- Significant steps being taken to drive greater capital
efficiency
- Company reiterates path to Q4 2024 modest gross
profit
- During Q1 2024 R1S was best-selling EV in the US above
$70,000
Rivian Automotive, Inc. (NASDAQ: RIVN) today announced its first
quarter 2024 financial results. As previously announced, the
company produced 13,980 vehicles and delivered 13,588, exceeding
its outlook with a respective 49 percent and 71 percent increase
over the same period last year.
During the first quarter of 2024, Rivian unveiled its new
midsize platform which underpins R2, R3, and R3X. Rivian also had
announced its intention to begin R2 production at its facility in
Normal, Illinois. This is expected to enable start of production
for R2 in the first half of 2026 and save over $2.25 billion, as
compared to the original forecast of launching R2 production at
Rivian’s Georgia site.
Last week, the company announced an incentive package of up to
$827 million from the State of Illinois to expand the plant,
improve public infrastructure, and to create training programs for
Rivian’s workforce.
RJ Scaringe, Rivian Founder and CEO said:
“First-quarter results exceeded our outlook and set a strong
foundation for the remainder of the year as we focus on continued
demand generation, delivering cost and plant efficiency
improvements, advancing R2 development, and driving towards
profitability. We hit several milestones this quarter, including
producing our 100,000th vehicle in Normal, successfully navigating
the retooling upgrade, and unveiling our new midsize platform which
underpins the R2, R3, and R3X. It is great to see the incredible
support for our brand and upcoming products.”
The recently completed plant retooling upgrade in Normal,
Illinois introduced new technologies and cost-focused material
changes into the R1 vehicle platform. It also provides the
opportunity to improve manufacturing processes that enable the R1
line to run at an approximately 30 percent higher line rate.
Furthermore, Rivian also recently transitioned to a new zonal
network architecture reducing the number of electronic control
units in its vehicle by approximately 60 percent, taking
substantial costs out of its vehicles.
Financial Highlights:
The first quarter of 2024 gross profit per vehicle delivered was
$(38,784) which was negatively impacted by $9,346 per vehicle
delivered, primarily related to various supplier and other costs
incurred in advance of the new technology changes and parts
integration into the R1 platform as part of its cost of revenue
efficiency initiatives. As a result of the retooling upgrade, the
company expects significant improvement in the material and
conversion cost of its vehicles and remains confident in its path
to achieving modest gross profit in the fourth quarter of this
year.
Revenues:
Total revenues for the first quarter of 2024 were $1,204
million, primarily driven by the delivery of 13,588 vehicles. Total
revenues from the sale of regulatory credits were de minimis for
the quarter.
Gross Profit:
Rivian generated negative gross profit of $(527) million for the
first quarter of 2024 as compared to $(535) million for the first
quarter of 2023. Gross profit losses decreased primarily due to the
increased vehicle production and deliveries, reductions in
materials costs, and higher average selling prices. In addition,
the first quarter of 2024 includes $171 million of costs as part of
its cost of revenue efficiency initiatives primarily related to
liabilities incurred during the three months ended March 31, 2024
with suppliers and accelerated depreciation in advance of the
updates being made to our Normal Factory during the plant retooling
upgrade.
Operating Expenses and Operating Loss:
Total operating expenses in the first quarter of 2024 grew to
$957 million, as compared to $898 million in the same period last
year.
In the first quarter of 2024, the company recognized a non-cash,
stock-based compensation expense within operating expenses of $210
million as compared to $165 million in the first quarter of 2023
and depreciation and amortization expense within operating expenses
of $70 million as compared to $58 million in the first quarter of
2023.
Rivian experienced a loss from operations in the first quarter
of 2024 totaling $(1,484) million, as compared to $(1,433) million
in the same period last year.
Net Loss:
Rivian’s net loss for the first quarter of 2024 was $(1,446)
million as compared to $(1,349) million for the same period last
year.
Adjusted EBITDA*
Adjusted EBITDA* for the first quarter of 2024 was $(798)
million as compared to $(1,020) million for the same period last
year.
Capital Expenditures:
Capital expenditures for the first quarter of 2024 were $254
million, flat as compared to $283 million for the same period last
year.
Liquidity:
Rivian ended the first quarter of 2024 with $7,858 million in
cash, cash equivalents, and short-term investments. Including the
capacity under its asset-based revolving-credit facility, the
company ended the first quarter of 2024 with $9,053 million of
total liquidity.
For further information please see Rivian’s latest shareholder
letter at www.rivian.com/investors
The company will host an audio webcast to discuss its results
and provide a business update at 2:00pm PT / 5:00pm ET on Tuesday
May 7, 2024. The link to the webcast will be made available on the
company’s Investor Relations website at rivian.com/investors. After
the call, a replay will be available at rivian.com/investors for
four weeks. The letter is available on its investor relations
website (https://rivian.com/investors).
Condensed Consolidated Balance
Sheets
(in millions, except per share
amounts)
(unaudited)
Assets
December 31,
2023
March 31, 2024
Current assets:
Cash and cash equivalents
$
7,857
$
5,979
Short-term investments
1,511
1,879
Accounts receivable, net
161
389
Inventory
2,620
2,797
Other current assets
164
270
Total current assets
12,313
11,314
Property, plant, and equipment, net
3,874
3,830
Operating lease assets, net
356
379
Other non-current assets
235
211
Total assets
$
16,778
$
15,734
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
981
$
1,019
Accrued liabilities
1,145
1,018
Current portion of lease liabilities and
other current liabilities
361
364
Total current liabilities
2,487
2,401
Long-term debt
4,431
4,433
Non-current lease liabilities
324
345
Other non-current liabilities
395
486
Total liabilities
7,637
7,665
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 10
shares authorized and 0 shares issued and outstanding as of
December 31, 2023 and March 31, 2024
—
—
Common stock, $0.001 par value; 3,508 and
3,508 shares authorized and 968 and 994 shares issued and
outstanding as of December 31, 2023 and March 31, 2024,
respectively
1
1
Additional paid-in capital
27,695
28,070
Accumulated deficit
(18,558
)
(20,004
)
Accumulated other comprehensive income
3
2
Total stockholders' equity
9,141
8,069
Total liabilities and stockholders'
equity
$
16,778
$
15,734
Condensed Consolidated Statements of
Operations
(in millions, except per share
amounts)
(unaudited)
Three Months Ended March
31,
2023
2024
Revenues
$
661
$
1,204
Cost of revenues
1,196
1,731
Gross profit
(535
)
(527
)
Operating expenses
Research and development
496
461
Selling, general, and administrative
402
496
Total operating expenses
898
957
Loss from operations
(1,433
)
(1,484
)
Interest income
124
112
Interest expense
(38
)
(75
)
Other (expense) income, net
(1
)
2
Loss before income taxes
(1,348
)
(1,445
)
Provision for income taxes
(1
)
(1
)
Net loss
$
(1,349
)
$
(1,446
)
Net loss attributable to common
stockholders, basic and diluted
$
(1,349
)
$
(1,446
)
Net loss per share attributable to
Class A and Class B common stockholders, basic and diluted
$
(1.45
)
$
(1.48
)
Weighted-average common shares
outstanding, basic and diluted
930
978
Consolidated Statements of Cash
Flows
(in millions)
(unaudited)
Three Months Ended March
31,
2023
2024
Cash flows from operating activities:
Net loss
$
(1,349
)
$
(1,446
)
Depreciation and amortization
188
280
Stock-based compensation expense
183
233
Inventory LCNRV write-downs and losses on
firm purchase commitments
229
150
Other non-cash activities
2
53
Changes in operating assets and
liabilities:
Accounts receivable, net
(55
)
(228
)
Inventory
(781
)
(435
)
Other assets
(29
)
(81
)
Accounts payable and accrued
liabilities
22
113
Other liabilities
69
92
Net cash used in operating
activities
(1,521
)
(1,269
)
Cash flows from investing activities:
Purchases of short-term investments
—
(902
)
Maturities of short-term investments
—
550
Capital expenditures
(283
)
(254
)
Net cash used in investing
activities
(283
)
(606
)
Cash flows from financing activities:
Proceeds from issuance of capital
stock
3
2
Proceeds from issuance of convertible
notes
1,485
—
Other financing activities
(3
)
(4
)
Net cash provided by (used in)
financing activities
1,485
(2
)
Effect of exchange rate changes on cash
and cash equivalents
—
(1
)
Net change in cash
(319
)
(1,878
)
Cash, cash equivalents, and restricted
cash—Beginning of period
12,099
7,857
Cash, cash equivalents, and restricted
cash—End of period
$
11,780
$
5,979
Supplemental disclosure of non-cash
investing and financing activities:
Capital expenditures included in
liabilities
$
333
$
383
Capital stock issued to settle
bonuses
$
137
$
179
Right-of-use assets obtained in
exchange for operating lease liabilities
$
11
$
52
Reconciliation of Non-GAAP
Financial Measures
(in millions)
(unaudited)
Adjusted EBITDA1
Three Months Ended March
31,
2023
2024
Net loss
$
(1,349
)
$
(1,446
)
Interest income, net
(86
)
(37
)
Provision for income taxes
1
1
Depreciation and amortization
188
280
Stock-based compensation expense
183
233
Other expense (income), net
1
(2
)
Cost of revenue efficiency initiatives
—
127
Restructuring expenses
42
30
Asset impairments and write-offs
—
16
Adjusted EBITDA (non-GAAP)
$
(1,020
)
$
(798
)
1 The prior periods have been recast to
conform to current period presentation.
About Rivian:
Rivian (NASDAQ: RIVN) is an American automotive
manufacturer that develops and builds category-defining electric
vehicles and accessories. The company creates innovative and
technologically advanced products that are designed to excel at
work and play with the goal of accelerating the global transition
to zero-emission transportation and energy. Rivian vehicles are
built in the United States and are sold directly to consumer and
commercial customers. The company provides a full suite of services
that address the entire lifecycle of the vehicle and stay true to
its mission to keep the world adventurous forever. Whether taking
families on new adventures or electrifying fleets at scale, Rivian
vehicles all share a common goal — preserving the natural world for
generations to come.
Learn more about the company, products, and careers at
www.rivian.com.
Forward-Looking Statements:
This press release and statements that are made on our earnings
call contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements
contained in this press release and made on our earnings call that
do not relate to matters of historical fact should be considered
forward-looking statements, including without limitation statements
regarding our future operations, initiatives and business strategy,
our cost reduction strategy and expectations regarding cost
savings, our future financial results, vehicle profitability and
future gross profits, our anticipated LCNRV charges, the planned
use of our cash and cash equivalents, our future capital
expenditures, the underlying trends in our business, our market
opportunity, and our potential for growth, our production ramp and
manufacturing capacity expansion and anticipated production levels,
our expected future production and deliveries, our anticipated
production and timing of launching the R2 platform in Normal,
timing of construction at our Georgia site, scaling our service
infrastructure, our expected future products and technology and
product enhancements (including R2, R3, and R3X, as well as our
next generation RAN charger), and revenue opportunities. These
statements are neither promises nor guarantees and involve known
and unknown risks, uncertainties, and other important factors that
may cause our actual results, performance, or achievements to be
materially different from any future results, performance, or
achievements expressed or implied by the forward-looking
statements, including, but not limited to: our history of losses as
a growth-stage company and our limited operating history; we may
underestimate or not effectively manage our capital expenditures
and costs; we will require additional financing and capital to
support our business; our ability to maintain strong demand for our
vehicles and attract and retain a large number of customers; risks
relating to the highly competitive automotive market, including
competitors that may take steps to compete more effectively against
us, including with respect to pricing and features, and impact of
competition and macroeconomic conditions on product demand;
consumers’ willingness to adopt electric vehicles; we may
experience significant delays in the manufacture and delivery of
our vehicles; we have experienced and could continue to experience
cost increases or disruptions in supply of raw materials or other
components used in our vehicles; our dependence on suppliers and
volatility in pricing of components and raw materials; our ability
to accurately estimate the supply and demand for our vehicles and
predict our manufacturing requirements; our ability to maintain our
relationship with one customer that has generated a significant
portion of our revenues; we are highly dependent on the services
and reputation of our Founder and Chief Executive Officer; our
inability to manage our future growth effectively; our long-term
results depend on our ability to successfully introduce and market
new products and services; we may not succeed in establishing,
maintaining, and strengthening our brand; our focus on delivering a
high-quality and engaging Rivian experience may not maximize
short-term financial results; risks relating to our distribution
model; we rely on complex machinery, and production involves a
significant degree of risk and uncertainty; our vehicles rely on
highly technical software and hardware that could contain errors or
defects; we may not successfully develop the complex software and
technology systems needed to produce our vehicles; inadequate
access to charging stations and not being able to realize the
benefits of our charging networks; risks related to our use of
lithium-ion battery cells; we have limited experience servicing and
repairing our vehicles; the automotive industry and its technology
are rapidly evolving and may be subject to unforeseen changes, and
upgrades and adaptations to our vehicles may increase our costs and
capital expenditures and also require planned, temporary
manufacturing shutdowns from time to time; risks associated with
advanced driver assistance systems technology; the reduction or
elimination of government and economic incentives for electric
vehicles; we may not obtain government grants and other incentives
for which we may apply; vehicle retail sales depend heavily on
affordable interest rates and availability of credit; insufficient
warranty reserves to cover warranty claims; future field actions,
including product recalls, could harm our business; risks related
to product liability claims; risks associated with international
operations; our ability to attract and retain key employees and
qualified personnel; our ability to maintain our culture; our
business may be adversely affected by labor and union activities;
risks associated with the ongoing military conflict between Russia
and the Ukraine and in the Middle East; risks related to health
epidemics, pandemics, and other outbreaks; our financial results
may vary significantly from period to period; we have incurred a
significant amount of debt and may incur additional indebtedness;
our vehicles may not operate properly; risks related to third-party
vendors for certain product and service offerings; potential
conflicts of interest involving our principal stockholders or their
affiliates; risks associated with exchange rate and interest rate
fluctuations; breaches in data security, failure of information
security systems, cyber-attacks or other security or
privacy-related incidents could harm our business; risk of
intellectual property infringement claims; our use of open source
software in our applications could subject our proprietary software
to general release; our ability to prevent unauthorized use of our
intellectual property; risks related to governmental regulation and
legal proceedings; delays, limitations and risks related to permits
and approvals required to operate or expand operations; our
internal control over financial reporting; and the other factors
described in our filings with the SEC. These factors could cause
actual results to differ materially from those indicated by the
forward-looking statements made in this press release. Any such
forward-looking statements represent management’s estimates as of
the date of this press release. While we may elect to update such
forward-looking statements at some point in the future, except as
may be required by law, we disclaim any obligation to do so, even
if subsequent events cause our views to change.
*Non-GAAP Financial Measures
In addition to our results determined in accordance with
generally accepted accounting principles in the United States
(“GAAP”), we review financial measures that are not calculated and
presented in accordance with GAAP (“non-GAAP financial measures”).
We believe our non-GAAP financial measures are useful in evaluating
our operating performance. We use the following non-GAAP financial
information, collectively, to evaluate our ongoing operations and
for internal planning and forecasting purposes. We believe that
non-GAAP financial information, when taken collectively, may be
helpful to investors, because it provides consistency and
comparability with past financial performance and assists in
comparisons with other companies, some of which use similar
non-GAAP financial information to supplement their GAAP results.
The non-GAAP financial information is presented for supplemental
informational purposes only, should not be considered a substitute
for financial information presented in accordance with GAAP, and
may be different from similarly titled non-GAAP measures used by
other companies. A reconciliation of each historical non-GAAP
financial measure to the most directly comparable financial measure
stated in accordance with GAAP is provided above. Reconciliations
of forward- looking non-GAAP financial measures are not provided
because we are unable to provide such reconciliations without
unreasonable effort due to the uncertainty regarding, and potential
variability of, certain items, such as stock-based compensation
expense and other costs and expenses that may be incurred in the
future. Investors are encouraged to review the related GAAP
financial measures and the reconciliation of these non-GAAP
financial measures to their most directly comparable GAAP financial
measures.
Our non-GAAP financial measures include adjusted EBITDA defined
as net loss before interest expense (income), net, provision for
income taxes, depreciation and amortization, stock-based
compensation, other (expense) income, net, and special items. Our
management team ordinarily excludes special items from its review
of the results of the ongoing operations. Special items is
comprised of (i) cost of revenue efficiency initiatives which
include costs incurred as we transition between major vehicle
programs, cost incurred for negotiations with major suppliers
regarding changing demand forecasts or design modifications, and
other costs for enhancing capital and cost optimization of the
Company (ii) restructuring expenses for significant actions taken
by the Company, (iii) significant asset impairments and write-offs,
and (iv) other items that we do not necessarily consider to be
indicative of earnings from ongoing operating activities.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240507669462/en/
Investors: ir@rivian.com
Media: Harry Porter: media@rivian.com
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