Joby Aviation, Inc.

Greetings, and welcome to the Joby Aviation first quarter fiscal year 2025 financial results conference call and webcast. At this time, all participants are in listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star one on your telephone keypad, and we ask you to please ask one question and one follow-up, then return to the queue. As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Teresa Thurithio, Head of Investor Relations. Teresa, please go ahead.

Thank you. Good afternoon and evening, everyone. Thank you for joining us for Joby Aviation's first quarter 2025 financial results conference call. My name is Teresa Thurithio, and I'm Joby's Head of Investor Relations. During the call today, we will have remarks from Joe Ben-Bevert, Founder and Chief Executive Officer, and Paul Sciarra, Executive Chairman. 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 the Q1 2025 shareholder letter. which you can find on our investor relations website, along with the replay of this call. And 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 as we discuss our first quarter 2025 results. It's only been a short 10 weeks since we last spoke, but in that time, the entire team at Joby has continued to deliver with incredible momentum, posting another quarter of record progress on certification, flying through transition with a pilot on board for the first time, announcing a partnership with Virgin Atlantic to bring our service to the UK, and powering on yet another aircraft from our production line. All of these achievements speak to Joby's leadership in our sector and keep us on track to deliver on the two core goals I set out in our last call. To start flight testing in Dubai in the middle of this year and to begin TIA flights with the FAA within 12 months. During our last call, I talked about the record progress we'd seen on the fourth stage of the certification process. And today, I'm pleased to say that despite it being a shorter quarter, we actually beat last quarter's record, accelerating forward by a full 12 percentage points on the FAA side and moving the Joby side up to 62% complete. This is critically important progress because each plan we sign off with the FAA is a step towards unlocking TIA flights. A signed-off test plan allows us to move forward with building a test article and then testing it, a necessary step before beginning those flights. Also during our last call, I noted that we hit our production target of delivering parts equivalent to one aircraft per month. At the time, I said that this would give us the parts and the aircraft to complete unprecedented levels of component and subcomponent tests alongside an increasing cadence of flights. And our team really took that to heart. This last quarter was our busiest yet for flight test, with five aircraft and two full flight test crews performing flights in both Marina and at Edwards Air Force Base, often simultaneously, with as many as eight flights per day. I want to stress that certifying an aircraft, particularly a new design, requires you to build and fly aircraft, and the more the better. It's been great to see so much activity in these teams, and we believe it puts us in an industry-leading position to achieve type certification. A lot of the testing we completed at Edwards was supporting one of Joby's most important achievements to date, flying aircraft through transition with a pilot on board controlling the aircraft. The seamless transition between vertical and horizontal flight has long been considered one of the most challenging technological feats in aerospace. But as our chief test pilot buddy put it, the aircraft flew exactly as we expected with excellent handling qualities and low pilot workload. Since Buddy made the first transition to wing-borne flight, two other Joby pilots have done the same. And importantly, pilot-on-board transition flight has now become a routine part of our flight testing. And we're the first eVTOL company to be able to say that. Moving from one historic transition flight to routine pilot-on-board transitions was an almost overnight process for Joby. But it was built on years of methodical testing and planning. We had already flown hundreds and hundreds of transitions without a pilot on board, and we'd completed thousands of tests, both on the ground, in our integrated test lab, and in the air, all of which made the move to piloted transition so smooth. In order to support our move to inhabited transition flight, we completed a round of testing at Edwards to prove out the redundancy that's designed into our aircraft. From the very beginning, we've been intentional about building layers of redundancy and fault tolerance into our design. And in this campaign, we demonstrated just how valuable those design choices are in ensuring the safety and reliability of our aircraft. In separate tests, we disabled one of the two tilt mechanisms on each propeller, one of the four battery packs, and two of the six propulsion stations. And in each case, we were able to maintain safe flight and execute a vertical landing with no changes to the procedures that our pilots used to fly the aircraft. I'd encourage you to go and watch the footage of this testing that we published online earlier this week, because it's an incredible validation of the long-term planning and vision behind our aircraft and its safety systems. It's also, again, to our knowledge, a first in the industry. As Zach Reeder, the Joby test pilot who led the campaign, put it, success is super boring. And if you watch it, you'll see that those flights look just like any other. The success of this testing, along with the inhabited transition that followed, are a testament to the professionalism and dedication of our team. And they are a major unlock. First, for the flight testing we plan to complete in Dubai in the middle of this year. And second, for beginning TA flights with the FAA. And as we prepare to send that first aircraft to Dubai, the next aircraft to roll off our pilot production line will soon join our fleet, having already been powered on for the first time. With each aircraft that rolls off our pilot production line, and this is the fifth, we learn more about building and scaling our manufacturing. We learn how to do things smarter, faster, cheaper, and more efficiently. These lessons will be valuable to us as we start to fit out our new expanded facility in Marina, which is nearing completion and is set to be handed over to us next month. This building will not only double our manufacturing footprint, it will also house our certified full motion flight simulator that's set to arrive before the end of the year. From my own personal experience and from Toyota's experience as the world's largest auto manufacturer, there's no magic switch that lets you achieve mass manufacturing overnight. You have to do the hard miles, and that means building, testing, and flying aircraft over and over again. In theory, it's an appealing idea to jump straight to certifiable aircraft and straight to higher manufacturing scale, but it is never successful in practice. And so, as we grow in Marina and in Ohio, I'm incredibly grateful that we invested in the stepwise scaling of our manufacturing years ago so that we have the same head start in manufacturing as we do in certification. I'm confident that all this progress, the tangible, countable progress on certification, the demonstrated flight hours and transition flights, and rolling yet another aircraft off our production line puts Joby firmly in a leadership position in our sector. And with the US government leaning in on both the state and federal level, we are securing America's leadership role in the adoption of this important new technology. Last week, I was in Washington, D.C., and had the opportunity to meet with a number of key leaders who are working to ensure the successful implementation of advanced air mobility. We had important conversations with the Secretary of Transportation, Sean Duffy, Acting FAA Administrator, Chris Rochelleau, FAA Head of Certification, Caitlin Locke, FAA Head of Flight Standards, Robert Ruiz, a number of key members of the House and Senate, as well as leadership within the White House, including Director Michael Kratios from the Office of Science, Technology, and Policy. In every case, we heard strong support for ensuring there is a clear path to certification and commercial operations for Joby, and that this path can be leveraged as we begin service in key countries around the world. As we look to those opportunities around the world, one of the most exciting we see is in the UK. And I'd like to take a moment to highlight the announcement we made this quarter with Virgin Atlantic. We couldn't have hoped for a better partner to work with in the UK. Virgin is famed for its customer service and commitment to excellence. And of course, they're already part of the family, being closely affiliated with Delta Airlines. I've spent a great deal of time with their CEO, Shai, and together we're incredibly excited about our plans to deliver air taxi services in the UK, starting with the Virgin hubs at London Heathrow in Manchester. Like Delta, Uber, Toyota, and ANA, Virgin is another example of Joby's ability to attract world-class partners who share our vision for the future and are excited to lead the way on the development of this important new market. Paul, I'll hand it over to you to take us through the numbers in a moment. But before I do, I'm pleased to confirm that Rodrigo Bermuda will be joining us as our chief financial officer later this month. Rodrigo is not only a seasoned Silicon Valley CFO with experience working in global finance operations at HP, Amazon, and eBay, but he's also an aviation enthusiast who has an degree in engineering and a background optimizing complex manufacturing at Fairchild Semiconductor and Palm. Most recently, he served as CFO at Poshmark. Rodrigo stood out to us as a candidate because of his strong track record of driving growth, his deep experience in capital markets, and his creativity in developing thoughtful strategies for the businesses he's led. I'm confident his pragmatic and tactical approach will serve Joby well as we scale our manufacturing and prepare for commercial operations. Paul, over to you.