Joby Aviation, Inc.

Hi, everyone, and welcome to Joby Aviation's fourth quarter and fiscal year 2022 financial results conference call. I'm Teresa Thurathiel, Joby's head of investor relations. On the call today, we have Joe Ben Bevert, founder and chief executive officer, Paul Sciarra, executive chairman, Didier Papadopoulos, head of aircraft OEM, and Matt Field, chief financial officer. After management's prepared remarks, we will open up the call for questions. Please note that our discussion today will include statements regarding future events and financial performance, as well as 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 our 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. Also, during the call, we'll refer both to GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in our Q4 FY22 shareholder letter, which you can find on our Investor Relations website, along with a replay of this call. With all of that said, I'll now turn the call over to Joe Bennett.

Thank you, Teresa. And thank you everyone for joining us today. 2023 is going to be a pivotal year, not just for Joby, but for our industry as a whole. It is time to transition from planning to delivery. And that's exactly what we're doing. We're delivering on the things that really matter on certification, on manufacturing, on preparing for commercial operations. Already in the first few weeks of this year, we've demonstrated that the Joby approach works. Let me give you some examples. Last year, we worked hard to become the first eVTOL company to complete stage one of the type certification process by having our G1 certification basis published in the federal register. And already in 2023, we've become the first eVTOL company to complete stage two of the process. Last year, we worked hard to complete our pilot manufacturing facility in Marina, California. And already in 2023, we've become the first eVTOL company to start final assembly of a company-conforming aircraft. Last year, we worked hard to build in-house testing capacity, including powering up our integrated test lab. And already in 2023, we're running developmental tests in that facility. That same pattern of delivery, of planning and then executing, is present across all of our work streams and it goes to show that our approach is working. It also means that 2023 is going to be a very exciting year. We expect to see the first aircraft roll off our pilot manufacturing line and fly within the first half of the year. We plan to fly with a pilot on board before the end of the year. We expect to have all 13 of our area specific certification plans submitted to the FAA in the first half of the year. And we plan to start conforming tests across the majority of our system areas before the end of the year. We're on track to announce the location of our phase one manufacturing facility in the first half of the year. And we're laying the groundwork to ensure we'll be ready to start on base operations with the Department of Defense in 2024. As we move into this period of execution, our team is delivering like never before, knocking down industry first, one by one. Their commitment is a sight to behold, and a few weeks back, we invited our team members to bring their families along with them to Marina to show them what we've been working on. We had nearly 2,000 people turn up, which I think is not only a sign of the pride and dedication of our team, but it's also the largest crowd that has ever seen an eVTOL aircraft fly in real life. I witnessed that same level of commitment and energy when I visited Toyota in Japan a couple of weeks ago and met face-to-face with some of their incredible engineers supporting our manufacturing. And as we move into the execution phase in manufacturing, we're also making the same transition in our certification and testing work. Didier will talk more about this in a minute. but having a clear path to certification is essential to moving into the execution phase of the certification process, where we focus on testing. At the end of January, we were honored to host Billy Nolan, the acting administrator of the FAA, along with members of his team, including Larry Olu, executive director of the FAA's aircraft certification service, and Paul Fontaine, acting assistant administrator for NextGen. We had a range of positive in-depth discussions about our certification journey and our shift into the testing phase. They also toured our manufacturing facilities, stopping to look at the first aircraft to be produced on our pilot manufacturing line and seeing the parts for multiple subsequent aircraft being made. And we were able to watch one of our regular test flights, watching people see And here, our aircraft fly for the first time is still one of the most amazing things that happens at our Marina facility. And it was a proud moment for our team. Administrator Nolan and his team are really leaning in on this technology and the opportunity it presents, and they remain committed to delivering the SBAR in 2024. We have the clear path we need to move forward. and we're very grateful for the hard work and dedication of the teams at the FAA. The U.S. is the birthplace of flight. It's home to the largest aerospace companies in the world, and it's home to the FAA, who have set the gold standard on certification throughout the modern era of flight. With our world-class team, our committed partners, and a clear path to certification, we look forward to continuing to set the bar for the rest of the world.

Didier, over to you. Thank you, Joven. I'd like to add my appreciation for the FAA team too. For every document we submit and with every percentage point of progress we make, dedicated and talented professionals at the FAA are putting in the hard work of reviewing, refining, and approving those documents. So all of Jovi's recent successes, like the publication of our G1 SERP basis and the completion of our reins of compliance, are also really successes for the FAA team and for the eVTOL industry as a whole. We're grateful for the high safety bar that the FAA sets and the constructive way in which they're engaging with our new industry. As we do every quarter, today we publish the chart in our shareholder letter that outlines our progress towards achieving type certification. With the publication of our G1 cert basis last year, we formally completed the first of five stages. And as Joban mentioned earlier, we recently announced that we now consider the second stage to be complete as well. In this stage, we identified the means of compliance of what we will do to demonstrate compliance with the requirements we set in the first stage of the process. You will see in the chart that we are at 97% completion on the JOBE side and 94% completion on the FAA side in this category. It is not uncommon for a small portion of the means of compliance to remain open for a bit longer in order to allow for further collaboration on minor design changes and improvements that can happen down the road. We don't expect those numbers to move substantially at this point, and so our focus has now largely transitioned onto the latter three stages. Stage three is really about how we are going to show compliance to the FAA. In this stage, we took a big step forward. We doubled the number of area-specific certification plans submitted from four in the last quarter to eight today. And we now have five of those cert plans accepted by the FAA. We also successfully completed the second of four system review stages with the FAA experts in attendance. This is an important step as it demonstrates to the FAA that our development process is on track to satisfy their safety objectives. These achievements contributed to our overall progress in stage three, moving from 37% accepted to 53% accepted. As we make good progress through stage three, our focus increasingly shifts to stage four, testing and analysis. Each acceptance of a certification plan unlocks the ability to engage with testing and analysis for the specific search area. In this stage, we develop and execute on detailed test plans across every aspect of our aircraft design and systems. Testing is already well underway, and we continue to develop and submit additional test plans to the FAA. During the quarter, we had further plans accepted, including some covering adhesive bonding for our structural system test, building on prior work on composite material tests, and now enabling us to begin additional for-credit testing in this area. As we look ahead to beginning formal FAA testing in more system areas, we continue to expand our in-house testing. During the quarter, we successfully ran structural wing tests, battery vibration tests, propeller bird strike tests, actuation system testing, and much more. To support our testing work, we've also designed and built a significant amount of in-house testing capabilities. In particular, I want to highlight the integrated test lab at our production facility in Marina. In this lab, we replicate all of the hardware and software systems that the real aircraft uses, but it's designed to never leave the ground. That means we can perform development and FAA for credit testing, as well as any other testing we want to perform at minimum risk, faster pace, and without requiring the cost associated with flying an aircraft. We recently began conducting tests in this facility and we're excited to expand our integrated functional test campaign progressively towards flight and FAA certification. There are further details and images of the facility in our letter to shareholders published on our website today. While we're able to complete the vast majority of testing in-house, we couldn't turn down the invitation to test our propeller system in the world's largest wind tunnel facility. Based just down the road at the NASA Ames Research Center, the National Full-Scale Aerodynamic Complex, or NFAC, is widely considered to be the gold standard for aircraft aerodynamics and performance analysis. It played an instrumental role in the development of a range of iconic vehicles, including the Space Shuttle, the V-22 Osprey, the F-35 Joint Strike Fighter, and a number of next-generation helicopters. Over the next few months, we'll have a rare opportunity to gather a range of high-fidelity data to support our certification program. It's a genuine privilege to extend our partnership with the US Air Force and NASA, again, as we deliver the next generation of aircraft that will change the world. We're very grateful for their continued support. Moving on to manufacturing, the biggest news for the quarter was the progress we made with the first aircraft to be manufactured on our pilot production line. With all the main structures complete and at least one of every key part now manufactured, we're beginning final assembly. This is a real moment of celebration for us, and not just because we get to see the aircraft come together. It's the way in which we built this aircraft that separates it from any aircraft we've built previously in three key dimensions. We developed a quality management system that complies with FAA Part 21-135 and Part 45 regulations and forms the foundation of the quality system that will be required to achieve our production certificate. We locked and released our design and manufacturing drawings, and we build this aircraft on our production line according to those designs. These three pillars mean that, for the first time, we're seeing a company-conforming eVTOL aircraft in final assembly, and we're already assembling major structures for the next aircraft and parts for multiple aircraft after that. We expect to build multiple company-conforming aircraft before we're ready to build our first FAA-conforming aircraft. For each one, we'll apply the right level of development and inspection process defined under our quality management system to match the purpose of the aircraft, allowing us to iterate quickly and incorporate learnings. These are major achievements for the Joby team. Building this aircraft lays the groundwork for us achieving flight with a pilot on board by the end of the year, and it allows us to exercise our current quality management system ahead of type certification and subsequent production certification. I couldn't be more excited for the progress that lies ahead. I'll now hand it over to Matt to talk about our financial results.