RI

Rivian Automotive, Inc. stock research

Mar 31, 2024

FY2024 Q1

Rivian Automotive (RIVN) Gross Margin — Quarter Ended Mar 31, 2024

Revenue was higher than the same quarter a year ago but lower than the prior quarter. Gross profit remained negative, yet the gross margin improved compared to both periods, as cost of revenue decreased sequentially and increased at a slower pace than revenue on a year-over-year basis.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue was higher than the same quarter a year ago but lower than the prior quarter. Gross profit remained negative, yet the gross margin improved compared to both periods, as cost of revenue decreased sequentially and increased at a slower pace than revenue on a year-over-year basis.

  • The narrowing of the negative gross margin was primarily associated with a reduction in cost of revenue relative to revenue on a sequential basis, and a faster increase in revenue compared to cost of revenue on a year-over-year basis.
  • Compared to the prior quarter, revenue and cost of revenue were both lower, with the cost decline outpacing the revenue decline, resulting in an improved gross margin. Compared to the same quarter a year ago, revenue and cost of revenue were both higher, but revenue grew at a faster rate, leading to an improved gross margin.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

-43.8%

Gross profit

-$527.0M

Revenue

$1.2B

Cost of revenue

$1.7B

Quarter-over-quarter change

+2.3 pts

Year-over-year change

+37.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$1.1B-$412.0M$1.5B-36.8%
Sep 30, 2023$1.3B-$477.0M$1.8B-35.7%
Dec 31, 2023$1.3B-$606.0M$1.9B-46.1%
Mar 31, 2024$1.2B-$527.0M$1.7B-43.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

+2.3 pts

Year-over-year change

Mar 31, 2023

+37.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The narrowing of the negative gross margin was primarily associated with a reduction in cost of revenue relative to revenue on a sequential basis, and a faster increase in revenue compared to cost of revenue on a year-over-year basis.

Compared to the prior quarter, revenue and cost of revenue were both lower, with the cost decline outpacing the revenue decline, resulting in an improved gross margin. Compared to the same quarter a year ago, revenue and cost of revenue were both higher, but revenue grew at a faster rate, leading to an improved gross margin.

Monitor the company's liquidity position and planned capital expenditures for the Normal Factory expansion, as outlined in the recent tax credit agreement.