Q4 2023 Joby Aviation Inc Earnings Call

Operator: Greetings and welcome to Joby Aviation's fourth quarter 2023 conference call and webcast. At this time, all participants are in a listen-only mode.

Greetings and welcome to Jody Aviation fourth quarter, 2023 conference call and webcast. At this time all participants are in a listen only mode. 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.

Operator: 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, Teresa Dilutea.

Theresa do a deal.

Teresa Thurothiel: Thank you. Hi everyone, and welcome to Joby Aviation's fourth quarter fiscal year 2023 financial results conference call. My name is Teresa Thurothiel, and I'm Joby's head of investor relations. On the call today, we have Joe Ben-Bevert, Founder and Chief Executive Officer, Paul Sciarra, Executive Chairman, Didier Papadopoulos, President of Aircraft OEM, and Matt Field, Chief Financial Officer. After management's prepared remarks, we will open the call for questions. 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.

Thank you hi, everyone and welcome to Dolby Aviation fourth quarter fiscal year 2023 financial results Conference call. My name is Theresa Thursday, I'm, Joe Who's head of Investor Relations.

On the call today, we have drilled in Bedford founder and Chief Executive Officer Pulse Yarra Executive Chairman DDA Papadopoulos President of aircraft OEM and not feel Chief financial Officer.

After managements prepared remarks, we will open the call for questions.

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.

The risks and uncertainties that could cause actual results to differ materially from those expressed or implied.

Teresa Thurothiel: 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 will refer to GAAP and non-GAAP financial measures.

For a more detailed discussion of these risks and uncertainties. Please refer to our filings with the SEC and our 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 will refer to GAAP and non-GAAP financial measures.

Teresa Thurothiel: The reconciliation of non-gap-to-gap measures is included in our Q4 2023 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 JoBen. Thank you, Teresa, and thank you everyone for joining us today for our fourth quarter call. We entered 2023 knowing it would be a pivotal and exciting year for us, and it did not disappoint. In the first three quarters, we launched production and delivered the first eVTOL aircraft to the U.S. Air Force ahead of schedule. We started testing with a pilot on board and have now completed more than 100 inhabited flights. We expanded our partnership with SK Telecom, deepened our partnership with Toyota, and announced a range of new partnerships for infrastructure development. We strengthened our already strong balance sheet.

A reconciliation of non-GAAP to GAAP measures is included in our Q4 2023 shareholder letter.

You can find on our Investor Relations website, along with a 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 for our fourth quarter call. We entered 2023, knowing it would be a pivotal and exciting year for us and it did not disappoint.

Over the first three quarters, we lost production and delivered the first E. VTOL aircrafts in the U S Air Force had a schedule we.

We started testing with a pilot on board and have now completed more than 100 and have been twice.

We expanded our partnership with SK Telecom, we deepened our partnership with Toyota and we announced a range of new partnerships for infrastructure development.

We strengthened our already strong balance sheet, we expanded our contract with the D. O D. We selected a site for manufacturing in Ohio, and released our first ESG report.

JoBen: We expanded our contract with the DoD. We selected a site for manufacturing in Ohio, and released our first ESG report. Perhaps most importantly, we made critical progress on certification, effectively completing the second stage in February of last year. And, as we announced this morning, we have now become the first eVTOL company to complete the third stage. We delivered on all the goals we set ourselves for 2023 and ended the year continuing to lead our industry on the path to commercialization. These accomplishments are tangible proof of what makes Joby special, and they kept us moving steadily towards our goal of launching commercial passenger operations in 2025. During the fourth quarter, the team maintained incredible momentum as we crossed into this calendar year.

Perhaps most importantly, we made critical progress on certification effectively completing the second stage in February of last year and as we announced this morning, we have now become the first EV talk company to complete the third stage.

We delivered on all the goals, we set ourselves for 2023 and ended the year of continuing to lead our industry on the path to commercialization.

These accomplishments are tangible proof of what makes <unk> special and they kept us moving steadily towards our goal of launching commercial passenger operations in 2025.

During the fourth quarter the team maintained incredible momentum as we crossed into this calendar year.

JoBen: A real highlight for me was welcoming a team of senior leaders from the FAA to Marina in January. This visit gave us an opportunity to demonstrate firsthand the maturity of our designs and our production processes as we discussed our certification program with them in detail. This level of positive engagement and collaboration is encouraging and will help to ensure continued U.S. leadership in this new sector. In November, we were honored to demonstrate this leadership by completing the first eVTOL flight in New York City. This was a seminal moment for our company; seeing a Joby aircraft lift off from a Manhattan heliport was, quite literally, a dream come true for us, and it moved the needle. In front of the local community, Mayor Adams, and key stakeholders, we were able to demonstrate the incredibly quiet acoustic footprint of our aircraft and the opportunity presented by our technology to improve city mobility. Being really is believing, and I'm so proud of the team that was able to make this happen.

A real highlight for me was welcoming a team of senior leaders from the FAA to Marina in January.

This visit gave us an opportunity to demonstrate firsthand the maturity of our designs and our production processes as we discussed our certification program with them in detail.

This level of positive engagement and collaboration is encouraging and will help to ensure continued U S leadership in this new sector.

In November we were honored to demonstrate this leadership by completing the first EV talk like in New York City.

This was a seminal moment for our company.

Adobe aircrafts left off from a Manhattan heliport and complete a flight against the backdrop of the New York City Skyline was quite literally a dream come true for me.

And it moved the needle.

In front of the local community mayor atoms and key stakeholders, we were able to demonstrate the incredibly quiet acoustic footprint of our aircraft and the opportunity presented by our technology to improve city mobility.

Seeing really is believing and I'm. So proud of the team that was able to make this happen. It's just another example of the tangible real life progress, we're able to demonstrate Adobe day in and day out.

JoBen: This is just another example of the tangible, real-life progress we're able to demonstrate at Joby, day in and day out. Our flight was followed by a commitment from the city to electrify the site and bring air taxis to one of the most iconic heliports in the world. A few weeks before that flight, we were pleased to welcome Delta CEO Ed Bastian and representatives from the Economic Development Corporation of New York and the Port Authority of New York and New Jersey to a community event in Brooklyn, where we highlighted our shared ambition to deliver air taxi service in New York.

Our flight was followed by a commitment from the city to electrify the site and bring air taxis to one of the most iconic hello ports in the world.

A few weeks before that flight we were pleased to welcome Delta's CEO, Ed Bastian and Representatives from the economic Development Corporation of New York and the Port Authority of New York, and New Jersey to a community event in Brooklyn, where we highlighted our shared ambition took deliver air taxi service in New York.

JoBen: We continue to work closely together to realize opportunities at Delta's hubs at JFK, LaGuardia, and LAX, and over the last few weeks, we've announced key partnerships with New York City Region to support the installation of charging infrastructure. We've also announced partnerships with Clay Lacy to support the development of our LA network, with Nomura to support our Tokyo network, and most recently with Skyports to build infrastructure in Dubai. Working with these partners, we plan to install our Global Electric Aviation Charging System, or GEAC, the first charging system designed specifically for aviation, which supports the safe and efficient operation of all electric aircraft under development today.

We continue to work closely together to realize opportunities of delta's hubs at JFK Laguardia and lax.

And over the last few weeks, we've announced key partnerships in the New York City region to support the installation of charging infrastructure.

We've also announced partnerships with clay Lacy to support the development of our L. A network with Nomura to support our Tokyo network and most recently with Sky ports to build infrastructure and Dubai.

Working with these partners, we plan to install our global electric aviation charging system or geeks. The first charging system designed specifically for aviation, which supports the safe and efficient operation of all electric aircraft under development today.

JoBen: In November, we released the specification of Geeks to the industry to accelerate the commercialization of emissions-free aviation technology. But the most significant commercial development of the quarter came in December when we signed an agreement with the government of Dubai to launch an air taxi service in the Emirates. Announced last week at the opening of the World Government Summit, this is a landmark agreement that delivers on all three ingredients required for the successful launch of an air taxi service in any market, a definitive path to operation, well-placed infrastructure supported by dedicated partners, and an aircraft with the capacity and range to deliver meaningful customer journeys. The agreement grants Joby exclusive rights to operate air taxis in the emirate for six years and includes financial support for initial operations

In November we released the specification of geeks to the industry to accelerate the commercialization of emissions free aviation technology.

But the most significant commercial development of the quarter came in December when we signed an agreement with the government of Dubai to launch an air taxi service and the Emirates.

Announced last week at the opening of the World governments Summit. This is a landmark agreement that delivers on all three ingredients required for the successful launch of an air taxi service in any market.

A definitive path to operation.

Placed infrastructure supported by dedicated partners and an aircraft with the capacity and range to deliver meaningful customer journeys.

The agreement grants <unk> exclusive rights to operate are taxes and the Emirates for six years and includes financial support for initial operation the.

JoBen: The Government of Dubai wants this service to be the first in the world, and their actions certainly reflect that ambition, with support from the very highest levels of government and a regulatory pathway that builds on FAA processes but allows for operations ahead of achieving type certification in the U.S. This is a remarkable opportunity for any eVTOL operator. We're proud to have demonstrated to the government of Dubai that Joby is the best position to deliver this service. It's a definitive, tangible partnership that provides another path to delivering on our goal of starting commercial passenger service in 2025. That commitment to delivering real progress and results is exactly what we will continue to do this year. In fact, we've already started.

The government of Dubai, What's this service to be the first in the world and their actions certainly reflect that ambition with support from the very highest levels of government and a regulatory pathway that builds on FAA processes, but allows for operations head of achieving type certification in the U S.

This is a remarkable opportunity for any EV tall, operator, and we're proud to have demonstrated to the government of Dubai that Joey is the best positioned to deliver this service.

It's a definitive tangible partnership that provides another path to delivering on our goal of starting commercial passenger service in 2025.

That commitment to delivering real progress and results is exactly what we will continue to do this year.

In fact, we've already started.

JoBen: Last month, we received our Part 145 repair station certificate from the FAA. This approval lays the foundation for us to carry out maintenance, repair, and overhaul services in the future, which is a core part of our vertically integrated approach to commercial operations. And just this morning, we announced that we have become the first eVTOL company to complete stage 3 of the FAA certification process, an incredible milestone that Didier will speak more about in a moment. With the first three stages behind us, this year, we expect to make steady progress on stage four as we expand our four-credit testing across more and more of our aircraft. In addition to continuing our leadership position on certification, we expect to achieve a number of milestones this year.

Last month, we received our part 145 repair station certificate from the FAA.

This approval lays the foundation for us to carry out maintenance repair and overhaul services for our future fleet, which.

Which is a core part of our vertically integrated approach to commercial operation.

And just this morning, we announced that we have become the first EV toll company to complete stage three of the FAA certification process.

An incredible milestone that DTA will speak more about in a moment.

With the first three stages behind us this year, we expect to make steady progress on stage for as we expand our four credit testing across more and more of the aircrafts.

In addition to continuing our leadership position on certification, we expect to achieve a number of milestones this year.

JoBen: We expect to reach a production run rate equivalent to one aircraft a month by the end of the year as we continue to ramp production in support of certification and commercialization. We plan to break ground on our expansion in Marina and begin component manufacturing in Dayton. And finally, building on the excitement we brought to New York City in November, we plan to extend our flight exhibition series to additional key markets.

We expect to reach a production run rate equivalent to one aircraft a month by the end of the year as we continue to ramp production in support of certification and commercialization.

We plan to break ground on our expansion in Marina and begin component manufacturing in Dayton.

We will commit at least two more aircraft in the department of defense as part of our existing contract.

And finally building on the excitement we brought to New York City in November we plan to extend our flight exhibition series two additional key markets.

Didier: We believe these are the right milestones to ensure Joby's continued leadership in this activity. While we aren't blind to the challenges ahead of us, we believe that we are best positioned to succeed, with the strongest balance sheet, the best team in the industry, and, most important, a laser focus on delivery. Thank you for your continued support and over to Didier to discuss our progress in more detail. Thanks Joben.

We believe these are the right milestones to ensure <unk> continued leadership in this sector.

While we are blind to the challenges ahead of US. We believe that we are best positioned to succeed with the strongest balance sheet. The best team in the industry and most important.

Our laser focus on delivery.

Thank you for your continued support and over to <unk> to discuss our progress in more detail.

Thanks Joanne.

Didier: I'd like to add my own appreciation for the Joby team and everything they've achieved over the last 12 months. It's been a remarkable period and one that's been central to keeping us on track to launch commercial service in 2025. 2023 was an incredible year for Joby.

I'd like to add my own appreciation for the job the team and everything they have achieved over the last 12 months.

It's been a remarkable period and one that's been central to keeping us on track to launch commercial service in 2025.

123, it was an incredible year for jewelry.

Didier: And this year, we are already off to a strong start with the news we shared this morning that we are now the first eVTOL company to complete the third stage of the FAA certification process. This is the result of years of hard work. And in 2023 alone, we had nearly 3,000 pages of certification documents accepted by the FAA. This is truly an incredible milestone, and I want to take a moment to underscore what it means across every part of our aircraft program. We can confidently proceed with submitting test plans and conducting for-credit tests in stage four. That includes the path we'll take to certify all of the structural, mechanical, and electrical systems of our aircraft, as well as the program-wide approach to software, cybersecurity, noise, and human factors. From the carbon fiber composites to the metallics, the flight electronics to the control system, the batteries to the electric propulsion systems, and much more.

And this year, we are already off to a strong start with the news. We shared this morning that we are now the first you'd be talk company to complete the third stage of the FAA certification process.

This is the result of years of hard work.

And in 2023 alone we have nearly 3000 pages of certain documents accepted by the FAA.

This is truly an incredible milestone and I want to take a moment to underscore what it means.

Across every part of our aircraft program. We can confidently proceed into submitting desk plans and conducting four credit that's in stage four.

That includes the path, we will take to certify all of the structural mechanical and electrical systems of our aircraft and the program wide approach to software cyber security noise and human factors.

From the carbon fiber composites to the metallics the flight electronics to the control systems the batteries to the electric propulsion systems and much more we now have a well defined path to certification.

Didier: We now have a well-defined path to certification. I've been part of many aviation certification programs, and this is truly an incredible milestone for us to continue to lead the industry towards certification because of so much hard work by the Joby team, our partners, and by the dedicated FAA staff who have worked closely with us for many years to reach this point. Now our focus is fully on stage four, where we continue to ramp up our FAA for credit testing effort. Last quarter, we completed 34 credit pathfinder tests.

I've been part of many aviation certification programs and this is truly an incredible milestone for us.

We continue to lead the industry towards certification because there's so much hard work by the Jobin team our partners and by the dedicated FAA staff, who have worked closely with us for many years to reach this point.

Now our focus is fully on stage for where we continued to ramp up our FAA for Covid testing efforts.

Last quarter, we completed 34 credits that find their tests.

Didier: 24 of these tests covered four electronic components, each from a different functional area on the Joby aircraft. The other six were related to our materials and processes, the building blocks for our aircraft structure. Through these Pathfinder tests, we're validating our approach to testing across each area of the aircraft, ensuring our testing methods are accurate and efficient before rolling them out more widely. Those 30 tests completed in Q4 put us in a great position to complete hundreds of for-credit tests across our structural materials and flight electronics over the course of this year. We're also beginning to move up the pyramid to larger structures and systems, with the acceptance this past quarter of our test plan for the tail static load test.

94 of these tests covered for electronic components, each from a different functional area on the job aircrafts.

The other six were related to our materials and processes the building blocks for our aircraft structure.

Through these pathfinder tests, we're validating our approach to testing across each area of the aircraft.

Ensuring our testing methods are accurate and efficient before rolling them out more widely.

Those 30 test completed in Q4 put us in a great position to compete hundreds of for credit that's across our structural materials and flight electronics over the course of this year.

We're also beginning to move up the pyramid, two largest structures and systems.

With the acceptance of this past quarter of our tests planned for the tail static load test. We're now building our first FAA conforming test structure to begin F. A a ford credit testing.

Didier: We're now building our first FAA conforming tail structure to begin FAA for credit testing. We will continue to see this progress stack up each quarter as we put more and more points on the board with the FAA. What you won't see reflected in our progress chart is all of the work the team is doing, working directly with the FAA to progressively prepare us for success at the top levels of the aircraft pyramid, testing at the integrated system level and at the aircraft level. Last year, a lot of our interactions with the FAA were getting their hands-on documentation, such as certification plans and system reviews. This year is progressively more about FAA hands-on with the actual aircraft. With all of our aircraft certification plans accepted, we're able to map out dozens of upcoming visits with the FAA focused on dry running our system level and aircraft level tests.

We would continue to see this progress stack up each quarter as we put more and more points on the board with the FAA.

What you won't see it reflected in our progress chart is all of the work. The team is doing working directly with the FAA to progressively prepare us for success at the top level of the aircraft pyramid testing of the integrated system level and that the aircraft level.

Last year, a lot of our interactions with the FAA was getting their hands on documentation such a third plant and system reviews. This year is progressively more about FAA hands on the actual aircraft systems.

With all of our aircraft certification plans accepted we're able to map out dozens of upcoming visits with the F. A a focus on dry running our system level and aircraft level tests.

Didier: This is the heart of the certification process. It's about Joby and the FAA working together on our simulators, in our integrated test lab, and at our many other test facilities to practice and perfect our testing approach in advance of our credit testing, so that when we're ready to do it for credit, we already know we're going to get perfect marks. Our government partnerships also play a key role in these early tests. This week, our team at Edwards Air Force Base is working with the Air Force and the Navy to conduct high-intensity radiated field, or HIRF, testing on the entire aircraft. Perth testing is a key part of any aircraft certification program. It verifies that onboard electronics equipment can withstand the levels of electromagnetic interference they are expected to encounter while in operation. We run HERF tests routinely at our facility in San Carlos at the component level.

This is the heart of the certification process.

It's about Joey and the FAA working together at our simulators in our integrated test lab and our many other test facilities to practice and perfect. Our testing approach in advance of Ford credit testing so.

So that when we're ready to do it for credit we already know we're going to get perfect marks.

Our government partnerships also play a key role in these early tests. This week our team at Edwards Air Force base is working with the Air Force and the Navy to conduct high intensity irradiated field or her testing on the entire aircraft.

Perf testing is a key part of any aircraft certification program.

It verifies the onboard electronics equipment can withstand the levels of electromagnetic interference they aren't expected to encounter while in operation.

We run her desk routinely at our facility in San Carlos at the component level, but.

But we will also be required to carry out her for testing on the full aircraft as part of certification and that's exactly what we are validating right now at Edwards.

Didier: But we will also be required to carry out HERV testing on the full aircraft as part of certification, and that's exactly what we are doing right now at Edwards. This test is an example of the incredible access to facilities and expertise that we gain through our partnership with the government. Similar to the acoustics testing we conducted with NASA in 2021 and the wind tunnel testing we completed last year at the National Full-Scale Aerodynamics Complex.

This step is an example of the incredible access to facilities and expertise that we gained through our partnership with the government.

Similar to the acoustics testing, we conducted with NASA in 2021 and the wind tunnel testing, we completed last year at the National full scale aerodynamics complex.

It's also a great illustration of how our work with the D. O D can accelerate the certification process, helping us to prepare to do this that's for FAA crowded down the line.

Didier: It's also a great illustration of how our work with the DoD can accelerate the certification process, helping us to prepare to do this test for FAA credit down the line. And this is exactly the type of testing that will support the landmark deal we announced last week with the government of Dubai to launch the world's first air taxi network in a premier global city. The regulatory framework we have agreed to with the Dubai General Civil Aviation Authority builds upon FAA standards, using much of the same test data that we're submitting to the FAA for review, but with a more expedient path to market. We'll accomplish this by using testing and analysis that we were already planning on completing as part of the FAA certification process, alongside a high level of regulatory oversight and an ongoing review process to ensure safety for early operation.

And this is exactly the type of testing that will support the landmark deal, we announced last week with the government of Dubai to launch the world's first air taxi network in a premier Global City.

The regulatory framework, we have agreed to with the Dubai General's Civil Aviation authority builds upon FAA standards using much of the same state, though that we're submitting to the FAA for review, but with a more expedient path to market.

We will incur uplift this by using testing and analysis that we were already planning on completing as part of the FAA certification process alongside a high level of regulatory oversight and an ongoing review process to ensure safety for early operations.

In other words it builds on existing work to get us to market sooner and allows us to learn along the way. It's a win win situation that doesn't add significant additional certification burden to our team.

Didier: In other words, it builds on existing work to get us to market sooner and allows us to learn along the way. It's a win-win situation that doesn't add a significant additional certification burden to our team. As well as progress on certification, we've been hard at work preparing for future operations, from our exhibition flights in New York City to completing a series of precision landing tests with the FAA. This test campaign was a sight to behold.

As well as progress on certification.

We've been hard at work preparing for future operations from our exhibition flights in New York City to completing a series of precision lending desk with the FAA.

This desk campaign was a site to behold.

The team flew 31 times in just two days with three different pilots onboard to demonstrate the precise handling qualities of our aircraft.

This showcase of our aircraft performance was critical in demonstrating to the F. A a that we have the same infrastructure requirements as similarly sized helicopters.

Didier: The team flew 31 times in just two days with three different pilots on board to demonstrate the precise handling qualities of our aircraft. This showcase of our aircraft performance was critical in demonstrating to the FAA that we have the same infrastructure requirements as similarly sized helicopters. This confirms what we already knew, that we will be able to use existing infrastructure such as the downtown Manhattan heliport and our partner HHI's heliport just across the Hudson River in Kearney, New Jersey.

This confirms what we already knew that we would be able to use existing infrastructure such as the downtown Manhattan heliport and our partner H H is help or just across the Hudson River in Kearny New Jersey.

Additionally, the data we shared with the FAA through this testing will help inform the design guidance. They are finalizing for future votes supports one of the many areas where job is not just leading but defining the industry.

Another area, where we're defining the industry is understanding how to integrate and air taxi service into the airspace around major cities and airports.

Didier: Additionally, the data we shared with the FAA through this testing will help inform the design guidance they are finalizing for future VertiPorts, one of the many areas where Joby is not just leading but defining the industry. Another area where we're defining the industry is understanding how to integrate an air taxi service into the airspace around major cities and airports. Just before the end of the year, we announced the completion of a series of airspace simulations with NASA focusing on the complex airspace near Dallas-Fort Worth. With real pilots and air traffic controllers playing their role, the Joby NASA team simulated scenarios with dozens of Joby aircraft aloft at the same time alongside existing airport traffic. During the simulation, air traffic controllers were able to integrate up to 120 eVTOL operations per hour, arrivals and departures from DFW's airport central terminal area.

Just before the end of the year, we announced the completion of a series of aerospace simulations with NASA focusing on the complex airspace near Dallas Fort worth.

With real pilots and air traffic controllers, playing their role the jobin asked that team stimulated scenarios with dozens of Dolby aircraft aloft at the same time alongside existing airport traffic.

During the simulation air traffic controllers were able to integrate up to 120, he thought operations for our arrivals and departures from DFW Airport Central terminal area.

The seminal exercise demonstrated that we're able to operate air taxi services and some of the busiest air space using the tools available to air traffic controllers today.

This is a remarkable proof point as we prepare for operations in markets around the world.

And this future begins on our manufacturing lines.

I personally get so much energy from spending time in Marino and San Carlos where you can really see production ramping up every week.

Didier: This seminal exercise demonstrated that we're able to operate air taxi services in some of the busiest airspace using the tools available to air traffic controllers today. This is a remarkable proof point as we prepare for operations in markets around the world, and this future begins on our manufacturing line. I personally get so much energy from spending time in Marina and San Carlos, where you can really see production ramping up every week.

Last year, we built hundreds of flight electronics units and thousands of composite parts.

We now have one aircraft and final assembly and two more aircraft being assembled right behind it.

The team is cranking out parts for numerous aircrafts to follow and to support company and for credit testing.

By the end of the year, we will be building at the run rate equivalent to an aircraft a month.

Didier: Last year, we built hundreds of flight electronics units and thousands of composite parts. We now have one aircraft in final assembly, and two more aircraft are being assembled right behind it. The team is cranking out parts for numerous aircraft to follow and to support the company and for credit testing. By the end of the year, we will be building at a run rate equivalent to an aircraft a month. And as we expand in Marina and bring online facilities in Dayton, Ohio, our production rate will continue to accelerate to support commercial service. We now have four FAA-conforming assembly lines and plan to conform more over the course of 2024, laying the groundwork for the expansion of our for-credit testing and receiving our production certificate soon after our type certification. Finally,

And as we expand in Marina and bring online facilities in Dayton, Ohio, our production rates will continue to accelerate to support commercial service.

We now have four FAA conforming assembly lines and plan to conform more over the course of 'twenty 'twenty four laying the groundwork for expansion of our four credit testing and receiving a production certificate soon after hour type certification.

Finally I.

I want to take a moment to emphasize the importance of the geeks charging interface our team has developed.

This technology has been more than a decade, and they're making the job team has built and flow and multiple generations of E. VTOL aircrafts logging over 30000 miles that include vertical takeoffs and landings.

We've learned just how important it is to have the right charging and thermo conditioning systems in place to support rapid operations and maximize battery life.

Didier: I want to take a moment to emphasize the importance of the Geeks Charging Interface our team has developed. This technology has been more than a decade in the making. The Joby team has built and flown multiple generations of eVTOL aircraft, logging over 30,000 miles that include vertical takeoffs and landings. We've learned just how important it is to have the right charging and thermal conditioning systems in place to support rapid operations and maximize battery life. We took on the hard challenge of designing and building the first ever charging system that actively cools the vehicle's batteries, resulting in a dramatically more performant aircraft and higher tempo operations than achievable with an off-the-shelf EV charger.

We took on the heart challenge of designing and building the first ever charging system to actively cause the vehicles batteries, resulting in a dramatically more performance aircraft and higher sample operations, then achievable with an off the shelf EV charger.

In November we shared the specifications of the geeks with the industry to move all of us closer to a world where quiet clean aircrafts are commonplace.

And we're actively working with a number of electric aircraft developers to ensure the charges we plan to install without partners around the globe will work for everyone.

We have a lot of hard work ahead of us on certification on manufacturing and preparing for commercial operation, but we have the best team and the right strategic approach and we will continue to deliver as we always have.

Matt: In November, we shared the specifications of the geeks with the industry to move all of us closer to a world where quiet, clean aircraft are commonplace, and we're actively working with a number of electric aircraft developers to ensure the charges we plan to install with our partners around the globe will work for everyone. We have a lot of hard work ahead of us in certification, in manufacturing, and in preparing for commercial operation, but we have the best team and the right strategic approach, and we will continue to deliver as we always have. On that note, I'll hand it off to Matt to discuss our financial results. Thanks, Didier, and good afternoon, everyone.

On that note I'll hand, it off to Matt to discuss our financial results.

Thanks, <unk> and good afternoon, everyone.

We ended 2023 with cash and short term investments totaling slightly over $1 billion with the strongest balance sheet in the industry. We are able to support our leading position in certification and manufacturing while at the same time capitalizing on the opportunities that Joe Ben in DDA highlighted.

New York capacity broadening our base of operations of the department of defense and investing in the early stages of commercialization.

Looking back at the fourth quarter of 2023, we incurred a net loss of $115 million, reflecting a loss from operations of about 128 million offset by interest and other income of $13 million.

Our net loss compares to a net income in the third quarter with the difference explained by the non recurrence of the favorable revaluation of our warrants and earn out shares.

Matt: We ended 2023 with cash and short-term investments totaling slightly over $1 billion. With the strongest balance sheet in the industry, we are able to support our leading position in certification and manufacturing while, at the same time, capitalizing on the opportunities that Jobin and Didier highlighted, expanding our capacity, broadening our base of operations with the Department of Defense, and investing in the early stages of commercialization. Looking back at the fourth quarter of 2023, we incurred a net loss of $115 million, reflecting a loss from operations of about $128 million, offset by interest and other income of $13 million. Our net loss compares to a net income in the third quarter, with the difference explained by the non-recurrence of the favorable revaluation of our warrants and earn out share.

Our operating expenses were largely flat over the quarter, reflecting higher spending on staffing and certification activities offset by a lower accrual for stock based compensation compared with the prior quarter.

In the fourth quarter, we recognized our first revenue as a company totaling $1 million.

This revenue represents consideration received for providing early government directed flight operations conducted in Marina, California with our prototype aircraft.

The associated costs are called out in our operating expenses under flight services, which represent the direct costs associated with supporting these flights.

We've defined this revenue and cost is providing flight services to differentiate it from a long term air taxi service model, which we expect will look very different for.

For example, since we are utilizing a prototype aircraft for these operations, we are not including the aircraft cost in our figures nor do we have other expected cost like landing fees that would eventually be part of a more traditional revenue and cost of goods sold approach.

Adjusted EBITDA, a non-GAAP metric that we reconciled to our net income in our shareholder letter was a loss of $96 million in the fourth quarter.

Matt: Our operating expenses were largely flat over the quarter, reflecting higher spending on staffing and certification activities, offset by a lower accrual for stock-based compensation compared with the prior quarter. In the fourth quarter, we recognized our first revenue as a company, totaling $1 million. This revenue represents consideration received for providing early government-directed flight operations conducted in Marina, California with our prototype aircraft. The associated costs are called out in our operating expenses under flight services, which represent the direct cost associated with supporting these flights. We've defined this revenue and cost as providing flight services to differentiate it from a long-term air taxi service model, which we expect will look very different. For example, since we are utilizing a prototype aircraft for these operations, we are not including the aircraft cost in our revenue and cost of goods sold approach. Nor do we have other expected costs like landing fees that would eventually be part of a more traditional revenue and cost of goods sold approach. Adjusted EBITDA, a non-gap metric that we reconciled to our net income in our shareholder letter, was a loss of $96 million in the fourth quarter.

This was about 3 million higher than the prior quarter, reflecting increased staffing and costs to support certification as mentioned earlier.

Our adjusted EBITDA loss was just under $19 million higher than in the same period last year, reflecting the growth in our organization and expenses to support manufacturing and certification.

Our global staffing with more than 1700 employees continues to grow at a measured pace as we bring on resources in a deliberate and pragmatic way to support our initiatives at just the right time with most of our shelf supporting our company's certification and manufacturing efforts.

In the fourth quarter of 2023, our cash used in operations and spending on property plant and equipment totaled $91 million for.

For the full year, this totalled $344 million, which was below our anticipated spending range, reflecting timing of payments and disciplined choices around our spending in the fourth quarter.

As mentioned at the outset, we ended the year with 1 billion in cash and short term marketable securities.

As we look to the year ahead, we're excited by the significant opportunities that jobin in DDA highlighted as we continue to garner support for bringing quiet emissions free flight to market and to execute on certification and manufacturing milestones.

Turning to our outlook for 2024.

First on the topline.

While we are not providing detailed revenue guidance for next year. It is important to understand the breadth of our flight programs in 2024.

Matt: This was about $3 million higher than the prior quarter, reflecting increased staffing and costs to support certification, as mentioned earlier. Our adjusted EBITDA loss was just under $19 million higher than in the same period last year, reflecting the growth in our organization and expenses to support manufacturing and certification. Our global staffing, with more than 1,700 employees, continues to grow at a measured pace as we bring on resources in a deliberate and pragmatic way to support our initiatives at just the right time, with most of our staff supporting our company's certification and manufacturing efforts. In the fourth quarter of 2023, our cash used in operations and spending on property, plant, and equipment totaled $91 million. For the full year, this totaled $344 million, which was below our anticipated spending range, reflecting timing of payments and disciplined choices around our spending in the fourth quarter.

Our revenue this year will be driven by on base government directed flights that are part of the contract that we signed with the department of defense in April of last year.

We will also fly aircraft on base, and then Marina as part of our internal certification and testing programs.

We do expect to receive payments from the U S government for some portion of these slides as we have in the past, which we account for as Contra R&D expense along with other R&D related deliverables.

With one Jovi aircraft currently at Edwards and our second expected to be delivered this year. Our government directed flights will show up as revenue Similarly to what we recorded in Q4.

However, the green payments for our earliest directed flight operations, which we completed last year were higher than what we were record for Onbase operations, which reflects the progressive maturity of the aircraft and our operations.

Consequently, our fourth quarter 2023 revenue should not be presumed to be annualized into this year. Additionally, our on this flight hours are expected to be lumpy as we find the right cadence with the department of defense with our first on base operations. For example, our aircrafts at Edwards has been undergoing testing in the first quarter as did.

I described earlier, so we do not expect meaningful revenue in this quarter.

Matt: As mentioned at the outset, we ended the year with $1 billion in cash and short-term marketable security. As we look to the year ahead, we are excited by the significant opportunities that Joe Ben and Didier highlighted, as we continue to garner support for bringing quiet, emissions-free flight to market, and to execute on certification and manufacturing milestones. Turning to our Outlook for 2024, first, on the top.

In total for the year, the overall impact to our cash from our first on based operations is expected to be negligible, which is consistent with our plan as.

As we have explained in the past the more timely benefits, we expect to gain from this early engagement include operational learnings, which will pay dividends into the future as we build both our government and commercial service businesses and the opportunity to showcase our aircrafts features and capabilities to a broad array of potential future government customers.

Matt: While we are not providing detailed revenue guidance for next year, it is important to understand the breadth of our flight programs in 2024. Our revenue this year will be driven by on-base, government-directed flights that are part of the contract that we signed with the Department of Defense in April of last year. We will also fly aircraft on base and in the marina as part of our internal certification and testing program. We do expect to receive payments from the U.S. government for some portion of these flights, as we have in the past, which we account for as contra R&D expenses, along with other R&D-related deliverables. With one Joby aircraft currently at Edwards and a second expected to be delivered this year, our government-directed flights will show up as revenue, similarly to what we recorded in Q4. However, the agreed payments for our earliest directed flight operations, which we completed last year, were higher than what we will record for on-base operations, which reflects the progressive maturity of the aircraft and our operations. Consequently, our 4th quarter 2023 revenue should not be presumed to be annualized into this year.

From a spending perspective, we expect growth in our certification manufacturing and go to market activities to result in the use of cash cash equivalents and short term investments of approximately $440 million to $470 million.

This increase compared with 2023 includes continued staffing growth in the production of additional aircraft and parts as DDA discussed earlier.

We also plan to expand our manufacturing facility in Marina, California, breaking ground on a building that more than doubles, our footprint and Marina to support flight training aircraft storage and expanded manufacturing processes.

This is expected to provide sufficient space to more than double our annual production capacity at this site.

Giving us the option to scale up to 25 planes per year to support early market operations, while we bring up our Ohio facility.

I'd like to thank the state of California, who approved a 9.8 million Cal competes grant in November and thank our local community partners, who supported our application. This grant will offset a substantial portion of the building cost.

As we discussed last quarter, we are planning to add manufacturing capacity in Dayton, Ohio, the birthplace of aviation.

We have agreed to the location for our initial manufacturing operations and our days away from closing on the facility purchase.

After interior improvements and the installation of machining equipment. This facility will start building parts to support production and aircraft Assembly in California.

We are grateful to our state and local partners in Dayton, Ohio for their support with incentives totaling up to $325 million.

A portion of these incentives will offset much of our planned investments at this first site starting this year.

Matt: Additionally, our on-base flight hours are expected to be lumpy as we find the right cadence with the Department of Defense for our first on-base operation. For example, our aircraft at Edwards has been undergoing testing in the first quarter, as Didier described earlier, so we do not expect meaningful revenue in this quarter. In total for the year, the overall impact on our cash from our first on-base operations is expected to be negligible, which is consistent with our plan.

With these investments you can expect our capital expenditures to increase significantly relative to the $31 million. We spent in 2023 as we build out our facilities to support aircraft production.

This strategy of supporting initial production and certification from our San Carlos and Marina facilities, and a stepwise systematic scaling in Dayton reflects a rational and measured approach to manufacturing and spending it gives us optimal flexibility to incorporate learnings from the production floor, what we perceived through the certification process.

Matt: As we have explained in the past, the more timely benefits we expect to gain from this early engagement include operational learning, which will pay dividends into the future as we build both our government and commercial service business, and the opportunity to showcase our aircraft's features and capabilities to a broad array of potential future government customers. From a spending perspective, we expect growth in our certification, manufacturing, and go-to-market activities to result in the use of cash, cash equivalents, and short-term investments of approximately $440 to $470 million. This increase, compared with 2023, includes continued staffing growth and the production of additional aircraft and parts, as Didier discussed earlier. We also plan to expand our manufacturing facility in Marina, California, breaking ground on a building that more than doubles our footprint in Marina to support flight training, aircraft storage, and expanded manufacturing processes.

Says.

It also demonstrates the maturity of the organization to prevent over committing investments and resources will be certified build and commercialize this new form of transportation.

In summary, 2023 was a year of notable achievements from progressing certification the rollout of our first production aircraft first flights with a pilot on board first urban exhibitions late in New York City, the delivery of our first aircraft to our customer and our first revenue.

In 2024 is off to a fast start as you've heard both on the certification front with the completion of stage three of our certification process and the signing of a definitive agreement to launch exclusive air taxi services in Dubai.

We are excited by the year ahead, and the opportunities we see as we continue to lead our industry towards commercialization of this revolutionary technology.

This concludes our prepared remarks, operator would you. Please instruct participants on how to ask questions.

Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a 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 for participants using speaker equipment. It may be necessary to pick up your handset before.

Matt: This is expected to provide sufficient space to more than double our annual production capacity at this site, giving us the option to scale up to 25 planes per year to support early market operations while we bring our Ohio facility up. I'd like to thank the state of California, which approved a $9.8 million CalComPEACH grant in November, and thank our local community partners who supported our application. This grant will offset a substantial portion of the building cost.

Jason Dees Darkies.

One moment, please while equal for questions.

Our first question comes from the line of Andre ship Jeopardy, with Cantor Fitzgerald.

Please proceed with your question.

Hey, everyone. Good afternoon, and congratulations on another quarter and although the development.

I guess the first question I was hoping maybe you can expand a little bit further on the announcements to launch the the air taxi in the UAE and particularly the exclusivity behind it does this essentially prevent some of your peers.

Matt: As we discussed last quarter, we are planning to add manufacturing capacity in Dayton, Ohio, the birthplace of aviation. We have agreed on the location for our initial manufacturing operations and are days away from closing on the facility purchase. After interior improvements and the installation of machining equipment, this facility will start building parts to support production and aircraft assembly in California. We are grateful to our state and local partners in Dayton, Ohio, for their support with incentives totaling up to $325 million. A portion of these incentives will offset much of our planned investments at this first site starting this year.

This is Marshall this is mark.

10 times that market at all.

Whether it's the right carrying ore or a direct sales model just trying to better.

To better understand that thank you.

Thank you I'll address this is javan.

Thank you for the question it is was.

Readily.

Exciting to be in Dubai.

And to get to a signed a definitive agreement for our air taxi service there.

This is a seminal agreement it's something we've been working with our with the roads and transport authority of Dubai for many.

Many years now and getting this across the line in a definitive way and including the exclusive six year exclusivity that you you mentioned Ah.

Matt: With these investments, you can expect our capital expenditure to increase significantly relative to the $31 million we spent in 2023 as we build out our facilities to support aircraft production. This strategy of supporting initial production and certification from our San Carlos and Marina facilities and a stepwise systematic scaling in Dayton reflects our rational, measured approach to manufacturing and spending. It gives us optimal flexibility to incorporate learnings from the production floor while we proceed through the certification process. It also demonstrates the maturity of the organization to prevent over-committing investments and resources while we certify, build, and commercialize this new form of transportation. In summary, 2023 was a year of notable achievements, from Progressing Certification, the rollout of our first production aircraft, the first flights with a pilot on board, the first urban exhibition flight in New York City, the delivery of our first aircraft to a customer, and our first revenue.

Is.

Huge moment for the industry and a huge accomplishment for <unk> and for the RTA.

And with regard to the exclusivity are again, we have a six year exclusive to operate the air taxi service in.

In the Emirate so we're.

Very excited about this we're excited to be working on this with the RTA.

With our with our partner on infrastructure and Sky ports and to really showcase the.

Bringing together the three critical pieces that Dubai in the UAE have done which is.

The regulatory the infrastructure and the right aircraft to deliver.

Bull value to customers. So again really really pleased with this then and are grateful for all of our partners and the support here.

Matt: And 2024 is off to a fast start, as you've heard both on the certification front with the completion of stage three of our certification process and the signing of a definitive agreement to launch exclusive air taxi services in Dubai. We are excited by the year ahead and the opportunities we see as we continue to lead our industry towards commercialization of this revolutionary technology. This concludes our prepared remarks. Operator, would you please instruct participants on how to ask questions?

Thanks, Joe then that's a that's very helpful and maybe just as a quick a follow up so congratulations on completing the third stage of the FAA type certification process. Obviously very exciting just wondering can you give us maybe some color what does the time.

Lane for the fourth a step looks like you know, particularly yes, you're not going to do India. The four F. A credit testing just trying to get a sense of what that timeline looks like what are some of the different milestones that we can look forward to this to identify how how that is progressing thank you.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question. You may, if I start to, if you would like to remove your question from the list of questions for participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key.

Hey, Andreas this is DDA good to hear from you.

Good question I feel like this is a good time to talk a bit about what F E.

Operator: One moment, please, while we poll for questions. Our first question comes from the line of Andre Sheppard with Cantor Fitzgerald. Please proceed with your question. Hey everyone, good afternoon, and congratulations on another quarter and all of the developments. I guess the first question was, I'm hoping maybe you can expand a little bit further on the announcement to launch AirTaxi in the UAE and, particularly, the exclusivity behind it. Does this essentially prevent some of your peers from entering this market at all? Whether it's via right sharing or direct sales models; I'm just trying to better understand that.

Conformity NFA for credit testing really is the.

F N. It really sets the standards and define exactly what that is at the component level at the system level and at the aircraft level, which is really how you.

Half the progress towards your certification in stage four.

Organization I'm really excited about.

What the team has been able to deliver last year right with 30 tests completed at the component level, having gone through exactly the process as outlined by the FAA. It sets us up very well this year to expand across all of the base of the pyramid and execute more of those on hundreds of others.

Jovan: Thank you. Thank you, Andres. This is Jovan, and thank you for the question.

Yes.

Jovan: It was incredibly exciting to be in Dubai and to get to sign the definitive agreement for our air taxi service there. This is a seminal agreement; it's something we've been working on with the Roads and Transport Authority of Dubai for many years now, and getting this across the line in a definitive way, and including the six-year exclusivity that you mentioned, is a huge achievement, a huge moment for the industry, and a huge accomplishment for Joby and for the RTA. And with regard to the exclusivity, again, we have a six-year exclusivity to operate the in-air taxi service in the Emirates.

And then progressing from there into the system just as we just discussed we will be starting with the tail system here really excited about that and then moving into the airplane.

Maybe a quick pause on that also there are three essential elements that define.

What it takes to want to get an FAA conformity and to be able to also get credits for the testing from the FAA. One you have to have the design mature and released to the FAA. Because this is what they're going to use as the basis for your showing compliance I feel we've demonstrated that.

Jovan: So we're very excited about this. We're excited to be working on this with the RTA, with our partner for infrastructure, Skyports, and to really showcase the bringing together of the three critical pieces that Dubai and the UAE have done, which is the regulatory, the infrastructure, and the right aircraft to deliver meaningful value to customers. So again, really, really pleased with this and grateful for all of our partners and the support here. Thanks, Jovan. That's very helpful. And maybe just as a quick follow-up.

Really well last year, particularly with those components help desk and are working towards that this year.

The beginning of this year with the sale of test.

Two you have to demonstrate the ability to build or manufactured to these designs on conforming lines and we've done just that last year with four conforming lines now completed and are working expediency on any additional conforming lines that feed into the airplane. So another check in and a big.

Operator: So, you know, congratulations on completing the third stage of the FAA-type certification process. Obviously, very exciting. Just wondering, could you give us, maybe, some color?

One for the team on that one in three.

Possibly most importantly.

You do a poor credit desk and for code conformity on any area in the aircraft you have to have gone through stages, one stages to stage three and then four for that specific test, but if you have not done that there is no point in having that discussion with the FAA and with the team now at the point, where we close on all of the state.

Operator: What does the timeline for the fourth step look like? You know, particularly as you're now going to be doing the four FAA credit testing, just trying to get a sense of what that timeline looks like. What are some of the different milestones that we can look for just to identify how that is progressing? Thank you. Andres, this is D. D. A.

Didier: Good to hear from you. A good question. I feel like this is a good time to talk a bit about what FAA conformity and FAA for-credit testing really is. FAA really sets the standards and defines exactly what that is at the component level, at the system level, and at the aircraft level, which is really how you have to progress towards your certification and stage four organization. I'm really excited about it. Well, the team was able to deliver last year, right, with 30 tests completed at the component level, having gone through exactly the process as outlined by the FAA. It sets us very well this year to expand across all of the base of the pyramid and execute more of those on hundreds of other tests. And then progressing from there into the system, just as we just discussed, we will be starting with the tail system here, really excited about that, and then moving into the airplane. Maybe a quick pause on that also.

Three and are working in submitting touch panels on stage four is exactly where we want to be really excited about really this year is what youre going to see all the progress and focus on that on that stage.

Thanks, <unk>, that's very comprehensive I appreciate it and congratulations again on the quarter I'll pass it on thank you.

Thank you. Our next question comes from the line of Christine.

Morgan Stanley. Please proceed with your question.

Hey, good afternoon, Japan today, Matt and Teresa you know and congratulations also on completing a third of the five stages at the FAA type certification process and being the first developer of EV told to accomplish this.

You know maybe one follow up question from you know the question already asked on the stage four and stage five certification as we look forward did you is there anything that would surprise you on the stage four and stage five and the reason for that is you know look at Gulfstream right now is in its third year of the stage.

Four and five certification for the G 700, you know, especially with the change and the requirement where they need a line by line validation of the software for the fly by wire. That's been an obstacle is there any read across here for you and how confident are you guys in a 2025 entry into service.

Didier: There are three essential elements that define what it takes one to get an FAA conformity and to be able to also get credit for the testing from the FAA. First, you have to have the design mature and released to the FAA because this is what they're going to use as the basis for you showing compliance. And I feel we've demonstrated that really well last year, particularly with those component level tests, and are working towards that this year, the beginning of this year with the tail test. Two, you have to demonstrate the ability to build or manufacture to these designs on conforming lines. And we did just that last year with four conforming lines now completed and are working expediently on adding additional conforming lines that feed into the airplane. So another check and a big win for the team on that one, possibly most importantly. To do a for-credit test and for-credit conformity on any area in the aircraft, you have to have gone through Stages 1, Stages 2, Stages 3, and then 4 for that specific test plan.

Yeah. Thanks, Kristine I appreciate the question here.

I feel really good about where we are right now, particularly because you know you talked about years. This has been multiple years in the making getting to the point, where our stage. Three is complete we have been in lockstep with the FAA for a good amount of time, where we're talking about all of the details of the design of the surplus and the implementation.

I think that gives me a lot of confidence in us moving into stage for being in a very good position you talked about fly by wire by way of example, one of the most.

Most critical and important area of sort plans is exactly all the flight controls and the fly by wire and we have spent quite a bit of time with the FAA on that.

Didier: If you have not done that, there's no point in having that discussion with the FAA. And with the team now at the point where we close on all of Stage 3 and are working and submitting test plans on Stage 4, this is exactly where we want to be. Really excited about this year is when you're going to see all the progress and focus on that on that stage. Thanks, Didier.

Leading to softer.

I really want to remind and reiterate.

<unk> is not a software verification, particularly is not new to <unk>, our avionics acquisition team. That's in Costa Rica has been doing this for many many many years and they have demonstrated over the past few years that they can deliver on all expectations, both for Jovi, and external customers and I. So I feel like we're well.

Didier: That's very comprehensive. I appreciate it, and congratulations again on the quarter. I'll pass it on.

Operator: Thank you. Thank you. Our next question comes from the line of Kristine Liwag with Morgan Stanley. Please proceed with your question. Hey, good afternoon, Joe, Ben, Didier, Matt, and Teresa. And congratulations on completing the third of the five stages of the FAA-type certification process and being the first developer of eVTOL to accomplish this. So, you know, maybe one follow-up question from the question you already asked about the Stage 4 and Stage 5 certifications as we look forward. Didier, is there anything that, you know, would surprise you on Stage 4 and Stage 5? And the reason for that is, you know, look, Gulfstream right now is in the third year of the Stage 4 and 5 certification for the G700, especially with the change in the requirement where they need a line-by-line validation of the software for the fly-by-wire. That's been an obstacle for me.

Position to walk through the software line.

Oh by the way our software.

Our software. So plan has also been accepted so we hit it both on the software side as well as on the functional side.

Great and then also let's look at the past few years you guys have a done a lot of partnerships with different countries, including our most recent exclusive deal. But then you've also got partnerships in South Korea and Japan.

Can you guys talk about a little bit more why does it seem to be more attention on EV told across the different countries and you know as you see these exclusive partnerships with one country could you see more of these rollout, especially as you get closer to certification.

Thanks, Christine so thank you for highlighting.

The incredible interest that we have from many international markets.

Didier: Is there any read-across here for you, and how confident are you guys in 2025 entering the service? Yeah, thanks, Kristine. I appreciate the question here. Look, I feel really good about where we are right now, particularly because, you know, you talked about years. This has been multiple years in the making getting to the point where stage three is complete. We have been in lockstep with the FAA for a good amount of time, talking about all the details of the design of the SIR plan and its implementation. I think that gives me a lot of confidence in us moving into stage four being in a very good position. You talked about fly-by-wire. By way of example, one of the most critical and important areas SIR plans is exactly our flight controls and fly-by-wire. And we have spent quite a bit of time with the FAA on that. Relating to software, I really want to remind and reiterate, you know, software is not software verification, and particularly it is not new to Joby.

I think we are.

Continuing to see significant inbound here, but we're going to be very thoughtful and measured in the number of additional markets that we take on.

And really focus as much as we can on the incredible opportunities that we have.

<unk> already committed to and we.

We are very very grateful to our.

Our partners as you mentioned in Japan and Korea.

In the UAE.

And then of course, our incredible partnerships here in the U S. A.

We we may choose a select number of additional international markets, but again, we're going to.

I'm really focused on the execution.

Great and if I could squeeze one last question you know, Matt the $440 million to $470 million of free cash flow I'm a usage for 'twenty 'twenty four you know at the end of that what would be the capacity on your low rate low volume manufacturing plant in Marina after that spend and.

Didier: Our avionics acquisition team in Costa Rica has been doing this for many, many, many years. And they have demonstrated over the past few years that they can deliver on all expectations, both for Joby and external customers. And so I feel like we're well positioned to walk through the software line. And oh, by the way, our software, I guess, our software server plan has also been accepted. So we hit it both on the software side as well as on the functional side. Great. And then also, look at the past few years. You guys have done a lot of partnerships with different countries, including your most recent exclusive deal. But then you've also got partnerships in South Korea and Japan. Can you guys talk about this a little bit more? Why does this seem to be more attention on eVTOLs across different countries?

And you know if you wanted to expand capacity beyond what you have in place like how much could that incrementally cautious.

Yeah, I am Christine so the way, we think about the Marina. It says Denise mentioned the end of this year will be running at a rate of one aircraft per month. So.

That would be 12 aircraft, obviously in terms of capacity.

We're working on ramping that up over time as our expansion comes onstream that expansion would be online somewhere in 25, most likely.

Based off kind of a present calculations and that gives us the option to ramp up to 25.

So we feel that's a good starting point as we lay the groundwork for international and domestic operations for go to market and then obviously working on further expansion from there.

Great. Thank you very much guy.

Thank you.

Thank you.

Jovan: And as you see these exclusive partnerships with one country, could you see more of these rollouts, especially as you get closer to certification? Thanks, Kristine. So, thank you for highlighting the incredible interest that we have from many international markets. I think we are, you know, continuing to see significant inbound here, but we're going to be very thoughtful and measured in the number of additional markets that we take on and really focus as much as we can on the incredible opportunities that we have already committed to. And we are very, very grateful to our partners, as you mentioned, in Japan, in Korea, in the UAE, and then, of course, our incredible partnerships here in the U.S. We may choose a select number of additional international markets, but again, really focus on the execution.

Our next question come from the line.

With Raymond James. Please proceed with your question.

Hey, good afternoon, everyone.

Just ask is it.

Another certification question here, just you know we havent heard much on the key one side and and in Kansas.

When do you think that they might accept that and just a clarification on you know based on Dts commenced or are there items into stage two certification plans that are yeah.

No placeholders are dependent on issue papers that are not yet finalized.

Yeah. Good question, So we love certification questions by the way.

So we've been.

In constant touch with the FAA relating to the G. One our understanding is the G. One releases is coming up soon but what's really important is that the FAA has and we're really grateful for that has been.

Jovan: And if I could squeeze one last question, you know, Matt, the $440 to $470 million free cash flow usage for 2024, you know, at the end of that, what would be the capacity of your low-volume manufacturing plant in Marina after that spend? And, you know, if you wanted to expand capacity beyond what you have in place, like, how much could that incrementally cost? Hi Kristine.

Keeping us up to up to date on all the expected changes in the G. One and so we've been in constant touch on are aware of the content in there and what we can see from that is that we expect zero design changes to our aircraft based on the G. One change was coming we feel really really confident about that based on what we've been able to see that's really important.

Then the a potential area, where there may be some applications are really associated with.

Matt: So, the way we think about the marina, as Didier mentioned, at the end of this year, we'll be running at a rate of one aircraft per month. So, that would be 12 aircraft, obviously, in terms of capacity. We're working on ramping that up over time as our expansion comes on stream. That expansion would be online somewhere in 25, most likely, based on our present calculations, and that gives us the option to ramp up to 25. So, we feel that it's a good starting point as we lay the groundwork for international and domestic operations for go-to-market, and then, obviously, working on further expansions from there.

The documentation rework in the compliance aspect of that but none of these is expected to impact us, particularly this year as we were focusing again on stage. Four so were fully focused on stage for we know there are no design changes and then we're ready to go when the G. One shows up.

Got it and then just you also had some really helpful information on kind of the numbers for credit testing, that's being done and just could you put that in context, you know how many tests I think Dave mentioned hundreds of tests and this year I'm just trying to put that 30 into.

Kristine Tan Liwag: Thank you very much, guys. Thank you. Our next question comes from the line of Savanthi Syth with Raymond James. Please proceed with your question. Hey, good afternoon, everyone.

Context, that's kind of what needs to get done.

Yeah, we haven't really sure of the exact numbers of that I think the more important part of this the relevance of the tests that we talked about is they were pathfinders for additional tests are those additional tests that are coming so it's really about we've built the knowledge base right. We know what the process of conforming parts would know what the.

Operator: If I might just ask another certification question here, just, you know, we haven't heard much on the G1 side, and in terms of when do you think the FAA might accept that? And just a clarification on, you know, based on DDS Command, so are there items in the Stage 3 certification plans that are, you know, still placeholders or dependent on issue papers that are not yet finalized? Yeah, good question.

Assess of submitting taps plants and getting those Susquehanna is accepted and we know how to execute on these.

The rest as it relates to component is really about now accelerating so we can move through this faster than we did last year.

Thank you.

Thank you Sylvia.

Thank you. Our next question comes from Brian Hoffman.

Didier: So, and we love certification questions, by the way. So, we've been in constant touch with the FAA relating to the G1. Our understanding is that the G1 release is coming up soon, but what's really important is that the FAA has, and we're really grateful for that, has been keeping us up to date on all the expected changes in the G1. And so, we've been in constant contact and are aware of the content in there.

Boston Lager with Canaccord Genuity. Please proceed with your question.

Hi, Good afternoon. This is my first question here.

Uh huh.

How do you currently feel are in partnership with Toyota about the scalability and the manufacturer ability of the of the pouch cells as you ramp up production.

Didier: And what we can say from there is that we expect zero design changes to our aircraft based on the G1 changes coming. We feel really, really confident about that based on what we've been able to see. That's really important.

Thanks Austin.

We are we feel very good about what we've been able to accomplish both from a.

Most importantly from a safety standpoint, but also from a cycle life.

Didier: The potential areas where there may be some applications are really associated with the documentation rework and the compliance aspect of that, but none of these is expected to impact us, particularly this year, as we're focusing again on Stage 4. We know there are no design changes, and then we're ready to go when the G1 shows up. And then you also had some really helpful information on the number of for-credit testing that's being done. Just, could you put that in context of, you know, how many tests? I think, Didier, you mentioned hundreds of tests this year. Just trying to put that 30 into context of kind of what needs to get done. Yeah, we haven't really shared the exact numbers of tests.

Standpoint on and on and performance standpoint on our.

On a battery modules, we've done extensive testing over a.

Many years and.

Just incredibly pleased with the performance across all of these dimensions.

Great and just a follow up you mentioned you don't expect any major design changes on the current iteration of the aircraft and I understand in the last quarter, you've done 30 plus four.

Poor credit component level past, but do you expect that the current iteration of the aircraft is has a sufficient weight to really make sure that it can be certified under that Howard was certification.

Didier: I think the more important part of this, the relevance of the tests that we talked about, is that they were pathfinders for additional tests, those additional tests that are coming. So, it's really about, we've built the knowledge base, right? We know what the process of conforming parts is, we know what the process of submitting test plans and getting those test plans accepted are, and we know how to execute on these.

Yeah. So the the G one and the associated a certain basis as we have seen it with the FAA continues to be something we feel very confident about like I said, we've seen all the expected changes coming at least those are the ones that the FAA has shared with us which we understand.

Comprehensive and we don't see any impact on our design as it relates to the Ito configuration and power are just a requirement.

Didier: The rest of the release, the component is really about now accelerating so we can move through this faster than we did last year. Understand? Thank you. Thank you, Shelby.

<unk>.

Excellent thanks for the insights.

Austin Weller: Thank you. Our next question comes from Austin Weller with Anacorta Annuity. Please proceed with your question.

Thank you art.

Question comes from the line of Bill Peterson with Jpmorgan.

She was your question.

Hi, good afternoon, and nice job on the quarterly execution.

JoBen: Just my first question here: how do you currently feel, in partnership with Toyota, about the scalability and the manufacturability of the pouch sales as you ramp up production? Thanks Austin. We feel very good about what we've been able to accomplish both from a safety standpoint and from a cycle life standpoint and performance standpoint on our battery modules. We've done extensive testing over many years, and I'm just incredibly pleased with the performance across all of these dimensions. And just to follow up, you mentioned you don't expect any major design changes on the current iteration of the aircraft. And I understand in the last quarter you did 30 plus four credit component level tasks. But do you expect that the current iteration of the aircraft will have a sufficient weight to really make sure that it can be certified under that Powered Web certification?

Like I tried it.

Getting a little more granular on the commercial operations I guess 2045 is pretty wide. When are you thinking closer to the start of the year or the end of the year and I guess, what would make it closer to the start versus the end.

What's in your control, what's not you know it's dependent on the FAA or others.

Yes.

With that in mind would that you said earlier I think that would be maybe lead you to start in Dubai, how did the U S.

What it could look like.

Yeah. Thank you so we are.

Our very pleased as we as we talked about with.

The partnership in Dubai, and again, that's across the three critical dimensions.

First the regulatory secondly, infrastructure and third having the right aircraft on that.

Specifically on your question in terms of the timing that a lot of that comes down to the regulatory piece and we did.

JoBen: Yeah, so the G1 and the associated CERT basis, as we have seen it with the FAA, continues to be something we feel very confident about. Like I said, we've seen all the expected changes coming, at least those that the FAA has shared with us, which we understand are comprehensive. And we don't see any impact on our design as it relates to the eVTOL configuration and the power lift requirement.

The approach that we're taking is leveraging all of the incredible work that we've done with the FAA and and working closely with the GTA.

To.

Chip.

To ensure that that all of the work there.

There happens in an expedient way and so again.

We.

We're grateful for the partnership with the GTA and they're.

JoBen: Excellent. Thanks for the insights. Thank you. Our next question comes from the line of Bill Peterson with J.P. Morgan. Please proceed with your question.

They're working very closely with our team and we'll continue to over the months to come with.

With respect to.

Bill Peterson: Hi, good afternoon, and nice job on the quarterly execution. I'd like to try to get a little more granular on the commercial operations. I guess, you know, 2025 is a pretty wide window. Are you thinking closer to the start of the year or the end of the year? And, I guess, what would make it closer to the start versus the end?

Specific timing within 2025, we're not providing that at this time.

Okay, and just kind of wanted to follow up on earlier question on run rate. So you exit this year at 12.

In 2025 after the expansion you'll be somewhere between 12, and 12 and twenty-five maybe exiting next year with the ability to make 25 aircrafts I.

I guess.

JoBen: You know, what's in your control, what's not? You know, what's dependent on the FAA or others? And I guess, you know, with that in mind, would that, you said earlier, I think, you know, that would maybe lead you to start in Dubai ahead of the U.S.? Is that what it could look like? Yeah, thank you. So, we are very pleased, as we talked about, with the partnership in Dubai. And again, that's across the three critical dimensions.

How should we think about the run rate and maybe what is one of the Dayton ready to ramp I'm, just trying to get a sense for as we try to build your models out a few years. What are you I guess, what you could achieve commercially over the next call. It two to three four years.

And so.

So as you think about Dana really refer you back to how we talked about it last quarter right. Now we're really focused on getting our all lines are certified and up and running getting the manufacturing processes dialed in because scaling.

JoBen: First, the regulatory piece, second, the infrastructure, and third, having the right aircraft. Specifically, on your question, in terms of the timing, a lot of that comes down to the regulatory piece. And the approach that we're taking is leveraging all the incredible work that we've done with the FAA and working closely with the GCA to ensure that all of the work there happens in an expedient way. And so again, we are grateful for the partnership with the GCA and they're working very closely with our team and will continue to do so in the months to come. With respect to specific timing within 2025, we're not providing that at this time. Okay, and I just kind of want to follow up on the earlier question on run rate. So you exit this year at 12, and in 2025, after the expansion, you'll be somewhere between 12 and 25.

Fisher process would be the worst thing a company could do and so we're really focused on that 12 and twenty-five but getting ready as you said for a measured approach to Ohio, starting small as you've seen us talk about before doing this in a very methodical way starting small in this case with a small manufacturing operation.

Which gives us that kernel of employees building out the culture that allows us to scale and then followed by a methodical ramp up to eventually 500 aircraft.

Overtime, but it will be over time in a more.

Gradual approach to scaling just because that that's the right way to scale of manufacturing.

Plant and it's the most prudent way to do it.

Yeah, It makes sense.

I missed it but as we think about your use of cash this year.

Matt: Maybe exiting next year with the ability to make 25 aircraft. I guess how should we think about the run rate and maybe when is Dayton ready to ramp up? Just try to get a sense for as we try to build our models out a few years what, uh, I guess what you could achieve commercially over the next call it two to three or four years. Hi Bill.

Can you give us a little bit more granularity on capex versus opex.

You said substantially up I guess, what does that mean.

How much government incentives can offset and I guess, how much of the opex growth.

As I guess <unk>.

Matt: So, as you think about Dayton, I really want you to go back to how we talked about it last quarter. Right now, we're really focused on getting our lines certified, up and running, and getting manufacturing processes dialed in, because scaling an inefficient process would be the worst thing a company could do. And so, we're really focused on that 12 and 25, but getting ready, as you said, for a measured approach to Ohio, starting small, as you've seen us talk about before, doing this in a very methodical way. Starting small, in this case, with a small manufacturing operation, which gives us that kernel of employees building out the culture that allows us to scale, and then followed by a methodical ramp up to eventually 500 aircraft over time. But it will be over time and a more gradual approach to scaling, just because that's the right way to scale a manufacturing plant and it's the most prudent way to do it. Yeah, it makes sense.

For the go to market the first commercial aircraft additional software engineers out development.

Hiring just basically higher to support the commercialization efforts trying to get a sense versus.

Certification and manufacturing spend.

Yeah. So as we think about this year, we spent about $30 million in Capex I would expect us to roughly double next year and that's really driven by both building up the facility here in California, which will take more cross 'twenty four 'twenty five but also building out the equipment build.

The facility in Ohio, and so that's a big multi step function in our capex the rest of it largely is opex.

And that's going to be growing primarily manufacturing and certification folks because that is the bulk of our organization.

We'll start early early operations will be sending people down to Dubai to start there and so we'll have some growth there, but the bulk of our operational growth will be around certification and manufacturing of aircraft and buying parts like those things are all in there right. So.

Just to be clear you said next year 60 million that you mean this year 2020.

Bill Peterson: And I may have missed it, but as we think about your use of cash this year, can you give us a little bit more granularity on CapEx versus OpEx? You said it was substantially higher, but I guess, you know, what does that mean? How much government incentives can offset?

Yeah I apologize.

I I signed my checks with the right year, but I still have to think about it twice.

Okay. Thank you.

Thank you.

Okay.

Thank you Anna.

As a reminder, if anyone has any questions you May press star and one of your key pads has joined in question.

Matt: And I guess how much of the OpEx growth is, I guess, Slated for the go-to market. The first commercial aircraft, additional software engineers, app development, hiring, just basically hiring to support the commercialization efforts, trying to get a sense versus, you know, certification and manufacturing. Yeah. So, as we think about this year, we spent about $30 million on CapEx. I would expect that to roughly double next year.

Our next question right.

Our next question comes from the line of Edison Chu with Deutsche Bank. Please proceed with your question.

Hey, Thanks for taking our questions one to follow up on the design topic from earlier.

Leaving the latest.

TSB reports you guys were talking about 4200 maximum takeoff weight, obviously the production vehicle 300 per your disclosure.

Matt: And that's really driven by both building out the facility here in California, which will take – will cross 24-25, but also building out the equipment, and building out the facility in Ohio. And so, that's a big, lumpy step function in our CapEx. The rest of it largely is OpEx, and that's going to be growing primarily manufacturing and certification folks because that is the bulk of our organization. We'll start early operations. You know, we'll be sending people down to Dubai to start there. And so, we'll have some growth there, but the bulk of our operational growth will be around certification and manufacturing of our aircraft and buying parts. Like, those things are all in there, right?

What drove that increase.

Also on the latest aircrafts in production or we exited from 300 already.

Thanks, Austin, Yeah. So.

We are the 5300 is the weight of.

The aircrafts that were taking through certification and we're we're very pleased with the performance that we're achieving across all the different systems on the aircraft.

Expect to that.

It's steady I talked about the designs to to stick where they are.

Matt: So, just to be clear, you said next year $60 million, but you meant this year, 2020. I signed my checks with the right year, but I still have to think about it twice.

In terms of what would the drivers what were the drivers of the increase in weight I mean anything you can share on that.

No.

Again.

Edison Yu: Okay, thank you. Thank you. Thank you. And as a reminder, if anyone has any questions, you may press star one on your telephone keypad to join the question and answer queue. Our next question comes from the line of Edison Yu with Deutsche Bank. Thanks for taking our questions. I want to follow up on the design topic from earlier. I believe in the latest NTSB report that you guys are talking about 4200 maximum takeoff weight. Obviously, the production vehicle is 5300 units, per your disclosure. Can you give us a sense of what drove that increase? And also on the latest aircraft in production; are we at 5300 already?

200 pound vehicle was an aircraft that we are designed in 2017 and 2018 and began flying in early 2019 yet.

Yet.

Has shown incredible performance across all the different dimensions again, we have the the.

The most performing aircraft and are in the market with a.

Or a development with a 100 mile range 200 mile an hour.

Top speed and Oh, a really incredible acoustic.

Signature, which.

We think is something that is really underappreciated.

And something that we focused on since the beginning and which I don't think others have been able to.

Austin: Thanks, Austin. Yeah, so 5300 is the weight of the aircraft that we're taking through certification, and we're, we're very pleased with the performance that we're achieving across all the different systems on the aircraft and expect, as Didier talked about, the designs to stick where they are. In terms of what were the drivers of the increase in weight, anything you can share on that?

Achieve we're prioritizing in the right way and we think this is critical to delivering operations to our.

The markets, where our customers want to go.

Thank you.

Our last question for today comes from Savi <unk> with Raymond James.

Proceed with your question.

Hey, thanks for the follow up.

Just kind of curious you know you have announced several infrastructure partnerships and are included in this kind of Dubai operation you are still working closely with the Delta could you talk a little bit about how you're thinking about your kind of initial commercialization plan.

JoBen: No, it's again, the 4,200-pound vehicle was an aircraft that we designed in 2017 and 2018 and began flying in early 2019. It has shown incredible performance across all the different dimensions. Again, we have the most performant aircraft in the market with, or in development, with a 100-mile range, a 200-mile-an-hour top speed, and a really incredible acoustic signature, which we think is something that's really underappreciated and something that we've focused on since the beginning, and which I don't think others have been able to achieve or prioritize in the right way. And we think this is Thank you. Our last question for today comes from Savi Syth with Raymond James. Please proceed with your questions. Hey, thanks for the follow-up.

How all of this kind of fits within within that cannot launch plan.

Yeah. Thank you salvi.

On the infrastructure part this is incredibly important piece of the business and an area, where we're very very grateful for our partnership with Delta and the investments they've made into the airports in Laguardia JFK in L. A X and to be able to build best in class infrastructure closer.

Coupled to those terminals and to deliver seamless customer experiences that they get off delta flights and on Adobe flights.

And then also delivering incredible customer experiences with our with our partner Sky ports in Dubai.

Savanthi Syth: I'm just kind of curious, you know; you have announced several infrastructure partnerships, including this kind of Dubai operation, and you are working closely with Delta. Could you talk a little bit about how you're thinking about your kind of initial commercialization plan and how all of this kind of fits within that kind of launch plan? Yeah, thank you, Salvi. On the infrastructure part, this is an incredibly important piece of the business and an area where we're very, very grateful for our partnership with Delta and the investments they've made into the airports at LaGuardia, JFK, and LAX, and to be able to build best-in-class infrastructure closely coupled to those terminals and to deliver seamless customer experiences as they get off of Delta flights and onto Joby flights.

And then as we build out our infrastructure opportunities in end markets around the world. This is a.

Incredible opportunity.

To again to deliver the customer experience that we're.

We're looking for and so as we as we go forward infrastructure is going to be a.

More and more significant part of the conversation.

I appreciate that the infrastructure is there kind of a lump or pulling the tens but.

Is it are you going to kind of wait to see how things progressed to figure out where you launch operations. First is is that my understanding or I'm, just trying to figure out how this all kind of comes together because you perhaps kind of charging.

Charging them in there at the airport.

Not tied to the Delta operation.

Yeah, I think as you saw we rolled out.

Savanthi Syth: And then also delivering incredible customer experiences with our partner Skyports in Dubai. And then as we build out infrastructure opportunities in markets around the world, this is an incredible opportunity to, again, deliver the customer experience that we're looking for. And so, as we go forward, infrastructure is going to be a, you know, a more and more significant part of the conversation. I appreciate that infrastructure is kind of the long pole in the tent, but are you going to kind of wait to see how things progress to figure out where you launch operations first? Is that my understanding?

A bunch of different partnerships and are in are in.

In airports in different markets in the U S and.

So you know rolling up the infrastructure and the engagement there and the momentum we're seeing there is just absolutely fantastic.

Thank you.

I would now like to turn the conference back over to Jacky Aviation CEO Jobin bear fruit for closing comments.

Yes.

Yeah. Thank you so much I think one of the things Youll I Hope you took away from the call today was that this is more tangible than it's ever been before.

We're in and our team is incredibly well positioned to capitalize.

On on this amazing market.

JoBen: Or I'm just trying to figure out how this all kind of comes together, because you also have this kind of charging in various airports, not tied to the Delta operation. Yeah, I think, as you saw, we rolled out a bunch of different partnerships in airports in different markets in the U.S. So, you know, rolling out that infrastructure and the engagement there and the momentum we're seeing there is just absolutely fantastic. Thank you. I would now like to turn the conference back over to Joby Aviation CEO Joe Ben-Bedford for a closed room comment. Yeah, thank you so much. I think one of the things you'll, I hope you took away from the call today was that this is more tangible than it's ever been before. We're, and our team is incredibly well positioned to capitalize on this amazing market. I think you also heard that our team is consistently knocking it out of the park on certification, on manufacturing, and on commercialization.

I think you also heard that our team is consistently knocking it out of the park on certification on manufacturing and on the commercialization.

And it's just I I have to say that I feel incredibly privileged to.

Have the opportunity to work with the Amazing partners, we have around the world and with the.

Just spectacular team here at Jabil aviation that I'd like to express my sincere gratitude for delivering quarter after quarter.

Thank you all so much for joining us today and I hope you have a fantastic afternoon or evening.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

[music].

Joe Ben-Bedford: And it's just, I have to say that I feel incredibly privileged to have the opportunity to work with the amazing partners we have around the world and with the, and the spectacular team here at Joby Aviation. I'd like to express my sincere gratitude for delivering quarter after quarter. Thank you all so much for joining us today, and I hope you have a fantastic afternoon or evening. This concludes today's teleconference. You may disconnect your lines at this time.

Operator: Thank you for your participation...... and others.

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