Joby Aviation, Inc.

Greetings and welcome to the Joby Aviation Second Quarter Fiscal Year 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Teresa DeRuthio, Head of Investor Relations. Please go ahead.

Thank you. Good afternoon and evening, everyone. Thank you for joining us for Joby Aviation's second quarter 2025 financial results conference call. I'm Teresa Thurithio, Joby's head of investor relations. We will begin the discussion with remarks from Joben Bevert, founder and chief executive officer, and Rodrigo Brumana, chief financial officer. Paul Sciarra, our executive chairman, will be joining us later for Q&A. 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 Q2 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 Ben.

Thank you, Teresa. And thank you everyone for joining us today. The last quarter was one of our best yet. we're delivering at an exceptional level on all fronts, on certification, on manufacturing, and on commercialization. And we have so much to talk about that I'm going to get straight into it. The progress we've reported this quarter is unparalleled, supported by an incredible team, years of planning, and a wealth of flight testing. To put our flight testing into context, in July alone, we completed 76 separate flights with four different aircraft in three different locations around the world. These included both piloted and remotely piloted flights with vertical takeoffs, full transitions, and vertical landings. And the amount of flight testing matters because it's the core of our certification effort. It's the way you drive maturity into an aircraft program, whether for commercial or defense use. And it's the way you wring out technical issues to mitigate expensive changes later in the certification process. Our team is delivering day in and day out. And they know that if you're in the business of flying aircraft, you have to actually fly aircraft. In stage four of certification, we're now 70% complete on the Joby side and more than 50% complete on the FAA side, up 10 points from last quarter. And we're gearing up for stage five. During this stage, Joby and FAA pilots will fly our aircraft to validate all of our certification work ahead of receiving a type certification. And I'm pleased to say, as we announced this morning, the first of five aircraft for TIA flight testing is headed to final assembly. And we remain on track to start flying our TIA aircraft with Joby pilots this year and to begin TIA certification flights with FAA pilots early next year. For context, this is a milestone you don't reach at the flip of a switch. There are very few, if any, certification processes that are as involved as the steps required to reach type inspection authorization. It's multivariable, time intensive, and relies on not just your own execution, but also that of the FAA. We've been at this for more than a decade, developing, iterating, and collaborating on paper and in practice. We've taken a concept and turned it into a conforming design. with approved test plans and the ability to manufacture under a quality management system, all in alignment with the FAA. We're now putting the keystone in the arch. Alongside our certification progress, the global regulatory momentum is undeniable. Here in the U.S., the White House, DOT, and FAA are setting the pace for next generation aviation. For eVTOL, the executive order on drone dominance directs the FAA and DOT to establish programs for state and local governments to partner with companies like ours on early operations. Globally, Australia, New Zealand, Canada, the US and the UK, markets with huge long-term opportunity for Joby, came together to streamline international validation of FAA type certification for aircraft like ours. This took years of public-private collaboration that we expect to pay dividends in the years to come. I was also particularly excited that the FAA finalized the Mosaic and BB LOSS rules, which opened a world of opportunity for new personal aircraft, new propulsion systems, and new ways of flying. I've been on this mission with Joby for more than 15 years. We're witnessing a global sea change in regulatory landscape that I believe will define the next century of aviation. And in doing so, I believe we are defining the very fabric of how we will live. Each of the ingredients that I have just spoken about, the maturity of our platform, the rigorous aircraft testing, and the progress we're making on certification, all contribute to our success on commercialization. This quarter was pivotal. We completed flight testing in Dubai. We reached a definitive agreement to acquire Blades Passenger Business. We signed agreements for aircraft with long-term partners Abdul Latif Jameel and ANA. And with L3Harris, we're exploring opportunities to leverage our existing technology platform for defense applications. Let's start with Dubai. Earlier this summer, we achieved another industry first, We completed a multi-week campaign in the UAE with 21 piloted flights, including vertical takeoff, transition to wing-borne flight, and vertical landing. And we did this in challenging real-world conditions. We delivered sustained operations in temperatures nearing 110 degrees Fahrenheit. We gained invaluable insights about the performance of our aircraft as we prepare to move from flight testing to exhibition flights and on to commercial service. With the acquisition of Blade, we're accelerating our readiness for commercial eVTOL operations globally, including in Dubai. Over the last decade, Rob and the team at Blade have built a scaled VTOL business, operational expertise, and a premium customer experience. But the Blade acquisition delivers much more than operational experience. On day one post-certification, Joby will have the infrastructure, team, and routes to start electrified service in key US and international markets. This gives us a defensible first mover advantage and creates a competitive edge that will be difficult to replicate. We'll also have access today to a deep and loyal customer base with a demonstrated high willingness to pay to save time. Last year alone, Blade moved more than 50,000 passengers. The plan is simple. We take the existing Blade operations and we add eVTOL. This will allow us to expand route maps, fly higher tempo operations given the lower nose profile, and increase margins with lower operating costs than helicopters. And while we're waiting for our eVTOL to come online, we'll be able to build Joby's market-leading operational software into Blade to drive efficiency and improve customer experience. We have three paths to commercialization. In addition to the owned and operated service, we're pursuing direct sales and regional partnerships. Yesterday, we announced plans to establish a joint venture with our partner ANA. The plan is to deploy more than 100 aircraft in the region, as well as build an air taxi service ecosystem. We need pilot training, vertiports, and maintenance just as much as we need the aircraft. Through this collaboration, we see potential to build a playbook to replicate in other markets. Similarly, we're making progress on distribution, With longstanding investor Abdul Latif Jameel, we announced we're exploring the sale of up to 200 aircraft in Saudi Arabia, valued at approximately $1 billion. Abdul Latif Jameel has deep ties in the Middle East, and we look forward to growing this relationship. Finally, we announced a new collaboration with L3Harris to develop a hybrid variant of our existing aircraft to pursue low altitude defense opportunities. To be clear, defense and dual-use technology has always been a core to Joby's strategy, a point demonstrated by our long history with the DoD. We already set the pace for VTOL and defense, being the first and only company to deliver eVTOL aircraft to a government customer facility, which we've now done twice. And we're the only company to have already shown electric VTOL aircraft can be hybridized for longer range with our record-breaking 561-mile hydrogen-electric flight last summer. We're leveraging that history, adapting our existing platform with turbine electric propulsion and missionization. We're now ready to set the pace again with flight tests of this new variant expected to start this fall and operational demonstrations expected in early 2026 with government customers. With our existing production capability, we're confident we can move quickly from demonstration to deployment, a testament to the value of a dual use approach. We also see this work benefiting our commercial operations. The work we'll do to mature vehicle level autonomy and turbine electric power trains can feed back into our commercial business, allowing for commercial products that are faster and longer range. This work comes at a critical time in the retooling of U.S. and allied defense. The DoD has requested $9.4 billion in the FY26 budget to advance uncrewed and remotely operated aircraft, and we see significant opportunity for Joby and our partners. As our path to certification and commercialization becomes increasingly clear, our next challenge will be scaling production capacity to meet demand. And as I've said before, this is not an easy task, but it is one that we're well-placed to tackle. I'm incredibly proud of the progress we've already made to establish conforming production lines. And with our first TIA aircraft moving to final assembly, I'm confident we're leading the way. The expansion of our marina facility is an important step on the road to scale. It will double our production capacity to two dozen aircraft per year. And our Dayton facility is now coming online. This dual site strategy is designed to scale horizontally and eventually produce up to 500 aircraft per year. As an engineer, I care very deeply about manufacturing, and I love walking the manufacturing floors to see where we can drive process and efficiency improvements from the current line, including adding automation to reduce cost and increase efficiency and throughput. We're only at the beginning of the S-curve, so while early improvements will be significant, they won't be easy. but the base we are building from is strong. We're leading the way on production-conforming lines. We're leading the way on ramping production. And of course, we have Toyota, the world's leading automaker, at our side. Rodrigo, over to you.