Q4 2024 RB Global Inc Earnings Call
Speaker Change: Hello and welcome to the RB Global 4th quarter 2024 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a question and answer session and if you would like to ask a question during this time please press star 1 on your telephone keypad.
I wanted to provide an update on the strategic review, we conducted in 2024 and share how the new leadership team is shaping the vision RB globals future.
Speaker Change: At the heart of our company, we are defined by our commitments to our partners and customers and more importantly, our ability to execute those commitments.
Speaker Change: We recognize that the world around us is constantly evolving.
Speaker Change: As our partners needs and expectations. However, what remains unchanged is there a desire to work with a trusted partner, one who listens understands their challenges and takes a proactive approach to delivering solutions that drive superior business outcomes.
Speaker Change: This is the foundation of our growth strategy put our partners <unk> and over deliver on our commitments.
Speaker Change: By consistently doing this we will solidify our position as their trusted global partner for insights services and transaction solutions and of course, we will do this with an eye toward our operational efficiency and excellence.
Speaker Change: We see significant opportunities to drive transactions and grow our market share by creating a seamless and trusted experience for our sellers and buyers. We have three key areas of strategic focus.
Speaker Change: First we aim for premium price performance for the assets transacted across our omnichannel marketplace, while effectively accommodated in our partners' liquidity preferences. This is about managing supply and create and deep liquidity pools by expanding our global buyer base.
Speaker Change: We're doing this by cornerstone technology for merchandise assets at scale, and providing a diverse and thoughtful selective range of assets to meet each buyer's unique needs.
Speaker Change: Second we are focused on growing our enterprise partner base.
Speaker Change: That includes insurance company, and our automotive sector and large fleet owners in our <unk> sector.
Speaker Change: Our partners to increasingly rely on our expertise to enhance their profitability by optimizing the lifecycle of the asset they transact through us.
Speaker Change: The more effectively we can communicate and demonstrate our value upstream from the transaction the stronger our position will be an earn in more transactions from partners and gain in market share.
Speaker Change: This means helping insurance partners with the first notice of loss shortening total cycle time, and reducing advanced charges in CMT. This involves supporting partners with insight.
Speaker Change: Minimizing maintenance costs with smart equipped and streamline and asset transportation were very accurate.
Speaker Change: At the end of the day, it's about driving a quantifiable value to their P&L.
Speaker Change: Lastly, we remain focused on driving growth with our regional <unk> customers comprised of small and midsized businesses that highly value personalized engagement and relationships with our territory managers.
Speaker Change: By leveraging the expertise of our sales team as trusted advisors, we are confident in our ability to strengthen existing relationships and build new ones.
Speaker Change: As we optimize and expand our sales coverage, we are well positioned to capture additional market share and deliver sustained growth.
Speaker Change: We will enable all of this by continuing to focus on modernizing our technology capabilities investing in the development of our teammates and strategically deploying M&A to expand our capabilities and market reach.
Speaker Change: Looking back at 2024, we made significant progress on all of these enablers to accelerate growth I.
Speaker Change: I am proud of the advancements of our technology capabilities with the launch of RMB auction Dot com on a modern technology stack. This will be the cornerstone for efficient and scalable growth in the <unk> sector.
Speaker Change: We invested in our team and welcome several talented senior leaders to our organization include and Eric <unk>, Our CFO, Steve Lewis, our CFO and Nancy King our CTO.
Speaker Change: Lastly, we enhanced our omnichannel marketplace by acquiring a new channel <unk> bucket and technology enabled fixed price marketplace.
Speaker Change: Now, let's move to the business trends, we have been seeing recently.
Speaker Change: Although we are hearing more confidence and optimism from our partners and customers in <unk> <unk>.
Speaker Change: They continue to evaluate business conditions in the face of continued uncertainty in 2025.
Speaker Change: Much like last quarter.
Speaker Change: Would continue to describe the environment as wait and see.
Speaker Change: Or are the ideal partner to help the industry navigate its fleet management needs and either a slowdown where the customers execute a deep leading strategy or a reacceleration, where customers start purchasing new equipment and driving decisions on aged equipment.
We're focused on driving sustainable growth and continued to invest in our North American sales organization.
Speaker Change: Now, let's move to the automotive sector.
Speaker Change: I am proud of the team and pleased that we consistently delivered exceptional performance to all of our partners in the fourth quarter.
Speaker Change: All key SLA metrics remained strong at a very high level.
Speaker Change: Fourth quarter salvage industry volumes benefited from cat events, and the ongoing secular growth and loss ratios fueled by the favorable spread between repair cost inflation and use the local inflation in the fourth quarter DTC intelligence solutions estimated that the total loss ratio increased nearly two.
Speaker Change: 230 basis points to approximately 23, 8% compared to 21, 5% in the same period last year.
Speaker Change: We continue to attract new international buyers through our marketplace, achieving a record high percentage of vehicles sold to international buyers and our automotive sector that said, we're starting to cycle over some of the significant process and technology improvements from last year and are therefore more exposed to the weakness in the broader macro.
Speaker Change: With <unk>.
Speaker Change: Average selling prices of salvage U S insurance vehicles declined less than 1% and when excluding the impacts from cat declined approximately 2% year over year.
Speaker Change: I'll now pass the call to Eric to review, our financial performance and outlook.
Eric: Thank you Jim.
Eric: As I conclude my first full year as CFO I am proud of the financial discipline. We've instilled is the team. This past year, we have maintained a strong focus on operational efficiency strategically investing in long term growth opportunities.
Eric: And substantially reducing our leverage.
Eric: Total <unk> increased by 2%.
Eric: Automotive GTD increased by 4% driven by a 7% increase in unit volumes, partially offset by a decline in the average price per vehicle sold.
Eric: Excluding catastrophe related impacts our automotive sector GTA V would have declined by approximately 4%.
Eric: While unit volumes would have increased by approximately 1%.
Eric: Unit volume growth, excluding the impact of the cat in the quarter was driven by strong organic growth from existing partners.
Eric: Actually offset by the previously announced customer loss.
We expect to completely lap the volume loss associated with this customer in the second quarter of 2025.
Eric: CTV in the commercial construction and transportation sector decreased by 1% driven by a decline in the average price per lot sold partially offset by an 18% increase in lock volumes.
The average price per lot sold declined due to both asset mix and continued deflation in asset values asset mix headwind stemmed from lot volume growth from rental and transportation industries, where asset values are intrinsically at lower asps.
Eric: Excluding the impact of the Yellow Corporation bankruptcy, the <unk> decline in the commercial construction and transportation sector would have been approximately 2%.
Eric: By the end of the fourth quarter most of the unit volumes related to yellow had been sold.
Eric: Moving to service revenue service revenue increased by 8% due to a higher service revenue take rate and higher G. T V.
Eric: Service take rate increased approximately 110 basis points year over year to 21, 3%.
Eric: Driven by a higher average buyer fee rate and growth in our marketplace services.
Eric: Moving to adjusted EBITDA adjusted EBITDA increased 13% on the expansion in our service revenue take rate a higher level of GTA V and a higher contribution from inventory returns.
Eric: Our dedication to efficiency and disciplined execution was evident again in the fourth quarter as adjusted EBITDA as a percentage of CTV increased to eight 4% compared to seven 7% the prior year.
Eric: Adjusted earnings per share increased by 16% on higher operating income and lower net interest expense, partially offset by a slightly higher adjusted tax rate.
Eric: Our solid operational performance and continued debt Paydown drove a 110th of a turn decline in our adjusted net debt to trailing 12 months adjusted EBITDA to approximately one six times compared to the third quarter of 2024.
Eric: Moving to the outlook, we wanted to provide our initial thoughts for 2025.
Eric: We expect full year gross transaction values to grow between zero and 3% year over year.
Eric: As we continue to gain market share in 2025.
Eric: Note that we will face the most challenging comparison in the first quarter of 2025 and <unk>.
Eric: Expect consolidated GTP to decline mid single digits year over year.
Eric: We remain dedicated to our operational excellence program, while prudently investing in growth initiatives.
Eric: We expect full year adjusted EBITDA between $1 32 billion and $1 $38 billion.
Eric: Or approximately 1% and 6% year over year growth.
Eric: We also expect our full year 2025, GAAP and adjusted tax rate to be consistent with 2024 and be between 25 and 28%.
Eric: Moving to Capex. We currently expect full year capital expenditures, which include <unk> net of proceeds on disposals and additions to intangible assets to be between 350 and 400 million.
Eric: This is a step up compared to 2024, mainly due to our investment to support our greenfield expansion in Australia selectively acquiring property to optimize our portfolio, while supporting volume growth and continued.
Eric: <unk> investment in technology.
Eric: With that let's open the call for questions.
Speaker Change: Thank you if you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: With try your question simply press Star one again, please ensure you're not on speaker phone and that your phone is not on mute when copapod. Thank you.
Speaker Change: Your first question comes from Stephen Hanson with Raymond James Your line is open.
Stephen Hanson: Yes. Good afternoon, guys. Thanks for the time appreciate it.
Speaker Change: Great.
Speaker Change: Just a quick question on the market share gains that you described I mean, how do you feel about.
Speaker Change: Progressing that through the balance of 25, you spoken to the wins already that are under your belt do you expect additional wins through the balance of this year.
Speaker Change: Large and material or is it going to be small incremental wins as you go.
Speaker Change: Hey, Stephen it's Jim Great question.
Speaker Change: I'm just going to stick to what's in our control we are going to be very focused on providing the highest level of service to our partners and more specifically the team is very focused on especially in this environment, how do we add value to our partners. So they can see it in their P&L and that's what the team.
Speaker Change: <unk> is really focused on and we believe by staying focused on that that's going to produce the outcome, which we won as additional market share.
Speaker Change: But the fully answer your question. The one part of the equation is not in my control of when someone says yes.
Speaker Change: We're going to stay focused on is what is in our control and make sure we keep delivering value to our partners.
Speaker Change: Okay. That's fair, Thanks, and I'll just ask one more here and then jump back in the queue, but just curious and Jimmy you mentioned a couple of different items.
Speaker Change: In terms of capital allocation priorities and one of them was M&A I mean, where does that land in sort of a collective priority list for you as it stands it sounds like you've got a bunch of things you want to invest in just curious if M&A overrides the potential for buybacks at some point in the future as well.
Speaker Change: And Eric do you want to take that one.
Speaker Change: As we laid out a couple of quarters ago, our capital allocation framework. We've always had M&A listed on there my focus for most of <unk> 24 was to get within our net debt to adjusted EBITDA range is I.
Speaker Change: Later on this call were at one six times. So we're in a good place.
Speaker Change: So it's part of our strategy. It always has been as we laid out earlier in 2004. So we continue to look at M&A opportunities but.
Speaker Change: It's an and statement not in or we will continue to look at.
Speaker Change: Paying down debt, we'll look at M&A and we'll look at reinvesting in the business and organic opportunities like I described on the capital allocation side. So we'll look at technology and continue to look at properties.
Speaker Change: I appreciate the color thanks, guys.
Speaker Change: The next question comes from Michael Feniger with Bank of America. Your line is open.
Michael Feniger: Yeah, Thanks for taking my questions.
Michael Feniger: On the on the G television growth outlook, you mentioned, obviously Q1 to a tough comp.
Michael Feniger: Is there any help you can kind of give us between the split of of auto which it seems like you guys are gaining share versus the commercial transportation clearly you guys have a tough comp you're cycling through the yellow still a good performance in Q4, just curious I know you guys have Orlando and a few day.
Michael Feniger: As you are seeing how that build I'm, just curious what youre kind of expecting with some of the puts and takes how we should kind of think of that CTV makeup right there.
Speaker Change: Yes, I'll start and Michael and then I'll pass it over to Eric to add any more color if he would like let.
Speaker Change: Let me just start with automotive first just as a reminder.
Speaker Change: Carrier loss that we announced a little bit over a year ago. This is the last quarter.
Speaker Change: That we have to deal with that conversation and then all the other gains that we talked about start to kick in so I think we feel really good about the trajectory of automotive of where it is.
Speaker Change: When you get into <unk>.
Speaker Change: Along with yellow just want to remind the group and this really goes back to when Covid created.
Speaker Change: Very erratic supply chain and equipment wasn't getting produced and then a couple of years later equipment new equipment are produced and then there was a lot of disposal.
Speaker Change: And with the very large strategic accounts, we have we got the benefit over a year ago that disposal now we're going up against it and I don't consider that.
Speaker Change: I think about it like yellow it was really the Covid was a onetime event that happened we got the benefit so to me when you really look over two years, you kind of get a normalized growth rate that you would expect for this sector and Thats. What you will see so thats why were just calling it out because they are very unique things that have happened over that time period, and then when we start looking into the back.
Speaker Change: Have a kind of starts to look normal without those things, we still have yellow that we have to deal with for the whole year, but that starts to become less as you go out the year. Eric is there anything you would like to add I think jamie's recovery. Okay. Thank you Jim Jim If I could just squeeze one more in I love to get your sense of what you're hearing.
Speaker Change: On the auto side, obviously, you guys are gaining share which is what you can control. There's just a lot of headlines around tariffs.
And what that might mean for the auto side, just you know.
Speaker Change: Is there any impact how that would flow through to the salvage side are you hearing that come up with buyers or sellers.
Speaker Change: <unk> in fact of what tariffs might mean to two to the new trucks, new automobile side to how that might flow through the salvage or maybe there really isn't an impact I'd just love to get that sense.
Speaker Change: First we'll just start with as we think about the tariffs first between Mexico, and Canada everything got delayed rate. So of course, we're still working through with our customers and our partners.
Speaker Change: Would that mean, if something happened I think the great thing about our marketplace no matter, if it's the <unk> or the automotive side. There was a need for these assets and it's really up to our team with insights and data how do we help them navigate this world because there is a need for these assets.
Speaker Change: As we go through it so we're going to be very focused on what's really going to happen how do we navigate it how do we use all the data and insights and again, what we want to get back to is making sure we're adding value to our partners no matter what environment, we have and the one benefit we do have with RV global is being a global company.
Speaker Change: We have access to a lot of the liquidity and a lot of markets and a lot of different things that we can help our partners navigate through this time and I think the one thing that we hear in the most apprehension about from the automotive side, our partners really automotive parts.
Speaker Change: What we hear more of the concern of what's going to happen to the supply chain.
Speaker Change: If tariffs get enacted versus the salvage car itself.
Speaker Change: But Eric Sameer anything from either you that you'd like to add.
Speaker Change: Okay.
Speaker Change: That is thank you.
Speaker Change: Got it.
Speaker Change: The next question comes from Craig Kennison with Baird. Your line is open.
Craig Kennison: Hey, Good afternoon, Jim you mentioned in the <unk> business kind of a wait and see market and I think that was an appropriate description last quarter as well I'm wondering what you see as the potential trigger to change the nature of this market so that.
Speaker Change: Transactions start to flow a little better.
Speaker Change: Yeah look for us.
Speaker Change: We're constantly in communication with our partners and I think interest rates, not really coming down farther where I think everyone would I hope there would've been some more cuts, which whether then attracted okay do I invest in new equipment.
Speaker Change: Going through it waiting to see with tariffs I think some of our partners are waiting to see these.
Speaker Change: These mega projects as they come to fruition, what's going to happen with the New administration I think every one.
Speaker Change: Has hope of what's going to happen, but like all of US we have to manage our balance sheets in our cash flow and the great thing for our business. We realize we're not going to control their decision of when they made the decision to do dispositions, but again, we're going to add value no matter. If it's data insights if its transportation.
Speaker Change: Services inspections appraisals everything we can do to help them optimize their P&L when theyre ready for dispositions and I think we showed it when COVID-19 happened and all that new equipment came in and they had to dispose of equipment. I don't think there was any one else with our scale that could help them in that time to manage premium priced.
Speaker Change: Get this through.
Speaker Change: The auction channels that we have so I think we showed when someone is ready to make the decision we're the right partner.
Speaker Change: To be able to help them with it so thats, what we stay focused on.
Speaker Change: Yes, thanks, and maybe as a follow up it looks like the federal government is taking a harder look at efficiency through delusion Im curious if youre seeing any uptick in activity on your platform as it relates to potential rfps or projects associated with assets that just may not be.
Speaker Change: It anymore.
Speaker Change: Look it's a hard question right because when you think about the categories on a large scale, we definitely see the surplus items in.
Speaker Change: And different brands that we serve that fit that but I wouldn't call. It anything abnormal right at this point yet.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you.
Speaker Change: Once again, ladies and gentlemen, it is star one to ask a question.
Speaker Change: Your next question comes from Gary person sorry.
Pascal: Pascal P&L with Barrington Your line is open.
Hi, good afternoon, Jim and Eric.
Speaker Change: Jim since we're almost over a year into this with the IAA.
Speaker Change: A transaction can you give us some idea of how much you reduce the cycle times and how much you've increased the salvage returns for your customers on average.
Speaker Change: Yeah, we're not going to go to specific metrics, we actually issue a quarterly.
Speaker Change: API report to all insurers insurance partners that explain this.
Speaker Change: I would just say to this group is we are very confident that we are going to consistently over performed to the SLA that we've committed to to our partners and then we're going to be relentless we're not going to stop we're going to continue to drive up those numbers and we're going to innovate and look for ways to do it but I just want to share our comp.
Speaker Change: <unk>, we're about a year into issuing to the global insurance space No matter. If you do business with US if you don't we issue it to all the leaders of the insurance companies and just to create transparency and to show our confidence of our performance and I believe it's very consistent performance over the last 18.
Speaker Change: Months that I'm very proud of the team.
Speaker Change: Okay.
Speaker Change: Thats helpful.
Speaker Change: And then just in terms of your international buyers of salvage.
Speaker Change: How will these tariffs that are being floated around or whatever they are they are put in place would that be much of an impact to them I guess I guess, what I'm getting at with the reciprocal tariffs there was.
Speaker Change: A lot of noise about the differential on the tariff.
Speaker Change: <unk> car imported into Europe versus the European car imported into the United States, meaning new cars, but.
Speaker Change: Are there really is there really is the potential for onerous tariffs on salvage that's that's exports out of this country.
Look it's a hard question for us to navigate since I don't think anyone has been really clear about what assets and what things are part of the tariffs. So it's very hard to really give you a detailed answer again our belief is these assets are needed.
Speaker Change: And what we worry more about is probably the short term impact in the long term, we probably think of these as a tailwind as you think about price in AOSP or what it means to it but again, what we want to make sure. We do with our partners is we need to show value for them in their P&L and we know we can navigate this environment from a glue.
Speaker Change: <unk> base.
Speaker Change: With the footprint that we had were one of the few that are truly global no matter, if it's Europe, Mexico, Canada and to navigate this with our partners. So I think it's more short term and long term I think there could be a tailwind as we think about what happens to price.
Speaker Change: Okay. Thank you.
Speaker Change: Yeah.
Speaker Change: Thanks, Gary.
Speaker Change: The next question comes from Maxim Sanchez with MBS. Your line is open.
Speaker Change: And gentlemen.
Maxim Sanchez: Hey, how are you Jim.
Speaker Change: But I was wondering if you don't mind going back to the first point of the strategy.
Speaker Change: The desire to achieve premium price performance across channels.
Speaker Change: Maybe building a little bit in terms of what exactly going to be doing from an operational perspective in order to achieve that.
Speaker Change: Yes.
Speaker Change: The one thing that we take very serious from all of our partners is how do we continue to.
Speaker Change: Innovate and drive what we call premium price, but also if you are a buyer in our marketplace. We want to make sure you have all the information and data you need to make a true decision to have confidence in what you are purchasing and so we know it's important in the marketplace. So we look at different auction channels.
Speaker Change: And we try to balance the liquidity and the time you need for cash along with Okay. Asp's. So with all of our channels. If you want to be in <unk> marketplace, where we're kind of put a buy now price and negotiate for you and if you have a long period of time, we know that channel can produce.
Speaker Change: A higher percent than if you're in a Ritchie brothers live event, and it's an unreserved auction, but the one thing with the Ritchie live event, you know youre going to get liquidity right. So we look at it on a liquidity scale to price scale and we actively listen to our partners of what need do you have and how do we help you solve it.
And the boom in bucket transaction is a great example of an innovation of how do we help build another marketplace to drive a higher price.
Speaker Change: So we're really our auction channels, how we market, how we bring new buyers to the marketplaces that we serve and then making sure. The buyers. They have the most accurate information and description for any equipment or autos and our channel and a good example in auto we added trim level data.
Speaker Change: To all of our automobiles I think we're over 95% you actually get the right description of that trend and that trend and we're the first ones to do that which we have seen it added to our ASP. So they're just examples of the things we constantly think about.
Speaker Change: Okay. No that's great color and then one quick question for Eric If I may in terms of the Capex investments how should we think about sort of the incremental ROI. On this is this to support future growth or is it to support.
Speaker Change: Already.
Speaker Change: So one market share and you have to enable those investments to support those clients how should we think about this thank you.
Speaker Change: Yes.
Speaker Change: I would say its both of the above is some of it is existing looking at opportunities where it makes sense, we would look to purchase some some some properties.
Speaker Change: As I articulated on the remarks, we won the Australia automotive business, we're really excited about that opportunity, but that comes with some incremental investment, but again, we're excited about that win.
Speaker Change: And that opportunity. So it's really a combination of the things above on the tech side.
Speaker Change: We have Nancy onboard now we are continuing on our path to improve our technology in.
Speaker Change: Improve the experience for our customers. So we're excited about those investments and they all.
Speaker Change: Have a lens that we look at it with a return on investment analysis.
Speaker Change: I'd just add to Eric's point, when you think about Australia.
Speaker Change: Yes, we got our first win but as you can imagine this investment is based on multiple wins that we expect to get over a period of time to really make this investment get down to the ROI that we won.
Speaker Change: Getting number two player to say, yes was a great team effort and again very proud of the team, but our expectation as we look five years out we expect that it would be more wind. So we get the ROI that we want.
Speaker Change: Okay excellent color. Thank you so much.
Speaker Change: Okay.
Speaker Change: The next question comes from Stephen Hanson of Raymond James Your line is open.
Speaker Change: Oh, Hey, guys. Thanks, just curious Jim you referenced in the past few other initiatives one being hiring additional sales reps to broaden your territory REIT sure Youre reach I guess from.
Speaker Change: The origination standpoint can you just wanted to give an update as to how that strategy has been going from a market share gains perspective, yeah.
Speaker Change: Yes.
Speaker Change: It's going really well, we feel really comfortable what we want to get better at is when you hire someone how do you get them up to speed as quickly as possible right.
Speaker Change: So we just brought in someone new on our HR team someone who I worked with before and my collision days I feel really good that is going to help our team get up to speed, but we see a great ROI in the program and you know.
Speaker Change: But I feel really good about is as we get really efficient at bringing people in and getting them up to speed. There are areas, where we know we can still add people to take market share. So we're going to stay focused on our program, but we feel really good about the ROI that we get and like I said, what we have to get better at is how do you get someone up to speed as quickly as possible.
Speaker Change: <unk>.
Speaker Change: Okay. That's helpful. And then just the last one for me is just I think it's I'm not sure how fair it is but <unk> been criticized in the past with your cat performance. It sounds like your comments here today suggest youre SLA is uncapped performance have been meeting or exceeding most expectations I mean does that takeaway.
Speaker Change: The endurance you've had in the past on winning market share back I mean, do you view that as a step change forward I guess is the quest.
Speaker Change: And in terms of your ability to win new business and performing well on cat.
Speaker Change: No great question and kind of how I would look I wasn't here for some of the.
Speaker Change: Perceived issues that <unk>.
Speaker Change: People put on IAA shoulders, but the one thing I can tell you since I've been here when I look back at some of the data.
Speaker Change: I believe IAA has performed very well in those cats.
Speaker Change: I know there was a partner issue in the past and so for me when I'm really focused on for that partner is to show how consistent and reliable our services for this specific season that we just passed the E. Mails I got from our current partners about our performance and how well the team did I'm very.
Speaker Change: Proud of it.
Speaker Change: Two of us and I'm willing to put our performance up against everyone. In again. The one thing that we did is we immediately E mailed out our performance results to everyone. So everyone in the industry you can see how well we perform and how we did perform they can choose that they thought it was well or not but I consider that we did really well so I don't think.
Speaker Change: There should be any doubt in anyone's mind that if it's the daily business of process and salvage or a cat event that there shouldn't be any worry.
Speaker Change: Can perform or not.
Speaker Change: But again some of that is up to other people to make that decision and that my end, but I feel really good about the transparency that we have done.
Speaker Change: For this whole year and this cat event and I believe the team did a great job this year.
Speaker Change: I appreciate the color guys. Thanks.
Speaker Change: The next question comes from Michael Feniger with Bank of America. Your line is open.
Michael Feniger: Hey, guys. Thanks for letting me jump back on I, just wanted to ask the SG&A I think it was down year over year at least on the reported number while GDP was up I'm just curious.
Speaker Change: I know you guys are investing back in the business is there anything you want to flag.
Speaker Change: On the cost line that we should be aware of and just lastly.
Speaker Change: Jim I'm, just curious obviously great performance this year on the take rate as we think about 2025, what do you guys kind of embedding in that and then outlook are you assuming that take rate.
Stays where it is is there assumption that there will be an increase in buyer fees or incremental growth from market marketplace services anything you guys have put into place early this year that is driving that take rate just anything you can kind of help us out on that part would be great. Thanks, everyone.
Speaker Change: Now let me start at a high level, then I'll pass it to Eric if he wants to add any more detail and we have.
Speaker Change: We're very disciplined.
Speaker Change: Take rate fee.
Speaker Change: The new process that we do every single year and we follow that again this year.
Speaker Change: So I'm not going to get into any specifics.
Speaker Change: Of what do we have in our forecast or our assumptions, but we follow a very disciplined process that we implement typically at the first of the year than we do evaluations as we go throughout the year to see if any adjustments need to be made.
Speaker Change: Eric do you have any other fee or.
Eric Sameer: Conversation not on <unk>.
Speaker Change: Yes, I think on the SG&A side Youre first question there.
Speaker Change: As I came on board and Jim shares. This philosophy right, we're going to continue to focus on.
Speaker Change: Managing our operating efficiency while over delivering.
Speaker Change: Against our partners.
Speaker Change: Expectations. So I think the SG&A performance is just in line with that continuous discipline that we've instilled in the organization to.
To make sure that we manage our cost effectively but also make sure we invest in the business. We just talked about the sales force expansion and how we are.
Speaker Change: Continuing that effort and are happy to happy to do that so it's this balance is making sure we.
Speaker Change: Remove cost that don't need to be there, but also continue to invest in the business and that is going to be a discipline that will continue.
Speaker Change: Under my tenure and I'm sure under agenda.
Michael Feniger: Michael I would just add.
Speaker Change: <unk> is just to remind the group.
Speaker Change: The way RV global became RV global is through a lot of integration a lot of acquisitions that kind of happened over time. So we're really pushing our team to Eric's point is making sure we're up.
Speaker Change: We're running this business very effectively and efficiently and we're going to be relentless with that we're going to keep going.
Speaker Change: Until we feel like we really have a very effective efficient organization with a structure roles and responsibilities.
Speaker Change: It's something we're never going to not focus on it right. Even if we think we're the best and where optimal there is always going to be a push to how do we get better at what we're doing from an efficiently but to Eric's point. The one thing we're never going to lose is we have to over deliver on our commitments to our partners and we have to add value in their P&L, what makes me feel.
Speaker Change: Really good is when we go into our partner for any kind of quarterly review and they tell me. They can see what we're talking about in European <unk> and I know that that's when I know I feel really good about what the team is doing but we're going to be relentless to make sure. We operated a very efficient business and brighter wrong and some of the things in our favor is when you grow.
Speaker Change: By acquisition Engineering, all we are a company that tends to give you the ability to have some of that opportunities in front of it.
Speaker Change: This concludes the question and answer session I will turn the call to CEO, Jim Clemmer for closing remarks.
Speaker Change: Thank you so much and just wanted to thank everyone for their appreciate their participation. We really do appreciate it the one thing I would be remiss is.
Speaker Change: The executive team is down here in Orlando, we are at the World famous Orlando auction on that construction transportation side of the business. This week is always an exciting week, we just had our customer appreciation event last night and probably the most well attended since I've been here and probably in the history of the.
Speaker Change: Company, but when you have a week like this with the amount of <unk>, we're going to process in a very short period of time I just wanted to thank all of our teammates. Thank you for all your hard work. It is very much appreciate it and then the great thing is after this week next week, we turned our attention on the automotive side IAA.
Speaker Change: Has the industry event next week, where we will see a lot of our partners and get to talk about 'twenty four and then talk about 25 innovation and what's to come and how we're going to add value. So I just wanted to thank all of our teammates. Thank you for all your hard work, we really appreciate it and we're going to keep it going so thank you so much and everyone have a great night.
Speaker Change: This concludes today's conference call. Thank you for joining you may now disconnect.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Okay.