Joby Aviation, Inc. — 2023 Form 10-K
Reporting period: Fiscal year ended December 31, 2023. This is an annual filing; it does not provide a clear standalone fourth-quarter income statement or cash-flow summary.
Business context
Joby is developing an electric vertical takeoff and landing aircraft and plans primarily to manufacture, own and operate aircraft as an aerial ridesharing service. It began initial U.S. Department of Defense operations in September 2023 and targets commercial passenger operations in 2025. The company had not begun commercial passenger service and remains substantially pre-revenue.
Key financial metrics
| Metric | 2023 | 2022 |
|---|---|---|
| Flight services revenue | $1.0 million | None |
| Operating expenses | $473.1 million | $392.2 million |
| Loss from operations | $472.1 million | $392.2 million |
| Net loss | $513.1 million | $258.0 million |
| Net loss per share, basic and diluted | $0.79 | $0.44 |
| Cash used in operating activities | $313.8 million | $235.9 million |
| Capital expenditures for property and equipment | $30.6 million | $54.9 million |
At year-end, cash and cash equivalents were $204.0 million and short-term investments were $828.2 million, totaling $1.032 billion. Management said these resources were expected to meet working-capital and capital needs for at least 12 months and support the planned initial commercial launch in 2025. Total assets were $1.269 billion, total liabilities $235.1 million and stockholders’ equity $1.034 billion. The filing reports no material cash requirements from current contractual obligations, but does disclose $13.0 million of unconditional purchase obligations with terms exceeding one year.
Joby reported $6.0 million of operating lease liabilities and $30.7 million of finance lease liabilities at year-end, as well as an $85,000 noncurrent tenant-improvement loan. Warrant and earnout-share liabilities totaled $158.9 million; these are fair-value liabilities, not ordinary borrowings. The filing does not report a meaningful commercial operating margin given the very small revenue base.
Changes versus 2022
- Revenue began at $1.0 million, from flight services, including DOD-related operations.
- Operating expenses rose 21% to $473.1 million, led by research and development costs, which increased 24% to $367.0 million. Selling, general and administrative expense increased 10% to $105.9 million.
- Net loss nearly doubled. Operating loss widened by $79.9 million, while total other income shifted from $134.3 million of income to a $40.8 million loss.
- The year-over-year change in other income was driven mainly by an $86.4 million fair-value loss on warrants and earnout shares in 2023, compared with a $98.0 million gain in 2022. The 2022 period also included $19.5 million of income from the SummerBio equity-method investment, which was wound down.
- Operating cash use increased by $77.9 million. Financing provided $288.2 million, principally from a $180.2 million registered direct offering and $99.9 million of shares issued to SK Telecom. Common shares outstanding rose from 622.6 million to 698.3 million during 2023.
Outlook, commentary and risks
- Management expects continuing losses and negative operating cash flows until sustainable commercial operations begin. Spending is expected to increase for engineering, certification, hiring, manufacturing scale-up, aircraft production, software, pilot training and infrastructure.
- The 2025 commercial-service target depends on FAA type certification, production approval and eVTOL operating rules. The FAA had indicated that relevant special operating regulations were not expected to be finalized until late 2024; further regulatory or certification delays could postpone launch.
- Joby had completed more than 1,000 test flights and reported over 30,000 miles flown in prototype aircraft through 2023. It delivered and flew an aircraft at Edwards Air Force Base under a DOD contract with potential value of up to $131 million through 2026. Government contracts may be modified or terminated.
- The company has not built its planned high-volume production facility. Its Dayton, Ohio manufacturing site is planned, and manufacturing scale, supplier availability, cost, staffing and production certification remain execution risks.
- Other material risks include uncertain customer adoption and willingness to pay, infrastructure and landing-site access, weather-related utilization, safety incidents, competition, reliance on partners and suppliers, and the need for future capital. Future equity financing could dilute shareholders; debt financing could impose restrictions.
- Joby recognized $93.6 million of stock-based compensation in 2023. It also reported $200.0 million of unrecognized stock-compensation cost, expected to be recognized over a weighted-average 2.6 years.
- The 2022 material weakness in internal control over financial reporting was reported as remediated in 2023. Management and the auditor concluded controls were effective at December 31, 2023; the auditor issued unqualified opinions on the financial statements and internal controls. The auditor identified revenue recognition for certain government agreements as a critical audit matter.
- Management reported no material legal proceedings at year-end. It also disclosed a CFO Rule 10b5-1 plan to sell up to 145,336 shares and a board chair plan to sell up to 4,849,900 shares, subject to stated conditions and periods.
Most important facts for investors to verify
- Progress and timing for FAA type certification, production certification and the eVTOL operating rules needed to meet the 2025 launch target.
- Cash burn, manufacturing and infrastructure spending, and whether the $1.032 billion of cash and short-term investments remains sufficient as planned costs and schedules evolve.
- Production readiness: completion and funding of the Dayton facility, supplier qualification, aircraft unit costs and ability to achieve planned production volumes.
- Terms and deliverables under the DOD contract, including the amount and timing of recognized revenue and the distinction between contract potential and guaranteed funding.
- Share dilution and potential selling pressure, including future financing needs, equity awards, warrants, earnout shares and disclosed insider trading plans.