Q2 2024 Rivian Automotive Inc Earnings Call Transcript
Key Points
- Rivian Automotive Inc (RIVN) successfully transitioned to its second-generation R1 vehicles, which are expected to significantly reduce material costs and improve production efficiency.
- The company announced a joint venture with Volkswagen Group, validating Rivian's technology platform and expanding market applications for its software and electrical architecture.
- Rivian received the highest score in the J.D. Power APEAL study, indicating strong customer satisfaction and brand strength.
- The company produced 9,612 vehicles and delivered 13,790 vehicles in Q2 2024, generating $1.2 billion in revenue.
- Rivian improved its cash flow from operations by 41% compared to Q1 2024, reflecting greater cost efficiency and working capital management.
- Rivian reported a total gross profit loss of $451 million for Q2 2024, with a gross profit loss per vehicle delivered of approximately $33,000.
- The company expects Q3 2024 deliveries to be below Q2 results due to the continued ramp of production and lower starting finished goods inventory balance.
- Rivian's gross profit loss per vehicle includes significant depreciation, amortization, and stock-based compensation expenses, impacting overall profitability.
- The company anticipates operational disruptions in 2025 due to plant upgrades and integration of new equipment for the R2 launch, which may affect production volumes.
- Rivian's EBITDA guidance for 2024 remains negative at $2.7 billion, indicating ongoing financial challenges as the company drives towards profitability.
Good day and thank you for standing by. Welcome to the Rivian second-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
(Operator Instructions) I would now like to hand the conference over to your speaker today, Tim Bei, Vice President, Investor Relations.
Good afternoon, and thank you for joining us for Rivian's second-quarter 2024 earnings call. Before we begin, matters discussed on this call, including comments and responses to questions, reflect management's views as of today. We will also be making statements related to our business, operations, and financial performance that may be considered forward-looking statements under federal securities laws. Such statements involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are described in our SEC filings and today's shareholder letter.
During this call, we will discuss both GAAP and non-GAAP
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