Q1 2022 Joby Aviation Inc Earnings Call
Good afternoon, and thank you for holding my name is Sherry and I will be your conference operator today welcome to Adobe Aviation first quarter 2022 conference call. At this time all parties are in a listen only mode. As a reminder, today's call's 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 then Pat. These forward looking statements are based on management's current expectations.
They involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied framework 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 statement included.
On 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 be well 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 will be posted on the company's website.
I R Dot Jacoby aviation I'm, sorry, Joe be aviation dotcom.
On the call from management today are Jobin, Beaver founder and Chief Executive Officer, Paul Sierra Executive Chairman.
D D E Papadopoulos head of aircrafts development and manufacturing Bonny Simi head of operations and people and that field Chief Financial officer. After their prepared remarks, we will open up the call to analysts for questions I will now turn the call over to Mr. Beaver.
Thank you operator, good afternoon, everyone and thank you for joining us for today's call.
While it's only been a short time since we last spoke we've made a substantial amount of progress and I'm really excited about the pace at which we're moving.
We continue to execute against our plan and we remain on track to meet our operational goals and spending guidance for the year.
You might have caused the recent 60 minutes segment that focused on EV toll technology and <unk> in particular.
Well it was great to introduce our aircraft to Anderson Cooper and to share our story with millions of viewers at home.
A comment from the aggregate administrator of the FAA that resonated most with US He said and I quote.
We want to be very careful we want to be very measured but youre absolutely right. This is real and this is happening.
And Thats exactly the mindset that continues to guide us here at Jody.
Plenty to do we need to do it in a professional mature and thorough way.
And the opportunity is substantial.
Before I hand, it over to the team.
I'd like to touch on three particular highlights from the quarter.
First our aircrafts.
As well as continuing our test program with our pre production aircraft, both EMEA <unk> and on the ground. We've made excellent progress with the build of our first production intend to aircraft, which is scheduled to be the first to roll off our pilot manufacturing line in Marina, California.
The majority of the large composite parts for this aircraft were completed during the first quarter and we began work on the tail end wing structural assemblies.
Both of these aircrafts will play a critical role in our certification campaign and we're really pleased with the progress we're making there.
Second I was able to travel to the UK and Japan during the quarter. There is no doubt that both countries have really leaned into deploying this technology in their markets. The conversations we're having with regulators in these countries about routes to certification and initial operations are very positive and leaves me incredibly excited about their potential.
In the U K I had the opportunity to visit the widow laboratories in Cambridge as part of the World Economic Forum event with Prince Charles and the UK Secretary of state for business quasi Gauteng.
Prince Charles is showing real leadership on this topic in the U K government's commitment to aggressively funding climate neutral aviation technology development, the Aerospace technology Institute underlying their intention to be global leaders in this field.
In Japan, I had the opportunity to see the incredible work Toyota is doing to support our manufacturing along with the resources. They have deployed here in California. They are an invaluable partner as we look ahead to scaling our production.
We also had very productive conversations with JCB Japan's equivalent to the FX.
While I'm on the topic of our international partners.
Should also mention that we were able to add T map to our partnership with SK Telecom in South Korea.
T map is the country's largest mobility platform and the unprecedented amounts of transportation and mapping data gathered over the past 20 years will play a key role in informing the design of a compelling service in Korea.
Finally, we're thrilled to be able to release the results of the acoustic testing that we completed with NASA last year Matt.
<unk> obtained by NAFTA across six days of flight testing show that the real life performance of our preproduction aircrafts match, both our predictions and our targeted goals.
You can read more about the acoustics of our aircraft in our letter to shareholders, but during overhead flight aircraft registered equivalent of 45% a weighted decibels from a distance of 500 meters, which we're confident mean it will be barely perceptible when flying over cities.
And across multiple takeoffs and landings, which were representative of our planned operation. It registered below 65, DBA at a distance of 100 meters from the flight path, meaning it's quiet as a conversation during the allowed us phases of flight.
And while it's easy to talk about decibels. This doesn't capture the quality of the sound. We purposefully designed our aircraft to avoid the penetrating low frequency, what we associate with helicopters and instead mimic broadband sounds we find in nature like the wind rushing through trees.
It's hard to overstate how important this achievement is to Joey's vision aviation noise is a key concern familiars of residents around the world, but we've demonstrated how <unk> is uniquely positioned to deliver flights exactly where people want without having a negative impact on our environment.
And the numbers I spoke about our theoretical numbers. They arent predictions that may or may not pan out.
These are actual result from the full scale vehicle in the real world validated by NASA.
And I'd like to say a huge thank you to the team at NASA for working with us to measure our aircraft and of course to the team at <unk> for working so hard to achieve this goal.
It is yet another example of how our incredible team delivers on the goals, we set ourselves day in and day out.
In a moment I'm going to hand, it over to <unk> to talk about the progress we've made on certification during the quarter, but first I'd like to address the commentary we've seen this week regarding the certification basis for VTOL aircrafts.
We're proud of the fact that <unk> has a 10 year history of working with the FAA.
Under leadership from both sides of the aisle and under the guidance of a number of different F administrators.
We share their vision for reaching the next level of safety inefficiencies and we support them in their goal of demonstrating global leadership in how new customers and technologies can be safely integrated into the aviation system.
We are in active conversations with them about the most expedient route to certifying aircraft.
We would note two important things they've said this week.
First that all of the development work done by current applicants remains valid and second that they don't expect any change of approach to add delays the type certification or operational approval.
On that basis, we're not providing any change to our guidance and we remain heads down focused on doing the important and necessary work to certify our aircraft.
With that I'd like to hand, it over to <unk>, who is going to take us through the progress we've made during the quarter.
<unk> has spent more than 15 years, helping to develop and certified dozens of aircraft systems, including projects for part 23 General aviation aircraft as well as part 25 business Jets and part 27% 29 helicopters for both commercial and defense programs.
Wouldn't imagine anyone better to be leading our work in this area <unk> over to you.
Thanks for the kind words, Joe Ben and Hello, everybody.
As Joe mentioned at the top of this call we continued to make tangible progress towards type certification.
The certification that covers the aircraft.
Over the last quarter, we've moved from close to 70% of our means of compliance accepted by the FAA to close to 80%.
And we have submitted the vast majority of the remainder to the FAA for their review and approval.
As a reminder, the means of compliance identifies the steps we will take to demonstrate compliance with the certification basis identified for that aircraft.
And each means of compliance agreed is a step towards being ready to compete for more toward credit testing with the FAA.
What comes after the means of compliance in the certification process part of the area specific certification plan.
Here, we get even more specific about how we'll demonstrate that compliance translating the means into certification plans that detail the exact testing and analysis, we intend to use.
This is where most of our effort has been focused.
And over the last quarter. We've also made great progress here.
We recently had our first address specific certification plan accepted by the FAA I.
Having become the first EBITA company to submit one back in March.
We've since admitted a further two plants and have the majority of the remainder ready to submit as soon as the relevant means of compliance are accepted.
But it's worth noting that different parts of the aircraft can be in different stages of the certification process simultaneously.
It's also possible to begin work on the next stage before receiving FAA sign up on the previous one.
And that's exactly what we do at Dolby.
We always want to be ready for the next stage of the process before it happens.
Main focus on certifying our aircrafts expediently and through working with the FAA along the way.
That's part of what makes <unk> special team.
And it is what has helped us get to the leadership position we're in today.
We think ahead and work ahead and building the capabilities in house and testing them to make sure they're ready before we need them.
In February of this year, we announced that we'd begun coupon level conformity testing with the FAA.
This marked our first step into the formal implementation phase, where we started to compete for credit stats.
But we've also started developing test plans and procedures in several other areas.
And then running them to prepare for formal testing for.
For example, we've.
We've recently run test associated with our equipment environmental qualifications.
Those landing gear loads.
And our electrical wiring robustness.
We've also been able to make really important progress on developing and testing various production intent parts.
As well as manufacturing the majority of the large composite parts of our production intent aircraft. We've also manufactured several more copies to be used for testing and for additional airplanes in parallel.
Similarly, we've built several design intent powertrain and electronics components during the quarter.
Including our first design intent GPU or electric propulsion unit, which has already logged the equivalent of more than 600 flight hours on a dedicated test track.
Furthermore.
Our ability to deliver a volume of production intent part is not only central to being able to progress in that implementation phase.
But it is truly sets <unk> apart.
We cannot test, where we cannot build it and we don't believe anybody else's in this position today consistently building parts that are designed for production aircraft.
Before I end.
I'd like to close with one other key success from the quarter and Thats. The successful completion of our first Familiarization meeting with the FAA.
D Oar aircrafts evaluation division.
This is the team that makes sure that the aircraft. We're certifying is actually suitable for real world operations.
In other words, they make sure that all of this effort is worth it and will result in an aircraft that's suited to our incredible mission.
We had a great first set of meetings with them. This week and it looks like we're absolutely on the right track to bring together our aircraft manufacturing with our operations.
And on that note I'll hand, it over to Bonnie to talk more about our progress with part 135.
Bonnie is not only the former president of Jetblue technology ventures, but she also has decades of operational and strategic experience in the airline industry.
Having served in a variety of roles from being a captain at United Airlines to head of talent at Jetblue Bonnie over to you.
Thanks, <unk> and Hello, everyone just like the work that's going on with our type certification for the aircraft. We are beginning to reach the execution phase of the process with our part 135 operation certification for our on demand service as a reminder, we require a part 135 air carrier certificate to operate.
Our aircraft as an air taxi service alongside the type certificate and the production certificate. It's one of the three regulatory approvals, we need to launch sustained commercial operations.
We kicked off the part 135 process in June of last year and completed the second stage of the process in August having written more than 850 pages of operational procedures across more than eight manuals and as of today all of those minerals have been reviewed and accepted or approved by the FAA.
In March of this year, we confirm that we had entered the fourth of five stages of the process and I'm pleased to say that we expect to complete this phase during the second quarter, followed shortly thereafter by the fifth and final stage, culminating in our formal approval of our 135 certificate.
As is our philosophy at <unk>, we're always looking for ways to de risk what we're doing.
That's why we've gone through the process of the part 135 now rather than waiting until we have our production aircraft threat.
Doing so will allow us to prepare and test our airline operations ahead of our commercial launch and we'll be doing that using conventional fixed wing aircraft.
It was therefore, great to see our chief pilot Gareth Smith become <unk> first fully qualified part 135 pilot during the quarter.
He then led the training of our initial cadre of four gilby pilots, including myself, who are all now qualified to fly our serious SCR 22 aircrafts immediately once we receive our 135 certificate.
Over the coming months, we will use this capability to exercise the operations and customer technology platforms that will underpin our multimodal ride sharing service, while also testing and enhancing our processes and procedures for safe and customer friendly operations and we look forward to sharing the outcome.
These operations with you in due course.
I'll now hand, it over to Matt to discuss our financials.
Thanks, Bobby.
Good afternoon, and thanks for joining.
As of the end of the third quarter, we had $1 2 billion in cash and short term marketable securities providing a solid foundation for our operations.
In the first quarter of 2022, we incurred a net loss of $62 3 million, reflecting a loss from operations of $94 3 million in other income of $32 million.
The loss in operations included stock based compensation expenses of $19 4 million, which included both ongoing accounting for employee equity as well as new performance based stock units introduced in 2022 to align employee incentives with delivering key corporate objectives for this year.
Lastly, and similar to the fourth quarter of last year. The favorable results in other income reflected the gain on revaluation of our derivative liabilities or $16 8 million and income from our equity method investments of $14 5 million.
Adjusted EBITDA, which as a reminder is a non-GAAP financial measure reconciled to net income in our shareholder letter was negative $69 7 million.
This was $32 million higher than the first quarter of 2021, and $4 5 million above the fourth quarter, primarily reflecting the continued growth in personnel to support our operations to over 1100 employees and R&D costs associated with building prototype parts, where we continue to make progress as highlighted by <unk>.
Cash used in operating activities and purchases of property and equipment totaled $72 3 million.
Our statement of cash flow, which only focuses on the change in cash cash equivalents and restricted cash, reflecting a total cash outflow of $537 million as we invest in a significant portion of our cash reserves and short term investments and marketable securities during the first quarter.
This concludes our prepared remarks, and we will be happy to take any questions. You may have regarding our operations in the first quarter of 2022.
Operator would you please instruct participants on how to ask questions.
Yes. Thank you if he would like to ask a question. Please press star one on your telephone keypad.
Confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue.
And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Our first question is from Christine.
<unk> with Morgan Stanley . Please proceed.
Hey, good afternoon, everyone.
Okay.
In the past week, there were reports of an unexpected development from the FAA that they are modifying their approach on EV tools, because regulation designed for traditional airplanes and helicopters did not anticipate the need to train pilots pilots to operate power left which you know is that when you have.
Coffee in helicopter mode transitioning to an airplane flying and transitioning back to helicopter for lending, but it also sounded like the FAA suggested that this change is unlikely to impact timelines with close to 80% of your means of compliance now accepted by the FAA can you comment on how this regulatory shift affect you going forward.
What would you need to change and how could this potentially affect your timeline.
Thanks, a lot for the question Christine This is Paul.
Yes.
I <unk>.
Think that fundamentally.
Uh huh.
The approach that the FAA is taken here is really mostly one of an administrative administrative reclassification on the type certification side of things. So as J D said at the outset, we don't believe that that's going to have any impact on our certification timeline and there is certainly no adjustments that we're making to our guidance as a result, and he highlighted a few I think it would be important points that they have.
Themselves made on this the first is that all of the development work done by current applicants remains valid. So all of the work that we've done most of these and other things is going to continue to be important for the program. Even despite this change and I think <unk> highlighted already.
Any changes to the regulatory approach should not delay their projects. That's what the FAA said, so we continue to view this as a positive sign that the FAA sort of leaning into this and to that point. The recent approval by the FAA, a our first FCP, which Judy I mentioned at the outset we.
We see that actually is a sign that the pace of progress hasnt slowed down and that the FAA is continuing to provide the resources to move our type certification process through the program.
So fundamentally we think that this is as I said largely in administrative shift that's unlikely to impact our timing to the certification program.
Thanks, Paul Thats really helpful. I appreciate the color and maybe as a follow on DDA with the 20% that you have been in discussion with all of the FAA can you give us some sort of detail in terms of what's left to do and then also in terms of the powered lift.
A portion.
Is that part of the 80% you already agreed upon with the FAA or is that part of the 20% that we're still waiting on.
Yeah. Thank you for the question this is D J.
So back to the 20% here for a minute.
Notice in the earlier comments the majority of those 20% have already been submitted to the FAA and we're making great progress towards getting the vast majority of our most is completed by the first half of this year. So we have a plan and the FAA has been supporting according to the plan I'm very optimistic with the progression there.
Sure.
As it relates to the powered lift and specifically the 20%.
That you mentioned.
The regulations like Paul and Joe Ben said, there are regulatory aspects applicable to our means of compliance officer basis have not changed so for all practical purposes, we are continuing to execute for our services.
He has been supporting.
Just as such.
Great. Thank you.
Our next question is from Bill Peterson with Jpmorgan. Please proceed.
Yes, hi, good afternoon, and thanks for taking my questions.
I guess my first question.
It's related to that obviously you have overseas.
The partnerships you have Korea, Japan.
Can you shed some more light on how this was going to be executed.
Peter This is gonna be sales or operations.
Help us understand how that is going to play out.
Sure.
Thanks, a lot for the question. So it was a little bit hard to hear you I think it was broadly about our.
Our partnerships announced in South Korea, and Japan is that correct.
It is and I think just I guess, how we should think about that from what will be some sales or.
I know you guys kind of you guys, probably wont be operators, but how.
The ownership structure would work.
Any additional details you can share there.
Alright, Thanks, a lot yeah. So our approach is as you noted a little bit different than some of the other folks and that we want to not only build the aircraft, but also operate the aircraft and deliver that service kind of more directly to end customers.
But our approach in the U S is going to be I think.
What this is really about us finding the right partners that are going to sit around that operation.
So S K, South Korea, certainly A&H and in Japan, We think are the right partners to help support what those launches might look like.
So it's not a change in strategy, it's really announcing the right set of partners to <unk>.
Excessively execute on our commercial launch in one of those countries.
Okay. Thanks for that.
Can you can you give some sort of sense. Maybe this is for Matt just try to give us some sort of sense of how we should think about.
And opex as well as Capex.
In the current quarter, and then I guess, how we should think about how that progresses through the year.
Yes, Thanks Bill.
I shared our cash in terms of net operating activities and Capex at $72 3 million.
Joanne chairs.
In track on track with our guidance of $3 40 to 360.
Clearly if you multiply that number times four you get to a lower number and so you should really think of us as.
Ramping up spending really around two things one as we build out our team. So we will continue to grow our team to support certification and manufacturing most principally but then also as we finish off completing our manufacturing at our pilot plant facility. So continuing to build equipment as we finish out our capacity.
Yeah.
Thanks for that.
Thanks Bill.
Our next question is from Edison <unk> with Deutsche Bank. Please proceed.
Hey, everyone. Thanks for taking our questions.
Just wanted to follow up on the U S. A topic, so I understand youre, saying that theres really no delay to the type certification, but wondering if the changes have any sort of impact on the timing of the operations.
Is there any do you see any sort of impact there either for yourself or for the industry more broadly.
Yeah. This is thank you and thank you Edison. This is Bonnie and this the way we're looking at the operations and that May even stated that they aren't anticipating any adding any delay to the certification of our operations. We're also thinking very broadly in terms of long term in terms of the pilots and the.
Training programs and just as we're building out our 135 program well in advance. We're also building out of all of our training programs, which allows us to build a basic foundation.
Make any adjustments as necessary as any kind of training regulations.
And our training program is very robust because we're already partnering with the DMD to validate that training and we had a.
As <unk> mentioned earlier the AED the aircraft evaluation Division was here with US this week and part of their mandate is to observe how we're thinking about our training program. How we're thinking about our operating program. We had very good discussions on this very topic. So I'm very confident that the process, we're putting in place will serve us quite well.
As these regulations evolve if they do at all.
Understood understood.
Following up.
Topic on the flight testing, what's your sort of latest plan for.
For the rest of the year and what are you sort of hoping to learn accomplish what the next few quarters, that's a flight testing.
Thanks, Rob for the question Edison.
This is Paul.
So we already mentioned I think on the last call that we've restarted the flight testing program.
And we continue to see some good progress on that front, but honestly this year when we think about.
The use of the aircraft, it's really not so much.
For internal flight testing purposes at this stage, we had an opportunity obviously to.
You will start flight testing program way back in 2017 and turned last year. We mentioned that we did sort of a 1000 flights demonstrating the range of the aircraft below noise signature the aircraft and in turn doing that at altitudes that are representative of normal operation. So we feel like we've checked a lot of really important boxes in terms of our internal flight testing evaluation.
Yeah.
What the work with aircraft. This year will look like is actually doing operations in conjunction with our ongoing contracts with the Dod.
So that's going to be the focus of the flight testing program.
Use the aircraft as we think through the majority of this year.
Yeah.
Understood. Thank you.
Our next question is from Andres Sheppard with Cantor Fitzgerald. Please proceed.
Hey, guys good afternoon, and congrats on the quarter.
Thank you I just wanted to.
I just wanted to follow up a little bit on the certification process with now close to 80% of the means of compliance being accepted I'm wondering is that in some ways is that ahead of schedule relative to your expectations now that it's only 20% left I know you had said <unk>.
22, but I'm just wondering where.
In the first half of the year. It seems like most of the progress there has already been achieved so how should we think about the remaining 220%.
Yes. Thank you for the question this is DJ.
Obviously, we're pretty excited and thrilled for having achieved close to 80% of the means of compliance big thanks to the team for all the efforts going into that.
Further beyond the means of compliance of course, we talked about sort of the next step of this is <unk>.
<unk> submitted an acceptance of the area of specific served plants and a few of these haven't been submitted now in one accepted which is really amazing achievement.
I would say we are laser focused on.
The target of the plan we are on target on plan, we're super excited about the progress there and I think we're going to continue to be consistent.
Delivering along that plan.
Got it.
That's helpful. Maybe a question for Matt and this is maybe piggybacking from from Bill's question earlier in terms of the Opex ratio guidance is unchanged.
When should we suddenly that you kind of expect it to ramp up quarter over quarter I'm. Just wondering should we account for any seasonality and in India in the Opex just to kind of.
Reconcile and be within that that that guidance that you provided.
Just any color you can kind of give us from us from a modeling perspective I guess.
Yeah, So I wouldn't say, there's necessarily seasonality because our staffing levels will grow quarter over quarter over quarter. There may be some lumpiness around our purchase of the equipment.
That could affect the quarter and then obviously, there's things that affect any company.
Youre fringes your personnel taxes, and your 401K match things tend to be more frontloaded than back loaded just because of how those work, but fundamentally I would think of kind of sequential growth across the year as we bring on staff.
Got it thanks for that and maybe one last one if I may.
With the continued supply chain disruptions that we've seen the prices of batteries.
Batteries have started to.
Kind of moving in the opposite direction.
Now I realize you guys are vertically integrated which in this case would seem like a better strategy, but I'm just wondering on a macro level.
How should we what are some best practices that you can implement to hopefully try to mitigate some of that supply chain disruption do you expect to be affected by the price of batteries going up.
And if so what are some things that can be done to it.
Just kind of prevent or mitigate that.
Thank you Andre this is joanne.
Couple of different dimensions to that question.
On.
The first point in terms of battery supply.
We have had the fortunate.
Working with.
Some fantastic battery suppliers for many years now we have longstanding relationships and we.
We have a large supply of cells in house.
That will carry us.
Through.
For quite a while now.
Second on your question around the cost on batteries.
There's two dimensions to that the first is how the cost of batteries.
<unk> reflects on.
Yeah.
Our Bom cost the cost of building the aircraft when they're first manufacturer and.
We can think about that in the frame of reference of a ground EV, where the batteries a substantial portion of the cost for our aircraft and the cost of the battery is a much smaller portion of.
Of the total Bom cost.
And so we're not as sensitive there.
As a result, we.
Select batteries, which might cost a little bit more on the upfront, but which have much longer cycle life.
And as a result, because we are both the.
Manufacturer, but also the operator.
We what we really care about is being able to deliver the lowest possible prices.
For our customers.
And to do that we selected long cycle life batteries and as a result.
As we previously noted we've demonstrated more than 10000 represented a flight cycles.
On the shelf and as a result, the <unk>.
The cost of the batteries.
Is the battery cost is a portion of our operating cost is quite small.
Got it that's very helpful. Appreciate it congrats again on the quarter. Thank you I'll pass it on.
Our next question is from David low with Barclays. Please proceed.
Hey, Thanks for taking my question maybe for Joe.
Joe.
A number of peers have discussed where they are in the design review process just could you give us an update on the.
Where you are in the design review process.
Clearly the fact that you are manufacturing some some parts are a pretty strong statement.
It is of itself, but maybe discuss some of the parts that you may be holding back on.
From the manufacturing standpoint, as you guys are you talking to you.
Okay. Thank you.
Yes.
If I were to describe where we are in the process I probably want to focus first on the typical development process goes through the PDR CD or through the TCE cycle, while we have chosen edge Ob is to marry this cycle with a more.
More of an agile development cycle. The reason we did that.
It allows us to grow through design.
Development testing very quickly and as we do that we iterate and.
And we closed that feedback loop into the design so that we can mature.
At a faster pace and at multiple levels throughout the overall aircraft.
Series of systems.
And so as you might as you mentioned as you might imagine right now we are at a mature design cycle, where we're building the production intent to aircraft I mentioned earlier and B.
Introduction that we are developing production intent components throughout all of our systems, particularly some of the airframe parts. The electronics parts the electric propulsion unit as well as the electrical wiring system. So I would say through that we are well into the mature.
Phase of our design process as you can see here.
Alright.
And then last quarter.
We're limited in your comment as.
As far as the accident that occurred.
During prior flight testing I wonder, if you're able to comment anymore I think of the investigation.
Still in progress phase, So you may not be able to but.
If you can can you maybe discuss.
What influence you've seen on your current flight testing.
How you've changed or what benefits you're seeing.
Yes. Thank you. So we as you rightly note. This is an ongoing NTSB investigation, and so I can't comment directly.
I would like to highlight some of the elements that Paul spoke about.
Very very pleased with the results that have been released on the acoustic profile.
Our testing with NASA was.
And the results there are really remarkable.
Also demonstrating the speed the range the altitude.
Basically we're checking the box checking boxes across the board.
And.
Our flight test program has really shown that we're delivering on.
Element that that we've committed to and what that means is that we're.
The aircraft were building is going to <unk>.
Deliver a huge amount of value to our customers.
Yes.
With with with regard to.
The.
The accident and.
We think that.
There have been.
Really valuable learnings.
And we will.
Sure.
We will take take those.
But we do not expect them to have.
Any material impact on our.
On our <unk>.
On a program or on the aircraft design.
Great. Thanks very much.
We have reached end of our question answer session I would like to turn the conference back over to Joe <unk> for closing remarks.
Thank you operator, and thank you everyone for joining us today.
Our team is laser focused on execution I think you've seen that.
Our execution this quarter across all of our areas certification production and commercialization and youre going to see that as we move into this next quarter.
Really appreciate everyone for joining us today and.
Can't wait to talk to you next quarter. Thank you so much.
Thank you. This does conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.
Okay.
[music].
Yeah.