Yahoo Finance Joby Aviation Inc (JOBY) Q1 2024 Earnings Call Transcript Highlights: Navigating Financials and ...
Cash and Short-term Investments: $924 million as of Q1 2024.
Net Loss: $95 million for Q1 2024.
Loss from Operations: $146 million for Q1 2024.
Interest and Other Income: $51 million for Q1 2024.
Adjusted EBITDA: Loss of $110 million in Q1 2024.
Revenue: Expected to grow with flight hours throughout the year.
Capital Expenditure: $7 million on property and equipment in Q1 2024.
Full Year Cash Spending Outlook: $440 million to $470 million.
Release Date: May 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Joby Aviation Inc (NYSE:JOBY) has successfully completed the first three stages of the FAA type certification process, being the first air taxi company to do so.
The company has begun submitting system level test plans, indicating progress in the fourth stage of the certification process.
Joby Aviation Inc (NYSE:JOBY) has expanded its manufacturing capabilities, including acquiring a new facility in Dayton, Ohio, and breaking ground on an expansion in Marina, California.
The company has secured a multilateral agreement with three Abu Dhabi government bodies, supporting the establishment of air taxi services in the UAE.
Joby Aviation Inc (NYSE:JOBY) has a strong partnership with Toyota, which supports its manufacturing processes and helps in planning for scale manufacturing.
Negative Points
The company reported a net loss of $95 million in Q1 2024, reflecting ongoing high expenses in operations and development.
Joby Aviation Inc (NYSE:JOBY) faces significant regulatory hurdles and paperwork as it continues to work through the FAA certification process.
There are inherent risks in relying heavily on in-house manufacturing and testing, which could impact scalability and integration with broader aerospace ecosystems.
The company's reliance on future commercial operations and partnerships, such as those in the UAE, which are still under development and not yet generating revenue.
Joby Aviation Inc (NYSE:JOBY) is in a capital-intensive phase, with significant investments in facilities and equipment that have yet to prove their long-term profitability.
Q & A Highlights
Q: Hi, good morning, everyone. Congratulations on the quarter and thanks for taking our questions. Job and you know, I want to maybe start with you a obviously a lot of movement and partnerships. They're curious to get your thoughts. You know, it almost seems fundamentally that the industry is perhaps moving more and more to ramp up commercialization there faster than than in the US. Now obviously, this is still contingent on certification, but just curious your thoughts on how you see that marketing developing in, particularly in the near term? I get the sense that it's becoming maybe more and more scalable faster. Just curious to get your thoughts. Thank you. A: Thank you, Andreas, and great to hear from you. So yes, we are seeing fantastic lean in from all the different government agencies in the UAE, and we're very grateful for the support across the regulatory side, the infrastructure side and yes, very excited about the momentum. I would say that all of the work that we're doing there is built upon the foundation of the work we've been doing for the last six years, plus with the FA and leverages everything that we're doing on Stage four, the certification basis. So this is really a it up a box plus one offer opportunity for us in addition to the fantastic work we're doing with the DoD as we prepare to take it two aircraft to McNeil aerospace in Florida.
Q: Got it. Okay. That's super helpful. Thank you for that context. And maybe just a quick follow-up. I'm curious if we have a time line as to when you would expect to roll out the, um, maybe the first conforming aircraft and how close are we to transitioning that from a conforming aircraft with a pilot onboard? Thank you. A: Thanks, for the question on that front, aligned with what we communicated in the previous quarter. In terms of our roadmap on that front, maybe reiterate, there's three key things that are required to make progress on conformity one, making sure that we have our design released and submitted and accepted by the FDA two is developing our conforming manufacturing line so that we can build to those designs and then three progressing towards Stage four, where you actually have the test plans against which you're going to execute with your test assets. As a reminder, there's no way around those three things. And that's been our focus. And as you can see, we've been able to make progress on all these fronts and pretty happy with that. Now on you execute on these in three tiers, right. One, if we think about the perimeter we've talked about before the components systems and then you move into the aircraft. We've talked about a lot of the component development and execution last year and how we're building on that this year, having submitted additional test plans on more components, but also now we're moving into the system level tier of that pyramid and again making progress on that. So you should expect us to see continued to progress along that midyear towards the tip of the pyramid, which is the aircraft in short order. We're well on track that we discussed in our roadmap last year.
Q: Hey, good afternoon, everyone. Yes, so you know, look, it sounds like from your prepared remarks, things are progressing towards commercialization on. Thank you. For all the details you provided regarding your progress with the U.AE. So I guess, you know, for your first commercial mission on, is this going to be an international route or with a country like the UAE? Or is this going to be U.S. based? Any color on that would be helpful. A: Interesting. Yes, we do see we do continue to see two really exciting path forward, both here in the US in and New York and LA in partnership with Delta as well as the path in the UAE and the really significant lean in from the GCA. two bring the opportunity for us to begin commercial service next year. So very excited about that. And again, on the DoD front, very pleased with the progress on that on that third pillar as well.
Q: Great. And then when we look at other routes, like I'm sure you have the aircraft business nearing certification, you're studying some of these routes a little closer. Do you have any updated view regarding, you know, a price that you're going to charge for some of these routes? And then as you're evaluating US and international on opportunities like what city pairs or within which cities on stops. Are you really looking at what are the economics of that on any additional detail about actual operations would be helpful. A: Thanks for the question, Christine. This is Paul. I'm on. We're obviously very much deep in the evaluation of routes to understand price elasticity and understand demand across them. And that goes for the geographies that we're looking at here in the US and now more recently, both in Dubai and then more broadly across the UAE, given the recent announcement, we don't have any updates to our broad thinking around economics, except to say, both in the U.S. As we think about New York and L.A. And obviously, as we think about Dubai and the broader UAE. And all of those are areas that have relatively high propensity to pay. They've got difficult, in many cases, very difficult infrastructure to navigate on the ground. So they're really sort of tailor made locations as we think about the first few locations for launch. I mean, I think we're very much deep on the UA side so there are 14 million tourists there. There is a large number of sites across the various Emirates that are not so easy to access. And I think that that demand profile is going to look very favorable, but we're not yet at a point where we're going to kind of talk about the specifics around what that's going to look like, although the work is ongoing, and we hope to have updates on that.
Q: Hey, good afternoon, everyone. And just on the flight campaign, can you talk about the type of flying that are done on the preproduction aircraft versus the production aircraft and including what are the differences between the two of any notable differences between the two as you operate them? A: Yes, Ari, thanks for the great question. So the campaign we just that we just completed on the earlier airplane was obviously extremely successful, right on 51 hundred flights, 33,000 miles, and it covered a lot of aspects in terms of our comp performance, maintainability and so on that we talked about earlier. And one of the key things that we identified is that the fundamental design of the airplane is solid and it delivers on the mission that has the difference between that aircraft and the aircraft that we're producing right now from the manufacturing line is that the airplanes coming out of the line right now are effectively being built under our production manufacturing line following our quality management system, which really drives us and progresses us towards the production certificate price as a reminder,
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
