Q2 2023 Aurora Innovation Inc Earnings Call
[music].
Greetings and welcome to award second quarter 2023 business review 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 during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host Stacy Feit, Vice President of Investor Relations. Thank Stacy you may begin.
Thanks, Alicia and good afternoon, everyone and welcome to our second quarter 2023 business were beautiful.
I'll start results earlier this afternoon.
Shareholder letter and a presentation to accompany this call are available on our Investor Relations website at IR Dot Dot Tech. The shareholder letter was also furnished with our form 8-K filed today with the SEC.
On the call with me today are Chris <unk>, co founder and CEO and David Mcgee CFO .
Chris will provide an update on the progress we've made across the key pillars of our business and do well recap our second quarter financial results. We will then open the call to Q&A.
A recording of this conference call will be available on our Investor Relations website at IR Dot Dot Tech shortly after this call has ended.
I'd like to take this opportunity to remind you that during the call we'll be making forward looking statements.
Statements relating to the achievement of certain milestones around and realization of the potential benefits of the development manufacturing scaling and commercialization that there were a driver in the world horizon on our anticipated time frame the expected performance of our business and potential opportunities with partners and customers.
Expected contract commitments from customers of our products and services expected cash runway and overall future prospects.
Statements are subject to known and unknown restaurant uncertainty that could cause actual results to differ materially from those projected or implied during this call.
In particular those described in our risk factors included in our annual report on Form 10-K for the year ended December 31, 2022 filed with the SEC.
As well as the current uncertainty and unpredictability in our business the markets in economy.
Additional information will also be set forth in our quarterly report on Form 10-Q for the quarter ended June 32023.
You should not rely on our forward looking statements as predictions of future events. All forward looking statements that we make on this call are based on assumptions and beliefs as of the date hereof and Aurora disclaims any obligation to update any forward looking statements as required by law.
Our discussion today may include non-GAAP financial measures. These non-GAAP measures should be considered in addition to and not a substitute for or in isolation from our GAAP results information regarding our non-GAAP financial results, including a reconciliation of our historical GAAP to non-GAAP results may be found in our shareholder letter, which was furnished with our form 8-K filed today with the.
T SEC and May also may also be found on our Investor Relations website with that I'll now turn the call over to Chris.
Thanks Stacy.
It's been a remarkable time at Aurora coming off the accomplishments of the first quarter in which we achieved our critical feature complete milestone at the end of March.
During the second quarter, we made strong progress toward closing the Aurora driver safety case, enhancing our economy performance and expanding our partner ecosystem to support the growth of our business for years to come.
Successful execution against our roadmap to launch a broader horizon, our autonomous trucking subscription surface has continued to move us significantly closer to fully autonomous commercial operations.
With this tremendous progress we raised $853 million of total gross proceeds through a public offering including the exercise of the underwriters over allotment option and concurrent private placement of class a common stock we received very strong support from key institutional and strategic investors.
We expect our total liquidity, including the net proceeds from the successful fund raise of $1 $6 billion to fund us through our planned commercial launch and into the second half of 2025.
Raising this amount of capital in the current discerning capital markets environment is truly a testament to the special company and products we're building.
Throughout <unk> history and in this most recent fundraise, we've had strong support from top tier institutional and strategic investors. We're fortunate to have these incredible partners.
We see this fundraising as continued validation from some of the most sophisticated investors in the world who are recognizing our industry, leading progress and the enormous potential that lies ahead.
Given that the competitive field has been dramatically we are more confident than ever in our leadership position.
We're delighted to see Aurora featured in the Netflix series working what we do all day, which premiered in May and explores the meaning of work in a time of rapid change produced and hosted by former President Barack Obama. The documentaries provides a glimpse into how we're building a company with an unmatched team and culture as well as new.
Innovative career opportunities.
As part of the series, we were proud to give president Obama right in a fully autonomous Aurora driven powered toy or driver powered Toyota Sienna operating without a safety driver when our Pittsburgh proving grounds.
This is the first time of use precedent has written in an autonomous vehicle.
Consistent with our approach to readiness for our commercial launch we completed a tailored safety case for this operating domain.
Seeing the former President's excitement for and comfort with our technology was an incredibly rewarding moment for our team.
Preparing to transport one of the most highly regarded and well protected individuals in the world the process underscored our competence in and the power of our safety case based approach for the commercial launch for horizon.
As we stated the Aurora driver will be ready to launch when we have a close safety case for our Dallas to Houston late.
Safety cases, a comprehensive evidence based approach to confirming our self driving vehicles or acceptably safe to operate on public roads.
It's beyond just ensuring the vehicle drives well enough for a demo rather it demonstrates that our product and our company are holistically at sustainably safe.
The autonomy autonomy readiness measure or RM is weighted as a weighted measure of completeness across all claims of our safety case for our launch line. It reflects the percentage of work needed to move from feature complete to our next critical milestone Aurora driver ready.
We've continued to make meaningful progress toward closing our launch safety case, achieving an arm of 65% as of June 32023.
This 21 point increase during the second quarter is a strong reflection of our advancement and keeps us on track to achieve our ROI driver ready later this year.
Looking to the second half of 2023 much of the remaining work will be focused on completing the final validation to address the claims in the first pillar of our safety case framework proficient.
We define this as the self driving vehicle is acceptably safe during nominal operation.
Or in other words, we drive well when everything is working as intended.
While on road testing is important and autonomy systems performance must be validated against the vast number of scenarios many of which are thankfully rare on public roads.
Getting adequate exposure to rare challenging scenarios by accumulating on road miles alone isn't feasible in.
In turn a key component of our approach Leverages Aurora is virtual testing suite amplify exposure to rare events to sufficiently test the roar drivers performance in those scenarios.
We do this in two ways first important but rare on road events. The Aurora driver has encountered are turned into simulation test and we create variations to further challenge the system's performance in these scenarios you can see an illustrative example of this on page seven of the slide deck.
Second for events, so rare the Aurora driver has not experienced them on the road, we synthetically generate stimulation tests using the established and it's the collection collision categorization, which accumulates the ways vehicles get into crashes.
We've included the Nitsa collision taxonomy, and an example of a set of these tests on page eight of the slide deck to give you a sense of the comprehensive nature of this analysis.
For these imminent collision scenarios and rare on road events, the Aurora drivers encountered we're creating tens of thousands of tests.
The expected performance of the human driver the Aurora drivers being designed to avoid a collision in these scenarios if possible exclusion is not avoidable essent scenarios, where another actor's behavior renders occlusion inevitable. The Aurora drivers designed to mitigate adverse outcomes for example, attempting to reduce the impact if a slow moving vehicle to cut an unsafe.
If we close to our truck just as a human driver shift.
Success of these tests will give us the conviction that the Aurora driver is designed to do the right thing in these rare scenarios.
In addition to supporting the closure of the safety case for our Dallas to Houston launch Lane, we expect this framework to make the incremental validation straightforward for our planned future Lane expansion.
We will analyze the differences between existing lanes and the new line and add new validation tests as needed to support the scaling of our business.
To further demonstrate our confidence in the Aurora drivers expected performance on our Dallas to Houston launch Lane, specifically, we looked at available accident reports for fatal collisions that involved a tractor trailer for the years 2018 through 2022.
We stimulated those collisions to understand how the Aurora driver would have acted under similar circumstances.
Of the 32 collisions there were 29, where the Aurora driver could have been operating the initiating vehicle.
Based on our analysis, we believe that had the reward driver been driving the combination of its powerful sensor suite and attentive driving behavior would have prevented these collisions said simply non of these federal collisions would've occurred.
On page 10 of the slide deck. We've included an example of one of these stimulations that demonstrates the ROI driver would have avoided a fatal collision that occurred on I 45.
It's real life situation, the Texas Department of Transportation Craft crash report showed that a driver who was suspected of using their cell phone and texting crossed over into the oncoming traffic lanes and crashed head on into another vehicle the.
The impact cost of rotation of the vehicles across multiple lanes of the highway tractor trailer encountered the crash scene and square have to try avoid hitting the vehicles, but was unsuccessful.
Collided with the wrong way driver and tragically two people were killed.
We stimulated a recreation of this scenario and as you can see in the video as soon as your driver perceives the runway driver it initiates a lane change to navigate around the oncoming vehicle.
It becomes clear to the Aurora driver that the two vehicles or about to collide with one another the Aurora drivers slows at speed from 65 miles per hour and attempts to lane change again to avoid contact with the vehicles that have just collided.
One of the vehicles, then spins out and blocks the outer lane as well the Aurora driver safely adjust its course to come to a full stop as it approaches the accident scene.
Executing the successful maneuvers enables the Aurora driver to avoid contact with both vehicles at the scene.
Taking a step back each year that there are approximately half a million truck crashes on U S roads, and nearly 6000 people lost their lives and truck related crashes in 2021.
We believe our technology can meaningfully reduce the risk. This is just one very powerful example of this potential.
As we work toward completing the necessary validation to close the Aurora driver safety case for a commercial launch Lane, we're continuing our quarterly project release cadence following the achievement of our feature complete milestone for the Aurora driver at the end of the first quarter, our product releases now focus on delivering the totality of Aurora horizon.
During the second quarter, we released Aurora Horizon Beta seven point out let me share some of the notable advancements on our Dallas to Houston launch late <unk>.
First and foremost we enhanced on road autonomy performance. We also put in place a standard terminal flow incorporating terminal configuration launching Atlantic of trucks and autonomy. If you are a terminal app and pre and post trip commercial procedures, including fueling onsite way stations and tractor trailer inspection.
We increased on site service and maintenance capabilities, including repair service for customer trailers via our partnership with Ryder to drive higher asset utilization and better network performance and we strengthened our commercial our command center capabilities, including our remote assistance support dispatch functionality and asset management.
Beta seven point out demonstrates that Aurora horizons performance commercial scale and overall readiness are progressing on pace with Aurora driver ready at commercial launch requirements.
With each advancing product release, we enable our customers to further experience where our horizon as it is designed to operate at launch during the second quarter, we unlock the ability to run complete Mark driverless runs incorporating all components of the driverless process, including pre mission on road and post emission elements through.
These mark missions, we are honing various operational and technical elements in advance of commercial launch.
During the second quarter, our pilot activity exceeded our target to autonomously Hall 50 loads per week for our customers as we continue to scale. Our operations. We are now logging over 17000 commercial miles per week and I have already hauled over 1300 loads year to date through July 31, exceeding the number of loads hauled for the <unk>.
<unk> 2022.
Cumulative to date through July 31, we've autonomously delivered under the supervision of vehicle operators 2290 loads driving more than 630000 commercial miles with nearly 100% on time performance for our customers, including Fedex Werner Schneider and newer freight.
We continue to see strong interest from our customers and are working to integrate Aurora horizon into their existing networks. We remain on plan to contract loads from commercial launch through 2025 by the end of this year.
One way, we measure our performance to successfully operate the Aurora horizon surface is through the on road autonomy performance indicator or API.
This metric allows us to track not just the state of our technology, but the maturity of our processes and procedures in operating our business.
Indicated penalizes the use of onsite support which we the most expensive support provided to enable to horizon surface.
For the second quarter of 2023, the API was 97% a sequential increase from the first quarter of 2023.
The API represents the percentage of commercially relevant miles driven on our launch lane, where the Aurora driver would have operated safely and successfully without needing someone to touch the vehicle we.
Sure more precise definition in the shareholder letter and on page 15 of the slide deck.
Notably non of the support our vehicles received was required to keep the vehicles operating safely.
Over 100000 commercially representative miles driven on the launch late in 2023, including over 65000 commercial miles during the second quarter, we experienced zero safety critical interventions.
Across the commercially representative loads completed in pilot operations on our launch late in the second quarter, we saw meaningful enhancement of autonomy performance versus the first quarter with about half of these loads, having an API of 100% and nearly 75% with an API greater than or equal to 99%.
As a reminder, we do not anticipate that aggregate API will be 100% even at launch because certain situations. For example, flat tires will always require onsite support.
As we look ahead to commercial launch and beyond scalability and ultimately our profitability will be supported by a reduction in the level of onsite support required.
We believe it is important to hold our teams accountable to delivering a complete commercially representative product in evaluating its performance on this basis.
The API is one way we can do this.
Our work with our truck OEM partners, <unk>, and Volvo trucks, and our new hardware as a service partner Continental continues to progress as we prepare for commercial launch and beyond.
During the second quarter pack or completed a $1 5 million equivalent model durability test of a kenworth cap with the Aurora driver hardware installed.
Our driver hardware remained fully functional at the end of the test.
Bob Autonomous solutions in Aurora and expect to begin testing in autonomy enabled prototype <unk> powered by the Aurora driver in the first quarter of 2024 separately. If autonomous solutions has expanded its footprint in North America with the establishment of an office in Texas and started manual operations in preparation for the <unk>.
<unk> launch of its autonomous hub to hub transport solution powered by the <unk> driver.
In April we announced a long term partnership with continental to develop manufacture and service a commercially scalable future generation of the Aurora drivers Harbor kit.
Continental has already started development efforts to scale the Aurora driver in.
In addition, the partnership's hardware as a service structure will enable ROI to pay for the hardware on a per mile basis. This structure is a first of its kind for this industry and aligns with and support our highly capital efficient drivers a service business model.
The model also drive significant value alignment among us continental and our customers.
We believe industrializing our hardware kit through this partnership will help us achieve the commercial scale and cost structure necessary to support our long term profitability objectives.
Finally, I am immensely proud of our safety culture at Aurora, We finished the second quarter and June celebrating national safety month at Aurora. The concept of safety is top of mind, all day everyday, especially as a self driving industry continues to grow and evolve.
Automated vehicles should be one of the tools and societies collective toolkit to greatly reduce the unnecessary loss of human life on our roadways, and our ability to deliver on our self driving future hinges on a relentless commitment to safety and transparency.
As we continue our evolution from a research and development company to a product company, we announced the leadership transition in June with Dave midday, assuming the role of Chief Financial Officer before taking on this role Dave ran business development and product strategy at Aurora and brings deep experience in finance that will benefit us as we approach commercialization.
Prior to joining Aurora, they've spent over 20 years at general motors, including leading the transformation of Gm's product program Finance organization supporting accelerated growth and resource efficiency across a multibillion dollar annual capex budget.
David is a highly accomplished finance leader with a proven track record of managing profitable enterprises at scale with a strategic acumen and deep familiarity with <unk> product business and customers I'm confident we will accelerate our commercial performance, while simultaneously increasing our financial discipline across the business.
In closing on the heels of our recent capital raise and strong technical and commercial advancement. We entered the second half of 2023 with strong momentum toward achieving the ROI driver ready milestone by the end of the year, which in turn prepares us for our anticipated commercial launch by the end of 2024.
The magnitude of our recent capital raise represents a tremendous endorsement and the market's confidence in <unk> ability to deliver.
Our position continues to strengthen as we execute and build our coalition of partners at the same time the competitive landscape in autonomous trucking has thinned offering an even more compelling opportunity for those who continue to execute.
Our World Class team partners and investors recognize Aurora is well positioned to commercialize this technology and generate significant value for our customers and shareholders with that I'll now pass it over to Dave who will review our financial results.
Thank you, Chris let's discuss our financial results during the second quarter of 2023, we continue to demonstrate strong fiscal discipline by ensuring the team is able to effectively execute our roadmap to launch or horizon.
Second quarter, 2023, operating expenses, including including stock based compensation totaled $217 million, excluding stock based compensation of $43 million operating expenses totaled totaled $174 million.
Within operating expenses, our R&D expenses, excluding $37 million in stock based compensation totaled $150 million.
SG&A expenses, excluding $6 million in stock based compensation were $24 million.
With the award of a driver in the final phase of refinement and validation and all revenue under the collaboration framework agreement with Toyota previously recognized we did not record any revenue during the second quarter of 2023.
We used approximately $182 million in operating cash during the second quarter of 2023, which.
Which includes $49 million in payments associated with our 2020 to annual incentive compensation program.
In the prior year incentive compensation payments were made during the first quarter. During the second quarter of 2020, do we received a cash payment of $48 million under the collaboration.
Project plan with Toyota the second quarter of 2023 was not impacted by this cash activity.
Capital expenditures totaled $4 million in the second quarter of 2023.
We ended the second quarter with a very strong balance sheet, including $785 million in cash and short term investments.
Subsequent to the quarter end, we raised $853 million of total gross proceeds through our public offering including the exercise of the underwriters over allotment option and the concurrent private placement, which further solidifies our balance sheet.
In conjunction with the capital raise we shared some incremental financial information.
We estimate quarterly cash use of $175 million to $185 million on.
<unk> from the third quarter of 2023 through planned commercial launch.
Higher to the capital raise we estimated needing one six to $1 $7 billion in incremental capital beyond our then existing LNG capital to become free cash flow positive on a run rate basis by the end of 2027.
The $853 million fundraise, we completed reflects roughly half of that incremental capital.
With $828 million in net proceeds from the offerings and our cash and short term investments balance.
At June 30, we expect our total liquidity of $1 $6 billion to support our planned commercial launch at the end of 'twenty four and fund operations into the second half of 2025.
With that I will now open the call to Q&A.
Okay.
Thank you.
We will now be conducting a question and answer session I would like to ask a question. Please press star one on your telephone keypad.
The conference.
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One moment, please while we poll for questions.
Thank you our first question comes from George.
Ron.
With Canaccord Genuity. Please proceed with your question.
Everyone and thank you for taking my question.
I'd like to ask a broader industry question and look for your insights as to.
What you think is happening in terms of the competitive landscape, particularly with way most recent decision to slow down the development.
Okay.
Todd Ms trucking platform I mean, when you look at the landscape.
Hugh.
And maybe some other upstart like Kodiak or plus I'm curious as to whether you can help us understand.
What you think drove their decision and how you see the landscape evolving over the next several years. Thank you.
Yes, Thank you George.
So first I'd say, it's an incredibly exciting time and automated vehicles.
We feel like we're making tremendous progress and looking to launch our trucks next year, it's really exciting to see what companies like way more crews are able to do with passenger vehicles.
In urban environments.
It's just exciting to see is somebody who has been working in this space for a long time.
For us we have said for many years that we expected.
Consolidation happen in the landscape to clear and that we've been building the companies whether it's through the capital partners, we've developed or the strategic bets. We've made on technology to be positioned to be one of the folks who will come out and have an impact.
Be victorious in this space.
We look at investments, we made like the acquisition of Blackmore.
Five years ago that led to the first light Lidar technology that we see as a critical element of delivering a safe trucking product and we don't see others with that capability.
We look at things like our investment in stimulation and the speed that that gives us and our ability to iterate the ability for us to validate our system efficiently and those are pets, we made.
Five plus years ago, and are really coming to fruition today and then the strength of the partnerships we've put in place whether it's with our customers or with our OEM partners that those are differentiated and are enabling us to be successful.
We also look at ethane landscape and.
Honestly, we focus on what we're doing ourselves.
And really for the next decade, we see this as a pie that will grow rather than something where we're fighting over slices in the pie.
But it's.
Its exciting the progress, we're making and exciting to see the the endorsement we're able to get from some very smart investors.
If I could just ask a follow up.
Gears for a second I'd like to ask about scalability.
Over the next.
A few years as you add additional lanes can you just talk about the incremental learnings that are required incremental spending that's required to open those up.
And how you feel about this.
Thanks.
And this has been a critical part of the way we've thought about the profit per day, one is that again.
Again I have been working this for 20 years, now and Theres been a lot of demos along the way.
<unk> been important learning moments, but in building Aurora, we knew from day, one that it was not about assigned project or a demo was about how do we deliver technology that will ultimately be scalable be commercially viable and actually allow us to build a real business and benefit society and benefit our shareholders and our customers.
And so things like our approach to safety.
<unk>.
The safety case framework, which holistically looks at our business and allows us to really think about the components that makeup safety.
Enable us to be in a position to scale things.
Things again like I mentioned in this call today. The work we're doing around testing very rare events, we have a collection of those that we anticipate we might occur.
Encounter.
On our initial launch line as we move to new launch lines, our new lanes, we can potentially expand those concretely as we think about moving from Dallas Houston to Fort worth El Paso, which we anticipate to be our second lane.
Really two differences.
One is that you have to drive through customs border patrol station and the other is that Theres a big Hill.
Today, we're as far as we know the only company that's operating regularly autonomous lead through that border patrol station and Thats due to a partnership that we've put in place with customs and border patrol and that tells you a little bit about.
The efforts and engagement, we have with regulators and public policy folks and so today, we do that but we won't be validating that until we decide that it's time to start focusing on turning on that line and then the other big difference is the fact that Theres a big Hill.
And why does that matter well you can't just use the the.
The service breaks to go down the hill, because youll cook them and reduce your breaking capability. So we have to use engine braking.
Our system does that today, but we haven't fully validated it and that'll be another one of those small features that we will have to validate as we have locked that lane and so as we think about rolling out to other lanes. So I'm sure that as we go from El Paso to Phoenix or from Dallas to Atlanta, there'll be small incremental things like that will have to do.
But the vast majority of the driver will be consistent and transferable and we expect that to lead to a very scalable system.
Thank you.
Pleasure. Thank you.
Alright. Our next question is from Tom White with D. A Davidson. Please proceed with your question.
Hey, this is why it swanson on for Tom Thanks for taking our questions.
You guys May have mentioned this in the prepared remarks, but with the capital raise being completed now does that mean anything different in terms of timetable toward commercial launch or anything like that and then related to that is the capital raise is going to change cash burn trends going forward how.
How should we think about that.
The balance of the year and over the next 12 months to 18 months.
So we've.
We've made no secret of the fact.
Since we went public we would need to raise capital.
And this was the right moment gift.
Combination of factors to be able to attract the capital we need and put that on our balance sheet is going to go primarily towards.
Continuing to deliver and execute on the roadmap we have in place.
We continue to expect to be on path to deliver.
Aurora driver at the end of this year and to launch commercially next year, maybe Dave do you want to speak to the cash burn trends.
Yes, Thanks, I think for the cash burn trends as we indicated we expect to be relatively consistent on a quarter by quarter basis through our planned commercial launch.
And so because of that we have a high degree of confidence in kind of the estimated total capital that we need to raise.
To get to a free cash flow positive basis. So we don't have any extraordinary expenses that we're anticipating at this time.
Importantly to note, we literally have a solid foundation from a head count and a team perspective, where we don't see a need to grow substantially in any individual area not only to launch, but then to be able to scale effectively.
We're pretty confident in kind of the outlook for the cash burn.
<unk>.
One of the emissions that Dave has has taken over the role as our CFO has to continue to reinforce and enhance our cost discipline.
So we'll continue to put pressure there as well.
Okay.
That's very helpful. Thank you very much.
Thank you.
Thank you.
As a reminder, please press star one to ask a question at this time.
Our next question comes from David Vernon with Bernstein. Please proceed with your question.
Hello, everyone. This is Justin speaking on behalf of <unk>.
So we're just wondering with these other autonomous trucking company backing away is this impacting your partnerships are you seeing more players turnkey now for partnerships.
That would be great to hear thank you.
Yes so.
Again, we're excited about the position we're in and.
It does reinforce a lot of the strategic bets. We've made we continue to have very strong partnerships with <unk> and together they make up about half the trucks sold in the U S market.
We will continue to look and find the right time to add partners to the fleet ultimately, we'd love to be driving.
Every platform that's out there.
But we've got some time for that so.
We look forward to those conversations when they are appropriate.
Thank you.
Thank you.
Thank you. Our next question comes from Mark Delaney with Goldman Sachs. Please proceed with your question.
Yes. Good afternoon. Thanks for taking my questions. The first one is on AI and with so much focus and the broader tech industry on AI I'm, hoping to better understand if theres anything with the most recent AI training capabilities and latest Gpus that may help Aurora tomorrow quickly develop its driver technology in the scenarios that can work out there.
Sure. So it is exciting to see what's happening in the large language model space in degenerative space. What's exciting is a number of the insights that have driven that have actually been at the foundation of what we've been doing at Aurora since for early on so one of the core technologies Thats part of that Revolution is the transformer.
And this is something that we've been using again since since before it was cool.
And use that as part of the way we predict the way other traffic, we will react to traffic on the road in our behavior.
Then again, something we're using since I'm going to say.
2018 2019 so.
A lot of the things that are coming into play there.
Already incorporated one of the other things Thats really interesting as we've talked for a while about the importance of.
Collecting the right data and having high quality data and how that drives.
Good return and good performance out of you learned models, we're starting to see that become more evident in the large language models spaces, where some of these smaller companies that may not have access to the same corpus is that the tech Giants do we're able to get really high performance models, because they have carefully curated the data set they are using.
So we see that also is indicative of the kind of the strategic bets that we made early on.
Being reinforced by outside evidence.
Really interesting thanks, a lot Chris.
So I was just hopefully better understand the testing that you said was done in collaboration with <unk> in particular, given that the truck platforms had been delayed previously.
That was one of the reasons. The launch timeline is now in 2024, so any more color on how thats going and what your confidence and visibility is at this point in the truck platforms being ready for the launch next year. Thanks.
Yes, we continue to work with those teams on a daily basis, both with <unk> and Volvo truck.
In this case it was a kenworth cap, where we were doing.
Vibration and environments I think just vibration testing.
The equivalent of I think $1 5 million miles.
And internally, we pride ourselves on building and designing reliable hardware have to be in this industry and sort of have this go through the type of testing that they put their their platforms through and see it ride it out and continue to operate is really an exciting feather in the cap of our engineering team.
We continue to believe we're on track to launch a commercial product on the road with no driver in it next year.
<unk>.
If that changes we'll of course provide updates as appropriate.
Thank you.
Thank you there are no further questions at this time.
This concludes today's teleconference. You may disconnect your lines at this time.
You for your participation.
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