Q1 2024 Joby Aviation Inc Earnings Call

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Greetings and welcome to Joe be Aviation's first quarter 2024 conference call and webcast. At this time all participants are in a listen only mode. If every once you require operator assistance during the conference. Please press star zero on your telephone keypad.

Teresa Thuruthiyil: Greetings and welcome to Joby Aviation's first quarter 2024 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 host, Teresa Thuruthiyil, Joby's Head of Investor Relations. Please go ahead.

As a reminder, this conference is being recorded.

Speaker Change: It's now my pleasure to introduce your host Teresa through Rutile Jobin as head of Investor Relations. Please go ahead.

Teresa Thuruthiyil: Thank you. Good afternoon and evening, everyone. Welcome to the Joby Aviation conference call to discuss the company's financial results for the first quarter of 2024. We announced our results earlier today, both our Q1 2024 shareholder letter and a webcast of this call are available online at the investor relations page of our website at ir.jobeaviation.com. Our discussion today will include statements regarding future events and financial performance, as well as statements of belief, expectation, and intent.

Teresa Thuruthiyil: Thank you good afternoon and evening, everyone welcome to the job the Aviation conference call to discuss the company's financial results for the first quarter of 'twenty 'twenty four.

Speaker Change: We announced our results earlier today, both our Q1 'twenty 'twenty four shareholder letter and a webcast of this call are available online at the Investor Relations page of our website at IR dot there'll be aviation dotcom.

Teresa Thuruthiyil: These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. For a more detailed discussion of these risks and uncertainties, please refer to our filings with the SEC and the Safe Harbor disclaimer contained in today's shareholder letter. The forward-looking statements included in this call are made only as of the date of this call and the company does not assume any obligation to update or revise them.

Teresa Thuruthiyil: Our discussion today will include statements regarding future events and financial performance as well as statements of belief expectation and intent. These.

Teresa Thuruthiyil: 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.

Teresa Thuruthiyil: 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.

Teresa Thuruthiyil: 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.

Teresa Thuruthiyil: Please note that today's call will include results reported on a non-GAAP basis. Our Q1 2024 shareholder letter provides a reconciliation between GAAP and non-GAAP measures. On the call today, we have JoeBen Bevirt, Founder and Chief Executive Officer. Paul Sciarra, Executive Chairman. Didier Papadopoulos, President of Aircraft OEM, Matt Field, Chief Financial Officer, and also joining us today is Bonnie Simme, President of Operations. After management's prepared remarks, we will open the call for questions. And with all of that said, I'll turn the call over to JoeBen.

Teresa Thuruthiyil: Please note that today's call will include results reported on a non-GAAP basis. Our Q1 2024 shareholder letter provides a reconciliation between GAAP and non-GAAP measures.

Teresa Thuruthiyil: On the call today, we have Joe been beverage founder and chief.

Teresa Thuruthiyil: <unk> Executive officer.

Joe: Well she are our executive chairman.

Joe: DDA Papadopoulos president of aircraft OEM, Matfield Chief Financial Officer.

Joe: Also joining us today as Bonny Simi president of operations.

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

Joe: And with all of that said I'll turn the call over to Joe Bennett.

JoeBen Bevirt: Thank you, Teresa, and thank you all for joining us this afternoon. I'm pleased to say that we had a remarkable first quarter of 2024, packed with sector leading progress across all three of our focus areas, certification, manufacturing and commercialization, keeping us on track to start commercial operations next year. I hope those who follow our results are starting to see a pattern. The Joby team and the Joby approach continue to deliver quarter over quarter, year over year with dependable results and credible timelines.

JoeBen Bevirt: Thank you Teresa and thank you all for joining US. This afternoon I'm pleased to say that we had a remarkable first quarter of 2024 pack with sector, leading progress across all three of our focus areas certification manufacturing and commercialization keeping us on track to start commercial operations next year.

Joe: I hope those who follow our results are starting to see a pattern that <unk> team and Adobe approach.

Joe: To deliver quarter over quarter year over year with dependable results incredible timeline.

JoeBen Bevirt: Didier is going to unpack our progress on certification in a minute, but I'd like to draw particular attention to the fact that we've started submitting our first system level test plan. These are a key part of the fourth stage of the type certification process and demonstrate the maturity of our certification program. Joby was the first air taxi company to complete the first, The second and the third stages of the FAA-type certification process, and this quarter we became the first and so far only air taxi company to have our final airworthiness criteria or G1 certification basis published in the Federal Register.

Joe: Did he is going to unpack our progress on certification in a minute, but I.

Joe: I'd like to drop particular attention to the fact that we started submitting our first system level test platform.

Joe: These are a key part of the fourth stage of the type certification process and demonstrate the maturity of our certification program.

Joe: Toby was the first air taxi company to complete the first the.

Joe: The second and the third stages.

Joe: FAA type certification process and this quarter, we became the first and so far only air taxi company to have a final air worthiness criteria or do you want certification basis published in the Federal Register.

JoeBen Bevirt: The progress we've made, particularly in completing Stage 3, is central to allowing us to proceed with full confidence in our design and approach. Supporting our certification program is a tremendous amount of testing. And thousands of individual parts, subsystems, and full assemblies are put through their paces. At Joby, the vast majority of this takes place in-house.

Joe: The progress we've made particularly in completing stage three is central to allowing US to proceed with full confidence in our design and approach.

Joe: Supporting our certification program is a tremendous amount of testing.

Joe: Thousands of individual parts subsystems and full assemblies are put through their paces.

Joe: At <unk> the vast majority of this takes place in house.

JoeBen Bevirt: As Didier will explain, this approach allows us to move with significant pace and agility, particularly through the fourth stage of certification, which is focused on testing. Our engineers are able to get real-time feedback on the performance of the parts they're working on by literally walking up to their colleagues and chatting with them face-to-face instead of relying on distant third parties. We have developed these testing facilities over several years and believe they are central to achieving our goal of starting commercial operations next year.

Joe: As <unk> will explain this approach allows us to move with significant pace and agility, particularly through the fourth stage of certification, which is focused on testing.

Joe: Our engineers are able to get real time feedback on the performance of the park, they're working on by literally walking up to their colleagues and chatting with them face to face instead of relying on just in third parties.

Joe: We have developed these testing facilities over several years and believe they are central to achieving our goal of starting commercial operation next year.

JoeBen Bevirt: Our flight test campaign also plays an important role in achieving those goals, and I'm pleased to say that after more than four years of flying full-scale pre-production aircraft, we've accomplished everything we set out to do with these aircraft and more. As our focus shifts to flying our production prototype aircraft, our second pre-production aircraft will now transition over to its next life as an R&D asset, having flown more than 25,000 miles across more than 750 flights, including more than 100 with a pilot on board. It was the first air taxi to fly in New York City, and it completed testing that has benefited the wider industry, including precision landing tests with the FAA and acoustic testing with NASA.

Joe: Our flight test campaign also plays an important role in achieving those goals and I'm pleased to say that after more than four years applying full scale preproduction aircraft. We've accomplished everything we set out to do with these aircrafts and more.

Joe: As our focus shifts to flying our production prototype aircrafts are second preproduction aircraft will now transition over to its next life as an R&D asset having flown more than 25000 miles across more than 750 flights, including more than 100 with a pilot on board.

Joe: It was the first air taxi to fly in New York City and are completing testing that has benefited the wider industry, including precision planting tests with the FAA and acoustic testing with NASA.

JoeBen Bevirt: I'm incredibly proud of the team that looked after and flew our two pre-production aircraft, and we look forward to focusing our resources on our increasing fleet of production prototype aircraft. As we continue to make sector-leading progress on certification, we're matching it with equal progress on manufacturing. Our second production prototype aircraft rolled off the line last week and will now enter our test program. And by the time of our second quarter call, we expect yet another aircraft will have rolled off the line, meaning we'll have four full-scale aircraft in our test.

Joe: I'm incredibly proud of the team that looked after and flu are two preproduction aircrafts and we look forward to focusing our resources on our increasing fleet of production prototype aircraft.

Joe: As we continue to make sector, leading progress on certification, we're matching it with equal progress on manufacturing.

Joe: Our second production prototype aircraft roll off the line last week and will now enter our test program.

Joe: And by the time of our second quarter call. We expect yet another aircraft will have rolled off the line, meaning we will have four full scale aircraft and our test fleet.

JoeBen Bevirt: To support a ramp up in production, we acquired an existing facility in Dayton, Ohio, and broke ground on the expansion of our pilot production line in Marina, California. The new building in Marina will more than double our existing footprint, providing space for us to deliver up to 25 aircraft per year.

Joe: To support a ramp up in production, we acquired an existing facility in Dayton, Ohio and broke ground on the expansion of our pilot production line and Marina, California.

Joe: The new building in Marina will more than double our existing footprint, providing space for up to us to deliver up to 25 aircraft per year.

JoeBen Bevirt: The facility in Ohio will initially support our operations in Marina and is the first step on our journey to develop facilities capable of delivering up to 500 aircraft per year. We believe this stepwise approach to expansion is the smartest way to deploy capital, and we're grateful for the continued support of Toyota as we plan our approach to scaled manufacturing. As well as working side-by-side with the Toyota team on a daily basis, we were pleased to welcome a number of executive-level visits from Toyota during the quarter, including Shiga-san, EVP of Production Engineering and Manufacturing at Toyota North America, Kaita-san, President of the Advanced Engineering Development Center at TMC, Uhara-san, President, Power Train Company at TMC, and Kamata-san, President, Commercial Vehicle Company at TMC. And what I love about these visits is that they really speak to the spirit of the Toyota team.

Joe: The facility in Ohio will initially support our operations in brain and is the first step on our journey to develop facilities capable of delivering up to 500 aircraft per year.

Joe: We believe this step wise approach to expansion is the smartest way to deploy capital and we're grateful for the continued support of Toyota as we plan our approach to scale manufacturing.

Joe: As well as working side by side with the toilet team on a daily basis. We were pleased to welcome a number of executive level visits from Toyota during the quarter, including she gets on Edp of production engineering and manufacturing it toward our North America <unk> President of the advanced Engineering Development Center at CMC Laura.

Joe: On President Powertrain company at TMC, and Commoditize, President commercial vehicle company at TMC.

Joe: And what I love about these visits is that they really speak to the spirit of the Toyota team.

JoeBen Bevirt: Toyota is a company led by engineers who want to be out on the production line looking at every detail, every process, and every part just like us. I'm incredibly grateful for their support, and as we grow our production, the value of our relationship will only increase. Turning to our third area of focus, commercialization, we again made great progress in the quarter. On the domestic side, we continue to work on securing infrastructure in our key target markets of Los Angeles and New York, while on the international side, we signed a multilateral agreement with three Abu Dhabi government departments. The Department of Municipalities and Transport, the Department of Economic Development and the Department of Culture and Tourism.

Joe: But as a company led by engineers, who want to be out on the production line looking at every detail every process every part just like us.

Joe: I'm incredibly grateful for their support and as we grow our production the value of our relationship will only increase.

Joe: Turning to our third area of focus commercialization, we again made great progress in the quarter on.

Joe: On the domestic side, we continue to work on securing infrastructure in our key target markets of Los Angeles, and New York well on the international side, we signed a multilateral agreement with three Abu Dhabi Government Department.

Joe: The department of municipalities and transport.

Joe: The department of economic development, and the department of culture and tourism.

JoeBen Bevirt: This agreement identifies government support for establishing and scaling air taxi service, in the Emirate, and builds on last quarter's announcement that we have secured the exclusive right to operate air taxi services across the Emirate of Dubai for six years. The agreement also opens the door to Inter-Emirate services and flights across the wider UAE. We also widened our partnership with the U.S. Air Force, announcing that we plan to deliver two aircraft to MacDill Air Force Base in 2025 as part of our $131 million contract with Apple. MacDill is home to the U.S. Special Operations Command, U.S. Central Command, and units from the Air Mobility Command, and this deployment will mark our first opportunity to work directly with operational units from the DoD.

Joe: This agreement identified government support for establishing and scaling air taxi service in the Emirate and builds on last quarter's announcement that we have secured the exclusive right to operate air taxi services across the emirate of Dubai for six years.

Joe: The agreement also opens the door to inner Emirates services and flights across the wider in UAE.

Joe: We also widened our partnership with the U S Air Force announcing that we plan to deliver two aircraft to Macdill Air Force base in 2025, as part of our $131 million contract without works.

Joe: Mcneill is home to the U S Special operations Command U S Central command and units from the Air Mobility Command and this deployment will mark our first opportunity to work directly with operational units from the D O D.

JoeBen Bevirt: Our work with the DoD is just one of three distinct pillars that make up our go-to-market strategy, alongside our work with Delta in the U.S. market and with a range of partners in international markets, including Dubai. As I said at the outset, the Joby team continues to deliver sector-leading progress across certification, manufacturing, and commercialization. There is another important piece of the puzzle, however, that hasn't received much attention to date and where Joby is also leading the way.

Joe: Our work with the Dod is just one of three distinct pillars that make up our go to market strategy alongside our work with Delta in the U S market and with a range of partners in international markets, including Dubai.

Joe: As I said at the outset, the JV team continues to deliver sector, leading progress across certification manufacturing and commercialization.

Joe: There isn't another important piece of the puzzle however that hasn't received much attention to date and where job. He is also leading the way.

JoeBen Bevirt: That's the work we're doing to prepare for operation. To put it bluntly, you can certify an aircraft and you can build a production line for the aircraft, but without the backbone of the operations work, you won't be able to operate your aircraft effectively. If at all.

JoeBen Bevirt: That's the work we're doing to prepare for operation.

Joe: To put it bluntly you can certifying aircraft and you can build a production line for that aircraft, but without the backbone of the operations, where you won't be able to operate your aircraft effectively if at all.

JoeBen Bevirt: And to be clear, this is work that has to be done, whether you intend to operate the aircraft yourself or sell it to a third party. We've been working on this topic for several years now, from writing a pilot training curriculum and running a Part 135 operation to maturing the software stack we brought across from Uber Elevate when we acquired that division and welcomed their incredible, And I'm glad Bonnie is joining us today to highlight some of that work.

JoeBen Bevirt: And to be clear. This is work that has to be done whether you intend to operate the aircraft yourself or sell it to a third party.

Joe: We've been working on this topic for several years now from riding a pilot training curriculum and running a part 135 operation to maturing the software stack, we brought across from Uber elevate when we acquired that division and welcomed their incredible team.

Joe: And I'm glad Bonnie is joining us today to highlight some of that work.

JoeBen Bevirt: Bonnie has a remarkable amount of experience in airline operations and has been working with Joby since 2017, first as an investor and more recently as our president of operations. And like Didier and Matt, she is the longest standing executive in her position across all of the publicly traded companies in the sector, which speaks volumes about the strength of our team and our commitment to delivery.

Joe: Bonnie has a remarkable amount of experience in airline operation and has been working with Dolby since 2017 first as an investor and more recently as our president of operations and.

JoeBen Bevirt: I'd liked NDA and bat she is the longest standing executive in our position across all of the publicly traded companies in the sector, which speaks volumes about the strength of our team and our commitment to delivery.

JoeBen Bevirt: Last quarter, we set out our goals for 2024, and I'm pleased to say we're on track to deliver them. It's Joby's unique vertically integrated approach that ensures we continue to deliver on these goals at PAGE. There is a trend amongst the companies in our sector to highlight how they're taking risk off the table by relying on the traditional aerospace supply chain. But at Joby, we believe the opposite is true.

JoeBen Bevirt: Last quarter, we set out our goals for 2024 and I'm pleased to say, we're on track to deliver them.

JoeBen Bevirt: Its job is unique vertically integrated approach that ensures we continue to deliver on these goals at pace.

Joe: There is a trend amongst the companies in our sector to highlight how theyre, taking risk off the table by relying on the traditional aerospace supply chain.

JoeBen Bevirt: But at <unk>, we believe the opposite is true.

JoeBen Bevirt: We don't outsource 80% of our parts. We don't outsource the majority of our testing. We don't rely on others to build an operational software stack. We do these things ourselves, not because we're perfectionists, but because we're pragmatic.

JoeBen Bevirt: We don't outsource 80% of our parts, we don't outsource the majority of our testing we don't rely on others to build operational software stack.

Joe: We do these things ourselves.

JoeBen Bevirt: Not because we are perfectionists, but because we're pragmatists.

JoeBen Bevirt: If you outsource 80% of your supply chain, you give up control of 80% of your product. You can only be as fast as your slowest supplier, and your product is only as reliable as your least reliable supplier. As we see other traditional aerospace companies reintegrating suppliers to address current issues, it's clear that in a new sector like ours, where the certification basis has only just come together, where we're building aircraft that has never existed before, using parts that have never been combined.

JoeBen Bevirt: If you outsource 80% of your supply chain, you give up control of 80% of your product.

JoeBen Bevirt: You can only be as fast as your slowest supplier and your product is only as reliable as your least reliable supplier.

JoeBen Bevirt: As we see other traditional aerospace companies re integrating suppliers to address current issues, it's clear that in a new sector like ours, where the certification basis, it's only just come together.

JoeBen Bevirt: We're we're building aircraft that has never existed before using parts that have never been combined before we need a level of responsiveness.

JoeBen Bevirt: We need a level of response, of agility, of responsibility that you just cannot get when you outsource everything. That approach won't be cheaper, it won't be faster, and it won't be better. It obscures risks and results in evolutionary change instead of the revolutionary change we're looking for.

JoeBen Bevirt: Of agility.

JoeBen Bevirt: Of responsibility that you just cannot get when you outsource everything.

JoeBen Bevirt: That approach won't be cheaper it wont be faster and it won't be better.

JoeBen Bevirt: It obscures risks and results an evolutionary change instead of the revolutionary change we're looking for.

JoeBen Bevirt: At Joby, we're building a different sort of aviation company, one where we're in control of the quality and speed of manufacturing, where we benefit from shared learnings amongst our and where we're able to prioritize the best possible performance and best possible experience for our customers. We are building a next generation aviation company. And to talk more about our progress on that front, I'm going to hand it over to Didier.

JoeBen Bevirt: At <unk>, we're building a different sort of aviation company, one where we are in control of the quality and speed of manufacturing.

Didier: Where we benefit from shared learnings amongst our team.

Didier: And where we're able to prioritize the best possible performance and best possible experience for our customers.

JoeBen Bevirt: We are building a next generation aviation company and to talk more about our progress on that front I'm going to hand, it over to Didier.

Didier Papadopoulos: Thank you, JoeBen. It is such a pleasure to be part of building this next-generation aviation company. In my 15 years at Garmin, I saw repeatedly how vertical integration leads to superior products and a durable advantage in the market. But joining Joby three years ago completely blew me away.

Didier: Thank you Joe Ben It is such a pleasure to be part of building. This next generation Aviation company.

Didier: In my 15 years at Garmin I saw repeatedly how vertical integration leads to superior products and a durable advantage in the market.

Didier Papadopoulos: But joining job you three years ago completely blew me away.

Didier Papadopoulos: The amount of cross-functional design, manufacturing, and testing that we're completing under one roof is truly unique, not just in aerospace, but to all hardware, software, development, and production. Every day, I see our approach paying off, saving us kilograms of weight, weeks of schedule, and thousands of dollars on our bill of materials. I truly believe there is no other aviation company on the planet with as much depth and breadth of in-house engineering knowledge and capabilities as we have here at Joby. And that's an investment that we believe will have compounding returns over time. This is no coincidence.

Didier Papadopoulos: The amount of cross functional design manufacturing and testing that we're completing under one roof is truly unique not just in aerospace, but to all hardware software development and production.

Didier Papadopoulos: Every day I see our approach, bringing off saving us kilograms of wait weeks of schedule and thousands of dollars on our bill of material.

Didier Papadopoulos: I truly believe there is no other aviation company on the planet with as much depth and breadth of in house engineering knowledge and capabilities as we have here Adobe and.

Didier Papadopoulos: And that's an investment that we believe will have compounding returns overtime.

Didier Papadopoulos: This is no coincidence.

Didier Papadopoulos: It is a result of carefully weighing the decision to insource or outsource each component across the aircraft. We do have a number of strategic supplier partners, including Garmin, Toray, and Toyota. Where we're able to identify partners with the right values and long-term view, we have invested in deep relationships that are key to our success. But we won't compromise on agility, cost, performance, or quality.

Didier Papadopoulos: It is a result of carefully weighing the decision to in source or outsource each component across the aircraft.

Didier Papadopoulos: We do have a number of strategic supplier partners, including Garmin, sorry, and Toyota.

Didier Papadopoulos: What we're able to identify partners with the right values and long term view, we have invested in deep relationships. There are key to our success.

Didier Papadopoulos: But we won't compromise on agility cost performance or quality.

Didier Papadopoulos: And our approach continues to result in a leadership position across our industry. As JoeBen mentioned, this quarter we became the first and remain the only electric air taxi manufacturer with finalized airworthiness criteria from the FAA. As we stated last quarter, the final G1 resulted in no design changes and allows us to move ahead in Stage 4 with confidence.

Didier Papadopoulos: And our approach continues to result in a leadership position across our industry.

Didier Papadopoulos: As Joe Ben mentioned this quarter, we became the first and remain the only electric air taxi manufacturer with finalized air worthiness criteria from the FAA.

Didier Papadopoulos: As we stated last quarter. The final G. One resulted in no design changes and allows us to move ahead in stage four with confidence.

Didier Papadopoulos: It's also the foundation of the progress we're making for all three of our path to market. Commercial launch in the U.S., deployment with the DoD, and launch in Dubai, where we're working with the UAE's General Civil Aviation Authority to leverage the documentation and testing we're doing for the FAA. Having our finalized airworthiness criteria is a really fundamental step. As we said before, it does mean that both we and the FAA have additional paperwork to do as we work through refinements to our means of compliance and certification plans. We believe we're on track to close all these by next quarter and expect our progress in stage four to accelerate in the back half of this year.

Didier Papadopoulos: It's also the foundation of the progress, we're making for all three of our path to market.

Didier Papadopoulos: Commercial launch in the U S.

Didier Papadopoulos: All I meant with the D O D and launch in Dubai.

Didier Papadopoulos: We're working with the U a E general Civil Aviation authority to leverage the documentation and testing we're doing for the FAA.

Didier Papadopoulos: Having our finalized air worthiness criteria is a really fundamental step as.

Didier Papadopoulos: As we said before it does mean that both we and the FAA have additional paperwork to do as we work through refinements to our means of compliance and certification plants.

Didier Papadopoulos: We believe we are on track to close all of these by next quarter and expect our progress in stage four to accelerate in the back half of this year.

Didier Papadopoulos: While we complete that work, this quarter, we continue to progress at pace on Stage 4. Building on the learnings from our Pathfinder testing and test plan submittals at the end of last year. We submitted to the FAA equipment level test plans covering the control surface actuators, pilot interceptors, mission display computer, and vehicle navigation computer, plus many structural elements of the aircraft. We're now preparing to perform for credit testing on many of these test articles.

Didier Papadopoulos: Why do we complete that work this quarter, we continued to progress at pace on stage four.

Didier Papadopoulos: Building on the learnings from our past find their testing and test plant submit those at the end of last year.

Didier Papadopoulos: We submitted to the FAA equipment levels desk Lance governing the control surface actuators pilot in sectors mission display computer and vehicle navigation computer plus many structural elements of the aircrafts.

Didier Papadopoulos: We're now preparing to perform for credit testing on many of these tests articles.

Didier Papadopoulos: Also part of stage four, we submitted two qualification plans related to the aircraft's energy storage, covering the charge port and pump and battery control and distribution. And in a huge win for the team, we continue to move up the aircraft testing pyramid tiers with the submittal of our first system level test plan. As a reminder, we conduct testing at every level of the aircraft, from individual components to full vehicle, and we're making progress at multiple levels of the pyramid simultaneously.

Didier Papadopoulos: Also part of stage four we submitted two qualification plans related to the aircraft's energy storage covering the charged sports and pump and battery control and distribution.

Didier Papadopoulos: And in a huge win for the team we continue to move up the aircraft testing pyramid tiers with the submit all of our first system level test plan.

Didier Papadopoulos: As a reminder, we conduct testing at every level of the aircrafts from individual components to full vehicle and we're making progress at multiple levels of the pyramid simultaneously.

Didier Papadopoulos: This test plan covers the functions of our unique low workload flight controls and vector thrust propulsion system, and it's a perfect example of why vertical integration is key to our success. With the design and development of the software and hardware for both flight controls and propulsion completed in-house, we've been able to optimize and efficiently manage all of this as one integrated system, making progress much faster than an integrator between a whole host of partners. This has proven to be true across our entire aircraft.

Didier Papadopoulos: This test plan covers the function of our unique low workload flight controls and vector thrust propulsion system and its a perfect example of why vertical integration is key to our success.

Didier Papadopoulos: With the design and development of the software and hardware for both flight controls and propulsion completed in house, we've been able to optimize and efficiently manage all of this as one integrated system.

Didier Papadopoulos: Making progress much faster than an integrator between a whole host of partners.

Didier Papadopoulos: This has proven to be true across our entire aircraft.

Didier Papadopoulos: The more pieces of the puzzle we have direct control over, the faster we can identify elements of our hardware or software that need improvement, and we can deploy solutions that are optimized for our needs. That's precisely why, this quarter, we completed several upgrades to our in-house testing capabilities that are critical to our certification campaign. We developed and installed new tilt, variable pitch, and control surface actuation load test stands in support of test plans covering our actuators, as well as our integrated flight and propulsion systems.

Didier Papadopoulos: The more pieces of the puzzle we have direct control over the faster we can identify elements of our hardware or software that need improvement.

Didier Papadopoulos: And we can deploy solutions that are optimized for our needs.

Didier Papadopoulos: That's precisely why this quarter, we completed several upgrades to our in house testing capabilities that are critical to our certification campaign.

Didier Papadopoulos: We developed and installed new tilt variable pitch and control surface actuation low test stands and supported a first glance governing our actuators as well as our integrated flight and propulsion system.

Didier Papadopoulos: In support of the battery qualification plan submitted this quarter, We brought online a state-of-the-art battery test building that can safely house routine thermal runaway testing for showing FAA compliance. And in the next few weeks, we expect to submit our second system level test plan covering the endurance of our propulsion system. Which is why we have upgraded our propulsion system test stand, or WORLI, a remarkable test asset unique to Joby that you can see in action in our shareholder letter.

Didier Papadopoulos: In support of the battery qualification plans submitted this quarter we.

Didier Papadopoulos: We brought online a state of the art battery test building that can safely house routine thermal runaway testing for showing FAA compliance.

Didier Papadopoulos: And in the next few weeks, we expect to submit our second system level test plan covering the endurance of our propulsion system.

Didier Papadopoulos: Which is why we have upgraded our propulsion system test Stan or worthy a remarkable desk asset unique to Joey that you can see an action in our shareholder letter.

Didier Papadopoulos: We've enhanced Worli to operate at higher speeds and test across a wider spectrum of the flight envelope, thereby recording even more data for use with the FAA. Testing is a muscle, much like manufacturing and operation. And it's a critical part of the safe development and certification of new aviation technology. It is the only way to completely understand all safety and performance parameters of a design.

Didier Papadopoulos: We've enhanced worthy to operate at higher speeds and tests across a wider spectrum of the flight envelope, thereby recording even more data for use with the FAA.

Didier Papadopoulos: Testing is a muscle much like manufacturing and operations and its a critical part of the safe development and certification of New Aviation technology.

Didier Papadopoulos: It is the only way to completely understand all safety and performance parameters of a design.

Didier Papadopoulos: And by doing the majority of our testing in-house, we're not only able to provide faster feedback to our design and manufacturing teams, but also have perfected our testing facilities and processes alongside our aircraft. I am proud of the team for delivering on these mature test assets that we know will accurately and efficiently give us the data we need to demonstrate the safety and performance of our aircraft, including for FAA credit. Of course, the ultimate test for any aircraft program is flight testing with a full-scale representative aircraft.

Didier Papadopoulos: And by doing the majority of our testing in house, we're not only able to provide faster feedback to our design and manufacturing teams, but also have perfected our testing facilities and processes alongside our aircrafts.

Didier Papadopoulos: I am proud of the team for delivering on these mature desk assets that we know will accurately and efficiently. It gave us the data we need to demonstrate the safety and performance of our aircrafts, including for FAA credits.

Didier Papadopoulos: Of course, the ultimate test for any aircraft program is flight testing with a full scale representative aircrafts.

Didier Papadopoulos: This quarter, we successfully completed our pre-production prototype flight test campaign after logging more than 1,500 flights and 33,000 miles with our two aircraft. I want to provide a little more details on what we've learned from our four years of constant flight on full-scale representative aircraft, because this comprehensive flight testing uniquely positions us for success across certification, manufacturing, and preparing for operations. First, we have developed a world-class flight test team. Our pilots, flight test engineers, and maintainers are now highly experienced at safely and efficiently executing the different types of flight tests that will be needed for certification.

Didier Papadopoulos: This quarter, we successfully completed our preproduction prototype flight test campaign after logging more than 1500 flights and 33000 miles without two aircrafts.

Didier Papadopoulos: I want to provide a little more detail on what we've learned from our four years of constant flight on full scale representative aircraft because this comprehensive flight testing uniquely positions us for success across certification manufacturing and preparing for operations.

Didier Papadopoulos: We have developed a world class flight desk team.

Didier Papadopoulos: Our pilots flight test engineers and maintain owners are now highly experienced at safely and efficiently executing the different types of flight test that will be needed for certification.

Didier Papadopoulos: This is critical as we move to the next phase of our program, where we will use our production prototypes to dry run all of the flight testing we will then perform for FAA credit. Second, we have validated our design, including elements such as human factors and handling characteristics by flying at high speeds and altitudes, different states of charge, and a range of weather conditions. We collected all these learnings into our models, components, and systems.

Didier Papadopoulos: This is critical as we move to the next phase of our program, where we will use our production prototypes to dry run all of the flight testing. We will then perform for FAA credit.

Didier Papadopoulos: Second we have validated our design, including elements, such as human factors and handling characteristics by flying at high speeds and altitude different states of charge in a range of weather conditions.

Didier Papadopoulos: We collected all of these learnings into our models components and systems.

Didier Papadopoulos: The resulting improvements have already been designed into the parts we're producing now. Third, we gathered extensive testing data that informs the stage four test plans we are writing and submitting to the FAA, which we believe sets us up to have those documents accepted in short order. Fourth, we have fed learnings into our operations and maintenance program, both for type certification requirements like manuals and to inform our airline operations that Bonnie will speak to more in a moment.

Didier Papadopoulos: The resulting improvements have already been designed into the parts, we're producing now.

Didier Papadopoulos: Third we gathered extensive testing data that informs the stage four deaths plans, we are writing and submitting to the FAA, which we believe sets us up to have those documents accepted in short order.

Didier Papadopoulos: Fourth we are fed learnings into our operations and maintenance program, both for tax certification requirements like manuals and to inform our airline operations that Bonnie will speak to more in a moment.

Didier Papadopoulos: Ten pilots have flown a Joby aircraft through transition, including the four U.S. Air Force pilots who trained with us in Marina last year. We have fine-tuned our pilot training course to safely prepare commercial pilots to fly the Joby aircraft in about six weeks. We're developing tools that continuously monitor the health of the aircraft systems based on operational flight data, which will be key to efficient operations at scale. And finally, we've been able to uniquely contribute to and shape the formation of our industry by providing regulators with real, practical data on aircraft characteristics like outwash and precision landing that will inform standards being developed for the broader industry on infrastructure and operations.

Didier Papadopoulos: 10 pilots have flown Adobe aircrafts through transition, including the four U S Air Force pilots, who trade with us and Marina last year we.

Didier Papadopoulos: We have fine tuned our pilot training course to safely prepared commercial pilots to fly the Dolby aircrafts in about six weeks.

Didier Papadopoulos: We are developing tools that continuously monitor the health of the aircraft systems based on operational flight data, which will be key to efficient operations at scale.

Didier Papadopoulos: And finally, we've been able to uniquely contribute to and shape the formation of our industry by providing regulators with the real practical data on aircraft characteristics like outwash and precision landing that would inform standards being developed for the broader industry on infrastructure and operations.

Didier Papadopoulos: I want to thank and congratulate the entire team on four years of incredibly successful flight. In closing, I want to touch on the remarkable progress our team continues to make on ramping up our manufacturing capacity. We've always taken a pragmatic approach to scaling manufacturing, and that approach is already paying off.

Speaker Change: I want to thank and congratulate the entire team on 40 years of incredibly successful flight.

Didier Papadopoulos: In closing I want to touch on the remarkable progress our team continues to make on ramping up our manufacturing capacity we.

Didier Papadopoulos: We've always taken a pragmatic approach to scaling manufacturing.

Didier Papadopoulos: That approach is already paying off.

Didier Papadopoulos: Last week, we rolled our second production prototype off the line in Marina. And we have two more aircraft close behind in final assembly. As we go through each build cycle, we're learning and improving many parts of our manufacturing processes to shorten build time, improve quality, and reduce waste. These are key ingredients for successful economical production at scale, and we're building them into our processes now, rather than when we have already made much more significant capital investments.

Didier Papadopoulos: Last week, we rolled our second production prototype off the line in Marina and.

Didier Papadopoulos: And we have two more aircraft close behind and final Assembly.

Didier Papadopoulos: As we go through each build cycle, we're learning and improving many parts of our manufacturing processes to shorten build time improve quality and reduce waste. These.

Didier Papadopoulos: These are key ingredients for successful economical production at scale.

Didier Papadopoulos: And we're building them into our processes now rather than when we have already made much more significant capital investments.

Didier Papadopoulos: We are on track to achieve an annual production rate of 12 airplanes worth of components by the end of this year. To reiterate, some of these will be complete aircraft and others will be parts used for development and certification testing, which requires us to shake, bake, and break many parts as we demonstrate they meet the requirements. To get to the next step, we've begun work on a significant facility expansion in Marina.

Didier Papadopoulos: We are on track to achieve an annual production rate of 12 airplanes worth of components by the end of this year too.

Didier Papadopoulos: To reiterate.

Didier Papadopoulos: Some of these will be complete aircraft and others will be parts used for development and certification testing.

Didier Papadopoulos: Which requires us to shake Baig and break many parts as we demonstrate they meet the requirements to.

Didier Papadopoulos: To get to the next step we've begun work on a significant facility expansion in Marina.

Didier Papadopoulos: The new building will more than double our manufacturing space at the airport, allowing us to target 25 aircraft per year as we continue to develop facilities in Dayton, Ohio, that will support us in our goal of producing up to 500 airplanes a year. At the same time, we're expanding our conforming production to support for credit testing. In addition to ramping production of conforming flight electronics, this quarter, we began assembly of our first FAA conforming tail, which will be used as a structural test asset in for credit testing later this year.

Didier Papadopoulos: The new building will more than double our manufacturing space at the airport, allowing us to target 25 aircraft per year as we continued to develop facilities in Dayton, Ohio that will support us in our goal of producing up to 500 airplanes a year.

Didier Papadopoulos: At the same time, we're expanding our conforming production to support for credit testing.

Didier Papadopoulos: In addition to ramping production of conforming fight electronics. This quarter, we began assembly our first FAA conforming tail, which will be used as a structural test asset in for credit testing later this year.

Didier Papadopoulos: This progress is underpinned by the maturity of our quality management system, which continues to evolve towards meeting all FAA requirements for us to receive a production certificate. From testing to certification and manufacturing, the Joby team continues to knock it out of the park, and I am so, so proud to be part of the team that's doing the hard work to bring to market the right aircraft for our mission. I'll now hand it off to Bonnie to discuss how we're preparing for what comes next.

Didier Papadopoulos: This progress is underpinned by the maturity of our quality management system, which continues to evolve towards meeting all FAA requirements for our students see a production certificate.

Bonnie: From testing to certification and manufacturing the Jobete team continues to knock it out of the park and I am so so proud to be part of the team that's doing the hard work to bring to market the right aircraft for our mission.

Didier Papadopoulos: I'll now hand, it off to Bonnie to discuss how we're preparing for what comes next.

Bonnie Simme: Thank you, Didier. It's a pleasure to be here to introduce our work on operation. As JoeBen said at the outset, there's a significant amount of work that needs to be completed before anyone can operate this new type of aircraft. You can achieve type certification and build a fleet of aircraft, but without items like FAA-certified full-motion simulators, FAA maintenance and operating certificates, FAA-approved pilot training programs, and safety management systems, you won't be able to run a commercial aviation service.

Bonnie: Thank you <unk>, it's a pleasure to be here to introduce our work on operations.

Bonnie Simme: Some of those items, like maintenance procedures and manuals, are actually a prerequisite for type certification. And to be clear, these requirements don't go away if you intend to sell the aircraft. Any operator will need every one of these systems in place in order to launch even a basic operation.

Bonnie Simme: As Joe Ben said at the outset, there is a significant amount of work that needs to be completed before anyone can operate this new type of aircraft.

Bonnie Simme: You can achieved type certification and build a fleet of aircraft, but without items like FAA certified full motion simulators, FAA maintenance and operating certificates FAA approved pilot training programs and safety management systems, you won't be able to run a commercial aviation service some of those items like.

Bonnie Simme: Maintenance procedures and manuals are actually a prerequisite for type certification.

Bonnie Simme: And to be clear these requirements don't go away if you intend to sell the aircraft.

Bonnie Simme: Any operator will need every one of these systems in place in order to launch even a basic operation.

Bonnie Simme: In 2020, when I joined Joby full-time, we sat down and mapped out the full set of requirements to start operations, and we've been working on them ever since, because we realized that many of them, like simulators, have a long lead time or, like pilot training programs, could not be bought off the shelf. Now that we have a clear line of sight to start commercial operations, we thought it would be valuable to touch on the work that we've already completed and the milestones that lie ahead. Next month we plan to host a teach-in session where we will cover this topic in more detail. But for now, I'd like to introduce the broad theme.

Bonnie Simme: In 2020, when I joined <unk> full time, we sat down and mapped out the full set of requirements just star operations and we've been working on them ever since because we realize that many of them like simulators have a long lead time or like pilot training programs could not be bought off the shelf.

Bonnie Simme: Now do we have a clear line of sight to start of commercial operations, we thought it would be valuable to touch on the work that we've already completed and the milestones that lie ahead.

Bonnie Simme: Next month, we plan to host a teaching session, where we will cover this topic in more detail, but for now I'd like to introduce the broad themes.

Bonnie Simme: Our work to repair for early operations can be divided into three categories, FAA authorizations, infrastructure, and software, with safety as a common thread underpinning all three. When we say infrastructure, we mean the development of standards for landing sites and the landing sites themselves, the development of charging solutions of ground handling processes and decisions about aircraft storage and shipping, as well as the location and build out of maintenance and simulator facilities. And by software, we mean scheduling tools, the pilot flight planning tools, the customer interface, the maintenance tracking, the data links to the aircraft, and so much more. Just like for Didier on the certification side of the business, for operations, the long pole in the tent is FAA approvals and certification. And this is where we are focused in the New York.

Bonnie Simme: Our work to prepare for early operations can be divided into three categories, FAA authorizations infrastructure and software with safety as a common thread underpinning all three.

Bonnie Simme: When we say infrastructure, what do you mean, the development of standards for landing sites and the landing sites themselves. The development of charging solutions of ground handling processes and decisions about aircraft storage and shipping as well as the location and build out of maintenance and simulator facilities.

Bonnie Simme: And by software, we mean scheduling tools the pilot flight planning tools, the customer interface, the maintenance tracking the data links to the aircraft and so much more.

Bonnie Simme: Just like for Didier on the certification side of the business for operations. The long pole in the tent is FAA approvals and certifications and this is where we are focused in the near term.

Bonnie Simme: By pulling ahead our work on operations, we're able to de-risk our go-to-market strategy and ensure we have the right foundation in place to scale. In order to fly an aircraft for commercial passenger use, there's an extensive list of requirements and federal certifications that you need, including a Part 135 operating certificate that allows you to carry passengers for revenue. A Part 145 maintenance certificate that allows you to efficiently maintain and repair the aircraft as approved under its type certificate.

Bonnie Simme: By pulling ahead, our work on operations were able to Derisk. Our go to market strategy and ensure we have the right foundation in place to scale.

Bonnie Simme: In order to fly an aircraft for commercial passenger use theres, an extensive list of requirements and federal certifications that you need including.

Bonnie Simme: A part 135 operating certificate that allows you to carry passengers for revenue.

Bonnie Simme: Apart $1 45 maintenance certificates that allows you to efficiently maintain and repair the aircrafts as approved under its type certificate.

Bonnie Simme: Simulators that are certified under Part 60 to be used to train pilots for commercial operations, and FAA-approved pilot and maintenance training program. These are all in-depth processes that require years of work to get across the line, and we've made excellent progress on each of them. In May of 2022, we were awarded our Part 135 Operating Certificate, enabling us to use conventional aircraft to simulate, test, and iterate on our future airline service, even before we have the Joby aircraft ready to take passengers. We received our Part 145 Maintenance Certificate earlier this year.

Bonnie Simme: Simulators that are certified under part 60 to be used to train pilots for commercial operation.

Bonnie Simme: And FAA approved pilot and maintenance training programs.

Bonnie Simme: These are all in depth processes that require years of work to get across the line and we've made excellent progress on each.

Bonnie Simme: In May of 2022, we were awarded our part 135 operating certificate, enabling us to use conventional aircrafts to stimulate test and iterate on our future airline service, even before we have the GOP aircrafts ready to take passengers.

Bonnie Simme: We received our part 145 maintenance certificate earlier this year and another item, we've been able to tick off the list in advance.

Bonnie Simme: Another item we've been able to tick off the list in advance. We've been working for years with our partner CAE, which we announced in March of 2022, to develop Part 60 full motion simulators, and we're developing the certification plan to submit to the FAA. As Didier mentioned, we're developing our pilot training program and testing it with the U.S. Air Force. This will form the foundation of our commercial pilot training program. With both our 135 and 145 certificates, as well as the simulators in place, we'll be able to get the Joby aircraft into service more quickly.

Bonnie Simme: We've been working for years with our partner CAE, which we announced in March of 2022 should develop part 60 full motion simulators and we're in developing the certification plan to submit to the FAA.

Bonnie Simme: As Didier mentioned, we're developing our pilot training program and testing it with a U S. Air Force. This will form the foundation of our commercial pilot training program.

Bonnie Simme: With both of our $1 35, and $1 45 certificates as well as the stimulators in place, we'll be able to get the gilby aircraft into service more quickly.

Bonnie Simme: Last but certainly not least, safety is at the core of everything we do at Joby. Just last month, the FAA announced a requirement for Safety Management Systems, or SMS, for all 135 operators. And our SMS has already been accepted by the FAA into their voluntary SMS program. We're also the first and only in our industry to pass the Stage 1 International Standard for Business Aircraft Operators, is VEO, Audit, an important external validation of the preparation we've done to operate safely.

Bonnie Simme: Last but certainly not least safety is at the core of everything we do at Shelby just last month, the FAA announced a requirement for safety management system or SMS for all 135 operators at our SMS has already been accepted by the FAA into their voluntary SMS program.

Bonnie Simme: We're also the first and only in our industry to pass the stage one international standard for business aircraft operators is Dale audit and important external validation of the preparation we've done to operate safely.

Bonnie Simme: While these FAA authorizations may seem like a number soup, I hope that you'll take away is the significant amount of work that's well underway at Joby to ensure that we're ready for operations on day one. Last week's announcement regarding the expansion of our operations in Marina is also a key part of this work. At this building, we'll host our expanded pilot training and flight simulation center, as well as aircraft maintenance facilities that are designed to support the scaling of Joby's commercial operations.

Bonnie Simme: While these FAA authorizations may seem like a number sue I hope that you will take away is the significant amount of work that's well underway at Shelby to ensure that we're ready for operations on day one.

Bonnie Simme: Last week's announcement regarding the expansion of our operations and Marina is also a key part of this work at this building where host our expanded pilot training and flight simulation Center.

Bonnie Simme: As well as aircraft maintenance facilities that are designed to support the scaling of <unk> commercial operations.

Bonnie Simme: We're always looking ahead and making sure that we're taking the most efficient route to starting commercial operations while putting safety at the center of everything we do. The work done by our operations team is central to this, and is another area where Joby is leading in the sector. All of these preparations are well underway as we target operations in Dubai in late 2025. I look forward to unpacking these topics next month in more detail at our teach-in session on operations. And now I'll hand it over to Matt to cover financials.

Bonnie Simme: We're always looking ahead and making sure that we're taking the most efficient route to starting commercial operations, while putting safety at the center of everything we do.

Matt: The work done by our operations team is central to this and is another area, where Joey is leading in the sector.

Matt: All of these preparations are well underway as we target operations in Dubai in late 2025.

Bonnie Simme: I look forward to unpacking. These topics next month in more detail at our teaching session on operations and now I'll hand, it over to Matt to cover financials.

Matthew Allen Field: Thanks, Bonnie, and good afternoon, everybody. As you have heard from the team today, we continue to lead the industry across all elements of our business, certification, manufacturing, and commercialization. We also continue to lead the industry in having the strongest balance. We ended the first quarter of 2024 with cash and short-term investments totaling $924 million, right in line with the guidance we shared for the year. This represents the use of cash totaling $108 million, reflecting our measured pace of growth and investment.

Matt: Thanks, Bonnie and good afternoon everybody.

Matthew Allen Field: As you've heard from the team today, we continue to lead the industry across all elements of our business certification manufacturing and commercialization. We also continue to lead the industry in having the strongest balance sheet.

Matthew Allen Field: We ended the first quarter of 2024 with cash and short term investments totaling $924 million right in line with the guidance we shared for the year.

Matthew Allen Field: This represents a use of cash totaling $108 million, reflecting our measured pace of growth and investments.

Matthew Allen Field: Also, as a reminder, we had an extra pay period in Q1, which results in a higher cash outlay for the quarter. We incurred a Q1 net loss of $95 million, reflecting a loss from operations of about $146 million, offset by interest and other income of $51 million. Our net loss was lower by $21 million compared to the prior quarter, reflecting a higher favorable revaluation of our warrants and earn-out shares, partly offset by a higher net loss from operations.

Matthew Allen Field: Also as a reminder, we had an extra pay period in Q1, which results in a higher cash outlay for the quarter.

Matthew Allen Field: We incurred a Q1 net loss of $95 million, reflecting a loss from operations of about 146 million offset by interest and other income of $51 million.

Matthew Allen Field: Our net loss was lower by $21 million compared to the prior quarter.

Matthew Allen Field: Shifting a higher favorable revaluation of our warrants and earn out shares partly offset by a higher net loss from operations.

Matthew Allen Field: Higher operating expenses in the first quarter reflected a continued measured pace of investment in our certification and manufacturing personnel and operations, as well as lower sequential payments from government contract deliverables and higher stock-based compensation expenses at the start of the fiscal year. In terms of revenue, we mentioned last quarter that we would expect it to be somewhat lumpy as our work gets underway with the DoD, and we expect revenue to grow along with our flight hours throughout the year, especially as we look ahead to the delivery of our second aircraft to Edwards Air Force.

Matthew Allen Field: Increased operating expenses in the first quarter reflected a continued measured pace of investment in our certification and manufacturing personnel and operations lower sequential payments from government contract deliverables and higher stock based compensation expenses at the start of the fiscal year.

Matthew Allen Field: In terms of revenue, we mentioned last quarter that we would expect it to be somewhat lumpy as our work that's underway with the D O D.

Matthew Allen Field: We expect revenue to grow along with our flight hours throughout the year, especially as we look ahead to the delivery of our second aircraft Edwards Air Force base.

Matthew Allen Field: Adjusted EBITDA, a non-gap metric that we reconciled to our net income in our shareholder letter, was a loss of $110 million in the first quarter. This was about $14 million higher than in the prior quarter, reflecting the higher operating expenses mentioned earlier. Our adjusted EBITDA loss was $35 million higher than in the same period last year, reflecting the growth in our organization, expenses to support manufacturing and certification. Lower DoD contract deliverables and higher production volumes as we ramp up manufacturing on our way to an equivalent of 12 aircraft per year as we exit 2024.

Matthew Allen Field: Adjusted EBITDA, a non-GAAP metric that we reconciled to our net income in our shareholder letter was a loss of $110 million in the first quarter.

Matthew Allen Field: This was about $14 million higher than in the prior quarter, reflecting the higher operating expenses mentioned earlier.

Matthew Allen Field: Our adjusted EBITDA loss was $35 million higher than in the same period last year, reflecting the growth of our organization expenses to support manufacturing and certification lower Dod contract deliverables and higher production volumes as we ramp up manufacturing on our way to an equivalent of 12 aircraft per year as we exit.

Matthew Allen Field: 2024.

Matthew Allen Field: As mentioned at the outset, we ended the quarter with $924 million in cash, cash equivalents, and short-term investment. Our primary use of cash in the quarter was to support our operations, where we continue to invest in our certification efforts, manufacturing, and early go-to-market initiatives, which Bonnie highlighted. We spent about $7 million on property and equipment, which includes investments in test equipment assets that Didier mentioned earlier, and the acquisition of our facility in Ohio.

Matthew Allen Field: As mentioned at the outset, we ended the quarter with $924 million in cash cash equivalents and short term investments.

Matthew Allen Field: Our primary use of cash in the quarter was to support our operations, where we continue to invest in our certification efforts manufacturing and early go to market initiatives, which Bonnie highlighted.

Matthew Allen Field: We spent about $7 million on property and equipment, which includes investments in test equipment assets that Didier mentioned earlier and the acquisition of our facility in Ohio.

Matthew Allen Field: We continue to maintain a disciplined approach to our spending and to the growth of our company as we supplement our certification work with measured go-to-market initiatives in advance of commercialization. As always, you can expect us to continue to align our investments with the growth of the business. Accordingly, we remain on track with our full-year cash spending outlook of $440 to $470 million. This concludes our prepared remarks, and we look forward to having you join us for the teach-in on Operational Requirements with Bonnie in June. Operator, would you please instruct the participants on how to ask questions?

Matthew Allen Field: We continue to maintain a disciplined approach to our spending into the growth of our company as we supplement our certification work with measured go to market initiatives in advance of commercialization next year.

Matthew Allen Field: As always you can expect us to continue to align our investments with the growth of the business.

Matthew Allen Field: Accordingly, we remain on track with our full year cash spending outlook of $440 million to $470 million.

Matthew Allen Field: This concludes our prepared remarks, and we look forward to having you join us for the teach in on operational requirements with Bonnie in June.

Matthew Allen Field: Operator would you please instruct participants on how to ask questions.

Speaker Change: Thank you.

Operator: Ladies and gentlemen, 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, and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key. One moment, please, while we poll for questions. And our first question comes from the line of Andres Sheppard with Cantor Fitzgerald. Please proceed.

Speaker Change: And gentlemen, we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad and a confirmation tone will indicate your line is in the question queue.

Andres Juan Sheppard: You May press Star two if you would like to remove your question from the queue.

Andres Juan Sheppard: For participants using speaker equipment it.

Andres Juan Sheppard: It may be necessary to pick up your handset before pressing the star keys.

Andres Juan Sheppard: Please while we poll for questions.

Andres Juan Sheppard: And our first question comes from the line of Andreas Shepherd with Cantor Fitzgerald. Please proceed.

Andres Juan Sheppard: Hi, good morning everyone. Congratulations on the quarter and thanks for taking our questions.

Andres Juan Sheppard: Hi, good morning, everyone. Congratulations on the quarter and thanks for taking our questions.

JoeBen Bevirt: JoeBen, you know, I want to maybe start with the UAE. Obviously, a lot of movement and partnerships there. Curious to get your thoughts, you know, it almost seems fundamentally that the industry is perhaps moving more and more to ramp up commercialization there faster than in the U.S. Now, obviously, this is still contingent on certification, but just curious your thoughts on how you see that marketing developing, and particularly in the near term, you know, I get the sense that it's becoming.., maybe more and more scalable, faster. Just curious to get your thoughts. Thank you.

Andres Juan Sheppard: Jobin I wonder maybe start with the UAE, obviously, a lot of movement in partnerships there.

JoeBen Bevirt: Curious to get your thoughts you know it almost seems fundamentally that the industry is perhaps moving more and more to.

JoeBen Bevirt: <unk> ramp up commercialization there faster than than in the U S. Now obviously this is still contingent on certification, but just curious your thoughts on how you see that marketing developing and particularly in the near term.

JoeBen Bevirt: The sense that it's it's becoming.

JoeBen Bevirt: Maybe more and more scalable faster just curious to get your thoughts. Thank you.

Speaker Change: Thank you Andreas great.

JoeBen Bevirt: Great to hear from you. So we are seeing fantastic lean in.

JoeBen Bevirt: From all the different government agencies in in the UAE and we're very grateful for the for the support across the regulatory side the infrastructure side and.

JoeBen Bevirt: Yes, very excited about the momentum. I would say that all of the work that we're doing there is built upon the foundation of the work we've been doing for the last six years plus with the FAA and leverages everything that we're doing on stage four of the certification basis. So this is this is really a a box plus one opportunity for us in addition to the fantastic work we're doing with with the DOD as we prepare to take two aircraft to MacDill Air Force Base in Florida.

JoeBen Bevirt: Yes, very excited about the momentum I would say that all of the work that we're doing there is built upon the foundation.

JoeBen Bevirt: All of the work we've been doing for the last six years, plus with the FAA and Leverages everything that.

JoeBen Bevirt: We're doing on stage for the certification basis. So this is this is really a.

JoeBen Bevirt: Uh huh.

JoeBen Bevirt: <unk> plus one opportunity for us in addition to the fantastic work, we're doing with with the D. O D. As we prepare to take.

JoeBen Bevirt: Two aircraft to Macdill Air Force base in Florida.

Andres Juan Sheppard: Got it. Okay, that's super helpful. Thank you for that context. Maybe just a quick follow-up. Curious if we have a timeline as to when you would expect to roll out the, maybe the first conforming aircraft and, you know, how close are we to transitioning that conforming aircraft with a pilot on board? Thank you.

Speaker Change: Got it okay. That's super helpful. Thank you for that context.

Andres Juan Sheppard: Just a quick follow up.

Andres Juan Sheppard: Curious if we have a timeline as to when you would expect to rollout.

Andres Juan Sheppard: Maybe the first conforming aircraft and in in House.

Andres Juan Sheppard: How close are we to train seasoning that.

Andres Juan Sheppard: Conforming aircraft with a pilot on board. Thank you.

Didier Papadopoulos: Andres, thanks for the question. On that front, aligned with what we communicated in the previous quarter, in terms of our roadmap on that front, maybe reiterate, there's three key things that are required to make progress on conformity. One, making sure that we have our design released and submitted and accepted by the FAA. Two is developing our conforming manufacturing lines so that we can build to those designs. And then three, progressing towards stage four where you actually have the test plans against which you're gonna execute with your test assets.

Andres Juan Sheppard: John Thanks for the question.

Didier Papadopoulos: On that front aligned with what we communicated in the previous quarter in terms of our roadmap on that front.

Didier Papadopoulos: Maybe reiterate the three key things that are required to make progress on conformity one.

Didier Papadopoulos: Making sure that we have or design released and submitted and accepted by the FAA.

Didier Papadopoulos: Two is developed.

Didier Papadopoulos: Developing our conforming manufacturing lines. So that we can build to those designs and then city progressing towards stage for where do you actually have the test plans.

Didier Papadopoulos: Against what Youre going to execute with your test assets.

Didier Papadopoulos: As a reminder, there's no way around those three things and that's been our focus. And as you can see, we've been able to make progress on all these fronts and pretty happy with that. Now, you execute on these in three tiers, right?

Speaker Change: As a reminder, there is no way around those three things and that's been our focus and as you can see we've been able to make progress on all these fronts and pretty happy with that now you.

Didier Papadopoulos: You executed on these in three tiers right one.

Didier Papadopoulos: If we think about the pyramid we've talked about before, the components, the systems, and then you move into the aircraft. We talked about a lot of the component development and execution last year and how we're building on that this year, having submitted additional test plans on more components. But also now we're moving into the system level tier of that pyramid and again making progress on that. So you should expect us to continue to progress along that pyramid year towards the tip of the pyramid, which is the aircraft, in short order. We're well on track, as we discussed in our roadmap last year.

Didier Papadopoulos: Think about the program as we've talked about before the components. The systems and then you move into the aircraft.

Didier Papadopoulos: We've talked about a lot of the component development and execution last year and how we're building on that this year having submitted.

Didier Papadopoulos: Additional test plans on more components.

Kristine Liwag: And our next question comes from the line of Kristine Liwag with Morgan Stanley. Please proceed.

Didier Papadopoulos: But also now we're moving into the system level.

Kristine Liwag: Fear of that pyramid, and again, making progress on that so you should expect us to see a continued to progress along with us midyear towards.

Kristine Liwag: The tip of the pyramid, which is the aircrafts.

Kristine Liwag: In short order, we're well on track that we discussed in our road map last year.

Kristine Liwag: Yeah.

Kristine Liwag: And our next question comes from the line of Kristine <unk> with Morgan Stanley. Please proceed.

Kristine Liwag: Hey, good afternoon, everyone. Hey, Kristine.

Kristine Liwag: Hey, good afternoon, everyone.

JoeBen Bevirt: Thanks for joining us. Yeah, so, you know, look, it sounds like from your prepared remarks that things are progressing towards commercialization. You know, thank you for all the details you provided regarding your progress with the UAE. So, I guess, you know, for your first commercial mission, is this going to be an international route or, you know, with a country like the UAE, or is this going to be U.S. based? Any color on that would be helpful.

Kristine Liwag: Hey, Christine Thanks for joining.

JoeBen Bevirt: Yeah. So you know look it sounds like from your prepared remarks are things are progressing towards commercialization.

JoeBen Bevirt: Thank you for all the details you provided regarding your progress with the U a E. So so I guess you know for your first commercial mission.

JoeBen Bevirt: Is this going to be an international route or you know with a country like the U a E or is it going to be U S based any color on and that would be helpful.

JoeBen Bevirt: Okay.

JoeBen Bevirt: Hey, Kristine. Yeah, we we do see we do continue to see two really exciting paths forward, both here in the U. S. in New York and L. A. in partnership with with Delta as well as the path in the U. E. and the really significant lean in from the G. C. A. to, bring the opportunity for us to begin commercial service next year. So very excited about that. And again, on the DoD front, very pleased with the progress on that third pillar as well.

JoeBen Bevirt: Okay Christine Yeah, we are we.

JoeBen Bevirt: We do see we do continue to see two really exciting paths forward.

JoeBen Bevirt: Here in the U S in.

JoeBen Bevirt: New York and L. A.

JoeBen Bevirt: In partnership with with Delta as well as.

JoeBen Bevirt: The path in the UAE.

JoeBen Bevirt: And the really significant lean in from the GTA.

JoeBen Bevirt: Two.

JoeBen Bevirt: Bring the opportunity for us to begin commercial service next year, so very excited about that and again on the Vod front are very pleased with the progress on that on that third pillar as well.

Kristine Liwag: And then when we look at, you know, other routes, like, you know, I'm sure as you know, the aircraft is nearing certification, you're studying some of these routes a little closer. Do you have any updated view regarding, you know, price that you're going to charge for some of these routes? And then as you're evaluating, you know, US and international opportunities, like what city pairs or within which cities and stops are you really looking at? What are the economics of that? Any additional detail about actual operations would be helpful.

Kristine Liwag: Great and then when we look at you know other routes like you know I'm sure as you know the aircraft is nearing certification you're studying some of these rates a little closer do you have any updated view regarding you know a price that youre going to charge for some of these routes and then as you're evaluating you.

Kristine Liwag: And our international opportunities like what city pairs or within which cities and stops are you really looking at what are the economics of that any additional detail about actual operations would be helpful.

Paul Cahill Sciarra: Thanks a lot for the question, Kristine. This is Paul.

Speaker Change: Thanks, a lot for the question Christine This Paul.

Paul Cahill Sciarra: <unk>.

Paul Cahill Sciarra: We're obviously very much deep in the evaluation of routes to understand price elasticity and understand demand across them. And that goes for the geographies that we're looking at here in the U.S. And now, more recently, both in Dubai and then more broadly across the UAE, given the recent. We don't have any updates to our broad thinking around economics, except to say both in the U.S. as we think about New York and L.A. and obviously as we think about Dubai and the broader UAE, all of those are areas that have relatively high propensity to pay.

Paul: We're obviously very much deep in the evaluation of routes to understand price elasticity and understand demand across them.

Paul Cahill Sciarra: And that goes for the geographies that we're looking at here in the U S and now more recently, both in Dubai, and then more broadly across the UAE given the recent announcements.

Paul Cahill Sciarra: We don't have any updates to the our broad thinking around economics.

Paul Cahill Sciarra: Except to say both in the U S. As we think about New York and L. A and obviously as we think about Dubai and that brought our UAE.

Paul Cahill Sciarra: All of those are areas that have relatively high propensity to pay they've.

Paul Cahill Sciarra: They've got difficult, in many cases, very difficult infrastructure to navigate on the ground. So they're really sort of tailor-made locations as we think about the first few locations for launch. I mean, I think we're very deep on the UAE side. So, you know, there are 14 million tourists there. There is a large number of sites across the various emirates that are not so easy to access, and I think that that demand profile is going to look very favorable, but we're not yet at a point where we're going to kind of talk about the specifics around what that's going to look like, although the work is ongoing, and we hope to have updates on that. Great, thank you.

Paul Cahill Sciarra: They've got difficult in many cases very difficult infrastructure should navigate on the ground. So there are really sort of tailor made locations as we think about the first few locations for launch.

Paul Cahill Sciarra: <unk>.

Paul Cahill Sciarra: I mean, I think we're very much deeper in the UAE side. So there.

Paul Cahill Sciarra: There are 14 million tourists there.

Paul Cahill Sciarra: There is a large number of <unk>.

Paul Cahill Sciarra: Sites across the various Emirates that are not so easy to access and I think that that demand profile is going to look very favorable, but we're not yet at a point, where we're going to.

Paul Cahill Sciarra: Kind of talk about the specifics around what that's going to look like although the work is ongoing and we hope to have updates on that too.

Kristine Liwag: Great, thank you, and looking forward to seeing that progress.

Speaker Change: Great. Thank you and looking forward to seeing that progress.

Sabi Seif: And the next question comes from the line of Sabi Seif with Raymond James. Please proceed.

Kristine Liwag: And the next question comes from the line of Savi <unk> with Raymond James. Please proceed.

Didier Papadopoulos: Hey, good afternoon everyone. Just on the flight campaign, can you talk about, you know, the type of flying that's been done on the pre-production aircraft versus the production aircraft, including, you know, what are the differences between the two? Any notable differences between the two as you operate them?

Sabi Seif: Hey, good afternoon, everyone.

Didier Papadopoulos: Just on that the flight campaign could you talk about you know the type of flying that sits on on the pre production aircraft versus production aircraft and including you know what are the differences between the two and any notable differences between the tiers you operate them.

Didier Papadopoulos: Yeah, sorry, thanks for the great question. So the The campaign that we just completed on the earlier airplane was obviously extremely successful, right? 1,500 flights, 33,000 miles, and it covered a lot of aspects in terms of aircraft performance, maintainability, and so on that we talked about earlier. And one of the key things that it identified is that the fundamental design of the airplane is solid, and it delivers on the mission that it has.

Speaker Change: Yeah, Hey, sorry, thanks for the Great question so the.

Didier Papadopoulos: Campaign that we just completed on the earlier airplane was obviously extremely successful right.

Didier Papadopoulos: 1500 slides 33000 miles.

Didier Papadopoulos: It covered a lot of aspects.

Didier Papadopoulos: In terms of our performance maintainability and so although we talked about earlier.

Didier Papadopoulos: And one of the key things that are it's identified as the fundamental design of the airplane is solid and it delivers on the mission.

Didier Papadopoulos: The difference between that aircraft and the aircraft that we're producing right now from the manufacturing line is that the airplanes coming out of the line right now are effectively being built under our production manufacturing line, following our quality management system, which really drives us and progresses us towards the production certificate. Right, so as a reminder, we need a tech certificate, a production certificate, and operational certificates, right, that Bonnie talked about. That production certificate element is one of the unique things and really exciting things to be exercising right now with the airplanes rolling out the lines right now.

Didier Papadopoulos: As the difference between the aircraft and the aircraft that were producing right now from the manufacturing line is that the airplanes coming out of the law right now are effectively.

Didier Papadopoulos: Being built under our production manufacturing line, following our quality management system, which really drives us and progressive thus worst production certificates.

Didier Papadopoulos: Right. So as a reminder, we need a type certificate production certificate and operational certificates right. There Bonnie talked about that production certificates element is one of the unique things and really exciting things to be exercising right now with the airplanes are rolling off the lines right now.

Sabi Seif: That's helpful. And then the type of flying is just kind of progressing the same way as you did with the first one.

Speaker Change: That's helpful. And then the type of flying is it just kind of progressing at the same way is if you did but the first one.

Didier Papadopoulos: Absolutely, very similar type of flying between all these airplanes.

Sabi Seif: Absolutely very similar type of flying between all these airplanes.

Sabi Seif: Got it. And I appreciate the color on the operations side. I was just wondering, you know, we've gone from famine last year to feast this year on pilot availability for the mainline and cargo airlines. But generally, I think pilot supply is going to kind of remain tight over a longer period of time. So, I don't know, Bonnie, do you have any thoughts if Joby can be the solution for the Part 121 operators?

Speaker Change: Got it and I appreciate the color on the operation side and I was just wondering you know we've gone from famine last year. The thesis you on pilot availability for the mainline and cargo airlines, but generally I think pilot supply is going to kind of remain tied over a longer period of time and Bonnie do you have any thoughts and Jody can be the solution for the part 121 operator.

Sabi Seif: And also just as you look to stand up operations, just how long before you launch operations do you need to start building your own pilot supply? Oh, thank you, and it's great to be joining the team.

Sabi Seif: And also just as you look to stand up operations, just how long before you launch operations do you need to start building your own pilots fly.

Bonnie Simme: Thank you, and it's great to be joining the team here on the call, and thank you for the question. This is definitely right down my alley.

Bonnie Simme: Oh, Thank you and it's great to be joining the team here on the call and thank you for the question. This is definitely write down my Alley, you know as a pilot for 30 years I know that the shortage has been a factor off and on.

Bonnie Simme: You know, as a pilot for 30 years, I know that the shortage has been a factor off and on for years, but we're not concerned, because for us in the early years of operations, we're going to utilize what we call an initial cadre of experienced pilots that draw from a demand of two focus areas. One, there's a group of pilots, initial cadre, who enjoy being part of new aircraft introductions. And so, even now, we constantly get outreach from pilots who want to be part of something new, and these are very experienced pilots.

Bonnie Simme: For years, and but we're not concerned because for us in the early years of operations, we're going to utilize what we call an initial cadre of experienced pilots that drop in.

Bonnie Simme: Demand of two focus areas one there's a group of pilots initial cadre, who enjoy being part of new aircraft introductions and so even now we constantly get outreach from pilots you want to be part of something new.

Bonnie Simme: These are very experienced pilots and then as a part of that myself and as a mother a.

Bonnie Simme: And then, as a pilot of myself, and as a mother, you know, I know a significant number of pilots who really favor solutions of being home every night. Military pilots tired of being away from home, and mothers and fathers trying to raise a kid. And so, this is a solution for them. So, there are many female pilots, in particular, who opted out of – they got their commercial pilot's license, and then they decided that it just wasn't going to work for them. So, bringing them back into the fold.

Bonnie Simme: I know a significant number of pilots, who really favorite solutions are being home every night military pilots tired of being away from away from home and mothers and fathers trying to raise the raise the kit.

Bonnie Simme: And so this is a solution for them. So there are many female hires in particular, who opted out and they got their commercial pilot's license and then they decided that it just wasn't going to work for them, so bringing them back into the fold.

David Michael Zazula: And then, behind that group of several hundred pilots for our initial cadre, we're already building a pipeline of pilots. So, we've got a Joby Aviation Academy, where we're building out a Part 141 program. We're starting with our employees, and then ramping that up, so that'll sync in time for us to scale our service. And yes, we actually look at our solution as a piece of the solution for the broader 121, because pilots will spend a couple years with us, and some may move on to the airlines, and some actually will find the lifestyle very favorable.

Bonnie Simme: And then the high end of that group of several hundred pilots for our initial cadre. We're already building our pipeline of pilot. So we've got Adobe Aviation Academy, where we are.

David Michael Zazula: Building out a part 141 program, we're starting with our employees and then ramping that up so that will sink in time for us to too.

David Michael Zazula: To scale.

David Michael Zazula: Yes, we actually look at our solution as a piece of the solution for the broader $1 21, because pilots will spend a couple of years with us and some may move on to the airlines and some actually we will find the lifestyle very favorable for them.

Speaker Change: That's helpful. Thank you.

David Michael Zazula: And the next question comes from the line of David Zazula with Barclays. Please proceed.

David Michael Zazula: And the next question comes from the line of David Zarzuela with Barclays. Please proceed.

Didier Papadopoulos: Hey, thanks for taking the question. Good afternoon. First one is for Didier, if I could just get a little more color on the electric storage qualification plans that you've submitted, any feedback you've gotten from the FAA on that and what the plan is to progress along electric storage and propulsion certification kind of in the near term.

David Michael Zazula: Hey, Thanks for my taking.

Didier Papadopoulos: Yeah, so in general, the electrical system distribution system has multiple test plans that we submit to the FAA. Some of them are associated with qualification and relating to the environment. For example, others are operational in terms of being able to manage the state of charge of the aircraft. So they vary in multiple areas.

David Michael Zazula: Taking my question good afternoon.

Didier Papadopoulos: First one is for Didier.

Speaker Change: If I could just get a little more color on the electric storage qualification plans that you've submitted.

Didier Papadopoulos: Feedback you've gotten from the FAA on that and what the.

Didier Papadopoulos: Plan is progressing along with electric storage and propulsion.

Didier Papadopoulos: Certification kind of in the near term.

Didier Papadopoulos: Yeah, So in general all the electrical.

Didier Papadopoulos: System distribution system has multiple.

Didier Papadopoulos: Thus far is that we submit to the FAA some of them are associated with qualification and relating to the environments. For example, others are operational in terms of.

Didier Papadopoulos: Being able to manage the sale of charged off the aircrafts. So they vary in multiple areas I think one thing that's really important and relating to your question about the feedback is most of these have been and work with the FAA for multiple years right. So for the most part those are not things that we're dropping on the FAA for the first time they have been.

David Michael Zazula: I think one thing that's really important relating to your question about the feedback is most of these have been in work with the FAA for multiple years, right? So, for the most part, those are not things that we're dropping on the FAA for the first time here. They've been going back and forth with the FAA on multiple occasions. They're the result of not only discussions with the FAA, but also, more importantly, the result of actual flights that we've executed on the two airplanes over the past four years.

David Michael Zazula: Going back and forth with the FAA on multiple occasions.

David Michael Zazula: The result.

David Michael Zazula: The result of not only discussions.

David Michael Zazula: With the FAA, but also more importantly, the result of actual flights that we've executed on the two airplanes over the past four years so the.

David Michael Zazula: So, the results are really, exchanges are really positive with the FAA. In fact, just before this call, we were on a call with the FAA discussing that as well as a visit. They're coming to Joby to discuss some of the remaining items. So, overall, very, very positive. Maybe one last item on that. And that's what really gives us the ability and the commitment to go and invest in testing facilities that we've talked about in a few minutes ago. The investments we have in our battery facilities are really a testament to the confidence we have with those test plans.

David Michael Zazula: The results are really exchanges are really positive with the FAA.

David Michael Zazula: Just before this call we were on a call with the FAA discussing beds as well as the visit there.

David Michael Zazula: Coming to jewelry to discuss some of the remaining items. So overall very very positive maybe one last item on that and that's what really gives us the.

David Michael Zazula: The ability and the commitment to go and invest and testing facilities like we've talked about.

David Michael Zazula: In a few minutes ago.

David Michael Zazula: <unk>, we have in our battery.

David Michael Zazula: About 30 facilities are really a testament to the confidence we have with those customers.

JoeBen Bevirt: Thanks, very helpful. And if I could just follow up on an earlier question, specific to the exclusivity in the UAA agreement. Could you just give a little more on the level of exclusivity that you're expecting to see there out of the agreement and then how that would play into, you know, the inter-emirate travel that I think you mentioned in the letter? Yeah, so.

Speaker Change: Thanks, very helpful and if I can just follow up on an earlier question specific.

JoeBen Bevirt: Specific to the exclusivity in the USAA agreement.

JoeBen Bevirt: Can you just give a little more on the level of exclusivity that you're expecting to see there out of the agreement and then how that would play into the interim birth travel then I think you mentioned in the letter.

JoeBen Bevirt: Yeah, so again, we have a six-year exclusive for providing air taxi service in the Emirate of Dubai, and that is granted to us by the RTA, which is the authority that has been given the purview to regulate air taxis. And so this is a partnership that we've been working on since 2018, 2017, 2018, and it's fantastic to see it coming to fruition. And very grateful for Bonnie and the operations team for leaning in on preparing for operations there and also very grateful for Didier and the certification team on the work they're doing with the GCA to begin laying the groundwork for type certification.

JoeBen Bevirt: Yeah. So again, we have a six year exclusive for providing air taxi service in the Emirate of Dubai and that is granted to us by the RTA, which is the authority that has.

JoeBen Bevirt: <unk> been given the purview to regulate their taxes and.

JoeBen Bevirt: So this is a partnership that we've been.

JoeBen Bevirt: Working on since 2018, 2017, 2018, and it's fantastic to see it coming to fruition and.

JoeBen Bevirt: Very grateful for Bonnie and the operations team for for leaning in on on preparing for operations. There and also very grateful for <unk> certification team on.

JoeBen Bevirt: On the work, they're doing with the GTA to begin.

JoeBen Bevirt: Laying the groundwork for type certification. So again, we're very pleased with the progress.

JoeBen Bevirt: So again, we're very pleased with the progress in the UAE as we are very pleased with the progress that we're making here in the U.S. with the FAA and the excitement that we're seeing from countries around the world for this really important new technology.

JoeBen Bevirt: In the UAE as we are very pleased with the progress that we're making here in the U S with the FAA and and the excitement that we're seeing from.

JoeBen Bevirt: Countries around the world for this really important new technology.

Edison Yu: And the next question comes from the line of Edison Yu with Deutsche Bank. Please proceed.

JoeBen Bevirt: And the next question comes from the line of Edison <unk> with Deutsche Bank. Please proceed.

Edison Yu: Hey, thanks for taking our questions. First one on CERT. I'm wondering if we have some sort of scenario analysis we can maybe share in terms of what kind of timeline FAA may be on. I know it's a tough question to respond to, but it just seems things are definitely delayed and moving slower.

Edison Yu: Hey, Thanks for taking our questions first one is search and I'm wondering if we have some sort of scenario analysis. We can maybe share in terms of what kind of timeline, maybe art I know, it's a tough question to respond to but it just seems things are definitely delayed.

Edison Yu: And moving slower so could you maybe share kind of some scenarios you could see on maybe when we could get to the finish line and what would be the gating factors.

Didier Papadopoulos: So could you maybe share

Speaker Change: Yes, thanks for the question Edison.

Edison Yu: Yeah, thanks for the question, Edison, remain very excited about the engagement on the FAA side and the progress that we're making on all fronts. Like we said earlier, a lot of our focus primarily this quarter has been in three key areas as it relates to FAA. One, we're really excited about the G1 being signed and published in the Federal Register.

Didier Papadopoulos: We remain very excited about the engagement on the FAA side and the progress that.

Edison Yu: We're making on all fronts like we said earlier a lot of our focus.

Edison Yu: Primarily this quarter there hasn't been in three key areas as it relates to.

Edison Yu: One.

Edison Yu: We're really excited about the G. One.

Edison Yu: Being signed and published in.

Didier Papadopoulos: But as we said in the last quarter, This one came in with more prescriptive details on the showing compliance elements, which led to additional updates that were needed to the means of compliances and the area-specific certification plans. So the FAA had to work with us to support some of these refreshes, and we spent quite a bit of time making great progress on that front. Number two, we continue to make progress on submitting test plans that I talked about earlier, which now covers a broader range of types of test plans we submitted, such as equipment and system-level test plans.

Edison Yu: In the Federal Register, but as we said in last quarter.

Didier Papadopoulos: This you won't came in with more prescriptive details on the showing compliance elements, which led.

Didier Papadopoulos: Led to additional updates that were needed to their means of compliance is in the area of specific simplification plans. So the FAA has to work with us to support some of these refreshes and we spend quite a bit of time, making great progress on that front.

Didier Papadopoulos: Number two we continued to make progress on submitting just plans on what I talked about earlier.

Didier Papadopoulos: <unk> now covers a broader range of types of stuff plans, we submitted such as equipment and system level test plants.

Didier Papadopoulos: But third, and probably most importantly for me, a lot of the work has been going on and really upgrading a lot of the test assets that we have here, which is really, really essential. When you think about the level of vertical integration at Joby, which is really unique to our success story, and then our plans and ability to deliver and execute on these in the second half with Stage 4, those were some amazing achievements and effectively where we spent a lot of our time purposefully this quarter.

Didier Papadopoulos: Third and probably most importantly for me.

Didier Papadopoulos: A lot of the work has been going on.

Didier Papadopoulos: Really upgrading a lot of the tests assets that we have here, which is really really essentially when you think about the level of vertical integration.

Didier Papadopoulos: Tobey, which is really unique.

Didier Papadopoulos: Success story, and then our <unk>.

Didier Papadopoulos: And ability to deliver and execute on deals in the second half with stage four.

Didier Papadopoulos: Those were some amazing achievements and effectively where we spent a lot of our time purposefully this quarter.

Didier Papadopoulos: Yeah.

Edison Yu: A follow-up on the Middle East and actually just more on international. I know we're not giving any specifics on the assumptions or the economics, but in terms of the go-to-market or the business model at a high level. Is this something, are you planning to, for example, in the Middle East, to operate it, to sell it directly? How do we think about just how the go-to-market will look like, or the business model will look like? Thanks.

Speaker Change: I understood.

Speaker Change: I'll follow up on on Middle East and actually just more on international I know, we're not giving any specifics on the assumptions are the economics, but in terms of the go to market with a business model at a high level.

Edison Yu: Is this something are you planning to for example in the middle East to to operate it to sell it direct how do we think about just how the go to market, we'll look like or the business model will look like.

Paul Cahill Sciarra: Thanks a lot, Edison. This is Paul.

Speaker Change: Thanks, a lot at Edison.

Edison Yu: This is Paul so with respect to our planned operations in Dubai.

Paul Cahill Sciarra: So with respect to our planned operations in Dubai, we're going to be doing a lot of the work with respect to both operating those aircraft. That's in line with the agreements that we've made with RTA, and we expect that to extend across the Emirates as we think about expanding that service. So that's going to look really similar to how we think about commercial operations here in the U.S. Now all that said... And there may have been, misinformation or sort of misconstrual from some folks on this.

Paul: We're going to be doing a lot of the work with respect to both operating those aircraft. That's in line with the agreements that we've made with RTA and we expect that to extend across the Emirates. As we think about extending that serve us. So that's going to look really similar to how we think about commercial operations here in the U S. Now.

Paul Cahill Sciarra: Now all that said.

Paul Cahill Sciarra: And there may have been some sort of.

Paul Cahill Sciarra: Misinformation or sort of misconstrue Ole.

Paul Cahill Sciarra: From some folks on this we've always been very flexible as we think about what is the right way to commercialize so.

Paul Cahill Sciarra: We've always been very flexible as we think about what is the right way to commercial. So when we think about customers like the DoD, for example, that is very much going to look like over a long arc, um something like a sale of aircraft with sort of ongoing maintenance and support that's sort of recurring on the back end. So Joby has two different ways that we're thinking about going after the market.

Paul Cahill Sciarra: So when we think about customers like the Dod for example that is very much going to look like over a long arc.

Paul Cahill Sciarra: Something like a sale of aircraft with sort of ongoing maintenance and support that sort of recurring on the backend. So jobete has.

Paul Cahill Sciarra: Some cases where we're likely to be very vertically integrated, we're actually doing the operations ourselves, and a set of customers and potentially geographies where our commercialization looks a lot more like aircraft sale. And you've already seen that really play out in the way that we're thinking about, say, the UAE market and in turn the DoD as a customer. And we're going to maintain that flexibility as we think about continuing to expand our modes of commercialization over the next 12 to 18 months. Thank you. And our last question will come from the line of Austin Moeller.

Paul Cahill Sciarra: Two different ways that we're thinking about going after the market. Some cases, where we're likely to be very vertically integrated we're actually doing the operations ourselves and a set of customers and potentially geographies, where our commercialization looks a lot more like aircraft sale and you've already seen that really play out.

Austin Nathan Moeller: In the way that we're thinking about say the UAE market and in turn the Dod as a customer and we're going to maintain that flexibility as we think about continuing to expand.

Paul Cahill Sciarra: Our modes of commercialization over the next 12 to 18 months.

Austin Nathan Moeller: Thank you Andrew.

Paul Cahill Sciarra: And our last question will come from the line of Austin Moeller with Canaccord Genuity. Please proceed.

Austin Nathan Moeller: And our last question will come from the line of Austin Moeller with Kennecourt Genuity. Hi, good afternoon. Just my first question here. Can you differentiate between the keyhole?

Austin Nathan Moeller: Hi, Good afternoon, just my first question here can you differentiate the key hardware differences between your previous viable prototypes and the current production heres aircrafts that are rolling off off the line at Marine and Al.

Didier Papadopoulos: Yeah, hey, Austin. This is Didier.

Austin Nathan Moeller: Yeah, Hey, Austin This is a great question so.

Didier Papadopoulos: Great question. So The differences between, Some of the electronics components, for example, or the actuation systems are primarily, I would say, evolutions between the previous aircraft and the ones coming out of the manufacturing line. The vast majority of these fit in primarily, I would say, two categories. One is expanding, for example, the environment or the flight envelope for these pieces of equipment. So, think about temperatures, for example, vibration and so on.

Didier Papadopoulos: <unk>.

Austin Nathan Moeller: The differences between.

Didier Papadopoulos: Some of the electronics components for example, or the actuation systems are primarily I would say evolutions.

Didier Papadopoulos: Queen the previous aircraft and the ones coming out of the manufacturing line.

Didier Papadopoulos: And the other set is really associated with learnings that we've collected over time relating to expanding, for example, the reliability aspects of these. So the changes are, again, an evolution based on the four years of collected data from those who are.

Didier Papadopoulos: Majority of these fits and primarily I would say two categories.

Didier Papadopoulos: One is expanding for example, the environment or the flight envelope for these pieces of equipment. So think about temperatures for example.

Didier Papadopoulos: Vibration and so on and the other is really associated with our learnings that we've collected over time relating to expanding for example, the reliability aspects of these equipments. So the changes are again on an evolution.

Didier Papadopoulos: Based on the 40 years of collected data from those two airplanes.

Speaker Change: Great and any updates on your relationship with Toyota and if for how they might become the contract manufacturer overtime, all youre running flight operations.

JoeBen Bevirt: Yeah, so as I mentioned, this is JoeBen, as I mentioned, the The partnership with Toyota has has been incredibly valuable for us. They've had team members on site with us here in California since 2019.

Didier Papadopoulos: Yes, so as I mentioned this is joanne.

JoeBen Bevirt: As I mentioned, we are the.

JoeBen Bevirt: The partnership with Toyota has has been incredibly valuable for US they've had team members on site with US here in California, since 2019 and as.

JoeBen Bevirt: And as well as an incredible team working alongside us back in Japan. And, as many of you know, Toyota is one of the most incredible companies in the world when it comes to manufacturing very complex systems at a very large scale with just spectacular quality. And so having them working shoulder to shoulder with us as we planned our manufacturing expansion in Marina, as we were looking at the layout of our phase one manufacturing facility and planning for that. And then even looking beyond that, they are the best partner that I could ever imagine.

JoeBen Bevirt: As well as an incredible team are working.

JoeBen Bevirt: Alongside us back in Japan and I.

JoeBen Bevirt: I think as many of you know toward us.

JoeBen Bevirt: One of the most incredible companies in the world when it comes to manufacturing.

JoeBen Bevirt: Very complex systems.

JoeBen Bevirt: At very large scale with just spectacular quality and so having them.

JoeBen Bevirt: Working shoulder to shoulder with us says, where we planned our manufacturing expansion in Marina, Yes, we're looking to the layout of our phase one manufacturing facility in planning for that and then even looking beyond that are there.

JoeBen Bevirt: And it was, as I mentioned, incredible to have Shige-san as well as Kaito-san and Ohara-san, all join us and visit us this last quarter. We We couldn't be more pleased with the support that we're receiving and optimistic about the path in the future alongside Toyota as we shift from a development phase into a scaling phase. And I think is that our final question? Should I?

Speaker Change: They are.

JoeBen Bevirt: The best partner that I could ever imagine and it was as I mentioned incredible to have she gets on as well as our guide us on and Oh horizontal.

JoeBen Bevirt: Oh.

JoeBen Bevirt: Join us and visit US this last quarter we.

JoeBen Bevirt: We couldnt be more pleased with the support that we're receiving and are optimistic about the path in the future alongside Toyota as.

JoeBen Bevirt: As we.

JoeBen Bevirt: Shift to from.

JoeBen Bevirt: From a development phase into a scaling phase and I think it is.

JoeBen Bevirt: So, I think just as we are closing, I would like to talk about the incredible opportunity that we see in front of us as a company. We are so proud of the team we're building and the way that we're approaching building this new industry. We think that our vertical integration is our superpower and that I think of this very akin to the early days of automobile manufacturing in the late 1890s, when we were making cars in very small volumes, and I see the decades that lie ahead of us as incredibly exciting as we take to the air as a civilization.

JoeBen Bevirt: Is that our final question should I. So I think just as we are in closing I would like to.

JoeBen Bevirt:

JoeBen Bevirt:

JoeBen Bevirt: Talk about.

JoeBen Bevirt: What a.

JoeBen Bevirt: Incredible opportunity that we see in front of us as a company. We are so proud of the team we're building and the the way that we're approaching.

JoeBen Bevirt: <unk>.

JoeBen Bevirt: Building this new industry, we think that our that our vertical integration is our superpower and debt.

JoeBen Bevirt: <unk>.

JoeBen Bevirt: I think of this very akin to the early days of automotive.

JoeBen Bevirt: In the late 18, nineties and where.

JoeBen Bevirt: We were making cars in very small volumes and I see the decades that lie ahead of us.

JoeBen Bevirt: Incredibly exciting as we take.

JoeBen Bevirt: To the air.

JoeBen Bevirt: As a civilization and so I'm I'm really really please.

JoeBen Bevirt: And so I'm, I'm really, really. Pleased with the team we're building, the culture we're building, and the technologies we've developed, and really look forward to talking to you all again next quarter. Thank you all so much. Thank you. This concludes.

JoeBen Bevirt: Pleased with with the with the team we're building the culture, we're building and the technologies, we've developed and really look forward to talking to you. All again next quarter. Thank you all so much.

Operator: Thank you. This concludes today's conference. You may now disconnect your lines at this time. Enjoy the rest of your day. [inaudible]

Speaker Change: Thank you. This concludes today's conference you may now disconnect your lines at this time and enjoy the rest of your day.

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Operator: [music].