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 exceeded Wall Street analysts' previous expectations, and it also slightly beat analysts' expectations in terms of loss per share. But at the same time, the company lowered its full-year financial outlook, saying it expected larger losses and lower capital expenditures than previously forecast, sending its shares down nearly 3% after hours.
Second quarter results summary:
In the quarter that ended June 30, 2022, RIvian's total revenue was $364 million, driven by the company's delivery of 4,467 vehicles, which beat analysts' expectations. According to data provided by Yahoo Finance, 13 analysts had expected Rivian's second-quarter revenue to reach $337.52 million on average.
Rivian's second-quarter net loss attributable to common stockholders was $1.712 billion, compared with a net loss attributable to common stockholders of $580 million in the prior year period, which expanded year-over-year primarily due to wider operating losses. Excluding certain one-time items (not in accordance with U.S. GAAP), Rivian's second quarter adjusted net loss attributable to common stockholders was $1,471 million, compared to the adjusted net loss attributable to common stockholders in the prior year period The latter net loss was $581 million.
Basic loss per share and diluted loss per diluted share attributable to common stockholders in the second quarter were both $1.89, compared to basic loss per share and diluted loss per diluted share attributable to common stockholders of $5.74 in the prior year period. Excluding certain one-time items (not in accordance with GAAP), Rivian's adjusted basic loss per share and diluted loss per diluted share attributable to common stockholders in the second quarter were both $1.62, compared to the prior year period Adjusted basic loss per share and diluted loss per diluted share attributable to common stockholders were both $5.75, slightly better than analysts' expectations. Analysts on average had expected Rivian to report an adjusted loss of $1.63 per share in the second quarter, according to financial market data and infrastructure provider Refinitiv.
Rivian's second-quarter gross loss was $704 million. Rivian's total operating expenses in the second quarter were $1.004 billion, compared to $580 million in the same period a year earlier. Of this, research and development expenses were $543 million, compared to $394 million a year earlier; sales, general and administrative expenses were $461 million, compared to $186 million a year earlier. During the quarter, Rivian recognized a non-cash equity-based compensation expense of $229 million and depreciation and amortization expense of $34 million in operating expenses.
Rivian reported an operating loss of $1.708 billion in the second quarter, compared with an operating loss of $580 million a year earlier.
Rivian's second-quarter adjusted EBITDA, or net income before interest, taxes, depreciation, and amortization, was -$1.305 billion, compared to -$559 million in adjusted EBITDA a year earlier.
Rivian's second-quarter net cash used in operating activities was $1.204 billion, compared to net cash used in operating activities of $489 million in the prior-year period, as the company continued to increase capacity at the Normal plant, expand the company and commercial operation scale as well as improving R&D capabilities.
Rivian's second-quarter capital expenditures were $359 million, compared to $431 million a year earlier, primarily as the company continued to invest in business growth, including investments in manufacturing capacity at the Normal plant and facilities including service centers.
Rivian's free cash flow in the second quarter was -$ 1.563 billion, compared to -$920 million a year earlier. Rivian defines free cash flow as net cash used for business operating activities with fewer capital expenditures.
As of June 30, 2022, Rivian had cash and cash equivalents and restricted cash balances of $15.463 billion.
Rivian said the company's core focus remains increasing production and said the productivity demonstrated within its production facilities continues to give the company confidence in the ability of systems, equipment, and team members to increase production at the Normal facility. However, the company believes that supply chain constraints will continue to be a limiting factor in its production.
Given the current economic outlook, Rivian said it will continue to monitor market factors closely and is taking action to optimize the company's product roadmap and related spending.
Based on an updated understanding of the supply chain environment, Rivian reiterated its 2022 production guidance of 25,000 total vehicles. At the same time, Rivian revised its annual adjusted EBITDA guidance to -$5.45 billion, reflecting the company's capacity expansion at its Normal facility, raw material inflation, LCNRV (lower of cost and net realizable value) adjustments, expedited freight rates, and updated estimates of the impact of supply chain challenges.
Rivian also lowered its 2022 CAPEX guidance to $2 billion, a change that reflects the company's streamlined product roadmap and the impact of shifting some CAPEX to 2023. Overall, Rivian expects the closing cash position in 2022 to be in line with 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.