https://www.cnbc.com/2023/02/28/rivian-rivn-earnings-q4-2022.html
Shareholder letter: https://www.sec.gov/Archives/edgar/information/1874178/000187417823000006/rivian_q4-2022xsharehold.htm
Electrical car startup Rivian Automotive reported combined fourth-quarter earnings and a lackluster manufacturing outlook after the bell Tuesday.
Shares of Rivian have been down by roughly 8% throughout prolonged buying and selling. The inventory closed Tuesday at $19.30 a share, up 4.6% for the session.
Right here’s how Rivian carried out within the interval, in contrast with analysts’ estimates as compiled by Refinitiv:
Adjusted loss per share: $1.73 vs. $1.94 estimated
Income: $663 million vs. $742.4 million estimated
The corporate reported an adjusted loss earlier than curiosity, taxes, depreciation and amortization of almost $5.2 billion in 2022, narrower than steerage of a $5.4 billion loss in November.
For 2023, Rivian forecast car manufacturing of fifty,000 autos. That will be roughly double final 12 months’s quantity however beneath expectations of roughly 60,000, as estimated by a number of Wall Road analysts.
“Provide chain continues to be the primary limiting issue of our manufacturing; throughout the quarter we encountered a number of days of misplaced manufacturing attributable to provider shortages. We anticipate provide chain challenges to persist into 2023 however with higher predictability relative to what was skilled in 2022,” the corporate stated in its letter to shareholders.
Rivian stated it expects to attain a constructive gross revenue in 2024. Web loss for the fourth quarter was $1.7 billion — a narrower end result than the $2.5 billion loss it reported a 12 months earlier. Quarterly income of $663 million jumped from $54 million within the year-earlier interval when the corporate had simply began making its first merchandise.
The outcomes comply with tough occasions for the electrical car startup which have included slower-than-expected manufacturing, sudden pricing strain and plans to put off 6% of its workforce in a bid to preserve money.
Rivian is specializing in ramping up manufacturing of its R1 truck and SUV in addition to an electrical supply van it builds for Amazon, its largest particular person shareholder.
As of the top of final 12 months, the corporate had about $12.1 billion in money remaining, down from $13.8 billion on the finish of the third quarter and $15.5 billion as of June 30. Capital expenditures for the fourth quarter have been $294 million in comparison with $455 million throughout the year-earlier interval.
Rivian stated whereas inflation has been a think about its provide chain, it is going to proceed to take steps to ramp up manufacturing and scale back materials prices by slimming down its engineering and car design, together with industrial cost-down efforts.
The corporate’s forthcoming R2 mannequin, for instance, will use a simplified meeting and sourcing course of to attain “a meaningfully decrease price construction,” CEO RJ Scaringe stated on an analyst name following the earnings report.
He added the automaker is “in a really completely different place with our provide chain immediately” relative to a 12 months in the past, which can assist the corporate execute on extra “aggressive price and pricing” measures.
“It gained’t essentially be a linear path over the course of the subsequent a number of quarters however we’ll begin to see these impacts as early as Q1 as we begin to scale back the fabric prices in our autos and the expertise introductions,” stated Chief Monetary Officer Claire McDonough.
