Joby Aviation, Inc. — Q1 2024 Form 10-Q
Reporting period: Three months ended March 31, 2024; unaudited. Joby is developing electric vertical takeoff and landing aircraft and plans to manufacture and operate them as an air-transportation service. It reported its first flight-services revenue during the quarter, but remains pre-commercial. Amounts below are in U.S. dollars; financial-statement figures are converted from thousands to millions where appropriate.
Key financial results
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Flight-services revenue | $0.025 million | None reported |
| Operating expenses | $145.9 million | $99.7 million |
| Research and development | $115.6 million | $75.5 million |
| Selling, general and administrative | $30.3 million | $24.2 million |
| Loss from operations | $145.9 million | $99.7 million |
| Net loss | $94.6 million | $113.4 million |
| Basic and diluted loss per share | $0.14 | $0.19 |
| Net cash used in operating activities | $106.6 million | $78.6 million |
Revenue was negligible, so a meaningful revenue margin is not available. The smaller net loss despite higher operating expenses reflected $51.3 million of net other income, including a $39.0 million noncash gain from remeasurement of warrant and earnout liabilities, and $12.3 million of interest and other income. In Q1 2023, remeasurement produced a $22.0 million loss.
Liquidity, capital and cash flow
- At March 31, 2024, cash and cash equivalents were $110.5 million and short-term investments were $813.3 million, for $923.9 million combined. Restricted cash was $0.8 million.
- Cash, cash equivalents and restricted cash declined $93.5 million during the quarter. Investing activities provided $12.6 million, mainly reflecting marketable-security maturities and sales exceeding purchases; financing activities provided $0.5 million.
- Total assets were $1.164 billion, total liabilities $189.2 million, and stockholders’ equity $975.1 million. The balance sheet reports operating lease liabilities of $31.0 million; it does not present conventional borrowings as a material liability.
- Management said available cash and short-term investments should cover working-capital and capital needs for at least the next 12 months and are expected to support the planned initial commercial-service launch in 2025. It may seek equity or debt financing if needs exceed available resources.
Material changes and business progress
- Operating expenses rose 46% year over year. R&D increased 53%, reflecting hiring, aircraft engineering and software work, manufacturing-process development, certification, prototype materials and testing, as well as lower government-grant offsets. SG&A increased 25%, primarily from headcount and professional-services costs.
- Operating cash use increased $28.1 million year over year to $106.6 million. Stock-based compensation expense rose to $27.0 million from $17.3 million.
- The FAA published Joby’s stage 4 G-1 certification basis in final form in the Federal Register in March 2024. Joby has a Part 135 operating certificate for on-demand service using conventional aircraft; it says eVTOL operating regulations are not expected by the FAA to be finalized until late 2024.
- Joby reported more than 1,000 successful test flights and said its first aircraft was delivered for initial U.S. Department of Defense service operations in September 2023. It cited government contracts with total potential value above $131 million through 2026; this is potential contract value, not reported revenue.
Outlook, risks and unusual items
- Management targets commercial passenger operations in 2025 but provided no numerical revenue, earnings or cash-burn guidance. Results and timing depend on aircraft certification, production approvals, service authorizations, manufacturing scale-up and infrastructure readiness.
- Joby expects R&D and SG&A expenses to increase as it expands engineering, manufacturing, certification and commercial-readiness work. It has incurred losses and negative operating cash flow since inception and expects this to continue until sustainable commercial operations begin.
- Key risks include FAA rulemaking or certification delays; uncertain demand and customer adoption; competition; aircraft production costs and supplier execution; hiring and retention; aircraft utilization and operating disruptions; and the availability and cost of future financing. U.S. government contracts may be modified, curtailed or terminated.
- The company reported $12 million of unconditional purchase obligations with remaining terms over one year, primarily for aircraft parts through 2028. It reported no material legal proceedings as of quarter-end.
- Warrant and earnout liabilities are remeasured at fair value, causing potentially volatile reported income or expense. Their $39.0 million Q1 gain improved reported net loss but did not represent operating revenue or cash generated from operations.
Important facts for investors to verify
- Whether FAA certification, eVTOL operating rules, production approvals and required service authorizations remain on a path consistent with the 2025 commercial-launch target.
- Quarterly operating cash use, spending plans, and management’s liquidity assumptions relative to manufacturing, infrastructure and certification needs.
- Progress converting government contracts into recognized revenue, and whether commercial demand and aircraft unit economics support the planned vertically integrated model.
- Future financing needs and potential shareholder dilution; common shares outstanding were 705.3 million at March 31, 2024 and 708.4 million as of May 3, 2024.
- Changes in warrant and earnout fair values, which materially affect reported results; and the effects of stock-based compensation and equity awards.