Rivian Automotive Inc.’s RJ Scaringe is definitely driving a fast car, revenue wise.
Sales for the electric vehicle company jumped to $5 billion for the year ended June 30, 2024, up 202.4% from $1.7 billion reported in the year ended June 30, 2022.
That put the chief executive’s company at No. 1 in this year’s Business Journal list of fastest-growing publicly traded companies in the large firm category, those with an annual revenue of $500 million or more.
Of course, speed doesn’t always result in profit, particularly for a startup. Rivian (Nasdaq: RIVN) racked up a $5.8 billion net loss for the 12 months ended June 30, reflecting the costs of ramping up manufacturing. While there have been investor doubts about Rivian’s long-term viability, it did receive a vote of confidence earlier this year from the Volkswagen Group, which is investing $5 billion in the Irvine-based company.
Orange-based Alignment Healthcare Inc. (Nasdaq: ALHC), which sells Medicare Advantage platforms to seniors, was the second fastest-growing firm on the list of large companies. Alignment logged $2.2 billion in sales for the year ended June 30, 2024, a 71.2% jump from the $1.3 billion reported for the year ended June 2022.
“As we look to 2025, we’ll continue to invest in key markets, strengthen our margins and solidify our growth for years to come,” founder and CEO John Kao told the Business Journal on Oct. 16.
About 22 publicly traded companies headquartered in Orange County made the Business Journal’s annual list of the fastest growers. The lists are limited to companies topping 15% over a two-year period; 15% growth is generally considered a growth stock on Wall Street.
The lists are broken into three categories: small, under $100 million, where sales grew a combined 34%; midsize, $100 million to $500 million, which grew the fastest at 65%; and large, above $500 million, where sales increased 52%.
The entries on this week’s trio of listings saw revenue cumulatively climb 51% for the two-year period ended June 30. For the year ended June 30, 2024, they reported a combined $30.7 billion in sales.
Nine of the companies on the list are based in Irvine, followed by two in Newport Beach and two in Aliso Viejo.
Removing Blood Clots Boosts Sales
No. 3 Inari Medical Inc. (Nasdaq: NARI), the Irvine-based company that focuses on catheter-based technologies to remove large blood clots from patients, boasted $547.5 million in sales for the year ended June 30, 2024, a 63.1% sales jump over the two years (see Inari company profile page TK).
The Ensign Group Inc. (Nasdaq: ENSG), a San Juan Capistrano operator of care facilities, claimed the No. 4 spot among large companies, with $4 billion in sales for the year ended June 30, 2024, a 41.3% increase in sales from the same period a year earlier.
The company, which reported net income of $225.4 million for the 12 months ended June 30, 2024, has seen its share price double in the past two years to an $8.5 billion market cap.
As is typical for fast growing firms, 12 on the list showed a net income loss for the year as they build up market share.
Indie Execs Take Pay Cut Despite Sales Jump
A jump in sales didn’t always translate into good tidings for the companies.
Indie Semiconductor Inc. (Nasdaq: INDI) in Aliso Viejo was No. 2 on the Business Journal’s list of fastest growing in the mid-size company while its net loss totaled $82.1 million for the 12 months ended June 30.
Indie, which specializes in automobile technology, recently trimmed the salaries of top executives as it carried out a round of layoffs.
“We anticipate our revenue growth will continue to outpace both the automotive industry and our automotive silicon peers,” Chet Babla, Indie’s senior vice president for strategic marketing, told the Business Journal on Oct. 14.
Xponential Fitness Inc. (NYSE: XPOF), the Irvine-based training franchise firm, claimed the No. 6 slot with $326.7 million in sales for the year ended June 30, 2024, a 33.4% jump from the same period two years before. Nonetheless, founder Anthony Geisler left as CEO in May under a cloud and was replaced by Mark King, the former CEO of Irvine-based Taco Bell.
Space tourism company Virgin Galactic Holdings (NYSE: SPCE) led the small-company category with a 216.2% revenue jump. Sales jumped to $10.7 million for the year ended June 30, 2024, a 216% leap from the same period two years earlier. It also reported a $404.4 million loss for the 12-month period ended June 30, 2024.
Virgin Galactic, No. 1 on the list of companies with $99.9 million and less in annual sales, has suspended space travel until 2026, as it gears up to put new spacecraft into service.
