Rivian Revenue, Profitability, Margin And Cash Flow

Rivian R1T. Image By Rivian

Rivian Automotive (RIVN) is an automobile company specializing in the design, development, and manufacture of electric vehicles.

As of 2023, Rivian produces and sells only 2 vehicle types, which are electric trucks and utility vehicles to customers in the consumer market.

For the commercial market, Rivian produces and sells only electric vans to customers in this market segment.

All said, this article presents the revenue, profitability, and margin of Rivian Automotive.

Let’s get started!

Revenue And Profitability

Rivian revenue and profitability

Rivian’s revenue totaled $1.7 billion in 2022 compared to revenue of only $55 million reported in 2021.

The 2022 sales represent a huge increase over 2021 when a total of 20,000 vehicles were delivered in the U.S. and Canada in the same fiscal year.

From the perspective of profitability, Rivian’s gross profit fell to -$3 billion in 2022 compared to only -$465 million reported in 2021.

Due to the negative gross profit, Rivian’s operating loss deepened in 2022 to a total of -$6.9 billion compared to -$4.2 billion reported in 2021.

While Rivian’s sales jumped considerably in 2022, its losses worsened to a record high.

For the 2023 outlook, Rivian said that gross profit is anticipated at negative while the operating loss will remain slightly higher due to a modest increase in operating expenses.

Margin

Rivian margin

In terms of margin, Rivian’s gross margin was negative in the last 2 years since 2021.

However, Rivian’s negative gross margin was slightly better in 2022, topping -188% compared to -845% reported in 2021.

For the 2023 outlook, Rivian expects that the negative gross margin will persist into the year’s end, which means the company’s losses will continue in 2023.

As Rivian has been having negative gross margins, the company has been unprofitable.

Cash Flow

Rivian cash flow

All of Rivian Automotive’s cash flow metrics had been negative in the last 2 years as shown in the chart above.

For example, the EBITDA totaled -$5.2 billion in 2022, down from -$2.8 billion reported in 2021.

Rivian’s operating cash flow also worsened in 2022 to -$5.1 billion from -$2.6 billion reported in 2021.

As a result, Rivian’s free cash flow was down to a massive -$6.4 billion in 2022.

In other words, Rivian has been burning cash all these years and the cash burn deepened to $6.4 billion in 2022 compared to $4.4 billion in 2021.

For the 2023 outlook, Rivian guided for an adjusted EBITDA of -$4.3 billion, which is expected to be negative and is slightly better compared to that of 2022.

Conclusion

Rivian Automotive’s revenue surged to $1.7 billion in 2022 while gross profit and operating income tumbled to negative figures in the same year.

Therefore, gross margins were negative, indicating the huge loss incurred.

For cash flow, Rivian was having negative operating and free cash flow in both 2021 and 2022, while adjusted EBITDA came in at -$5.2 billion in 2022.

For the 2023 outlook, Rivian said that gross margin is expected to be negative while adjusted EBITDA will remain at -$4.3 billion, meaning that losses will continue in 2023.

References and Credits

1. All financial figures in this article were obtained and referenced from Rivian Automotive, Inc.’s annual reports which are available in Rivian Investor Relations.

2. Images were obtained from Rivian R1T.

Disclosure

The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.

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