Rivian (RIVN) hit its gross revenue objective in This fall, now what?

Rivian (RIVN) hit its objective of reaching a optimistic gross revenue within the fourth quarter. The EV maker launched its fourth-quarter earnings after the market closed on Thursday. Right here’s a full breakdown of Rivian’s This fall 2024 financials.

Rivian achieves first gross revenue in This fall 2024 earnings

Yesterday, in our This fall earnings preview, we famous that the largest factor traders will likely be in search of is that if Rivian will obtain a optimistic gross revenue because it has guided all 12 months.

Rivian hit its objective, posting a gross revenue of $170 million within the fourth quarter, a $776 million enchancment from This fall 2023. Of which, $100 million was from auto gross sales, and the opposite $60 million was from software program and providers.

Decrease prices, together with per automobile delivered, drove the achievement. Along with plant upgrades, Rivian noticed a noticeable price enchancment after launching its second-generation R1 fashions.

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Rivian posted whole fourth-quarter income of $1.73 billion, simply topping Wall St expectations of $1.4 billion. Complete automotive income was $1.52 billion, primarily from the 14,183 automobiles Rivian bought within the quarter. Rivian additionally generated $299 million from the sale of regulatory credit and $484 million from software program and providers.

• Rivian This fall 2024 Income: $1.73 billion vs $1.4 billion anticipated
• Rivian This fall EPS loss: 0.70 loss per share vs 0.68 loss per share anticipated

CEO RJ Scaringe mentioned, “This quarter, we achieved optimistic gross revenue and eliminated $31,000 in automotive price of products bought per automobile delivered in This fall 2024 relative to This fall 2023.”

Rivian generated $110 million in automotive gross revenue within the quarter in comparison with a lack of $611 million in This fall 2023. For the complete 12 months, Rivian generated a damaging automotive gross revenue of $7 million, an enchancment from the $12 million loss in 2023.

The EV maker produced 49,476 automobiles at its Regular, IL plant final 12 months and delivered 51,579. That features the R1S SUV, R1T pickup, and electrical supply van (EDV) for Amazon. Earlier this month, Rivian additionally opened orders for its Industrial Van for purchasers exterior Amazon.

Rivian posted a internet lack of $743 million within the fourth quarter, down from an over $1.5 billion loss in This fall 2023. For the complete 12 months, Rivian posted a internet lack of $4.75 billion, down from $5.43 billion in 2023.

The subsequent development stage

In the course of the fourth quarter, Rivian additionally closed its EV three way partnership with Volkswagen. The deal is price as much as $5.8 billion, of which Rivian says $3.5 billion is predicted to be obtained over the following few years. Rivian will provide its EV structure and software program for Volkswagen’s next-gen fashions.

The primary will likely be Rivian’s midsize R2, a smaller, extra reasonably priced electrical SUV. It can begin at round $45,000, or practically half the present R1S ($77,700) and R1T ($71,700).

Rivian plans to start R2 manufacturing in Regular early subsequent 12 months, nevertheless it expects to considerably scale up with its new manufacturing plant in Georgia.

Though it closed its mortgage settlement with the US DOE for as much as $6.6 billion proper earlier than Trump took workplace, Georgia Gov Brian Kemp mentioned this week he’s not sure the place the funding stands.

Rivian remains to be assured the funds will likely be obtainable after they draw on them subsequent 12 months. The plans embody constructing the plant in two phases, every including 200,000 items of capability. Rivian mentioned the R2 and even smaller R3 are “vital drivers within the firm’s long-term development and profitability.”

The corporate mentioned on Thursday that the DOE mortgage and capital from the VW partnership, along with its present money and equivalents, “is predicted to offer the capital assets to fund operations via the ramp of R2 in Regular, in addition to the midsize platform in Georgia—enabling a path to optimistic free money movement and significant scale.”

Rivian stays targeted on chopping prices, bettering effectivity, and launching its mass-market R2 electrical SUV.

Scaringe mentioned, “I couldn’t be extra enthusiastic about R2, and I consider the mixture of capabilities and price efficiencies, together with the superb stage of pleasure from clients, will make R2 a really transformational product for Rivian.”

Regardless of this, Rivian expects decrease deliveries of between 46,000 and 51,000 in 2025 on account of exterior components, together with modifications in authorities insurance policies and rules. After delivering extra EDVs to Amazon in This fall, Rivian expects decrease quantity in 2025

The corporate expects an adjusted EBITDA loss between $1.7 billion and $1.9 billion, with Capital Expenditures of $1.6 billion to $1.7 billion.

Rivian ended the quarter with $7.7 billion in money and equivalents. Together with different capital, the corporate ended the 12 months with barely over $9 billion in liquidity.

Verify again for extra updates from Rivian’s fourth-quarter earnings name. We’ll put up updates under.