Financial Data and Key Metrics Changes - In Q3 2023, the company reported a net profit of $1.5 million, with other income of approximately $130 million and an operational loss of about $128 million [42] - Adjusted EBITDA was a loss of $93 million, which was $15 million higher than Q3 2022, primarily due to increased staffing and costs for certification [43] - The company ended the quarter with $1.1 billion in cash and short-term marketable securities, maintaining the strongest balance sheet in the industry [44] Business Line Data and Key Metrics Changes - The company is ramping up production at its pilot manufacturing facility in California, with one aircraft in final assembly and two more in progress [13] - The selection of Dayton, Ohio, for the first scaled manufacturing facility is expected to support an annual capacity of up to 500 aircraft [46] Market Data and Key Metrics Changes - The company has received significant state and local incentives totaling up to $325 million to support the development of the Ohio facility [14] - The company is actively engaging in international markets, including participation in the Korean Grand Challenge and showcasing its aircraft at the Japan Mobility Show [59] Company Strategy and Development Direction - The company has set three key goals: certifying its aircraft, scaling manufacturing, and preparing for commercial operations, with consistent progress reported in each area [25][60] - The partnership with Toyota is highlighted as a significant advantage in manufacturing and operational efficiency [89] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of aviation and the company's role in transforming urban transportation, citing strong government support and partnerships [18][54] - The company anticipates gradual revenue growth in 2024 as more aircraft are delivered and operational activities increase [68] Other Important Information - The company has made significant progress in certification, with 84% of Stage 3 certification plans accepted by the FAA [75] - The pilot on board test campaign has provided positive feedback, indicating readiness to proceed with further testing and development [126] Q&A Session Summary Question: Can you provide more granularity on revenue expectations for Q4? - Management expects revenues to grow as more planes are delivered and operational activities increase, with services tied to government-directed flight hours [68] Question: How do you plan to ramp up manufacturing? - The company is actively ramping up production in its pilot plants and expects to produce tens of aircraft per year, with a focus on refining processes before scaling [116] Question: What is the status of international market opportunities? - The company is engaging with various certification agencies and exploring partnerships to ensure successful market entry, particularly in Japan and South Korea [119][135] Question: What are the next steps for certification? - The company is focused on completing the remaining components of Stage 2 and progressing into Stage 4 testing, with high confidence in the path forward [111][112] Question: What is the expected cash flow usage in 2024? - The company anticipates increased cash usage in 2024 due to ramping up capital expenditures associated with the new facility in Ohio [82]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ____________ Commission File Number: ...

Joby Aviation, Inc. (NYSE:JOBY) Q2 2023 Earnings Call August 2, 2023 5:00 PM ET Company Participants Teresa Thuruthiyil - Head of Investor Relations JoeBen Bevirt - Founder and Chief Executive Officer Paul Sciarra - Executive Chairman Didier Papadopoulos - Head of Aircraft OEM Matt Field - Chief Financial Officer Conference Call Participants Andres Sheppard - Cantor Fitzgerald Austin Moeller - Canaccord Genuity Mahima Kakani - JPMorgan Edison Yu - Deutsche Bank Operator Greetings, and welcome to Joby Aviati ...

[Special Note Regarding Forward-Looking Statements](index=4&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section provides cautionary statements regarding forward-looking information, emphasizing inherent risks and uncertainties that could cause actual results to differ materially [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Joby Aviation, Inc. and its subsidiaries, including the balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, fair value measurements, acquisitions, and other financial components for the period ended March 31, 2023 [Condensed Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity as of March 31, 2023, and December 31, 2022 Condensed Consolidated Balance Sheets (Unaudited) - Key Figures (in thousands) | Metric | March 31, 2023 | December 31, 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | $1,218,727 | $1,292,984 | $(74,257) | (5.74)% | | Total liabilities | $149,232 | $128,243 | $20,989 | 16.37% | | Total stockholders' equity | $1,069,495 | $1,164,741 | $(95,246) | (8.18)% | | Cash and cash equivalents | $49,795 | $146,101 | $(96,306) | (65.92)% | | Short-term investments | $927,980 | $910,692 | $17,288 | 1.90% | [Condensed Consolidated Statements of Operations (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) This section outlines the company's financial performance, presenting revenues, expenses, and net loss for the three months ended March 31, 2023, and 2022 Condensed Consolidated Statements of Operations (Unaudited) - Key Figures (in thousands, except per share) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and development | $75,518 | $72,071 | $3,447 | 4.78% | | Selling, general and administrative | $24,198 | $22,272 | $1,926 | 8.65% | | Total operating expenses | $99,716 | $94,343 | $5,373 | 5.69% | | Loss from operations | $(99,716) | $(94,343) | $(5,373) | 5.69% | | Interest and other income, net | $8,400 | $757 | $7,643 | 1009.64% | | Income from equity method investment | $0 | $14,458 | $(14,458) | (100.00)% | | Gain (Loss) from change in fair value of warrants and earnout shares | $(22,043) | $16,814 | $(38,857) | (231.10)% | | Total other income (loss), net | $(13,643) | $32,029 | $(45,672) | (142.59)% | | Net loss | $(113,393) | $(62,319) | $(51,074) | 81.96% | | Net loss per share, basic and diluted | $(0.19) | $(0.11) | $(0.08) | 72.73% | [Condensed Consolidated Statements of Comprehensive Loss (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss%20(Unaudited)) This section details the company's comprehensive loss, including net loss and other comprehensive income (loss) for the three months ended March 31, 2023, and 2022 Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - Key Figures (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(113,393) | $(62,319) | $(51,074) | 81.96% | | Total other comprehensive gain (loss) | $3,272 | $(2,558) | $5,830 | (227.91)% | | Comprehensive loss | $(110,121) | $(64,877) | $(45,244) | 69.74% | [Condensed Consolidated Statements of Stockholders' Equity (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)) This section presents changes in stockholders' equity, including net loss, stock-based compensation, and other comprehensive loss, for the period ended March 31, 2023 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - Key Changes (in thousands, except share data) | Metric | Balance at Jan 1, 2023 | Net Loss | Stock-based Compensation | Issuance of Common Stock | Other Comprehensive Loss | Balance at Mar 31, 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Common Stock Shares | 622,602,815 | — | — | 6,919,790 | — | 629,522,605 | | Additional Paid-In Capital | $1,908,179 | — | $14,157 | $718 | — | $1,923,054 | | Accumulated Deficit | $(734,653) | $(113,393) | — | — | — | $(848,046) | | Accumulated Other Comprehensive Loss | $(8,846) | — | — | — | $3,272 | $(5,574) | | Total Stockholders' Equity | $1,164,741 | $(113,393) | $14,157 | $718 | $3,272 | $1,069,495 | - Total stockholders' equity decreased by **$95.2 million** from **$1,164.7 million** at December 31, 2022, to **$1,069.5 million** at March 31, 2023, primarily due to the net loss of **$113.4 million**, partially offset by stock-based compensation and other comprehensive gain[15](index=15&type=chunk)[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This section summarizes the company's cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2023, and 2022 Condensed Consolidated Statements of Cash Flows (Unaudited) - Key Figures (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash used in operating activities | $(78,568) | $(61,426) | $(17,142) | 27.91% | | Net cash used in investing activities | $(19,129) | $(476,132) | $457,003 | (95.98)% | | Net cash provided by financing activities | $422 | $80 | $342 | 427.50% | | Net change in cash, cash equivalents and restricted cash | $(97,275) | $(537,478) | $440,203 | (81.90)% | | Cash, cash equivalents and restricted cash, at end of period | $52,792 | $418,847 | $(366,055) | (87.40)% | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed explanations of the company's significant accounting policies, fair value measurements, acquisitions, and other financial components - Joby Aviation is a vertically integrated air mobility company developing and operating eVTOL aircraft for air transportation as a service, headquartered in Santa Cruz, California[30](index=30&type=chunk) - The company's financial statements are prepared in conformity with U.S. GAAP and include all adjustments necessary for fair presentation, with no material changes to significant accounting policies from the prior annual report[34](index=34&type=chunk)[36](index=36&type=chunk) Fair Value of Financial Assets and Liabilities (in thousands) | Category | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total fair value of assets | $943,996 | $1,018,811 | | Total fair value of liabilities | $94,908 | $72,838 | - The company completed two acquisitions in 2022: an aerospace composite manufacturing company for **$1.5 million** cash and RSUs, and an aerospace software engineering company for **$7.2 million** cash, resulting in goodwill and intangible assets[50](index=50&type=chunk)[51](index=51&type=chunk)[53](index=53&type=chunk) Stock Warrants and Earnout Shares Liability (in thousands) | Liability | March 31, 2023 | December 31, 2022 | Change ($) | | :--- | :--- | :--- | :--- | | Warrant liabilities | $37,814 | $28,783 | $9,031 | | Earnout Shares Liability | $57,094 | $44,055 | $13,039 | - The company recognized a loss of **$13.0 million** from the change in fair value of Earnout Shares Liability and a loss of **$4.2 million** from the change in fair value of Delta Warrant for the three months ended March 31, 2023[70](index=70&type=chunk)[75](index=75&type=chunk) Stock-based Compensation Expense (in thousands) | Expense Category | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and development | $13,044 | $14,722 | $(1,678) | (11.40)% | | Selling, general and administrative | $4,214 | $4,707 | $(493) | (10.47)% | | Total stock-based compensation expense | $17,258 | $19,429 | $(2,171) | (11.17)% | Net Loss Per Share (Basic and Diluted) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net loss attributable to common stockholders (in thousands) | $(113,393) | $(62,319) | | Weighted-average shares outstanding | 605,184,671 | 579,090,606 | | Net loss per share, basic and diluted | $(0.19) | $(0.11) | - On May 3, 2023, the company entered into a common stock purchase agreement for a registered direct offering of **43,985,681 shares** at **$4.10 per share**, expecting net proceeds of approximately **$180.2 million**[94](index=94&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition, discussing key factors affecting operating results, components of operations, and a detailed comparison of financial results for the three months ended March 31, 2023, versus 2022, along with liquidity and capital resources [Overview](index=24&type=section&id=Overview) This section introduces Joby Aviation's business model, focusing on eVTOL aircraft development for air transportation as a service and its financial history of operating losses - Joby Aviation is developing a piloted all-electric eVTOL aircraft for air transportation as a service, targeting initial service with the Department of Defense in **2024** and commercial passenger operations in **2025**[96](index=96&type=chunk)[97](index=97&type=chunk) - The company has incurred net operating losses and negative cash flows since inception, with an accumulated deficit of **$848.0 million** as of March 31, 2023, funded primarily by stock issuance and the Merger[98](index=98&type=chunk) [Key Factors Affecting Operating Results](index=25&type=section&id=Key%20Factors%20Affecting%20Operating%20Results) This section discusses critical elements influencing the company's financial performance, including market development, regulatory challenges, government contracts, and operational complexities - Revenue is tied to the undeveloped Urban Air Mobility (UAM) market, requiring significant investment in engineering, testing, manufacturing, certification, and infrastructure before launch[104](index=104&type=chunk) - The FAA's revised certification requirements for eVTOLs under the 'powered lift' classification and potential delays in operational regulations (SFARs) until late **2024** could impact the timeline for commercial passenger service[107](index=107&type=chunk)[108](index=108&type=chunk) - Contracts with the U.S. Air Force under the Agility Prime program, expanded in July 2022 and April 2023, have a total potential value of over **$131 million** through **2026**, providing operational learnings and research support[110](index=110&type=chunk) - The fully-integrated business model faces challenges including uncertain variable costs for aircraft assembly at scale, increased time and effort for component development and certification, and slower-than-expected hiring for software development and verification[113](index=113&type=chunk) [Components of Results of Operations](index=27&type=section&id=Components%20of%20Results%20of%20Operations) This section breaks down the individual elements contributing to the company's operating results, such as research and development, administrative expenses, and other income/loss items - Research and development expenses are expected to increase due to staffing for aircraft engineering, software development, and next-generation technologies, partially offset by government grants[116](index=116&type=chunk) - Selling, general and administrative expenses are expected to increase with additional personnel and consultants to support operations and public company regulatory compliance[118](index=118&type=chunk) - The company recognized no income from its equity method investment in SummerBio for the three months ended March 31, 2023, compared to **$14.5 million** in the prior year, due to SummerBio winding down operations[120](index=120&type=chunk) - Public, Private, and Delta Warrants, along with Earnout Shares, are recorded as liabilities and remeasured to fair value each period, leading to income or expense adjustments[121](index=121&type=chunk) - Interest income primarily comes from cash, cash equivalents, and marketable securities, and is expected to fluctuate with interest rates[128](index=128&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) This section provides a comparative analysis of the company's operating expenses and net loss for the three months ended March 31, 2023, versus 2022 Operating Expenses and Net Loss Comparison (in thousands) | Metric | 3 Months Ended Mar 31, 2023 | 3 Months Ended Mar 31, 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and development | $75,518 | $72,071 | $3,447 | 5% | | Selling, general and administrative | $24,198 | $22,272 | $1,926 | 9% | | Total operating expenses | $99,716 | $94,343 | $5,373 | 6% | | Loss from operations | $(99,716) | $(94,343) | $(5,373) | 6% | | Total other income (loss), net | $(13,643) | $32,029 | $(45,672) | (143)% | | Net loss | $(113,393) | $(62,319) | $(51,074) | 82% | - The **82%** increase in net loss was primarily driven by a **$38.9 million** negative change in the fair value of warrants and earnout shares and a **$14.5 million** decrease in equity method investment income, partially offset by a **$7.6 million** increase in interest and other income[134](index=134&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its short-term and long-term financial obligations, detailing available cash, investments, and future funding strategies Liquidity Position (in thousands) | Metric | March 31, 2023 | | :--- | :--- | | Cash, cash equivalents and restricted cash | $52,792 | | Short-term investments | $928,000 | | Total available liquidity | $980,792 | - The company has incurred net losses and negative operating cash flows since inception and expects this to continue until sustainable commercial operations begin[136](index=136&type=chunk) - Management believes current liquidity will satisfy working capital and capital requirements for at least the next twelve months, with future needs potentially met through equity and debt financing[136](index=136&type=chunk)[137](index=137&type=chunk) - Near-term cash requirements include spending on manufacturing facilities, production ramp-up, certification, infrastructure, skyport development, pilot training, software development, and aircraft production[138](index=138&type=chunk) [Cash Flows](index=31&type=section&id=Cash%20Flows) This section analyzes the sources and uses of cash from operating, investing, and financing activities, highlighting significant changes between periods Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash used in operating activities | $(78,568) | $(61,426) | $(17,142) | 28% | | Net cash used in investing activities | $(19,129) | $(476,132) | $457,003 | (96)% | | Net cash provided by financing activities | $422 | $80 | $342 | 428% | - The increase in net cash used in operating activities was primarily due to a higher net loss, partially offset by non-cash adjustments like the loss from change in fair value of warrants and earnout shares and stock-based compensation[141](index=141&type=chunk) - Net cash used in investing activities significantly decreased due to lower purchases of marketable securities in **2023** compared to **2022**[142](index=142&type=chunk)[143](index=143&type=chunk) - Net cash provided by financing activities increased due to higher proceeds from stock option exercises, partially offset by loan repayments[144](index=144&type=chunk)[145](index=145&type=chunk) [Critical Accounting Policies and Estimates](index=31&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section outlines the key accounting policies and significant management judgments and assumptions used in preparing the financial statements - Management's discussion and analysis relies on condensed consolidated financial statements prepared in accordance with U.S. GAAP, requiring estimates and assumptions that may differ from actual results[146](index=146&type=chunk)[147](index=147&type=chunk) - The company's accounting policies are consistent with those outlined in its annual report on Form 10-K for the year ended December 31, 2022[148](index=148&type=chunk) [Recent Accounting Pronouncements](index=32&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to the disclosures regarding recently issued accounting standards and their potential impact on the company's financial statements - Information regarding recently issued accounting pronouncements is provided in Note 2 of the Condensed Consolidated Financial Statements[149](index=149&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, specifically interest rate risk related to its short-term investments and foreign currency risk, concluding that neither poses a material impact - The company is exposed to interest rate risk on its **$980.8 million** cash, cash equivalents, restricted cash, and short-term investments as of March 31, 2023, primarily in money market funds, U.S. treasury bills, and government and corporate bonds, where a hypothetical **10%** change in interest rates is not expected to have a material impact[150](index=150&type=chunk) - The company is not exposed to significant foreign currency risks as foreign operations are not material[151](index=151&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details management's evaluation of disclosure controls and procedures, acknowledging a previously reported material weakness, but affirming the fair presentation of financial statements. It also outlines ongoing remediation efforts - Management concluded that disclosure controls and procedures were not effective as of March 31, 2023, due to a previously reported material weakness[153](index=153&type=chunk) - The material weakness relates to a lack of sufficient accounting resources with deep technical accounting knowledge to identify and resolve complex accounting issues in a timely manner[156](index=156&type=chunk) - Despite the material weakness, management believes the condensed consolidated financial statements fairly present the financial condition, results of operations, and cash flows in conformity with GAAP[154](index=154&type=chunk) - Remediation efforts are ongoing and require further validation and testing over sustained financial reporting cycles[156](index=156&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part includes disclosures on legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and a list of exhibits [Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course claims but management believes these will not have a material adverse impact on financial position, results of operations, or cash flows, though inherent uncertainties exist - The company is subject to ordinary course claims, but management does not currently believe they will have a material adverse impact on financial position, results of operations, or cash flows[160](index=160&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the comprehensive discussion of risk factors in the company's annual report on Form 10-K for the year ended December 31, 2021, noting that these factors could materially and adversely affect the business, prospects, financial condition, operating results, and stock price - The company's business, prospects, financial condition, operating results, and common stock price may be materially affected by risk factors detailed in the annual report on Form 10-K for the year ended December 31, 2021[161](index=161&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details an unregistered sale of common stock to an accredited investor in March 2023, generating initial cash proceeds and future payments tied to milestones, with shares subject to vesting conditions Unregistered Sale of Equity Securities (March 6, 2023) | Detail | Value | | :--- | :--- | | Shares Sold | 137,174 | | Price Per Share | $7.29 | | Aggregate Amount | $999,998 | | Cash Proceeds Received | $100,000 | | Remaining Payment | $899,998 (tied to milestones) | | Purpose | General corporate purposes | [Defaults Upon Senior Securities](index=34&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities - No defaults upon senior securities were reported[163](index=163&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that this item is not applicable to the company - Mine Safety Disclosures are not applicable to the company[164](index=164&type=chunk) [Other Information](index=34&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report under this item - No other information was reported under this item[165](index=165&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed or furnished as part of the Quarterly Report on Form 10-Q, including corporate documents, certifications, and XBRL data - The report includes various exhibits such as the Amended and Restated Certificate of Incorporation, Bylaws, 2023 Performance Award Program, and certifications from the Principal Executive Officer and Principal Financial Officer[167](index=167&type=chunk) [Signatures](index=36&type=section&id=Signatures) This section contains the required signatures for the filing, certifying the accuracy and completeness of the report

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ____________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to __________ Commission file number 001-39463 ____________________________ Joby Aviation, Inc. (Exact name of registrant ...

Financial Data and Key Metrics - Q4 2022 adjusted EBITDA was negative $77.6 million, $12.4 million higher than Q4 2021, reflecting increased operating expenses and nearly flat compared to Q3 2022 [7] - Net loss in Q4 2022 was $66.9 million or $0.11 per share, with operating expenses including $17.2 million in stock-based compensation and $6.6 million in depreciation and amortization [52] - Cash and short-term marketable securities totaled $1.1 billion at the end of Q4 2022, including a $60 million equity investment from Delta [53] - Net cash used in operating activities and capital expenditures is projected to be between $360 million to $380 million in 2023, reflecting continued hiring in priority areas [9] Business Line Data and Key Metrics - The company has made significant progress in manufacturing, with the first aircraft on the pilot production line nearing final assembly [4] - The team has grown by approximately 30% over the past year, with 90% of new hires supporting engineering and manufacturing initiatives [6] - The company is actively discussing potential locations for its Phase 1 manufacturing plant, with decisions expected in the first half of 2023 [8] Market Data and Key Metrics - The company is progressing towards FAA type certification, with Stage 3 completion at 93% and plans to submit all 13 area-specific certification plans in the first half of 2023 [44] - Discussions with the Department of Defense are ongoing, with expectations to begin on-base operations in 2024 [54] Company Strategy and Industry Competition - The company is transitioning from the definition phase to the implementation phase of type certification, focusing on producing conforming aircraft and conducting pilot-onboard flights [8] - The company is leveraging its vertically integrated strategy, with significant in-house testing capabilities and a focus on rapid iteration and learning [49][70] - The company is exploring opportunities for state incentives and government support to defray capital expenditures, as well as evaluating aircraft leasing structures [18] Management Commentary on Operating Environment and Future Outlook - Management expects 2023 to be a pivotal year, with significant progress in certification, manufacturing, and preparing for commercial operations [58] - The company is optimistic about its relationship with the FAA and the progress being made in certification, testing, and operations [20][62] - Management remains committed to delivering on its commitments to partners, including the Department of Defense and Delta [9] Other Important Information - The company has completed Stage 2 of the type certification process and is making progress on Stage 3, with a focus on testing and analysis [2][64] - The company has built significant in-house testing capabilities, including an integrated test lab that replicates all hardware and software systems used in the real aircraft [49] - The company is working on developing a quality management system that complies with FAA regulations, which will be critical for achieving production certification [50] Q&A Session Summary Question: Delta's $60 million equity investment and its usage [12] - The $60 million equity investment from Delta is unrestricted and can be used for operating expenses as needed [74] Question: Timeline for commercial service and potential delay to 2025 [15] - The decision to delay commercial service to 2025 was based on prudence and the need to ensure progress with the FAA, though 2024 remains a possibility [16] Question: Testing requirements for internally built parts [84] - Internally built parts do not create additional testing requirements, as the testing process is the same regardless of who executes it [22] Question: Production certification and its alignment with type certification [87] - The company is working on production certification in conjunction with type certification, using the first build to exercise and optimize its quality management system [25] Question: Battery strategy and safety features [27] - The company is pleased with the performance and safety features of its battery systems, which have demonstrated over 10,000 representative flight cycles in the lab [36] Question: FAA's proposed rule on air carrier definition and its impact on operations [19] - The proposed rule is seen as positive, as it aligns with the company's progress in certification and operations, and reflects the FAA's constructive engagement with the eVTOL industry [20] Question: Capital intensity and potential joint funding for the Phase 1 manufacturing plant [32] - The company is in discussions with multiple states and is encouraged by the engagement and incentive packages available, though no specifics were announced [24] Question: Progress on the Means of Compliance (MOC) and remaining small pieces [118] - The company expects to reach close to 100% completion on the MOC this year, with the remaining small pieces being inconsequential to the overall progress [129]

Certification Progress - Joby effectively completed the second of five FAA stages for aircraft certification, believed to be a first for the eVTOL industry[6] - The company has 94% of its Means of Compliance accepted by the FAA, considering Stage 2 essentially complete[10] - Stage 3 certification plans increased from 37% to 53% accepted by the FAA[38] - The company submitted a total of five Area Specific Certification Plans (ASCPs) to the FAA[33] Financial Highlights - Joby had $1.1 billion in cash and short-term investments at the end of Q4 2022, including a $60 million equity investment from Delta[4] - Net cash used in operating activities and purchases of property and equipment totaled $291 million in 2022, with $84 million spent in Q4[4] - The net loss for Q4 2022 was $66.9 million, reflecting operating expenses of $101.4 million partially offset by other income of $34.5 million[17] - Adjusted EBITDA loss in Q4 2022 was $77.6 million[18] Operational Developments - Final assembly began on the first company-conforming aircraft to be produced on the pilot manufacturing line[8] - The company acquired land and facilities in Santa Cruz for $25.5 million to support long-term growth[4] - Total 2023 net cash used in operating activities and purchases of property and equipment is expected to range from $360 to $380 million[48]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides Joby Aviation's unaudited financial statements, management's discussion, market risk disclosures, and internal controls for the period ended September 30, 2022 [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Joby Aviation's unaudited financial statements, including balance sheets, statements of operations, and cash flows, reporting a net loss of $79.2 million for Q3 2022 and over $1.07 billion in cash and investments [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2022, total assets decreased to $1.27 billion from $1.49 billion, primarily due to reduced cash, while total liabilities decreased to $113.7 million from $171.6 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash, cash equivalents and short-term investments | $1,074,506 | $1,298,811 | | Total current assets | $1,104,036 | $1,318,542 | | Total assets | $1,273,809 | $1,488,355 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $28,802 | $13,848 | | Warrant liability | $24,175 | $44,902 | | Earnout shares liability | $58,499 | $109,844 | | Total liabilities | $113,654 | $171,596 | | Total stockholders' equity | $1,160,155 | $1,316,759 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q3 2022, the company reported a net loss of $79.2 million, a slight increase from $78.9 million in Q3 2021, driven by higher operating expenses offset by fair value gains Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Research and development | $73,870 | $52,092 | | Selling, general and administrative | $23,251 | $15,607 | | Loss from operations | $(97,121) | $(67,699) | | Gain (Loss) from change in fair value of warrants and earnout shares | $12,560 | $(11,489) | | Net loss | $(79,206) | $(78,858) | | Net loss per share, basic and diluted | $(0.14) | $(0.20) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2022, net cash used in operating activities increased to $182.8 million, with significant cash used in investing activities for marketable securities Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(182,818) | $(147,006) | | Net cash used in investing activities | $(575,972) | $(7,309) | | Net cash provided by financing activities | $275 | $1,093,543 | | **Net change in cash, cash equivalents and restricted cash** | **$(758,515)** | **$939,228** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, acquisitions, fair value measurements, and other financial specifics, including an impairment loss on SummerBio and a collaboration agreement with Delta Air Lines - In June 2022, the company's equity method investment, SummerBio, LLC, decided to wind down operations, resulting in a **$6.8 million impairment loss** for Joby[40](index=40&type=chunk) - The company completed the acquisition of an aerospace software engineering company on May 17, 2022, for **$7.2 million in cash**, with the purchase price allocated to goodwill, intangible assets, and other assets and liabilities[62](index=62&type=chunk)[65](index=65&type=chunk) - The fair value of the Earnout Shares Liability decreased from **$109.8 million** at the beginning of 2022 to **$58.5 million** as of September 30, 2022, resulting in a **gain of $51.3 million**[55](index=55&type=chunk)[86](index=86&type=chunk) - Subsequent to the quarter end, on October 7, 2022, the company entered into a collaboration agreement with Delta Air Lines and issued **$60 million worth of common stock** to Delta[101](index=101&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Joby's pre-revenue eVTOL development, operational factors, and financial results, noting a 43% increase in Q3 2022 operating expenses and sufficient liquidity for the next twelve months [Overview and Business Model](index=25&type=section&id=Overview%20and%20Business%20Model) Joby Aviation is developing a piloted, all-electric eVTOL aircraft for an app-based aerial ridesharing service, targeting initial operations with the DoD in 2024 and commercial service in 2025 - Joby's eVTOL aircraft is designed to transport a pilot and four passengers at speeds up to **200 mph** with a range of **150 miles**[104](index=104&type=chunk) - The company plans a **vertically integrated model**, operating its own aircraft for an aerial ridesharing service rather than selling them to third parties[105](index=105&type=chunk) [Key Factors Affecting Operating Results](index=26&type=section&id=Key%20Factors%20Affecting%20Operating%20Results) Success hinges on UAM market development, competition, and FAA certification, with revised eVTOL classification and delayed operational regulations potentially impacting commercial launch timelines - In May 2022, the FAA revised its certification approach for eVTOLs, requiring certification under the **"powered lift" classification** instead of Part 23, which could impact timelines[115](index=115&type=chunk) - The FAA does not expect to finalize operational regulations (SFARs) for eVTOL aircraft until **late 2024**, which could delay the launch of commercial passenger service[116](index=116&type=chunk) - Contracts with the Department of Defense under the Agility Prime program have a potential value of more than **$75 million** through 2025[118](index=118&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q3 2022 saw a 42% increase in R&D and 49% in SG&A expenses, primarily due to personnel costs, while net loss remained flat at approximately $79 million due to fair value gains Comparison of Operating Results (in thousands) | | Three Months Ended Sep 30, | Change | Nine Months Ended Sep 30, | Change | | :--- | :--- | :--- | :--- | :--- | | | **2022** | **2021** | **($)** | **(%)** | **2022** | **2021** | **($)** | **(%)** | | Research and development | $73,870 | $52,092 | $21,778 | 42% | $220,146 | $140,310 | $79,836 | 57% | | Selling, general and administrative | $23,251 | $15,607 | $7,644 | 49% | $70,700 | $41,587 | $29,113 | 70% | | **Loss from operations** | **$(97,121)** | **$(67,699)** | **$(29,422)** | **43%** | **$(290,846)** | **$(181,897)** | **$(108,949)** | **60%** | | **Net loss** | **$(79,206)** | **$(78,858)** | **$(348)** | **—%** | **$(191,099)** | **$(185,369)** | **$(5,730)** | **3%** | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2022, Joby held approximately $1.08 billion in cash and investments, deemed sufficient for the next twelve months, with near-term focus on manufacturing and certification - As of September 30, 2022, the company had cash, cash equivalents, restricted cash, and short-term investments totaling approximately **$1.08 billion**[153](index=153&type=chunk) - Management believes that current cash and investments will be sufficient to fund operations for at least the **next twelve months**[153](index=153&type=chunk) - Net cash used in operating activities for the nine months ended September 30, 2022, was **$182.8 million**, a **24% increase** from the same period in 2021[158](index=158&type=chunk)[159](index=159&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its $1.08 billion in cash and short-term investments, with a 10% rate change not expected to have a material impact - The company's primary market risk is interest rate risk on its **$1.08 billion** in cash and short-term investments[171](index=171&type=chunk) - The investment policy focuses on capital preservation, utilizing highly rated securities and liquid money market funds, with a **10% change in interest rates** not expected to have a material impact[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls are effective, but a material weakness in internal control over financial reporting persists due to insufficient accounting personnel, with remediation efforts underway - A material weakness in internal control over financial reporting was identified in a prior period, relating to a lack of sufficient accounting personnel with technical expertise[175](index=175&type=chunk) - The company is in the process of remediating the material weakness by hiring additional staff and engaging external accounting experts[176](index=176&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, unregistered equity sales, and a list of exhibits filed with the quarterly report [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course claims but does not anticipate a material adverse impact on its financial position or results of operations - The company is not involved in any material legal proceedings as of the reporting date[180](index=180&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the comprehensive discussion of risks and uncertainties detailed in the company's Annual Report on Form 10-K for the year ended December 31, 2021, with no new risk factors presented - For a comprehensive discussion of risk factors, the company refers investors to its Annual Report on Form 10-K filed on March 28, 2022[181](index=181&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On July 21, 2022, CEO JoeBen Bevirt purchased 35,000 shares of common stock from another executive in a private sale at $5.53 per share - A private sale of **35,000 shares of common stock** occurred on July 21, 2022, between two company executives[182](index=182&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including an agreement with the U.S. Air Force and an amendment to the collaboration agreement with Uber - Key exhibits filed include an agreement with the U.S. Air Force dated July 28, 2022, and an amendment to the collaboration agreement with Uber Technologies, Inc. dated September 1, 2022[187](index=187&type=chunk)

Joby Aviation, Inc. (NYSE:JOBY) Q3 2022 Earnings Conference Call November 2, 2022 5:00 PM ET Company Participants JoeBen Bevirt - Founder, CEO, Chief Architect, President & Director Matthew Field - CFO & Treasurer Paul Sciarra - Executive Chairman Didier Papadopoulos - Head, Aircraft OEM Conference Call Participants Andres Sheppard - Cantor Fitzgerald David Zazula - Barclays Bank Edison Yu - Deutsche Bank William Peterson - JPMorgan Chase & Co. Operator Good afternoon, and thank you for holding. My name is ...

loby Shareholder Letter Q3 2022 Third Quarter 2022 Highlights Delta Partnership We announced a multi-year, multi-market commercial and operational partnership with Delta Air Lines, the world's leading airline. Delta also made an upfront equity investment of $60 million in Joby, with the opportunity to expand their total investment to $200 million. Certification Progress Acceptance of our Means of Compliance rose from 74% to 84% and our first equipment-level qualification plan was accepted by the FAA for the ...