Rivian Automotive, Inc. stock research
FY2024 Q4
Rivian Automotive (RIVN) Gross Margin — Quarter Ended Dec 31, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose less sharply, leading to a shift from negative gross profit to positive gross profit and a substantial improvement in gross margin. The relationship among the metrics shows that the growth in revenue outpaced the increase in cost of revenue, resulting in a positive gross margin for the first time in the periods shown.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose less sharply, leading to a shift from negative gross profit to positive gross profit and a substantial improvement in gross margin. The relationship among the metrics shows that the growth in revenue outpaced the increase in cost of revenue, resulting in a positive gross margin for the first time in the periods shown.
- The strongest observable margin driver is the relative change in revenue and cost of revenue, where revenue increased while cost of revenue declined compared to the same quarter last year and rose more slowly than revenue sequentially.
- Compared to the immediately preceding quarter, revenue was higher and gross profit improved from negative to positive, resulting in a significantly higher gross margin. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was lower, and gross profit turned positive from a large loss, leading to a much improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.8%
Gross profit
$170.0M
Revenue
$1.7B
Cost of revenue
$1.6B
Quarter-over-quarter change
+54.7 pts
Year-over-year change
+55.9 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, 2024 | $1.2B | -$527.0M | $1.7B | -43.8% |
| Jun 30, 2024 | $1.2B | -$451.0M | $1.6B | -38.9% |
| Sep 30, 2024 | $874.0M | -$392.0M | $1.3B | -44.9% |
| Dec 31, 2024 | $1.7B | $170.0M | $1.6B | 9.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+54.7 pts
Year-over-year change
Dec 31, 2023
+55.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative change in revenue and cost of revenue, where revenue increased while cost of revenue declined compared to the same quarter last year and rose more slowly than revenue sequentially.
Compared to the immediately preceding quarter, revenue was higher and gross profit improved from negative to positive, resulting in a significantly higher gross margin. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was lower, and gross profit turned positive from a large loss, leading to a much improved gross margin.
Monitor the trend in cost of revenue relative to revenue, as the ability to maintain or further reduce cost of revenue will be critical for sustaining positive gross margin.