RIVN Q1 2023 Earnings

Call Details

• Call Title: Rivian Automotive, Inc. Q1 2023 Earnings Call
• Date: May 9, 2023 at 9:00 PM UTC
• Management Team:
  • Tim Bannon (Vice President of Investor Relations)
  • RJ Scaringe (Chief Executive Officer)
  • Claire McDonough (Chief Financial Officer)
  • Frank Klein (Chief Operations Officer)
  • Nick Collison (Chief Product Development Officer)

Call Summary

Financial Performance

• Rivian produced 9,395 vehicles and delivered 7,946 vehicles in Q1 2023.
• Rivian reported $661 million of revenue in Q1 2023.
• Total gross profit for the quarter was negative $535 million.
• Cumulative LCNRV write-downs and losses on firm purchase commitments were $822 million, comprised of $561 million of inventory write-downs and $261 million of losses on firm purchase commitments.
• The LCNRV charge on the Q1 statement of cash flows was $229 million relating to new inventory purchased and firm purchase commitments entered into in Q1.
• Adjusted EBITDA for Q1 2023 was negative $1.1 billion, consistent with the year-ago quarter.
• Total operating expenses in Q1 2023 were $898 million versus $1.1 billion in the same period last year, driven primarily by decreases in stock-based compensation.

Guidance

• Rivian reaffirmed 2023 total vehicle production guidance of 50,000 units.
• Rivian reaffirmed 2023 adjusted EBITDA guidance of negative $4.3 billion, which represents an improvement of $900 million versus 2022.
• Rivian expects 2023 capital expenditures of $2 billion.
• Rivian expects to reach positive gross profit in 2024 and expects to no longer have material LCNRV inventory charges and losses on firm purchase commitments associated with production at the Normal plant by the end of 2024.
• Rivian expects approximately half of the gross profit improvement to Q4 2024 will be driven by greater volume and utilization of installed capacity, with the remainder split between increases in average selling price and material cost reductions.
• Rivian reiterated long-term targets of approximately 25% gross margin, a high-teens EBITDA margin, and approximately 10% free cash flow margin.