Q1 2025 Joby Aviation Inc Earnings Call
The End
Speaker Change: Greetings, and welcome to the Joby Aviation First Quarter Fiscal Year 2025 Financial Results Conference Call and Webcast. At this time, I will participate in turning this in only mode. If anyone wants to require operator assistance, please press star zero on your telephone
A question and answer session, we'll follow the formal presentation. We'll follow the formal presentation.
Speaker Change: You may be placing the question cue at any time by pressing star one on your telephone keypad, and we ask you please ask one question and one follow up then return to the cue. As a reminder this conference is being recorded.
Speaker Change: It's time I pleasure to introduce your host Teresa Thuruthiyil, Head of Investor Relations. Teresa, please go ahead.
Speaker Change: Thank you. Good afternoon and evening everyone. Thank you for joining us for Joby Aviation's first quarter 2025 Financial Results Conference call. My name is Teresa Thuruthiyil and I'm Joby's Head of Investor Relations.
Speaker Change: During the call today, we will have remarks from Joe Ben Bevirt, Founder and Chief Executive Officer, and Paul Sciarra Executive Chairman
Speaker Change: Please note that our discussion today will include statements regarding future events and financial performance, as well as statements of belief, expectation, and intent.
Speaker Change: 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.
Speaker Change: For a more detailed discussion of these risks and uncertainties, please refer to our filings with BSEC and the Safe Harbor disclaimer contained in today's shareholder letter.
Speaker Change: 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.
Thank you for watching!
Speaker Change: Also, during the call, we'll refer both to gap and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in the Q1 2025 shareholder letter, which you can find on our investor relations website, along with the replay of this call.
Speaker Change: And with all of that said, I'll now turn the call over to JoeBen.
Joe Bennett: Thank you Teresa, and thank you everyone for joining us today as we discuss our first quarter 2025 results.
Thank you. Thank you. Thank you.
Joe Bennett: It's only been a short 10 weeks since we last spoke, but in that time the entire team at OB has continued to deliver with incredible momentum.
Joe Bennett: Posting another quarter of record progress on certification, flying through transition with a pilot on board for the first time, announcing a partnership with Virgin Atlantic to bring our service to the UK, and powering on yet another aircraft from our production line.
Joe Bennett: All of these achievements speak to Joebe's leadership in our sector and keep us on track to deliver on the two core goals I set out in our last call to start flight testing in Dubai in the F.A. within 12 months.
Thank you for watching!
Joe Bennett: During our last call, I talked about the record progress we'd seen on the fourth stage of the certification process
Joe Bennett: And today I'm pleased to say that despite it being a shorter quarter, we actually beat last quarter's record, accelerating forward by a full 12 percentage points on the FAA side and moving the Joby side up to 62 percent complete.
Joe Bennett: This is critically important progress because each plan we sign off with the FAA is a step towards unlocking TIA flights.
Joe Bennett: A signed-off test plan allows us to move forward with building a test article and then testing it, a necessary step before beginning those flights.
Joe Bennett: Also during our last call, I noted that we hit our production target of delivering parts equivalent to one aircraft per month.
Joe Bennett: At the time, I said that this would give us the parts and the aircraft to complete unprecedented levels of component and subcomponent tests alongside an increasing cadence of lights.
And our team really took that to heart.
Joe Bennett: This last quarter was our busiest yet for flight tests, with five aircraft and two full flight test crews performing flights in both Marina and an Edwards Air Force Base.
Often simultaneously. [inaudible]
with as many as eight fights per day.
Joe Bennett: I want to stress that certifying an aircraft particularly a new design requires you to build and fly aircraft.
and the more the better.
Joe Bennett: It's been great to see so much activity in these teams, and we believe it puts us in an industry-leading position to achieve type certification.
Joe Bennett: A lot of the testing we completed at Edwards was supporting one of Joeby's most important achievements to date, flying aircraft through transition with a pilot on board controlling the aircraft.
Joe Bennett: The seamless transition between vertical and horizontal flight has long been considered one of the most challenging technological feats in aerospace. But as our cheap test pilot buddy put it, the aircraft flew exactly as we expected, with excellent handling qualities and low
Since Buddy made the first transition to Wingborne flight.
Joe Bennett: Two other Joby pilots have done the same, and importantly, pilot on board transition flight has now become a routine part of our flight testing.
Joe Bennett: and were the first EV talk company to be able to say that.
Joe Bennett: Moving from one historic transition flight to routine pilot on board transitions was an almost overnight process for Joby.
Joe Bennett: But it was built on years of methodical testing and planning.
Thank you for watching!
Joe Bennett: We had already flown hundreds and hundreds of transitions without a pilot on board, and we had completed thousands of tests, both on the ground, in our integrated test lab, and in the air, all of which made them move to piloted transitions so smooth.
Joe Bennett: In order to support our move to inhabit a transition flight, we completed a round of testing at Edwards to prove out the redundancy that's designed into our aircraft.
Joe Bennett: From the very beginning, we've been intentional about building layers of redundancy and fault tolerance into our design And in this campaign, we demonstrated just how valuable those design choices are and ensuring the safety and reliability of our aircraft.
Joe Bennett: In separate tests, we disabled one of the two tilt mechanisms on each propeller, one of the four battery packs, and two of the six propulsion stations.
Joe Bennett: And in each case, we were able to maintain safe life and execute a vertical landing with no changes to the procedures that our pilots used to fly the aircraft.
Joe Bennett: I'd encourage you to go and watch the footage of this testing that we published online earlier this week because it's an incredible validation of the long-term planning and vision behind a rare craft and its safety systems.
Joe Bennett: It's also, again, to our knowledge, first in the industry.
Speaker Change: Azak Reader, the Joby-Test pilot who led the campaign, put it, success is super boring and if you watch it, you'll see that those flights look just like any other.
Speaker Change: The success of this testing, along with the inhabited transition that followed, are a testament to the professionalism and dedication of our team.
Speaker Change: and they are a major unlock. First, for the flight testing we plan to complete in Dubai in the middle of this year, and second, for beginning TA flights with the FAA. [inaudible]
Speaker Change: And as we prepare to send that first aircraft to Dubai, the next aircraft to roll off our pilot production line will soon join our fleet, having already been powered on for the first time.
Speaker Change: with each aircraft that rolls off our pilot production line. And this is the fifth we learn more about building and scaling our manufacturing.
Speaker Change: We learn how to do things smarter, faster, cheaper, and more efficiently [inaudible]
Speaker Change: These lessons will be valuable to us as we start to fit out our new expanded facility in Marina, which is nearing completion and is set to be handed over to us next month.
Speaker Change: This building will not only double our manufacturing footprint, it will also house our certified full-motion flight simulator that set to arrive before the end of the year.
Speaker Change: You have to do the hard miles, and that means building, testing, and flying aircraft over and over again.
Speaker Change: In theory, it's an appealing idea to jump straight to certifiable aircraft and straight to higher manufacturing scales, but it is never successful in practice.
Speaker Change: And so, as we grow in Marina, and in Ohio, I'm incredibly grateful that we invested in the stepwise scaling of our manufacturing years ago, so that we have the same head start in manufacturing as we do in certification.
Thank you for watching!
Speaker Change: Unconfident that all this progress, the tangible, countable progress on certification, the demonstrated flight hours and transition flights, and rolling yet another aircraft off our production line, puts Joe be firmly in a leadership position in our sector.
Speaker Change: And with the US government leaning in on both the state and federal level.
Speaker Change: We are securing America's leadership role in the adoption of this important new technology.
Speaker Change: Last week, I was in Washington, D.C., and had the opportunity to meet with a number of key leaders who are working to ensure the successful implementation of advanced air mobility.
Speaker Change: We had important conversations with the Secretary of Transportation, Sean Duffy, Acting FAA Administrator Chris Roselo, FAA Head of Certification, Caitlin Locke, FAA Head of White Standards, Robert Ruiz
Speaker Change: and a number of key members of the House and Senate, as well as leadership within the White House, including director Michael Crazios from the Office of Science, Technology, and Policy.
Speaker Change: In every case, we heard strong support for ensuring there is a clear path to certification and commercial operations for Jovi, and that this path can be leveraged as we begin service in key countries around the world.
Speaker Change: As we look to those opportunities around the world, one of the most exciting we see is in the UK, and I'd like to take a moment to highlight the announcement we made this quarter with Virgin Atlantic.
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Speaker Change: We couldn't have hoped for a better partner to work with in the UK.
Speaker Change: Virgin is paying for its customer service and commitment tax loans, and of course, they're already part of the family, being closely affiliated with Delta Airlines.
Speaker Change: I spent a great deal of time with their CEO Sci, and together we're incredibly excited about our plans to deliver air taxi services in the UK, starting with the Virgin Hubs at London Heathrow in Manchester.
Speaker Change: Like Delta, Uber, Toyota, and A&A, Virgin is another example of Joe's ability to attract world-class partners who share our vision for the future and are excited to lead the way on the development of this important new market.
Speaker Change: Paul, I'll hand it over to you to take us through the numbers in a moment but before I do I'm pleased to confirm that Rodriguez Romana will be joining us as our Chief Financial Officer later this month.
Speaker Change: Rodrigo is not only a seasoned Silicon Valley CFO with experience working in global finance operations at HPE, Amazon and eBay, but he's also an aviation enthusiast who has a degree in engineering and a background optimizing complex manufacturing at Fairchild Semiconductor and Paul.
Most recently he served as CFO at Poshmark.
Speaker Change: Rodriguez stood out to us as a candidate because of his strong track record of driving growth, his deep experience in capital markets and his creativity in developing thoughtful strategies for the businesses he's led.
Speaker Change: I'm confident his pragmatic and tactical approach will serve Jobi well as we scale our manufacturing and prepare for commercial operations. Paul, over you.
Paul Sciarra: Thanks, JoeBen. Before diving into the financials for the quarter, I'd like to pick up on JB's comments about our recently announced partnership with Virgin Atlantic.
Paul Sciarra: Virgin is a terrific brand, and I'm confident we'll be able to create an amazing customer experience together, as we bring Joby's Air Taxi service to the UK.
Paul Sciarra: But that partnership is just one of several ways in which we anticipate bringing our aircraft to market.
Paul Sciarra: As we look ahead, we see three distinct paths to generating revenue, each of which provides a different strategic opportunity for the business.
Paul Sciarra: First, we have a direct sales model for defense applications and for businesses who want to own and run their own aircraft.
Paul Sciarra: This path enables us to optimize for near-term cash, including prepayments that may precede certification.
Thank you. Have a great day. Thank you.
Paul Sciarra: Second, we have markets where we do not plan to be involved in operating the air taxi service directly, and instead, we may work with partners to deliver that service.
Paul Sciarra: We see this model applying primarily outside of the US, for example, in Japan, where we've partnered already with ANA and Toyota.
Paul Sciarra: Efforts like this may involve joint ventures, or include sales or leases to a foreign subsidiary.
Thank you for watching!
Paul Sciarra: Working with these partners allows us to leverage local expertise and relationships
Paul Sciarra: and presents opportunities for growth while limiting our capital commitments and de-risking our
Thank you for watching!
Paul Sciarra: Third, we have our direct consumer path where we own and operate the air taxi service ourselves.
Paul Sciarra: This option is more capital intensive, but we believe it has the potential to deliver higher margins over time in a stronger, more defensible market position.
Thank you for watching!
Paul Sciarra: And here we are working with strategic partners to generate demand and build out necessary takeoff and landing locations in key markets.
Thank you for watching!
Working with industry leaders such as Delta, Uber, and Verdrone
taken together.
Paul Sciarra: What we have are three clear paths to market that we believe will give us the flexibility to optimize for different goals.
Paul Sciarra: We can choose nearer term cash flow. We can choose longer term margin.
Paul Sciarra: We can choose to grow market share, and we can mix these as we see fit.
Paul Sciarra: This model allows us flexibility, and it also allows us to react appropriately if one path becomes faster or slower than another.
Thank you for watching!
Paul Sciarra: We've made great progress already across all three routes to date. We've secured meaningful, matured demand and infrastructure partnerships with companies who have already invested hundreds of millions of dollars into Joby.
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Paul Sciarra: We've benefited from years of revenue and financial support for R&D from the Department of Defense and we're the only company to have delivered an e-vital aircraft to an Air Force base which we've now done twice over.
Paul Sciarra: And we have excellent visibility into future opportunities with these government customers on increasingly autonomous and longer range hybrid arc.
Both areas where JoeB has delivered real technology demonstrations already.
Paul Sciarra: But one path we haven't spoken so much about is the direct sales outside of the defense room.
Paul Sciarra: And I'm pleased to say we're having all the right conversations there as well [inaudible]
Paul Sciarra: For us, it's about quality over quantity for these pre-orders. You want credible customers and pre-orders that are as firm as possible.
Paul Sciarra: We look forward to sharing news on this and each of these routes to market over the quarters ahead.
Thank you.
Paul Sciarra: In the meantime, I think it's important to stress that none of these business models, none of them, mean anything at all if you don't have three things.
Paul Sciarra: First, A Certified Aircraft Second, A Certified Simulator, To Train Pilots To Fly Those Aircraft And Third, The Manufacturing Know-How And Capacity To Build Them At Increasing Scale
Speaker Change: JB has already talked about the exceptional progress we're making on each of these fronts and I hope that progress speaks for itself
Speaker Change: Looking now to the Q1 financial results, we ended the first quarter of 2025 with cash and short-term investments, totaling $813 million.
which does not include the expected Toyota investment. [inaudible]
Speaker Change: During the first quarter, we finalized the agreements necessary to close the first half of that $500 million commitment from Toyota, and we anticipate those funds will be reflected in our Q2 cash balance.
Speaker Change: In parallel, we've already been working with Toyota on our strategic manufacturing alliance with the mutual goal of finalizing it and receiving the second tranche of the Toyota investment later this year.
Speaker Change: As a reminder, there are no certification or operational milestones that JoeBee needs to achieve to access either the first or second tranches of this investment.
Speaker Change: Our Q1 net loss of $82 million reflects the loss from operations of about 163 million.
Speaker Change: Partially offset by interest and other income of $81.99
Speaker Change: The first quarter net loss decreased by $164 million compared to Q4 of 2024, reflecting a favorable revaluation of our warrants and our net shares, partly offset by the higher net loss from operations.
Speaker Change: Adjusted EBITDA, a non-GAAP metric that we reconciled connect income in our shareholder letter was a loss of $127 million in the first quarter.
Speaker Change: This was about $8 million higher than in the fourth quarter of 2024, reflecting higher operating expenses.
Speaker Change: Our adjusted EBITDA loss was 17 million higher than in the same period last year, reflecting the growth in our organization, expenses to support manufacturing and certification, and higher production volumes as we ramp up manufacturing.
Thank you. I appreciate it. I appreciate it.
Speaker Change: During the first quarter of 2025, we spent about $15 million on property and equipment, which includes investments in the expansion of manufacturing facilities in California and Ohio, test equipment, and the costs of our full-motion flight simulator for pilot training.
Speaker Change: We continue to maintain a disciplined approach as we supplement our certification work, with measured go-to-market initiatives and lay the groundwork for commercial service next year.
Speaker Change: You can expect us to continue align our investments with the opportunities in the business.
Speaker Change: Accordingly, we continue to expect our 2025 use of cash, cash equivalence, and short-term investments.
To Be Between 500 Million and 540 Million
Speaker Change: This concludes our prepared remarks. Operator, please begin the Q&A portion of the poll.
Certainly, we're now being ducking a question and answer session.
Speaker Change: If you'd like to be placed in the question, Q, please press star one on your telephone keypad.
Speaker Change: And as a reminder, please ask one question and one follow-up, then return to the queue. Once again, that star 1's be placed into question 2 and star 2 if you'd like to move yourself from the queue. Our first question today is coming from Austin Moeller from Canon Quarterline is now live.
Thank you. Thank you. Thank you.
Austin Moller: Hi. Good afternoon. Just my first question here. You mentioned five aircraft have rolled off the pilot production line. What is the timing of the full scale aircraft with all fully conforming parts? You had previously mentioned that you're assembling it and planning to have it ready this year at some point?
Thank you for watching!
Thank you for watching!
Speaker Change: Very similar operating specifications, including these five that have come off the pre-production line and which we've now done all of our failure testing on and taken through transition.
Austin Moller: with regard to your question about the FA conforming aircraft. And I should be clear, those five aircraft are company conforming aircraft. We then layer on additional
F.A. inspections during the build process.
Austin Moller: for the FAA Conforming Aircraft. And we have multiple of those that are moving through the production process in our California manufacturing facilities currently.
And yes, we remain on track to...
Austin Moller: Have those aircraft in the air, later this year, in preparation for...
Austin Moller: Our TI flight testing. So, very, very pleased with the progress that we've made and the investments we've made in manufacturing, and as well as the progress, both on the Joby side and the FAS side on
Austin Moller: Stage 4, which is a really critical unlock for the TA work.
Thank you very much.
Speaker Change: Okay. And with the company opening up the expanded manufacturing site in Marina, what did the expected timeline look like now for Dayton and initial production there? I know you're already in the process of building parts and components there by mid-year.
Yeah, we've got great momentum on post-cites.
Speaker Change: Fantastic to be doubling the footprint in Marina and really grateful for the team, delivering that ahead of schedule.
Speaker Change: and that facility is just going to be phenomenal as we ramp capacity here in California. And then the facility in Ohio is also coming along really, really well. This is the facility we purchased.
Speaker Change: And the team has done retrofits on it, and we're now installing the tooling and equipment. And really excited to see parts starting to come out of that facility in the months to come.
Great, thanks for all the updates on that.
Speaker Change: Thank you. Next question today is coming from Savi Siddh, from Raymond James, Reline is now live.
Thank you.
Speaker Change: I was wondering if you could elaborate some more on what your flight test goals are for this year, including our expectations around flight test. I mean, do buy as it relates to timing and what the goals are in terms of either volume or proof points. [inaudible]
For more information visit www.FEMA.gov
Speaker Change: Yeah, thank you so much Carter, and thank you for highlighting Dubai. So as we've recently announced, we've had an incredible quarter of progress on flight test.
Speaker Change: Done both the failure injection testing at Edwards, which is a phenomenal unlock.
Speaker Change: to all the rest of the work that we're planning to do this year and next.
Speaker Change: and then went move to pilot on board transition flights, and then now that's become routine and really, really pleased with the way all of our...
I...
Speaker Change: Coming to conforming aircraft or flying that fleet is just doing great and now we're preparing to pack one of those aircraft and send it to Dubai.
Speaker Change: where we'll have it for the hot weather months and to be able to really put it through its paces in some of the most grueling conditions from a temperature perspective.
Speaker Change: and then proceeding on to doing all of the qualification and preparation for the service launch. So, really, really pleased with the progress there.
Speaker Change: Back here at home, we are running many of the flight test operations that...
Speaker Change: in preparation for our company conforming aircraft in preparation for doing those same flights.
with the FAA, those TAA flights with the FAA.
Speaker Change: The fight test, as well as preparing for commercial operations. So a lot of pieces in motion, and really pleased with all the way that are all coming together.
Speaker Change: to We're Helpful. Thanks. And then just as I follow up, I was wondering if you guys could speak to the benefits of having FAA pilots in your simulator sooner versus towards the end of the certification process.
Just a little color that would be great.
Yeah, so we have...
The
Speaker Change: We had had the FAA pilots come out and fly many of the test points that they'll be flying during TIA back last quarter and then they also got to watch our pilots fly those test points remotely. We're now flying those test points in seat.
And then we will be, we'll have the…
Speaker Change: The FAA pilots fly the rest of those test points in the simulator, and then fly those test points in the aircraft themselves.
Speaker Change: I'm really, really pleased with the lean-in from the FAA flight test team and excited to continue that progress over the course to come.
Great, thanks guys.
Speaker Change: and the other people who are here today. So, thank you. We will see you next time. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye.
Speaker Change: Thank you. Next question today is coming from Mahima Kakani from JP Morgan, your line is now live.
http://TheBusinessProfessor.com
Hi, good afternoon. This is Mahima Unforbill.
Speaker Change: Maybe following up on Carter's question, can you touch on what needs to happen from a testing perspective for you to feel comfortable transitioning from flying with a pilot on board to flying with a pilot and then passengers on board in the UA, other specific, you know, for example, failure scenarios that you have to run.
Speaker Change: Or a certain number of flight hours that you have to achieve before that happens.
So there are... Um...
Component.
and system-level testing of all of our FA conforming.
Thank you.
Speaker Change: Test Articles, and so the critical unlock to this is all of the test plans that the FAA has been approving.
Then, once those test reports have been...
Approved.
Speaker Change: That gives us credit on on stage five and unlocks the TAA flight testing. So that's on the the US side of things.
Speaker Change: In terms of beginning to fly passengers, that's work that we're doing alongside the GCA, and we...
Speaker Change: We're going to need to ensure that both Joby and the GCA is very comfortable with the rigor and the testing that's gone into all of the component systems and the airfap as a whole.
Okay, thank you for that. I appreciate that color
Speaker Change: And congrats on the Virgin Atlantic partnership that you announced, given that these aircrafts intend to fly in the UK and the CIA has, you know, aligned at safety standards with YASA, can you touch on how you'll address the difference in the safety standards?
and then maybe you just how you're going to approach certification. Thank you.
Speaker Change: One of these records. Thank you. Yeah, thank you. We also had the UKCA out and a good contingent there. We've had very close and constructive
Speaker Change: Work with them over a number of years and they are going to be aligning their certification standards on this with the FAA and following along
Um...
Speaker Change: with the work that we're doing here. So, we feel really good about that path and we do see the UK as a phenomenal market and appreciative of their alignment with all the groundwork that's been put in place with the FAA.
Thank you. Thank you. Thank you.
Okay, thank you. I'll hold back in the queue
Speaker Change: Thank you, as a reminder, that star 1 to be placed in the question Q. Our next question is coming from David Zazula from Barclays, remind us not live.
Hey, yeah, afternoon. Thanks for taking my question.
Speaker Change: Polo, JoeBen, you mentioned balancing near-term cash oil versus long-term margin versus market share.
Speaker Change: I'm wondering how you are thinking about those balancing those priorities and what factors might influence changing the balance over time.
Thank you.
Speaker Change: Thanks a lot, David. For the question, this is Paul. I mean, I think the reason for highlighting it is to make sure that everyone sort of understands that we do have these sort of three legs of the stool. When we think about our sort of broader mode of go to market strategy.
What's important is that they obviously have different economic characteristics [inaudible]
Speaker Change: But we want to make sure that we preserve the flexibility to allocate aircraft flexibly between those different ones.
We are not-
Speaker Change: It's probably premature to say one is sort of a priority versus the other but we do want to make sure that there's really credible opportunities in each [inaudible]
Speaker Change: So that when the pun comes, we have a choice to prioritize near-term cash versus longer-term market expansion versus higher margin. And I think that flexibility is going to serve us well so that we can adapt to whatever market conditions are there at the time.
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Speaker Change: And then we'll kind of align with that. I think you mentioned direct sales non-DOD with that specifically in the US and you can give any color as to kind of what that might look like in the US.
Speaker Change: Thanks, David. Again, Paul. So it's actually not specifically in the US. Obviously there is interest from lots of operators in many places around the world. But what I think what is important is that we choose
The Rape,
Speaker Change: Initial Customers, and two, that we try to get the sort of most real contracts with those customers.
Speaker Change: Standing up any customer, even if it's a direct sale involves training them on maintenance, doing things like pilot training and conjunction with their team. So we want to make sure that the opportunity is real, that we have the right structure around that in the short and longer term.
Speaker Change: And as we've gotten closer and closer to certification as we're beginning to scale up manufacturing, that really allows us to have the right conversations with that customer side.
Thank you. Thank you.
Thank you very much, appreciate it.
Thank you.
Speaker Change: Thank you. Next question, today is coming from Andres Sheppard, from Kentra for Shoulder Line is now live.
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Speaker Change: Hey everyone, good afternoon. Congratulations on another good quarter and particularly on the full transition flight with a pilot on board.
Speaker Change: Very exciting indeed. A bit of an odd question, but I wanted to maybe touch on tariffs. You know, since Jovi is maybe more fairly vertically integrated than the rest.
Speaker Change: Should we assume perhaps that the impact from tariffs will be, you know, maybe less material than the others? Or I guess how are you thinking about the tariffs and the potential implications of that? Thank you.
Thank you for watching!
Thank you. Thank you. Thank you.
Speaker Change: Thanks a lot, Andres and appreciate your call out on the piloted transition. I can say that it was obviously something that we were excited to share, but it was also really exciting for the team. Everyone was super excited to see that.
Speaker Change: Flight testing progress from the first to a sort of routine effort here around the office.
Speaker Change: Regarding your question on Tara, I think your instinct is right.
Speaker Change: This is a moment where the vertical integration that Jobi has really been building over the last decade.
Shows how pop
Speaker Change: Show the value. Although we have a large number of suppliers, those suppliers are generally at the component level as opposed to the bigger assembly or subsystem level. And therefore we've got the ability to sort of flex that supplier set far more flexibly than if you're reliant on tier one suppliers for big complicated parts in the aircraft. And so we have a large number of suppliers, those suppliers are generally at the component level as opposed to the bigger assembly or subsystem level.
Speaker Change: That's a place where it's far more difficult for any aviation company, big or small, to really adapt flexibly and we don't really have that constraint.
Speaker Change: When we think about the impact of the tariffs and it's probably still too early to know exactly what that trajectory is.
Speaker Change: We'll look like we certainly don't see any in the short term.
Speaker Change: And as I said, I think we're positioned really well, given how...
Speaker Change: tightly coupled our design and production is to respond to those sorts of changes.
Speaker Change: What I will say, sort of at the tail end, is that it's really exciting to see public sentiment catch up to the way in which we've been building Jobi as a company for a very long time. We care about making sure that this next days of...
Speaker Change: Next Age of Aviation is both designed and built here in the U.S.
That's really informed our thinking from day one. [inaudible]
Speaker Change: and it's great to see the spotlight that's now placed on ensuring that American manufacturing.
Speaker Change: Stays Important because that's really the way we've been building this [inaudible]
Speaker Change: Got it. That's super helpful, Paul. I appreciate all that color. Maybe just as a quick follow up, I want to maybe come back to commercialization. And, you know, with all the recent, what should we call them? You know, headwinds, I guess from the FAA, maybe most recently the Newark Airport incident.
Speaker Change: Are you still kind of envisioning a scenario where you'll likely commercialize prior to that type FAA certification and maybe just walk us through kind of how that how do you you know your vision for commercialization either in the Middle East on other markets. Thank you.
Thank you for watching!
Speaker Change: We're excited to be making progress, as I mentioned before, and I'll be able to buy and I'm very excited to be taking the aircraft over there in the next couple of months.
Speaker Change: And as I mentioned before, doing the hot weather testing and preparing for the service launch likely early next year.
Speaker Change: Great, thanks, JoeBen, thanks everyone, congrats again, I'll pass it on [inaudible]
Speaker Change: Thank you. Next question today is coming from Edison U, from Deutsche Bank, your line is now live.
Good afternoon, thanks for picking up questions and ingrat [inaudible]
Edison Yu: First one is on some of the framework that Paul outlined. You know, how you mentioned several paths to market, commercial beauty, how do you kind of dimension those in terms of units or revenue for the next call it three or four years?
Speaker Change: One area in particular, you mentioned that you have two aircraft now at the Air Force Base.
Speaker Change: Is that truly scales up what kind of potential to that becomes from the economics point of view?
Thanks a lot for the question, Edison.
Speaker Change: I think that it's probably not the moment to sort of describe in detail kind of what we think the sort of breakout is going to be across those buckets, but I think what's more important is that we are sort of filling up each of those buckets with credible quality opportunities
Speaker Change: One of the things that allows us to do that, I think, with greater and greater clarity, is the progress that we're making on both certification and production, which obviously gives us a sense both of timing and of the cost side of the equation. Thank you again.
Speaker Change: In terms of the broader DOD side of things, look, we feel really good about the progress that we've made with
Speaker Change: Afworks, and the duty customers that we've worked with today.
Speaker Change: That delivery of aircraft was important, the revenue that we generated was important, but even more important was the opportunity to begin to operate outside of jovy facilities.
Speaker Change: We got a chance to train pilots that are not Joby pilots. We got an opportunity to install infrastructure. We got an opportunity to maintain aircraft outside of our facility.
Speaker Change: We got an opportunity to do government directed flight testing and all of those are really the building blocks for any operation, whether with a government customer or non-government customers on the commercial side of things [inaudible]
Speaker Change: As I think I mentioned in the prepared remarks as well, we certainly see the trajectory of some of those DOD opportunities.
Speaker Change: Looking a little bit different, but in ways that we've already sort of prepared ourselves. We know that areas like autonomy are going to be increasingly important, and we know that longer range hybrid aircraft are going to be important.
Speaker Change: We made the X-wing acquisition that had already done some important autonomy work. We've layered that onto the team. And then in turn we've already demonstrated that the very same aircraft with a hybrid power source can deliver longer-range flights.
Speaker Change: with our 550 mile flight just last summer. So we think we're really well positioned to continue to address
Speaker Change: Those government customers are based on the work that we've already done today.
Thank you.
Speaker Change: I appreciate the color. I'll follow up probably a more mundane question topic.
Speaker Change: It's really about kind of given the, the industry is quite, quite naïve since [inaudible]
Speaker Change: and Joby's obviously a pioneer. There's a lot of terms right now about piloted testing, and I think even in your release you said, there's pilot on board, there's inhabited, I think some other EV2 makers have said there's just piloted.
Speaker Change: Are all three of those the same thing or are there nuances to those three characterizations?
Speaker Change: No nuances. Those are all the same. So, Apologize for any conveys in there.
Speaker Change: Yeah, and this is all Edith and just adding, I mean, we've...
Speaker Change: We've been very excited to share some of that flight testing, including a video that we just released today that basically shows the entirety of a piloted full transition flight, including all the audio, the pilot working the switches. You should definitely check it out.
Thanks.
Thank you.
Speaker Change: Thank you. As a reminder, that's star one to be placed in the question queue.
Speaker Change: Our next question today is coming from Christine Lee Wang, from Morgan Stanley , your line is now lies.
Thank you for watching. Please subscribe to my channel.
Speaker Change: See, good afternoon everyone. By the way, you know, first service in Dubai in early 20, 20, 16, just around the corner.
Speaker Change: I was wondering, can we get a few more details on what that first commercial service could potentially look like? How many aircraft are we talking about in a region? Are you owning and operating it? Or is the government of Dubai owning it? And also when you start thinking about the roots and the rasm and the chasm of it, you provide more color on what that could look like and produce you a subsidy? Are you owning and operating it? Are you owning and operating it? Are you owning and operating it?
Speaker Change: Also from Dubai, if they want to get these operations first, any sort of color on what that looks like would be really helpful
Speaker Change: Yeah, I'll take the first part of that, and then hand it to Paul on the back half, so...
Speaker Change: Yes, we are very excited about the opportunity there and we do expect it's going to start small, it's going to start with a few aircraft but we see phenomenal potential.
Opportunity grows exponentially. [inaudible]
And so that's what we see as...
Speaker Change: being incredibly valuable. Of course, this is being supported by the RTA in Dubai and from the Dubai government at the highest levels.
Speaker Change: And so we're very grateful for the opportunity and the face that they've put in us for this and
Speaker Change: We are looking to alongside, along with their support, scale this as much as we're able to. Paul, would you like to add anything additional?
Paul: Yeah, I mean, I think the work right now, Christine, on route planning is happening as we
Thank you. Thank you. Thank you.
Speaker Change: But as you've noticed, even with some of the announcements just this week, there's a lot of activity across the Emirates, so we're evaluating lots of different sort of potential routes.
and also figuring out what is the right way to...
Speaker Change: I want to make sure that we get our aircraft over there, begin the hot weather testing that JB was talking about. Make sure that the work on the vertiports that JB was mentioning, which is already really begun, continues. And then I think we'll be in a position to share a sort of clear plan about how that scales over time. And then I think we'll be in a position to share a sort of clear plan that JB was talking about.
Thank you.
Speaker Change: That's really helpful. And I guess back here in the US, you know, we've had some pretty high profile air traffic control issues in the region. I mean, we also had the accident that happened at the Reagan National Airport.
Speaker Change: So with kind of the sort of you have on traditional air traffic control, how has been your conversation with the FAA regarding managing and essentially you're increasing the volume of
Speaker Change: of aircraft that could be supplying in an already potentially busy area. So, how has that evolved, especially with the most recent development? And what are the steps that need to happen to really have a full-scale high volume usage of Joby Aircraft?
Speaker Change: Thank you, Christine. As I mentioned, a whole bunch of great meetings and conversations in DC last week. And I think that what you're going to see is the nation continue to leaning in on this next generation of aviation and significant investments in
Thank you.
in improving air traffic control and improving the capacity of...
R. Skies.
Speaker Change: The number of aircraft that this guy can handle is dramatically...
Speaker Change: larger than what is currently flying, but we need the right systems and tools in place to augment the incredible work that our air traffic controllers do today.
Thank you for watching!
Great. Thank you. Super helpful.
Speaker Change: Thank you. Our final question today is coming from Amit Dayal from H.C. Wayne, right? Your line is now live.
Ahmed Dayal: Thank you, a graphing error, and thank you for taking my questions. Once you get the US regulatory certification in the pools, how quickly can other markets open up for you?
Paul Sciarra: Thanks for the question Amit, this is Paul. We certainly didn't highlight it on this call, but we have in prior.
Paul Sciarra: We've been actively reaching out to the regular Victoria authorities of a number of other countries.
Paul Sciarra: Including Australia, Jacob out of Japan, the CA from the UK, obviously GCAA from across the Emirates.
Paul Sciarra: the regulatory authorities out in Saudi, to all give them an introduction to Joby and to Evie tall aircraft. Many of those folks have come down to visit our facilities, to see flight tests, and we are sharing with them our progress on FAA certification so that we can...
You know.
Paul Sciarra: The FAA has bilateral treaties with most of these authorities that allow for near-synchronous certification by the FAA and not authority but we did want to make sure that we started those conversations early and I think those are going to pay dividends so that we have a relatively seamless transition between FAA certification and certification with other regions.
Thank you. Thank you. Thank you.
Speaker Change: Thank you for that. Just an adjacent question to that then, do these trade negotiations create some challenges on that front for you?
Thank you.
Thanks, I'm at this call.
Speaker Change: At this point, there's been no impact from trade policy on the certification bilapse that we've seen with other countries.
I wouldn't expect that to be the case.
Speaker Change: Thank you for that. I might even just add that we actually see substantial opportunities and, you know, as we, as countries look for
Speaker Change: More products, US products that they can buy, we see significant upside potential there.
Speaker Change: Okay, just one last one, guys. You know, now that we're at this stage where waterboards are being built, can you maybe give us a sense of, you know, what?
Speaker Change: Is the average cost of building a dedicated waterport if you have any numbers to help investors think through that phase of the execution?
Speaker Change: Yeah, so there's quite a continuum when, and you can start from something that's quite humble, it's a...
Speaker Change: Small dedicated swath of pavement, up to something that is designed to handle hundreds or thousands of passengers a day. And so there's a whole continuum there, but I would say hundreds of thousands of dollars to millions of dollars, depending upon the scale.
Speaker Change: That's all I have guys, so appreciate all the comments. Thank you so much.
Speaker Change: Thank you. We reach in of our question and answer session and ladies and gentlemen, that does conclude to these teleconference and webcasts. You may just connect your lines at this time and have a wonderful day. We thank you for your participation today.