Shares of Rivian Automotive (RIVN 6.10%) are down 25.7% as of 1:30 p.m. ET Thursday after the electric vehicle company announced mixed quarterly results, disappointing forward guidance, and a layoff of 10% of its workforce amid dwindling cash reserves.
On Rivian's progress despite macro headwinds
For its fourth quarter of 2023, Rivian's revenue grew 167% year over year to $1.315 billion, translating to a non-GAAP (adjusted) net loss of $1.308 billion, or $1.36 per share. Analysts, on average, were modeling a narrower net loss of $1.32 per share, but on lower revenue of $1.26 billion.
Trending toward the bottom line, Rivian's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss was $1.096 billion in Q4, narrowed from an adjusted EBITDA loss of $1.461 billion in last year's fourth quarter.
Rivian produced 17,541 vehicles and delivered 13,972 vehicles during the quarter, up from 10,020 and 8,054 vehicles produced and delivered in the same year-ago period, respectively.
"We firmly believe in the full electrification of the automotive industry, but recognize in the short-term, the challenging macroeconomic conditions," stated Rivian Founder and CEO RJ Scaringe. "We are aggressively focused on driving cost efficiency throughout the business, achieving positive margins and building our go-to-market function to support our long-term growth."
Rivian ended 2023 with $9.368 billion in cash, cash equivalents, and short-term investments on its balance sheet. Including capacity on its revolving credit facility, total liquidity stood at $10.468 billion.
What's next for Rivian investors?
Rivian also announced it will reduce its salaried workforce by roughly 10% to cut costs in the near term.
Looking ahead to 2024, Rivian issued guidance for 57,000 vehicles produced -- far below Wall Street's estimates for 81,700 units. Rivian said that should translate a full-year adjusted EBITDA loss of $2.7 billion, assuming capital expenditures of roughly $1.75 billion.
In the end, Rivian has certainly made progress ramping up its operations and curbing expenses. But this report obviously left Wall Street wanting more, and the stock is responding in kind.
