May 25, 2022

After today bell electric vehicle company Rivian reported fourth-quarter financial results and 2021 calendar results. The company earned $54 million in the fourth quarter of 2021, with an annual report of around $55 million. Rivian delivered 909 vehicles in the last three months of the year.

The company’s move to more bulk shipments in the fourth quarter of 2021 was not enough to bring it closer to the expected failure. On an adjusted basis, Rivian lost $2.43 per share.

Yahoo Finance announced in advance that the company expects a loss of $2.05 per share on an adjusted basis against $63.99 million in total revenue for the period. Simply put, Rivian made less revenue than expected but lost more money.

In regular trading, Rivian shares fell 6.35% to $41.16 during a broadly negative session, hitting a new 52-week low; The Nasdaq Composite itself is down almost a full percentage point. After hours, Rivian shares fell more than 13% after the earnings release.

Of course, we’re always skeptical about adjusted numbers, so now let’s look at some of the GAAP results. In the fourth quarter of 2021, Rivian’s $54 million in revenue resulted in a negative gross profit of $383 million and a net loss, including all expenses, of $2.46 billion, or $4.84 per share. For all of 2021, the company’s $55 million in revenue resulted in a negative gross profit of $465 million and a net loss of $4.69 billion, or $22.98 per share.

We don’t include gross margin results just to be cheeky. This poses a problem for the company, which said on its income statement that it expects to “recognize negative gross margin in 2022.” So don’t expect the company to come close to breaking even this year in terms of operations; Instead, this year it will work on gross margin neutrality.

But these are just numbers. And the red number is standard for electric car companies looking to ramp up production. So let’s talk about shipping, pricing, a faster supply chain, and what’s in store for the company in the coming quarters.

Hope

Yahoo Finance said in advance that analysts expect the company to deliver 40,000 vehicles by 2022. In its earnings report, Rivian stated that it would have “enough parts and materials to produce 25,000 vehicles on our R2”. and RCV platform. Very little per year.

This number of deliveries is in line with Rivian’s expected adjusted EBITDA loss of $4.75 billion for the year, without reducing its strict profit margin.

Rivian is facing challenges, including supply chain rigidity and long delays.

CEO RJ Scaring said the company will announce a new chief operating officer next week who will ramp up production and manage the supply chain.

“The biggest hurdles we face right now are in the supply chain,” Scaring told investors during a phone call. “It’s really a small number of parts for which the supplier isn’t moving at the same pace as our product lines.”

gaming-updates has been aligned with the earnings call and will soon be dedicated to Rivian’s production goals, profitability and more.

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