ACV Auctions Inc. (ACVA) shares surged 5.35% in pre-market trading on Thursday following the company's better-than-expected first-quarter earnings report. The online automotive marketplace provider demonstrated significant improvement in its financial performance, surprising analysts and investors alike.

For the quarter ended March 31, ACV Auctions reported adjusted earnings of 4 cents per share, a remarkable turnaround from the loss of 13 cents per share in the same period last year. This result significantly outperformed the mean analyst expectation of a 12-cent loss per share. The company's revenue also impressed, rising 25.4% year-over-year to $182.7 million, slightly above the analyst consensus of $182.07 million.

Looking ahead, ACV Auctions provided a positive outlook for the second quarter, projecting revenue between $193 million and $198 million. The company also reiterated its full-year 2025 revenue guidance of $765 million to $785 million, in line with analyst expectations. This strong performance and optimistic forecast have bolstered investor confidence, as reflected in the stock's pre-market rally. Additionally, Needham maintained its price target for ACV Auctions at $25.00 per share, further supporting the positive sentiment surrounding the stock.