JOBY AVIATION, INC. Shareholder
Letter
Q1 2024
JOBYAVIATION.COM
MAY 7, 2024
JOBY AVIATION
Q1 2024
Highlights
AT A GLANCE
Production Ramp-Up
Our second production prototype aircraft rolled off our Pilot Production Line and is expected to join our first production prototype at Edwards Air Force Base later this year, with two further aircraft now in final assembly. We broke ground on an expanded production facility in Marina, CA and acquired an existing facility in Dayton, OH to support initial scaled manufacturing operations.
Certification and Testing
We became the first - and so far only - electric air taxi company to have their final airworthiness criteria published by the FAA. We submitted our first system-level test plans and began building our first FAA-conforming tail. We completed our pre-production flight test program, having completed more than 1,500 full-scale eVTOL flights.
Commercial Progress
We widened our partnership with the U.S. Air Force through a commitment to deliver two aircraft to MacDill Air Force Base in 2025. We signed a multilateral agreement with three Abu Dhabi government departments to support the development of an electric air taxi ecosystem in the Emirate, building on our recent agreement with the government of Dubai which grants us the exclusive right to operate air taxis in the Emirate.
STRONG FINANCIAL FOUNDATION At the end of the first quarter of 2024, we maintained a strong balance sheet with $924 million in cash and short- term investments. Our use of cash
in the quarter reflected spending to progress aircraft certification and manufacturing operations.
NET LOSS
Net loss of $95 million reflected a loss from operations of $146 million, partly offset by interest and other income of $51 million. Operating expenses primarily reflected costs to support certification and manufacturing of prototype aircraft, parts and test articles.
ADJUSTED EBITDA
Adjusted EBITDA loss of $110 million largely reflected our operating expenses excluding depreciation, amortization and stock-based compensation.
Q1 2024 Shareholder Letter | May 7, 2024 | Joby Aviation | 2 |
Production Ramp-Up
FOLLOWING THE LAUNCH of production at our Marina, CA facility last year, we have continued to increase our manufacturing rate, with a goal of reaching a production run-rate equivalent to one aircraft a month by the end of the year. Our second production prototype aircraft has now rolled off the line and we have two additional aircraft in final assembly.
In support of our increased manufacturing rate, we broke ground on an expanded production facility in Marina. The new building will more than double our footprint, providing space for us to increase annual production capacity at the site to 25 aircraft per year. The facility will also house a range of key operational facilities, including an expanded pilot training and flight simulation center as well as aircraft maintenance facilities that are designed to support the scaling of Joby's commercial operations. The growth is
supported by a $9.8 million CalCompetes grant, awarded last year, that will offset a portion of the building cost.
We also began hiring at our newly acquired facility in Dayton, OH. The existing building, located at Dayton International Airport, is the first step in our plan to develop facilities that will support us in our goal of producing
up to 500 aircraft per year, and is being outfitted to manufacture parts in support of our Pilot Production Line in California. We expect the facility to come online later this year.
Q1 2024 Shareholder Letter | May 7, 2024 | Joby Aviation | 3 |
Certification Progress
JOBY BECAME THE FIRST electric air taxi company to have its final airworthiness criteria issued by the FAA. Published in the Federal Register, the guidance reinforced Joby's approach to certification and confirmed that no design changes are required to meet type certification requirements.
Contributing to our progress in Stage 4 of certification, we submitted several equipment-level test plans during the quarter, covering the control surface actuators, pilot inceptors, mission display computer and vehicle navigation computer, plus numerous structural test plans. We also submitted two qualification plans related to the aircraft's energy storage system, covering the charge port and pump as well as the battery control and distribution system.
We also continued to progress up the aircraft testing pyramid, submitting our first system-level test plan to the FAA during the quarter. This plan covers operational testing for the integrated flight and propulsion system, a cornerstone of the unique flight controls and vectored thrust technology that define our aircraft.
Our progress on FAA type certification is the foundation for our commercialization efforts in the U.S. and international markets. This quarter, we progressed our work with the General Civil Aviation Authority, the regulatory authority in the UAE, to collaboratively drafting detailed plans that describe all aspects of our aircraft design and planned operations, establishing the processes and requirements necessary for us to begin early operations in Dubai.
DATA AS OF MAY 1, 2024 | ||
STAGE 1 | JOBY | 100% |
FAA | 100% | |
Certification Basis | ||
STAGE 2 | 97% |
97% | |
Means of Compliance | |
STAGE 3 | 100% |
100% | |
Certification Plans | |
STAGE 4 | 28% |
9% | |
Testing & Analysis | |
STAGE 5 | 1% |
0% | |
Show & Verify | |
Percentage completion may fluctuate mildly through the course of certification as documents are edited and resubmitted. Data as of May 1, 2024. It is typical for a small portion of the Means of Compliance to remain open in order to address minor design changes and improvements that may occur later in the process. We therefore consider the second stage essentially complete.
Q1 2024 Shareholder Letter | May 7, 2024 | Joby Aviation | 4 |
Testing
AFTER FLYING MORE THAN 33,000 miles across over 1,500 flights with full-scale,pre-production prototype aircraft, we successfully concluded this phase of our flight test campaign. Our second pre-production prototype completed more than 100 flights with a pilot on board and the first-ever flights of an electric air taxi in New York City.
Our extensive flight testing campaign over the last four years has been central to our progress on certification and early operations, generating vast amounts of real- world data to validate our design, including human factors and handling characteristics, by flying at high speed and altitude, different states of charge and a range of weather conditions. Flight test learnings also drove design and manufacturing process improvements to ensure reliability and contributed to the development of tools that continuously monitor the health of aircraft systems based on operational flight data.
This quarter, we also completed expansions to our testing capabilities that increase our capacity to perform developmental and for-credit testing. We developed
and installed new actuator load test stands covering our tilt, variable pitch, and control surface actuators. Our propulsion system test stand, or 'Whirly', has been upgraded to operate at higher speeds and test across a wider spectrum of the flight envelope, recording more data to validate system endurance and durability. We also commissioned a battery test building to conduct routine thermal runaway testing at the cell, module, and pack level.
Each of these upgrades to our testing capabilities build on learnings from multiple generations of in-house test platform development to ensure we can efficiently and accurately test all of the equipment and systems on our aircraft. At the integrated systems level, we are now running extensive testing in our integrated test lab with actively loaded actuators and motors, alongside flight electronics and aircraft software.
Q1 2024 Shareholder Letter | May 7, 2024 | Joby Aviation | 5 |
Commercial Progress
WE WIDENED OUR PARTNERSHIP with the U.S. Air Force, announcing that we plan to deliver two aircraft to MacDill Air Force Base in 2025, as part of our $131 million contract with AFWERX Agility Prime program.
MacDill AFB is home to the U.S. Special Operations Command, U.S. Central Command, and units from the Air Mobility Command, along with numerous logistics- oriented units. Joby's deployment at MacDill marks the first time we will be working directly with Department of Defense operational units, enabling them to carry out representative logistics missions and test use cases in personnel transport, casualty evacuation and the support of security forces.
In April, we signed a multilateral agreement with three Abu Dhabi government departments that identified potential governmental support for establishing and scaling air taxi
services in the United Arab Emirates capital and beyond. The Memorandum of Understanding demonstrates the breadth of support for Joby's technology across the Abu Dhabi government and covers all areas required to launch, grow and scale Joby's service, including training, infrastructure development and flight operations, as well as the potential to establish a regional manufacturing presence in Abu Dhabi. The announcement builds on our existing commitments to the UAE, including the exclusive right to operate air taxi services in Dubai, which are planned to start as early as 2025. With service in Abu Dhabi expected to start after Joby's launch in Dubai, the agreement is also expected to unlock inter-emirate services between Abu Dhabi and Dubai.
Q1 2024 Shareholder Letter | May 7, 2024 | Joby Aviation | 6 |
First Quarter 2024 Financial Summary
IN THE FIRST QUARTER OF 2024, our net loss of $94.6 million reflected a net operating loss of $145.9 million and other income of $51.3 million. In the first quarter, our revenue reflected services provided to the Department of Defence as part of our $131 million contract. Operating expenses for the quarter totaled $145.9 million and reflected costs to support our certification and manufacturing of our aircraft. Expenses included stock- based compensation of $27.0 million and depreciation and amortization of $8.5 million. Other income reflected the revaluation of warrants and earn-out shares of $39.0 million and interest and other income of $12.3 million.
Net loss in the first quarter of 2024 reflected an $18.8 million decrease compared with the net loss in the first quarter of 2023. The lower net loss compared with
2023 primarily reflected a higher loss from operations of $46.2 million, reflecting higher operating expenses, more than offset by the favorable revaluation of warrants and earnout shares compared to an unfavorable revaluation in 2023 of $61.1 million. Higher operating expenses reflected growth in our organization, support for certification, increased stock based compensation expense, lower payments from government contract deliverables, and increased purchases of prototype parts for manufacturing, testing and certification.
Compared with the fourth quarter of 2023, our first quarter net loss was $20.5 million lower than the net loss reported in the prior quarter. Other income was $38.2 million higher than the prior quarter primarily reflecting a higher favorable revaluation gain on our warrants and earnout shares compared with the fourth quarter of 2023. The higher loss from operations of $17.7 million compared
with the fourth quarter of 2023 primarily reflected increased research and development cost from higher personnel cost, including stock-based compensation expenses, as we grew the team to support certification and manufacturing and lower payments from contract deliverables.
Adjusted EBITDA in the first quarter of 2024 was a loss of $110.4 million, primarily reflecting employee costs and support associated with the development, certification and manufacturing of the aircraft. The adjusted EBITDA loss was $35.0 million higher than in the first quarter of 2023 and $14.2 million higher than the prior quarter. Adjusted EBITDA is a non-GAAP metric that excludes the loss from the revaluation of our derivative liabilities, stock-based compensation expense, depreciation and amortization, interest income and expense, income from equity-method investments, and other non-operating costs. Please see the section titled "Non-GAAP Financial Measures" for a reconciliation of Net Income to Adjusted
EBITDA.
We ended the first quarter of 2024 with $923.9 million in cash, cash equivalents, and investments in marketable securities, a reduction of $108.4 million. During the first quarter, cash used in operations totaled $106.6 million and spending on property and equipment totaled $6.9 million.
Q1 2024 Shareholder Letter | May 7, 2024 | Joby Aviation | 7 |
Condensed Statement of Operations
JOBY AVIATION, INC. AND SUBSIDIARIES
Unaudited (in thousands, except share and per share data)
Three Months Ended | ||||||||
March 31 | ||||||||
2024 | 2023 | |||||||
REVENUE: | ||||||||
Flight services | $ | 25 | $ | - | ||||
Operating expenses: | ||||||||
Flight services | 15 | - | ||||||
Research and development | 115,636 | 75,518 | ||||||
Selling, general and administrative | 30,271 | 24,198 | ||||||
Total operating expenses | 145,922 | 99,716 | ||||||
Loss from operations | (145,897) | (99,716) | ||||||
Interest and other income, net | 12,319 | 8,400 | ||||||
Gain (Loss) from change in fair value of warrants | 39,027 | (22,043) | ||||||
and earnout shares | ||||||||
Total other income (loss), net | 51,346 | (13,643) | ||||||
Loss before income taxes | (94,551) | (113,359) | ||||||
Income tax expense | 36 | 34 | ||||||
Net loss | $ | (94,587) | $ | (113,393) | ||||
Net loss per share, basic and diluted | $ | (0.14) | $ | (0.19) | ||||
Weighted-average common shares outstanding, basic | ||||||||
681,749,388 | 605,184,671 | |||||||
and diluted | ||||||||
Q1 2024 Shareholder Letter | May 7, 2024 | Joby Aviation | 8 |
Condensed
Balance Sheets
JOBY AVIATION, INC. AND SUBSIDIARIES
Unaudited (in thousands)
MARCH 31, 2024 | DECEMBER 31, 2023 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 110,548 | $ | 204,017 | |
Short-term investments | 813,340 | 828,233 | |||
Total cash, cash equivalents and short-term investments | 923,888 | 1,032,250 | |||
Other receivables | 6,939 | 4,659 | |||
Prepaid expenses and other current assets | 20,863 | 18,842 | |||
Total current assets | 951,690 | 1,055,751 | |||
Property and equipment, net | 103,606 | 103,430 | |||
Operating lease right-of-use assets | 28,596 | 28,286 | |||
Restricted cash | 762 | 762 | |||
Intangible assets | 5,013 | 6,585 | |||
Goodwill | 14,011 | 14,011 | |||
Other non-current assets | 60,679 | 60,610 | |||
Total assets | $ | 1,164,357 | $ | 1,269,435 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 3,731 | $ | 3,006 | |
Operating lease liabilities, current portion | 4,492 | 4,312 | |||
Accrued and other current liabilities | 30,017 | 37,818 | |||
Total current liabilities | 38,240 | 45,136 | |||
Operating lease liabilities, net of current portion | 26,517 | 26,349 | |||
Warrant liability | 46,969 | 62,936 | |||
Earnout shares liability | 72,984 | 95,969 | |||
Other non-current liabilities | 4,516 | 4,683 | |||
Total liabilities | 189,226 | 235,073 | |||
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Preferred stock | - | - | |||
Common stock | 70 | 70 | |||
Additional paid-in capital | 2,318,932 | 2,282,475 | |||
Accumulated deficit | (1,342,290) | (1,247,703) | |||
Accumulated other comprehensive loss | (1,581) | (480) | |||
Total stockholders' equity | 975,131 | 1,034,362 | |||
Total liabilities and stockholders' equity | $ | $1,164,357 | $ | 1,269,435 | |
Q1 2024 Shareholder Letter | May 7, 2024 | Joby Aviation | 9 |
Condensed Statement of Cash Flows
JOBY AVIATION, INC. AND SUBSIDIARIES
Unaudited (in thousands) | Three Months Ended March 31 | ||||
2024 | 2023 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net loss | $ | (94,587) | $ | (113,393) | |
Reconciliation of net loss to net cash used in operating activities: | |||||
Depreciation and amortization expense | 8,507 | 7,067 | |||
Stock-based compensation expense | 27,017 | 17,258 | |||
Loss (Gain) from change in the fair value of warrants and earnout shares | (39,027) | 22,070 | |||
Net accretion and amortization of investments in marketable debt | (5,492) | (3,670) | |||
securities | |||||
Changes in operating assets and liabilities | |||||
Other receivables and prepaid expenses and other current assets | (4,230) | (8,517) | |||
Other non-current assets | (234) | 2,629 | |||
Accounts payable and accrued and other liabilities | 1,243 | (1,083) | |||
Non-current liabilities | 168 | (929) | |||
Net cash used in operating activities | (106,635) | (78,568) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of marketable securities | (160,033) | (126,445) | |||
Proceeds from sales and maturities of marketable securities | 179,546 | 116,072 | |||
Purchases of property and equipment | (6,885) | (8,756) | |||
Net cash provided by (used in) investing activities | 12,628 | (19,129) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Proceeds from issuance of common stock and warrants | - | 50 | |||
Proceeds from the exercise of stock options and warrant issuance | 1,010 | 612 | |||
Repayments of tenant improvement loan and obligations under finance | (472) | (240) | |||
lease | |||||
Net cash provided by financing activities | 538 | 422 | |||
Net change in cash, cash equivalents and restricted cash | (93,469) | (97,275) | |||
Cash, cash equivalents and restricted cash, at the beginning of the period | 204,779 | 150,067 | |||
Cash, cash equivalents and restricted cash, end of the period | $ | 111,310 | $ | 52,792 | |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
Cash and cash equivalents | $ | 110,548 | $ | 49,795 | |
Restricted cash | 762 | 2,997 | |||
Cash, cash equivalents and restricted cash | |||||
$ | 111,310 | $ | 52,792 | ||
Q1 2024 Shareholder Letter | May 7, 2024 | Joby Aviation | 10 |
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Joby Aviation Inc. published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 20:22:46 UTC.
