Rivian (RIVN): Q4 2024 Earnings Summary

Company Overview
Rivian (RIVN) manufactures and sells electric vehicles (EVs) and commercial delivery vans, including Amazon's delivery trucks.

Q4 2024 Performance
Revenue: $1.73 billion, exceeding analyst estimates of $1.42 billion (31.9% YoY growth)
Adjusted EPS: -$0.46, beating estimates of -$0.64 (28.1%)
Adjusted EBITDA: -$277 million, surpassing estimates of -$408 million (-16% margin)
Sales Volumes: Up 1.5% YoY (73.5% increase in the same quarter last year)
Free Cash Flow: $856 million, up from -$1.41 billion in Q4 2023
EBITDA Guidance: -$1.8 billion midpoint for 2025, below estimates of -$1.69 billion

Industry Analysis
The automotive manufacturing industry has high barriers to entry, but EVs are disrupting the market. Established manufacturers face competition from EV-first companies and must invest in new technologies.

Sales Growth
Rivian has experienced significant sales growth, with a 262% compounded annual growth rate over the last three years. Annualized revenue growth over the last two years is 73.1%, indicating continued strong demand.

Profitability
Rivian has a negative operating margin of -38.1%, but it has improved over the last four years. Despite negative earnings, EPS has improved by 10.1% annually over the last five years. Analysts expect EPS losses to narrow in the next 12 months.

Key Takeaways
Rivian exceeded expectations in key financial metrics, and its gross margin and free cash flow reached positive territory. However, full-year EBITDA guidance missed estimates. Analysts remain bullish on the company's long-term prospects.

Investment Considerations
While the quarter was solid, longer-term business quality and valuation should be considered before investing in RIVN. Read our full research report for more insights and analysis.