Rivian Automotive Q4 Loss Narrower Than Expected, Revenues Rise Y/Y

Core Viewpoint - Rivian Automotive reported a narrower loss in Q4 2024 compared to previous estimates and the same period last year, with significant revenue growth driven by various factors including regulatory credits and software services [1]. Financial Performance - The company reported a Q4 2024 loss of 52 cents per share, better than the Zacks Consensus Estimate of a loss of 66 cents and an improvement from a loss of $1.36 in the prior year [1]. - Revenues reached $1.73 billion, exceeding the Zacks Consensus Estimate of $1.43 billion, marking a year-over-year increase of 31.9% [1]. - Total gross profit was $170 million, a significant recovery from a gross loss of $606 million in the prior-year quarter, resulting in a gross margin of 10% [4]. - Adjusted operating expenses decreased to $620 million from $706 million year-over-year, while adjusted loss before interest, taxes, depreciation, and amortization improved to $277 million from a $1 billion loss in Q4 2023 [4]. Production and Delivery - Rivian produced 12,727 units in Q4 2024, down from 17,541 units in the same quarter last year, but delivered 14,183 units, an increase from 13,972 units year-over-year [3]. Segment Performance - The Automotive segment generated revenues of $1.52 billion, up 31.9% year-over-year, with a gross profit of $110 million compared to a gross loss of $611 million in the prior-year quarter [6]. - The Software and Services segment saw revenues of $214 million, doubling year-over-year, with a gross profit of $60 million compared to $5 million in the same quarter of 2023 [7]. Cash Flow and Financial Position - Net cash from operating activities was $1.18 billion, a turnaround from a negative $1.11 billion in the same period of 2023 [5]. - As of December 31, 2024, Rivian had $5.29 billion in cash and cash equivalents, down from $7.86 billion a year earlier, with long-term debt slightly increasing to $4.44 billion [8]. Future Guidance - For 2025, Rivian expects to deliver between 46,000 to 51,000 vehicles, with adjusted EBITDA anticipated to remain negative in the range of $1.7 billion to $1.9 billion, and capital expenditures projected between $1.6 billion and $1.7 billion [9].