Rivian (RIVN) is set to report second quarter results on Thursday, with investors focused on the ramp of its new R2 SUV and the electric-vehicle maker's path toward narrowing losses.
Rivian is expected to report revenue of $1.52 billion for the quarter, per Bloomberg consensus, up 17% from a year ago. Rivian is expected to post an adjusted loss per share of $0.16 and an adjusted EBITDA loss of $548 million, narrower than the $667 million loss from last year.
Negative adjusted free cash flow is expected at $1.03 billion, meaning the company is still burning cash. Rivian has previously reported gross profit, but did not in Q1.
In terms of full year guidance, at the end of the first quarter Rivian maintained its projections of an adjusted EBITDA loss of $1.80 billion to $2.10 billion, and capital expenditures of $1.95 billion to $2.05 billion.
The key for investors is the ramp up of Rivian's R2 volume midsize SUV, and how that will eventually lead to durable profits.
Earlier in the month Rivian said it produced 12,613 vehicles at its plant in Normal, Ill., and delivered 12,194 during the quarter, topping its own outlook of 9,000 to 11,000 units.
Rivian said quarter-over-quarter growth came from its EDV commercial vans and R1 line, along with the first deliveries of the R2.
On the strength of that performance and its outlook for the back half of the year, Rivian raised full-year delivery guidance to a range of 65,000 to 70,000 vehicles, up from 62,000 to 67,000.
The R2 production ramp is what investors and analysts believe will drive Rivian's profit story. Rivian and CEO RJ Scaringe say R2's costs are materially lower than its R1 trucks and SUVs, and that R2 is essential to closing the profitability gap.
Investors will look for updated commentary on production efficiency, pricing and gross margin, along with any sign of how quickly the SUV can move from initial deliveries to volume output, which is expected in Q3.
Rivian's cash position is also in the spotlight. Rivian priced a secondary offering of 75 million shares in July in order to beef up its balance sheet as the company ramps up R2 production, and builds out a new factory in Georgia.
Earlier this week, Piper Sandler analyst Alex Potter upgraded Rivian to Overweight ahead of Q2 results, citing reasons including the capital raise.
"First, RIVN boosted delivery guidance, thanks in part to expensive gasoline and a renewed interest in EVs. Second, Rivian has apparently avoided launch issues with the R2 SUV, a pivotal new product. Finally, a recent capital raise should fund growth while reducing dilution risk. As volume rises, Rivian should be better able to monetize software & services, a key benefit of vertical integration," Potter wrote.
Analysts estimate the company closed the quarter with $3.62 billion in cash and equivalents, with capital expenditures of approximately $491 million for the period.
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