Joby Aviation, Inc.

Good afternoon, and thank you for holding. My name is Alex, and I will be your conference operator today. Welcome to Joby Aviation's second quarter 2022 conference call. At this time, all participants 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 statements included in 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 directly comparable GAAP measure is included in today's shareholder letter, which is posted in the investor relations section of the company's website. On the call from management today are Joe Ben Bevert, founder and chief executive officer, Paul Schiera, executive chairman, Didier Papadopoulos, Head of Aircraft Development and Manufacturing, and Matt Fields, Chief Financial Officer. After their prepared remarks, we will open the call up for questions. I will now hand the call over to Mr. Bevert.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us for today's call. Exactly one year ago today, we became a public company, and I am tremendously grateful for the trust our investors have put in us, and I'm incredibly proud of our team and the progress we have made since then. During the second quarter of this year, we made important progress in all three of our key focus areas. That's certification, scaling for early manufacturing, and preparing for commercial operations. We continue to spend wisely, and we remain well capitalized and well positioned to achieve our goals. We started the quarter off with a real win, we were granted our Part 135 air carrier certification by DFA several months ahead of schedule. It's one of three regulatory approvals we need to launch our commercial operations alongside a type certificate and a production certificate. On the type certification side, DFA recently advised eVTOL companies that they would be following a Part 2117B powered lift certification framework rather than the planned Part 23 small aircraft framework. The FAA was very clear when they announced this change that they did not expect this to mean any delay in certification and that we would be granted credit for the work we have undertaken to date. This was important to hear given we first signed a Stage 4 G1 certification basis back in May of 2020 and have been making progress against it ever since. We were the first eVTOL company to sign this document, and I'm pleased to announce today that we became the first company to sign a revised version of it under the new certification framework last month. Not only does this mean that the FAA's sentiment around timing has borne out, it also means we've been able to maintain our momentum on type certification during the quarter. I also think it's worth being clear that we do see some benefit from the change. With the revised certification path, we have reaffirmed our aircraft is the right design for the market and for the regulation. Of course, there is still work to be done to define how the rules for operating our aircraft will work under the revised approach. But the FAA has also committed to making sure these will be ready for us, drawing on both existing helicopter and airplane rules. The rulemaking process for these special federal aviation regulations, or SFARs, has been fast-tracked, and the FAA has stated publicly that it aims to publish a notice for public rulemaking before the end of the year. In today's shareholder letter, we lay out a clear and simple guide to the TITE certification process, and we encourage you to review it. We wanted to provide a way for you to track our progress quarter to quarter, and we hope that this guide can become a yardstick for the industry. While we're on the topic of certification, I should touch briefly on our recent acquisition of Avionics. Acquiring this business allows us to rapidly scale up our software testing and verification resources with a team of around 80 people that have experience on aerospace certification programs of all types, both in the US and Europe. We're excited to be combining their expertise with that of the Jovi team and look forward to talking more about software certification in due course. Before I hand it over to Didier, I'd like to touch on two other important updates from the quarter. First, our relationship with the U.S. Air Force and the Agility Prime program in particular, which continues to go from strength to strength. We see this as a very important two-way relationship that delivers a great deal of value for both sides. whether that's providing the armed forces with a front row seat to the development of this new technology or the access to facilities and funding that we benefit from. Going into the second quarter, we had signed contracts with the Department of Defense with a potential future value of around $30 million. But as we announced earlier this week, we were able to expand this contract during the quarter, increasing the potential future value to more than $75 million. and broadening our engagement on flight test operations to include the U.S. Marine Corps. While the funding opportunity is very welcome, this work also provides us with meaningful opportunities to build up our operational capabilities and deploy our aircraft into service prior to commercial certification, which we think is important given there are elements of certification that are outside of our control. Finally, I'd like to touch on a couple of recent events. First, the Farnborough Air Show where we announced that we have applied for concurrent validation of our US-type certification with the UK's Civil Aviation Authority. We believe we're the first eVTOL company to apply for such a validation, and we're excited about the opportunity it opens up to start operations in the UK shortly after the US. And second, the White House Summit on Advanced Air Mobility that I was fortunate enough to speak at last week. At both events, the topic on everybody's lips was sustainability, whether that's hydrogen or electric, which I think has a significant role to play in the future of aviation, or today's eVTOL technology. And rightly so. We need to be taking radical action today if we're going to achieve the environmental footprint reductions we need to see. For our part, we've been working with the U.S. Department of Energy's National Renewable Energy Laboratory to complete what we believe is the first lifecycle assessment of an eVTOL aircraft's environmental footprint, including manufacturing, operations, and ultimately environmentally conscious disposal or redeployment. We will continue to refine the analysis as we scale our manufacturing, but the initial results are very positive. We expect our aircraft will have a lower environmental footprint than the vast majority of other existing modes of transport. and we expect to have a comparable or smaller climate footprint than electric vehicles on the ground, assuming both are charged with renewable energy, which is a sourcing commitment we've made for our aircraft operations wherever possible. We achieved this low footprint by putting a considerable amount of thought and effort into designing for sustainability from the very beginning, whether that's the efficiency of our aircraft in flight or the manufacturing processes we employ. And it's important to note the role the battery plays in all of this. Given the environmental footprint, the battery cell manufacturing, it's just not plausible to imagine an aircraft for which the battery must be swapped out every 500 or 1,000 flights. That's not just environmentally unsustainable. It's actually potentially less sustainable than an aircraft powered by fossil fuels. Instead, we purposefully selected a cell and a design which we knew would achieve a considerably longer life aboard our aircraft, and we've already demonstrated on the bench that it can power more than 10,000 representative flight cycles, which is how we get a favorable life cycle climate impact, and we won't stop striving to do even better. Even after those 10,000 cycles, the cells can still deliver important utility by being repurposed into energy storage systems, and deployed across Joby's Skyport network, balancing the demand placed on communities' electricity infrastructure and reducing operating costs. After our cells finished their second life on our Skyports, we partnered with Redwood Materials to recognize the value of our end-of-life batteries and reincorporate the critical metals contained within them back into the battery supply chain. We've built similar principles into our airframe manufacturing processes using automation and additive techniques where possible to reduce material waste, and we're working with third parties to recycle excess titanium, aluminum, and carbon fiber. By taking steps like this early enough in our journey towards scale manufacturing, we will have significantly reduced our overall footprint, ensuring that the next generation is able to benefit from the positives of air travel in a sustainable, climate-neutral way. With that, I'd like to hand it over to Didier, who is going to walk us through our approach to certification, as well as our recent progress on manufacturing. Didier?

Thanks, Jobin, and hello, everybody. As Jobin mentioned at the top of this call, we've continued to make important progress towards the type certification of our aircraft. We've signed a revised Stage 4 G1 certification basis with the FAA. We have nearly 75% of our means of compliance accepted under the new framework. And the FAA has now accepted three of our ASCPs for area-specific cert plans. But I do appreciate that this sort of data can be a challenge to understand and quantify without adequate context. So, I'm going to put the specifics of our progress to one side for a minute and instead spend a bit of time today going through how the tax certification process works and how you can track our progress against it. At our certification day briefing last year, we explained how we see the process in five key stages, and we presented a chart measuring our progress in each one. Certification is ultimately an extremely rigorous, technical, and procedure-heavy exercise. We submit hundreds of documents to the FAA for approval, detailing all of the design work, tests, analysis, and manuals that our team has diligently completed across every component of the aircraft. I've had the privilege to participate in many aerospace certification programs, and I have found that an effective way to track certification progress in a granular way is to look at the submissions and acceptance of these documents. It's one way we are tracking progress internally, and it's the methodology behind the progress charts included in our shareholder letter published today, which we have updated to reflect our current program status. I'd now like to walk you through the five stages of the certification process as we see them. Stage one is about identifying which of the rules from the Code of Federal Regulations apply to our aircraft, and it culminates in a certification basis, which is agreed to by both the aircraft manufacturer and the FAA. We became the first eVTOL company to complete the stage back in May 2020 when we agreed our first G1 certification basis with the FAA. We have subsequently signed a revised version of this document a few weeks ago, and so for all intents and purposes, this stage is complete. During Stage 2, we move from which regulations apply to what we are doing to demonstrate compliance with these regulations. We have close to three-quarters of these means of compliance already accepted by the FAA under the new framework. That means we've reviewed, or revised nearly all of the work we've done to date in record time and had it accepted by the FAA. I'm really grateful to the team and the FAA for working through this so quickly. Almost all of the remaining 25% has been submitted to the FAA for review and approval. Phase three is where we get even more specific about how we demonstrate that compliance, translating the means of compliance into certification plans that detail the exact testing and analysis we intend to perform. This is where most of our recent effort has been focused. And over the last quarter, we've also made great progress here, with two further area-specific certification plans, or ASVPs, accepted by the FAA, bringing the total accepted to three out of about a dozen total ASVPs. We also have the majority of the rest of them ready to go just as soon as the associated means of compliance are fully accepted. Taken together, stages one, two, and three form what we call the definition phase of type certification. As we complete these stages, we enter into a more detailed agreement with the FAA on exactly how we will demonstrate regulatory compliance and gain more confidence in our regulatory path. Before I get to the implementation phase, where we start to complete full credit testing, it's worth noting that an aircraft certification program is often in multiple stages of the process simultaneously. It's possible to make progress at different speeds in different areas of the aircraft. In other words, it's 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 before it happens to minimize the time it takes for the overall process. We don't wait for our means of compliance to be accepted before we start putting together our certification plans. We have them ready to go the day the FAA accepts our means of compliance. And we don't wait for the certification plans to be accepted before we start our in-house testing. We've been testing for years, preparing for the moment that we're ready to start formal FAA for credit testing. That's part of what makes Joby a special team. We think ahead and we work ahead, building the capabilities in-house and testing them to make sure they're ready before we need them. And it means that we're more than prepared for what comes next, namely stage four, the first step of the implementation phase. And this is my favorite stage. It's the testing and analysis stage during which we shake, bake, and break our components. Before we finish this first stage, we will have completed thousands of tests. Each and every component of our aircraft will be tested. The sub-assemblies will be tested. The systems will be tested. And, of course, the aircraft as a whole will be put through its phase for credit. In February of this year, we announced that we'd begun coupon-level conformity testing with the FAA. which is a formal part of stage four. And we've also started developing additional test plans and procedures and running them to prepare for the formal testing. For example, we've recently run tests associated with our equipment environmental qualifications and our electrical wiring robustness. We've also been able to make really important progress on preparing to perform four credit tests on production in ten parts. including the installation of test stands for our airframe, propeller blades, tilt actuators, and processor modules, many of which were designed and built in-house. With several development tests completed, we are on track to submit our first formal environmental qualification test plan to the FAA in the coming weeks. We've built the tail section of our first production intent aircraft, which you can see on the front cover of our letter to shareholders. and assembly of the wing and fuselage are well underway. We have also manufactured several more copies of many larger composite parts to be used for testing and for additional airplanes in Canada. Similarly, we've built and begun internal acceptance testing on the majority of the powertrain and electronics assembly unit for our first production aircraft. These assemblies, including design intent electric propulsion units, battery modules, and mission display computers were built on our production lines in San Carlos, where our processes are capable of scaling to support production, not just now, but also for a future when we are building hundreds of planes a year. Our ability to deliver a volume of production in 10 parts is not only central to making progress in stage four and supporting our upcoming DOD commitments. We believe it sets Joby apart. You can't test what you can't build, and we don't believe anybody else is in this position today consistently building parts that are designed for production aircraft, confirming the manufacturability of our designs, and defining test procedures to begin internal validation and for credit testing. To finish the story, the fifth and final stage of the process is verification during which the FAA confirms the results of our testing. And when this stage is complete, the FAA issues a type certificate. For each of the five stages, we have provided two measurement criteria in today's shareholder letter. The first indicates what percentage of the work has been completed or submitted by Joby, and the second indicates what percentage has been subsequently accepted or approved by the FAA. All of these numbers reflect the revised certification framework. We'll publish these same measurements each quarter so you can effectively track our progress. And we'll also provide continued insight into what goes into each of those numbers. I appreciate that this was a lot to take in. And so I encourage you to refer back to the shareholder letter and we'll happily answer any questions you have later on this call. I'll now hand it over to Matt to discuss our financial results for the second quarter.