ACV Auctions (ACVA) 10-Q 6 Nov 23 2023 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Oct. 30, 2023
Document Information [Line Items]
Entity Registrant Name	ACV Auctions Inc.
Entity Central Index Key	0001637873
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Trading Symbol	ACVA
Amendment Flag	false
Title of 12(b) Security	Class A common stock, par value $0.001 per share
Security Exchange Name	NASDAQ
Entity File Number	001-40256
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-2415221
Entity Address, Address Line One	640 Ellicott Street, #321
Entity Address, City or Town	Buffalo
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14203
City Area Code	800
Local Phone Number	553-4070
Document Quarterly Report	true
Document Transition Report	false
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		136,166,962
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		25,272,052

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Total revenue	$ 119,014	$ 105,419	$ 362,857	$ 323,556
Operating expenses:
Operations and technology	35,132	34,328	106,180	103,877
Selling, general, and administrative	40,797	34,701	123,689	106,897
Depreciation and amortization	4,980	3,004	12,086	7,868
Total operating expenses	141,301	130,509	425,768	402,474
Loss from operations	(22,287)	(25,090)	(62,911)	(78,918)
Other income (expense):
Interest income	4,489	1,936	12,505	2,618
Interest expense	(439)	(235)	(1,205)	(683)
Total other income (expense)	4,050	1,701	11,300	1,935
Loss before income taxes	(18,237)	(23,389)	(51,611)	(76,983)
Provision for income taxes	1	279	409	695
Net loss	$ (18,238)	$ (23,668)	$ (52,020)	$ (77,678)
Weighted-average number of shares of common stock - Basic	160,427,987	157,264,153	159,541,286	156,747,507
Weighted-average number of shares of common stock - diluted	160,427,987	157,264,153	159,541,286	156,747,507
Net loss per share - basic	$ (0.11)	$ (0.15)	$ (0.33)	$ (0.5)
Net loss per share - diluted	$ (0.11)	$ (0.15)	$ (0.33)	$ (0.5)
Marketplace And Service Cost [Member]
Operating expenses:
Cost of revenue	$ 47,928	$ 46,255	$ 145,732	$ 143,400
Customer Assurance Cost [Member]
Operating expenses:
Cost of revenue	12,464	12,221	38,081	40,432
Marketplace And Service Revenue [Member]
Total revenue	104,537	90,852	318,760	276,951
Customer Assurance Revenue [Member]
Total revenue	$ 14,477	$ 14,567	$ 44,097	$ 46,605

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ (18,238)	$ (23,668)	$ (52,020)	$ (77,678)
Other comprehensive income (loss):
Net unrealized gains (losses) on available-for-sale securities	210	(1,810)	237	(2,920)
Foreign currency translation (loss) gain	(377)	(1,004)	(113)	(2,513)
Comprehensive loss	$ (18,405)	$ (26,482)	$ (51,896)	$ (83,111)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current Assets :
Cash and cash equivalents	$ 226,236	$ 280,752
Marketable Securities	224,010	215,926
Trade receivables (net of allowance of $3,356 and $4,860)	168,796	168,732
Finance receivables (net of allowance of $2,673 and $2,275)	105,832	78,047
Other current assets	16,859	11,317
Total current assets	741,733	754,774
Property and equipment (net of accumulated depreciation of $4,519 and $6,986)	5,167	5,710
Goodwill	117,830	91,755
Acquired intangible assets (net of amortization of $15,686 and $11,990)	21,457	19,291
Capitalized software (net of amortization of $12,797 and $6,930)	52,745	36,992
Other assets	20,152	6,400
Total assets	959,084	914,922
Current Liabilities :
Accounts payable	338,137	323,661
Accrued payroll	12,369	10,052
Accrued other liabilities	16,861	14,504
Total current liabilities	367,367	348,217
Long-term debt	105,000	75,500
Other long-term liabilities	19,619	5,481
Total liabilities	491,986	429,198
Commitments and Contingencies (Note 5)
Stockholders' Equity :
ferred Stock; $0.001 par value; 20,000,000 shares authorized; 0 and 0 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	0	0
Additional paid-in capital	869,962	836,695
Accumulated deficit	(399,374)	(347,354)
Accumulated other comprehensive loss	(3,651)	(3,775)
Total stockholders' equity	467,098	485,724
Total liabilities and stockholders' equity	959,084	914,922
Common Class A [Member]
Stockholders' Equity :
Common stock	136	121
Common Class B [Member]
Stockholders' Equity :
Common stock	$ 25	$ 37

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accounts Receivable, Allowance	$ 3,356	$ 4,860
Financing Receivable, Allowance	2,673	2,275
Accumulated Depreciation Property And Equipment	4,519	6,986
Amortization of Intangible Assets	$ 15,686	$ 11,990
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Software Development [Member]
Amortization of Intangible Assets	$ 12,797	$ 6,930
Common Class A [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	135,757,008	121,214,275
Common stock, shares outstanding	135,757,008	121,214,275
Common Class B [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	160,000,000	160,000,000
Common stock, shares issued	25,210,995	37,241,952
Common stock, shares outstanding	25,210,995	37,241,952

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Class A [Member]	Common Class B [Member]	Additional Paid In Capital [Member]	Additional Paid In Capital [Member] Common Class A [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Common Stock [Member] Common Class A [Member]	Common Stock [Member] Common Class B [Member]
Balance at Dec. 31, 2021	$ 556,097			$ 801,142		$ (245,161)	$ (40)	$ 106	$ 50
Balance, Shares at Dec. 31, 2021		106,420,843	49,661,126
Conversion of Class B Common Stocks to Class A Common Stocks, Value								10	(10)
Conversion of Class B Common Stocks to Class A Common Stocks, Shares		9,246,210	(9,246,210)
Net Income (Loss)	(77,678)					(77,678)
Other comprehensive loss	(5,433)						(5,433)
Stock-based compensation	27,285			27,285
Exercise of common stock options	998			998
Exercise of common stock options, Shares		579,455
Vested restricted stock units	(3,461)			(3,461)
Vested restricted stock units, Shares		404,871	79,274
Escrowed shares				(1)				1
Escrowed shares, Shares		620,877
Issuance of shares for employee stock purchase plan, shares		128,544
Issuance of shares for employee stock purchase plan	930				$ 930
Balance at Sep. 30, 2022	498,738			826,893		(322,839)	(5,473)	117	40
Balance, Shares at Sep. 30, 2022		117,400,800	40,494,190
Balance at Jun. 30, 2022	515,665			817,338		(299,171)	(2,659)	115	42
Balance, Shares at Jun. 30, 2022		114,933,675	42,613,583
Conversion of Class B Common Stocks to Class A Common Stocks, Value								2	(2)
Conversion of Class B Common Stocks to Class A Common Stocks, Shares		2,198,667	(2,198,667)
Net Income (Loss)	(23,668)					(23,668)
Other comprehensive loss	(2,814)						(2,814)
Stock-based compensation	10,242			10,242
Exercise of common stock options	239			239
Exercise of common stock options, Shares		138,033
Vested restricted stock units	(926)			(926)
Vested restricted stock units, Shares		130,057	79,274
Issuance of shares for employee stock purchase plan, shares		368
Balance at Sep. 30, 2022	498,738			826,893		(322,839)	(5,473)	117	40
Balance, Shares at Sep. 30, 2022		117,400,800	40,494,190
Balance at Dec. 31, 2022	485,724			836,695		(347,354)	(3,775)	121	37
Balance, Shares at Dec. 31, 2022		121,214,275	37,241,952
Conversion of Class B Common Stocks to Class A Common Stocks, Value								12	(12)
Conversion of Class B Common Stocks to Class A Common Stocks, Shares		12,269,282	(12,269,282)
Net Income (Loss)	(52,020)					(52,020)
Other comprehensive loss	124						124
Stock-based compensation	39,641			39,641
Exercise of common stock options	$ 3,577			3,576				1
Exercise of common stock options, Shares	1,080,034	1,080,034
Vested restricted stock units	$ (11,279)			(11,280)				1
Vested restricted stock units, Shares		1,017,490	238,325
Escrowed shares, Shares	620,877
Issuance of shares for employee stock purchase plan, shares		175,927
Issuance of shares for employee stock purchase plan	$ 1,331			1,330				1
Balance at Sep. 30, 2023	467,098			869,962		(399,374)	(3,651)	136	25
Balance, Shares at Sep. 30, 2023		135,757,008	25,210,995
Balance at Jun. 30, 2023	476,169			860,628		(381,136)	(3,484)	135	26
Balance, Shares at Jun. 30, 2023		134,717,291	25,610,643
Conversion of Class B Common Stocks to Class A Common Stocks, Value								1	(1)
Conversion of Class B Common Stocks to Class A Common Stocks, Shares		474,343	(474,343)
Net Income (Loss)	(18,238)					(18,238)
Other comprehensive loss	(167)						(167)
Stock-based compensation	13,176			13,176
Exercise of common stock options	802			802
Exercise of common stock options, Shares		243,358
Vested restricted stock units	(4,644)			(4,644)
Vested restricted stock units, Shares		322,016	74,695
Balance at Sep. 30, 2023	$ 467,098			$ 869,962		$ (399,374)	$ (3,651)	$ 136	$ 25
Balance, Shares at Sep. 30, 2023		135,757,008	25,210,995

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash Flows from Operating Activities
Net income (loss)	$ (52,020)	$ (77,678)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	12,407	8,210
Stock-based compensation expense, net of amounts capitalized	36,262	25,887
Provision for bad debt	8,530	7,101
Other non-cash, net	(772)	325
Changes in operating assets and liabilities, net of effects from purchases of businesses:
Trade receivables	10,990	64,326
Other operating assets	(5,266)	(4,385)
Accounts payable	(2,543)	(98,385)
Other operating liabilities	1,023	(710)
Net cash provided by (used in) operating activities	8,611	(75,309)
Cash Flows from Investing Activities
Net increase in finance receivables	(30,991)	(32,131)
Purchases of property and equipment	(1,518)	(2,652)
Capitalization of software costs	(19,319)	(14,145)
Purchases of marketable securities	(116,036)	(217,706)
Maturities and redemptions of marketable securities	107,690	21,216
Sales of marketable securities	2,649	0
Acquisition of businesses (net of cash acquired)	(28,649)	(18,913)
Net cash provided by (used in) investing activities	(86,174)	(264,331)
Cash Flows from Financing Activities
Proceeds from long term debt	305,000	200,000
Payments Towards Long Term Debt	(275,500)	(130,000)
Proceeds from exercise of stock options	3,576	999
Payment of RSU tax withholdings in exchange for common shares surrendered by RSU holders	(11,280)	(3,475)
Proceeds from employee stock purchase plan	1,330	930
Other financing activities	(74)	0
Net cash provided by (used in) financing activities	23,052	68,454
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(5)	(33)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(54,516)	(271,219)
Cash, cash equivalents, and restricted cash, beginning of period	280,752	565,994
Cash, cash equivalents, and restricted cash, end of period	226,236	294,775
Non-cash investing and financing activities:
Stock-based compensation included in capitalized software development costs	2,394	1,398
Purchase of property and equipment and internal use software in accounts payable	$ 1,277	$ 1,401

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (18,238)	$ (23,668)	$ (52,020)	$ (77,678)

Insider Trading Arrangements

Insider Trading Arrangements	9 Months Ended
	Sep. 30, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Item 5. Other Information. On September 15, 2023 , George Chamoun , our Chief Executive Officer and a member of our Board of Directors , adopted a “Rule 10b5-1 trading arrangement” (as defined in Item 408 of Regulation S-K) (the “Chamoun Plan”). The Chamoun Plan contemplates the sale of up to 700,000 shares between March 19, 2024 and June 21, 2024, subject to certain volume limitations and excluding specified “No Sale” periods. The Chamoun Plan is scheduled to terminate on June 21, 2024 . On August 30, 2023 , William Zerella , our Chief Financial Officer , adopted a Rule 10b5-1 trading arrangement (the “Zerella Plan”). The Zerella Plan contemplates the sale of up to 490,000 shares between January 9, 2024 and December 31, 2024, subject to certain volume limitations and excluding specified “No Sale” periods. The Zerella Plan is scheduled to terminate on December 31, 2024 . On September 15, 2023 , Craig Anderson , our Chief Corporate Development and Strategy Officer , adopted a Rule 10b5-1 trading arrangement (the “Anderson Plan”). The Anderson Plan contemplates the sale of up to 490,000 shares between December 19, 2023 and December 31, 2024, subject to certain volume limitations and excluding specified “No Sale” periods. The Anderson Plan is scheduled to terminate on December 31, 2024 . On September 15, 2023 , Vikas Mehta , our Chief Operating Officer , adopted a Rule 10b5-1 trading arrangement (the “Mehta Plan”). The Mehta Plan contemplates the sale of up to 742,500 shares between December 15, 2023 and December 31, 2024, subject to certain volume limitations and excluding specified “No Sale” periods. The Mehta Plan is scheduled to terminate on December 31, 2024 . Other than disclosed above, no other officer or director adopted, modified or terminated a Rule 10b5-1 trading arrangement or “non-Rule 10b5-1 trading arrangement” (as defined in Item 408 of Regulation S-K) during the three months ended September 30, 2023.
George Chamoun [Member]
Trading Arrangements, by Individual
Name	George Chamoun
Title	Chief Executive Officer and a member of our Board of Directors
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	September 15, 2023
Rule 10b5-1 Arrangement Terminated	true
Termination Date	June 21, 2024
Aggregate Available	700,000
William Zerella [Member]
Trading Arrangements, by Individual
Name	William Zerella
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 30, 2023
Rule 10b5-1 Arrangement Terminated	true
Termination Date	December 31, 2024
Aggregate Available	490,000
Craig Anderson [Member]
Trading Arrangements, by Individual
Name	Craig Anderson
Title	Chief Corporate Development and Strategy Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	September 15, 2023
Rule 10b5-1 Arrangement Terminated	true
Termination Date	December 31, 2024
Aggregate Available	490,000
Vikas Mehta [Member]
Trading Arrangements, by Individual
Name	Vikas Mehta
Title	Chief Operating Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	September 15, 2023
Rule 10b5-1 Arrangement Terminated	true
Termination Date	December 31, 2024
Aggregate Available	742,500

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Nature of Business and Summary Significant Accounting Policies	1. Nature of Business and Summary of Significant Accounting Policies Nature of Business – The Company operates in one industry segment, providing a digital wholesale auction marketplace (the “Marketplace”) to facilitate business-to-business used vehicle sales between a selling dealership (“Seller”) and a buying dealership (“Buyer”). Customers using the Marketplace are licensed automotive dealerships or other commercial automotive enterprises. At the election of the customer purchasing a vehicle, the Company can arrange third-party transportation services for the delivery of the purchased vehicle through its wholly owned subsidiary, ACV Transportation LLC. The Company can also provide the customer financing for the purchased vehicle through its wholly owned subsidiary, ACV Capital LLC. ACV also provides data services that offer insights into the condition and value of used vehicles for transactions both on and off the Company's Marketplace, which help dealerships, their end customers, and commercial partners make more informed decisions to transact with confidence and efficiency. Customers using data services are licensed automotive dealerships or other commercial automotive enterprises. All services are provided in the United States and certain data services are also provided internationally. Services are supported by the Company’s operations which are in the United States, Canada, and France. Basis of Consolidation – The condensed consolidated financial statements include the accounts of ACV Auctions Inc. and all of its controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Basis of Preparation – The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the applicable rules and regulations of the Securities and Exchange Commission ("SEC"). The Company has condensed or omitted certain information and notes normally included in complete annual financial statements prepared in accordance with GAAP. These financial statements have been prepared on the same basis as the Company's annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company's financial information. The unaudited interim condensed consolidated financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 1, 2023 (the "Annual Report"). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). Seasonality – The volume of vehicles sold through the Marketplace generally fluctuates from quarter to quarter. This seasonality is caused by several factors, including holidays, weather, the seasonality of the retail market for used vehicles and the timing of federal tax returns, which affects the demand side of the automotive industry. As a result, revenue and operating expenses related to volume fluctuate accordingly on a quarterly basis. In the fourth quarter, we typically experience lower used vehicle volume on our Marketplace as well as additional costs associated with the holidays. Seasonally depressed used vehicle volume on our Marketplace typically continues during the winter months through the first quarter. Typical seasonality trends may not be observed in periods where other external factors more significantly impact the industry.

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2023
Financial Instruments, Owned, at Fair Value, by Type, Alternative [Abstract]
Financial Instruments	2. Financial Instruments The following is a summary of available-for-sale financial instruments, as of September 30, 2023 and December 31, 2022, respectively (in thousands): September 30, 2023 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Marketable securities: Corporate securities (1) $ 186,410 $ 4 $ ( 2,034 ) $ 184,380 U.S. treasury and agency securities 39,829 - ( 199 ) 39,630 Total Marketable securities $ 226,239 $ 4 $ ( 2,233 ) $ 224,010 (1) Comprised primarily of corporate bonds and commercial paper December 31, 2022 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Marketable securities: Corporate securities (1) $ 184,321 $ 75 $ ( 2,344 ) $ 182,052 U.S. treasury and agency securities 34,071 3 ( 200 ) 33,874 Total Marketable securities $ 218,392 $ 78 $ ( 2,544 ) $ 215,926 (1) Comprised primarily of corporate bonds and commercial paper As of September 30, 2023, the fair values of available-for-sale financial instruments, by remaining contractual maturity, were as follows (in thousands): Due within one year $ 156,419 Due in one to five years 67,591 Total $ 224,010 The Company typically invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer. Fair values were determined for each individual security in the investment portfolio. The Company does not believe that any unrealized losses are attributable to credit-related factors based on its evaluation of available evidence. To determine whether a decline in value is related to credit loss, the Company evaluates, among other factors: the extent to which the fair value is less than the amortized cost basis, changes to the rating of the security by a rating agency and any adverse conditions specifically related to an issuer of a security or its industry. The Company does not intend to sell the instruments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. Unrealized gain and losses on marketable securities are presented net of tax.

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurement	3. Fair Value Measurement Fair value accounting is applied for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the condensed consolidated financial statements on a recurring basis (at least annually). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . Assets and liabilities recorded at fair value in the condensed consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity, associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1: Observable inputs such as quoted prices in active markets for identical assets and liabilities. Level 2: Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data which require the Company to develop its own assumptions. The Company’s financial instruments that are not measured at fair value on a recurring basis include trade and finance accounts receivable and accounts payable whose carrying values approximate fair value due to the short-term nature of those instruments. The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): September 30, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 65,110 $ - $ - $ 65,110 Marketable Securities: Corporate securities - 184,380 - 184,380 U.S. treasury and agency securities 27,620 12,010 - 39,630 Total financial assets $ 92,730 $ 196,390 $ - $ 289,120 December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 36,679 $ - $ - $ 36,679 Marketable Securities: Corporate securities - 182,052 - 182,052 U.S. treasury and agency securities 26,006 7,868 - 33,874 Total financial assets $ 62,685 $ 189,920 $ - $ 252,605 The Company classifies its highly liquid money market funds and U.S treasury securities within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its corporate securities, and U.S. agency securities within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded.

Accounts Receivables & Allowanc

Accounts Receivables & Allowance for Doubtful Receivables	9 Months Ended
	Sep. 30, 2023
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Accounts Receivables & Allowance for Doubtful Receivables	4. Accounts Receivable & Allowance for Doubtful Receivables The Company maintains an allowance for doubtful receivables that in management’s judgment reflects losses inherent in the portfolio. A provision for doubtful receivables is recorded to adjust the level of the allowance in accordance with GAAP. Changes in the allowance for doubtful trade receivables for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Beginning balance $ 3,629 $ 4,266 $ 4,860 $ 3,724 Provision for bad debt 2,046 1,731 5,325 4,950 Net write-offs Write-offs ( 3,254 ) ( 2,977 ) ( 11,442 ) ( 8,635 ) Recoveries 935 1,376 4,613 4,357 Net write-offs ( 2,319 ) ( 1,601 ) ( 6,829 ) ( 4,278 ) Ending balance $ 3,356 $ 4,396 $ 3,356 $ 4,396 Changes in the allowance for doubtful finance receivables for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Beginning balance $ 3,048 $ 971 $ 2,275 $ 636 Provision for bad debt 677 1,269 3,205 2,151 Net write-offs Write-offs ( 1,148 ) ( 1,021 ) ( 3,300 ) ( 1,598 ) Recoveries 96 130 493 160 Net write-offs ( 1,052 ) ( 891 ) ( 2,807 ) ( 1,438 ) Ending balance $ 2,673 $ 1,349 $ 2,673 $ 1,349

Guarantees, Commitments and Con

Guarantees, Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Guarantees, Commitments and Contingencies	5. Guarantees, Commitments and Contingencies The Company provides certain guarantees to Sellers in the Marketplace in the ordinary course of business, which are accounted for under ASC 460 as a general guarantee. Vehicle Condition Guarantees – Sellers must attach a vehicle condition report in the Marketplace for every auction; this vehicle condition report is used by Buyers to inform bid decisions. The Company offers guarantees to Sellers in qualifying situations where the Company performed a vehicle inspection and prepared the vehicle condition report. Sellers must pay an additional fee in exchange for this guarantee. The guarantee provides Sellers protection from paying remedies to Buyers related to a Buyer’s claim that the vehicle condition report did not accurately portray the condition of the vehicle purchased on the Marketplace. The guarantee provides the Company with the right to retain proceeds from the subsequent liquidation of the vehicle covered under the guarantee. The guarantee is typically provided for 10 days after the successful sale of the vehicle on the Marketplace. The fair value of vehicle condition guarantees issued is estimated based on historical results and other qualitative factors. The vehicle condition guarantee revenue is recognized on the earlier of the guarantee expiration date or the guarantee settlement date. The maximum potential payment is the sale price of the vehicle. The total sale price of vehicles for which there was an outstanding guarantee was $ 209.2 million and $ 160.3 million at September 30, 2023 and December 31, 2022, respectively. The carrying amount of the liability presented in Accrued other liabilities was $ 1.5 million and $ 1.2 million at September 30, 2023 and December 31, 2022, respectively. The recognized probable loss contingency, in excess of vehicle condition guarantees recognized, presented in Accrued other liabilities was $ 1.5 million and $ 1.4 million at September 30, 2023 and December 31, 2022, respectively. Other Price Guarantees – The Company provides Sellers with a price guarantee for vehicles to be sold on the Marketplace from time to time. If a vehicle sells below the guaranteed price, the Company is responsible for paying the Seller the difference between the guaranteed price and the final sale price. The term of the guarantee is typically less than one week. No material unsettled price guarantees existed at September 30, 2023 and December 31, 2022. Litigation – The Company and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings and matters in which claims for monetary damages are asserted. On an on-going basis management, after consultation with legal counsel, assesses the Company's liabilities and contingencies in connection with such proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its condensed consolidated financial statements. To the extent pending or threatened litigation could result in exposure in excess of the recorded liability, the amount of such excess is not currently estimable.

Borrowings

Borrowings	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Borrowings	6. Borrowings 2019 Revolver On December 20, 2019, the Company entered into a revolving credit facility (the “2019 Revolver”). On June 26, 2023, the Company entered into an agreement to extinguish the 2019 Revolver. As of December 31, 2022 , $ 0.5 million was outstanding under the 2019 Revolver. 2021 Revolver On August 24, 2021, the Company entered into a revolving credit facility (the “2021 Revolver”). The 2021 Revolver was established to provide general financing to the Company. The 2021 Revolver is secured by substantially all of the Company's assets except for ACV Capital receivables. The maximum borrowing principal amount of the 2021 Revolver is $ 160.0 million and includes a sub facility that provides for the issuance of letters of credit up to $ 20.0 million outstanding at any time. On June 1, 2023, the Company entered into Amendment No. 1 ("The First Amendment"), which modified the rate to which interest payments are indexed to the Secured Overnight Financing Rate, or SOFR. The interest rate applicable to the 2021 Revolver is, at our option, either (a) SOFR (or a replacement rate established in accordance with the terms of the credit agreement for the 2021 Revolver) (subject to a 0.00% SOFR floor), plus a margin of 2.75% per annum plus an additional credit spread adjustment of 0.11% for daily and one-month terms, 0.26% for three-month terms and 0.43% for six-month terms or (b) the Alternate Base Rate plus a margin of 1.75% per annum. The Alternate Base Rate is the highest of (a) the Wall Street Journal prime rate, (b) the NYFRB rate plus 0.5% and (c)(i) 1.00% plus (ii) the adjusted SOFR rate for a one-month interest period. The First Amendment maintains a maximum borrowing principal amount of $ 160.0 million. Refer to Note 9 contained in our Annual Report on Form 10-K for the year ended December 31, 2022 for further details regarding our revolving credit facilities and their key terms. As of September 30, 2023 and December 31, 2022, outstanding borrowings under the 2021 Revolver were $ 105.0 million and $ 75.0 million , respectively, and there was an outstanding letter of credit issued under the 2021 Revolver in the amount of $ 1.6 million , decreasing the availability under the 2021 Revolver by a corresponding amount. As of September 30, 2023, the interest rate on the outstanding borrowing was 10.25 % . As of September 30, 2023 , the Company was in compliance with all of its financial covenants and non-financial covenants.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue	7. Revenue The following table summarizes the primary components of revenue; this level of disaggregation takes into consideration how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors (in thousands): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Auction marketplace revenue $ 51,390 $ 41,748 $ 159,911 $ 133,790 Other marketplace revenue 45,012 40,484 134,251 118,276 Data services revenue 8,135 8,620 24,598 24,885 Marketplace and service revenue $ 104,537 $ 90,852 $ 318,760 $ 276,951 Contract liabilities represent consideration collected prior to satisfying performance obligations. The Company had $ 4.1 million and $ 3.8 million of contract liabilities included in Accrued other liabilities on the Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022, respectively. Revenue recognized for the three months ended September 30, 2023 from amounts included in deferred revenue as of June 30, 2023 was $ 4.0 million . Revenue recognized for the nine months ended September 30, 2023 from amounts included in deferred revenue as of December 31, 2022 was $ 3.8 million . All the remaining performance obligations for contracts are expected to be recognized within one year.

Stock-Based Employee Compensati

Stock-Based Employee Compensation	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	8. Stock-Based Compensation Refer to Note 13 contained in our Annual Report on Form 10-K for the year ended December 31, 2022 for further details regarding our equity plans. The following table summarizes the stock option activity for the nine months ended September 30, 2023 (in thousands, except for share and per share amounts): Number of Weighted- Intrinsic Weighted- Outstanding, December 31, 2022 7,801,650 $ 2.67 $ 43,185 6.0 Exercised ( 1,080,034 ) 3.31 Forfeited ( 113,185 ) 7.25 Expired ( 16,946 ) 4.73 Outstanding, September 30, 2023 6,591,485 $ 2.49 $ 83,674 5.1 Exercisable, September 30, 2023 6,027,138 $ 2.17 $ 78,435 4.9 The following table summarizes the restricted stock unit activity for the nine months ended September 30, 2023 (in thousands, except for share and per share amounts): Number of RSUs Weighted- Outstanding, December 31, 2022 5,978,564 $ 14.57 Granted 4,545,164 $ 14.00 Vested ( 2,132,397 ) $ 14.33 Forfeited ( 382,506 ) $ 13.54 Outstanding, September 30, 2023 8,008,825 $ 14.36 As of September 30, 2023 there was approximately $ 105.8 million of compensation expense related to the unvested portion of common stock options and restricted stock units that will be recorded as compensation expense over a weighted-average period of 2.6 years. During the first quarter of 2022, the Company entered into an escrow agreement (the "Escrow Agreement") for certain compensatory share-based service awards. The Escrow Agreement authorized 620,877 shares of common stock to be issued and held in escrow. Shares will be released and distributed equally on a six-month schedule to the employee award recipients with the final vesting date on February 22, 2025. At September 30, 2023, there was approximately $ 3.7 million of compensation expense related to the unvested portion of escrow shares that will be recorded over 1.4 years.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes The Company had an effective tax rate of approximately 0 % and ( 1 )% for the three months ended September 30, 2023 and 2022, and ( 1 )% for the nine months ended September 30, 2023 and 2022 . The principal differences between the federal statutory rate and the effective tax rate is related to foreign taxes and credits, and the non-recognition of tax benefits for certain entities in a loss position for which a full valuation allowance has been recorded.

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	10. Net Income (Loss) Per Share The numerators and denominators of the basic and diluted net income (loss) per share computations for the Company's common stock are calculated as follows for the three and nine months ended September 30, 2023 and 2022 (in thousands, except share data): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Class A Class B Class A Class B Class A Class B Class A Class B Numerator: Net loss attributable to $ ( 15,327 ) $ ( 2,911 ) $ ( 17,337 ) $ ( 6,331 ) $ ( 42,540 ) $ ( 9,480 ) $ ( 55,592 ) $ ( 22,086 ) Denominator: Weighted-average number of shares 134,822,341 25,605,646 115,196,661 42,067,492 130,464,809 29,076,477 112,179,445 44,568,062 Net loss per share Basic and diluted $ ( 0.11 ) $ ( 0.11 ) $ ( 0.15 ) $ ( 0.15 ) $ ( 0.33 ) $ ( 0.33 ) $ ( 0.50 ) $ ( 0.50 ) The following table presents the total weighted-average number of potentially dilutive shares that were excluded from the computation of diluted net loss per share attributable to common shareholders because their effect would have been anti-dilutive for the period presented: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Unvested RSUs and other awards 2,368,186 583,344 2,099,410 636,468 Stock options 5,428,444 4,596,218 5,477,646 5,289,298 Shares subject to the employee stock purchase plan 145,342 244,195 100,444 169,178

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2023
Business Combinations [Abstract]
Acquisitions	11. Acquisitions August 2023 On August 22, 2023, the Company completed its acquisition of all of the ownership interests of a business (“the August 2023 acquisition”) for estimated cash consideration of $ 17.3 million . The aggregate purchase price was preliminarily allocated to $ 20.8 million of goodwill, and $ 3.5 million of net liabilities assumed. The purchase price allocations are subject to adjustments as they are finalized over the 12 month measurement period. Goodwill acquired in connection with this acquisition will be deductible for tax purposes in the United States and will be amortized on a straight-line basis over 15 years . The business acquired in the August 2023 acquisition offers wholesale car auction services, and enabled the Company to expand its range of offerings to dealers and commercial partners. The August 2023 acquisition was accounted for using the acquisition method and, accordingly, the results of the acquired business have been included in the Company's results of operations from the acquisition date. April 2023 On April 24, 2023, the Company completed its acquisition of all of the ownership interests of a business (“the April 2023 acquisition”) for total cash consideration of $ 12.5 million . The aggregate purchase price was preliminarily allocated to $ 5.4 million of goodwill, $ 5.9 million of intangible assets and $ 1.1 million of net assets assumed. The purchase price allocations are subject to adjustments as they are finalized over the 12 month measurement period. Goodwill acquired in connection with this acquisition will be deductible for tax purposes in the United States and will be amortized on a straight-line basis over 15 years . The business acquired in the April 2023 acquisition offers wholesale and commercial car auction services and enabled the Company to expand its range of offerings to dealers and commercial partners. The April 2023 acquisition was accounted for using the acquisition method and, accordingly, the results of the acquired business have been included in the Company's results of operations from the acquisition date. Monk On February 22, 2022, the Company completed its acquisition of Monk SAS for total consideration of $ 18.6 million , net of cash acquired and working capital adjustments. The total purchase price was paid in cash. In aggregate, $ 13.5 million was attributed to goodwill, $ 6.4 million to intangible assets and $ 1.1 million to net liabilities assumed. Goodwill acquired in connection with this acquisition will be deductible for tax purposes in the United States and amortized on a straight-line basis over 15 years . Monk SAS is an AI company delivering state of the art visual processing capabilities for the automotive, insurance and mobility markets. The acquisition of Monk enables the Company to enhance its service offerings and inspection capabilities for dealers and commercial partners. The transaction was accounted for using the acquisition method and, accordingly, the results of the acquired business have been included in the Company's results of operations from the acquisition date.

Nature of Business and Summa_2

Nature of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Nature of Business	Nature of Business – The Company operates in one industry segment, providing a digital wholesale auction marketplace (the “Marketplace”) to facilitate business-to-business used vehicle sales between a selling dealership (“Seller”) and a buying dealership (“Buyer”). Customers using the Marketplace are licensed automotive dealerships or other commercial automotive enterprises. At the election of the customer purchasing a vehicle, the Company can arrange third-party transportation services for the delivery of the purchased vehicle through its wholly owned subsidiary, ACV Transportation LLC. The Company can also provide the customer financing for the purchased vehicle through its wholly owned subsidiary, ACV Capital LLC. ACV also provides data services that offer insights into the condition and value of used vehicles for transactions both on and off the Company's Marketplace, which help dealerships, their end customers, and commercial partners make more informed decisions to transact with confidence and efficiency. Customers using data services are licensed automotive dealerships or other commercial automotive enterprises. All services are provided in the United States and certain data services are also provided internationally. Services are supported by the Company’s operations which are in the United States, Canada, and France.
Basis of Consolidation	Basis of Consolidation – The condensed consolidated financial statements include the accounts of ACV Auctions Inc. and all of its controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Basis of Preparation	Basis of Preparation – The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the applicable rules and regulations of the Securities and Exchange Commission ("SEC"). The Company has condensed or omitted certain information and notes normally included in complete annual financial statements prepared in accordance with GAAP. These financial statements have been prepared on the same basis as the Company's annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company's financial information. The unaudited interim condensed consolidated financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 1, 2023 (the "Annual Report"). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”).
Receivable [Policy Text Block]	Seasonality – The volume of vehicles sold through the Marketplace generally fluctuates from quarter to quarter. This seasonality is caused by several factors, including holidays, weather, the seasonality of the retail market for used vehicles and the timing of federal tax returns, which affects the demand side of the automotive industry. As a result, revenue and operating expenses related to volume fluctuate accordingly on a quarterly basis. In the fourth quarter, we typically experience lower used vehicle volume on our Marketplace as well as additional costs associated with the holidays. Seasonally depressed used vehicle volume on our Marketplace typically continues during the winter months through the first quarter. Typical seasonality trends may not be observed in periods where other external factors more significantly impact the industry.

Marketable Securities (Tables)

Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-Sale Marketable Securities	The following is a summary of available-for-sale financial instruments, as of September 30, 2023 and December 31, 2022, respectively (in thousands): September 30, 2023 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Marketable securities: Corporate securities (1) $ 186,410 $ 4 $ ( 2,034 ) $ 184,380 U.S. treasury and agency securities 39,829 - ( 199 ) 39,630 Total Marketable securities $ 226,239 $ 4 $ ( 2,233 ) $ 224,010 (1) Comprised primarily of corporate bonds and commercial paper December 31, 2022 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Marketable securities: Corporate securities (1) $ 184,321 $ 75 $ ( 2,344 ) $ 182,052 U.S. treasury and agency securities 34,071 3 ( 200 ) 33,874 Total Marketable securities $ 218,392 $ 78 $ ( 2,544 ) $ 215,926 (1) Comprised primarily of corporate bonds and commercial paper
Schedule of fair values of available-for-sale marketable securities	As of September 30, 2023, the fair values of available-for-sale financial instruments, by remaining contractual maturity, were as follows (in thousands): Due within one year $ 156,419 Due in one to five years 67,591 Total $ 224,010

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2023
Financial Instruments, Owned, at Fair Value, by Type, Alternative [Abstract]
Marketable Securities [Table Text Block]	The following is a summary of available-for-sale financial instruments, as of September 30, 2023 and December 31, 2022, respectively (in thousands): September 30, 2023 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Marketable securities: Corporate securities (1) $ 186,410 $ 4 $ ( 2,034 ) $ 184,380 U.S. treasury and agency securities 39,829 - ( 199 ) 39,630 Total Marketable securities $ 226,239 $ 4 $ ( 2,233 ) $ 224,010 (1) Comprised primarily of corporate bonds and commercial paper December 31, 2022 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Marketable securities: Corporate securities (1) $ 184,321 $ 75 $ ( 2,344 ) $ 182,052 U.S. treasury and agency securities 34,071 3 ( 200 ) 33,874 Total Marketable securities $ 218,392 $ 78 $ ( 2,544 ) $ 215,926 (1) Comprised primarily of corporate bonds and commercial paper
Debt Securities, Available-for-Sale [Table Text Block]	As of September 30, 2023, the fair values of available-for-sale financial instruments, by remaining contractual maturity, were as follows (in thousands): Due within one year $ 156,419 Due in one to five years 67,591 Total $ 224,010

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Summary of Financial Assets Measured at Fair Value On Recurring Basis	The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): September 30, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 65,110 $ - $ - $ 65,110 Marketable Securities: Corporate securities - 184,380 - 184,380 U.S. treasury and agency securities 27,620 12,010 - 39,630 Total financial assets $ 92,730 $ 196,390 $ - $ 289,120 December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 36,679 $ - $ - $ 36,679 Marketable Securities: Corporate securities - 182,052 - 182,052 U.S. treasury and agency securities 26,006 7,868 - 33,874 Total financial assets $ 62,685 $ 189,920 $ - $ 252,605 The Company classifies its highly liquid money market funds and U.S treasury securities within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its corporate securities, and U.S. agency securities within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded.

Accounts Receivables & Allowa_2

Accounts Receivables & Allowance for Doubtful Receivables (Tables)	9 Months Ended
	Sep. 30, 2023
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Summary of changes in the Allowance for Doubtful Trade Receivables	Changes in the allowance for doubtful trade receivables for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Beginning balance $ 3,629 $ 4,266 $ 4,860 $ 3,724 Provision for bad debt 2,046 1,731 5,325 4,950 Net write-offs Write-offs ( 3,254 ) ( 2,977 ) ( 11,442 ) ( 8,635 ) Recoveries 935 1,376 4,613 4,357 Net write-offs ( 2,319 ) ( 1,601 ) ( 6,829 ) ( 4,278 ) Ending balance $ 3,356 $ 4,396 $ 3,356 $ 4,396
Summary of changes in the Allowance for Doubtful Finance Receivables	Changes in the allowance for doubtful finance receivables for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Beginning balance $ 3,048 $ 971 $ 2,275 $ 636 Provision for bad debt 677 1,269 3,205 2,151 Net write-offs Write-offs ( 1,148 ) ( 1,021 ) ( 3,300 ) ( 1,598 ) Recoveries 96 130 493 160 Net write-offs ( 1,052 ) ( 891 ) ( 2,807 ) ( 1,438 ) Ending balance $ 2,673 $ 1,349 $ 2,673 $ 1,349

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Summary of Disaggregation of Revenue	The following table summarizes the primary components of revenue; this level of disaggregation takes into consideration how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors (in thousands): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Auction marketplace revenue $ 51,390 $ 41,748 $ 159,911 $ 133,790 Other marketplace revenue 45,012 40,484 134,251 118,276 Data services revenue 8,135 8,620 24,598 24,885 Marketplace and service revenue $ 104,537 $ 90,852 $ 318,760 $ 276,951

Stock-Based Employee Compensa_2

Stock-Based Employee Compensation (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Activity	The following table summarizes the stock option activity for the nine months ended September 30, 2023 (in thousands, except for share and per share amounts): Number of Weighted- Intrinsic Weighted- Outstanding, December 31, 2022 7,801,650 $ 2.67 $ 43,185 6.0 Exercised ( 1,080,034 ) 3.31 Forfeited ( 113,185 ) 7.25 Expired ( 16,946 ) 4.73 Outstanding, September 30, 2023 6,591,485 $ 2.49 $ 83,674 5.1 Exercisable, September 30, 2023 6,027,138 $ 2.17 $ 78,435 4.9
Summary of restricted stock unit activity	The following table summarizes the restricted stock unit activity for the nine months ended September 30, 2023 (in thousands, except for share and per share amounts): Number of RSUs Weighted- Outstanding, December 31, 2022 5,978,564 $ 14.57 Granted 4,545,164 $ 14.00 Vested ( 2,132,397 ) $ 14.33 Forfeited ( 382,506 ) $ 13.54 Outstanding, September 30, 2023 8,008,825 $ 14.36

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Basic And Diluted Net Loss Per Share	The numerators and denominators of the basic and diluted net income (loss) per share computations for the Company's common stock are calculated as follows for the three and nine months ended September 30, 2023 and 2022 (in thousands, except share data): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Class A Class B Class A Class B Class A Class B Class A Class B Numerator: Net loss attributable to $ ( 15,327 ) $ ( 2,911 ) $ ( 17,337 ) $ ( 6,331 ) $ ( 42,540 ) $ ( 9,480 ) $ ( 55,592 ) $ ( 22,086 ) Denominator: Weighted-average number of shares 134,822,341 25,605,646 115,196,661 42,067,492 130,464,809 29,076,477 112,179,445 44,568,062 Net loss per share Basic and diluted $ ( 0.11 ) $ ( 0.11 ) $ ( 0.15 ) $ ( 0.15 ) $ ( 0.33 ) $ ( 0.33 ) $ ( 0.50 ) $ ( 0.50 )
Summary of Potentially Dilutive Shares Excluded from Computation of Net Loss Per Share	The following table presents the total weighted-average number of potentially dilutive shares that were excluded from the computation of diluted net loss per share attributable to common shareholders because their effect would have been anti-dilutive for the period presented: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Unvested RSUs and other awards 2,368,186 583,344 2,099,410 636,468 Stock options 5,428,444 4,596,218 5,477,646 5,289,298 Shares subject to the employee stock purchase plan 145,342 244,195 100,444 169,178

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023 IndustrySegment
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]
Number of operating segments	1

Financial Instruments - Schedul

Financial Instruments - Schedule of Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 226,239	$ 218,392
Unrealized Gain	4	78
Unrealized Losses	(2,233)	(2,544)
Fair Value	224,010	215,926
Corporate Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	186,410	184,321
Unrealized Gain	4	75
Unrealized Losses	(2,034)	(2,344)
Fair Value	184,380	182,052
U.S. treasury and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	39,829	34,071
Unrealized Gain	0	3
Unrealized Losses	(199)	(200)
Fair Value	$ 39,630	$ 33,874

Financial Instruments - Sched_2

Financial Instruments - Schedule of fair values of available for sale marketable (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Investments, Debt and Equity Securities [Abstract]
Due within one year	$ 156,419
Due in one to two years	67,591
Total	$ 224,010

Fair Value Measurement - Summar

Fair Value Measurement - Summary of Financial Assets Measured at fair value On Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	$ 289,120	$ 252,605
U.S. treasury securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	39,630	33,874
Corporate Bond Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	184,380	182,052
Cash and Cash Equivalents | Money Market Funds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	65,110	36,679
Level 1
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	92,730	62,685
Level 1 | U.S. treasury securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	27,620	26,006
Level 1 | Corporate Bond Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	0	0
Level 1 | Cash and Cash Equivalents
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	65,110
Level 1 | Cash and Cash Equivalents | Money Market Funds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds		36,679
Level 2
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	196,390	189,920
Level 2 | U.S. treasury securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	12,010	7,868
Level 2 | Corporate Bond Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	184,380	182,052
Level 2 | Cash and Cash Equivalents | Money Market Funds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	0	0
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	0	0
Level 3 | U.S. treasury securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	0	0
Level 3 | Corporate Bond Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	0	0
Level 3 | Cash and Cash Equivalents | Money Market Funds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Money market funds	$ 0	$ 0

Accounts Receivables & Allowa_3

Accounts Receivables & Allowance for Doubtful Receivables - Summary of changes in the Allowance for Doubtful Trade Receivables (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Beginning balance	$ 3,629	$ 4,266	$ 4,860	$ 3,724
Provision for bad debt	2,046	1,731	5,325	4,950
Write-offs	(3,254)	(2,977)	(11,442)	(8,635)
Recoveries	935	1,376	4,613	4,357
Net write-offs	(2,319)	(1,601)	(6,829)	(4,278)
Ending balance	$ 3,356	$ 4,396	$ 3,356	$ 4,396

Accounts Receivables & Allowa_4

Accounts Receivables & Allowance for Doubtful Receivables - Summary of changes in the Allowance for Doubtful Finance Receivables (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Beginning balance	$ 3,048	$ 971	$ 2,275	$ 636
Provision for bad debt	677	1,269	3,205	2,151
Write-offs	(1,148)	(1,021)	(3,300)	(1,598)
Recoveries	96	130	493	160
Net write-offs	(1,052)	(891)	(2,807)	(1,438)
Ending balance	$ 2,673	$ 1,349	$ 2,673	$ 1,349

Guarantees, Commitments and C_2

Guarantees, Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Commitments And Contingencies [Line Items]
Guarantee term	10 days	10 days
Sale price of vehicles with outstanding guarantee	$ 209.2		$ 160.3
Carrying amount of the liability	1.5		1.2
Accrued Other Liabilities [Member]
Commitments And Contingencies [Line Items]
Recognized probable loss contingency	$ 1.5		$ 1.4

Borrowings - Additional Informa

Borrowings - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
2021 Revolver [Member]
Debt Instrument [Line Items]
Maximum principal amount	$ 160
Interest rate	10.25%
Outstanding letter of credit	$ 1.6
Outstanding letter of credit issued	105	$ 75
Letter Of Credit [Member]
Debt Instrument [Line Items]
Maximum principal amount	20
First Amendment to Loan and Security Agreement [Member] | 2019 Revolver [Member]
Debt Instrument [Line Items]
Outstanding letter of credit issued		$ 0.5
First Amendment to Loan and Security Agreement [Member] | 2021 Revolver [Member]
Debt Instrument [Line Items]
Maximum principal amount	$ 160

Convertible Preferred Stock and

Convertible Preferred Stock and Stockholders' Equity - Additional Information (Details) - shares	Sep. 30, 2023	Dec. 31, 2022
Class Of Stock [Line Items]
Preferred stock, shares outstanding	0	0
Common Class B [Member]
Class Of Stock [Line Items]
Common stock, shares authorized	160,000,000	160,000,000
Common Class A [Member]
Class Of Stock [Line Items]
Common stock, shares authorized	2,000,000,000	2,000,000,000

Revenue - Summary of primary co

Revenue - Summary of primary component of Revenue, Level of Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Auction Marketplace Revenue [Member]
Disaggregation Of Revenue [Line Items]
Revenue	$ 51,390	$ 41,748	$ 159,911	$ 133,790
Other Marketplace Revenue [Member]
Disaggregation Of Revenue [Line Items]
Revenue	45,012	40,484	134,251	118,276
Data Services Revenue [ Member]
Disaggregation Of Revenue [Line Items]
Revenue	8,135	8,620	24,598	24,885
Marketplace And Service Revenue [Member]
Disaggregation Of Revenue [Line Items]
Revenue	$ 104,537	$ 90,852	$ 318,760	$ 276,951

Revenue (Additional Information

Revenue (Additional Information) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Contract Revenue	$ 4	$ 3.8
Accrued Other Liabilities [Member]
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Contract liabilities	$ 4.1	$ 4.1	$ 3.8

Stock-Based Employee Compensa_3

Stock-Based Employee Compensation - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($) shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense related to restricted stock	$ 3.7
Weighted average period of recognized term	1 year 4 months 24 days
Common stock to be issued and held in escrow | shares	620,877
Restricted Stock Units and Common Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense related to restricted stock	$ 105.8
Weighted average period of recognized term	2 years 7 months 6 days

Stock-Based Employee Compensa_4

Stock-Based Employee Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Share-Based Payment Arrangement, Noncash Expense [Abstract]
Number of options, outstanding, December 31, 2021 | shares	7,801,650
Number of options, exercised | shares	(1,080,034)
Number of options, forfeited | shares	(113,185)
Number of options, expired | shares	(16,946)
Number of options Outstanding, June 30, 2023 | shares	6,591,485	7,801,650
Number of options Exercisable, June 30, 2023 | shares	6,027,138
Weighted-average exercise price per share, outstanding, December 31, 2021 | $ / shares	$ 2.67
Weighted-average exercise price per share, exercised | $ / shares	3.31
Weighted-average exercise price per share, forfeited | $ / shares	7.25
Weighted-average exercise price per share, expired | $ / shares	4.73
Weighted-average exercise price per share, outstanding, March 31, 2022 | $ / shares	2.49	$ 2.67
Weighted-average exercise price per share, exercisable, March 31, 2021 | $ / shares	$ 2.17
Intrinsic value, outstanding, December 31, 2021 | $	$ 43,185
Intrinsic value, outstanding, March 31, 2022 | $	83,674	$ 43,185
Intrinsic value, exercisable, March 31, 2022 | $	$ 78,435
Weighted Average Remaining Contractual Term, Outstanding	5 years 1 month 6 days	6 years
Weighted Average Remaining Contractual Term, Exercisable	4 years 10 months 24 days

Stock-Based Employee Compensa_5

Stock-Based Employee Compensation - Summary of restricted stock unit (Details) - 2022 Restricted Stock Units [Member]	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of RSUs Outstanding, December 31, 2021 | shares	5,978,564
Number of RSUs, Granted | shares	4,545,164
Number of RSUs, Vested | shares	(2,132,397)
Number of RSUs, Forfeited | shares	(382,506)
Number of RSUs Outstanding, June 30, 2023 | shares	8,008,825
Weighted-Average Grant-Date Fair Value Outstanding, December 31, 2021 | $ / shares	$ 14.57
Weighted-Average Grant-Date Fair Value, Granted | $ / shares	14
Weighted-Average Grant-Date Fair Value, Vested | $ / shares	14.33
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares	13.54
Weighted-Average Grant-Date Fair Value Outstanding, March 31, 2022 | $ / shares	$ 14.36

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Effective Income Tax	0%	(1.00%)	(1.00%)	(1.00%)

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Schedule of Basic And Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Weighted-average number of shares of common stock - Basic	160,427,987	157,264,153	159,541,286	156,747,507
Weighted-average number of shares of common stock - diluted	160,427,987	157,264,153	159,541,286	156,747,507
Earnings Per Share, Basic, Total	$ (0.11)	$ (0.15)	$ (0.33)	$ (0.5)
Earnings Per Share, Diluted, Total	$ (0.11)	$ (0.15)	$ (0.33)	$ (0.5)
Common Class A [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Net loss attributable to common stockholders	$ (15,327)	$ (17,337)	$ (42,540)	$ (55,592)
Weighted-average number of shares of common stock - Basic	134,822,341	115,196,661	130,464,809	112,179,445
Weighted-average number of shares of common stock - diluted	134,822,341	115,196,661	130,464,809	112,179,445
Earnings Per Share, Basic, Total	$ (0.11)	$ (0.15)	$ (0.33)	$ (0.5)
Earnings Per Share, Diluted, Total	$ (0.11)	$ (0.15)	$ (0.33)	$ (0.5)
Common Class B [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Net loss attributable to common stockholders	$ (2,911)	$ (6,331)	$ (9,480)	$ (22,086)
Weighted-average number of shares of common stock - Basic	25,605,646	42,067,492	29,076,477	44,568,062
Weighted-average number of shares of common stock - diluted	25,605,646	42,067,492	29,076,477	44,568,062
Earnings Per Share, Basic, Total	$ (0.11)	$ (0.15)	$ (0.33)	$ (0.5)
Earnings Per Share, Diluted, Total	$ (0.11)	$ (0.15)	$ (0.33)	$ (0.5)

Net Income (Loss) Per Share -_2

Net Income (Loss) Per Share - Summary of Potentially Dilutive Shares Excluded from Computation of Net Loss Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Unvested RSAs, RSUs and Other Awards [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from computation of Net loss per share	2,368,186	583,344	2,099,410	636,468
Employee Stock Option
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from computation of Net loss per share	5,428,444	4,596,218	5,477,646	5,289,298
Employee Stock Purchase Plan [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from computation of Net loss per share	145,342	244,195	100,444	169,178

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($) $ in Thousands				3 Months Ended		9 Months Ended
	Aug. 22, 2023	Apr. 24, 2023	Feb. 22, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Selling, general, and administrative				$ 40,797	$ 34,701	$ 123,689	$ 106,897
Goodwill				$ 117,830		$ 117,830		$ 91,755
2022 Acquisition [Member]
Business Acquisition [Line Items]
Payments to acquire businesses, gross			$ 18,600
Finite-Lived Intangible Assets, Amortization Method			straight-line basis
Net Assets			$ 1,100
Finite-Lived Intangible Assets, Remaining Amortization Period			15 years
Business Combination, Acquisition Related Costs			$ 6,400
Goodwill			$ 13,500
2023 Acquisitions [Member]
Business Acquisition [Line Items]
Payments to acquire businesses, gross	$ 17,300	$ 12,500
Finite-Lived Intangible Assets, Amortization Method	straight-line basis	straight-line basis
Net Assets		$ 1,100
Business acquisition, net liabilities assumed	$ 3,500
Finite-Lived Intangible Assets, Remaining Amortization Period	15 years	15 years
Business Combination, Acquisition Related Costs		$ 5,900
Goodwill	$ 20,800	$ 5,400