Revenue Beats Expectations as Company Continues to Make Progress
Rivian has continued to close the gap on its losses, reduce costs, and ramp up production in the third quarter with results that beat Wall Street expectations. The electric vehicle (EV) maker reported revenue of $1.33 billion, driven by deliveries of 15,564 vehicles, which is more than double from the same period last year.
Revenue Growth
Rivian’s revenue growth was modest at 1.5% quarter over quarter, but a significant improvement from the same period last year. The company’s ability to deliver vehicles and increase production has been a key factor in its revenue growth.
Net Loss Narrowed by 20%
On the income front, Rivian reported a third-quarter net loss of $1.37 billion, a 20% decrease from the $1.72 billion in losses in the same year-ago period. On an adjusted basis, the company reported a net loss of $942 million, or $1.19 earnings per share.
Analyst Expectations
Analysts polled by Yahoo Finance expected revenue of $1.31 billion and an adjusted earnings per share loss of $1.33. Rivian’s results exceeded these expectations, demonstrating its ability to manage costs and increase production.
Improved Adjusted Earnings Guidance
The company said its "strong progress" in reducing costs has prompted it to improve its adjusted earnings guidance for the year to a loss of $4 billion. While this is still a significant amount far from break-even or profitability, it represents a decrease of $300 million since the beginning of the year.
Capital Expenditures Reduced
Rivian also announced that it has lowered its capital expenditures to $1.1 billion, largely due to a shift in expense timing. This reduction in capital expenditures is a positive sign for the company and demonstrates its ability to manage costs effectively.
CEO’s Statement
RJ Scaringe, Rivian’s founder and CEO, stated: "During the third quarter we continued to see progress… We produced 16,304 vehicles, which is an increase of 15% from the second quarter. We also delivered 14,964 vehicles, which is a record for our company."
Key Takeaways
- Rivian’s revenue beat expectations, driven by increased production and deliveries.
- The company’s net loss narrowed by 20% compared to the same period last year.
- Adjusted earnings guidance was improved to a loss of $4 billion.
- Capital expenditures were reduced to $1.1 billion.
Future Outlook
Rivian’s continued progress in reducing costs and increasing production positions the company for future growth. As the EV market continues to expand, Rivian is well-positioned to capitalize on this trend.
Investors Take Note
Investors should take note of Rivian’s improved adjusted earnings guidance and reduced capital expenditures. These metrics demonstrate the company’s ability to manage costs effectively and increase production.
Conclusion
Rivian’s third-quarter results demonstrate its continued progress in reducing losses, increasing production, and improving financial performance. As the EV market continues to expand, Rivian is well-positioned to capitalize on this trend and drive future growth.
