Aurora Innovation (AUR) 1 Nov 232023 Q3 Earnings call transcript

Hello, and welcome to the Aurora Third Quarter 2023 Business Review Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Stacy Feit, Vice President, Investor Relations. Please go ahead, Stacy.

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

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

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

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

during frame, includes our customers we statements. for of the partners prospects. development, commercialization around of and from future like expected making forward-looking commitments manufacturing, Aurora relating and be statements realization time opportunities contract potential business and the benefits and Driver performance call, of this Horizon, to of overall you I'd take customers, with our and certain anticipated This will the scaling the our and of opportunity to expected the achievement to potential milestones the that runway cash services, Aurora products expected remind

subject our in markets unpredictability in filed our current those or and described implied as projected risks These the business well for year and and call, SEC results the in the ended from December materially included report with and particular, XX, uncertainties factors to XXXX, on annual those XX-K Form unknown uncertainty economy. our as are known and actual during statements differ that could to cause risk in this

our set XX-Q Additional forth on ended quarter quarterly will Form information September XX, XXXX. be report also the for in

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

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

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

Thank Stacy. you,

a period execution of focus intense our The was across third organization. on quarter

completing to our addition Case, In the We target. all raise, trucking closing operations $XXX performance, Aurora Safety average the scaled enhanced our make fiscal also while discipline, having this of we also maintaining our progress toward spend managed to autonomy executed our Driver capital quarterly and cash advanced million our continue partnerships. strong further below

also saw on the front. We legislative some developments key

the industry policymakers position through our to future represent built federal During engaged third hearing trucking Infrastructure vehicles. only quarter, at of and honor the and Transportation the in approach. this commercial Committee have on Being I we company invited underscored the motor the presenting autonomous of the leadership our the House trust with automated had transparent to legislative

U.S. economic how Bipartisan must of central the autonomous company and we leadership safety and the Aurora. of at that recognition prioritize the meaningful as to vehicle autonomous we've respect speak to of progress technology, benefits importantly, along a the made to consensus proud and technology was discussion. solidify with the efficiency I value industry of view safety was this trucks, most

just autonomous saw partners meeting. in if question of but It's trucks this a time when. a no government, and in significant rather spent shift I've congressional tone longer career, question my tangible our I a will of Throughout arrive, with in

At with human very the autonomous driver. deployed to law a trucking. terms enables U.S., has an law This economic both We with our benefits. seen bill, or -- respect the statement Texas, [indiscernible] vast however, vetoed vehicles of Governor autonomous positive the the without regulation, outlier has vehicles Newsom can when in in expressly of AB where autonomous [indiscernible] California, including under been level, the development a and value help safety state of in saw majority technology XXX. a current safe meaningful existing was the drive recognition can September operation of in

California working of the vehicles to the in committed in regulations of process state. underway Highway is draft the the for of We're with anticipation closely autonomous that of rule-making and release Patrol Vehicles commercial part Motor Department California currently as

regulators with of to work to stakeholders continue we trusted our legislators, all and steadfast of to we with Building openness our fundamental relationships hold and As transparency. our is approach. principles

highlights. our Now quarter let's third dig into

As to company operate Safety rather vehicles approach just vehicles drive roads. beyond ensuring product and holistically enough a goes our we for are stated, acceptably our are safe Case public safe. demo on that our our comprehensive, well and a to sustainably self-driving is It evidence-based demonstrates the confirming

The Aurora we at to in Ready, a without needed is when the we autonomous our will complete lane. a a feature of board. reflects of confidence to percentage ability the the end across quarter achieved of -- move claims milestone with Aurora autonomy the Safety our readiness operate first the of to Driver's It person completeness all have launch Driver safely work weighted measure on milestone, measure Case or ARM from which

of quarter alone. at feature ARM points of as the complete achieved up during since the end We of an up XX, XXXX. is quarter September third XX This XX% and XX the first milestone points our

completed Case related and track commercial Aurora core Aurora, for Driver and across our the Aurora have vehicle of of the we Today, Driver Driver all product: the work Aurora integration Aurora services elements our Within we claims including to Safety hardware, hardware software. launch. services, necessary Aurora

Ready. prepare growth work our beyond Driver claims We've These launch. commercial Aurora planned of the X are on respective focused all for primarily teams also for to closed now integration the vehicle

hardware the with to on new will completed This proprietary launch and Lidar equipped trucks fleet road to Drilling our and have be our for our Driver harsh Aurora uptime. latest kits. also of reliability Aurora essential FirstLight We into engineering our generation target specifically, the kt environmental both platform hardware, now is our commercial which Driver hard of the can reliability. meet the of driverless the and is withstand levels experience enhanced hardware of to hardening and conditions hardware been tested the contains versions of maximizing computer,

this X We Page hardware have integrated slide the on of visuals deck. of included

enables And it's looking, pretty the while road. kit's darn The too. serviceability on optimized founding good performance, location modularity is for its

Our Driver Aurora made Driver also teams software Aurora have great toward progress Ready.

scenarios, of to Suite of reminder, rare which performance as to roads. unseen scenarios. to leverages systems Aurora's a an exposure Aurora thankfully In against our yet those a key turn, are autonomy amplify As on Virtual must a vast be of public validated approach rare component events driving Testing performance many number the of and test

goal. these claims anticipate of validate the belief is our designed Safety support and Aurora Safety that now our Case such will work of a appropriately scenarios. the closure Success Case to We end-of-year small to the rare to completing number claims beyond of our respond Driver stretch Aurora Driver

team. being our of claims subset commercial this performed of Importantly, a the of the timing limited impact does work on by launch. not work segment is expected This

Driver to the this completed end the of We first thus XXXX. achievement work expect quarter and Ready be around Aurora the of of

team efforts operate. Driver our not additional already engineering we and And the We reallocating to Aurora cost decided beyond our could increase Aurora and for places breadth are maintaining improve this which to have to towards parts are including work effectiveness Driver the momentum to to the milestone, reallocate under resources and instead commercial Ready conditions of the readiness. begin

Aurora Driver to process take is stage validation. late Driver an how to like I'd we and of walk development progress Aurora you validation system The development through of so example complex, this moment through a to the

For this avoidance look sideswipe at example, we'll capability. our

common on encountered by While not of roads. occurrence, most sideswipe one the collisions an collisions everyday trucks the are

neighboring to scenarios. emulate truck these begins on vehicle So encounter in our potential lane to designed Aurora to handle expert of a the response these highway commercial We've a how veer its the sometimes course, Driver's which light in Driver lane. or drivers a sideswipes Aurora situations into

of our system before a Driver's simulations matches of collection how able now the Page the demonstrating reliably in slide X response Aurora respond included past the reacted was deck, appropriately. we've how On to operators had

and temporarily our perceives real-world right truck crossing itself by And a Driver space on right and is on in Page I-XX surrounding Aurora when portion had if including assesses it clipped shifts can environment, X the Dallas threat, Aurora the of the the shoulder the on shoulder slide example lane. to the to between its of almost deck, traveling traveling the Houston neighboring and southbound of mostly trailer determining lane, then sideswipe The a Driver boundary. this safely you see the

successfully enable validation. the of confidence We Aurora the the now have the scenarios scenario. actions we're process in final Driver's completing appropriately, sideswipe to ability These and handle Aurora to Driver sideswipe in avoid

able as continue the improving. quality to partners, improvements Aurora in were these part validation and evident Driver customers we of this experience regulators example, accelerating As our program. our see to the showcase of and Every work our day,

hardware, our work great to up launch we to continue end our with operations and Concurrent with scale and the trucking achieving schedule our on are make of XXXX. fleet We new third bring progress during driverless Case continue Safety quarter. on of at focused commercial our the the the

Houston. build-out We in first to trucking for terminal commercial-ready driverless the commercial infrastructure our establishes launch our operations in of and This the ready on lane second located Dallas needed completes the Houston U.S. commercial finished the terminal autonomous lane

on to included progress the Despite commercial and steady terminal of for commercial a market, new deck. footage freight loads of our we operational challenged cyclically capabilities have preparation in continue the commercial X We launch. growing slide make Page

loads, to We, logging per target customers. our commercial miles per of than Schneider, autonomously miles [indiscernible] operators XXX% have under achieved Werner, we Cumulative our supervision XX,XXX driving end XXX,XXX now pilot XX, October XX including for to customers, haul autonomously third over on-time X,XXX for Uber with nearly of commercial week. FedEx, delivered more quarter vehicle date Freight. and We're week the over through in performance turn, our loads

just One but setting the our through to in indicator track the is in representative our operating operating the processes us a way allows of not we metric our autonomy on-road service or the This procedures state our API. commercially and technology, successfully maturity of measure [indiscernible] business. performance performance

provided use penalizes support the have the of Horizon. indicator which most on-site support, we expensive to enable Aurora The

launch reminder, tires on-site that we support. will require at certain aggregate for because always a be will As situations, even XXX% did API not example, anticipate flat

our hold beyond, this. to of in The We reduction accountable [indiscernible] we As API delivering a commercial look commercially it by products basis. supported is be evaluating important is ultimately scalability ahead to required. its representative the one will and launch and sites that profitability performance teams and way we do level our on for complete, a believe on

these third year. the improvement pilot quarter-over-quarter. greater XX demonstrating loads XXXX, an the deck, of autonomy the than performance API and representative slide shareholder to or Page we was quarter-over-quarter XX%, equal third another can operations solid we API Over lane on of letter throughout notable API again had progression increase. an autonomy saw XX% this quarter in of see had our Across of the launch XXX%, XX% of on the In quarter, and our completed XX%. the the loads in For performance commercially in

just surface and change Driver's of traffic quarter encountered the the on take Houston, examples lane to highway to Aurora moment to Driver deck, Page challenging I-XX third is, show the signal. has Aurora in of good to on like you left XX turns a I'd the and on slide conditions how few performance streets. video on during the both turn its to specifically approach In the of decided a

lane begins aggressive it starts into space. same the change another lane vehicle the As change, a last-minute

Driver Aurora the other and very allowing immediately this change, then The completes plan. full situation original pauses vehicle and recognizes contested change the safely its to lane naturally by pass

proceeds cut then lanes multiple to driver other traffic. of across The

a it's a is think Jersey I [indiscernible]. slide New

its the of a after has southbound has slide the a Houston. the in slows the Traveling the just Driver dangerous Aurora The turn of to which the collision. Driver's situation, its vehicle off Aurora driving lane example Driver highway vehicle its in road. avoid In take green, to allows Aurora response The it deck, XX road. Page the the enables wrong on it exited down potential the given speed perceives the upcoming turned stoplight way

partners. to Moving our

partnership we Our PACCAR Volvo new we our and work at Continental. developing, of announced exclusive beyond. manufacturing by servicing with and our to continues Trucks, with the for The scale a generations of hardware. future to long-term in partner, this industry commercial our year, partnership is trucking bring Aurora and Hardware-as-a-Service truck OEM Earlier goal Driver progress jointly Continental, launch self-driving partners, technology and prepare as commercial

a business will Hardware-as-a-Service model, the pay for our Aurora per-mile Under hardware basis. on

third the future and Aurora trucking partnership the look objectives. achieved and industrialize the Driver commercially During partnership for continuing in scalable generations development intended the Continental We cost support structure the to first a milestone, forward autonomous Continental Aurora first to plans our finalized with hardware. systems the long-term which team to the quarter, major with profitability place our detailed of

necessary are third steering platform On new power, for braking, Aurora the brought fleet XXX is we testing. quarter, latest the This with our systems generation hardware driverless vehicle of of trucks we the equipped prototype the actively updated be redundant which including online platform side, and that during kits. truck operations, Driver will Peterbilt with

autonomy VNL. received also the We first enabled Volvo

quarter, During structural a was during support having prototype place this in addition process. sensor hardware in necessary power with our simplifying to the truck the the installation braking redundant to systems, interfaces third built pods,

turn, to kit. hardware integrate the were, and as a able preassembled We Aurora pretested rapidly Driver in

for continuing builds quarter during in in begin platform, quarter is expected which of truck are this robo testing to fourth first autonomy Our the the XXXX. of preparation

As to their recently Solutions reiterated [indiscernible] Aurora opportunity our by ahead. the meaningful towards moment that and tremendous Volvo lies in advance for Driver revenue our teams excitement just autonomous their believe powered this product, they trucking the partnership, continue

viable commercially product market. trucking to imperative integration is deep absolutely a and suppliers bring driverless This to OEMs with

at While over was with operation autonomous series sanctioned that for demonstrations, or we've the key a platform the driverless single its trucking pull by driver or did it these of of a seen commercialization of a handful suppliers companies for truck developed OEM small for years, none companies and scale. on

We're platform ready their we is its development this approach for Tier each we're truck truck only for of autonomy the scale. right self-driving also we our the frankly, business. developmental confident And all reach, and X milestone with With at codeveloping of subsystems the deployment suppliers. and approach partners OEM future the commercial that technologies believe

ever to demonstrating toward our planned our grow. preparation in over Driver more launch to continuing for and leadership look are We than quarters end of milestone confident we progress position achieving work advantage We our at the commercial see continued Aurora as in coming forward our the XXXX.

Dave, continued support. now financial Thank pass it will results. you that, who for to review our your I'll over With

Thank you, Chris.

Let's discuss our financial results.

we quarter executing During milestones. discipline the while third of fiscal XXXX, continue to demonstrate our strong toward

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

of Excluding totaled stock-based compensation million, operating expenses $XX $XXX million.

expenses, our ]. $XXX [ compensation, $X expenses, totaled stock-based excluding stock-based were expenses, operating compensation, excluding million in million SG&A R&D in $XX million Within $XX million.

million any previously We operating the the in third Driver of under framework record in during revenue launch $XXX quarter and of revenue phase not XXXX. Aurora third with during approximately the the With all refinement and final validation the the for of collaboration used XXXX. Toyota we agreement quarter did recognized, cash

to including of $XXX build-out our totaled well total million terminal This per complete to discipline. strong $X reflecting our quarter to below commercial-ready in was Capital average, the cash million, our on million Houston. commitment spend of target expenditures financial expenditures $XXX

million. During from the offering common stock. a proceeds gross we raised private totaled our third $XXX public of proceeds and Net million placement quarter, in $XXX A Class also combined

in the cash ended balance very We $X.X third and a quarter sheet, strong including with investments. billion short-term

to support We operations fund planned to launch half this into expect our the of second continue our and commercial liquidity XXXX.

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

Canaccord from is today question Gianarikas first Our from Genuity. George Instructions] [Operator

X questions. Just

California of their curious other you side, -- seems on outside on as broad there in the of competitors friendly one in kind your list had the some whether service regulatory like commercial been there operations. and of enabling and of level to to And least turbulence year? states California. win I'm talk in a -- of at a in a vehicle with to there's little starting could I'd First, passenger you been next behalf have have the regulators obviously, appears But at environment. just to Texas start had

asking. for you Thank

the like allow see of the we very continue and atmosphere our look Part welcoming to So transparent been with landscape, them to understand I why when at our Case. for effort approach things to Safety share regulators. and approach shared management them, positive has think we lot why that to It's is in be a of our our our confidence. we internally, partners we've risk gives government a

new feel don't we this we rational impact engagement or or We're perspective, seeing and it's we're questions commercially is right? with have think appropriate relationship our regulators introducing From our on deploy as things when regulatory and response, kind ability to seen our quite I their what reasonable of haven't job right. planned. technology, any ask and to

in Great. And press XXXX. a the claims that, then to release about some just discussion the of into Case follow-up there was as Safety your quarter extending first

once I to extra do you have Case they previously the So being As with that the I'm testing? achieved about what whether the the previously, half into remember hardware of these extending being curious of completed you I XXXX you XX% fully with first by then testing integration in required end think guided. 'XX and of year as as complete done Safety claims to it and X% the are the talked are

you Thank again.

safe. the that we to would under way it of we put So scoped was hardware have it developing as road on it software if or confidence we there's Aurora we're -- had vehicle control the platform that that in that could already things an would appropriate the we you the that our Driver think can be Aurora integrated that

the we're this in had that and where -- of the loop the with of system claims just of the of that part drag the working going timing the What we've program, of the little of claims months, a be relied a programs expected. there's realized vehicle validating ability to we bit vehicle a on Ready. those Safety than on XXX-some working last our the were process and couple to to we internal validate Case. that set we been -- longer that our of Aurora going were we through integrate over end the Driver because past is then to taking And small And relative validation

those. remedied and We discovered doing some were that in the we inefficiencies way we've work,

that that have not And so transparent won't impact be we consistent commercial to work we it our guided of any on timing. done be just will wanted towards. this majority the what while with quite vast It's had

And we share partners. that to wanted our with so

Next question today Evercore is from Chris coming McNally ISI. [ of ]

and appreciate all Chris team, detail. the

but a big for Just of little before. the topic revisiting apologize and one, the a me I really and one industry from for advance for question in preamble bit

think have that San views the the topic people the even a said week, incident really or are then robotaxi agents. I swans will inevitable. accidents accurate debate comms by know many covered But last Francisco XXX% AV. have particulars, caused AV tech, in the can We human We important discussed But in podcast public not a was of role critical teleops. our actually often as black team

AV internal for inevitably just asked debate. we in to the decision" why But their in the one, details "right after as be have testing, odd AV validation. think the cases, public the when the deployed will driving not legal is [indiscernible] Up during policy to up discussed, to themselves companies meaning we've I kept as know trust now, driving

preamble. long So

driving insight the I because the off down time that a into access at running think anything teleops a can for DMV? the has to role through give question, press, they'll I first of accident, the human have question, even the what long rare point, full at the Aurora thought probability a [indiscernible] will on full played info how was may but decision. it's with to happen of the know to my videos, -- it's you policy But Aurora the some really critical of share Will time the industry. occurrence their share

lot, honestly This that obviously the thoughtful we value is of Yes. partners. create about top do that's how right? building a increase a we on And we're expect safety No, us. think We for thanks for question. with system a customers, -- this We mind roadway. very something it think will consistently will

point, some things at happen. will But bad

the emergency a so and and that. tabletop do that plan through [indiscernible] response our for engage have we internally. public response And the we We with already from we with processes, road, happen periodically where regulators, have partners, around this this how we run the on would we critique exercises with go our the then

to others you over again, management to to approach demonstrated our about several to about trust building share the our it, think Aurora sharing an to can we've and with and the Safety of our our it's Case that willingness safety Driver safety about last approach details think risk and argument be I regulators the whether, in years how for we working help why process promulgate space. transparent

in of person we had the shared and across Concretely, in trucks And have we I bounced and of of partners, another the immediately right that think we, publicly off year, of think and sideswiped an authorities March with event. regulatory course, lane our off. down the the our it notified where our also road nodded drifted this notified and details that, then one was road the vehicle, driving driving vehicle's light incident on the might vehicle,

is go as we'll to continue that So we and matters expectation transparency our that live here clarity forward. that

all these We would trust? but of that had one that of there what Chris. practices San could in a industry-wide seeing Maybe disengagements, the that, follow-up any be have is, see California, analyzed, things a beginning no California? some you puts the can in that increase body result appreciate that we're that do as numbers Francisco the could out come may of standards? be Really we or loves of only sort Meaning other reporting a about like things

shows is done Any goal the safety, different that's large you here. if many thoughts very of large what on get data, which course, it's that? obviously, a obviously scale, with the at overwhelming And a evidence and of end players, of body

there's And different a few I so think -- there's that. parts to that No. again, Yes.

I've around doesn't rates is of in California that is concern one it and assessment disengagement that So the honest in that the mingles past development release an we've because the report provide had performance expressed that software. it

right course, there road. incomplete that to performance, that, expect that of and a already the where you to there automated have I is elements reporting process safety track I this to a we're report ensure [indiscernible] there developing can even build don't when And from word. call developing the actually What excited if general to quite they it, of them But they around about very order, something, think a be incidents you excited know you're has federal Transportation, -- process to is more is is data. the Department anyone so minor and of statistical technology

I And fairly so is fidelity. expect high that that And to continue.

hit somebody to another and threw to a DOT. of rock trucks. that one -- the windshield our think it report I vehicle of up, We had that

on visibility into happening that level of So granular -- level that a road. events of are think a I the provides

White [Operator Our is Tom from Davidson. D.A. coming Instructions] next from question

more like This XX Swanson what first for mentioned You on expect some on loads up you Wyatt is give get with something as on your route. it Could commercial-ready and running? commercial maybe this per you route us opening week. Tom. you color Congrats

months? that next like So XX over look what XX does to the

Sure.

end guidance QX, of the in facilities the technology that were that our place operate point at And to the deployment we of At achieve where So we the either where maps between the initial provided loads this we'll for got year this a road per route. for week. aspire the in we're our on we end loads we've XXX end week that a customers. XX is of pulling by

have haven't is the further but licensed Driver be board operate end time lane towards continue our routes, ultimately over trucks the but also time. And expect where between end provided is this the and will other the well. at route and operators increase of without the volume we've a guidance on Dave, continue now on on this that of or driver driver as This So the as you... to that to And -- to operating, commercial Aurora then, we we that we at we first XXXX.

lane, what to that an on Yes, I commercially the operate at to exist happen note think also this the operational on is about this that locations, we all the lane, talk this when launch we And right? lane need capabilities, means This is to it's things important terminal. is lane. all representative our have important

we do there. fueling, do we site need to to So repairs, as need do to we If calibration that if is in need if everything to do it. to our go we opposed self-contained on a minor do have systems, off-site of to

So you actually can autonomous operate an lane.

have, And this envision time. over to our we build is you We're with continue and also that scale customers. how refine and it helps the along capability capabilities will how we It need and this all to demonstrate determining confidence necessary that the way.

What for really opening additional of That's we that. a commercial over XX the routes follow-up to ready And to in helpful. Great. get can guys expect Got launch? you months then up XX as terms it. next

route daily El the So loads Paso, customers. between today, we also operate Worth on for we're there pulling and Fort and

to past some expect specific that east kind details don't think the in to expand we along that. guidance provided corridor. we've -- can general we west today I But we of As add to more that

Delaney Your Sachs. next question Mark is coming from from Goldman

respect by independent the does freight of? how weakness entering about impact thinking some what on contracts commercial launch thinking markets about end to cyclical currently Aurora what loads with the the the may contracting for of are side, of in the be year? this capable Horizon you're business your you First And

Mark, Yes. that's a great question.

market and the partners, our end for for nature customers think of at the I think really in the that our track challenge cyclical I many general, contracting of in especially year. a the been FPL space. still has we're with on the do depressed

them. some the loads. think to continued to to also give you increase They see Despite of I to credit lot But and number the with us. they've continue of challenges, work of the have value, a long-term they

like going we're plans our so working through right now contracting what to And are for look through XXXX.

good progress see the really on some that, year. operationally, And say caused of value but more that able But we'll share the in the would of information working to has and the be they making I so we're them end the for depression challenges market at this. and

And so together wrapping fully long-term. completely in they're still plan about our the excited and

other then, And for you. question one it. Got Dave,

was Just of in through cash about commercial reasons have better the it end understand levels sequentially, bit perhaps the were use at levels But talked the of on ways or some next timing and better and guys quarter moderation spend? the a higher to operating this, spending some around expenses little for kind any and that launch. expect any just sequential of all the hoping on frame of you maybe other range to sequential down the to and related

Yes.

timing we there some little a to most Like think right? had bit which cash we adjustments, was as was had be a planned, about use, lower. expected. anticipated but what everything I we minor We QX

When we on an average on because ], have we to average. allocation, X an guide XX [ XX it's to the of put right,

to the in time period that like put the quarter. in was we first which And next we'll year, the be second anticipated this So pay, bonus we're quarter.

support -- pretty here. did we be on We our some the yes, expect we've this for some of did quarterly is some So manufacturing again, right minor had. that's average. allocation that timing have contract But quarter about to there But minimal. that

know really of a have of it discipline. sure us and smarter wise without finding progress. really a and how important opportunities I we're And think of things use we be that testament to that lot more any this to for like financial do jeopardizing reuse the to just to fact the is right make to it's our and

us from have about that better expect range would the don't that for missing super big deliver shifts expect concerned to or to QX. QX, within still We target QX we would our We QX. target for see than QX

is from Cowen question Next Osborne coming from Jeff and Company.

wondering that move just you was I that delay Safety of that there. was there was laundry the edge all that flush need closed? driver in you to more Was trying could, if the but out being society, are sideswipe? Case ] a to to in out? I of there, you of that terms due mentioned understand cases on [ just QX incidence Chris, a to rare bit The sort before bring list

as I edge really are -- to to of going get is isn't last It's this dreaded, the you. kind No, at going bit. take the wouldn't to the that boy, all. This think forever of yes. Yes, this not get cases

take validation obviously where would develop sure very of we we driving of than seriously. those the expected tests we conviction the them was bit the work get operate road. longer on suite have for to solid them that, building and we get the And as for the a make had the test little We We have that we a point to could us want to safety some expected and realized system ourselves kind taking been way us it we across particularly capability. to

Driver of Driver the Aurora the do do how other system. rest be that to so the have we places, to is operate the more out of the work we the how expand we be cost on moving majority ready the work it the team really to And Aurora will subset lanes, across while continues bring of make complete. of is There on a team going how the to small this,

So the it. see building commercial, and We deeper business time important a kind don't company, be little of getting But internal to our on this we of thought it our you're sausage-making transparent to growing the state the because view here. an in was just terms engineering impact. pre-revenue of impact as some into about of our of

before, previously have I up, designed question Are those, in any if which binding quarter follow go -- there I recourse have sign to I fleets issues something were think, is X? I that event guess contracts do. delayed isn't any for Mark's a as on you Case to year-end the or 'XX was is by there whatever the of a say, just hand, the the Safety place was contracts there for thought hand like, those you that [indiscernible] fully would or are reason, baked. And -- that there let's the technology I think it. obligations delay? they in Got sort contractual in

Yes, that's a great question.

answer me Let both.

there'll contracting through we do be dates the supply the to why partners First transparent is reason XXXX to contracting on liability we that if and why our this, miss needed where off, adjust. there's helps or element lanes really completely to be how the need want we -- launch any to much do The it no, reason we define order. us our no

it's So not networks. a -- to customer to their unlike a how shipper order out a particular as they wants wants many trucks or I build carrier from mean,

build is our road their of working 'XX. customers network through like out doing to each we're map with what So

that, we to plans want the to we sure component We're try that 'XX that the we can feedback beyond we going we so well. actually OEMs then right so solidify but suppliers as make and well and our right our place have components, provide supply both through sufficient in that have to

So through make indications thought year, got each anything really one fact it's a And a continue else, progress than of commercially. the progress planning about it represent and we is, kind good plan solidified but of 'XX also important to beyond. the more we've we to was that of hey,

So that's on. in what we're focused

and add And to development saying that adjust what to about partners, feedback us allow our with on do engineering think programs is needs. from engagement how we get the plans meet to product the just pilot was maximally Dave to ongoing their them we

their with then west north priorities And really is about customers. looking value Worth, maximum Phoenix? think we've for Or then and Paso. it's Fort asked El and Houston earlier, question first, to South initial we do do we And okay, and them lane talked to at, for customers deliver we initial east as by the for the we these critical our do lanes, Atlanta the working to launch how the then expand go

session. of reached does and We today's gentlemen, conclude end teleconference our webcast. that and the question-and-answer Ladies

lines at participation your have for today. disconnect may You this wonderful your thank time, day. We and a you