Joby Aviation, Inc.

Good afternoon, and thank you for holding. My name is Sherry, and I will be your conference operator today. Welcome to Adobe Aviation first quarter 2022 conference call. At this time, all parties are in a listen-only mode. As a reminder, today's call is being recorded, and a replay of the call will be available on the investor relations section of the company's website. Please note that some of the company's discussion today will include statements regarding future events and financial performance. and statements of belief, expectation, and intent. These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. For a more detailed discussion of these risks and uncertainties, please refer to the company's filings with the SEC and the Safe Harbor disclaimer contained in today's shareholder letter. The forward-looking statement included on this call are made only as of the date of this call and the company does not assume any obligation to update or revise them. This call will also include references to the company's adjusted EBITDA, which is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to the most direct comparable GAAP measure is included in today's shareholder letter, which will be posted on the company's website at ir.jobeaviation.com. On the call from management today are Joe Ben Beaver, founder and chief executive officer, Paul Sierra, executive chairman, DDA Papadopoulos, head of aircraft development and manufacturing, Bonnie Simi, head of operations and people, and Matt Field, chief financial officer. After their prepared remarks, we will open up the call to analysts for questions. I will now turn the call over to Mr. Beaver.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for today's call. While it's only been a short time since we last spoke, we've made a substantial amount of progress, and I'm really excited about the pace at which we're moving. We continue to execute against our plan, and we remain on track to meet our operational goals and spending guidance for the year. You might have caught the recent 60-minute segment that focused on eVTOL technology, and Joby in particular. While it was great to introduce our aircraft to Anderson Cooper and to share our story with millions of viewers at home, it was a comment from the acting administrator of the FAA that resonated most with us. He said, and I quote, we want to be very careful. We want to be very measured, but you're absolutely right. This is real, and this is happening. And that's exactly the mindset that continues to guide us here at Joby. There's plenty to do. We need to do it in a professional, mature, and thorough way, and the opportunity is substantial. Before I hand it over to the team, I'd like to touch on three particular highlights from the quarter. 1st, our aircraft as well as continuing our test program with our Pre production aircraft. Both in the air and on the ground, we've made excellent progress with the build of our 1st production intent aircraft. Which is scheduled to be the 1st to roll off our pilot manufacturing line in Marina, California. The majority of the large composite parts for this aircraft were completed during the 1st quarter. And we began work on the tail and wing structural assemblies. Both of these aircraft will play a critical role in our certification campaign and we're really pleased with the progress we're making there. Second, I was able to travel to the UK and Japan during the quarter. There's no doubt that both countries have really leaned into deploying this technology in their markets. The conversations we're having with regulators in these countries about routes to certification and initial operations are very positive and leave me incredibly excited about their potential. In the UK, I had the opportunity to visit the Whittle Laboratories in Cambridge as part of the World Economic Forum event with Prince Charles and the UK Secretary of State for Business, Kwasi Kwarteng. Prince Charles is showing real leadership on this topic and the UK government's commitment to aggressively fund climate neutral aviation technology development via the Aerospace Technology Institute underlines their intention to be global leaders in this field. In Japan, I had the opportunity to see the incredible work Toyota is doing to support our manufacturing. Along with the resources they have deployed here in California, they're an invaluable partner as we look ahead to scaling our production. We also had very productive conversations with JCAB, Japan's equivalent to the FAA. While I'm on the topic of our international partners, I should also mention that we were able to add TMAP to our partnership with SK Telecom in South Korea. TMAP is the country's largest mobility platform, and the unprecedented amount of transportation and mapping data they've gathered over the past 20 years will play a key role in informing the design of a compelling service in Korea. Finally, we're thrilled to be able to release the results of the acoustic testing that we completed with NASA last year. Measurements obtained by NASA across six days of flight testing show that the real-life performance of our pre-production aircraft matched both our predictions and our targeted goals. You can read more about the acoustics of our aircraft in our letter to shareholders. But during overhead flight, the aircraft registered an equivalent of 45 A-weighted decibels from a distance of 500 meters, which we're confident means it will be barely perceptible when flying over cities. And across multiple takeoffs and landings, which were representative of our planned operation, it registered below 65 DBA at a distance of 100 meters from the flight path, meaning it's as quiet as a conversation during the loudest phases of flight. And while it's easy to talk about decibels, this doesn't capture the quality of the sound. We purposefully designed our aircraft to avoid the penetrating low-frequency wop-wop we associate with helicopters, and instead mimic the broadband sounds we find in nature, like the wind rushing through trees. It's hard to overstate how important this achievement is to Joby's vision. Aviation noise is a key concern for millions of residents around the world, but we've demonstrated how Joby is uniquely positioned to deliver flights exactly where people want them without having a negative impact on our environment. And the numbers I spoke about aren't theoretical numbers. They aren't predictions that may or may not pan out. These are actual results from the full-scale vehicle in the real world validated by NASA. And I'd like to say a huge thank you to the team at NASA for working with us to measure our aircraft, and of course to the team at Joby for working so hard to achieve this goal. It's yet another example of how our incredible team delivers on the goals we set ourselves, day in and day out. In a moment, I'm going to hand it over to Didier to talk about the progress we've made on certification during the quarter. But first, I'd like to address the commentary we've seen this week regarding the certification basis for EVTOL aircraft. We're proud of the fact that Joby has a 10 year history of working with the FAA under leadership from both sides of the aisle and under the guidance of a number of different FAA administrators. We share their vision for reaching the next level of safety and efficiency, and we support them in their goal of demonstrating global leadership in how new customers and technologies can be safely integrated into the aviation system. We are in active conversations with them about the most expedient route to certifying our aircraft, and we would note two important things they've said this week. First, that all of the development work done by current applicants remains valid. And second, that they don't expect any change of approach to add delays to type certification or operational approval. On that basis, we're not providing any change to our guidance and we remain heads down focused on doing the important and necessary work to certify our aircraft. With that, I'd like to hand it over to Didier, who is going to take us through the progress we've made during the quarter. Didier has spent more than 15 years helping to develop and certify dozens of aircraft systems, including projects for Part 23 general aviation aircraft, as well as Part 25 business jets, and Part 27 and Part 29 helicopters for both commercial and defense programs. I couldn't imagine anyone better to be leading our work in this area. Didier, over to you.

Thanks for the kind words, Joe Ben, and hello everybody. As Joe Ben mentioned at the top of this call, we continue to make tangible progress towards type certification. That's the certification that covers the aircraft. Over the last quarter, we've moved from close to 70% of our means of compliance accepted by the FAA to close to 80%. And we have submitted the vast majority of the remainder to the FAA for their review and approval. As a reminder, The means of compliance identifies the steps we will take to demonstrate compliance with the certification basis identified for our aircraft. And each means of compliance agreed is a step towards being ready to complete formal tour credit testing with the FAA. What comes after the means of compliance in the certification process are the area-specific certification plans. Here, we get even more specific about how we'll demonstrate that compliance. translating the means into certification plans that detail the exact testing and analysis we intend to use. This is where most of our effort has been focused, and over the last quarter, we've also made great progress here. We recently had our first area-specific certification plan accepted by the FAA, having become the first eVTOL company to submit one back in March. We've since submitted a further two plans, and have the majority of the remainder ready to submit as soon as the relevant means of compliance are accepted. But it's worth noting that different parts of the aircraft can be in different stages of the certification process simultaneously. It's also possible to begin work on the next stage before receiving FAA sign-off on the previous one. And that's exactly what we do at Joby. We always want to be ready for the next stage of the process before it happens. We remain focused on certifying our aircraft expediently and through working with the FAA along the way. That's part of what makes Joby a special team. And it is what has helped us get to the leadership position we're in today. We think ahead and work ahead, building the capabilities in-house and testing them to make sure they're ready before we need them. In February of this year, we announced that we've begun coupon-level conformity testing with the FAA. This marked our first step into the formal implementation phase, where we started to complete four credit tests. But we've also started developing test plans and procedures in several other areas, and then running them to prepare for formal testing. For example, we've recently run tests associated with our equipment environmental qualifications, our nose landing gear loads, and our electrical wiring robustness. We've also been able to make really important progress on developing and testing various production intent parts. As well as manufacturing the majority of the large composite parts for our production intent aircraft, we've also manufactured several more copies to be used for testing and for additional airplanes in parallel. Similarly, we've built several design intent powertrain and electronic components during the quarter, including our first design intent EPU, or electric propulsion unit, which has already logged the equivalent of more than 600 flight hours on a dedicated test track. Furthermore, our ability to deliver a volume of production intent parts is not only central to being able to progress in that implementation phase, but it truly sets Joby apart. We cannot test what we cannot build, and we don't believe anybody else is in this position today consistently building parts that are designed for a production aircraft. Before I end, I'd like to close with one other key success from the quarter, and that's the successful completion of our first familiarization meeting with the FAA's AED, or Aircraft Evaluation Division. This is the team that makes sure that the aircraft we're certifying is actually suitable for real-world operations. In other words, they make sure that all this effort is worth it and will result in an aircraft that's suited to our incredible mission. We had a great first set of meetings with them this week, and it looks like we're absolutely on the right track to bring together our aircraft manufacturing with our operations. And on that note, I'll hand it over to Bonnie to talk more about our progress with Part 135. Bonnie is not only the former president of JetBlue Technology Ventures, but she also has decades of operational and strategic experience in the airline industry, having served in a variety of roles from being a captain at United Airlines to head of talent at JetBlue. Bonnie, over to you.