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Aurora Innovation(AUR) - 2021 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In 2021, Aurora reported $83 million in collaboration revenue, primarily from development work associated with Toyota [34] - Operating expenses totaled $813 million, with R&D expenses at $491 million, indicating a strong investment in autonomy [35][36] - The company ended 2021 with $1.6 billion in cash, providing a solid financial foundation for future operations [38] Business Line Data and Key Metrics Changes - Aurora's operational fleet expanded to 18 trucks, more than doubling its size from the previous quarter, enhancing testing and development capabilities [19] - The company launched two multi-phase commercial pilots with FedEx and Uber Freight, demonstrating operational progress in autonomous trucking [14][16] Market Data and Key Metrics Changes - Aurora is engaged with major players in the freight industry, including the largest LTL freight carrier and a significant freight broker, indicating strong market interest [17] - Initial non-binding indications of interest for Aurora Horizon subscription reservations exceeded anticipated launch fleet capacity through 2025, highlighting robust demand for autonomous trucking solutions [17] Company Strategy and Development Direction - Aurora aims to launch its autonomous trucking business, Aurora Horizon, in late 2023 and its ride-hailing business in late 2024, focusing on safety and scalability [9][10] - The company emphasizes a common core technology in the Aurora Driver, which is designed to work across various vehicle types, enhancing development efficiency [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformative potential of self-driving technology and its societal benefits, aligning with the Department of Transportation's principles for Transportation Innovation [33][31] - The company is committed to transparency and collaboration with stakeholders, including regulators and safety advocacy groups, to ensure safe deployment of autonomous technology [31] Other Important Information - Aurora's proprietary FirstLight LiDAR technology enhances its ability to operate safely at highway speeds, a critical component of its autonomous vehicle strategy [27][28] - The company has invested heavily in virtual testing technology, allowing for efficient and safe training of its self-driving systems [29][30] Q&A Session Summary Question: Discussion on digitally enabled fleets and autonomy opportunities - Management highlighted the importance of understanding unique needs in the freight space through partnerships with companies like US Xpress and FedEx [41][42] Question: Metrics for investors regarding real-world miles driven - Management indicated that while traditional metrics may not be as useful, they are exploring ways to communicate product maturity and progress [48][51] Question: Expectations for removing safety drivers from trucks - Management reiterated the goal of a commercial launch by the end of 2023, emphasizing the need for continuous advancement in technology before removing oversight [56][57] Question: Clarification on cash burn rate and future expectations - Management confirmed a clean cash burn rate of $563 million for 2021 and expressed confidence in having sufficient cash to support operations through commercialization [58][61]