sure if there's any other way to kind of back into your question just yet, more than we shared, but if you want to try to ask the question another way, I'll try to answer it.
spk12: Yeah, well that's super helpful. But then just on even just three Q, do you have a more specific trade to wholesale mix number? And where is that versus normalized levels?
spk07: Yeah, I mean, we, yeah, I think we'll,
spk16: our trade to wholesale mix improved, you know, marginally in the quarter. We won't see trade to wholesale mix move up materially until that used car supply comes back. Just to remind you, most dealers have 25% less used cars on their lot today than they did in 2019. And I was recently out with a dealer group in Texas and the dealer principal looked at me and all his leadership team in the room and said, we have 30% less cars on our lots right now that we need. And looked at us like a call of action, like we need to go buy more cars from consumers. And so just to kind of get you into mentality dealerships, and I'm really pleased obviously with the ACV results, but it's going to take several more months here for the market to kind of come back from these dealers having 25% less inventory. And so it will take some time. But having said that, your specific answer, we did see a marginal improvement.
spk07: And
spk16: that it was
spk07: nice to at least see a marginal improvement.
spk08: Perfect. Thank you.
spk07: Yeah, certainly.
spk10: Thank you. And we will take our next question from John Colantuani with Jeffries. Please go ahead.
spk02: Hi, everyone. Thank you for taking my questions. Hi. I wanted to ask a question on market expansion. You've historically been strongest in the Northeast. I'm curious if you could update us on your progress expanding into new markets, particularly those that you rolled out a few years ago. And as part of that, talk a little bit about how long it'll take to start reaching a level of density in those newer markets where you'll start getting to the levels of scale where it'll start showing through into better profitability across the company. And second part of that, right around the IPO, Canada, I think, was an aspiration for you. Where do those plans stand today? If you could just update us there. Thanks.
spk07: Yes, certainly, John.
spk16: So yeah, we've, to your point, we're very strong in the East Coast. We've actually continued to gain more share in the East Coast, which has been great. I think the pointings towards Texas for a second, we're doing extremely well in Texas, where as an example of a market that's pretty far from Buffalo. And year over year gains, I think, was some of the highest in the country for us in Texas. So I think that's all I have prepared preparation to give you an example on the moment and maybe more to come on this topic. But I'm very pleased. The ACV brand is increasing. We're working with more and more dealer groups. As you're working with more dealer groups, the dealer groups, as you know, are in many cities, so that kind of pulls us into some markets. Our new products are helping us break into new markets, products like Clearcar, helping dealers buy more cars from consumers. So far, so good. That was your first question. Trying to remember your second. Canada. Oh, Canada. So yeah, I think when you put together these plans, I think you always assume the first international market you'd go into be the one right next to you, like Canada. And that would have been my assumption during the IPO. The irony is you sometimes go where you're getting pulled. And we've been pulled into some markets in Europe. So you'll probably hear us talk more about that next year. But think very small early stages. This is where OEMs and others are pulling us in. So yes, you will start to hear the ACV story beyond the US. It'll be very small numbers for next year. It won't be zero. And we start to think about 2026 and beyond. Hopefully, it'll become more material. But we are starting to take the model. And the way the model, as I mentioned earlier, the way we're doing the model is it's a -inspection-based model. So you're using artificial intelligence to have the consumer or the dealer walk around the car, do the condition report, and then it goes into our marketplace. So we're in early stages of this. I'm very pleased with the team's progress.
spk07: More to come when we can report a little bit more about this topic. Thanks so much.
spk01: Thank you.
spk10: And it appears that we have no further questions at this time. I will now turn the program back to our presenters for any additional or closing remarks.
spk14: Thanks, Madison. I'd like to thank everybody for joining us on the call today. We look forward to seeing you on the conference circuit this quarter. And again, thank you for your interest in ACV. Have a great evening.
spk10: Thank you. This does conclude today's presentation. Thank you for your participation. You may disconnect at any time.
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