Aurora Innovation, Inc. (NASDAQ:AUR) Q3 2024 Earnings Call October 30, 2024 5:00 PM ET Company Participants Stacy Feit - Vice President, Investor Relations Chris Urmson - Co-Founder and Chief Executive Officer David Maday - Chief Financial Officer Conference Call Participants George Gianarikas - Canaccord Genuity David Vernon - Bernstein Mark Delaney - Goldman Sachs Jeff Osborne - TD Cowen Operator Greetings and welcome to the Aurora Third Quarter 2024 Business Review Call. [Operator Instructions] As a remi ...

Financial Performance - Aurora Innovation reported a net loss of $208 million for the three months ended September 30, 2024, compared to a net loss of $190 million for the same period in 2023, representing an 18% increase in losses[61] - Total operating expenses decreased by 8% to $196 million in Q3 2024 from $212 million in Q3 2023, driven by reductions in research and development and selling, general, and administrative expenses[61] - Net cash used in operating activities was $469 million for the nine months ended September 30, 2024, a slight increase from $465 million in the same period in 2023[72] - Other income, net increased by 18% to $47 million for the nine months ended September 30, 2024, primarily due to higher interest income from cash equivalents and investments[68] - The change in fair value of derivative liabilities resulted in an expense of $15 million for the nine months ended September 30, 2024, compared to an expense of $7 million in the same period in 2023, indicating increased volatility in market prices[68] Expenses and Cost Management - Research and development expenses decreased by 7% to $169 million in Q3 2024, primarily due to lower non-cash stock-based compensation and hardware costs[63] - Inflation has not had a material effect on the business, but rising costs could harm financial condition if not offset by price increases[79] Capital and Investments - As of September 30, 2024, Aurora had $263 million in cash and cash equivalents, $985 million in short-term investments, and $104 million in long-term investments[70] - The company raised $466 million in net proceeds from a public offering of approximately 134 million shares at $3.60 per share on August 2, 2024[59] Business Strategy and Future Plans - Aurora plans to launch the Aurora Driver for Freight, targeting the driverless trucking subscription service market first, before expanding into passenger mobility and local goods delivery[57] - The company expects to earn revenue on a fee per mile basis through a Driver as a Service (DaaS) business model, partnering with OEMs and fleet operators[55] Risk Management and Controls - Management assessed that there have been no material changes to critical accounting estimates since the Annual Report[76] - Interest rate changes of 100-basis points are not expected to materially affect the business or financial condition[78] - Disclosure controls and procedures were deemed effective as of September 30, 2024[81] - No changes in internal control over financial reporting materially affected the company during the fiscal quarter ended September 30, 2024[82] - The company does not consider any pending legal claims to be material to its business or likely to adversely affect future operating results[85] - No material losses were recorded in the three and nine months ended September 30, 2024 and 2023[75]

Aurora Third Quarter 2024 Shareholder Letter October 30, 2024 | --- | --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

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Capital Raising and Financial Position - Aurora Innovation is seeking to raise hundreds of millions in additional capital to support its driverless commercial launch by the end of 2024 [1] - The company has arranged to sell up to $420 million worth of Class A common stock to underwriters Goldman Sachs, Allen & Company, and Morgan Stanley at $3.4830 per share, with a public offering price of $3.60 per share [2] - Aurora's stock price increased by almost 29% to $4.50 following the filing [2] - As of June 30, 2024, Aurora had $402 million in cash and cash equivalents and $618 million in short-term investments, which is expected to fund operations into Q4 2025 [3] - In Q2 2024, Aurora spent $198 million, resulting in a direct loss as the company is not yet generating revenue [3] Business Model and Market Strategy - Aurora is pursuing a driver-as-a-service model, where carriers purchase trucks equipped with Aurora Driver technology and offer services to shippers [1] - The company plans to enter the market as a carrier, offering up to 20 autonomous Paccar and Volvo trucks to shippers by the end of this year [1] - Aurora is set to start its commercial service on the Uber Freight network later this year, following a multi-year collaboration announced in June that will extend through 2030 [4] Use of Proceeds and Future Plans - Aurora intends to use the net proceeds from the stock offering for "working capital and other general corporate purposes" and will initially invest in short and long-term investment-grade instruments, certificates of deposit, or guaranteed obligations [3] - The company may need to significantly reduce its cash burn to extend its $402 million cash reserves over the next six quarters unless it garners significant returns from its short-term investments [4]

Aurora , and UTONOMOUS Business Update | Second Quarter 2024 July 31, 2024 Cautionary statement regarding forward-looking statements This presentation contains certain forward-looking statements within the meaning of the federal securities laws. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including but not limited to, those statements around the benefits of integrating artificial intelligence into our product ...

Table of Contents ____________________________ ____________________________ ____________________________ ____________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commis ...

Autonomous Trucking Services - Aurora's driverless trucking subscription service has been rebranded to Aurora Driver for Freight from Aurora Horizon[3] - 75% of the commercial loads on the Dallas to Houston launch lane had a 100% API during the second quarter, increasing to over 80% in June[7] - Aurora has autonomously delivered 6,785 loads, driving over 1.8 million commercial miles with nearly 100% on-time performance for pilot customers[13] - Aurora announced a long-standing relationship with Uber Freight expanding from pilot operations to committed volume, with driverless hauls expected by the end of 2024[10] - Aurora's Premier Autonomy program with Uber Freight provides early access to over one billion driverless miles through 2030[10] Financial Performance and Expenses - Aurora's operating expenses for Q2 2024 totaled $198 million, including $38 million in stock-based compensation[28] - Aurora used approximately $176 million in operating cash during Q2 2024, with capital expenditures totaling $11 million[29] - Aurora ended Q2 2024 with $1.0 billion in cash and short-term investments, expected to fund operations into Q4 2025[29] - Cash and cash equivalents decreased to $402 million as of June 30, 2024, from $501 million as of December 31, 2023[33] - Total current assets decreased to $1,043 million as of June 30, 2024, from $1,217 million as of December 31, 2023[33] - Net loss for the six months ended June 30, 2024, was $347 million, compared to $414 million for the same period in 2023[34] - Research and development expenses for the six months ended June 30, 2024, were $336 million, down from $364 million in the same period in 2023[34] - Adjusted EBITDA for the six months ended June 30, 2024, was $(306) million, compared to $(333) million for the same period in 2023[40] - Net cash used in operating activities for the six months ended June 30, 2024, was $326 million, compared to $318 million for the same period in 2023[38] - Cash, cash equivalents, and restricted cash at the end of the period were $419 million as of June 30, 2024, compared to $182 million as of June 30, 2023[38] - Stock-based compensation for the six months ended June 30, 2024, was $74 million, down from $82 million in the same period in 2023[38] - Total liabilities decreased to $197 million as of June 30, 2024, from $250 million as of December 31, 2023[33] - Accumulated deficit increased to $(3,957) million as of June 30, 2024, from $(3,610) million as of December 31, 2023[33] Technology and Product Development - Aurora's production-ready Volvo VNL Autonomous, powered by the Aurora Driver, began production in May 2024[20] - Aurora's FirstLight Lidar on chip technology is undergoing validation testing, with integration into a single photonics engine expected by the end of 2024[21]

Robotaxis have reportedly become very successful in the Chinese city of Wuhan, and the country is clearly moving towards allowing the phenomenon to become widespread in many of its cities. China’s two largest cities — Beijing and Shanghai — are paving the way for robotaxis to operate legally within their borders. These developments have lit a fire recently under the stocks of several China- and U.S.-based companies that could benefit from the proliferation of robotaxis. And over the longer term, the success ...

While the concept of self-driving vehicles was once the exclusive domain of science fiction, increasingly, this paradigm could become a reality. If so, you’re going to want to at least consider acquiring some autonomous driving stocks now. Sure, the space is incredibly risky and so it’s not prudent to go all in. Nevertheless, some cautious exposure could turn out to be lucrative.For one thing, we must talk about the upside prospect. According to Precedence Research, the global autonomous vehicle market reac ...