Rivian Automotive, Inc. (NASDAQ: RIVN) reported solid 2Q 2023 results on August 8 after the close of markets, while modestly boosting its full-year 2023 guidance for both vehicle production and adjusted EBITDA.
The company reported 2Q 2023 revenue of US$1.12 billion based on 12,640 electric vehicle deliveries, both up dramatically from 1Q 2023 figures of US$661 million and 7,546 units, respectively. Interestingly, Rivian booked US$34 million of revenue from the sale of regulatory credits in 2Q 2023, the first time the company has detailed the magnitude of such sales.
Factoring in the 2Q 2023 results, Rivian now expects to produce 52,000 vehicles in 2023, up from its previous 50,000 unit guidance. The company manufactured 23,387 electric vehicles in 1H 2023, so management’s implied production estimates for 3Q 2023 and 4Q 2023 are about 14,300 per quarter, approximately in line with 2Q 2023 actual output of 13,992 units.
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Rivian’s adjusted EBITDA also improved in 2Q 2023, although it remains deeply in the red. Indeed, the adjusted EBITDA loss in the quarter was US$881 million, narrower than US$1.062 billion and US$1.461 billion losses in 1Q 2023 and 4Q 2022, respectively. Note that substantial (and hard-to-justify) levels of stock-based compensation (US$181 million, US$183 million, and US$135 million, respectively) are added back to each of these figures.
RIVIAN AUTOMOTIVE, INC. — Selected Financial Statistics
| (in millions of US dollars, except vehicles produced and delivered and revenue per vehicle delivered) | Full-Year 2023 Guidance | Twelve Months Ended 6-30-23 | 2Q 2023 | 1Q 2023 | 4Q 2022 |
| Number of Vehicles Produced | 52,000 | 40,770 | 13,992 | 9,395 | 10,020 |
| Number of Vehicles Delivered | 35,224 | 12,640 | 7,946 | 8,054 | |
| Revenue | $2,981 | $1,121 | $661 | $663 | |
| Revenue Per Vehicle Delivered | $84,630 | $88,687 | $83,187 | $82,319 | |
| Operating Income | ($6,237) | ($1,285) | ($1,433) | ($1,795) | |
| Operating Cash Flow | ($5,696) | ($1,361) | ($1,521) | ($1,446) | |
| Adjusted EBITDA | ($4,200) | ($4,711) | ($881) | ($1,062) | ($1,461) |
| Capital Expenditures | ($1,700) | ($1,130) | ($255) | ($283) | ($294) |
| Total Stock-Based Compensation | $792 | $181 | $183 | $135 | |
| Cash and Short-Term Investments – Period End | $10,202 | $10,202 | $11,244 | $11,568 | |
| Debt and Convertible Preferred – Period End | $3,347 | $3,347 | $3,308 | $1,812 | |
| Shares Outstanding (millions) – Period End | 946 | 946 | 939 | 926 |
Based on its 2Q 2023 results, Rivian now forecasts its 2023 adjusted EBITDA loss will be US$4.2 billion, slightly below its prior US$4.3 billion projection. For the twelve months ended June 30, 2023, Rivian’s adjusted EBITDA loss totals just over US$4.7 billion.
Of course, there were drawbacks to the quarter. Most prominently, Rivian burned more than US$1.6 billion of cash (defined as operating cash flow less capital expenditures) in 2Q 2023. This represented the seventh consecutive quarter in which the company burned at least US$1.5 billion of cash.
In turn, the cash and short-term investments on the company’s balance sheet fell to US$10.2 billion as of June 30, 2023, admittedly a still very impressive figure. Rivian’s cash balances at year-end 2022 and year-end 2021 were US$11.6 billion and US$18.1 billion, respectively.
Rivian’s valuation looks markedly different based on its revenue multiple versus a cash flow analysis. Factoring in its net cash position, Rivian’s enterprise value (EV) is approximately US$16.5 billion. Consequently, the stock trades at a fairly reasonable 5.5x EV-to-revenue multiple. However, Rivian’s US$16.5 billion valuation is much tougher to square with a projected US$4.2 billion adjusted EBITDA shortfall this year.
Rivian Automotive, Inc. last traded at US$21.57 on the NASDAQ.
Information for this story was found via Edgar and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
