Rivian Automotive Inc. (NASDAQ:RIVN) shares are trading higher Friday after the company reported second-quarter results on Thursday after the market closed.
- Rivian Automotive stock is surging to new heights today. Why are RIVN shares rallying?
Q2 Loss Narrows On Strong Revenue Growth
Rivian reported a loss per share of 63 cents, beating the consensus estimate of 74 cents loss. In addition, it reported revenue of $1.65 billion, beating the consensus estimate of $1.50 billion.
Consolidated revenue rose 27% year-over-year, driven by a 14% increase in delivery volumes and strong performance from the company’s software and services segment. Gross profit came in at $179 million, a $385 million improvement over the same quarter last year. Net loss attributable to common stockholders narrowed to $837 million from $1.115 billion in the prior-year period.
R2 SUV Rollout Sparks Optimism Despite Ongoing Losses
Rivian began external deliveries of its R2 SUV on June 9 and hosted more than 57,000 demo drives during the quarter, a company record. The company ended the quarter with approximately $5.3 billion in cash, cash equivalents, and short-term investments.
“This quarter we began external deliveries of R2. I believe R2 will be a game changer for our customers and a driver of Rivian’s long-term growth and profitability,” said RJ Scaringe, Rivian Founder and CEO.
Rivian Shares Edge Higher
RIVN Price Action: At the time of publication, Rivian shares are trading 3.15% higher at $17.36, according to data from Benzinga Pro.
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