Rivian (RIVN) Fourth Quarter and Full Year 2022 Results

Rivian (RIVN) released its fourth quarter and full year 2022 results after market close on Tuesday, February 28, showing slightly lower revenue but significantly lower operating expenses as the EV startup strives to reduce costs and increase volume.

Rivian EV Sales and Earnings Forecast

CEO RJ Scaringe previously said it was a “challenging year” for Rivian as it ramped up production through supply chain issues and product recalls.

Yesterday we gave you a preview of what you can expect Rivian’s fourth quarter 2022 results results.

Rivian revealed last month that it produced 10,020 electric vehicles at its Normal, Ill., plant during the fourth quarter, while shipping 8,054 during the same period.

For the full year, Rivian produced 24,337 electric vehicles and delivered 20,332, narrowly missing its target of 25,000. Despite the failure, Rivian’s production continues to grow at an impressive rate, given that it has produced only 1,015 vehicles in total by the end of 2021.

Wall Street expects Rivian to report fourth-quarter revenue of $742 million, up from $536 million in the third quarter, and EPS of $1.94.

For delivery and production tips, Wall St predicts between 60,000 and 65,000 models for 2023.

Rivian’s Fourth Quarter 2022 Financial Results

After market close, Rivian released its fourth quarter financial resultsshowing that the company implements cost reduction procedures.

However, as Rivian explains, the company’s cost of goods sold has been impacted by short-term material premiums and accelerated freight charges, which are expected to continue to negatively impact gross margins.

Rivian reported:

  • Revenue: $663 million vs $742 million forecast
  • EPS: ($1.73) vs. ($1.94) expected

Revenue rose 23% to $663 million from $536 million in the third quarter. Operating costs fell to $795 million in the fourth quarter from more than $2 billion a year ago.

Rivian generated negative gross profit of $1 billion in the fourth quarter, which was impacted by lower cost or net realizable value (LCNRV). In total, Rivian posted a net loss of $1.7 billion, down from $2.4 billion in the same period last year and about the same as in the third quarter of 2022.

Rivian ended the quarter with more than $12 billion in cash and cash equivalents after spending $1.4 billion in the fourth quarter.

Rivian Q4 and full year 2022 results (Source: Rivian)

Takeaways from Rivian’s fourth quarter earnings report

As of Tuesday, Rivian (RIVN) stock was down about 70% in the past 12 months. The after-hours reaction shows disappointment, with RIVN dropping a further 8%.

One of the most important things is orientation; Wall St expected around 10,000 more in the 2023 delivery forecast, but Rivian is sticking to a modest target of 50,000. Rivian’s cost-cutting initiatives are working, but investors want to know more on the company’s turnover.

The company has enough cash to navigate the next phase of its EV rollout, it will come down to execution and spending frugality. Rivian announces that it will introduce a new battery using LFP cell chemistry to expand its available offering and further reduce costs.

We’ll post all important updates from Rivan’s earnings call below. You can refresh to update.

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