Rivian Automotive, Inc. stock research
FY2023 Q2
Rivian Automotive (RIVN) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased while cost of revenue also increased, resulting in a lower gross loss and an improved gross margin compared to the prior quarter. Compared to the same quarter one year earlier, gross profit improved and gross margin strengthened significantly.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased while cost of revenue also increased, resulting in a lower gross loss and an improved gross margin compared to the prior quarter. Compared to the same quarter one year earlier, gross profit improved and gross margin strengthened significantly.
- The strongest observable driver of margin improvement is the reduction in gross loss relative to the prior quarter, as revenue growth outpaced the increase in cost of revenue.
- Compared to the immediately preceding quarter, gross margin improved from a very weak level to a less weak level. Versus the same quarter one year earlier, gross margin also improved from a deeply weak level to a significantly less weak level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-36.8%
Gross profit
-$412.0M
Revenue
$1.1B
Cost of revenue
$1.5B
Quarter-over-quarter change
+44.2 pts
Year-over-year change
+156.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $661.0M | -$535.0M | $1.2B | -80.9% |
| Jun 30, 2023 | $1.1B | -$412.0M | $1.5B | -36.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+44.2 pts
Year-over-year change
Jun 30, 2022
+156.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of margin improvement is the reduction in gross loss relative to the prior quarter, as revenue growth outpaced the increase in cost of revenue.
Compared to the immediately preceding quarter, gross margin improved from a very weak level to a less weak level. Versus the same quarter one year earlier, gross margin also improved from a deeply weak level to a significantly less weak level.
Monitor the trajectory of cost of revenue relative to revenue, as continued improvement in this relationship will be necessary for further gross margin gains.