- Company reaffirms all aspects of guidance for the
year
- Announced technology joint venture with Volkswagen Group
with a total deal size of up to $5 billion
Rivian Automotive, Inc. (NASDAQ: RIVN) today announced its
second quarter 2024 financial results, reaffirming all aspects of
guidance for the year. During the second quarter, the company made
significant progress driving greater cost efficiency, improving its
products, further strengthening its balance sheet, validating the
differentiated nature of its technology stack, and establishing new
business opportunities. Execution during the quarter was strong
with the completion of the retooling upgrade at the company’s plant
in Normal, IL. As previously reported, the company produced 9,612
vehicles and delivered 13,790.
In June, Rivian and Volkswagen Group announced their intention
to form an equally controlled and owned joint venture (JV) to
create next-generation electrical architecture and best-in-class
software technology. The partnership is anticipated to accelerate
the development of software for Rivian and Volkswagen Group. It is
planned to allow both companies to combine their complementary
strengths and lower cost per vehicle by increasing scale and
speeding up innovation globally. Rivian’s proven in-market zonal
hardware design and integrated technology platform will serve as
the foundation for future software development in the JV that will
be applied to both companies’ electric vehicles. As part of the
deal, Volkswagen Group has invested an initial $1 billion in
Rivian, with $4 billion in planned additional investment, for a
total expected deal size of $5 billion.
RJ Scaringe, Rivian Founder and CEO said:
“The second quarter has been a defining one for Rivian. We have
demonstrated strong execution during the quarter with the plant
retooling upgrade and launch of second generation R1 vehicles. The
changes we made to the R1 platform have allowed us to reduce
material and manufacturing costs, while simultaneously improving
performance and capabilities. As a testament to our
industry-leading technology stack, we also recently announced our
proposed JV with Volkswagen Group. The technical workstreams to
prepare the integration of Rivian electrical architecture and
software technology stack into Volkswagen Group products are moving
along very well, and we expect to close the joint venture in the
fourth quarter of this year. The output from our joint venture will
see Rivian’s technology in vehicles all around the world, helping
to create more consumer choice and speed up the transition away
from fossil fuels.”
During the second quarter, the company introduced and started
deliveries of the second generation R1 vehicles. The new R1
includes hundreds of design, engineering, and performance upgrades.
These upgrades were made while also realizing significant
improvements throughout the vehicle, positioning the platform for
long-term profitability. Rivian also introduced two new in-house
motor configurations; the Tri-Motor and the Quad-Motor. All motors
on Rivian vehicles are now designed, engineered, and manufactured
fully in-house. When compared against Rivian’s first generation
outsourced Quad-Motor system, the new Ascent Quad and Tri-Motor
configurations are significantly lower in cost, quicker, and
provide superior range.
Financial Highlights:
Revenues:
Total revenues for the second quarter of 2024 were $1,158
million, primarily driven by the delivery of 13,790 vehicles. Total
revenues from the sale of regulatory credits were $17 million for
the quarter.
Gross Profit:
Rivian generated negative gross profit of $(451) million for the
second quarter of 2024 as compared to $(412) million for the second
quarter of 2023.
Cost of revenues for the second quarter of 2024 included $59
million, or approximately $4,278 per vehicle delivered in the
quarter, of costs we do not anticipate being part of our long-term
cost structure. This was made up of $33 million of cost of revenue
efficiency initiatives primarily related to certain supplier
liabilities incurred and $26 million of accelerated depreciation
associated with the updates made to our Normal Factory during the
plant retooling upgrade.
Operating Expenses and Operating Loss:
Total operating expenses in the second quarter of 2024 grew to
$924 million, as compared to $873 million in the same period last
year.
In the second quarter of 2024, the company recognized a
non-cash, stock-based compensation expense within operating
expenses of $177 million as compared to $158 million in the second
quarter of 2023 and depreciation and amortization expense within
operating expenses of $71 million as compared to $63 million in the
second quarter of 2023.
Fair Value Loss on Convertible Note, Net
Fair value loss on convertible note, net reflects the issuance
and subsequent mark-to-market valuation of the unsecured
convertible note issued to Volkswagen International America, Inc.
in the second quarter of 2024.
Net Loss:
Rivian’s net loss for the second quarter of 2024 was $(1,457)
million as compared to $(1,195) million for the same period last
year.
Adjusted EBITDA (non-GAAP)*
Adjusted EBITDA* for the second quarter of 2024 was $(860)
million as compared to $(861) million for the same period last
year.
Capital Expenditures:
Capital expenditures for the second quarter of 2024 were $283
million, as compared to $255 million for the same period last
year.
Liquidity:
Rivian ended the second quarter of 2024 with $7,867 million in
cash, cash equivalents, and short-term investments. Including the
capacity under its asset-based revolving-credit facility, the
company ended the second quarter of 2024 with $9,179 million of
total liquidity.
The second quarter of 2024’s ending cash, cash equivalents, and
short-term investments balance of $7,867 million includes $1
billion of an unsecured convertible note issued to Volkswagen
International America, Inc. in association with the announcement of
our planned joint venture with Volkswagen Group. The remaining $4
billion of potential incremental investment from Volkswagen Group
is subject to the completion of the definitive agreements, the
achievement of certain milestones, and the receipt of regulatory
approvals.
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
August 6, 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
June 30, 2024
Current assets:
Cash and cash equivalents
$
7,857
$
5,763
Short-term investments
1,511
2,104
Accounts receivable, net
161
249
Inventory
2,620
2,583
Other current assets
164
258
Total current assets
12,313
10,957
Property, plant, and equipment, net
3,874
3,801
Operating lease assets, net
356
387
Other non-current assets
235
209
Total assets
$
16,778
$
15,354
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
981
$
769
Accrued liabilities
1,145
895
Current portion of lease liabilities and
other current liabilities
361
422
Total current liabilities
2,487
2,086
Long-term debt (includes $1,090 at fair
value as of June 30, 2024)
4,431
5,526
Non-current lease liabilities
324
351
Other non-current liabilities
395
573
Total liabilities
7,637
8,536
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 June 30, 2024
—
—
Common stock, $0.001 par value; 3,508 and
3,508 shares authorized and 968 and 1,008 shares issued and
outstanding as of December 31, 2023 and June 30, 2024,
respectively
1
1
Additional paid-in capital
27,695
28,279
Accumulated deficit
(18,558
)
(21,461
)
Accumulated other comprehensive income
(loss)
3
(1
)
Total stockholders' equity
9,141
6,818
Total liabilities and stockholders'
equity
$
16,778
$
15,354
Condensed Consolidated Statements of
Operations
(in millions, except per share
amounts)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2024
2023
2024
Revenues
$
1,121
$
1,158
$
1,782
$
2,362
Cost of revenues
1,533
1,609
2,729
3,340
Gross profit
(412
)
(451
)
(947
)
(978
)
Operating expenses
Research and development
444
428
940
889
Selling, general, and administrative
429
496
831
992
Total operating expenses
873
924
1,771
1,881
Loss from operations
(1,285
)
(1,375
)
(2,718
)
(2,859
)
Interest income
141
95
265
207
Interest expense
(54
)
(75
)
(92
)
(150
)
Fair value loss on convertible note,
net
—
(90
)
—
(90
)
Other income (expense), net
3
(11
)
2
(9
)
Loss before income taxes
(1,195
)
(1,456
)
(2,543
)
(2,901
)
Provision for income taxes
—
(1
)
(1
)
(2
)
Net loss
$
(1,195
)
$
(1,457
)
$
(2,544
)
$
(2,903
)
Net loss attributable to common
stockholders, basic and diluted
$
(1,195
)
$
(1,457
)
$
(2,544
)
$
(2,903
)
Net loss per share attributable to
Class A and Class B common stockholders, basic and diluted
$
(1.27
)
$
(1.46
)
$
(2.72
)
$
(2.93
)
Weighted-average common shares
outstanding, basic and diluted
942
1,001
937
990
Consolidated Statements of Cash
Flows
(in millions)
(unaudited)
Six Months Ended June
30,
2023
2024
Cash flows from operating activities:
Net loss
$
(2,544
)
$
(2,903
)
Depreciation and amortization
411
554
Stock-based compensation expense
364
427
Fair value loss on convertible note,
net
—
90
Inventory LCNRV write-downs and losses on
firm purchase commitments
220
53
Other non-cash activities
7
55
Changes in operating assets and
liabilities:
Accounts receivable, net
(239
)
(88
)
Inventory
(1,190
)
(125
)
Other assets
(82
)
(63
)
Accounts payable and accrued
liabilities
16
(257
)
Other liabilities
155
234
Net cash used in operating
activities
(2,882
)
(2,023
)
Cash flows from investing activities:
Purchases of short-term investments
(938
)
(2,229
)
Maturities of short-term investments
—
1,671
Capital expenditures
(538
)
(537
)
Net cash used in investing
activities
(1,476
)
(1,095
)
Cash flows from financing activities:
Proceeds from issuance of capital stock
including employee stock purchase plan
37
33
Proceeds from issuance of convertible
notes
1,485
1,000
Other financing activities
(5
)
(5
)
Net cash provided by financing
activities
1,517
1,028
Effect of exchange rate changes on cash
and cash equivalents
2
(4
)
Net change in cash
(2,839
)
(2,094
)
Cash, cash equivalents, and restricted
cash—Beginning of period
12,099
7,857
Cash, cash equivalents, and restricted
cash—End of period
$
9,260
$
5,763
Supplemental disclosure of non-cash
investing and financing activities:
Capital expenditures included in
liabilities
$
338
$
365
Capital stock issued to settle
bonuses
$
137
$
179
Right-of-use assets obtained in
exchange for operating lease liabilities
$
27
$
87
Reconciliation of Non-GAAP
Financial Measures
(in millions)
(unaudited)
Adjusted EBITDA1
Three Months Ended June
30,
Six Months Ended June
30,
2023
2024
2023
2024
Net loss
$
(1,195
)
$
(1,457
)
$
(2,544
)
$
(2,903
)
Interest income, net
(87
)
(20
)
(173
)
(57
)
Provision for income taxes
—
1
1
2
Depreciation and amortization
223
274
411
554
Stock-based compensation expense
181
194
364
427
Other expense (income), net
(3
)
11
(2
)
9
Fair value loss on convertible note,
net
—
90
—
90
Cost of revenue efficiency initiatives
20
33
20
160
Restructuring expenses
—
—
42
30
Asset impairments and write-offs
—
14
—
30
Adjusted EBITDA (non-GAAP)
$
(861
)
$
(860
)
$
(1,881
)
$
(1,658
)
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), potential expansion of commercial van
sales, including pilot programs for our commercial vans, revenue
opportunities, and receipt of regulatory approvals, the parties
entering into definitive agreements, the formation of the JV, the
expected benefits from the partnership, the future investments in
Rivian shares and the investments related to the JV. 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, including
fair value gain or loss on convertible note, net.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806740866/en/
Investors: ir@rivian.com
Media: Harry Porter: media@rivian.com
Grafico Azioni Rivian Automotive (NASDAQ:RIVN)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Rivian Automotive (NASDAQ:RIVN)
Storico
Da Nov 2023 a Nov 2024
