Aurora Innovation(US:AUR)2024-10-30 22:09Financial 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]