RIVN Q4 2022 Earnings

Call Details

• Call Title: Rivian Automotive, Inc. Q4 2022 Earnings Call
• Date: February 28, 2023 at 10:00 PM UTC
• Management Team:
  • RJ Scaringe (Founder, Chairman, and Chief Executive Officer)
  • Claire McDonough (Chief Financial Officer)

Call Summary

Financial Performance

• Rivian produced 10,020 vehicles and delivered 8,054 vehicles in Q4 2022, generating $663M of revenue for the quarter.
• Rivian reported negative gross profit of $1B for Q4 2022, with the quarter impacted by an LCNRV adjustment.
• As of December 31, 2022, LCNRV was $920M versus $95M as of December 31, 2021, and these inventory-related charges are expected to continue through 2023.
• Operating expenses in the second half of 2022 fell 21% versus the first half of 2022, and Q4 2022 operating expenses fell $1.3B versus Q4 2021.
• Adjusted EBITDA was negative $1.5B in Q4 2022 compared to negative $1.1B in Q4 2021.
• Rivian ended Q4 2022 with $12B in cash, cash equivalents, and restricted cash, excluding available capacity under a $750M asset-based revolver.
• Capital expenditures were $1.4B in 2022 versus $1.8B in 2021 due to more concentrated equipment and facility spend going into starter production.

Guidance

• Rivian is guiding to 50,000 vehicles produced in 2023, which represents a doubling of year-over-year production while accounting for supply and technology-integration risks.
• Full-year 2023 production is expected to be back-end weighted due to supply constraints and planned commercial-line downtime in Q1 2023.
• Rivian expects gross margin to remain negative in 2023 but to improve on a dollar basis as COGS per vehicle and ASPs improve and LCNRV charges decline.
• Adjusted EBITDA for 2023 is expected to be negative $4.3B, an improvement of $900M versus 2022.
• Capital expenditures in 2023 are expected to be $2B driven by investments in the Normal and Georgia facilities, next-generation technologies, and go-to-market buildout.
• Rivian forecasts reaching positive gross profit in 2024 and expects cash burn to improve approximately 40% in 2024 versus 2023.
• Rivian expects to maintain capital expenditures in the low $2B range over the medium term and believes current cash can fund operations through 2025.