Rivian Automotive, Inc. stock research
FY2023 Q3
Rivian Automotive (RIVN) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose versus the prior quarter. Gross profit remained negative, and gross margin improved relative to both periods.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose versus the prior quarter. Gross profit remained negative, and gross margin improved relative to both periods.
- Revenue growth outpaced the increase in cost of revenue when comparing with the prior quarter, contributing to the gross margin improvement. Against the year-ago quarter, cost of revenue was essentially stable while revenue grew significantly, which drove the margin reduction in negative territory.
- Compared to the immediately preceding quarter, gross margin improved from a negative level to a less negative level. When measured against the same quarter one year earlier, gross margin also improved substantially from a deeply negative level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-35.7%
Gross profit
-$477.0M
Revenue
$1.3B
Cost of revenue
$1.8B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+135.4 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% |
| Sep 30, 2023 | $1.3B | -$477.0M | $1.8B | -35.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.1 pts
Year-over-year change
Sep 30, 2022
+135.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue growth outpaced the increase in cost of revenue when comparing with the prior quarter, contributing to the gross margin improvement. Against the year-ago quarter, cost of revenue was essentially stable while revenue grew significantly, which drove the margin reduction in negative territory.
Compared to the immediately preceding quarter, gross margin improved from a negative level to a less negative level. When measured against the same quarter one year earlier, gross margin also improved substantially from a deeply negative level.
Monitor whether the absolute level of cost of revenue continues to rise as revenue grows, given the gross profit remained negative.