RIVN Q2 2023 Earnings

Call Details

• Call Title: Rivian Automotive, Inc. Q2 2023 Earnings Call
• Date: August 8, 2023 at 9:00 PM UTC
• Management Team:
  • Tim Bannon (Vice President of Strategic Finance and Investor Relations)
  • RJ Scaringe (Chief Executive Officer)
  • Wassym Bensaid (Senior Vice President, Software Development)
  • Claire McDonough (Chief Financial Officer)

Call Summary

Financial Performance

• The company produced 13,992 vehicles in Q2 2023, representing a 50% increase versus Q1 2023.
• The company delivered 12,640 vehicles in Q2 2023 and reported total revenue of $1.1B for the quarter.
• Revenue included $34M of proceeds from the sale of regulatory credits, which the company expects to increase over time but vary quarter to quarter.
• Gross profit per vehicle improved by approximately $35,000 quarter-over-quarter, representing a gross margin improvement of over 4,400 basis points versus Q1 2023.
• Total gross profit for the quarter was negative $412M compared to negative $704M in Q2 2022 on a GAAP basis.
• Total operating expenses were $873M in Q2 2023 versus $1.0B in Q2 2022, a reduction of $131M year-over-year, of which $89M was cash expense reduction.
• Adjusted EBITDA improved by $424M year-over-year on a non-GAAP basis.

Guidance

• The company increased 2023 production guidance to 52,000 total units.
• The company improved 2023 adjusted EBITDA guidance to negative $4.2B on a non-GAAP basis.
• The company reduced 2023 capital expenditure guidance to $1.7B and expects average annual capex in the low $2B area over this year and next.
• The company stated cash and short-term investments of $10.2B and expects that cash can fund operations through 2025.
• The company expects R1 line re-rate activities mid-next year that will increase R1 capacity to 85,000 annual units but will cause a temporary production shutdown and impact R1 output during that period.
• The company reiterated a long-term target of approximately 25% gross margin, high-teens adjusted EBITDA margin, and approximately 10% free cash flow margin.