Rivian (RIVN) released its fourth quarter and full-year earnings results for 2022 after market close on Tuesday, February 28th. The EV startup reported a slight miss on revenue but significantly lower operating expenses as it moves to cut costs and drive volume. CEO RJ Scaringe previously said it was a “challenging year” for Rivian as it ramped production through supply chain issues and product recalls.
Wall Street was expecting Rivian to report Q4 revenue of $742 million, up from $536 million in Q3, and EPS of ($1.94). However, Rivian reported revenue of $663 million compared to $742 million expected and EPS of ($1.73) compared to ($1.94) expected. Operating costs fell to $795 million in Q4 compared to over $2 billion last year. Rivian generated a negative gross profit of $1 billion in the fourth quarter, which was impacted by a lower cost or net realizable value (LCNRV). Altogether Rivian posted a net loss of $1.7 billion, a decrease from $2.4 billion in the same period last year and about the same as Q3 2022.
Rivian ended the quarter with over $12 billion in cash and equivalents after burning through $1.4 billion in the fourth quarter. Wall St was expecting between 60,000 to 65,000 models for 2023, but Rivian is sticking to a modest goal. The company has sufficient cash to navigate the next phase of its EV rollout, it will come down to execution and staying frugal on its expenses. Rivian says it will be introducing a new battery pack using LFP cell chemistry to broaden its available supply and further reduce costs.
Overall, investors were disappointed with the results, with RIVN falling an additional 8% after-hours. It remains to be seen if Rivian can execute on its cost-cutting initiatives and deliver on its goals for 2023.
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