Joby Aviation(JOBY)2023-02-23 00:33Financial 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]