RIVN Stock Edges Up After-Hours — EV Maker Narrows Full Year Guidance And Tempers Spending Plans

• Rivian reported consolidated revenue of $1.658 billion for the quarter ended June 30, a 27% increase from $1.303 billion a year earlier.
• The improved financials are in line with the company’s increased deliveries in the quarter.
• The company is continuing to scale production of its more affordable R2 SUV.

Rivian Automotive (RIVN) shares edged up about 2% in after-hours trading on Thursday following the release of stronger-than-expected second-quarter results and reduced full-year spending plans.

RIVN Q2 Earnings Report

Rivian reported consolidated revenue of $1.658 billion for the quarter ended June 30, a 27% increase from $1.303 billion a year earlier. Automotive revenue rose 23% to $1.143 billion, while software and services jumped 37% to $515 million, helped by the Volkswagen Group joint venture, repair services, and the April launch of paid Autonomy software.

The company posted a gross profit of $179 million, or an 11% margin, reversing a $206-million loss in the year-ago period. Automotive gross profit improved to a $36-million loss from a $335-million loss, despite roughly $100 million in costs tied to the R2 production ramp. Software and services generated $215 million in gross profit at a 42% margin.

Adjusted loss per share narrowed to $0.47 from $0.80.

Higher Demand Drives Numbers

The improved financials are in line with the company’s increased deliveries in the quarter. Earlier this month, Rivian said that it delivered 12,194 vehicles, up 14% year-over-year. 

Customer deliveries of the company’s more affordable R2 SUV began on June 9. The vehicle is expected to expand the company’s total addressable market and allow it to deliver between 65,000 and 70,000 vehicles for the full year.

RIVN's Full-Year Guidance

Rivian also improved full-year adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) guidance to a loss of $2.00 billion to $1.80 billion, from a prior $2.10 billion to $1.80 billion, and lowered capital expenditure expectations to $1.70 billion to $1.80 billion, from $1.95 billion to $2.05 billion.

Cash, cash equivalents, and short-term investments stood at $5.31 billion as of June 30. Including money raised from selling more shares in July, Rivian had $7.16 billion in cash and other readily available funds as it scales R2 production.

How Did RIVN Retail Traders React?

On Stocktwits, retail sentiment around RIVN stock jumped from ‘bearish’ to ‘neutral’ over the past 24 hours, while message volume remained low.

A Stocktwits user cheered the upbeat earnings.

Another user voiced hopes for updates from the company during the earnings call on existing partnerships or upcoming products.

RIVN stock has fallen 15% year-to-date. 

Read More: TSLA Stock Breaks Losing Streak On Tesla’s 10-Million Vehicle Feat

For updates and corrections, email newsroom[at]stocktwits[dot]com.