Aurora Innovation (AUR) 2 Nov 222022 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Aurora Third Quarter 2022 Business Review Call. All lines have been placed on a listen-only mode and the floor will be open for questions and comments following the presentation. [Operator Instructions]

At this time, it is my pleasure to turn the floor over to your host, Stacy Feit, VP, Investor Relations. Ma'am, the floor is yours.

Pat. you, Thank and review everyone, our quarter third Good welcome business call. XXXX afternoon, to our afternoon. We earlier results announced this

Our shareholder at letter Form call letter are and also X-K a presentation on was the Investor to filed our today Relations SEC. with website furnished ir.aurora.tech. with shareholder available The our accompany this

business, we is pillars On Chris update an will today Co-Founder Richard have across CEO; key Chris and progress the made the our our call financial with and recap and of provide on Urmson, results. me third Richard CFO. will the Tame, quarter

Q&A. We be will then A Relations after open recording our on has this the website will call call call ir.aurora.tech shortly to this conference Investor at of available ended.

during include we and timing statements. on around XXXX, for markets actual XX-Q known the like XX, our These this making anticipated forward-looking unpredictability Form filed from in to Aurora relating and be ended subject SEC the statements our potential could particular, and June expected the the this autonomy-enabled quarter current business, of on and of the risks those cause call, In report of performance this to call. quarterly are our well development August you pilot I'd in statements projected as uncertainty prospects. and and XXXX, take with the economy. certain This as the or XX, that Driver risk cash truck our will our expected results the included opportunity factors to uncertainties customers, materially runway achievement differ during of overall to to unknown commercialization those on business milestones with availability and that partners future the of timeframe, opportunities and remind platforms, implied described in

make hereof law. Aurora as on assumptions obligation our disclaims the predictions date to update are this statements All events. forward-looking statements rely of and except that of You on and by as statements beliefs required future any on forward-looking forward-looking we call not should based any as

include our considered results, in addition measures. Our financial in non-GAAP from our regarding for non-GAAP a today as financial found reconciliation Information or measures may our may isolation and also These results. discussion including furnished shareholder non-GAAP our to historical to not today substitute found may Relations SEC non-GAAP GAAP results a and should be the of be GAAP with which in was X-K Investor Form on be letter, our website. our with filed be

I turn that, With over Chris. now will to the call

connect It's a everyone great today. to Stacy. get to with chance you, Thank

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with the self-driving for believe continue XXXX freight and it unit the trucking market size, of Aurora forward your make the customer to making tremendous. best and the can our to point and our customers economics We value to technology entry provide demand we Horizon by journey. end the you for focused you we're We this to squarely launching continued remain continuing on on look of support. share the progress Thank is

financial it I'll our now over results. pass will to who Richard review

Thank you, Chris.

We recognized million associated collaboration for to-date work development during revenue with our and Toyota. in the agreement third quarter cumulative approximately with million $X $XXX

agreement all framework As of received we have payments XX, with XXXX, cash Toyota. September the collaboration under

of load with continue While of launch Connect, Aurora long-lead priority for we to eventual the our subscription first commercialization ride-hailing believe work other Aurora our will our is Toyota efforts spring Horizon, market. for and service the us

$XXX totaled stock-based expenses, operating including compensation Third million. quarter

expenses compensation stock-based totaled technology. $XX costs Within continue comprised million $XXX expenses, compensation, personnel were of operating $XX excluding totaled autonomy million, our $X compensation we million in stock-based Excluding in industry-leading invest in million. stock-based of expenses million. SG&A primarily $XX R&D expenses, $XXX to million, excluding as operating

million. to cash used $XXX Toyota agreement. Turning expenditures We over balance related $X.X inflow quarter strong operating third in quarter totaled and during to $X very We investments. including the reflects short-term in a Capital flow. $X a which cash, billion the with the cash million million sheet, approximately ended

to Driver scale. We at us runway fund mid-XXXX, commercial for develop cash to expect enabling Aurora through the to continue this Aurora deployment

to With open call now that, Q&A. we'll the

ahead, Instructions] from D.A. comes Tom. White our [Operator from Tom And first Thank Go question Davidson. you.

partnerships, Wyatt hurt we near in is consolidation question guys on is, as anything space? My are any Aurora further means? to of If Hi. more for evolution the or intermediate help could elaborate This kind term a way? Tom. of And the bit you down relates shutting first on hoping it Argo's Swanson and of specifically it for kind or does what

Yes.

been founded. So since basically we've consolidation company about talking was the

evolution we industry. just here, As any we're future what natural think the the of is seeing about

of and were were industry, the XXXXs, If think century, by the three. the automotive you there beginning XXth there manufacturers XXX of the at

space, a a And to going the I see you're and so healthy building proliferation think that's very like any part of of to begin other companies ecosystem.

those folks I time, we're post my who sad a have said of on We us the over have are the think to business. aligned just but we positioned natural who mission at the going then of many so technology see about team, of friends, are with And this, little have it's to are and as these to be that execute Argo, them success. look us the in a are ability course for happen, and

it able the being stark For we needs bets The one as be align to on company. believe ship really the value And -- bet that mission will opposed independent we the to and one. fact we're it an have successful, of the is us, the puts day steer it to and right? into be from relief behind that people of go that to where to

may of Right. a just if might burn, sense. like how That a question recessionary timetable self-driving commercialization inflation be what on or more It's and by industry/ecosystem rate that have sort of the high rates, on period of any? makes prolonged And your of interest impact from cash pressures more one for impacted and me. high-level then

will maybe you. then it pitch So I'll I start to Richard

has the I there freight look even opportunity there's a years for few changed. So in more nothing we was ago. than at space, the demand think anything, when If

to what And the us approach think clearly expect going the when a sets of I having our investors for model, technology market success. they I the this and downturn after has right business look most very the entry if anything, will so to at company kind clear is opportunity expect, the position in point, up are are the that this we and be. expect the the And right helping continue a we we and clear losers if to table able is make more space, in as winners it who to the and execute strong and who be of

our that? the using efficient add for we've money And care push environment, with don't to if internally, and the runway out to of spending, focus company. the Richard, efforts more I taken terms to we're the to In you economic know be

Sure. balance so of the cash I and fortunate as feel market, if not to said, all but, QX to bigger still for us that and gives we not sheet, of like opportunity are is that we current And Chris to against at the we on the $X.X environment feel fully with the execute that's execute investments it's agree the we we opportunity will about the and favorable really and the roadmap past, short-term need macroeconomic with continue very did the stocks aware to ride everything that the out billion how Chris capital confident roadmap. capital in we that the more said growth and the feel into same, our we on will us we gives raise the ability ability the business said, end future. the as in raise have we situations opportunity execute the ours our that to certainly underlying

through money to shied more the we plenty need good we us to the certainly that change for do gets position. rate about we to fact us feel current mid-XXXX, for never time away and our raise that macroenvironment we've of our execute but feel us run gives and So from

Great. Thanks.

you. Thank

be from and there ahead, appear question Goldman a from no is Go Mark [Operator Delaney Mark. Instructions] -- And to Sachs. there

Hi, guys.

a thank platforms timelines question. very on on have be disciplined it guys truck and ready, at you the for the Heeb more relates taking seeing AV as You Delaney, the suppliers And much to little you are bit impact macroeconomic R&D? if perhaps backdrop moment the Mark for they're Ryan any being when could

day the earnings other I had they I think quarter. listened into I call record the a PACCAR and think

so and the So is to be I great seem increasing doing for freight work. just they think demand

great to building had where efficiency, sit, where they answer for about how say I the much the improving they in value customers, utilization. of from invest and for benefits customers, customers what question I it's see together increasing we're on see a -- think increasing road are Preston I truck R&D where safety profound for immense and their

excited happy our and be with really the So to with we're partners. execution continue

Thank you.

Thank you.

time, And the that sorry, any turn -- I'd appears this last management to for to closing that appears now to to remarks. be back it be question. like At

call us we forward next connecting share our Thank progress. our to for to look you, joining everyone, and on

This conclude your for Thank does today's conference. thank you. We you participation.

a at You this have lines may your wonderful day. time, disconnect and