Rivian Automotive Inc - Class A
Q1 2024 Earnings
Did RIVN Beat Earnings? Q1 2024 Results
Rivian delivered a mixed first quarter for 2024, beating revenue expectations while falling well short on the bottom line, as deep inventory write-downs and retooling costs weighed heavily on an otherwise operationally improving story. The electric truck maker posted revenue of $1.20 billion, up 82.2% year-over-year and modestly ahead of the $1.16 billion consensus estimate, but its loss per share of $-1.48 missed the $-1.17 analyst expectation by 26.50%, with a $328 million inventory write-down and $171 million in cost-of-revenue efficiency charges among the primary culprits. Vehicle deliveries of 13,588 units, up 71% year-over-year, underscored genuine demand momentum, yet gross loss per vehicle remained a steep $-38,784. On the strategic front, Rivian's decision to launch its R2 model at its existing Normal, Illinois facility rather than a new Georgia plant is expected to save over $2.25 billion and accelerate production timelines. Management reaffirmed full-year 2024 guidance of 57,000 units produced and $-2.70 billion in adjusted EBITDA, while expressing confidence in reaching modest gross profit by Q4 2024; the company also faces active securities class action litigation alleging it misled investors about demand and production targets.
- 71% year-over-year increase in vehicle deliveries to 13,588 units
- 49% year-over-year increase in vehicle production to 13,980 units
- Reductions in materials costs and higher average selling prices
- Improved adjusted EBITDA from $(1,020) million to $(798) million year-over-year
- 91% increase in demo drives quarter-over-quarter to over 28,000
“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.”
Rivian CEO, on the earnings call
Forward Guidance & Outlook
Rivian reaffirmed its full-year 2024 guidance of 57,000 total units of production and $(2,700) million in adjusted EBITDA. The company lowered its capital expenditures guidance to $1,200 million, a reduction of $550 million, due to the decision to launch R2 production in Normal, Illinois. Rivian expects cash, cash equivalents, and short-term investments to be sufficient to fund operations through the start of R2 production. The company remains confident in its path to achieving modest gross profit in Q4 2024, driven by material cost reductions, lower conversion costs, reduced depreciation expense, and growth in regulatory credit, software/services, and remarketing revenues. The retooling upgrade is expected to deliver approximately 30% higher R1 line rates and significant material cost improvements in the second half of 2024. Near-term Q2 production and cost of revenues will be negatively impacted by the April plant shutdown.
RIVN YoY Financials
RIVN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.