Joby Aviation, Inc.

commercial launch in the U.S., deployment with the DoD, and launch in Dubai, where we're working with the UAE's General Civil Aviation Authority to leverage the documentation and testing we're doing for the FAA. Having our finalized airworthiness criteria is a really fundamental step. As we said before, it does mean that both we and the FAA have additional paperwork to do as we work through refinements to our means of compliance and certification plans. We believe we're on track to close all these by next quarter and expect our progress in Stage 4 to accelerate in the back half of this year. While we complete that work, this quarter we continue to progress at pace on Stage 4. building on the learnings from our Pathfinder testing and test plan submittals at the end of last year. We submitted to the FAA equipment level test plans covering the Control Surface Actuators, Pilot Inceptors, Mission Display Computer, and Vehicle Navigation Computer, plus many structural elements of the aircraft. We're now preparing to perform for credit testing on many of these test articles. Also part of stage four, we submitted two qualification plans related to the aircraft's energy storage, covering the charge port and pump and battery control and distribution. And in a huge win for the team, we continue to move up the aircraft testing pyramid tiers with a submittal of our first system level test plan. As a reminder, we conduct testing at every level of the aircraft. from individual components to full vehicle. And we're making progress at multiple levels of the pyramid simultaneously. This test plan covers the functions of our unique low workload flight controls and vector thrust propulsion system. And it's a perfect example of why vertical integration is key to our success. With the design and development of the software and hardware for both flight controls and propulsion completed in-house, we've been able to optimize and efficiently manage all of this as one integrated system, making progress much faster than an integrator between a whole host of partners. This has proven to be true across our entire aircraft. The more pieces of the puzzle we have direct control over, the faster we can identify elements of our hardware or software that need improvement. And we can deploy solutions that are optimized for our needs. That's precisely why this quarter we completed several upgrades to our in-house testing capabilities that are critical to our certification campaign. We developed and installed new tilt, variable pitch, and control surface actuation load test stands in support of test plans covering our actuators, as well as our integrated flight and propulsion system. In support of the battery qualification plans submitted this quarter, we brought online a state-of-the-art battery test building that can safely house routine thermal runaway testing for showing FAA compliance. And in the next few weeks, we expect to submit our second system-level test plan, covering the endurance of our propulsion system, which is why we have upgraded our propulsion system test stand, or Worli, a remarkable test asset unique to Joby that you can see in action in our shareholder letter. We've enhanced Worli to operate at higher speeds and test across a wider spectrum of the flight envelope, thereby recording even more data for use with the FAA. Testing is a muscle, much like manufacturing and operations, and it's a critical part of the safe development and certification of new aviation technology. It is the only way to completely understand all safety and performance parameters of a design. And by doing the majority of our testing in-house, we're not only able to provide faster feedback to our design and manufacturing teams, but also have perfected our testing facilities and processes alongside our aircraft. I am proud of the team for delivering on these mature test assets that we know will accurately and efficiently give us the data we need to demonstrate the safety and performance of our aircraft, including for FAA credit. Of course, the ultimate test for any aircraft program is flight testing with a full-scale representative aircraft. This quarter, we successfully completed our pre-production prototype flight test campaign after logging more than 1500 flights in 33,000 miles with our two aircraft. I want to provide a little more details on what we've learned from our four years of constant flight on full-scale representative aircraft, because this comprehensive flight testing uniquely positions us for success across certification, manufacturing, and preparing for operations. First, We have developed a world-class flight test team. Our pilots, flight test engineers and maintainers are now highly experienced at safely and efficiently executing the different types of flight tests that will be needed for certification. This is critical as we move to the next phase of our program, where we will use our production prototypes to dry run all of the flight testing we will then perform for FAA credit. Second, We have validated our design, including elements such as human factors and handling characteristics, by flying at high speeds and altitude, different states of charge, and a range of weather conditions. We collected all these learnings into our models, components, and systems. The resulting improvements have already been designed into the parts we're producing now. we gathered extensive testing data that informs the stage four test plans we are writing and submitting to the FAA, which we believe sets us up to have those documents accepted in short order. Fourth, we have fed learnings into our operations and maintenance program, both for type certification requirements like manuals and to inform our airline operations that Bonnie will speak to more in a moment. 10 pilots have flown a Joby aircraft through transition, including the four US Air Force pilots who trained with us in Marina last year. We have fine-tuned our pilot training course to safely prepare commercial pilots to fly the Joby aircraft in about six weeks. We're developing tools that continuously monitor the health of the aircraft systems based on operational flight data, which will be key to efficient operations at scale. And finally, we've been able to uniquely contribute to and shape the formation of our industry by providing regulators with real, practical data on aircraft characteristics like outwash and precision landing that would inform standards being developed for the broader industry on infrastructure and operations. I want to thank and congratulate the entire team on four years of incredibly successful flight. In closing, I want to touch on the remarkable progress our team continues to make on ramping up our manufacturing capacity. We've always taken a pragmatic approach to scaling manufacturing, and that approach is already paying off. Last week, we rolled our second production prototype off the line in Marina, and we have two more aircraft close behind in final assembly. As we go through each build cycle, we're learning and improving many parts of our manufacturing processes to shorten build time, improve quality, and reduce waste. These are key ingredients for successful, economical production at scale. And we're building them into our processes now, rather than when we have already made much more significant capital investments. We are on track to achieve an annual production rate of 12 airplanes worth of components by the end of this year. To reiterate, some of these will be complete aircraft and others will be parts used for development and certification testing, which requires us to shake, bake and break many parts as we demonstrate they meet the requirements. To get to the next step, we've begun work on a significant facility expansion in Marina. The new building will more than double our manufacturing space at the airport, allowing us to target 25 aircraft per year as we continue to develop facilities in Dayton, Ohio, that will support us in our goal of producing up to 500 airplanes a year. At the same time, we're expanding our conforming production to support for credit testing. In addition to ramping production of conforming flight electronics, this quarter, we began assembly of our first FAA conforming tail, which will be used as a structural test asset in for credit testing later this year. This progress is underpinned by the maturity of our quality management system, which continues to evolve towards meeting all FAA requirements for us to receive a production certificate. From testing to certification and manufacturing, the Joby team continues to knock it out of the park. And I am so, so proud to be part of the team that's doing the hard work to bring to market the right aircraft for our mission. I'll now hand it off to Bonnie to discuss how we're preparing for what comes next.

Thank you, Didier. It's a pleasure to be here to introduce our work on operations. As Jobin said at the outset, there's a significant amount of work that needs to be completed before anyone can operate this new type of aircraft. You can achieve type certification and build a fleet of aircraft, but without items like FAA certified full motion simulators, FAA maintenance and operating certificates, FAA approved pilot training programs and safety management systems, you won't be able to run a commercial aviation service. Some of those items, like maintenance procedures and manuals, are actually a prerequisite for type certification. And to be clear, these requirements don't go away if you intend to sell the aircraft. Any operator will need every one of these systems in place in order to launch even a basic operation. In 2020, when I joined Joby full-time, we sat down and mapped out the full set of requirements to start operations, and we've been working on them ever since, because we realized that many of them, like simulators, have a long lead time, or like pilot training programs could not be bought off the shelf. Now that we have a clear line of sight to start of commercial operations, we thought it would be valuable to touch on the work that we've already completed and the milestones that lie ahead. Next month, we plan to host a teach-in session where we will cover this topic in more detail. But for now, I'd like to introduce the broad themes. Our work to prepare for early operations can be divided into three categories, FAA authorizations, infrastructure, and software, with safety as a common thread underpinning all three. When we say infrastructure, we mean the development of standards for landing sites and the landing sites themselves, the development of charging solutions, of ground handling processes and decisions about aircraft storage and shipping, as well as the location and build out of maintenance and simulator facilities. And by software, we mean scheduling tools, the pilot flight planning tools, the customer interface, the maintenance tracking, the data links to the aircraft, and so much more. Just like for Didier on the certification side of the business, for operations, the long pole in the tent is FAA approvals and certifications. And this is where we are focused in the near term. By pulling ahead our work on operations, we're able to de-risk our go-to-market strategy and ensure we have the right foundation in place to scale. In order to fly an aircraft for commercial passenger use, there's an extensive list of requirements and federal certifications that you need, including a Part 135 operating certificate that allows you to carry passengers for revenue, a Part 145 maintenance certificate that allows you to efficiently maintain and repair the aircraft as approved under its type certificate, simulators that are certified under Part 60 to be used to train pilots for commercial operation, and FAA approved pilot and maintenance training programs. These are all in-depth processes that require years of work to get across the line, and we've made excellent progress on each. In May of 2022, we were awarded our Part 135 operating certificate, enabling us to use conventional aircraft to simulate, test, and iterate on our future airline service, even before we have the Joby aircraft ready to take passengers. We received our Part 145 maintenance certificate earlier this year, another item we've been able to tick off the list in advance. We've been working for years with our partner CAE, which we announced in March of 2022, to develop Part 60 full motion simulators, and we're developing the certification plan to submit to the FAA. As Didier mentioned, we're developing our pilot training program and testing it with the U.S. Air Force. This will form the foundation of our commercial pilot training program. With both our 135 and 145 certificates, as well as the simulators in place, we'll be able to get the Joby aircraft into service more quickly. Last but certainly not least, safety is at the core of everything we do at Joby. Just last month, the FAA announced a requirement for safety management systems, or SMS, for all 135 operators. And our SMS has already been accepted by the FAA into their voluntary SMS program. We're also the first and only in our industry to pass the Stage 1 International Standard for Business Aircraft Operators, ISBAO, audit, an important external validation of the preparation we've done to operate safely. While these FAA authorizations may seem like a number soup, I hope that you'll take away is the significant amount of work that's well underway at Joby to ensure that we're ready for operations on day one. Last week's announcement regarding the expansion of our operations in Marina is also a key part of this work, as this building will host our expanded pilot training and flight simulation center, as well as aircraft maintenance facilities that are designed to support the scaling of Joby's commercial operations. We're always looking ahead and making sure that we're taking the most efficient route to starting commercial operations while putting safety at the center of everything we do. The work done by our operations team is central to this and is another area where Joby is leading in the sector. All of these preparations are well underway as we target operations in Dubai in late 2025. I look forward to unpacking these topics next month in more detail at our teaching session on operations. And now I'll hand it over to Matt to cover financials.

Thanks, Bonnie. And good afternoon, everybody. As you've heard from the team today, we continue to lead the industry across all elements of our business, certification, manufacturing, and commercialization. We also continue to lead the industry in having the strongest balance sheet. We ended the first quarter of 2024 with cash and short-term investments totaling $924 million, right in line with the guidance we shared for the year. This represents a use of cash totaling 108 million, reflecting our measured pace of growth and investments. Also, as a reminder, we had an extra pay period in Q1, which results in a higher cash outlay for the quarter. We incurred a Q1 net loss of $95 million, reflecting a loss from operations of about 146 million, offset by interest and other income of 51 million. Our net loss was lower by 21 million compared to the prior quarter, reflecting a higher favorable revaluation of our warrants and earn out shares, partly offset by a higher net loss from operations. Increased operating expenses in the first quarter reflected a continued measured pace of investment in our certification and manufacturing personnel and operations, lower sequential payments from government contract deliverables, and higher stock-based compensation expenses at the start of the fiscal year. In terms of revenue, we mentioned last quarter that we would expect it to be somewhat lumpy as our work gets underway with the DoD, and we expect revenue to grow along with our flight hours throughout the year, especially as we look ahead to the delivery of our second aircraft to Edwards Air Force Base. Adjusted EBITDA, a non-GAAP metric that we reconciled to our net income in our shareholder letter, was a loss of $110 million in the first quarter. This was about $14 million higher than in the prior quarter, reflecting the higher operating expenses mentioned earlier. Our adjusted EBITDA loss was $35 million higher than in the same period last year, reflecting the growth in our organization, expenses to support manufacturing and certification, lower DoD contract deliverables, and higher production volumes as we ramp up manufacturing on our way to an equivalent of 12 aircraft per year as we exit 2024. As mentioned at the outset, we ended the quarter with $924 million in cash, cash equivalents, and short-term investments. Our primary use of cash in the quarter was to support our operations, where we continue to invest in our certification efforts, manufacturing, and early go-to-market initiatives, which Bonnie highlighted. We spent about $7 million on property and equipment, which includes investments in test equipment assets that Didier mentioned earlier, and the acquisition of our facility in Ohio. We continue to maintain a disciplined approach to our spending and to the growth of our company as we supplement our certification work with measured go-to-market initiatives in advance of commercialization next year. As always, you can expect us to continue to align our investments with the growth of the business. Accordingly, we remain on track with our full-year cash spending outlook of $440 to $470 million. This concludes our prepared remarks and we look forward to having you join us for the teach-in on operational requirements with Bonnie in June. Operator, would you please instruct participants on how to ask questions?