RIVN Q3 2023 Earnings

Call Details

• Call Title: Rivian Automotive, Inc. Q3 2023 Earnings Call
• Date: November 7, 2023 at 10:00 PM UTC
• Management Team:
  • Tim Bannon (Vice President of Investor Relations)
  • RJ Scaringe (Chief Executive Officer)
  • Claire McDonough (Chief Financial Officer)

Call Summary

Financial Performance

• Rivian reported $1.3B of revenue in Q3 2023 driven primarily by vehicle deliveries.
• The company produced 16,304 vehicles and delivered 15,564 vehicles during the quarter.
• Total gross profit for the quarter was negative $477M on a GAAP basis.
• Adjusted EBITDA for the quarter was negative $942M on a non-GAAP basis as disclosed on the call.
• Gross loss per vehicle improved by approximately $2,000 versus Q2 2023, or approximately $14,000 excluding LCNRV and losses on firm purchase commitments.
• EDV sales represented roughly 30% of revenue in Q3 and materially contributed to the per‑unit margin improvement.

Guidance

• Rivian raised 2023 production guidance to 54,000 units.
• Full‑year 2023 adjusted EBITDA guidance was improved to negative $4B.
• 2023 CapEx guidance was lowered to $1.1B and the reduction was attributed primarily to timing and cost reduction efforts.
• The company expects to implement a multi‑week downtime in Q2 2024 to introduce engineering design changes that will reduce material costs.
• Rivian expects to exit 2024 with a materially improved margin profile and no longer have material LCNRV inventory charges from the Illinois plant by the end of 2024.
• Longer term targets reiterated include approximately 25% gross margin, high‑teens adjusted EBITDA margin, and ~10% free cash flow margin.