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Aurora Innovation(AUR) - 2025 Q1 - Quarterly Results

Executive Summary & Vision Letter to Shareholders Aurora has achieved driverless commercial operations, shifting focus from technology validation to enhancing customer value and becoming a key freight industry partner, prioritizing safety and financial management for sustainable, scalable business - Driverless trucks, powered by Aurora Driver, have commenced commercial operations, marking the beginning of a significant business journey3 - The company's current focus is on demonstrating technological potential, enhancing product value for customers, and ultimately becoming an indispensable partner in the freight industry45 Operational Highlights & Safety Safety Case Closure & Regulatory Support Aurora completed its Dallas-Houston launch lane safety case with 100% Autonomy Readiness Measure, published a driverless safety report, and secured bipartisan state and federal support aligning with new autonomous trucking regulatory frameworks Safety Case Framework & ARM Achievement Aurora completed its Dallas-Houston safety case, achieving 100% Autonomy Readiness Measure, and published a comprehensive driverless safety report - Aurora completed the safety case for its Dallas-Houston launch lane, confirming the acceptable safe operation of its autonomous vehicles on public roads6 - With the completion of remaining software and vehicle declarations, the Autonomy Readiness Measure (ARM) reached 100%, validating the Aurora Driver's capability for driverless operations78 - Aurora published its "Driverless Safety Report," detailing how the Aurora Driver operates safely, including aspects like risk management, redundant systems, and cybersecurity9 Regulatory Engagements & Support Aurora actively engages with federal and state officials, securing support from Texas Governor Greg Abbott, and aligning with new autonomous trucking regulatory frameworks from California and NHTSA - Aurora actively provides regular updates and briefings on its driverless operations plans to federal and state officials, including FMCSA, NHTSA, NTSB, and the Texas Department of Transportation, to build trust and lay the groundwork for long-term deployment1013 - Texas Governor Greg Abbott expressed support, believing the Aurora Driver will further stimulate economic growth and job creation in Texas13 - California Governor Gavin Newsom's administration released a draft regulatory framework for autonomous trucks, and the National Highway Traffic Safety Administration (NHTSA) also published a new autonomous vehicle framework, both highly aligned with Aurora's safety-first, innovation-driven approach131416 Commercial Driverless Operations Launch Aurora launched regular driverless commercial operations for Uber Freight and Hirschbach between Dallas and Houston, exceeding performance expectations with 95% API, and plans to expand its fleet to dozens of trucks by late 2025 On-Road Performance & Initial Deployments Aurora achieved 95% API for production software loads in Q1, launched regular driverless commercial deliveries for Uber Freight and Hirschbach, and plans to expand its operational fleet to dozens of trucks by late 2025 - In Q1, 95% of loads using production release software achieved 100% Autonomy Performance Indicator (API), exceeding the commercial launch expectation of 90%19 - On April 27, Aurora Driver-powered trucks began regular driverless commercial deliveries for Uber Freight and Hirschbach between Dallas and Houston, completing over 4,000 driverless miles20 - The company has expanded driverless trucks to two per day and expects to operate dozens of trucks by the end of 202521 Value Proposition for Freight Industry Aurora Driver addresses critical freight industry challenges like driver shortages and asset underutilization, offering scalable driver supply, improved fuel efficiency, and enhanced safety to reduce consumer costs - The Aurora Driver addresses major challenges in the freight industry, such as structural driver shortages, high turnover rates, and underutilized assets, by providing a scalable, stable driver supply and is expected to nearly double truck utilization23 - The technology is expected to improve fuel economy by 32%, creating value for customers and the public through safer roads, cleaner transportation, and faster, more cost-effective freight, ultimately reducing consumer costs2324 Cumulative Operational Performance (September 23, 2021, to May 7, 2025) | Metric | Value | | :----- | :---- | | Commercial Loads | Nearly 1,000 | | Miles | 1.5 million miles | | On-Time Performance (Aurora Controlled) | 90%+ | Product Roadmap & Scaling Future Lane Expansion & Operating Domain Aurora plans to expand driverless operations beyond Dallas-Houston to Fort Worth-El Paso-Phoenix by late 2025, establishing a 1,000+ mile autonomous lane, and extending operational capabilities to include night driving and adverse weather conditions - The Aurora Driver has validated driverless operations on the Dallas-Houston lane under daytime, clear weather conditions, transporting two trailer types (53-foot dry vans and refrigerated trailers)31 - The company expects to expand driverless operations to Fort Worth-El Paso and further to Phoenix in the second half of 2025, opening an autonomous lane exceeding 1,000 miles32 - In the second half of 2025, Aurora plans to expand its operating domain by validating operations under night driving and adverse weather conditions (including rain and high winds), significantly increasing autonomous truck utilization35 2025 Product Roadmap | Quarter | Focus | | :------ | :---- | | 2Q25 | Increase Driverless Loads (Dallas-Houston) | | 3Q25 | Fort Worth - El Paso - Phoenix | | 4Q25 | Rain & High Winds | Scale-Focused Execution & Partnerships Aurora is advancing a mass-production-designed autonomous platform through unparalleled OEM and Tier 1 partnerships, developing second and third-generation hardware kits for significant cost reduction and tens of thousands of truck deployments - Aurora's OEM and Tier 1 supplier partnerships are unparalleled in the industry, enabling the large-scale deployment of autonomous trucks39 - The company has made significant progress in co-developing an autonomous platform designed for high-volume production with its partners40 - The second-generation commercial hardware kit is under development, expected to deliver performance improvements and significantly reduce hardware costs, with B samples already received from contract manufacturer Fabrinet for testing40 - The third-generation commercial hardware kit, developed in collaboration with Continental, is expected to enable true large-scale deployment of tens of thousands of trucks40 Financial Performance & Outlook CFO Letter: Financial Overview Aurora demonstrated strong financial discipline in Q1 2025 with $211 million in operating expenses and $142 million in cash usage, extending liquidity to Q4 2026 with nearly $1.2 billion in cash and short-term investments Q1 2025 Operating Expenses (Millions USD) | Category | Amount (Millions USD) | | :------- | :-------------------- | | Total Operating Expenses (incl. SBC) | $211 | | Stock-Based Compensation (SBC) | $34 | | Operating Expenses (excl. SBC) | $177 | | Research & Development (excl. SBC) | $153 | | Selling, General & Administrative (excl. SBC) | $24 | Q1 2025 Cash Flow & Liquidity (Millions USD) | Metric | Amount (Millions USD) | | :----- | :-------------------- | | Cash Used in Operating Activities | $142 | | Capital Expenditures | $8 | | Cash & Short-Term Investments (End of Quarter) | Nearly $1,200 | | Net Proceeds from Common Stock Issuance | $68 | - The company's current liquidity is projected to support operations through Q4 2026, attributed to additional capital and improved business efficiencies46 - For the remainder of 2025, average quarterly cash usage is projected to be between $175 million and $185 million, reflecting increased capital expenditures for business scaling and ongoing development of new hardware projects47 Condensed Consolidated Financial Statements This section presents Aurora Innovation, Inc.'s unaudited Q1 2025 condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, detailing the company's financial position, performance, and liquidity Condensed Consolidated Balance Sheets This section provides selected items from Aurora's condensed consolidated balance sheets as of March 31, 2025, and December 31, 2024, highlighting key asset, liability, and equity changes Condensed Consolidated Balance Sheets (Selected Items, Millions USD) | Item | March 31, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------- | :---------------- | :----- | | Cash and Cash Equivalents | $170 | $211 | -$41 | | Short-Term Investments | $989 | $1,012 | -$23 | | Total Current Assets | $1,193 | $1,254 | -$61 | | Total Assets | $2,071 | $2,138 | -$67 | | Total Current Liabilities | $125 | $105 | +$20 | | Total Liabilities | $286 | $263 | +$23 | | Total Stockholders' Equity | $1,785 | $1,875 | -$90 | Condensed Consolidated Statements of Operations This section presents Aurora's condensed consolidated statements of operations for the three months ended March 31, 2025, and 2024, detailing revenue, operating expenses, and net loss Condensed Consolidated Statements of Operations (Millions USD, except per share data) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change (YoY) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------------ | | Research & Development | $182 | $166 | +$16 | | Selling, General & Administrative | $29 | $27 | +$2 | | Total Operating Expenses | $211 | $193 | +$18 | | Operating Loss | $(211) | $(193) | -$18 | | Net Loss | $(208) | $(165) | -$43 | | Net Loss Per Share, Basic and Diluted | $(0.12) | $(0.11) | -$0.01 | | Weighted-Average Shares Outstanding, Basic and Diluted | 1,744 | 1,537 | +207 | Condensed Consolidated Statements of Cash Flows This section outlines Aurora's condensed consolidated statements of cash flows for the three months ended March 31, 2025, and 2024, detailing cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (Selected Items, Millions USD) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change (YoY) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------------ | | Net Loss | $(208) | $(165) | -$43 | | Stock-Based Compensation | $34 | $36 | -$2 | | Net Cash Used in Operating Activities | $(142) | $(150) | +$8 | | Purchases of Property and Equipment | $(8) | $(8) | $0 | | Net Cash from Investing Activities | $19 | $101 | -$82 | | Net Cash from Financing Activities | $82 | $2 | +$80 | | Net Decrease in Cash, Cash Equivalents, and Restricted Cash | $(41) | $(47) | +$6 | | Cash, Cash Equivalents, and Restricted Cash, End of Period | $186 | $471 | -$285 | Non-GAAP Financial Information Aurora provides non-GAAP adjusted EBITDA, excluding non-recurring or non-cash items like stock-based compensation and fair value changes, to enhance operational transparency, reporting negative $171 million in Q1 2025 Non-GAAP Adjusted EBITDA Reconciliation (Millions USD) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net Loss | $(208) | $(165) | | Depreciation and Amortization | $6 | $5 | | Stock-Based Compensation | $34 | $36 | | Change in Fair Value of Derivative Liability | $9 | $(12) | | Other Income, Net | $(12) | $(16) | | Adjusted EBITDA | $(171) | $(152) | - Adjusted EBITDA is defined as net loss, adjusted for income tax, depreciation and amortization, stock-based compensation, change in fair value of derivative liability, goodwill impairment, and other non-operating income and expenses61 - Non-GAAP Adjusted EBITDA is used by management to assess ongoing operations and provide greater transparency to investors, but it is not a substitute for GAAP measures6062 Legal & Disclosures Cautionary Statement Regarding Forward-Looking Statements This section contains cautionary statements about forward-looking information, noting inherent risks and uncertainties that could cause actual results to differ materially from expectations, advising readers to consult SEC filings for detailed risk factors - The investor letter contains forward-looking statements, identified by words such as "believe," "may," "will," and "expect," which are based on management's current assumptions49 - These statements involve known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements49 - Readers are advised to review the "Risk Factors" section in Aurora Innovation, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents filed by the company with the SEC from time to time, for a discussion of factors that could cause actual results to differ materially49