Aurora Innovation, Inc. — Q1 2024 Form 10-Q
Reporting period: Three months ended March 31, 2024. Aurora is developing the Aurora Driver, an autonomous-driving platform intended for trucking, passenger mobility and local delivery. The filing reports no revenue for the quarter.
Financial performance
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Research and development expense | $166 million | $177 million |
| Selling, general and administrative expense | $27 million | $31 million |
| Total operating expenses / operating loss | $193 million | $208 million |
| Net loss | $165 million | $196 million |
| Basic and diluted loss per share | $0.11 | $0.17 |
| Net cash used in operating activities | $150 million | $136 million |
Revenue-based margins are not meaningful because no revenue is reported. Cash and cash equivalents were $454 million at quarter-end; short-term investments were $662 million and long-term investments were $81 million. Together these totaled $1.197 billion, excluding $17 million of restricted cash, versus $1.348 billion at December 31, 2023. Total assets were $2.089 billion, total liabilities $231 million and stockholders’ equity $1.858 billion. The filing does not report a borrowing or debt balance; liabilities include operating leases.
Cash, cash equivalents and restricted cash declined $47 million during the quarter, ending at $471 million. Investing activities provided $101 million, mainly reflecting net investment maturities; financing activities provided $2 million.
Changes and notable items
- Net loss improved by $31 million year over year. Operating expenses fell $15 million, primarily due to lower hardware development expense and personnel costs.
- Other income included a $12 million gain from changes in derivative fair value, compared with a $2 million expense in Q1 2023. Other income, net was $16 million, primarily reflecting interest income.
- Operating cash use increased $14 million year over year, primarily because of advance payments for hardware materials for fleet builds.
- Stock-based compensation was $36 million, compared with $39 million in Q1 2023.
Outlook, risks and contingencies
Management expects continued operating losses and says it may need to raise additional capital opportunistically. It believes available liquidity will meet working-capital and capital-expenditure needs for at least 12 months from the filing date. Aurora plans to launch its driverless trucking subscription service first, then expand to rides and, longer term, local delivery. It expects a partner-led, fee-per-mile Driver-as-a-Service model, with limited company-operated fleet activity during early commercialization. The filing gives no specific launch date or financial guidance.
Key risks include commercialization and safety execution, access to future financing, regulatory complexity, competition, and reliance on suppliers. Aurora identifies Continental Automotive Technologies GmbH as its planned single supplier for future-generation Aurora Driver hardware. Management cited uncertain economic and capital-market conditions; it reported no material impact from inflation or a 100-basis-point interest-rate change. No material loss contingencies were recorded, and the company said pending legal matters were not material. No material changes to previously disclosed risk factors were reported.
Important facts for investors to verify
- Whether Aurora meets its commercialization milestones and what measurable progress supports the planned trucking launch.
- How quickly the $1.197 billion in cash and investments is consumed, including fleet-build spending and operating cash use.
- Whether additional capital will be required, and the potential terms and dilution of any financing.
- Whether supplier, regulatory, safety, and partner dependencies could delay commercialization or increase costs.
- How share-based compensation and potential dilution from outstanding awards and warrants evolve.