August 12th news, electric vehicle startup Rivian today announced the company’s second-quarter financial report for fiscal 2021. The report shows that Rivian’s total revenue in the second quarter was $364 million; the net loss attributable to common stockholders was $1.712 billion, compared with a net loss attributable to common stockholders of $580 million in the same period last year Expanded; non-GAAP adjusted net loss attributable to common stockholders was $1.471 billion in the second quarter, compared to an adjusted net loss attributable to common stockholders of $581 million in the prior year period.
Rivian’s second-quarter revenue beat Wall Street analysts’ previous estimates and slightly outperformed analysts’ expectations on the loss-per-share front. At the same time, however, the company lowered its full-year financial outlook, saying it expects to post a larger loss and lower capital expenditures than previously forecast, causing its shares to plunge nearly 3 percent after hours.
Second Quarter Results Summary.
For the quarter ended June 30, 2022, Rivian reported total revenue of $364 million, driven by the company’s delivery of 4,467 vehicles, a performance that exceeded analysts’ expectations. According to data provided by Yahoo Finance, 13 analysts had previously expected Rivian’s second-quarter revenue to reach $337.52 million on average.
Rivian’s net loss attributable to common shareholders for the second quarter was $1,712 million, compared to a net loss attributable to common shareholders of $580 million in the prior year quarter, an increase primarily due to an increase in operating losses. Excluding certain one-time items (not in accordance with GAAP), Rivian’s adjusted net loss attributable to common shareholders for the second quarter was $1,471 million, compared to an adjusted net loss attributable to common shareholders of $581 million in the prior year quarter.
Rivian reported basic loss per share and diluted loss per share attributable to common shareholders of $1.89 for the second quarter, compared to basic loss per share and diluted loss per share attributable to common shareholders of $5.74 for the same period last year. Excluding certain one-time items (not in accordance with GAAP), Rivian reported adjusted basic loss per share and diluted loss per share attributable to common shareholders of $1.62 for the second quarter, compared to adjusted basic loss per share and diluted loss per share attributable to common shareholders of $5.75 for the same period last year, which was slightly better than analysts’ expectations. Analysts had previously expected Rivian to report an average adjusted loss of $1.63 per share for the second quarter, according to Refinitiv, a provider of financial market data and infrastructure.
Rivian’s gross loss for the second quarter was $704 million, and Rivian’s total operating expenses for the second quarter were $1.004 billion, compared with $580 million in the prior-year period. Of this total, research and development expenses were $543 million compared to $394 million in the prior year quarter, and selling, general and administrative expenses were $461 million compared to $186 million in the prior year quarter. During the quarter, Rivian recognized $229 million of non-cash equity award expense and $34 million of depreciation and amortization expense in operating expenses.
Rivian reported an operating loss of $1,708 million for the second quarter, compared to an operating loss of $580 million in the prior year quarter.
Rivian’s second quarter Adjusted EBITDA, or net earnings before interest, taxes, depreciation and amortization, was -$1,305 million, compared to Adjusted EBITDA of -$559 million in the prior year quarter.
Rivian’s net cash used in operating activities for the second quarter was $1,204 million, compared to $489 million in the prior year quarter, as the company continued to increase capacity at its Normal facility, expand corporate and commercial operations and improve its research and development capabilities.
Rivian’s capital expenditures for the second quarter were $359 million compared to $431 million in the prior year quarter, primarily as the company continued to invest in the growth of its business, including investments in manufacturing capacity at its Normal facility and facilities, including its service center.
Rivian’s free cash flow for the second quarter was -$1,563 million, compared to -$920 million in the prior year period, and Rivian defines free cash flow as net cash used in business operating activities less capital expenditures.
As of June 30, 2022, Rivian had cash and cash equivalents and restricted cash balances of $15,463 million.
Business Outlook.
Rivian said the company’s core focus remains on increasing production and said the productivity demonstrated within its manufacturing facilities continues to give the company confidence in the ability of its systems, equipment and team members to ramp up production at the Normal facility. However, the company believes supply chain constraints will continue to be a limiting factor in its production.
Given the current economic outlook, Rivian says it continues to closely monitor market factors and is taking action to optimize the company’s product roadmap and related spending.
Based on its latest understanding of the supply chain environment, Rivian reaffirmed its production guidance of 25,000 total vehicles for 2022. At the same time, Rivian revised its annual adjusted EBITDA guidance to -$5.45 billion, reflecting the company’s updated estimate of the impact of capacity expansion at its Normal facility, raw material inflation, LCNRV (lower of cost or net realizable value) adjustments, fast freight rates and supply chain challenges.
Rivian has also lowered its 2022 capital expenditure guidance to $2.0 billion, a change that reflects the impact of the company’s streamlined product roadmap and the shift of certain capital expenditures to 2023. Overall, Rivian expects its ending cash position in 2022 to be consistent with its initial expectations.
Rivian said the company remains confident in its financial outlook and its ability to launch the R2 car in Georgia in 2025 with enough cash on hand.
Stock Price Movement.
On the same day, Rivian shares rose $1.55 to close at $38.95 in regular Nasdaq trading. In subsequent after-hours trading through 6:23 p.m. ET Thursday (6:23 a.m. BST Friday), Rivian shares fell $1.05, or 2.70 percent, to $37.90. Over the past 52 weeks, Rivian has traded as high as $179.47 and as low as $19.25.
