Aurora Innovation(AUR) - 2024 Q1 - Quarterly Results

markdown [Letter to Shareholders](index=2&type=section&id=Letter%20to%20Shareholders) [Introduction and Q1 2024 Highlights](index=2&type=section&id=Introduction%20and%20Q1%202024%20Highlights) Aurora reports a strong Q1 2024, progressing towards its planned Commercial Launch by year-end with key autonomy and financial advancements - The company is on track for its planned **Commercial Launch at the end of 2024**[3](index=3&type=chunk) - Key progress in Q1 includes improving the Aurora Driver's performance, advancing the launch lane Safety Case, and maintaining **financial discipline**[3](index=3&type=chunk) - Hosted an Analyst & Investor Day in March, showcasing technology maturity, partnerships, and a business model designed for rapid, capital-efficient growth and **high gross margins**[4](index=4&type=chunk) [Technology and Safety Progress](index=4&type=section&id=Technology%20and%20Safety%20Progress) Aurora advances its Driver technology with a strong safety focus, achieving high ARM and API scores, nearing commercial launch targets - The Autonomy Readiness Measure (ARM), a weighted measure of completeness for the launch lane Safety Case, reached **95% as of mid-April 2024**[12](index=12&type=chunk) - In Q1, **75% of commercial loads** on the Dallas to Houston launch lane achieved a **100% Autonomy Performance Indicator (API)**, meaning they required no on-site support. This is a **13-point sequential improvement**[16](index=16&type=chunk) - The company is targeting approximately **90% of loads to have a 100% API at Commercial Launch**[16](index=16&type=chunk) [Commercialization and Operational Readiness](index=6&type=section&id=Commercialization%20and%20Operational%20Readiness) Aurora secured multi-year customer commitments, significantly increased commercial load volume, and achieved high on-time performance over 1.5 million miles - Secured **multi-year contractual commitments** on volume and pricing from multiple customers, with mechanisms to transition to driverless operations[19](index=19&type=chunk) - Currently scheduling about **120 commercial loads per week**, a **threefold increase** in volume compared to the previous year[20](index=20&type=chunk) Cumulative Operational Metrics (as of 4/30/24) | Metric | Value | | :--- | :--- | | Loads Delivered | 5,450 | | Commercial Miles Driven | ~1.5 million | | On-Time Performance | Nearly 100% | [Regulatory Landscape](index=8&type=section&id=Regulatory%20Landscape) The regulatory environment in Texas is favorable for autonomous vehicle launch, requiring no additional steps, with Aurora actively engaging communities - Autonomous vehicle deployment is permitted under existing law in the vast majority of U.S. states, including the **Texas launch market**[27](index=27&type=chunk) - No additional regulatory steps are required to launch in Texas once the company's **Safety Case is closed**[27](index=27&type=chunk) - The company is conducting community engagement events along the I-45 corridor in Texas to build **public trust and awareness**[28](index=28&type=chunk) [Positioning for Scale](index=9&type=section&id=Positioning%20for%20Scale) Aurora is positioned for large-scale commercialization through strategic OEM partnerships and exclusive hardware development agreements with Continental and Fabrinet - Established partnerships with OEMs **Volvo Trucks and PACCAR** to design and manufacture autonomy-enabled trucks with redundant components necessary for safe driverless operations[30](index=30&type=chunk) - Long-term, exclusive partnership with **Continental** to jointly develop, manufacture, and service future generations of Aurora Driver hardware, with scalable production planned for **2027**[30](index=30&type=chunk)[34](index=34&type=chunk) - Engaged **Fabrinet** to manufacture the next-generation Aurora Driver hardware kit, planned for introduction in **2025**, which is expected to cause a **step-function reduction in hardware costs**[34](index=34&type=chunk) [CFO's Financial Commentary](index=12&type=section&id=CFO%27s%20Financial%20Commentary) Aurora demonstrated strong fiscal discipline in Q1 2024 with controlled operating expenses and cash use, ending with $1.2 billion in cash, extending its runway into Q4 2025 Q1 2024 Financial Summary | Metric | Value (in millions) | | :--- | :--- | | Operating Expenses (incl. SBC) | $193 | | Operating Expenses (excl. SBC) | $157 | | Operating Cash Use | ~$150 | | Capital Expenditures | $8 | - Ended Q1 2024 with **$1.2 billion in cash & short-term and long-term investments**[40](index=40&type=chunk) - Current liquidity is expected to fund operations into the **fourth quarter of 2025**, an extension due to identified cost savings[40](index=40&type=chunk) [Financial Statements](index=14&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=14&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, Aurora reported total assets of $2.089 billion, a decrease from year-end 2023, with liabilities at $231 million and equity at $1.858 billion Condensed Consolidated Balance Sheet Data (in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,089** | **$2,235** | | Cash and cash equivalents | $454 | $501 | | Short-term investments | $662 | $699 | | Total current assets | $1,142 | $1,217 | | **Total Liabilities** | **$231** | **$250** | | Total current liabilities | $110 | $111 | | **Total Stockholders' Equity** | **$1,858** | **$1,985** | [Condensed Consolidated Statements of Operations](index=15&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2024, Aurora reported a net loss of $165 million ($0.11 per share), an improvement from Q1 2023, driven by lower operating expenses Statement of Operations Highlights (in millions, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total operating expenses | $193 | $208 | | Loss from operations | ($193) | ($208) | | **Net loss** | **($165)** | **($196)** | | **Basic and diluted net loss per share** | **($0.11)** | **($0.17)** | [Condensed Consolidated Statements of Cash Flows](index=16&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, net cash used in operating activities was $150 million, with $101 million provided by investing activities, ending with $471 million in cash Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($150) | ($136) | | Net cash provided by investing activities | $101 | $54 | | Net cash provided by financing activities | $2 | $0 | | **Net decrease in cash** | **($47)** | **($82)** | | **Cash at end of period** | **$471** | **$195** | [Non-GAAP Financial Information](index=17&type=section&id=Non-GAAP%20Financial%20Information) Aurora's Q1 2024 Non-GAAP Adjusted EBITDA loss was $152 million, an improvement from Q1 2023, primarily excluding stock-based compensation Reconciliation of Net Loss to Adjusted EBITDA (in millions) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss | ($165) | ($196) | | Stock-based compensation | $36 | $39 | | Change in fair value of derivative liabilities | ($12) | $2 | | **Adjusted EBITDA** | **($152)** | **($164)** | - Adjusted EBITDA is defined as net loss adjusted to exclude impacts of income taxes, depreciation and amortization, stock-based compensation, changes in fair value of derivative liabilities, goodwill impairment, and other non-operating income and expenses[54](index=54&type=chunk) [Other Information](index=13&type=section&id=Other%20Information) [Cautionary Statement Regarding Forward-Looking Statements](index=13&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This document contains forward-looking statements regarding milestones, commercialization, and financial projections, subject to risks detailed in SEC filings - The document contains forward-looking statements concerning the company's ability to achieve milestones, commercialize the Aurora Driver, and realize benefits from partnerships[43](index=43&type=chunk) - These statements are not guarantees and involve known and unknown risks. Readers are advised to consult the **"Risk Factors" section** of the company's Form 10-K and other SEC filings[43](index=43&type=chunk)